In the first section of the text, the author derives a link with the assigned project of proposing Vietnam to join the regional cooperation of borderless trade of food crops in South Asi
COMPANY BACKGROUND
K EY F ACTS
Table 1: CIP at a Nutshell - Factual Data
Name of the institution International Potato Center
Vision “A healthy inclusive and resilient world through root and tuber systems.”
Mission “CIP delivers innovative science-based solutions to enhance to affordable nutritious food, foster inclusive sustainable business and employment growth, and drive climate resilience of root and tuber agri-food systems.”
Director General Dr Barbara H Wells
Regional Director (Asia) Dr Samrendu Mohanty
Branch (Asia) Agricultural Genetics Institute, Hanoi, VN
Scope of Business Research and Development
Contact Details Website: www.cipotato.org
Tel.no: +84 2 829 0537 Email: tnguyen@cip.org Contact person: Thi Tinh Nguyen
A FFILIATIONS AND P ARTNERSHIPS
CIP engages in multitudes of research projects directed by CGIAR by collaborating with its network of 15 research centers and other external stakeholders across the globe CIP’s own flagship project concerns the production of roots and tubers like potatoes and sweet potatoes for bolstering the nutrition and incomes of farmers and other marginalized communities in developing countries Four of its main partnerships in this project are as follows:
• International Center for Tropical Agriculture (CIAT)
• Center for International Cooperation in Agricultural Research for Development (CIRAD)
• International Institute of Tropical Agriculture (IITA) 5
The next significant research project of CIP greatly addresses the issues of ‘Climate Change, Agriculture, and Food Security’ (CCAFS) and counts on producing sustainable solutions that can be implemented at a local level; thereby improving the lives of the farmers It is collaboration between CIP and all of CGIAR’s 15 research centers, which is essentially being carried out with support from its donors A project of this magnitude has CIP conducting groundbreaking research through its network of 15 research centers across key functions, while hundreds of strategic partnerships are formed at national, sub national, regional and global levels to ensure the implementation of solutions at a large scale Currently, there are 15 CGIAR Research Centers, 13 Non-CGIAR Research Centers, 17 Intergovernmental Development & Policy Partners and 6 Non-governmental Development Partners involved in the project See Figure 1 In the same vein, CIP also enjoys the support of countries that have similar environmental priorities and support the mission of CIP on a large nation-wide scale in the form of receiving funds Some of the countries that continue to be donors and show interest in the CIP’s research projects by raising huge funds and initiating large-scale environmental initiatives are Peru, India, United Kingdom, South Korea, Austria, Australia, Germany, and Ireland 6 All of these countries promote national environmental programs and have made apt changes at the policymaking level
5 CCAFS, 2017 Annual Reporting for 2017 [Online] (Updated 15 July 2017) Available at: https://bit.ly/2lKgXms [Accessed 30 July 2019, 11:35am]
6 Dudenhoefer, D., 2017 Annual Report 2017: Harnessing Potato and Sweet Potato’s Power In: South and Southeast Asia Seed Policy Workshop on Protocol of Discussions, June 9-10, 2017, Siem Reap, Cambodia
Thư viện ĐH Thăng Long
Figure 1: Global Partners of CIP in CCAFS Program
P RODUCTS & S ERVICES
CIP is essentially a globally recognized research organization for its scientific and technological expertise in the agricultural industry Its main products are producing climate resilient potato and sweet potato seeds that can grow in extreme conditions After amassing a database of best standard practices, CIP aims to provide an assortment of sustainable solutions to clients that can be scalable and has a wider scope of engagement and implementation at a local level, especially in developing nations Additionally, CIP also offers contract research services to clients who may want to outsource their research to obtain optimum results 7 Accordingly, it has divided its services into five main categories:
• Contract Research and Project Management
• CIP Science Park- Business Space Solutions
7 Dudenhoefer, D., 2018 Services for Business [Online] (Updated 8 March 2018) Available at: https://bit.ly/2m0mtBD [Accessed 30 July 2019, 11:35am]
T ARGET C USTOMERS
• Farmers: CIP’s main customers have always been farmers The organization aligns with its vision to achieve food security and improve incomes and nutrition of marginalized people in developing nations CIP holds capacity building sessions for farmers to enhance their capacities in farming and producing nutritious food faster than any crop Along with that they also train the farmers with the best practices of farming and provide them with the latest seeds
• Private Companies: This includes seed companies like Syngenta, and transnational companies like Pepsi For instance, in India, four multinational companies- Coca Cola, GlaxoSmithKline, Nestle and Cadbury have agreed to conduct product development with research partnerships at CIP to develop hybrid crops In the same vein, involving foreign seed companies as seed providers will bolster the development of the seed sector in developing nations
• Non-CGIAR Research Centers: This includes Agricultural departments of leading universities such as Columbia University, University of Copenhagen, and Wageningen University and Research
• Intergovernmental Development and Policy Centers: This includes institutes like World Bank and Food and Agricultural Organization (FAO) and NASA.
