Báo cáo Study on economics and socioeconomics of small scale mango farming and cooperatives in the Mekong River Delta, Vietnam

CARD PROJECT 050/040 VIE  
Improvement of export and domestic markets for  
Vietnamese fruit through improved post-harvest and  
supply chain management  
Study on economics and socioeconomics  
of small scale mango farming and  
cooperatives in the Mekong River Delta,  
Vietnam.  
By Mr Robert Nissen1, Mr Nguyen Duy Duc2, Ms San Tram Anh2, Ms Tran Thi Kim Oanh2, Ms.  
Tran Thi Ngoc Diep2, Mr Vu Cong Khanh2, Mr Ngo Van Binh2, Mr Le Minh Hung2, Mr Tran Ngoc  
Linh2, Dr. Nguyen Minh Chau3, Mr Doan Huu Tien3, Mr Ta Minh Tuan3, Dr. Le Thi Hong3, Dr  
Nguyen Thi Nhat Hang3, Dr. Ian Russel4, & Dr. Marlo Rankin4.  
1 Queensland Department of Primary Industries and Fisheries (DPI&F) , Maroochy Research Station,  
PO Box 5083 SCMC, Queensland, Australia, 4560.  
2 Southern Sub-Institute of Agricultural Engineering and Post-Harvest Technology (SIAEP), 54 Tran  
Khanh Du Street, District 1, Ho Chi Minh City, Vietnam.  
3 Southern Horticulture Research Institute (SHRI) formerly known as the Southern Fruit Research  
Institute (SOFRI), Long Dinh-Chau Thanh, P0 Box 203 My Tho Tien Giang, Vietnam.  
4University of Queensland, Gatton College, School of Natural and Rural Systems Management, Gatton  
Campus, Lawes Queensland, 4343, Australia.  
CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
© The State of Queensland, Department of Primary Industries and Fisheries 2008.  
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By R.J. Nissen et.al.  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
Table of Contents  
EXECUTIVE SUMMARY...................................................................................................... 1  
BACKGROUND....................................................................................................................... 4  
OBJECTIVES OF THIS STUDY........................................................................................... 5  
STUDY TEAM ......................................................................................................................... 5  
METHODOLOGY................................................................................................................... 6  
SECTION 1 RESULTS:- SOCIOECONOMIC COMPONENTS OF VIETNAM............ 7  
POPULATION DEMOGRAPHICS .................................................................................................. 7  
Demographics of Vietnam.................................................................................................. 7  
Demographics In The Major Cities of Vietnam ................................................................. 8  
Demographics In The Two Major Regions of Vietnam...................................................... 9  
Demographics and Rural Women ...................................................................................... 9  
Demographics of CARD Project Trainers, Trainees and Workshop Attendees and  
Information Obtained on The Role of Women in The Vietnamese Farming Society ......... 9  
CARD Project Team ................................................................................................................. 10  
CARD Project Trainees............................................................................................................. 10  
Demographics of Workshops this CARD Project Conducted.................................................... 11  
DEPENDENCY RATES ............................................................................................................. 11  
FERTILITY RATES................................................................................................................... 11  
MORTALITY RATES................................................................................................................ 12  
HEALTH AND HEALTH CARE .................................................................................................. 12  
Smoking............................................................................................................................ 12  
EDUCATION........................................................................................................................... 13  
Education and effects on CARD Project Conducted................................................................. 14  
POST AND COMMUNICATION NETWORKS .............................................................................. 15  
AGRICULTURAL NETWORKS.................................................................................................. 16  
BANKING MARKETPLACE AND AGRO-FORESTRY PROCESSING FACILITIES. .......................... 16  
Banking............................................................................................................................. 16  
SOCIAL POLICIES IN RURAL AREAS....................................................................................... 16  
LABOUR ................................................................................................................................ 17  
Rural labour force............................................................................................................ 17  
ECONOMY ............................................................................................................................. 19  
Economic Effects on CARD Project Conducted .............................................................. 20  
TAXES ................................................................................................................................... 21  
INCOME ................................................................................................................................. 21  
EXPENDITURE........................................................................................................................ 23  
RURAL INFRASTRUCTURE...................................................................................................... 23  
Electricity ......................................................................................................................... 23  
Roads................................................................................................................................ 24  
CLIMATE ............................................................................................................................... 24  
LAND..................................................................................................................................... 24  
Farm land policy and farm development ......................................................................... 26  
Some land use laws on farm size and period of use......................................................... 27  
Soil Implication in the CARD Project......................................................................................... 28  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
WATER.................................................................................................................................. 28  
Rural water supply ........................................................................................................... 28  
Irrigation and Water Management Practices and Implication for the CARD Project.................. 29  
Environmental Implications for CARD Project ............................................................... 29  
Agricultural Chemical Usage..................................................................................................... 30  
