July 9, 2018
With such tremendous opportunities in traceability, blockchain technology is the next huge step in food safety and it creates a major competitive advantage for farmers and all players in the agricultural industries. Taking the lead in shaping the next generation of agriculture in Vietnam, Infinity Blockchain Labs (IBL) has launched the “Fruitchain” project, one of the first solutions for the traceability of agricultural products in Vietnam based entirely on a blockchain-based platform.
Vietnam currently has incredible potential for the development of agricultural production and exportation. Typical Vietnamese fruits such as mangoes, dragon fruits, litchis, etc. are highly appreciated and exported around the world to major markets such as the United States, Japan, and Canada. Export of Vietnamese agricultural products is consistently growing, making a significant contribution to an increase in export turnover and improving trade balance. According to the Ministry of Agriculture and Rural Development, the total value of agricultural products exported in the first four months of 2018 reached an impressive total of roughly $6.5 billion, up 11.9% compared to the same period in 2017.
Despite the encouraging news for agriculture in Vietnam, there are significant barriers that prevent sustainable development in Vietnamese agriculture. Over the years, Vietnamese enterprises have experienced severe international competition. A number of homegrown companies have been forced to close down while others are struggling to survive. One of the main reasons for these problems is a lack of transparency, which causes negative repercussions on the reputation of Vietnamese brands. Moreover, low quality products with unknown origins are appearing uncontrollably in the market, causing value of Vietnamese agricultural products to sharply decline.
In order to improve competitiveness and increase the export value of Vietnamese agricultural products, traceability solutions are necessary to regain consumer trust and loyalty. Traceability helps verify product origins and ensures the transparency of products at every step of its value chain thereby paving the way for Vietnamese agricultural products to join the global production chain.
Until now, the most popular traceability method in Vietnam has been QR Code scanning, where data from initial production to packaging and distribution is provided through the simple act of scanning a QR code. However, traceability errors result from an inadequate or incomplete requirement traceability process. Provided information lacks transparency and remains largely dependent on the manufacturers. Meanwhile, other parties involved in the supply chain such as manufacturers or traceability technology suppliers can easily change and circumvent the information. The unverified and non-transparent information can potentially facilitate counterfeits and inferior product quality, thus causing consumers to lose trust in Vietnamese products.
Blockchain, the cornerstone of the 4.0 technology era, is the answer to bringing transparency and trust back to the customers. All information on blockchain is automatically stored and effectively secured so that no parties can intervene. Any changes are permitted only with the agreement of all involved parties. With these outstanding features, blockchain promises to bring greater transparency for Vietnamese corporations.
Transparency is a marketing opportunity for companies to highlight their good practices as well as a chance to nourish brand equity. Consumers are becoming increasingly aware of product origins, transparency, and the ecosystem and the people behind production. Traceability solves these problems hence building the fundamental brand necessity of consumer trust.
Furthermore, blockchain is poised to open up opportunities for all farmers and will help drive sustainable agricultural productivity. Full end-to-end supply chain visibility available on blockchain allows farmers to check and verify product consumption as well as prevention of any risk of sanitary scandals. Thus, farmers can easily verify the true value of crops, which may not have previously been available to them thereby producing informed market value, affordable crops, and an increase in profits.
IBL’s Fruitchain project is a revolutionary traceability solution that is set to bring consumer trust and confidence back to the Vietnamese agriculture industry. Powered on the blockchain platform, Fruitchain is developed with the intention to solve the problems of product information transparency. The solution provides real-time and transparent product information to the customers regarding production, packaging, shipping, and consumption. With Fruitchain, fruit producers have a better way to share their product information with their trading partners. In addition, retailers and distributors have easy access to new product information and changes.
The project will be first implemented with Cat Chu mangoes produced in My Xuong Cooperative, Dong Thap province. As the blockchain ecosystem leader in Vietnam and the South East Asian region, IBL strongly believes that blockchain technology will pave the way for a new agricultural revolution that is smarter, more efficient, and sustainable. This will also help stimulate economic growth by increasing the sector’s competitiveness through gains in productivity and trust, further affirming the value of Vietnamese brands internationally.
Fruitchain is a pilot project under the mega project “Vietnam Blockchain Country” a campaign to build the national brand image for Vietnam as the top of the blockchain world. This campaign is carefully designed by the dedicated team at IBL with the aim of changing the outlook of Vietnam in the eyes of foreign countries. Vietnam is not merely a country with diversified tourism potential and adaptability to many historic changes, we hope Vietnam will soon be known as the next blockchain ecosystem leader on the global map of technology.
Infinity Blockchain Labs (IBL) is a visionary R&D company committed to advancing society with next-generation solutions. We are currently the blockchain ecosystem leader in Vietnam with a global reach. Our mission is to be the R&D engine that transforms future technology into practical applications for business and everyday life. Named one of the top ten blockchain technology solution providers in 2018 by APAC CIO Outlook, our 200+ employees at IBL aspire to empower Vietnam to become the global leader in blockchain research and development.
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