R ECENT F INANCIAL F IGURES
Most of the research programs embarked upon by CIP are through the umbrella channel of CGIAR initiatives and CIP being one of 15 CGIAR research center naturally gets it funding from CGIAR research programs Apart from in-house funding, CIP also manages to raise funds from its partner-countries and from private sector institutions In 2018, the total revenues recorded were $65 million USD Similarly, the expenses reported were $64.1 million USD, while reflecting an excess of USD 0.9 million in 2018 As a matter of fact, CIP’s revenue increased by USD 1.4 million when compared to its earnings in 2017 One of the key reasons behind this growth could be the contribution from its donors and investors The success of bilateral funding also must have added to the revenue growth See Figure 2 CIP’s financial health seems to be in
Thư viện ĐH Thăng Long
7 good health and they have a good credit score, as they didn't even need to use any overdraft facility in 2018 8
Figure 2: Basic Financial Figures of CIP from 2015 – 2018
C URRENT P ROJECT IN A SIA
CIP’s main flagship project is Asia is the “Seed Without Border” Initiative This project aims to facilitate farmers of countries sharing similar agro-climatic zones into farming with high quality seeds; thereby, improving the income and nutrition of the minorities The concept behind the project is to get the neighboring governments of similar climatic zones to agree to be part of a policy that allows the movement of seeds across borders without imposing any tariffs and taxes
The success of this initiative and partnership between the countries shall enable the farmers to improve their livelihoods, as they will not need to undergo the lengthy trial and evaluation process of the food crops that takes 10 years to harvest and produce the results Seeds successful in India can be easily allowed to grow in Bangladesh and vice versa This policy has already been activated and proven successful in South Asian countries like India, Bangladesh and Nepal The next step is to propose the project to the Ministry of Agriculture and Rural Development (MARD), Vietnam and suggest it to be part of this strategic partnership with its neighbors 9
8 Dudenhoefer, D., 2018 Annual Report 2018: Towards food system transformation [Online] (Updated 6 August 2019) Available at: https://hdl.handle.net/10568/103463 [Accessed 6 September 2019, 1:15 am]
9 Morell, M., 2017 Siem Reap Protocol of Discussions In: South and Southeast Asia Seed Policy Workshop on Seed Without Border Agreement, June 9-10, 2017, Siem Reap, Cambodia.
COMPANY STRUCTURE AND ORGANIZATION
CIP’ S S TRUCTURAL P OSITION IN THE CGIAR E COSYSTEM
In the agriculture industry, CGIAR is the most prominent public-funded international agency It was conceived by a group of organizations informally that shared recognized the vulnerabilities of Climate Change and food scarcity The participants included developing countries, co- sponsors, scientists, and representatives from non-donor developing nations While Food & Agricultural Organization (FAO), UNDP and World Bank are organic co-sponsors, some of the donors include countries, international and regional organizations CGIAR is advised by the Technical Advisory Committee (TCA) whose Chairperson and secretariat are chosen by the co- sponsors like the World Bank in Washington D.C 11 It is one of the major components when it comes to filling gaps in international agricultural research and strengthening national programmes of developing nations
GGIAR has an assortment of 15 research centers that has a specific mandate and aims to solve a particular global issue respectively All the 15 research centers are located in various developing
10 Sawyer, R.L., 1972 Food and Agriculture Organization of the United Nations In: Technical Advisory Committee
Third Meeting on International Potato Center, April 10-13, 1972, Rome, Italy
11 Asopa, V.N., 1997 Management of agricultural research: A trial manual 1 st ed., FAO
Thư viện ĐH Thăng Long
9 nations and are funded via CGIAR CIP is one the 15 CGIAR research centers, and it has an umbilical cord relationship with CGIAR CIP focuses its international and regional research on potatoes and sweet potatoes while also collaborating with other research centers in programs that requires multi-disciplinary effort Figure 3 below clearly depicts the structural position of CIP in the CGIAR ecosystem and various international agricultural research centers under it
Figure 3: CIP’s Structural Position in the CGIAR Ecosystem
O RGANIZATIONAL S TRUCTURE OF CIP
CIP is an international research center of CGIAR Its mission is to address the pressing issues of food shortage, while researching on potatoes and sweet potatoes In order to implement its mission, CIP receives an adequate amount of resources and scientists Following the policy of CGIAR, it incorporates an effective project management system through interdisciplinary teamwork and a robust client network Some of CIP’s features as a CGIAR research center are as follows:
• Located in an ecological zone appropriate to its mandate of focus on potatoes (present in 27 developing countries across 3 continents)
Figure 4: Organizational Structure of CIP
Legally in host countries (in this case, Hanoi, Vietnam), CIP has an autonomous status, similar to qasi-diplomatic status CIP has a Director-General (DG) – Ms Barbara Wells as the head of the center, while the board of trustees act as the highest governing body The board of trustees consists of people representing developing nations, CGIAR sponsors, and members of host countries The board elects the Director General and also supports the appointment of the DG as the member of the board of trustees Each member has an appointment for 2-3 years and that
Thư viện ĐH Thăng Long
11 suggests the continuous replacement of the board 12 Director General’s responsibilities are divided into two major parts: Management and Scientific Research There is a third peripheral part in the form of External Relations that also falls under the responsibilities of the DG Most of the primary activities of External Relations include public relations and communications with the media The center’s organization is very similar to a process-based structure to maintain an independent end-to-end flow of different operational processes It has a clear chain of command from top to bottom as well as a cross-section of supportive services that bridges the Management division and Scientific Research division The DG appoints a Deputy Director General (DDG) for each major bloc See Figure 4
There are three main regional offices of CIP across three continents: Latin America (Headquarters), Sub-Saharan Africa, and Asia Each region has a Regional Director (RD) that manages the affairs of the Center in the host country In this case, Asia Regional director is Mr Samrendu Mohanty A Regional Director acts as the bridge that connects the Management and Scientific Division as it directly reports to the DDG of Management and DDG of Scientific Research simultaneously Thus, in order to eliminate the potential barriers between two different divisions, the position of a Regional Director needs to be dynamic with the following characteristics:
• A leading scientist with management experience at a research center
• A diplomat in host developing countries with local language prowess
• Entrepreneurship with fundraising experience with the support of donors
Under the umbrella of Management, the DDG is managing over six sub-divisions that consist of Human Resource, Finance, Grants & Contracts, Information & Technology, Administration and Business Development under the leadership of the Regional Director The Head of each sub- division directly reports to the Regional Director and are relatively independent of each sub- division CIP in Hanoi, however, doesn't have a fully operating Grants & Contracts sub-division Similarly, under the umbrella of Scientific Research division, there are five sub-divisions that include Genetic Resources Global Science, Genetics and Crop Improvement, Genomics,