SECTION 2 A:- ASSUMAPTION FOR THE SOCIOECONOMIC ANALYSIS OF  
THE CAT HO LOC MANGO SUPPLY CHAINS ............................................................. 31  
MANGO VIETNAM ................................................................................................................. 31  
Assumptions...................................................................................................................... 31  
SECTION 2 (B):- RESULTS OF THE ANALYSES OF CAT HOA LOC MANGO  
SUPPY CHAINS IN THE MEKONG DELTA OF VIETNAM. ....................................... 35  
FAMILY HOUSEHOLD OR FARM ORCHARD ............................................................................ 35  
GROSS YIELD & MARKETABLE YIELD .................................................................................. 35  
FAMER LEVEL....................................................................................................................... 35  
Farm Production ....................................................................................................................... 35  
Marketable Fruit & Baskets per hectare.......................................................................... 35  
Farm Revenue .................................................................................................................. 36  
Farm Variable Expenses.................................................................................................. 37  
Farm Total Growing Expenses ........................................................................................ 38  
Farm Total Variable Costs............................................................................................... 39  
Farm Gross Margins........................................................................................................ 39  
Farm Fixed Costs............................................................................................................. 40  
Farm Total Fixed Costs.................................................................................................... 40  
Farm Break Even Point.................................................................................................... 41  
Farm Net Returns............................................................................................................. 41  
COLLECTOR........................................................................................................................... 42  
Volume Handled by Collector ................................................................................................... 42  
Collector Product Purchase Costs................................................................................... 42  
Collector Product Sale Price ........................................................................................... 43  
Collector Variable Costs.................................................................................................. 43  
Collector Gross Margins.................................................................................................. 45  
Collector Fixed Costs....................................................................................................... 45  
Collector Capital Costs.................................................................................................... 46  
Collector Total Fixed Costs ............................................................................................. 46  
Collector Break Even Point.............................................................................................. 46  
Collector Net Returns....................................................................................................... 47  
WHOLESALER:- LOCAL MARKET ........................................................................................... 48  
Volume Handled by Wholesaler....................................................................................... 48  
Local Wholesaler Product Purchase Costs...................................................................... 48  
Local Wholesaler Product Sale Price .............................................................................. 48  
Local Wholesaler Variable Costs..................................................................................... 49  
Local Wholesaler Gross Margins .................................................................................... 50  
Local Wholesaler Fixed Costs.......................................................................................... 50  
Local Wholesaler Capital Costs....................................................................................... 51  
Local Wholesaler Total Fixed Costs ................................................................................ 51  
Local Wholesaler Break Even Point ................................................................................ 51  
Local Wholesaler Net Returns.......................................................................................... 52  
COOPERATIVE ....................................................................................................................... 53  
Volume Handled by Cooperative .............................................................................................. 53  
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Cooperative Product Purchase Costs .............................................................................. 54  
Cooperative Product Sale Price....................................................................................... 55  
Cooperative Variable Costs ............................................................................................. 56  
Cooperative Gross Margins............................................................................................. 57  
Cooperative Fixed Costs .................................................................................................. 57  
Cooperative Capital Costs ............................................................................................... 58  
Cooperative Total Fixed Costs......................................................................................... 59  
Cooperative Break Even Point......................................................................................... 59  
Cooperative Net Returns .................................................................................................. 60  
WHOLESALER:- HO CHI MINH CITY ..................................................................................... 61  
Volume Handled by Wholesaler (HCMC)........................................................................ 61  
Wholesaler (HCMC) Product Purchase Costs................................................................. 61  
Wholesaler (HCMC) Product Sale Price......................................................................... 61  
Wholesaler (HCMC) Variable Costs................................................................................ 62  
Wholesaler (HCMC) Gross Margins ............................................................................... 63  
Wholesaler (HCMC) Fixed Costs .................................................................................... 63  
Wholesaler (HCMC) Capital Costs.................................................................................. 64  
Wholesaler (HCMC) Total Fixed Costs........................................................................... 64  
