Experts address problem of counterfeit pesticides in Viet Nam

In the wake of the rising presence of counterfeit pesticides in Viet Nam that are threatening farmers' interests, Viet Nam News reporters To Nhu and Minh Thi spoke to Nguyen Xuan Hong, head of the Plant Protection Department under the Ministry of Agriculture and Rural Development, and Rob Hulme, chairman of Croplife Viet Nam, a Sector Committee of the European Chamber of Commerce in Viet Nam.

Could you share with us your knowledge on the current situation of counterfeit pesticides in Viet Nam?

Nguyen Xuan Hong:

The trade of counterfeit pesticides is becoming more and more complicated, as criminals use clever tricks to evade authorities. Counterfeit pesticides are being found in many provinces, especially those in the Cuu Long (Mekong) Delta. They are increasing in both types and amount with sophisticated packaging and labelling. They even have anti-counterfeit stamps pasted on them.

This situation is difficult because the counterfeit products bring large profits to criminals, and farmers want to buy low-priced items to save costs.

Although the Ordinance on plant protection and quarantine has helped create a legal basis to ensure safe agricultural practices and promote better management, there is still a lack of specific regulations on the administrative fines, and the fines are not heavy enough to deter people from violating. Fines currently range between VND100,000 and VND30,000,000 (approximately US$5-1,400), depending on the extent of criminal activity.

How do you compare the problem to that in other countries? Is the problem more or less serious in Viet Nam?

Rob Hulme:

There is a perception that counterfeit products are only an issue in some Asian countries like Viet Nam and China. But actually, we see the problem as a global issue. In European countries, we have many cases recently of prosecution. The industry is too lucrative an opportunity for organised criminal gangs to make money and fund their activities.

I would say there is more opportunity in developing countries that don't have regular trade support for the regular trade framework, whether that is based on trade barriers or customs support, or economic support for police and criminal investigation activities. In these countries, there is more opportunity to take advantage of putting illegal chemical counterfeit products into the market.

However, just because certain countries are developed does not mean they do not have to deal with the issue of counterfeit products.

What are the impacts of counterfeit pesticides?

Nguyen Xuan Hong:

The use of counterfeit pesticides costs farmers a lot of money as they do not work on crops. When farmers find the use of pesticides ineffective, most of them just use more.

But a more worrying problem is that the counterfeit products are harmful to the environment and people. These counterfeit pesticides contain active elements and solvents with origins mostly from China, and organic substances that are toxic. The products, therefore, will kill useful organisms while allowing harmful ones to damage the crops. They also pose a threat to the people who spray the pesticides.

Rob Hulme:

There are four key impacts of illegal pesticides towards the farmers, the plant science industry, consumers and the country as a whole.

Illegal pesticides have the potential to destroy crops and leave soil residues that impact the environment and future sustainable land use. Farmers are cheated when they buy an illegal pesticide product that does not contain the active ingredient as claimed, leading to poor efficacy and financial loss. In severe cases, they could present a hazard to the farmer who is handling the product.

For economic companies including Croplife members, the issue is around economic loss not only through lost sales, but also through a loss of reputation. They have invested a lot of time, energy and resources in supporting their brands, but counterfeit products can damage them as farmers think that these are a reputable companies' products when in fact they are not. Economic loss then happens to the wholesaler and the retailer as well.

Thirdly, illegal pesticides can harm the end users, as they remain an unknown quantity in the end products and can leave harmful residues on sprayed produce, placing consumers at risk of contaminants.

Last, the costs of enforcing existing laws and regulations are significant, and the Government needs to employ sufficient resources to ensure compliance. Illegal pesticides have the potential to impact the strong reputation of Viet Nam in global export markets, with the risk that buyers of Vietnamese crops place embargoes on export produce from Viet Nam.

What should be done to protect the rights and interests of farmers? What is the key solution to reducing the presence of counterfeit pesticides in the market?

Nguyen Xuan Hong:

At a local level, our sub-departments in the Cuu Long (Mekong) Delta admit that they only detect a small amount of counterfeit pesticides compared to the actual quantity out there. The main reason is because each province has thousands of stores that sell pesticides, while there are only two inspectors in each provincial sub-department working to manage the sale of pesticides, and they have many other duties to take care of too.

Because of their workload, besides the regular inspections, they can only conduct inspections when an incident is made known to the public. In other words, they can only follow these incidents.

In my opinion, it is all because of poor management. We only focus on performing inspections on the stores, which is the surface of the problem, while the root of the problem – which lies in the manufacturing – is not properly paid attention to. If we keep working this way, even if the number of inspectors are multiplied, it will still be difficult to make a difference. Only when we better our management over the manufacturers will the fight against counterfeit pesticides have an effect.

I don't think this should be hard to do because we just need to track the place of storage, the processing area, the place for packaging and particularly the transport of goods.

Inspections over agricultural products have recently been reinforced. One example is the collection of more than 600 samples of pesticide from 15 manufacturers last year and the detection of seven substandard samples. The manufacturers of these samples were fined in line with regulations.

To fight counterfeit products, the farmers also need to do something on their part. Instead of purchasing pesticides from small dealers, they can go to registered vendors where the origins of pesticides are clearly shown, even though the price is higher.

Rob Hulme:

Co-operation between pesticide and customs regulators is critical, particularly in limiting cross-border trade. Illegal pesticides have the potential to impact the country's strong reputation in global export markets, with the risk that buyers of Viet Nam's crops place embargoes on export produce from Viet Nam.

It is critical that the industry works closely with the Government and key media agencies in order to provide co-ordination and awareness around the problem of illegal pesticides.

The anti-Counterfeit Action Week, planned for 12-18 September 2011, will provide a focus for raising awareness of the issue of illegal pesticides in Viet Nam. We will have a range of activities during that week, including media briefings, workshops and general awareness activities.

Source: Viet Nam News