12 Asopa, V.N., 1997 Management of agricultural research: A trial manual 1 st ed., FAO.
Integrated Crop and Systems Research and Social and Health Sciences Each sub-division has a Scientific Leader that reports to the Regional Director directly The Regional Director approves the research programs and scientific tests that are identified and proposed by the Scientific Leader The Regional Director, in turn, gets the approval from the DDG of Scientific Research after conducting an in-house discussion and workshops with the board of trustees and DG who eventually green lights the research program Only then, the scientific leader can execute the research program.
I NTERN ’ S P OSITION
Figure 5: Intern’s organizational fit at CIP
The position of my internship opened in the Business Development sub-division of the Management division in the host country of Hanoi, Vietnam See Figure 5 The Business
Development dub-division comprised of two small taskforce consisting of two members respectively Each taskforce had an independent project and one member of each taskforce acted
Thư viện ĐH Thăng Long
13 as the communication channel to the Head of business Development that included weekly and monthly written and oral updates In Hanoi, the Head of Business Development was Ms Sampriti Baruah My role as a member of one of the taskforce also included being the communication channel reporting to Ms Baruah about the progress of the report on a weekly and monthly basis Additionally, every month, there was a review meeting with the Regional Director of Asia regarding the development of the project The research based project that I was working on concentrated on Climate Change, Agriculture and Food Security (CCAFS) As a result, it demanded the participation of all the 15 CGIAR Centers and every CGIAR center had a stake in the project The nature of the project required a lot of secondary research to do a preliminary background analysis Additionally, it also required me to construct survey questions for primary marketing research, focus group meetings and due diligence As a result, I conducted several field trips and end-to end interviews with officials from non-CGIAR institutions like Syngenta and top leadership officials from governmental institutions like the Ministry of Agricultural and Rural Development (MARD) as well See Figure 6 Findings and observations from the meetings helped in filling the initial gaps to ask the right questions
Figure 6: Intern’s interaction with other stakeholders
THE MISSION - ASSIGNED TASKS AND GOALS
T ASKS A SSIGNED
The project that I was working on was a research based development project that focused on Climate Change, Agriculture and Food Security (CCAFS) CCAFS main aim was to secure the regional cooperation of all nations in the seed sector to form a borderless trade agreement that led to a decline in food shortage In the Hanoi Country office of CIP, CCAFS main focus of the project was on the regional cooperation of Vietnam in the ‘Seed Without Border’ Initiative
As Business Analyst, I part of the two-membered taskforce that was specifically assigned to work on the benefits of borderless trade of food crops, climate-smart agricultural practices and services across South Asia Some of the primary tasks involved skills like secondary research, preparing survey questions, conducting interviews of stakeholders, and data analysis The tasks performed are as follows:
• Review, reflect & discuss the seed releasing policies of India, Bangladesh and Nepal
• Compare the benefits of 'Seeds without Borders' initiative in the regions of Bangladesh, India & Nepal for benchmarking purposes
• Assist the Team on fieldwork and due diligence, and find the process of varietal seed release process in India, Nepal and Bangladesh and its developments in the process
• Conduct phone interviews with Program officers from IRRI and major seed companies to collect historic data and record the benefits and challenges of best climate-smart agricultural practices in South Asian countries
• Review the domestic and international laws of India and Bangladesh contracts, MOUs, proposals to benchmark it for Vietnam.
L INKS B ETWEEN THE S UBJECT M ATTER AND THE M ISSION
The aim of CCAFS is to form a worldwide borderless trade agreement that achieves food security Many countries in Africa, Europe and South Asia are already a part of the ‘Seed
Without Border’ initiative The attractiveness of the initiative is the easy availability of quality seeds among farmers of developing and developed nations that share similar agro-climatic conditions during Climate Change This agreement will curtail the otherwise lengthy trial and
Thư viện ĐH Thăng Long
15 evaluation process from 10 to 2 years, considering the sample seeds are already tested and approved for commercial use in the neighboring host countries that share similar climatic conditions; thus, strengthening the cause for food security and increasing opportunities for better opportunities for marginalized communities CCAFS’s mission is to get Vietnam to be a part of this initiative with the aid of CIP In 2017, Southeast Asian countries like Bhutan, Cambodia, Sri Lanka, and Myanmar decided to be part of this agreement but Vietnam decided to stay out of this agreement So, CIP decided to circle back and approach the MARD with a new proposal suggesting the government to be part of the agreement
I was in a two-membered taskforce supervised by the Head of Business Development who divided the mission into a two components:
• The benefits of borderless trade of food crops, climate-smart agricultural practices and services across South Asia
• The impact and implication of Vietnam entering the ‘Seed Without Border’ initiative and facilitating the borderless trade of seeds
I was responsible for the first component In light of the mission, my responsibilities were to highlight the success stories and progress of other countries, especially in South Asia (India, Bangladesh and Nepal) with regard to harmonization of seeds owing to their commitment since joining Seed Without Border Imitative My findings out would later assimilate with the second component as evidences and as recommendations to benchmark the best practices while drafting the proposal to MARD.