Wholesaler (HCMC) Break Even Point ........................................................................... 64  
Wholesaler (HCMC) Net Returns .................................................................................... 65  
RETAILER (FRUIT SHOP)........................................................................................................ 66  
Volume handled by Retailer............................................................................................. 66  
Retailer Purchase Price ................................................................................................... 66  
Retailer Product Sale Price.............................................................................................. 67  
Retailer ariable Costs....................................................................................................... 67  
Retailer Gross Margins.................................................................................................... 68  
Retailer Fixed Costs......................................................................................................... 69  
Retailer Infrastructure Costs............................................................................................ 70  
Retailer Total Fixed Costs................................................................................................ 70  
Retailer Break Even Point................................................................................................ 70  
Retailer Net Returns......................................................................................................... 70  
SECTION 2 (C):- COMPARISON OF THE SUPPLY/VALUE CHAINS AT THE FARMER LEVEL........ 71  
Traditional Supply/Value Chain (Farmer Supplies to Local Markets Only through  
Collector) ......................................................................................................................... 71  
Revenue ............................................................................................................................ 71  
Net Returns....................................................................................................................... 72  
Traditional Supply/Value Chains whre Farmers have developed new markets in HCMC  
for Extra Class and Class 1 fruit (Tet Holiday and HCMC). .......................................... 73  
Revenue ............................................................................................................................ 74  
Net Returns....................................................................................................................... 74  
New GAP and Supply/Value Chains with New markets developed in HCMC for Class 1  
fruit (Tet Holiday and HCMC)......................................................................................... 75  
Revenue ............................................................................................................................ 76  
Net Returns....................................................................................................................... 76  
New Improved GAP Management by Cat Hoa Loc Mango Group / Cooperative based  
Best Practice Standards for Metro Supply Chain ............................................................ 77  
Revenue ............................................................................................................................ 78  
Net Returns....................................................................................................................... 78  
CONCLUSIONS..................................................................................................................... 79  
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Socioeconomic status of farmers in the Mekong Delta of Vietnam.................................. 79  
Economic Comparisons of Mango Supply/Value Chians ................................................ 80  
RESOLUTIONS & CIRCULARS ISSUED OR DECREED BY THE VIETNAMESE  
GOVERNMENT REFFERED TO IN THIS DOCUMENT. ............................................. 82  
REFERENCES....................................................................................................................... 83  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
EXECUTIVE SUMMARY  
SOCIOECONOMIC ISSUES  
The average population growth rate in Vietnam in the early 1990’s was 3.5%, but it is now slowing to  
1.35%. This may be due several factors; a decreased in fertility rates and better education provided to  
the ethnic minority groups who traditionally had large families and an increase in living standards. The  
Mekong Delta population growth rate is 2%, 0.65% above the average for Vietnam.  
The implementation of “doi moi” and poverty reduction policies by the Vietnamese Government have  
made significant progress in reducing poverty. The average poverty rate in Vietnam is now 19%. The  
poverty rate in the Mekong Delta is still at 13.3% with a further 20% of households living just above the  
poverty line. This economic recession could see a change in poverty rates, people are migrating from  
the cities back to their families in the country due to a downturn in employment opportunities.  
The Mekong Delta Economic Cooperation stated that the Mekong Delta provides 90% of rice exports,  
70% of fruit production and 60% of aquatic products exported from Vietnam. Therefore, whenever  
people mention to the Mekong Delta, they usually mention its advantages. People usually consider the  
Mekong Delta region as a "rich food but poor knowledge" region. Education and training of people is  
low. For example, the number of regional students studying in the vocational schools is at the lowest  
rate. Because of its low intellectual standard, compared with the whole country, the Mekong Delta has  
not reached its full potential and regional agricultural production is unsustainable and the poverty rate  
will increase if this continues. Farmers with higher education levels appear to be able to understand  
problems and apply new technologies to solve those problems, whilst farmers with lower education  
levels implement traditional farming practices and hope the problems that they face will be solved by  
someone else.  
About 40% of the Mekong Delta is affected by acid sulphate soils (ASS). Disturbance of ASS through land  
clearance, drainage, tillage and mounding can cause acid runoffs into the aquatic and marine  
environment, either killing fish or increasing the incidence of disease in the marine population. Saline  
soils also present further constraints to agricultural development and are located primarily in the coastal  
zone. Development of new, and re-establishment of existing orchards will require soil to be either moved  
or disturbed, and a management plan will be needed to eliminate the runoff of acid or nutrients trapped in  
the soil into the environment  
Good farm and orchard design is essential to ensure any water, fertiliser, chemicals and soil runoff is  
trapped on farm. This is an essential element of GAP. This element is often overlooked or neglected  
due to the cost of re-establishing an orchard or loss of viable producing area to ensure the environment  
is protected. There are no incentives or subsidies and farmers are forced to provide these costs out  
their own pocket, reducing their viability even though there are wider social, ecological and  
environmental benefits, such as reduced incidences of contractible diseases, cleaner environment,  
fewer pollutants and a healthier life for the community from such practices.  
