Page 96 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

commodity ecosystem is not limited to the Each actor in this ecosystem plays a certain
supply chain or customers. It includes all the role and develops together.
actors that can affect the strategy, revenue, To develop the commodity ecosystem,
products and even actors in the value chain. it is first necessary to create a favourable
This is based on the idea of the ones living environment for the actors participating in
together in the same natural ecosystem. it to interact, link and share easily. In the
Farmers, cooperatives, traders, processing, ecosystem, individuals (groups) will follow
exporting and trading enterprises are in the social assignment to contribute their roles
an agricultural commodity’s ecosystem. In to develop together and can share risks. The
addition, there are suppliers of inputs, feed, actors or groups in the ecosystem will jointly
seeds, machinery and equipment. In addition, contribute to the creation of the product,
there are also providers of supporting services increase the product value, bring the product
(trademarks, labels, packaging, logistics to markets, and give feedback to the system if
services, warehouse and transportation). anything happens.
Furthermore, there are systems of research
institutes, credit, insurance, associations, etc.

53. What is “outsourcing
production”, and how can
Viet Nam’s agricultural
sector avoid the “trap” of
outsourcing production?

Currently, very few countries can do
all the steps themselves to form complete
products for the market. Therefore,
outsourcing activities have become popular
in both industry and agriculture, and also a
development trend of the global economy, outsourcing will bring higher efficiency. Many
contributing to the division of labour and businesses/organizations also participate
improving efficiency. The term “outsourcing” in product outsourcing activities when they
can be understood as “offshoring” , meaning realize they can earn better profits instead of
25
the purchase of services from an outsider directly producing and distributing products.
(unaffiliated) or an external supplier. A Thus, outsourcing activities are not entirely
company can provide offshoring services from harmful. The industries and sectors that are
an unaffiliated foreign company (offshoring effective with outsourcing activities can be
foreign company) or by investing in a foreign- promoted.
affiliated company (internal sourcing abroad)
(OECD) . Outsourcing activities often occur 25 English terminologies: outsourcing ot offshoring
26
when companies outsource due to insufficient (according to OECD)
26 OECD: Interpretation of terminologies – Definition of
resources or calculations showing that offshoring

9696 Guidelines for the Strategy for sustainable agriculture and rural development
Q&A for the Strategy for sustainable agriculture and rural development
in the period 2021-2030, and vision to 2050
in the period 2021-2030, vision to 2050