G OALS TO R EACH
One of the main goals during my internship was to understand the significance of seed harmonization across borders In order to achieve that goal, I had a total of ten individual deadlines to meet Apart from my individual tasks, I was also acting as the main communication channel between my taskforce and the Head of Business Development As a result, I had to give weekly reports of updates of our progress There were also four monthly review meetings with Asia Regional Director regarding the progress of the project Below is a table showing my individual action plan speeded across four months with specific tasks, goals and deadlines See Table 2
1 Study about CIP Familiarize with CIP’s mission in Vietnam, its stakeholders, and the chain of command 1 st May
Understand the characteristics and benefits of the ‘Seed Without Border’ initiative
Read all the development of ‘Seed Without
To analyze and produce a report on the varietal seed release process of India
To analyze and produce a report on the varietal seed release process of Vietnam
Trips to seed companies in
Identify and contact multinational seed companies in India who work in Vietnam and produce a report by comparing the seed industry in both the countries
Set up meetings with executives from DCP to retrieve local insights about the trends in the agricultural sector in Vietnam
Find out the needs of the farmers in Vietnam in order to encourage the government to rally behind the cause
6 Find out success stories of seed harmonization in
To highlight the significance and progress of seed certification via borderless trade in Africa can be used as evidences and also can be benchmarked
7 Find out success stories of seed harmonization in
To highlight the significance and progress of seed certification via borderless trade in EU can be used as evidences and also can be benchmarked
8 Find out success stories of seed harmonization in
To highlight the significance and progress of seed certification via borderless trade in India, Bangladesh and Nepal can be used as evidences and also can be benchmarked
Submit a cumulative report on all the research findings and observations of component 1 and component 2 along with the recommendations for MARD
Thư viện ĐH Thăng Long
C ONTRIBUTIONS TO THE C OMPANY
CIP had a well-laid action plan for four months with specific tasks, goals and deadlines with an easy chain of command and accessible resources This made it very easy for me to perform at my optimum and submit my deliverables My main contributions to the company came across three parameters:
The research project required me to gather, collect and handle a lot of data that also included me conducting secondary and primary research to find data Using my prior experience in data collection, I used frameworks to make a survey of right questions to find the right data
In this project, I had to manage a large amount of data My knowledge of research tools like Excel and SPSS helped to gather data, categorize and manage them Later on, several regressions were run on those raw data to analysis them and discover hidden insights and patterns
Strong cultural exposure and language skills in English and as well as three other major Indian languages (Oriya, Hindi, Bengali) helped in getting meetings with regional executives of agricultural departments in India, Bangladesh and Vietnam Additionally, proficiency in English boosted my report writing skills without much supervision
Owing to prior cultural exposure to agricultural farms in India, I used my knowledge and sensitivity to convince farmers and small stakeholders to share local insights about the best practices and constraints in the agricultural seed sector.
T HEORETICAL K NOWLEDGE A PPLIED
Courses in the masters program have given me a solid foundation to find confidence during my internship The AMI courses became a fantastic knowledge bank and a great source of reference book during my time as an intern at CIP This masters program enabled me not only to acquire theoretical knowledge from courses but also gave me an opportunity to apply that knowledge to real practice Below are some of the courses from the AMI program that I referred to while conducting research and meeting the requirements of my internship tasks See Table 3
Table 3: Apt Business Frameworks and Theoretical Concepts from AMI Curriculum
No COURSE NAME Apt Theoretical Concepts
• The chapter on ‘Cultural patterns and negotiation style of Vietnam’ was a good foundation on how to communicate with executives and officials in Vietnam
• ‘Hofstede’s cultural dimension theory’ gave good insights on how to engage with people from various nationalities
• Comprehend and analyzed legal agreements in the Vietnamese context using a common legal analysis tool called the 4-step ‘IRAC’ approach
4 Industrial Property Law • Understanding the source of IP Rights enforcement for the borderless seed trade between countries
• Knowledge of different methods of payment and the risks associated with it was a foundation to associate it to the farmer’s constraints with payment and cash flow
• The In-class case study on ‘the impact and implication of agribusinesses in developing nations’ served as the foundation for the internship on this project
• Used Market entry strategies to identify right stakeholders and partners for the project
8 International Strategy • All the business frameworks like PESTLE, SWOT,
4P, 7S, Mckinsey, BCG Frameworks can be useful in conducting preliminary background analysis
• The knowledge of different Management styles was useful to apply and understand the organizational structure of CIP
• Several examples of case studies of risk management in dire extreme situations helped in identifying the right recommendations that suited the profile of risks and problems associated with it
Thư viện ĐH Thăng Long
DEVELOPMENT
S TAKEHOLDER M ANAGEMENT