Farmers and other pesticide users usually ignore the risks, safety instructions and essential protective  
measures in using chemicals. Records showed that 11% of all poisonings in the country are due to  
pesticides: approximately 840 poisonings in 53 cities and provinces in 1999 in Vietnam. Surveys  
conducted by the Plant Protection Department have shown that 80% of farmers in the South of Vietnam  
consider pesticide application the essential component of the production system compared with other  
control practices. Overuse and use of incorrect chemicals will have a significant impact on obtaining  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
GAP and quality assurance for mango and pomelo in the Mekong Delta for both domestic and export  
markets.  
Environmental issues identified during consultation with farmers during this CARD Project participatory  
action learning workshops. These were:  
contamination of irrigation water (salt and grey water)  
disposal of grey water and by product contamination of waterways  
agricultural spray application methodology and practices  
type and amount of fertiliser, their application methods to reduce environmental contamination  
mixed farming methodology and cultural practices (mixed plant and animal farming practices)  
Poor agricultural practices can create serious problems in the Mekong Delta and contamination of land  
and waterways through:  
soil management and disturbance (particularly acid sulphate soils (ASS))  
incorrect water management and irrigation systems  
incorrect and constant use of agricultural chemicals (insecticides, growth regulators etc.)  
incorrect use of fertilisers (both organic and inorganic)  
This may lead to:  
increase salinity  
decrease in productivity of crops and local aquaculture  
spread of contaminants, poisoning and increase of infectious diseases with in the local  
community  
damage to the local ecology  
and loss of employment through reduced productivity  
In Vietnam, there is a significant need to develop small and medium agricultural enterprises. Many  
farmers groups are trying to develop and establish small and medium agricultural enterprises, but. these  
groups face many difficulties. One major hurdle is the borrowing of money from banks to expand or  
extend their operations. Banks prefer to lend to state owned enterprises. Due to Vietnam’s population  
being predominately rural, there is an urgent need to facilitate this development via a sustainable  
socioeconomic approach.  
Areas of significant need for developing small and medium agricultural enterprises are:  
1. Marketing and trade development  
Training on understanding supply/value chains:- They need to understand all the  
participants and the roles they play in a supply/value chain (domestic and export)  
Training on how to develop and establish a supply/value chains:- Understand the  
supply/value chain development process, then build their own supply/value chain to create  
improved value for all the chain members.  
Market analysis and development:- Understand their market; segment their market; adjust  
their product to their target market segment; develop new products.  
2. Technology areas including plant and equipment  
Information on new technologies  
Implementation on new technologies  
Access to new technological equipment to create added value  
Efficiencies in use of equipment (reduction in idle time)  
3. Business development  
Establishment of associations:- Codes of conduct, rules and membership etc.  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
Development of the business model:- Setting up the business; Structuring the business:-  
Business plan, including marketing plan and financial plan etc.  
Training and development of entrepreneurial skills  
ECONOMIC ANALYSIS  
Farmers who still use the traditional supply/value chain system receive a net return of about 6,514 VND  
(A$0.45) per kg of fruit. Farmers who implemented new GAP systems and develop new markets  
achieve net returns of about 15,423 VND (A$1.07) per kg of fruit. Farmers who joined a cooperative  
and implemented GAP and best practice, plus develop new markets achieve net returns of about  
21,793 VND (A$1.51) per kg of fruit. They receive a 3 fold increase by being in a cooperative if they  
implementing GAP systems including best practice pre- and post- harvest systems and developing new  
marketing supply/value chains to HCMC as part of the cooperative. By being a cooperative will  
substantially reduce the costs of implementing GAP systems and developing new markets in HCMC.  
