BioTrade refers to the collection, production, transformation, and commercialization of goods and services derived from native biodiversity using the criteria of environmental, social and economic sustainability. Natural ingredients are processed products from plants, animals, and microorganism collected or cultivated in the wild or domesticated and produced in an ecological way, without the use of any petrochemicals. Natural ingredients are used in many ways in the pharmaceutical, cosmetic or food industries for commercial purposes as natural ingredients and have considerable market value.
South-East Asia is one of the world’s most important biodiversity hotspots and Vietnam, Laos, and Myanmar are amongst the most biologically diverse countries on earth. With a growing annual demand of 10-15% worldwide, natural ingredients sourced from this biological resource represent a huge business potential - particularly on international high-end markets, where customers are willing to pay a premium for sustainably produced and fairly traded goods.
According to Mr. Miroslav Delaporte, Head of Cooperation at the Embassy of Switzerland in Vietnam, “This project aims at conserving biodiversity though sustainable trade of natural ingredient, in which it focuses on increasing the competitiveness of local exporter and producers, developing livelihood for rural population and taking into account BioTrade principles”. Despite this, the sector has not yet reached its potential to become a leading export sector in Vietnam. “That sector has been facing challenges such as threats to biodiversity and economic development of the rural population, for instance, the overexploitation of biodiversity-based resource from natural forests for exporting to low quality market currently is threatening the social, environment and livelihood of upland farmers and banning export opportunities for local companies”, the Representative of Vietnam Star Anise and Cassia Manufacturing and exporting JSC shared.
To unleash the great economic and environmental potential of this sector, the project will focus on the collaboration with (i) 12 companies in Vietnam and 20 companies in total to establish export oriented value chains, following Ethnical BioTrade Principles, (ii) service provider to eliminate/reduce service related bottlenecks slowing growth the natural ingredients sector and (iii) Government and other institutions and stakeholders to establish a conducive enabling environment for the Biotrade sector.
“Over the next 3 years, we will work to increase the competitiveness of local exporters and enable them access to high-end markets, while providing better income and jobs opportunities for harvesters and producers. By incorporating the principles of Biotrade, we will ensure that, biodiversity is protected and encouraged during this process.” said Andrew Wilson – Regional Project Manager.
For further information, please contact:
Do Quang Huy
National Programme Officer SECO
Embassy of Switzerland in Vietnam
Swiss Cooperation Office
Hanoi Central Office Building, 15th Floor
44B Ly Thuong Kiet Street, Hanoi, Vietnam
Phone: +84 4 3934 65 89 (ext. 803976)
Fax: +84 4 3934 66 33