Practical policy paves the way for a billion-dollar industry

Removing bottlenecks from the grassroots level

Dak Lak is one of Viet Nam's largest agricultural producers, with major export-oriented commodities including coffee, durian, and other fruit crops. However, the province's production structure, characterized by many small and medium-sized farms, intercropping systems, and cooperative-based production, has highlighted the need for a more flexible regulatory approach, particularly in the issuance of growing area codes.

According to Dang Thi Thuy, Deputy Director of the Dak Lak Department of Agriculture and Environment, shortcomings in the growing area code system have prevented many farmers and cooperatives from participating more deeply in export value chains.

The issue was among the province's key recommendations to the Ministry of Agriculture and Environment delegation during a working visit led by Deputy Minister Nguyen Hoang Hiep to Dak Lak in early July. Based on local production realities, the province called for a more flexible approach that would maintain traceability and regulatory oversight while making it easier for farmers and businesses to participate in agricultural value chains.

"The issuance of Resolution No. 36/2026/NQ-CP, which simplifies administrative procedures related to growing area codes and packing facility codes, is a very positive signal. It reflects practical support for grassroots production. The concerns raised by local authorities have been heard by the central government, leading to solutions that are more consistent with real production conditions," Thuy says.

One of the most significant changes is the suspension of the previous requirement that growing areas must cover at least 10 hectares. Given Dak Lak's production structure, this opens new opportunities for small and medium-sized farmers to join certified production zones through farmer groups, cooperatives, or partnerships with agribusinesses.

Expanding access to growing area codes will not only simplify administrative procedures for producers. As more farmland is brought into the official management system, businesses will gain access to larger and more reliable raw material supplies, while local authorities will be better equipped to oversee production areas.

Simplifying procedures but tightening post-audits

According to Thuy, another promising feature of Resolution No. 36 is its streamlined administrative approach, which emphasizes digital technology and shifts toward a "self-declaration with post-audit" mechanism.

Particularly in the case of Dak Lak, where many production areas are located far from administrative centers, this represents a meaningful improvement. Simplified documentation, decentralized processing at commune-level People's Committees, and online submission through the National Public Service Portal will significantly reduce compliance costs and save time for both farmers and businesses.

"The clearer and more convenient the procedures are, the easier they will be for people to access. At the same time, transparency of data and rigorous post-audits are compulsory," Thuy says.

Digitalization should go beyond replacing paper documents with electronic files. Its greater value lies in building a unified database of growing areas that can be updated, verified, and traced whenever necessary. Such a database will strengthen local management of production zones while enabling businesses to better plan procurement, processing, and exports.

For highly seasonal products such as durian and fresh fruit, shortening administrative processing times is crucial. Faster approval of growing area codes allows products to enter supply chains more quickly, reducing the risk of missing harvest windows and export opportunities.

One thing to note is that simplifying procedures does not mean lowering standards. Under the new self-declaration and post-audit mechanism, farmers, cooperatives, businesses, and government agencies all bear greater responsibility. Growing area codes must correspond to actual production areas that comply with regulations, maintain traceability, and satisfy importing countries' requirements.

From a regulatory perspective, Thuy believes Resolution No. 36 provides an opportunity for Dak Lak to reorganize its production zones more systematically. Farmers will have greater opportunities to join value chains, cooperatives can expand partnerships more easily, businesses will gain more reliable supplies, and authorities will have stronger digital tools for monitoring and data transparency.

"We hope this new policy will be implemented soon so that the central government's attention and responsiveness translate into tangible improvements at the local level. When procedures become more convenient while data integrity and product quality remain well controlled, Dak Lak's agricultural products will be better positioned to increase their value and expand further into export markets," she says.