A Stakeholder Matrix is very important to understand the profile of stakeholders in order to decide to decide how to engage best with them The table below shows a matrix of seven distinct stakeholders identified across four major categories: Influencers, Governance, Providers and Users For this analysis, CIP and IRRI are identified as influencers for their role as major research and development centers that have a medium level influence on the project The government of Vietnam and Neighboring Countries (India, Bangladesh, Nepal, Cambodia, Myanmar, Laos) are identified as two stakeholders under the Governance category who have the highest power and influence on the project Seed Companies represented the category of Providers, as they are the retail link between the end users and manufacturers Lastly, Farmers represent the ‘Users’ category being the last stakeholder in the value chain In this value chain, both Farmers and Seed Companies have the lowest influence on the outcome of the project The table below also identifies the needs of each stakeholder, their potential contribution and the future blockades that can be caused by each stakeholder The purpose of the Stakeholder Matrix is to understand its participants and it does so by asking several key questions, such as: (1) What is the scale of the project’s impact on them? (2) What is the main priority of each participant? (3) How would they like to contribute to the project? (4) Are they interested in influencing the project? See Table 4 Responses, observations and findings to the key questions are finally used to develop a communication strategy for the stakeholder engagement that eventually leads to the productivity of the project Thus, identifying and recognizing the needs of the stakeholders to enlarge the pie gives a better negotiation power during actual meetings
In the same vein, power and interest are also two fundamental components to analyze all the participants Participants with high interest and high power are termed as the ‘Key Players’ while participants with low interest and low power are considered as ‘Least important’ The other two quadrants are for participants as parties that indicate elements like ‘Show Consideration’ and
‘Meet their needs’ exclusively See Figure 7 The major Key Players are currently participatory members of the agreement as they have the highest influence and interest in the success of the project The governments of India, Bangladesh, Nepal, Cambodia, Myanmar, Sri Lanka, and Bhutan are a few countries that have agreed to join the agreement and enable the borderless trade of primarily rice and potato seeds Their participation can help in improving the governance and coming up with fair regulations that might look promising for Vietnam to join the agreement and advance its agricultural industry to a standard of global acceptance
Thư viện ĐH Thăng Long
Vietnam is placed in the ‘Meet their Needs’ quadrant, which means they have very high influence on the outcome of the project but they aren’t very deeply interested in the project The lack of interest could be due to various reasons, but the important concern is to focus on their needs and figure out how to find value for them in order to utilize their influence for the success of the project The observations and findings will help us to focus on identifying the needs and priorities of the Government of Vietnam, and then fulfilling those requirements in order to transform them to the quadrant of ‘Key Players”, because without Vietnam’s leadership influence as a key player, it will be extremely difficult to implement the plan at the national, regional and local level in Vietnam Not to forget, that even though Farmers come in the ‘least important’ quadrant, their low interest can be exhibited as ‘high interest’ by publicizing them as champions of the cause They could be touted as complementary goodwill ambassadors for the project to be successful and have a credible image simultaneously
Figure 7: Power vs interest grid profile of stakeholders
U NDERSTANDING M ACRO - ECONOMIC E NVIRONMENT
Now that there is a clear understanding of the distinct stakeholders, the next step is to identify the external factors of Vietnam that are political, economic, social, and technological in nature by conducting a PEST Analysis to discover and organize the impact it can have on the outcome of the project and its planning process
So far, Vietnam has a stable political climate, as it has not faced any crisis in its political sphere, such as a coup or war This is a sign of security that can foster an environment for in-flow of investments from foreign companies In fact, this stability in their political system has led to increasing foreign direct investments (FDI) every year, especially in the agriculture sector In terms of healthy cooperation between Vietnam’s MARD and CIP, the Vietnamese government has adopted attractive investment policies to nurture in-flows of FDIs pertaining agricultural industry Vietnam joined ASEAN in 1995 and this agreement kicked off the trading of seeds and other food crops in and around neighboring countries 13 The ASEAN Economic Community (AEC) along with the Connectivity Framework Agreement (CFA) accounted for the maximum profit from importing and exporting of goods, services, tourism, etc Therefore, on an overall the political and legal climate looks favorable for Vietnam to consider the borderless trade agreement proposed by CIP
Future projections say that Vietnam is going to reach US$327 billion in GDP by 2020 Forecasts say that Vietnam has consistently increasing the number of FDIs in ASEAN, especially in manufacturing and agriculture The economy of Vietnam enjoys a lot of benefits since the signing of AEC such as increased trading and elevated commercial access AEC helps let in in- flow and out-flow of products and services as it entails a 0% tax between neighboring countries and is a perfect stimulant of hike in consumption, quality improvement and healthy competition which would ultimately help in improving the standard of living In terms of economic structure, agricultural sector in Vietnam accounted for 15.4% of GDP in 2017 14 Considering a high
13 Hill, N., 2012 Vietnam in ASEAN: Towards Cooperation for Mutual Benefits (Online) (Updated 3 October 2012) Available at https://bit.ly/2kyjJv1 [Accessed 27 August 2019, 3:47 pm]
14 Dennis, G., 2018 The future of ASEAN: Vietnam perspective (Online) (Updated 4 January, 2018) Available at https://pwc.to/2lEZFau [Accessed 27 August, 2019, 4:55 pm]
Thư viện ĐH Thăng Long
23 participation of transnational companies in agro-businesses and a high influx of FDIs in the agricultural sector, the economic conditions of Vietnam are aptly suitable to be part of regional collaborations for seed trade