These new GAP and quality assurance systems are based on:-  
New harvesting and handling methods, using lined baskets, lowering fruit from trees, no  
throwing or dropping or hand picking of fruit, clippers with bags used to harvest fruit, cutting fruit  
with long stalks, clipping fruit stalks short and allowing fruit stems to suberise eliminating sap  
burn by stopping sap dripping onto fruit  
Quality assurance manuals develop showing maturity indicators, fruit grade, size grades, and  
allowable blemishes and adhering to these standards  
Post harvest techniques such as, sanitisation, hot water dipping to eliminate disease incidence,  
grading and packaging tables  
Packing of fruit into fibreboard boxes to eliminate fruit bruising and contaminates and damage  
Placing fruit into cool rooms and using ripening rooms  
Employment of trained grades and packers to ensure quality in the packing shed a the village  
level  
Comparison of mango to rice farming in the Mekong Delta indicates that horticultural crops provide  
significantly higher returns. These returns are achieved by using new GAP systems and per- and post-  
harvest best practice methods with access to new high value domestic markets in the major cities of  
Vietnam.  
For example:- rice farmers in the Mekong Delta grown on average two rice crops per year. The average  
yield is about 4.8 tonnes per hectare with a net income of 3,652 VND per kg of rice (Berg 2002, pp.100  
and 102). Therefore, farmers of Cat Hoa Loc Mango receive a seven fold increase in net returns  
compared to rice farmers in the Mekong Delta of Vietnam.  
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BACKGROUND  
In 2003, Vietnam had about 670 000 hectares of fruit production, with an output of about 5.7 million  
tonnes. Approximately 85% of rural households grow at least one fruit crop, and 85% of fruit and  
vegetables produced are consumed domestically.  
The Vietnamese Government set a target of achieving US$1billion dollars in fruit and vegetable exports  
by the year 2010, and Vice Minister Bui Ba Bong has concluded that there are 11 fruits that have export  
potential. Of the 11 fruits listed, two of these fruits (mango and pomelo) are being used as test cases by  
this CARD Project. However in 2002 there was a significant drop in Vietnam’s exports by about 30%,  
revealing a need for an improvement in the competitiveness in the supply chains operating in Vietnam  
(VCNI, USAID Report 2003).  
Vietnam’s fruit industry is influenced by wider, global trends. Vietnam competes in the local region  
against Thailand and China for export markets (Ford et al., (2003). It is having difficulty competing with  
Thailand, suggesting that the horticultural industries require substantial development in order to be  
globally competitive. It is also difficult to compete with China and Thailand in the Vietnamese domestic  
market. For example, according to the Department of Agriculture and Rural Development, in 2008,  
domestically grown oranges in the northern province of Ha Giang were in surplus, with 8 000 tonnes  
unsold. Domestic orange prices plummeted and large quantities, of oranges were imported from China  
due to better appearance and lower price. Surpluses also occurred for pineapple in Ninh Binh Province,  
custard apples in Lang Song Province and lychee in Bac Giang Province (Viet Nam News, 2009).  
Vietnam is experiencing fierce competition due to China and Thailand having signed a Free Trade  
Agreement which cut tariffs to zero for 188 fruit and vegetables and China’s accession into the WTO  
and implementation of tougher quarantine requirements has severely affected the export of fruit and  
vegetables from Vietnam to China.  
Ford et al., (2003) analysed the competitiveness of fruit industries of Vietnam and identified poor and  
unstable product quality, no quality standards, poor post-harvest technologies and pre-harvest  
practices, lack of group or cooperative marketing structures and little information about supply, prices  
and customer needs as serious constraints to the development of fruit and vegetable industries in  
Vietnam.  
An Australian Government AusAID Collaboration for Agricultural and Rural Development (CARD)  
Program project was developed in 2005 to addresses the serious constraints through identifying key  
Vietnamese stakeholders from both the government and industry sectors. It will then engage and  
empower them by focusing on the total supply chain network, and identifying where benefits are to be  
gained. The project will fill capacity gaps and reduce major weaknesses in post-harvest technology,  
product quality and consistency, cluster organisation and supply chain management and planning.  
Under this CARD Project, two types of fruit were selected to act as case studies, these are mango and  
pomelo. Mango was selected because it is an important fruit crop with 33 000 hectares in the Mekong  
River Delta, and 9 200 hectares in Khanh Hoa central coastal province and there is 9 000 hectares of  
pomelo in the Mekong River Delta. Vietnamese farmers growing these crops within these regions were  
forming farmer’s groups or enterprises to improve their income. This CARD project has assisted these  
groups/enterprises to improve their post harvest and supply chain knowledge and demonstrated new  
and improved techniques.  
