Agricultural linkages need a new boost

After more than six years of implementing Decree No. 98/2018/ND-CP, numerous linkage models connecting farmers, cooperatives, and enterprises have been established, helping to stabilize market outlets, improve agricultural product quality, and increase value across commodity sectors.

However, amid new market requirements and ongoing transitions toward green and digital development, the current linkage model has revealed several limitations.

This is also why the Ministry of Agriculture and Environment organized a consultation workshop on the draft decree on sustainable agricultural value chain development on June 5 in Hanoi. The proposed decree is intended to replace Decree 98 and establish a new policy framework better aligned with current realities.

Shifting from production support to value chain development

In his opening remarks, Deputy Minister of Agriculture and Environment Vo Van Hung emphasized that Viet Nam’s agriculture is entering a new stage of development with increasing demands for growth quality, efficiency, competitiveness and sustainability.

According to him, today's markets not only require products to meet quality standards but also demand traceability, supply chain transparency, emission reductions and compliance with green standards.

Deputy Minister Vo Van Hung noted that in this context, competition is no longer a matter for individual farmers or enterprises alone. Instead, it is competition among entire value chains, encompassing raw material production areas, processing, logistics, marketing and brand development.

“Developing agricultural value chain linkages is no longer merely an option but an essential requirement for achieving the goals of ecological agriculture, modern rural areas and prosperous farmers, while also realizing the shift from an agricultural production mindset to an agricultural economy mindset,” Deputy Minister Vo Van Hung stressed.

According to the Deputy Minister, although Decree 98 established an initial legal framework for cooperation and linkages in agricultural production and marketing, many linkage models remain unsustainable, small-scale, and vulnerable to contract breaches. In addition, the capacity of many cooperatives is still limited, while enterprises investing in agriculture continue to face significant risks.

Removing bottlenecks for sustainable value chain development

Providing further insight into the direction of the new policy, Le Duc Thinh, Director General of the Department of Cooperatives and Rural Development, said: “Agricultural value chains are the foundation for enhancing the competitiveness of agricultural products. A modern agricultural sector cannot be built on fragmented production but must be driven by modern value chains.”

According to Mr. Thinh, the draft decree introduces four major policy innovation groups. The first is expanding the policy approach from product trading to include raw material areas, value chain governance, processing, logistics, traceability, digital transformation and emission reduction.

The draft also introduces important policy groups designed to support the value chain ecosystem, including advisory services for linkage development; investment in infrastructure, machinery and logistics; production and market development; science and technology, digital and green transformation; as well as financial support and risk management mechanisms.

Another notable innovation is the strengthening of administrative reform and decentralization to local authorities. The draft aims to simplify procedures, grant greater autonomy over resources, promote the use of electronic documentation and expand the mobilization of resources for agricultural value chain development.

From the perspective of an exporting enterprise, Ta Thi Thu Hien, Director of Hong Ha Import-Export Co., Ltd. in Hanoi, said that product quality and traceability are becoming decisive factors for helping Vietnamese agricultural products gain access to demanding international markets.

Sharing similar concerns about the sustainability of value chain linkages, Le Van Viet, Chairman of the Board of Directors of Xuyen Viet Cooperative, said that the draft decree should include appropriate support mechanisms for integrated linkage models, where cooperatives or enterprises take the lead across the entire chain, from seed supply and production to processing, marketing, and export.

Several localities also called for greater clarity on the financial resources needed to implement the decree. A representative of the Department of Agriculture and Environment of Tuyen Quang Province suggested that the draft should clearly specify funding sources, including local government budgets, national target programs, and other lawful funding sources. Such provisions would provide a legal basis for local authorities to allocate budgets and organize implementation more effectively.

The comments and recommendations raised at the workshop reflected strong expectations for a new decree that would not only replace Decree 98 from a technical standpoint, but also create an institutional breakthrough capable of fostering modern agricultural value chains with stronger competitiveness and greater capacity to adapt to green development requirements in the years ahead.