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Role of Social Enterprise in the Green Agricultural Development of Vietnam Role of Social Enterprise in the Green Agricultural Development of Vietnam Nguyễn Thu Trang Ros Vanchhay Young Economics Scientist Club National Economics University Nguyễn Thu Trang Ros Vanchhay Hà Nội, Việt Nam nguyenthutrangtkt56@gmail.com rosvanchhay8@gmail.com Role of Social Enterprise in the Green Agricultural Development of Vietnam Table of Contents Abstract Introduce 1.1 The concept of social enterprise 1.2 Green agriculture and the role of social enterprises in the development of green agriculture in Vietnam Research methodology Results and discussion 11 3.1 Situation of green agriculture development in Vietnam and some countries in the world 11 3.2 The role of social enterprises in the development of green agriculture in Vietnam 14 3.3 A social enterprise model for the development of green agriculture in Vietnam 23 Conclution 50 Acknowledgments 51 References 52 Role of Social Enterprise in the Green Agricultural Development of Vietnam Tables Table The consumer choice criteria for agricultural products (from to correspond to very cheap prices to very expensive prices) 25 Table The consumer choice criteria for agricultural products (from to correspond to unfriendly to friendly procedure) 25 Table 3 The consumer choice criteria for agricultural products (from to correspond to purchase at any location to purchase in the prestigious location) 26 Table The consumer choice criteria for agricultural products (from to correspond to the purchase location is very close to the place of purchase very far) 26 Table The consumer choice criteria for agricultural products (from to are correspond to bad to good appearance) 27 Table The consumer choice criteria for agricultural products (from to correspond to low price to high price) 27 Table The result of the user binning using Regression Trees according to the value of criterias 29 Table The importance of factors affecting consumer confidence in the agricultural products is safe, hygiene (from to respectively very important to very important) 31 Table The result of the user binning using Regression Trees according to the value of trust reason 38 Table 10 The level of consumer preference for the elements of the green agroecotourism sector (from to corresponding to very unwanted to highly desirable) 42 Role of Social Enterprise in the Green Agricultural Development of Vietnam Table 11 The level of consumer preference for the elements of green agriculture combined ecotourism (from to corresponds very undesirable to very desirable) (Next 1) 44 Table 12 The level of consumer preference for the elements of the green agro-tourism sector (from to corresponds very undesirable to desirable) (Next 2) 46 Role of Social Enterprise in the Green Agricultural Development of Vietnam Abstract The agricultural development in Vietnam is still inadequate due to many units producing and trading agricultural products not ensure the technical process, leading to environmental pollution, causing health risks for people, make reducing the confidence of domestic and international consumers in Vietnamese agricultural products Many measures to support agricultural development in Vietnam have been applied, many new agricultural models bring high efficiency, but also encountered many difficulties and has not been multiplied Green agriculture combined with ecotourism is one such model The cause may come from the lack of a core economic component for green agriculture With the strong development of both forms and areas of business, social enterprises in Vietnam are converging to bring all factors to become the leading force and direction in the development of green agriculture in Vietnam Through qualitative and quantitative analyzes, the paper presents the advantages of social entrepreneurship in the development of green agriculture in Vietnam, and suggests solutions to social entrepreneurship It is possible to build a green agriculture model that provides safe, environmentally-friendly products and meets the needs of today's consumers Keywords: social enterprise, green agriculture, ecotourism, agriculture Introduce 1.1 The concept of social enterprise According to the study of social enterprise: constraints and opportunities by authors William Smith and Emily Darko (2014), social enterprise is defined as a business enterprise with social or environmental objectives Significant change in commercial orientation Trade orientations may vary in some form: to share financial surpluses for customers so that they may co-own, thereby achieving social objectives, paying more than market prices suppliers, paying employees above the market level or limiting profits to ensure social objectives, cross subsidization for a group of customers to ensure social goals, subsidies from the State or non-governmental organizations for business activities to ensure social objectives Role of Social Enterprise in the Green Agricultural Development of Vietnam In Social Enterprise in Vietnam: Concept, context and policies by Nguyen Dinh Cung et al (2012), social enterprise is defined as an enterprise that has the following characteristics: - Social responsibility is a top priority - Use business activities, healthy competition as a tool to meet social goals - Reinvest the profits from business activities into organizations, communities and social objectives Research shows that most social enterprises have some typical characteristics: (i) a social ownership structure; (ii) income from business