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The objectives of the CARD project 050/04 VIE “Improvement of export and domestic markets for  
Vietnamese fruit through improved post-harvest and supply chain management” are:  
Improve pre-harvest technologies to produce high quality mango (integrated pest management,  
integrated crop management, fruit fly control, maturity indices, reduced pesticide residues,  
better environmental and human health etc)  
Improve mango and pomelo post-harvest technologies (e.g. cool chain management,  
packaging, post-harvest dipping, ethylene ripening, waxing, washing and wetting agents, quality  
assurance)  
Improve quality standards and quality assurance programs for mango and pomelo. The  
approach and methodologies developed for these crops through this project will be applied to  
other fruits and vegetables.  
Mapping of current supply chains to domestic and selected export markets (Peoples Republic of  
China and Europe), with particular emphasis on determining consumer preferences and needs,  
and feeding results back to farmers.  
Assistance in the formation and management of small-scale marketing clusters.  
Greater understanding and possible improvements of the supply chain by Vietnamese fruit  
industries.  
OBJECTIVES OF THIS STUDY  
As part of the CARD Project, Milestone 9, the project has to report on the improved supply chains  
operational for selected fruits mango and pomelo. The deliverables for Milestone 9 are:  
Documentation of improved quality, quantity and value obtained by cluster groups, including  
documentation of reduction in post-harvest losses.  
Analysis of socioeconomic benefits and sustainability of project outcomes, including revenue  
streams, use of appropriate packaging and village employment  
STUDY TEAM  
Australian team members and institutions were:-  
Queensland Department of Primary Industries and Fisheries (DPI&F)  
o Mr. Robert Nissen  
University of Queensland (UQ)  
o Dr. Marlo Rankin  
o Dr. Iean Russell (Dr Russell stood in for Dr. Rankin due to Dr. Rankin being  
unavailable)  
Vietnamese team members and institutions were:-  
Southern Sub-institute of Agricultural Engineering and Post-Harvest Technology (SIAEP)  
o Mr. Nguyen Duy Duc  
o Mr. Vu Cong Khanh  
o Ms. San Tram Anh  
o Mrs. Tran Thi Kin Oanh  
o Mr. Nguyen The Binh  
o Mrs. Tran Thi Ngoc Diep  
Southern Fruit Research Institute (SOFRI)  
o Dr. Nguyen Minh Chau  
o Mr. Doan Huu Tien  
o Mr. Ta Minh Tuan  
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METHODOLOGY  
Several methods were used to collect baseline data on mango and pomelo supply chains operating in  
the Mekong River Delta of Vietnam. Relevant data and information was collected from the internet and  
reports produced by the Ministry of Agriculture and Rural Development (MARD), The Government  
Statistics Office (GSO) of Vietnam, and provincial government offices in the Mekong River Delta,  
Vietnam. Further information was obtained from the internet and published reports and databases of  
the Food and Agricultural Organisation (FAO) of the United Nations and World Bank, World Bank,  
United Nations Family Planning Association (UNFPA, Population Reference Bureau and U.S.  
Department of State).  
Investigation into the mango and pomelo supply chains operating in the Mekong delta of Vietnam were  
undertaken to establish how effectively these chains were operating. Survey sheets and process  
analyses were developed and tested by Vietnamese project staff. This was part of the training  
conducted by the Australian collaborators for the CARD Project 050/04VIE. Each supply chain was  
segmented into the various supply chain participant groups; consumers, wholesalers, collectors and  
farmers. A full investigation was carried out via interviews and surveys with the consumers,  
wholesalers, collectors and farmers along the mango and pomelo supply chains operating in the Cai Be  
District and Tien Giang Province, Bin Minh District and Vinh Long Province, Dong Thap Province, and  
Ben Tre Province and Ho Chi Minh City in Vietnam in July 2005 to May in 2006.  
Stratified random sampling and random sampling techniques were used to collect mango and pomelo  
survey data. For the mango supply chains, interviews were conducted on a 100 consumers, 560  
retailers, including 30 supermarkets, 46 high class shops, 397 retailer markets and 87 push cart and  
sidewalk shop vendors. Retailers were segmented into four groups, based on store classification type  
list. These classifications are:  
Supermarkets are more than 250 m2 in size and selling both consumer goods and fruit and  
vegetable  
High class fruit shops are retailers specialising in selling high quality fruit and vegetable  
only  
Retail markets are fruit and vegetable retailers selling fruit and vegetable in a general  
market (traditional as well as wet markets retailers)  
Push cart, sidewalk shops and travelling street vendors  
Further investigations on mango sales during both the main mango season and off season were  
undertaken. A total of 98 retailers were interviewed during the main mango season and a further 100  
retailers interviewed during the off season.  
