Oct. 31, 2018
Tran Le Duy
Vice Director of Cuulong js Company
Established in 2001, Cuulong js Company has been building a long-term business strategy which focusing on product quality and perfect service for the benefits of the environment and the farmers.
With a team of highly skilled and qualified staffs with high capability, with the close cooperation on the basis of trust and reliability with the leading manufacturers in plant protection products such as Mitsui chemicals Agro Inc., Nihon Nohyaku Co., Ltd., Ishihara Sangyo Kaisha Ltd., Summit Agro International Ltd., Isagro S.P.A. Kumiai Chemical Industry Co., Ltd…For years, we have been giving to farmers the plant protection products with top quality which contributing to disease prevention for plants, safe for the environment and human health.
With the scope of business spread over the whole country, the dealers system with high reputation and capability, and with a strong background and prestige brand, Cuulong js Company believes in the successes in the future with the strong development and integration of Vietnam Agriculture with the world economy.
Q1: Could you please briefly introduce your company, your market position and your brand influence in Vietnam?
Our company is Cuulong js Company, working in the pesticide industry in Vietnam for more than 20 years, and is one of the companies specialized in distributing premium pesticides such as Dinotefuran, Thiobencard, Flubendiamide, Fenoxanile, Benthiopyrad, Flusulfamide, and Etofenprox.
Our main partners are Mitsui Chemical Agro, Kumiai, Arysta from Japan and Shangdong Wefang Rainbow Chemical Co. Ltd and CAC Shanghai from China.
Q2: We noticed that the Vietnam Ministry of Agriculture is asking farmers to increase the planting of economic crops instead of cereal crops. Could you introduce the Vietnamese crop plantation structure, including its area?
Vietnam is a country leading in the production of rice and coffee in the world, with more than 7 million hectares of cultivated rice and 0.665 million hectares of cultivated coffee per year. However, the competition from other rice-producing countries is very high so the profits for farmers are quite low. The Vietnam Ministry of Agriculture is pushing farmers to switch to better economic crops such as oranges, tangerines, dragon fruit, mangoes, and chilies, which offer a more attractive profit to farmers and also cater to the increasing demand from the domestic market, from people who are more interested in healthy lifestyles and safe agricultural products. Futhermore, fruit trees and vegetables are now seeing a higher demand from China, Europe and the United States markets. Last year, around 35,000 ha among 1.8 million cultivated rice in Mekong Delta was replaced with fruit trees.
Table of crop area in Vietnam estimated in 2018
(mil of ha)
|Vegetable group crop
||Tangarine, Orange, Pomelo
Source: The Vietnam Ministry of Agriculture, published in 2017-end
Q3: Please describe how your services help resellers or farmers achieve sustainable benefits. Would you be able to share your comments with regard to the core problems facing the Vietnamese agribusiness development?
Besides supplying premium quality products for rice and vegetables to farmers, we are a joint venture with a multinational company to improve formulation techniques to make better quality products, and get more energy for business management. At the moment, we are expanding our portfolio trend to the fruit tree segment and investing more to register more quality products to be supplied to farmers to control green hopper, mite, thrips, anthracnose on fruit trees and brown spots on dragon fruit.
In my opinion, the core problem with Vietnamese agricultural products is pesticide residual. This is one of the main obstructions facing the export of Vietnamese agricultural products.
Q4: Could you please tell us about the Vietnamese regulation changes to ban or restrict old products and introduce new ones? And are there any regulation changes to strengthen the market supervision?
Since early 2017, the Vietnamese government banned 2.4 D, Thiophanate-Methyl, Benomyl, Carbendazim, Paraquat, Triclorfon, restricted Carbofural, and in 2018, it continued to ban Acephate, Malathion, Diazinon and Zinc Phosphide. It rejected around 160 A.I of pesticides, which were highly toxic on vegetables and fruit trees in order to help the environment and prevent mass pesticide use, which causes residues to remain.
Since 2017, the registration of pesticides has become stricter and quite serious; however, the new regulation will support farmers access high quality pesticides, maintain a more clear pesticide business environment and particularly push all pesticide companies to invest in more techniques and model equipment in order to follow a new standard for improving the pesticide quality.
Q5: Could you please talk about the performance of multinational agrochemical companies in Vietnam? How do the native Vietnamese agrochemical companies compete with the multinational agrochemical companies?
Syngenta and Bayer are now the number one and number two players in the Vietnamese market. Last year, the merger between Dow and Dupont set a new rule in the market; besides these three giants, multinational companies such as Sumitomo Chemical, BASF, Nichino Vietnam (Brand Nihon Nohyaku Japan) Adama and Arysta, have a very aggressive and dynamic pesticide business market. Their competitive advantages are a wide license portfolio and a huge budget for promotion. However, the native Vietnamese pesticide companies provide improved quality, save costs for farmers, enter the niche segment, quick to expand portfolio, and cooperate with other smaller producers.
Q6: As per the China customs pesticide export data, we noted that there were 40.7 thousand tons of pesticides imported to Vietnam from China in the first half year of 2018, dropping almost 40% y-o-y, what do you think was the cause for this? Is there any influence on your business? What is your coping strategy?
The pesticide imports volume in the first half of 2018 from China has been dropping sharply because:
- The Vietnamese government has already banned Paraquat, 2.4D, Carbendazim, Benomyl, and Thiophanate Methyl, which make up a big part of the total imports from China
- Climatic conditions cause diseases on filed changed, there is less density of the leaf folder, stem borer, rice blast, and the continuous heavy rain makes the famer use less pesticides
- The jump in the export price made importers more careful about buying big amounts
Q7: The global agri industry is undergoing a big change. Chinese companies now have a bigger appetite for global presence. What suggestions can you offer to your Chinese partners on how to work together, and what is your vision for the future?
Yes, we are very pleased and would like to cooperate with them in the future.