and donations; (iii) impact assessed on both economic and social dimensions; (iv) serve the needs of the poor, vulnerable and marginalized groups (v) initiative with a “bottom – up” approach; (vi) open and link; (vii) close links with social entrepreneurs; (viii) Social enterprise employees are “social workers” (paid non-volunteers) Social enterprises are often recognized as “hybrid” models between two types of non-governmental organizations, non-profit organizations and enterprises The social enterprise model can be applied to a wide variety of legal entities, such as nongovernmental organizations, limited liability companies, joint – stock companies, cooperatives, associations, clubs Notably, social enterprises are based on social initiatives in which business activities are used to provide sustainable solutions to the social, enabling the Figures are more advantageous than others in terms of organizational and financial autonomy, efficiency, and scale of social impact Article 10, Chapter I of the Enterprise Law (amended) of 2014 stipulates that social enterprises must meet the following criteria: a) Being an enterprise registered for establishment under the provisions of this Law; b) Objectives of activities to solve social and environmental issues for the benefit of the community; Role of Social Enterprise in the Green Agricultural Development of Vietnam c) To use at least 51% of the annual profits of the enterprise for reinvestment due to achieve the social and environmental objectives as registered In general, the concept of social entrepreneurship in countries and at times has some differences, but there is a commonality about the purpose of the enterprise’s operation is to solve social problems and environment 1.2 Green agriculture and the role of social enterprises in the development of green agriculture in Vietnam In the current context, as the world faces increasingly severe climate change and environmental pollution, rapid growth is no longer the first goal of any economy Countries are trying to find a way to bring sustainable development to the economy Green growth has become a more common term in strategic planning around the world The greening of agriculture, by Andy Hall and Kumuda Dorai (2015), introduces the concept of green businesses using technologies, methods to reduce the load of known toxins In agricultural production, replaced by safer alternatives, protection of water, land and air, conservation of natural habitats, and reduction of non-renewable energy use during the culture cycle In general, existing or new measures can be used to improve resource efficiency and ecological efficiency So green agriculture has broader objectives and criteria for safe agriculture or agriculture Safe agriculture, clean agriculture interesting in the quality of output, so as not to harm the health of consumers However, green agriculture also focuses on the ecological environment where agricultural produce is produced To achieve this, the use of hazardous substances in the production process needs to be minimized and properly regulated In contrast, if the toxins around the habitat of plants and animals are reduced, the product is also safer, avoid causing environmental pollution, causing harm to the health of the surrounding people and negatively affect the resources for later production The methods that can be used in green agriculture are biotechnology, organic agriculture, etc There are many studies that argue that green agriculture is important, building the foundation and promoting green growth for each country family In Vietnam, green agriculture has a bigger role to play, which is to limit the distortion of agriculture - to avoid Role of Social Enterprise in the Green Agricultural Development of Vietnam the emphasis on productivity without quality assurance, hygiene, food safety, Green agriculture will help farmers, businesses find new directions in production, supply products to the market, bring more benefits to consumers and protect the environment Although it has appeared in many parts of the world and is known in Vietnam, green agriculture has not been replicated nationwide Due to promote green agriculture in Vietnam, it is necessary to find a leading force in the orientation and development of green agriculture Compared with normal commercial enterprises, social enterprises are more suitable and have more advantages in this field The paper examines the role and advantages of social enterprises in the development of green agriculture in Vietnam To date, there have been several studies on green agriculture and the role of social enterprises in the development of a country's agriculture William Smith and Emily Darko (2014) point out the challenge – the opportunity of social enterprises in Vietnam and Kenya in the field of agriculture and medical The survey found that majority of social enterprises in Vietnam are small or very small, although they provide special products, special markets and receive a lot of support from the state and non – governmental organizations However, social enterprises face many difficulties The authors have pointed out some difficulties for social enterprises in agriculture and health in Vietnam and Kenya such as difficulties in accessing finance from banks, lack of intermediary referrals for entrepreneurs lacking of human resources due to the difficulty of competing for employees with normal commercial enterprises, the provision of special products or participation in special markets also causes difficulties for social enterprises, social enterprises also face