A total of 8 wholesalers from the city of Cai Be, Tien Giang Province were interviewed and a further 10  
collectors were interviewed in the Vinh Kim and Cai Be Districts. Interviews of 299 wholesalers were  
conducted, including the wholesale markets in Ho Chi Minh City, Ton That Thuyet floating markets  
(which no longer exist), Cho Lon, Thu Duc as well as wholesale markets in the production areas of Binh  
Thuan, Bin Duong, Ben Tre, Tien Giang and Don Thap. A further survey of wholesalers was also  
carried out in 2006 and an investigation of HCMC Fruit and Vegetable Central Markets was undertaken  
on the 29th of April 2006.  
For pomelo supply chains, a total of 64 farmers were interviewed within Cam Son district, with 34 new  
mango farmers and 30 established mango farmers. In Hoa Hung district, 24 surveys were conducted  
with established farmers. All farmers interviewed produce fruit for market in January to March period. A  
further 100 farmers were interviewed while they attended mango training courses at the Agricultural  
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Extension Centre. Further information was obtained via interviews with 3 grower cooperatives/groups in  
November 2005 and April 2006.  
Stratified random sampling and random sampling techniques were used to collect pomelo survey data.  
Interviews were conducted with:  
20 Nam Roi pomelo farmers at Binh Minh District and Vinh Long Province  
9 Nam Roi pomelo traders at Binh Minh District and Vinh Long Province  
4 Nam Roi pomelo wholesalers at Cai Be District, Tien Giang Province  
1 Nam Roi pomelo exporting & processing Co. at Binh Minh District and Vinh Long Province.  
Further interviews and inspections were carried out during each CARD Project training visit to the My  
Hoa Nam Roi Pomelo Cooperative and the Cat Hoa Loc Mango Cooperative.  
Results and reports on surveys are presented in:  
Report on Investigations into mango supply chains in the Mekong Delta of Vietnam  
2005-2007  
Investigations in the pomelo supply chains in the Mekong delta in Vietnam  
and this report below.  
To demonstrate the benefit of developing new supply chians, experiments were set up for both mango  
and pomelo. Results of these experiments are published in the two reports:  
Fruit quality comparisons of three Cat Hoa Loc Mango supply chains in the Mekong River Delta  
of southern Vietnam  
Maintaining fruit quality and increasing shelf life of Nam Roi Pomelo supply chain in the Mekong  
River Delta of southern Vietnam  
This report is split into two sections. Section one provides the results of the socioeconomic status of  
Vietnam and the other section provides the results of the economic analyses of the Cat Ho Loc mango  
supply chains.  
SECTION 1 RESULTS:- SOCIOECONOMIC  
COMPONENTS OF VIETNAM  
POPULATION DEMOGRAPHICS  
DEMOGRAPHICS OF VIETNAM  
A census carried out in 2007 indicated the population at about 85.15 million people. Estimates in July  
2008 place Vietnam’s population at about 86.2 million people. Vietnam’s population growth rate of  
1.35% per year has slowed from 3.5% in the 1980’s -1990’s and has maintained a population growth  
rate from 2000 onwards. About 25.6% of the population are aged 0-14 years, 68.6% 15-64 years, and  
5.8% over 65 years. The median age is 26.9 years, males 25.8 years and female 28 years (PBF 2009,  
p.; GSO 2008, pp. 21-22; CIA World Factbook 2008, p.1). Of the 54 ethnic groups making up Vietnam’s  
population the majority are Kinh. See Table 2 below for the percentage of the major ethnic groups in  
Vietnam.  
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Table 2. Ethnic Groups of Vietnam for Year 2003.  
Ethnic Groups  
Percentage  
Kinh (Vietnamese descendents)  
85.73%  
1.97%  
1.70%  
1.52%  
1.37%  
1.13%  
1.13%  
1.11%  
Tay  
Thai  
Muong  
Khmer  
Chinese  
Nung  
Hmong  
(Source: U.S. Department of State 2009, p.1).  
There has been a significant increase in life expectancy and aging population and a decrease in fertility  
in Vietnam (see Figures 1 and 2, population pyramids 1999 and 2007). This data suggests, Vietnam’s  
population will become more mature and fertility rates are decreasing.  