Vietnam comprises of 82 million people and stands 13thin the world in terms of population Over 50% of the population doesn’t live in the urban regions and therefore as employment increases and arises due to increased jobs out of ASEAN opportunity, a huge mass movement to urban areas seeking for employment is inevitable and thence changing consumer habits as well
In terms of agricultural sense, it is already well-known news of how today’s consumers prefer eating high quality rice instead of high yielding rice As the incomes are increasing, there was been a demand for high quality rice from low quality rice Consumer patterns show that despite an increase demand for high quality seeds in Vietnam, the government hasn’t met the needs, as high quality needs only account for 25% of all seeds circulated in Vietnam Thus, keeping this in mind, the seed trade agreement comes at a very apt time to make sure that the needs of consumers are met as joining the agreement will help Vietnam to have access to prior approved seeds from partner-countries 15
Technology in Vietnam is a growing market and is developing everyday New technology such as advanced machines and monitoring gadgets in the agricultural industry has created new opportunities through increasing efficiency and productivity With the help of rapid globalization, and the increase in connectivity, Vietnam can get access to neighboring countries’ data processes
If all goes favorably, Vietnam can also expect a technology transfer from India Owing to similar climatic factors, this would lead to increase in awareness of improving crop yielding; reducing costs that incur while registration and testing and eventually help reduce poverty While the awareness isn’t very conclusive enough to land in decisions, Vietnam, though growing is still very backward when it comes to modern technological advancements Though joining the seed sharing trade agreement will help Vietnam circumvent lengthy procedures and vague evaluation periods by accepting the pre-approved seeds from neighboring countries In addition to that, the farmers will have access to high quality seeds; thereby enhancing their farming skills
15 Priyadarshini, P., 2019 Seed without Border: Regional Cooperation in Seed Sector Siem Reap Conference on
Regional Cooperation for Seed Sharing, June 17-18, 2019, Siam Reap, Cambodia
SWOT A NALYSIS
To understand Vietnam’s competitive positioning in the project, a SWOT Analysis is done to understand the strengths, weaknesses, opportunities and threats of the project with respect to Vietnam a) Strength
• Agriculture accounted for 18% of GDP in 2016, which is a positive indication for the scope of the Seed Without Border initiative as the country with a large focus on agriculture will massively benefit from the scope of the project and also be a touted as the leading Southeast Asian country addressing the issues of food shortage and Climate Change
• As a million people enter the labor force annually, Vietnam has a young and growing workforce with a median age of 30.7 While majority of people are involved in agricultural industry, the implementation of the project will allow the young people to be acclimated to best practices of farming
• The Cost-competitive economy of Vietnam is attractive to foreign investors now that China is suffering from rising wages The average monthly wage is around US$181 mostly lower than Philippines and Malaysia 16 The scope of the project allows for technology transfer from advanced agricultural countries like India As a result, it will attract a lot of foreign investments from foreign seed companies and other transnational companies Additionally, there will be a lot of offers for research and development partnerships from other countries
• The World Bank has classified Vietnam as a middle-income economy, thereby, improving its global value chain as a result of improved agricultural productivity, which is a good indication for foreign investors to invest their money in agro-businesses
• Supportive government policies for FDI such as tax breaks and special grants for agricultural companies attracts a greater amount of incoming FDIs and the lack of bureaucratic paperwork will not be a barrier to bring more foreign investors to the country As a result, the economy of the country is bolstered
• Entirely stable government without any conflicts due to its single party rule This indicates no potential political conflicts that could change the course of this agreement, as long as the country continues to believe in significance of the project
16 Irwin, R., 2017 Spotlight on Vietnam: The Leading Emerging Market (Online) (Updated 1 October 2017) Available at https://pwc.to/2yD3zmV [Accessed 27 August, 2019, 8:55 pm]
Thư viện ĐH Thăng Long
• Lack of modern technology in the agricultural sector continues to keep the productivity and value addition in the agriculture industry low Thus, Vietnam has not reached its optimum level of seed production
• The difference in the mode of language used for communication between foreign institutes and Vietnamese institutes can occasionally lead to conflicts; thereby, decreasing productivity Although, Vietnam is taking an active initiative in making English an official language, it has been rather unsuccessful in getting the workforce to adopt the usage of English proficiently
• Dependence on agents can demotivate foreign investors to invest in the country
• Lengthy paperwork and bureaucracy that involves interminable testing period, vague evaluation procedure without any distinct timelines c) Opportunity
• Vietnam’s 70% of the population is aged between 15-65, which means they have a sustainable workforce They have around 30 million farmers, which is about 60% of the workforce that encompasses almost 30% of GDP
• Changing consumer demands from high yielding seeds to high quality seeds, thus bringing up an opportunity to improve the nutrition of the people
• Willingness to pay for quality food and increase in demand for high quality food crops d) Threat
• Agricultural production suffers at the hands of pollution, leading to soil, water, and air pollution, which eventually lead to a low yield of crops
• High demand for better quality crops has forced farmers try all possible approved and unapproved methods to meet the demand of the consumers which has led to pollution prone farming methods that eventually leads to a low yield of crops in the long term.
