Home > TERMS OF REFERENCE FOR STRENGTHENING THE PARTICIPATORY GUARANTEE SYSTEM (PGS) AND INCLUSIVE BUSINESS MODEL FOR THE DRAGON FRUIT SUPPLY CHAIN IN BINH THUAN PROVINCE IN 2025

TERMS OF REFERENCE FOR STRENGTHENING THE PARTICIPATORY GUARANTEE SYSTEM (PGS) AND INCLUSIVE BUSINESS MODEL FOR THE DRAGON FRUIT SUPPLY CHAIN IN BINH THUAN PROVINCE IN 2025

INTRODUCTION

The “Institutional University Cooperation with Quy Nhon University” (IUC-QNU) program, Phase 1, has been funded by VLIRUOS (Belgium) for five years, starting in September 2022. The program aims to sustainably improve the livelihoods and living conditions of people in the South-Central Coast and Central Highlands of Vietnam by enhancing the training, research, and technology transfer capacities of Quy Nhơn University in the fields of agricultural sciences, environmental sciences, and renewable energy. The IUC-QNU program involves four Belgian universities-KU Leuven, Hasselt University, Ghent University, University of Antwerp and two colleges: HOGent and VIVES. Among the seven projects under Phase 1, Sub-project 5 (SP5) focuses on increasing benefits for farmers by researching risk assessment and management methods in the dragon fruit supply chain in Binh Thuan province.

Due to a lack of market information and effective business strategies, farmers often face price suppression by traders, with their products passing through many intermediaries before reaching consumers. This affects traceability, price stability, and product quality, directly impacting farmers’ benefits. Like most fruits in Vietnam, the main issue in the dragon fruit supply chain is the frequent imbalance between supply and demand, leading to production and income instability for local farmers. Furthermore, farmers lack knowledge of quality control and product accountability. To address these challenges, the Participatory Guarantee System (PGS) and the Inclusive Business Model have been proposed for implementation in Binh Thuan province as potential tools to manage risks in the dragon fruit supply chain and improve local farmers’ livelihoods.

To summarize the current status of the PGS Ham Thuan Nam, the following outcomes were achieved in 2024:

– 11 lecturers from Quy Nhon University-ten of whom are members of the Sub-Project 5-participated in a training session to acquire foundational theoretical knowledge on PGS.

– Ham Thuan Nam district was selected as the pilot site for implementation of the PGS and Inclusive Business Model.

– Basic materials for both the PGS and LINK tools were completed.

– A workshop was held with local partners, including enterprises within and outside Binh Thuan province, representatives from the Department of Agriculture and Rural Development of Binh Thuan province, 05 staff members from the Agricultural Services Center in Ham Thuan Nam district, 08 cooperative directors, and 21 farmers from the Ham Minh 30 Cooperative, to introduce the PGS and the Inclusive Business Model.

– A PGS was initially established in Ham Thuan Nam district named “PGS Ham Thuan Nam”with a defined structure, functions, tasks, regulations, and assigned personnel. Farmers of Ham Minh 30 Cooperative can use the LINK tools for basic-level activity analysis and business planning.

– Three small plots managed by qualified farmers were selected for the systematic application of Vietnamese Organic PGS standards. Additionally, 18 farmers adhering to VietGAP standards joined the PGS for inspection and learning. All 21 farmers are members of the Ham Minh 30 Cooperative.

– Stakeholders agreed on the identification logo for PGS Ham Thuan Nam and practiced fundamental inspection skills.

Following the aforementioned activities, the PGS Ham Thuan Nam has basically formed an organizational framework with assigned functions and tasks. However, this system needs to be well-operated with the active participation of stakeholders, helping farmers bring products that meet the PGS Vietnam organic standards to the market, along with product traceability labels so that consumers can easily identify the local organic products. This initiative offers an opportunity for the region to expand its organic production area, as domestic consumers increasingly use, accept, and seek these products. In line with SP5 under the IUC-QNU program, we are seeking a team of experts, comprising at least two members, to continue executing tasks for approximately 20 farmers of the Ham Minh 30 Cooperative, along with four staff members from the Ham Thuan Nam Center for Agricultural Engineering and Services, in 2025, as detailed below.

EXPECTED ACTIVITIES

2.1. Hands-on Training for Organic Dragon Fruit Production

A three-day training course will be conducted covering production techniques in accordance with Vietnam Organic PGS standards, as well as the organization and operation of PGS Ham Thuan Nam. The training should include instruction on Vietnam PGS Organic standards, and develop corresponding production guidelines.

