Producing low-emissions rice in Kien Giang, enterprises are rewarded with billions of VND

The more reduced the emissions, the bigger the reward

On February 14, in Rach Gia City, the Netherlands Development Organization SNV in collaboration with Kien Giang Department of Agriculture and Rural Development organizes a workshop to review the summer-autumn crop (crop 1) of the Project " Transforming rice value chain for climate resilient and sustainable development in the Mekong Delta (TRVC)".

The workshop aims to evaluate the results of the first crop of the TRVC Project, analyze the socio-economic and environmental efficiency at the participating sites, and share lessons learned. At the same time, experts at the workshop discuss solutions to expand the area in Kien Giang province and the project implementation plan for 2025.

The TRVC Project is funded by the Australian Embassy in Vietnam, the Netherlands Development Organization SNV, in coordination with the Ministry of Agriculture and Rural Development and the Departments of Agriculture and Rural Development of the three provinces of An Giang, Dong Thap and Kien Giang. The implementation period is from 2023 to 2027.

“The TRVC project pioneers the use of a results-based award mechanism to encourage and attract the participation of production and trading enterprises in the rice value chain, thereby promoting the large-scale application of advanced rice production technologies that bring higher economic value to smallholder farmers and all actors in the chain, improving rice quality, reducing greenhouse gas emissions and inclusive social values,” said Tran Thu Ha, Director of the TRVC Project - SNV.

In the 2024 summer-autumn crop (crop 1), eight enterprises register to participate in the three provinces implementing TRVC with a total implementation area of ​​6,165 ha. The list includes Trung An High-Tech Agriculture Joint Stock Company, Angimex - Kitoku Company Limited, A An Food Joint Stock Company, Chon Chinh Import-Export Company Limited, Vietnam Rice Company Limited - Vinarice, ThaiBinh Seed Group Joint Stock Company, Xuan Phuong Kien Giang Company Limited, and Kinh Green Natural Food Joint Stock Company.

The total reduction of 27,807 tons of CO₂ is recorded. The TRVC Project Management Board presents the enterprises with a reward of AUD 200,000, equivalent to over VND 3.18 billion. Enterprises then pay farmers participating in the rice value chain proportionally.

More sustainability for farmers

Le Van Dung, Deputy Director of the TRVC Project Management Board of Kien Giang province, said, “Of the 8 enterprises mentioned above, 6 enterprises registered to implement the TRVC Project in Kien Giang province, totaling ​​3,203 ha with the collaboration of 595 farming households. Through the implementation of sustainable rice production processes in this crop, rice fields cultivated by households in the competitive enterprise group have achieved much lower emissions rate compared to those with conventional practices”.

According to the assessment results, in the 2024 summer-autumn crop, in terms of economic efficiency, farmers achieve an average profit of 54%. In terms of environmental efficiency, the total emission reduction is 12,532 tons of CO₂ equivalent. As for social efficiency, 100% of participating enterprises practice integrating policies and implementing measures to ensure social equity in the chain links.

Considering the results achieved in the first crop, by the 2024-2025 winter-spring crop (crop 2), the area registered to participate in the TRVC Project in Kien Giang has increased three times, reaching approximately 10,940 ha. This is a positive sign, reflecting the potential for model expansion and the effectiveness of the project.

The TRVC Project Management Board of Kien Giang province’s target for the whole year 2025 is to have a minimum area of ​​13,000 ha participating in the project. In cooperatives with production linkage to participating enterprises, the rate of households applying sustainable and low-emissions rice cultivation processes should exceed 80%.

According to Project Director Tran Thu Ha, the project aims to promote the transition to climate-resilient and low-carbon rice farming methods through the development of a sustainable rice value chain.

The project will improve the livelihoods of smallholder rice farmers in the upper Mekong Delta, reduce greenhouse gas emissions from rice production, improve rice value chain linkages, support the development of low-carbon rice brands, and the completion of a policy framework to promote low-carbon rice production.