T HE BENEFITS OF S IGNING THE A GREEMENT FOR V IETNAM
• Meet the market demand for high quality seeds
Vietnam’s positioning on joining the agreement would be impactful as it would be able to meet the rising consumer demand for high quality seeds over just high yielding seeds As the income of people are significantly increasing, people are able to afford a better lifestyle and thus, want
26 better quality nutrition especially when it comes to staple food like rice and potatoes 17 Despite the demand, Vietnam has not been able to meet the demand, which suggests that Vietnam is unable to meet the optimum level of seed production Thus, joining the agreement will help Vietnam to have access to high quality seeds from partner-countries
• Improve the nutrition and incomes of 30 million farmers in Vietnam
Vietnam is largely an agriculture-based country and as a result the country’s importance on seeds is invaluable It is estimated that while 75% of population lives in rural lands, 60% of the rural population are agricultural labor workers who account for 30% of GDP Similarly, rice accounts for 80% of the cropped area, which is again cultivated by 90% of households in rural farmlands Considering this dependency on agriculture by 75% of the rural population, joining the agreement will have better access to better seeds, and better harvests which will lead to better nutrition and incomes of the farmers and their livelihoods
• The development of the well-managed seed-system by farmers in Vietnam
Farmers are unsatisfied with the requirements of the seed sector in Vietnam and as a result they have organized themselves into informal seed clubs As a result, a lot of uncertified seeds are circulated that cannot be commercially sold in a black market Thus, joining the agreement will allow the farmers to have an easy accessibility to tested and certified seeds
• Have access to neighboring-countries’ research data and technology
Joining the agreement will give Vietnam the added advantage of the other country’s research data Along with the research data, Vietnam will also have access to feedback and results of the farmers in other countries that they can use to advance their own domestic agricultural system; thereby, significantly improving the quality of agriculture
• Become an attraction for FDIs by additional participation from the private sector
The need for the seed sector to develop and production to increase in Vietnam is imperative, because in recent times the industrial and urban expansion is leading to a rising population growth and as well as decreasing land availability for agriculture 18 Thus, joining the agreement would lead to a better supply of high quality seeds, better farming practices This will give a new boost to the new economy; thereby attracting more foreign investments from the private sector
17 Visser, B., 2017 The Impact of National Seed Laws on the Functioning of Small-Scale Seed Systems, 1 st ed., Oxfam Novaib
18 United Nations, 2009 World Investment Report 2009: Transnational Corporations, Agricultural Production and
Thư viện ĐH Thăng Long
CONCLUSION
P OSITIVE H IGHLIGHTS OF THE I NTERNSHIP
The four-month internship as Business Analyst at CIP proved to be a remarkable platform to be exposed to real world business issues while also being able to apply theoretical knowledge to resolve the business issues in an international context Some of the highlights of the internship are as follows:
• Exposure to the legislature, contractual laws, and policymaking of agriculture in
There is a high need for policy supporting the development of science and technology in agricultural production Until that breakthrough happens, joining the seed trade agreement would be beneficial for the country
• Understand the business culture, communication and negotiation style in Vietnam
One of the noteworthy traits while conducting business in Vietnam is trust It is really important to build trust in order to get things done smoothly Saving face and maintaining humility are also very meaningful considerations to keep in mind while doing business with Vietnamese people while also noticing that negotiations tend to be very slow In order for decisions to me made, the process goes through a lot of red tape several times and sometimes several group consultations are conducted repeatedly to reach an outcome
• Learn about the seed sector in Vietnam and the constraints of varietal release in Vietnam
There has been a sudden shift in demand for high quality seeds compared to high yielding seeds This new transition is the result of increasing incomes and changing consumer patterns, but Vietnam has been unable to meet the demand 19 Thus, joining the seed agreement would help Vietnam have access to high quality seeds from partner-countries that are tested and approved
• Comprehend the benefits and significance of borderless trade of seeds, food crops and agricultural practices in South Asia
The countries sharing borders usually tend to have similar climatic conditions as well as food habits This makes the countries suitable candidates to trade their food crops and other agricultural practices and as a result this initiative increases higher crop yields and production and enlargement of market size while also making it easy for farmers to have access to high
19 Dung, N M., 2014 The Seed Industry in Vietnam In: ReSAKSS-Asia Conference, September 25-27, 2013, Siem Reap, Cambodia
28 quality seeds A seed in Cambodia doesn't have to be tested and approved in Vietnam as it shares similar agro-climatic conditions 20
• Discover the best practices of borderless trade of food crops followed in South Asia, Europe and Africa
The impact and implications of the borderless trade of food crops, seeds and agricultural practices have been an astounding success Europe has a certification covering 27 countries for seed sharing, while Central Asia has also successfully managed to facilitate this cross-border trade of seeds and other vegetables Apart from trading of seeds, there has been a practice of similar agricultural practices in regions that share similar agro-climates One of the most widely used agricultural practices is the mass scale adoption of contract farming.
P ERSONAL A CHIEVEMENTS DURING THE I NTERNSHIP
• Acquire an advanced level research skills
In order to achieve my goals, I needed to conduct research Some situations demanded secondary research while required end-to-end communication with external stakeholders to get knowledge of the groundwork The collection data were then analyzed using data analysis tool called SPSS to find patterns in seed certification usage Being adept at conducting market research to establish the scope of the project was done through various business frameworks: SWOT Analysis, PEST Analysis, Stakeholder Matrix
• Interact with senior level ministry officials and leadership
In order to understand why Vietnam didn’t join the agreement since its inception in 2013, I had end-to end communications with government officials from MARD Later, in order to find significance for Vietnam to join the agreement, I conducted meetings with senior executives from seed companies to understand their viewpoint on the proposal
Giving face is very important in while conducting business in Vietnam according authority and hierarchy While cold calling maybe an acceptable form of reaching out to business contacts in the west, it is not a recommended way to make business contacts in Vietnam, though LinkedIn was resourceful at few occasions Thus, it is very important to arrange meetings through referrals
20 Singh, S.P., Behura, D., Kumar, S., 2015 Harmonizing Seed Policies for Better Cooperation in Rice Seed Trade between India and Bangladesh In: International Conference of Agricultural Economists, August 8-14, 2015, Milan, Italy
Thư viện ĐH Thăng Long
29 as that will make you look credible The importance and seniority of the referee will impact considerably on your image on being taken seriously
• Communicate with people from six nationalities
As the project is a multinational initiative, it required me to engage with nationalities from various nationalities: German, Indian, Chinese, Vietnamese, American and Cambodian The opportunity to interact with so many nationalities taught me to understand the scope of the project from six different perspectives
• Get the opportunity to be part of the scientific community of the big network of CGIAR dedicated to issues and perils of climate crisis and achieving food security
After being associated with the multi-country seed-sharing project in by CIP, I was also favorably linked to the world-class scientific community of scientists, environment activists, and technicians where I was updated with the latest trends, issues and opportunities concerning environment Having access to all the 15 research centers of CGIAR, but also its external stakeholders has given me an opportunity to not just learn about improving the livelihood of farmers through potato production, but also about fighting climate change, improving income, nutrition and livelihood of farmers, tackling climate change and achieving food security.
