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Creating Favorable Conditions for the Agricultural Export Industry Association to Operate Effectively.


In the initial stages of formation and operation, our country's industry associations are still confused and weak, which is inevitable. Therefore, the State needs to encourage and establish a favorable environment for the formation, operation and development of industry associations. From there, it contributes to strengthening the role of industry associations in improving the competitiveness of Vietnamese export enterprises.

First of all, the State needs to clearly recognize the role and position of industry associations in the economy, which is very important, especially at the present time when our country is integrating more and more deeply into the world. The strong development of associations in other countries is primarily due to the fact that both the State and enterprises recognize the importance of industry associations in the current context of globalization. However, in Vietnam, State management agencies have so far disregarded the role of associations, and even before making a decision related to the industry managed by the association, they do not need to consult the association, which leads to many decisions being issued that are not really in line with the actual operations of enterprises, unintentionally creating obstacles for those enterprises. There needs to be a reasonable policy to limit and end the trend of "nationalization" and "administrativeization" of associations, as well as the trend of "politicization" that is rampant in these organizations.

To perfect the State management mechanism, it is necessary to first establish a common legal framework for the organization and management of associations. These regulations specify the right to establish associations stipulated in the Constitution, define more specifically the procedures for establishing, merging, and dissolving associations, the rights and legal obligations of associations, and prescribe measures for State management of associations. It is necessary to promptly promulgate laws on associations and associations. However, the promulgation of such laws or other policies on associations does not mean that the State is autocratic and arbitrary in the activities of associations. In order to have


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In order to have policies or legal documents on Associations that have positive implications for the development of Associations, the State should create more favorable conditions for industry associations to actively participate in consulting and criticism work; participate in industry development and contribute opinions to build relevant legal documents. Agencies drafting legal documents must organize to collect opinions from industry associations. At the same time, it is necessary to organize more dialogues between competent agencies and representatives of industry associations, thereby collecting new solutions and innovations from industry associations to supplement, amend and adjust legal documents as well as through dialogues to promptly resolve difficulties of industry associations in implementing legal documents.

Second, there needs to be an agency to manage Associations in a specialized manner. Currently, the Department of Non-Governmental Organizations under the Ministry of Home Affairs is the State agency responsible for monitoring and managing Associations. In addition, Associations are also under the management of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, etc. This leads to the situation that whenever there is a matter related to State agencies, enterprises and industry associations are confused because of complicated administrative procedures and cumbersome, overlapping working apparatus of public agencies. The State needs to consider establishing a separate agency to manage Associations in a specialized manner, instead of spreading the management across the Ministries as it is now. If the Department of Non-Governmental Organizations continues to manage, it is necessary to expand the functions of this department so that the management is more rigorous and specialized than the weak and loose management mechanism as it is now. This agency not only has a management function but is also a center where Associations can seek help when needed, a place specializing in researching strategies to help Associations develop, and a place to train managers.

Creating Favorable Conditions for the Agricultural Export Industry Association to Operate Effectively.


Management for Associations, which helps Associations to remove obstacles in the process of operation.

Third, it is necessary to diversify the composition of enterprises in the Association. The majority of members of the current agricultural export industry associations are state-owned enterprises, which many people call the situation of "nationalization of associations". The draft law on associations does not allow foreign-invested enterprises to become official members but only associate members of the Association. The above regulation is not consistent with the State's incentive policy for this economic sector, as well as the current context of international economic integration. Therefore, it is necessary to have adjustments in the decree on association management so that foreign-invested enterprises can participate equally in the Association to contribute more to economic development in general and export in particular. In addition, it is also necessary to encourage enterprises in other fields but related to the export industry to join the Association (possibly as honorary members). For example, some businesses in the field of freight forwarding, quality inspection, insurance, banking, etc. to create coordination between industries in improving export efficiency.

Consistency in the legal system, in the policy system, and in the mechanism is a prerequisite to ensure effectiveness. In the upcoming development process, the construction of economic institutions must ensure consistency in the legal system, mechanisms, and policies in Vietnam, while ensuring compatibility with international standards, further promoting and more effectively promoting the process of proactive international economic integration.

2.1.2 Create favorable conditions for the Association of Agricultural Export Products to operate effectively.

* Financial support and training of leaders


The Association is a non-profit organization, not doing business, so ensuring financial resources for the Association's activities is an important task. Among the Association's sources of income, revenue from membership fees is the most important and legitimate. However, in the context of difficulties for businesses, the Association's early activities have not had many positive impacts on businesses, so it cannot be the main source of income to ensure the Association's operations. Therefore, in order to improve the operational capacity of the Associations of agricultural export products, the State needs to provide financial support to the Associations in their infancy in the implementation of activities, formation of apparatus and personnel. However, this support is not a subsidy but comes from the role and function of the Association. The State needs to consider the Association as its effective assistant, a civil organization that shares the responsibility of economic management and industry management. However, it is also necessary to gradually shift from direct support to appropriate forms of support according to the market mechanism by implementing orders, contracts for project implementation, plans, research topics or other public services. This support must be implemented on the basis of a legal framework with control sanctions, not on the current mechanism of asking for and giving, which can easily cause negativity and inequality between Associations and between member enterprises in the same Association.

