May 2, 2019
On April 18th, 2019, the first eight tons of Vietnamese mangoes were successfully exported to the American markets. All of the mango packages were produced by My Xuong Cooperative in Cao Lanh, Dong Thap Province. All of the mango packages meet the requirements of Vietgap, which ensures quality assurance, no pesticide residue, and meets size standard requirements. Furthermore, the mangoes were equipped with a new GS1-compliant blockchain-based traceability solution to lead to success in their new market.
Meeting American Quality Standards
The United States has stringent quality standards, thus meeting requirements for import is difficult. In addition to meeting those quality standards, exporting to the US required ten years of negotiation and adherence to regulatory procedures.
This is a tremendous opportunity for Vietnamese exporters. Now that Vietnamese mangoes have a “passport” to the US, Vietnamese exporters have an exciting new market to reach and this lessens the burden on other agriculture goods to enter the US. Beyond the expanded market, this motivates Vietnamese by alleviating the problem of “high cost, poor quality” often attributed to Vietnamese agricultural product. The route to success will not be easy, but Vietnamese exporters are optimistic.
The ceremony to mark the 1st export of Vietnam’s mango batch to the US market
In order to ensure that quality requirements meet VietGap and GlobalGap requirements to satisfy American quality standards, export enterprises and experts have been coming to the My Xuong Corporative to check mango production for the last year. Their efforts in guiding farmers on effective production and growing methods has enabled Vietnamese mangoes to meet US quality standards and become regulatorily compliant.
Each mango meets quality standards and has clear and transparent information on stamps
Blockchain Traceability Solution
In order to meet global quality standards for traceability and agricultural product management, the My Xuong Mango Cooperative through the help of Vietnam Blockchain Corporation (VBC), created a blockchain-based traceability solution for the mangoes.
Each mango is given a QR Code identification stamp using GS1 standard blockchain technology. Consumers can easily look up all the information of the mangoes from their origin such as fertilizing, spraying, and fruit bags, along with information on harvesting and distribution.
All information is recorded by individuals (gardeners, cooperatives, distributors …) in order to avoid a situation where one party can manipulate information. Since all information is recorded using blockchain technology, the information is immutable, meaning the information cannot be deleted, modified, or tampered with.
Immutability with blockchain is completed through a system of decentralization. This is the main feature of the decentralization system on the blockchain. Information is stored in a multi-server community, it is not concentrated on a server thus the ability to tamper is almost impossible.
Furthermore, the solution is GS1-compliant. GS1 is a globally recognized standard ensuring transparency and product quality. The application of GS1 standards in blockchain traceability applications makes verification easier when exporting to major markets and contributes to the increase of product value.
Process of applying blockchain technology in mango traceability applied by VBC at My Xuong Mango Cooperative
Blockchain technology offers major benefits over traditional QR Code solutions. Traditional QR-Codes only allow links to websites and provide static basic information. The information does provide status updates or any information on transport, preservations or delivery, and the information shown could be altered.
Traceability using blockchain technology enables consumers to easily verify the quality of agricultural products and minimizes fraud and other risks in the supply chain. This enhances brand value for businesses in the market.
Application of traceability of agricultural products using blockchain technology in compliant with GS1 standards
Hence Vietnamese mangoes are now equipped with unparalleled traceability technology for success in their new American market. By ensuring the absolute quality of the mango shipments from the farm to the market, this feature makes Vietnamese mangoes a competitive force. Thanks to the teamwork of Vietnamese farmers and technical experts in meeting American standards, international export will lead to exponential profits for growers and communities while contributing to the health of the Vietnamese economy.
Mr. Vo Viet Hung, Director of Xoai My Xuong and Dong Thap Cooperatives said “we are very happy and excited that Vietnamese mangoes are qualified to join the most demanding market, the United States. This will open a new perspective and new opportunity for the Vietnam mango industry.”
Mangoes are the sixth fruit of Vietnam to be exported to the United States after dragon fruits, rambutans, longans, litchis, and vu sua. According to Dong Thap Department of Agriculture and Rural Development, the province annually exports 93,000 tons of mangoes to Japan, Australia, South Korea, Russia, and other counties. 2018 was considered the most successful export year in Vietnam with the highest export turnover reaching nearly 4 billion USD.
The representative of the Ministry of Agriculture and Rural Development in Dong Thap and the representative of the US Consulate General in Ho Chi Minh City performed a ritual to bring mango products into export container.
The solution of blockchain technology application in GS1 standard traceability is called Agridential, researched and developed by Vietnam Blockchain Corporation (VBC) Joint Stock Company. VBC specializes in providing blockchain solutions and services for key sectors such as Agriculture, Manufacturing, Supply Chain, Logistics, E-Commerce and Economic Sharing.
VBC Joint Stock Company, formerly known as Vietnam Blockchain Country project in Infinity Blockchain Labs (IBL) Company, aiming to make Vietnam a pioneer country in the research and application of achievements from Blockchain technology.
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Infinity Blockchain Labs (IBL) is a visionary R&D company committed to advancing society with next-generation solutions. IBL receives global recognition through its renowned initiatives and influential partnerships while leading the blockchain ecosystem in its home, Vietnam. IBL’s mission is to be the R&D engine that transforms future technology into practical applications for business and everyday life.
In fulfilling this mission, IBL turns the complexities of blockchain technology into practical solutions through a comprehensive range of IT consultancies, the creation and integration of Apps, and an unyielding commitment to the research and development of cutting-edge blockchain innovations. Named one of the top ten blockchain technology solution providers in 2018 by APAC CIO Outlook, the 200+ employees at IBL aspire to empower Vietnam and all of humanity with powerful blockchain innovations to power the future.
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