FFPO business incubation: Experiences and lesson learn in Vietnam By Vu Le Y Voan VNFU-ICD Deputy director, FFF facilitator

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1 Regional conference on Forest and Farm Producer Organizations (FFPOs) From users to producers: Scaling up FFPOs businesses to implement Sustainable Development Goals (SDGs) in climate resilient landscapes FFPO business incubation: Experiences and lesson learn in Vietnam By Vu Le Y Voan VNFU-ICD Deputy director, FFF facilitator Thingaha Hotel, Nay Pyi Taw, Myanmar, Monday 20 to Wednesday 22 November, 2017

2 PRESENTATION CONTENTS Short information about FFF in Vietnam Lesson learnt Challenges Recommendations for scaling up FFPO businesses to implement SDGs in Vietnam An example case on timber production

3 FFF Areas in Viet Nam Bac Kan THAI NGUYEN Yen Bai PHU THO Yên Bái province: Phú Thịnh commune, Yên Binh dist, Dào Thịnh commune, Trấn Yên dist Bắc Kạn province: Chu Hương commune, Ba Bể dist, Mỹ Phương commune, Ba Bể dist 2017 expending: Thái Nguyên province: Yên Đổ commune, Phú Lương dist, Tân Khánh commune, Phú Bình dist Phú Thọ province: Quế Lâm commune, Đoan Hùng dist, Chân Mộng commune, Đoan Hùng dist

4 BY THE END OF 2017, 14 FFPOs ESTABLISHED and SUPPORTED BY FFF VIETNAM 7 Timber FFPOs 03 non-timber FFPOs: cinnamon, star anise 04 FFPOs: Raising chicken under forests, pomelo, herb, honey, tea 5 among 14 FFPOs have processing workshops and sell directly to enterprises -Number of households: 295, total members of FFPOs is 658 forest farmers (298 female, 360 male) - More than 2000 beneficiaries from FFF implementation

5 Lessons learnt No trust, no cooperation = No FFPOs/no business incubation Production without processing and business = not stable The important role of FU at local levels in actively coordinating and linkage: Farmer/FFPOs, interprises/private sectors, scientists, authorities/agencies Support of FU at different levels, relevant agencies, service providers and local authorities affect greatly to the success of the program and the development of the FFPOs. Appropriated approaches (value chain, participatory, selfgovernance and reliance, sustainable, etc.)

6 Challenges Business and processing of FFPOs are still in the beginning stage, their management capacity, technology and market power is not strong enough Trust and Capacity Building in/for FFPO takes time Limited capacity of FU and service providers at local levels to support FFPOs (market information, facilitation skills, communication, policy advocacy skills, certification, etc) Poor infrastructure in remote forested areas leading to high transportation cost Access to credit for long-term investment in forestry is limited

7 Recommendations for scaling up FFPO businesses to implement SDGs in Vietnam Strengthen existing FFPOs and develop new FFPOs for effective linkages/networking Support FFPOs to understand and implement sustainable forest management, forest certificate, VietGap. Building trade-mark: cinnamon, star anise, chicken, tea etc. Diversify products/crops in the forest and forest landscape: growing big trees, combine agro-forestry Promoting processing for more value added and value chain linkages with private sector Capacity building for FU staff for better services provision to members

8 FFF helped household groups to apply FSC and link Binh Minh coop with enterprise - Capacity building for FFPOs - MA&D trainings - Exchange visit to FSC model in Quang tri province - Training and established 31 household groups and 494 households in 5 communes apply FSC - Working with Forestry Department and discussed with LAFOCO company for cooperation mechanism - GFA evuluated and issued FSC for 1737,5 ha - With support of FFF, Lem collective group was established in 2015, 2016, Lam collectibve group started timber processing (sawmill) - In 2017, Lem collective group developed Binh Minh Cooperative and built a sawmill with CoC certificate and consume all FSC timber in the district and supply FSC timber to the companies - Coop creates regular job for 15 members and increase 10-15% of income from FSC timber However, how to maintain FSC certification, expanding FSC areas and sustain busines of coop is a big question need tobe responded

9 FSC and CoC FSC: Forest Stewardship Council CoC: Chain of custody certification

10 THANK YOU