To gear up for the TPP, farmers in central provinces are uniting to form co-operatives and work together in larger-scaled farms, hoping to create more competitive advantages for their agricultural products.
The Nhon Phuoc mushroom farm co-operative in Hoa Vang District in the central city of Danang was established a few weeks ago. Danang’s authorities invested in the steaming and plastic irrigation systems at this farming facility. Farmers in the co-operative are also trained to ensure food safety, in order to meet international standards.
"Mushroom production used to be pretty ad-hoc, now we need to apply technology and methodical processes to compete in a challenging market once the TPP takes effect. We believe that vocational training courses and facilities upgrades will help mushroom farmers succeed with their products", said Nguyen Van Nhi, Director, Nhon Phuoc Mushroom Co-operative, Hoa Vang Dist., Da Nang City.
If the TPP takes effect, tariff reductions will see higher quality, more competitive agricultural products sweep into the country. Faced with this imminent situation, farmers in the central region have looked at developing new product chains and input sources to guarantee affordable prices.
"Companies need to plan their investments carefully in the integration. Food safety must be the highest priority for manufacturers as well as waste water treatment process. VietGAP should also be included when managing the quality of our products", said Le Van Thiet, Director, Thuong Thao Corp., Binh Dinh Prov.
The TPP may create opportunities but will also pose difficulties for agricultural manufacturers in Vietnam. The current reform models applied by farmers in the central region could prove to be effective as country faces a new wave of integration and free trade agreements.