UNNExT workshop on Paperless trade facilitation for Small and Medium-sized Enterprises

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1 UNNExT workshop on Paperless trade facilitation for Small and Medium-sized Enterprises 2-4 February 2015 United Nations Conference Center (UNCC) Bangkok, Thailand

2 TRACEVERIFIED E-traceable Fishery and Aquaculture Products in Vietnam Ly Hoang Hai MD, Electronic Traceability Project, Vietnam

3 Agenda 1. Why tracing? 2. How TraceVerified facilitates participation of Vietnamese exporter SMEs in global value chain 3. Key functions of TraceVerified application 4. Innovative traits of TraceVerified 5. Benefits of Electronic traceability 6. Success factors and lessons learned from TraceVerified project 7. Replicability of TraceVerified

4 Why tracing? Why should Vietnamese fishery exporters care about TraceVerified? Vietnam is one of important countries of export agriculture and fisheries in the world: Cashew, pepper #1; rice &coffee #2; seafood #5, tea #7. Shrimp and catfish are high proportion of total seafood exports of Vietnam. Vietnamese food products put in place regulations requiring traceability information for the shipment of imported products: Regulation No. 178/2002 and No. 1005/2008 of EC. Vietnam regulations: Circular 03/2011/TT-BNN & PTNT and Circular 74/2011/TT BNN & PTNT. Many independent organizations like GAP, ASC, BAP also require traceability. Vietnamese fishery exporters are using paper-based tracing documents. Large number of paper records, huge storage. Take time in finding the records. Risk in information management.

5 How TraceVerified facilitates participation of Vietnamese exporter SMEs in global value chain TraceVerified: initiated by Sac Ky Hai Dang, Funded from the GCF - Danish Government s Organization. Develop an paper less, implement a low-cost, user-friendly app for the various aquaculture supply chains in Vietnam. Ensure end-product quality, hygiene and other requirements by buyers, importers, import countries regulatory bodies and consumer associations. TraceVerified collect and transports verified information from food producers to food buyers. TraceVerified assists food producers by verifying the information and creating thereby a trust centre between sellers and buyers

6 Key functions of TraceVerified application 100% Vietnamese developed, low-cost IT system Works on common platforms and devices, not require significant investment in new hardware or devices. System requirements: Web-based Windows XP, Windows Vista and Windows 7. GS1 is used as base code for larger TraceVerified users Handheld, low-cost QR code scanners are used and end-users only need to have minimal user training. Sample TraceVerified stamp To the right: GS1 Code; upper line: T Code (optional); center: QR code

7 How does TraceVerified work?

8 TraceVerified s product Traceability Report

9 Innovative traits of TraceVerified Low cost. Minimum investment in hardware and software needed Works on smartphone in order to encourage more Includes Excel forms with pre-built formula Easy to use by small scale farmers, with minimal instructions and training.

10 Benefits of Electronic traceability To food exporters: Meet traceability requirements as required by the EU, US, Canada, Japan. Ensure the ability to strore and trace information of shipments by electronic tool. Help company to perform recovery and removal unsafe/substandard units quickly and accurately. Monitor and control the rapid flow of information in the production chain. Information management closes the production, reduce costs time and eliminating errors in the recording paper. To authorities/gorvernment: Manage the quality of the goods on the market by getting information easily and quickly. Can check detailed information on every shipment, help to verify the information and documents to be quick and convenient. Reduce paperwork management.

11 Success factors and lessons learned from TraceVerified project Success factors : Partnering closely with key customers in the aquaculture value chain, getting their support to implement TraceVerified along their value chain. Successfully implementing new ideas to the aquaculture and SME exporters in Vietnam. Broadening network, work with FAO and other oganizations. Lesson learned: Most of agriculture and fisheries export products are raw/crude products => the demand for traceability is not urgent. Food exporters not ready to provide transparent information unless they have the pressure from customers, importers or authorities. Awareness of food manufacturers in Vietnam about traceability and paperless are limited

12 Replicability of TraceVerified to other supply chains in Vietnam and beyond Expand service to other fisheries and agro-products supply chains, Advocate national policies for more comprehensive, enforceable traceability and quality assurance policies. Looking for new funding support: Improve the TraceVerified application Bring the system to more disadvantaged small farmers in remote areas. Working with policy makers to popularize electronic traceability system to all food supply chains in Vietnam.