Why have businesses in the province not yet established growing area codes?

The growing area code (MSVT) is an identification code for a growing area, used to monitor and control production, control product quality, and trace the origin of crop products. Building and establishing a MSVT will be a "passport" for agricultural products to be exported through official channels. For businesses, "owning" a MSVT can directly export agricultural products to other countries. This means that businesses "buy directly from the source, sell directly from the source", so revenue and profit will be much higher.

Why have businesses in the province not yet established growing area codes? MSVT certified chili area in Dinh Hung commune (Yen Dinh).

Grasping the above benefits, since the province started to build MSVT, a number of enterprises participating in exporting agricultural products in the province have studied the regulations and participated in building MSVT. However, up to now, although the whole province has been certified for 77 export MSVTs. Of which, there are 45 chili MSVTs, 28 rice MSVTs, 1 grapefruit MSVT, 1 lychee MSVT, 1 dragon fruit MSVT and 1 sweet potato MSVT, with an area of 692.2 hectares and 1 chili packaging facility, but in the province, there is still no enterprise that "owns" MSVT.

Tinh Cam Trading and Service Company Limited, in Dinh Lien Commune (Yen Dinh) is an enterprise specializing in purchasing and exporting chili products. In response to the requirements for MSVT regulations for exported agricultural products, especially the Chinese market, in 2021, through state management agencies, the enterprise grasped the requirements for building MSVT. On that basis, the enterprise has invested in upgrading infrastructure, investing in additional equipment and training knowledge for employees as well as implementing requirements on records, personnel, management and control of harmful organisms, origin of agricultural products... During the implementation process, the enterprise has always received the support of Yen Dinh district and the provincial Department of Cultivation and Plant Protection. However, when the competent authority assessed the criteria, the infrastructure of this enterprise did not meet the requirements. Therefore, it was not approved to build MSVT.

Similarly, Sao Mai Food Import-Export and Trading Joint Stock Company is also an enterprise that actively participates and “desires” to build MSVT. During the implementation process, this enterprise also received attention, guidance, and enthusiastic support from local authorities and units. However, due to lack of land fund to build infrastructure, up to now, Sao Mai Food Import-Export and Trading Joint Stock Company has not been able to own MSVT.

According to regulations, in order for a business to obtain MSVT, it must meet the requirements on production area and technical cultivation process, creating products that meet the criteria of the importing country. Along with that, it must ensure facilities, equipment, packaging process, labor, workers, pest management and control; origin of agricultural products; hygiene and waste treatment and other requirements. To meet these requirements, it requires businesses to have strong potential to invest in infrastructure, equipment as well as training personnel. In addition, the preliminary processing and packaging process must be strict and have raw material areas.

According to Mr. Vu Quang Trung, Deputy Head of Thanh Hoa Department of Cultivation and Plant Protection: In the process of implementing MSVT construction, the department always creates favorable conditions, accompanies farmers, localities as well as enterprises in guiding and supporting units and enterprises in building MSVT. However, in reality, production in the area is still small-scale, the concentrated production area, especially for vegetables, is not much, while the requirement to be granted MSVT is an area of 10 hectares or more, the technical process of cultivation is not synchronous, the approach to building MSVT of enterprises, cooperatives and farmers is still confusing; the number of enterprises directly exporting agricultural products, especially fresh agricultural products is still small.

In addition, there are a number of objective reasons that are also "barriers" to the construction of MSVT of enterprises, such as: On January 1, 2022, Order 248 of the General Administration of Customs of China regulating the management of foreign business registration when exporting agricultural products for food to this market and Order 249 on measures to manage food safety for import and export of China took effect with many strict regulations, making the construction of MSVT of domestic enterprises in general and of the province in particular even more difficult. The above factors are "barriers" that prevent enterprises in the province from "mastering" MSVT.

Having MSVT is considered a "passport" for businesses to bring agricultural products to many countries around the world. From there, it will raise the level of agricultural products of the province as well as of businesses. "More than anyone else, the Department of Cultivation and Plant Protection always wants businesses in the province to invest heavily to build MSVT through solutions such as: promoting accumulation, land concentration, close cooperation with cooperatives, farmers with large enough production areas. At the same time, boldly invest in technology, support farmers to produce agricultural products that meet export standards" - Mr. Vu Quang Trung added.

Article and photos: Huong Thom

Source