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Fruits and Vegetables in Vietnam - International Food Policy ...

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3 Seed supply system<br />

One of the ma<strong>in</strong> avenues for deliver<strong>in</strong>g new technology to farmers is through the seed supply<br />

system. The quality of seeds <strong>and</strong> plant<strong>in</strong>g material have a large <strong>in</strong>fluence on the yields, disease<br />

resistance, <strong>and</strong> market value of the harvested output. Because they differ <strong>in</strong> many respects, we<br />

consider vegetable seed <strong>and</strong> fruit tree plant<strong>in</strong>g material separately.<br />

3.1 Vegetable seed supply<br />

Although statistics are difficult to obta<strong>in</strong>, seed specialists believe that most of the vegetable<br />

seed sold <strong>in</strong> <strong>Vietnam</strong> is imported. Accord<strong>in</strong>g to figures from the General Department of Customs,<br />

seed imports were about US$ 4.6 million <strong>in</strong> 1999 5 . Although this figure is not specifically for<br />

vegetable seed, it is likely that vegetable seed represents a large share of this figure. This is because<br />

vegetable seeds are more <strong>in</strong>ternationally-traded than other seeds, <strong>in</strong> part due to their higher value per<br />

kilogram compared to other seeds. Of the total value, about 43 percent was imported from Thail<strong>and</strong><br />

<strong>and</strong> 27 percent from Japan.<br />

The largest seed companies <strong>in</strong> <strong>Vietnam</strong> are the two state-owned enterprises affiliated with the<br />

M<strong>in</strong>istry of Agriculture <strong>and</strong> Rural Development. The National Seed Company No. 1 is responsible<br />

for provid<strong>in</strong>g seed for the north of the country. It sells ma<strong>in</strong>ly imported seed. National Seed<br />

Company No. 2, more widely known as the Southern Seed Company, is responsible for the South.<br />

This company sells hybrid maize seed, bean seed, vegetable seed, rice seed, gra<strong>in</strong> process<strong>in</strong>g<br />

equipment, <strong>and</strong> other agricultural materials. In 2000, the gross revenue of the Southern Seed<br />

Company was VND 66 billion. Hybrid maize seed is their most important product, account<strong>in</strong>g for 65<br />

percent of the total revenue. Vegetable <strong>and</strong> watermelon seed is second <strong>in</strong> importance after maize,<br />

account<strong>in</strong>g for 20 percent of the total. Vegetable seed sales have grown rapidly, ris<strong>in</strong>g from VND 2.8<br />

billion <strong>in</strong> 1996 to VND 13 billion <strong>in</strong> 2000. Currently, the company sells 30 different varieties of<br />

vegetable seed, <strong>in</strong>clud<strong>in</strong>g both imported <strong>and</strong> locally produced seed. S<strong>in</strong>ce vegetable seed offers the<br />

company the highest marg<strong>in</strong>, the goal is to <strong>in</strong>crease sales <strong>in</strong> this area 6 .<br />

The Southern Seed Company is <strong>in</strong>volved <strong>in</strong> three activities <strong>in</strong> vegetable seed: the purification<br />

<strong>and</strong> selection of open-poll<strong>in</strong>ated varieties, the importation <strong>and</strong> selection of vegetable seed, <strong>and</strong> the<br />

production of hybrid seed varieties. The company produces hybrids of watermelon, tomato, chili, <strong>and</strong><br />

bitterwort, though hybrids represent a small share of the total.<br />

5 This figure refers to imports under code 1209 described as “Seeds, fruit, <strong>and</strong> spores, of a k<strong>in</strong>d<br />

used for sow<strong>in</strong>g” <strong>in</strong> the <strong>Vietnam</strong> Customs Yearbook on Foreign Merch<strong>and</strong>ise Trade – 1999 on page 469.<br />

6 Information about the Southern Seed Company is based ma<strong>in</strong>ly on <strong>in</strong>terviews with Ngo Van<br />

Giao, Director of the company, Nguyen Van Thanh, Deputy Director, D<strong>in</strong>h Van Bich, Market<strong>in</strong>g Manager, <strong>and</strong><br />

Nguyen Hoang Tuan, Manager of the Department of Production.<br />

Chapter 8. Role of government Page 8-5

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