L IMITATIONS OF THE I NTERNSHIP
• No control over the successful outcome of the project
CIP is only an influencer who can only collect data, conduct innovative research and development and produce data to highlight the benefits of the borderless seed trade agreement It has no authority and hence cannot power and persuade the outcome of the proposal The decision to join the agreement is done at a ministry level Hence, its important to make alter and bring about change in the policies of the government that favors projects and schemes like that of
‘Seed Without Border’ initiative Vietnam’s choice to enter the agreement also depends on its relations with its neighboring countries and on the focus of its government on agriculture and its viewpoint on meeting the consumer demand for high quality seeds, tackling climate change and reducing food security CIP can only produce data, and suggest recommendations on the significance of the agreement So it is very essential to produce the best data-driven results and emphasize on the benefits of Vietnam with respect to its international borders and on the benefits it shall reap in its domestic areas as well
Despite English being the official language, there have been a few hurdles that had to be overcome due the language barrier Sometimes an interpreter was needed to conduct meeting government officials from MARD because they weren’t proficient in English This led to less productivity in understanding the subject matter at a great depth, as most of the nuance would get lost in translation Participating in field trails was inconceivable as all farmers would speak in Vietnamese, and I had to rely on translated documents to understand the summary of research at the end of all field trails
Many times, schedules and appointment were cancelled (sometimes with no valid reason or excuse) that delayed the progress of the project Sometimes it was due to language constraints; sometimes it was due to other priorities of the opposite parties Thus, it was important to keep alternatives and backups for each task and not have one source of resolving an issue Finding common ground to hold meetings was another alternative that could resolve this issue.
K EY R ECOMMENDATIONS ON H OW TO A PPROACH THE G OVERNMENT OF V IETNAM
• Identify the right people with decision-making powers to attend the meetings
The delegation should include important key senior officials with decision-making powers and influence There should also be top officials involved in seed industry in Vietnam Lastly, there should be a healthy mix of scientific community from institutes like Agricultural Genetics Institute in Vietnam A good mix of policy makers, scientists, traders and businessmen will certainly help in getting a good perspective of all their concerns from all viewpoints Eventually, it will be easier to set deliberations with some influence at the policy level to bring about any change
Recommend simultaneous interpretation from English to foreign languages during the presentations without issuing any headphones As a cultural and language barrier, non- native English speakers (in this case, top officials), on most occasions, do not favor the display of headphones owing to their status Most of the times, top leadership downplay their grasp on the language; thus, it is very important to conduct introductory seminars in layman terms that does not undermine the position and rank of the official
Thư viện ĐH Thăng Long
• Focus on the significance of the agreement on the 30 million farmers
Some of the reasons for Vietnam not joining the agreement earlier in 2017 could be as follows:
- Loss of jobs of the technicians and staff involved in the Variety Seed release registration process
- Traditional and conservative attitudes towards the success of foreign seeds in Vietnamese soil
Overall, the government of Vietnam can be persuaded that their concerns can be confuted and resolved by changing their perspective and shifting their focus on the benefits of 30 million farmers in the country in the form of better income, nutrition and superior farming practices It will also be compelling and productive to adopt a time-sensitive action plan in order to get the government to champion the cause That would dispel the conservative stance on the scope of joining the agreement.
C ONCLUDING R EMARKS
In summary, the resolve of business situations using theoretical concepts in an international context is clearly indicated in the paper in a five-part stage The business situation in this scenario is the positioning of Vietnam in ‘Seed Without Border’ trade agreement In order to achieve the mission, the paper touches on its background and organizational structure and discusses the business frameworks appropriate to analyze Vietnam’s environment to find the benefits of the agreement from Vietnam’s point of view The paper highlights the achievements and limitations of the internship and finally proposes an action plan by suggesting some recommendations to CIP on how to engage with the Government of Vietnam for better efficiency and positive outcome
In the same light, it is also crucial to mention that Vietnam has to address the vulnerabilities of food security and Climate Change With the country largely dependent on agriculture, it is even more important for Vietnam to see the significance of the regional cooperation of borderless trade This collaboration will not only help the country to provide their farmers with good quality seeds and but also bolster the farming skills of their farmers to a global standard Eventually, it will help in the long run to alleviate food shortage and also improve the livelihood of the marginalized communities
REFERENCES https://asean.org/ https://ageconsearch.umn.edu/ https://www.aaea.org/ https://www.cgiar.org/ https://cipotato.org/ https://ccafs.cgiar.org/ https://cgspace.cgiar.org/ http://www.fao.org/ http://www.ifpri.org/ https://www.pwc.com/ https://www.sdhsprogram.org/ https://unctad.org/
Thư viện ĐH Thăng Long
Table 1: CIP at a Nutshell - Factual Data 03
Table 3: Apt Business Frameworks and Theoretical Concepts from AMI
Figure 1: Global Partners of CIP in CCAFS Program 05
Figure 2: Basic Financial Figures of CIP from 2015 – 2018 07 Figure 3: CIP’s Structural Position in the CGIAR Ecosystem 09
Figure 4: Organizational Structure of CIP 10
Figure 5: Intern’s organizational fit at CIP 12
Figure 6: Intern’s interaction with other stakeholders 13
Figure 7: Power vs interest grid profile of stakeholders 21
Thư viện ĐH Thăng Long