difficulties in terms of policies, legal regulations and organizational structure Despite some difficulties, the study also confirmed that social entrepreneurship is very relevant to the provision of specialized agricultural and medical products in both Vietnam and Kenya In the recent study of Social Enterprises in Organic Farming and Their Usage, author Yixin (Sarah) Zhang (2016) affirmed the superiority of social enterprise in comparison to commercial enterprises in China The purpose and mode of operation of organic agriculture products are marketed, and the social entrepreneurship (mainly in the form of farmer association) These include: difficulty in accessing and gaining consumer confidence, product quality management by Role of Social Enterprise in the Green Agricultural Development of Vietnam participating farmers, and social pressures on some young farmers returning when the university education personnel The author has emphasized the role of information technology, especially the use of general information pages, social networking for market access and gaining trust from consumers of social enterprises This paper also explores many other relevant studies and performs qualitative and quantitative analyzes such as stratified tree algorithms to produce a green agricultural and green traveling model suitable for Vietnam and can be developed by social enterprises Qualitative and statistical analysis is used to identify the strengths of social enterprises in line with the development of green agriculture in Vietnam The quantitative method used is the stratified tree algorithm which can classify consumers with different tastes very effectively and look for important factors affecting the trust and choice of consumers for Vietnamese agricultural products Research methodology This paper uses qualitative and quantitative methods Qualitative methods such as policy research, business interviews, and analysis of results from previous studies The author conducted a direct interview with farmers Pham Van Thu in the poultry industry and Mr Nguyen Trung Hau in the livestock industry in Vinh Bao district, Hai Phong city on the production habits Evaluate the agricultural market in Vietnam and advantages and disadvantages encountered in the production of safe agricultural products In addition, the research also explored the difficulties and advantages of start-up businesses in clean agriculture and safe agriculture through means such as social networking, surveying, etc Regression Trees is used as a classification algorithm Regression Trees is a classification algorithm commonly used in data research The idea of the algorithm is that at each step dividing the observations containing the value of the dependent variable into two groups, the criterion of grouping is based on the value of an independent variable at that observation The conditions of the independent variable at each division step are calculated so that dividing into two groups ensures a certain difference between the observations in the two groups The result will be that the observations are divided into Role of Social Enterprise in the Green Agricultural Development of Vietnam groups, each of which has distinct characteristics about the value of some independent variables This algorithm is useful for classifying consumers with different characteristics and needs In class, it is necessary to maximize I [C, X] - information about X features For Regression Tree, it is necessary to maximize I [C, Y], where Y is the response variable and C is variable says that the leaves of the tree end here At each iteration step, find a binary question that maximizes the information about Y, for the node in the tree Accuracy determines the criteria for stopping That criterion can be the sum of the squares for a fault in a tree Sum of squares for a tree error is computed as follows: ∑ 𝑆= ∑(𝑦𝑖 − 𝑚𝑐 )2 𝑐 ∈ 𝑙𝑒𝑎𝑣𝑒𝑠 (𝑇) 𝑖 ∈𝑐 Where: 𝑚𝑐 = 𝑛𝑐 ∑𝑖 ∈𝑐 𝑦𝑖 𝑆 = ∑𝑐 ∈𝑙𝑒𝑎𝑣𝑒𝑠 (𝑇) 𝑛𝑐 𝑣𝑐 Where: 𝑣𝑐 is variance of leaf c Algorithm to create a division to minimize S Here is the basic algorithm: 1) Start with a node containing all the observations Volume and S 2) If all the observations in a node have the same value for all input variables then stop If not, search across all binary distributions of all variables that reduce S as much as possible If the largest decrease in S is less than a certain threshold or the number of observations in a node is less than a certain value, then stop 3) Algorithm can be stopped too soon due to the control criteria or the tree grows too large The Cross - Validation method checks at the two nodes that the parent should merge or not The regression tree is used in the R-3.4.1 software with the rpart function in the rpart package The purpose of the Regression Tree in the article is to group customers with the same criteria and characteristics The averaging of the dependent variable in each group predicts the value of the dependent variable based on some of independent variable values 10 ... previous studies The author conducted a direct interview with farmers Pham Van Thu in the poultry industry and Mr Nguyen Trung Hau in the livestock industry in Vinh Bao district, Hai Phong city... monitoring by farmers with state or market standards Except for some exceptions, distribution channels and consumers have never named poor producers or praised standard manufacturers Consumers are... did not really follow a standard procedure for safe agricultural production, as costs exceeded sales, yet he was comfortable with farm produce but produced by myself Mr Nguyen Trung Hau in Hai