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Ethnic minority youth lead start-up wave with traditional products

In his late 20s, Ho Van Thang decided to launch his first business growing the species of chili pepper his family has treasured for centuries on the western mountain of Quang Tri province.
Ethnic minority youth lead start-up wave with traditional products ảnh 1Farmers in Quang Tri province harvest chili peppers (Photo: VNA)
Hanoi (VNS/VNA) - In his late 20s, Ho Van Thang decided to launch hisfirst business growing the species of chili pepper his family has treasured forcenturies on the western mountain of Quang Tri province.

The idea came to the Van Kieu ethnic man because theindigenous chili planting area had gradually disappeared, replaced bycassava.

“Since a tapioca starch factory was opened, people haveswitched to planting cassava as it was promised to bring them better profits,”said Thang. “The forest with which we grew up was cut down while many preciousindigenous species disappeared along with the clean environment our ancestorshave lived in for years.”

Thang was motivated by improving local people’s lives,securing their livelihoods and conserving traditional plants and cultivationmethods.

According to the Government, Vietnam is now in its thirdwave of start-up innovation. “Innovation” and “Industry 4.0” have become commoncatchphrases.

While people around the country pivot to technologies of thefuture, Thang is taking a step back to embrace the traditions that nurtured himand hundreds of other people in his tribe.

“Chili pepper is just one of several traditional products wewant to restore,” Thang said. “They are all indigenous, high-quality andnaturally cultivated – factors the market has been searching for.”

Nearly a thousand kilometres away, in the northwesternmountainous area in Lai Chau province, member of the Nung ethnic group Ly VanNgang formed a group of eight members to produce and gather local products,serving a similar mission – to preserve traditional values and createsustainable livelihoods for local people.

The group did surveys in both Vietnam and China and thendecided to focus first on the domestic market.

“Our mainstay is indigenous rice which can only be plantedin the communes of Lai Chau,” Ngang said. “The rice has a special taste andhigh nutrient content.”

With quality products, good agricultural practices and highdemand, it seems like the start-up businesses of Thang and Ngang are enjoyingthe conditions to thrive.

But the reality is not so simple. There seems to be amissing piece of the puzzle connecting their products with consumer markets.

“Since most of our products are seasonal, it is impossiblefor us to maintain the supply for distributors,” said Thang.

“How to best preserve product quality without usingpreservatives is another question,” said Ngang. “We want to expand the marketbut we cannot transport products too far.”

Poor bargaining power and price setting ability also preventthese young farmers from getting the profit they deserve.

“I often wonder how to successfully connect with traders andbuild sustainable ties to establish a stronger foundation for indigenousproducts,” Ngang said.

Just like Thang and Ngang, Luong Thu Hoai is a start-upentrepreneur.

She owns two shops that distribute local specialities with80 percent of goods coming from Ha Giang province.

“Being a specialty, indigenous species and having clearorigins are three criteria I set for any product we distribute,” said Hoai.

Understanding the concerns of Thang and Ngang, Hoai stressedupon brand building as the first step to unlock the market.

“You have to let them know about your presence,” she said.“It is all about packaging, how you want your customers recognise your productsand how they will be transported while still maintaining the best quality.”

Traceability is one of the biggest challenges for farmerslike Thang and Ngang as their focus is traditional know-how.

According to Hoai, customers want and have the right to knowhow the food they eat is made.

“It seems complicated talking about traceability,” Hoaisaid. “In fact, all you need to do is to keep track of all steps in yourproduction – when worms appear, what kind of fertiliser you use, for example. Apen and a notebook are all you need.”

Nguyen Cong Chi, Director of Digital Verifying TechnologyCompany, has worked in the field since 2014, two years before the Governmentstarted paying attention to traceability in agriculture.

The company provides agricultural start-ups run by ethnicminority youngsters a quality management system for free for one year.

“Farmers will need to prove their products are indigenous,well made and traceable to receive the support,” Chi said.

Ngo Kieu Oanh, an independent consultant for the Ministry ofAgriculture and Rural Development, said policy advocacy can be one solution toreduce the challenges faced by start-up farmers.

“Vietnam is proud of its agricultural products, yet many ofthem cannot make their way to the 90-million-person market,” she said.

The Government must play the role of facilitator to createan environment in which agricultural start-ups can thrive.

In 2018, Vietnam issued two decrees on organic agricultureand promoting co-operation in production and consumption. Both were designed tooffer farmers greater opportunities and more assistance in developingsustainable agriculture.

“Farmers should focus on organic production as there is highdemand and customers are willing to pay more,” Oanh said.

She gave Tien Giang’s province Lo Ren star apple fruit as anexample of an organic-certified specialty which was able to satisfy the USmarket.

“Technology will help you achieve both quality and quantity,bringing a name for your products and opening a door to export markets,” saidOanh.

“Mountainous areas have advantages to develop organicagriculture,” she said. “And farmers, accompanied by investors, traders and theGovernment, should be the vanguard leading the way.”

Thang, Ngang, Hoai and other young entrepreneurs have takenthe first steps towards building successful businesses based on theirtraditional values.

They are bound to face challenges, but with hard work anddedication to their craft, the future is bright.

“Indigenous species are our pride, the foundation and alsothe motivation that pushes us forward. With those lasting values, I believe Ican try and thrive in my own hometown,” Ngang said.-VNS/VNA
VNA

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