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Vietnam Clue Agro market: Having both feet on the ground …

Clue markets have been imposingly built but its operations seemed to be a “B Danh pagoda”. This allegory used to say about Thanh Binh rice clue market (Dong Thap province) and National Fruit Centre (Cai Be district, Tien Giang).” This is because although it’s called clue market but neither sellers nor buyers want to come. Thanh Binh rice clue market is only a rice warehouse. By contrary, other one, this is the time Thu Duc foodstuff – argi-products clue market entering on the phase II with encouraging results. In the period of 2004 - 2006, imported good volume in the market has been increasing. In 2004, it reaches 1,331 tons/day, increasing to 1,543 tons/day in 2005 and 1,944 tons/day in 2006. The sucess or failure of a clue markets depent on many factors, and suitable level with characteristics of the commodity chains and the role of market management board are among them.

In 2006, Dr. Duong Ngoc Thi ( Institute of Policy and Strategy for Agriculture and Rural Development ) has researched on assessing forms of trade transactions of agricultural products in Vietnam ,over 4 commodities of rice, coffee, fruit and sugarcane in 5 provinces of Tien Giang, Can Tho, Hau Giang, Dac Lac, Bac Giang, Ha Noi and HCM city.

The researched result has shown that the most popular form of trade transaction for agri-products are freely wholesale due to the habit and traditional purchasing customs of peoples particularly, rice trade mostly occurred between farmers and dealers, dealers and processing mills. Not many farmers directly exchanged with small rice processing mills. In case of rice, clue market doesn’t play as important place to stimulate trade transaction of this commodity chain. Contractual transactions by signing documentations between enterprises and particular households as well as with cooperatives, farmers groups, in fact arising many constraints due to small and fragmented production scale of households, enterprises have not paid attention to investing and technically instruction for farmers to help them gain higher productivity and quality.

Buying&selling transactions in clue markets merely is one of all 4 forms of trade transactions for agri-products. Clue market of farm produce initially formed, transaction activities only circle the wholesale among domestic enterprises and businessmen, mostly SPOT transaction, lacking of secondary transaction and FORWARD transactions. Market management board (market managing companies) have not participated actively in the transaction, only implementing some services such as for renting space, loading , security protection.

Developing Clue market in Government policy

February 2007, Prime Minister of Vietnam government has just approved of the project on the domestic trade development of up to 2010 and the orientation to 2020. Accordingly, one of the important activities for agricultural, forestry, horticultural sectors is the attention to building types of the welfare of the people market ( aggregate retail, on- the- spot production and life service of farmers, clue market, wholesale flows - specialized market, auction hub, transaction floor in concentrated farm produce production areas ( consumption of agricultural products through wholesale for sale for other markets, processing industry and export ) , wholesale warehouses , logistics centers ( targeting at preservation, first processing , classification, packaging, transportation ..) will increase the products value and supply domestic wholesale and retail network and export.

In his research reports, Dr. Duong Ngoc Thi has put forward the solutions to the development of buying - selling transaction activities of the clue markets in the whole country. It is necessary to generalize the current models including businesspeople taking on goods wholesale and transaction activities, market business companies upgrading service activities ( based on the clue market experiences of Thailand ), absorbing experiences from Australia, Japan, China, where market managing companies takes part in transaction and service activities and apply this models to Vietnam. It is accepted that the clue market is a type of market which are needed to develop in Vietnam, authors groups proposed the comprehensive planning solutions, policies on encouraging investment for market building, participating business activities, coordinating many activities at market and centre, boosting the role of the state for public service activities, selecting and training transaction experts.

Hoang Ngan (www.agro.gov.vn)
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