Association activities require high professionalism, no less than other professions. However, currently, the majority of officers and employees of Associations are not equipped with the expertise to organize, manage Associations and provide services to members. Therefore, the State should have programs to support the training of leaders and permanent staff of Associations so that they have the capacity to build and develop their Associations.

* Building agricultural product trading centers


These centers have centralized and public auction trading floors for organizations and units from producers, processors to traders and exporters of agricultural products according to modern operating models. At the same time, this is also the place to organize editing, provide information and provide consulting services on planting, caring, producing, processing, trading... agricultural products for organizations and individuals in need; in particular, support providing information and consulting for farmers, who directly produce the products. The center also has a processing system with warehouses to standardize and serve the transfer of agricultural products for trading. This center will coordinate with other units to provide services on consignment of goods, credit, brokerage, processing, warehousing services and further logistics and bonded warehouse services. This is also a place for centralized purchasing for export and a focal point for offering and introducing purchases and sales to domestic and foreign customers, establishing relationships with agricultural product trading organizations around the world, gradually establishing solid development steps for the Vietnamese agricultural industry. Effective agricultural product trading floors will create a centralized, stable, and oriented market for producers, avoiding instability in buying and selling, creating stable socio-economic development, and creating a modern trading model that is suitable for the world.

* Building national brands for agricultural products


Each country also has a key product or service that represents its country. Japan has car and high-tech companies, Thailand is known for its tourism industry; France has wine, fashion and cosmetics, the US has high-tech products or world-famous online websites such as Yahoo, Google. So what is Vietnam's key product? Coming from an agricultural country, with coffee, rice and cashew nut production ranking first or second in the world, Vietnam should position its national brand with these products.


that key agricultural product. However, currently, most of Vietnam's agricultural export products do not have a brand or carry the brand of foreign distributors. In the coming time, in order for Vietnamese agricultural products to reach global consumers, the Government and the Ministry of Agriculture and Rural Development, together with relevant agencies, should promote the process of building national brands for agricultural products.


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2.2 Solutions for Agricultural Export Industry Association

2.2.1 Improving the operational capacity of the Agricultural Products Industry Association


To improve the operational efficiency of the Vietnam Association of Export Processing and Production Banks,

Associations themselves must be aware of improving their own operational capacity, because this is the first factor to maintain and develop Associations. To do this, Associations need to focus resources to effectively resolve the following measures:

* Improve the capacity of the leadership apparatus of the Associations of agricultural export products

To improve the leadership capacity, the Associations of Export Processing and Import Export Enterprises must first of all reform the organizational structure in a compact but effective direction. Reality shows that the association's leadership apparatus is commonly faced with shortcomings such as most of the leaders holding concurrent positions, lacking specialized departments (centers) operating full-time, basically still holding concurrent positions and being administrative in nature... Therefore, it is necessary to restructure the apparatus in the direction of forming specialized professional departments such as information centers, research and technology, market promotion, training, member development, legal consulting... Thereby enhancing the initiative, flexibility and dynamism of the organizational apparatus.


The operational capacity of the leadership apparatus also depends on the Association's staff. The Association needs to be more proactive in personnel work. The collective selects staff who are knowledgeable about the job, have prestige, and are enthusiastic about the Association's work. The Association's President must be a mature person from the business management team in the industry, elected by the collective, or implement a system of hiring and recruiting good experts... not a part-time official or appointed by the State or the governing ministry.

* Improving financial capacity for agricultural export industry associations

An equally important issue for the operation of industry associations is financial capacity. In reality, associations with large revenues and abundant financial capacity have been able to organize many useful activities for members, and conversely, associations with weak finances often operate less actively. Revenue from membership fees, support from the State and international organizations is not enough to cover the activities of the Association. Therefore, the Associations of agricultural export products should be financially proactive, not only relying on external funding by increasing revenue sources on the basis of strengthening and improving the quality of service activities such as providing information, consulting, training, scientific research, technology transfer, legal consulting, trade promotion and public service activities on demand, while expanding participation in business activities (under conditions permitted by law)... These activities will contribute to increasing revenue for the Association, while strengthening the role of the Association for member enterprises, and at the same time having the opportunity to attract more new members, expanding and further expanding the scale of the Association. However, finances also need to be public and transparent, and should be periodically reported to members, not for financial reasons.


Lack of clarity causes internal disunity and reduces the prestige of the leadership with members.

* Expand and develop membership


The number of members is the most accurate basis for assessing the Association's operational capacity. The more members there are, the more competitive strength they create. Currently, the majority of enterprises participating in industry associations are state-owned enterprises or large enterprises with a high proportion of export turnover in revenue. The Association should attract more small and medium-sized enterprises, foreign-invested enterprises, and representative offices of foreign enterprises in Vietnam.

An agricultural product association may not cover all the actors involved in production and business in that industry, but the association plays a role in linking the separate stages of the production - processing - consumption of agricultural products in the industry, by linking the strengths of independent enterprises to better perform services for businesses and society. For individuals or organizations that do not fully represent the actors of the industry, the association must continue to expand and welcome the participation of these actors, such as farming households, agricultural farms, cooperatives, groups representing workers, etc. If all the actors in all stages of the industry value chain can be gathered, it will be possible to focus on all aspects and issues in the industry. From there, it is easy to unify and share relationships, benefits and solve the economic and social problems of the industry. This ability to focus gives the Association prestige and strong influence in public relations and society.

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