2.2. Hands-on Training on Inspection and Evaluation Methods, and PGS Certification

A four-day training course will be organized to cover inspection and certification procedures under the PGS, specifically:

– Conducting monitoring and peer-review, handling situations during inspection and supervision.

– Building up certification procedures and stamp management systems.

2.3. Training on PGS Management and Financial Management

A four-day training course enhancing PGS management and financial management by covering:

– Principles of capital and financial management for the Coordination Committee.

– Principles of capital and financial management for farmers.

– Evaluating and adjusting PGS Ham Thuan Nam’s business plans and strategies.

2.4. Training on Marketing and Sale Skills

A four-day training course focuses on enhancing marketing and sale skills, covering the following areas:

– Strengthening leadership capacity.

– Sales skills through social media platforms (Facebook, Zalo, TikTok, etc.), go-to-market strategy skills, and negotiation skills with businesses.

2.5. Support for maintaining PGS activities locally

A consultant will be assigned as a supervisor to provide ongoing support for local PGS activities. This support will include conducting monthly site visits once a month for 6 months to inspect fields, address emerging issues, and facilitating online meetings with the Ham Minh 30 Cooperative over a period of nine months to offer continuous guidance and support.

DELIVERABLES

3.1. Hands-on Training for Organic Dragon Fruit Cultivation

– A guideline document for the technical cultivation of organic dragon fruit, compliant with the Vietnam PGS standard, has been completed and provided to farmers.

– Farmers can practice organic dragon fruit cultivation such as formulating probiotics preparations to prevent and control pests and diseases, producing bio-fertilizer.

Expected completion date: Before June 15, 2025.

3.2. Hands-on Training on Inspection and Evaluation Methods, and PGS Certification

– At least 80% of farmers in the 3 safe groups and 100% of farmers in the organic group, along with stakeholders are able to conduct monitoring and peer-review, handle situations during inspection and supervision.

– A set of completed documents after conducting inspection and peer-review.

– A full set of documents related to certification procedures; a stamp management system is developed.

Expected completion date: Before July 31, 2025.

3.3. Training on PGS Management and Financial Management

– A guideline on principles of capital and financial management for the Coordination Committee, including its operating principles, organizational structure, and governance, is composed and handed to the Coordination Committee of PGS Ham Thuan Nam.

– A guideline on principles of capital and financial management for farmers such as cost and profit analysis, annual business plans, is composed and handed to farmers.

– A PGS operation manual aligned with the business plans and strategies for the PGS Ham Thuan Nam is composed.

Expected completion date: Before August 31, 2025

3.4. Training on Marketing and Sale Skills

At least 80% of farmers in the 3 safe groups and 100% of farmers in the organic group can create their own fanpage and post advertising content on social media platforms (Facebook, Zalo, TikTok, etc.), practice livestreaming in sales, and can practice negotiating with businesses in certain simulated situations.

Expected completion date: Before December 1, 2025.

3.5. Support for maintaining PGS activities locally

Monthly reports detailing practical situations related to PGS Ham Thuan Nam’s operation, along with consultant recommendations are sent to the Project and relevant authorities to ensure timely resolution and support for the production groups.

Time: From July, 2025 to December, 2025.

To achieve the above results, the experts will carry out the following tasks:

– Coordinate with the Program Support Unit (PSU) of the IUC-QNU phase 1 program and the Project 5 team leader to clearly identify the activities to be implemented.

– Dispatch training materials to project members at least two weeks prior to training sessions.

– Document the completed deliverables in Vietnamese, as mentioned in the sessions from Section 3.1 to Section 3.5.

– Prepare detailed reports in English upon the completion of each activity, including training sessions, cooperative assessments, and field inspections. Each report should outline the objectives, methodologies, key findings, participant feedback, and recommendations. Additionally, a comprehensive summary report consolidating all activities, lessons learned, and policy recommendations should be submitted at the end of the implementation period.

TIME AND LOCATION

– The above activities will be implemented from May 1, 2025 to December 31, 2025.

– Training location: Ham Thuan Nam District, Binh Thuan Province.

EXPERT CRITERIA

– Expertise in sales, marketing, agricultural economics, organic agriculture or related fields.

– Experience in consulting and implementing PGS in Vietnam.

– Ability to provide financial invoices upon contract completion.

APPLICATION SUBMISSION AND PAYMENT

– Interested candidates can submit their applications before April 1, 2025, by sending a detailed proposal including a description of the activities to be implemented, a timeline and the corresponding deliverables to the email addresses below.

– An advance payment of 20% can be made after the first deliverable is handed over and approved. Intermediate payments can be made based on the completion of deliverables as requested by the experts. The final payment (remaining 30% of the total amount) will be made after the final deliverable is handed over and approved. All payments are executed based on invoices.