Figure 1. Population pyramid, Vietnam 1st  
April 1999.  
Figure 2. Population pyramid, Vietnam 1st April  
2007.  
DEMOGRAPHICS IN THE MAJOR CITIES OF VIETNAM  
There are two major cities in Vietnam. The capital, Hanoi is in the north of Vietnam and Ho Chi Minh  
City (HCMC) in the south. Hanoi has about 6.232 million people after being officially expanded to  
include Ha Tay Province and parts of Hoa Binh Province. Ho Chi Minh City (HCMC) has about 6.602  
million people, with Haiphong having 1.711 million people. The forth largest city is in the Mekong River  
Delta, Can Tho, having a population of about 1.154 million people (GSO, 2008, pp. 22-24; GSO (b),  
2007; U.S. Department of State 2009, p.1). HCMC is Vietnam’s largest urban agglomeration covering  
over 2095 sq. km. In recent years, urbanisation has been taking place at a significant rate. The  
economic growth rate of HCMC has been 11% per year for the past decade and the annual population  
growth rate is 3.5% per year (GSO (a), 2007). The implementation of “Do Moi” in 1984 has helped to  
reduced the number of poor households in Vietnam and helped Vietnam transform from a centralised  
economy to a market economy (Nguyen, N. H., 2007).  
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DEMOGRAPHICS IN THE TWO MAJOR REGIONS OF VIETNAM  
Vietnam’s population is concentrated in these two major river deltas, the Red River and Mekong River  
Deltas. About 42.3% of the Vietnam’s population live in these deltas, with 21.6% of population living in  
the Red River Delta and 20.7% or 17.3 million people live in the Mekong River Delta. The average  
population density of Vietnam is about 240 people per sq. km, and the Mekong River Delta density is  
435 people per square kilometre. The Red River and Mekong River Deltas are 17% of the total land  
area of Vietnam (GSO, 2008, pp. 24-25; Nguyen, N. H., 2007).  
In 2006, the average number of household members was 4.2 persons. The average number of persons  
per household was higher in rural areas than urban areas. Poor households, have an average of 4.6  
persons, 1.2 times larger than the richest households (GSO, 2006, p. 23). Approximately 13 million  
people are below the poverty line based on the new Vietnamese Government poverty line of (200  
thousand VND for the rural area and 2,600 thousand VND for urban area) with approximately 28 million  
live just above the official poverty line (GSO, 2006, p.23; Oxfam, 2008, p.11).  
Population growth rates in The Mekong River Delta were steady at 1.8-2% during the 1990s, but the  
population growth rate has now increased to be above 2%. About 85% of the Mekong River Delta  
population live on agricultural practices and the region produces 90% of the rice exports and 60% of  
Vietnam’s total export turnover from fishery products (Nguyen, N. H., 2007).  
In 2004, the head of the household in the urban areas was 61% male and 39% female, and 61.4% male  
and 36.6% female in 2006. Comparing this to the rural areas in 2004 was 78.8% male and 21.2%  
female, in 2006, 79.5% male and 20.6% female. For the Mekong River Delta household heads in 2004  
were 73.6% male and 26.5% female, and 74.1% male and 25.9% female in 2006 (GSO, 2006, p.54).  
Whilst formal equality is established in the constitution and policies of Vietnamese Government,  
discrimination against women continues to exist in Vietnam and many women encounter substantial  
legal and social obstacles. Government Decree 163 (1998) institutionalised the status of the VWU, to  
which more than 50% of women belong (Bourke-Martignoni, 2001, pp. 10-11) but many women still  
encounter substantial discrimination especially in rural areas.  
DEMOGRAPHICS AND RURAL WOMEN  
In agricultural, forestry and fishery production, women participate in farming with production based on  
village/family units with all family members contributing to pre-harvest management. Women are  
involved in field operations such as harvesting operations. In Vietnam, women account for the majority  
in rural population (about 52%) and rural workforce (52-54%). Thus women make great contribution to  
rural economic growth. Being aware of women’s role, rural socioeconomic policies formulated by the  
government have significantly increased women’s role in response to their real abilities and potentials.  
Nowadays, women are considered as a significant factor contributing to rural economic development  
through increasing jobs, facilitating their access to credit, education and science and technology  
advances in production. In addition, salaries for women have increased to the same level as men's  
salaries, but more needs to be done in this area. Nowadays, there are more and more women taking  
important positions in political parties and government in Vietnam and this trend will continue.  
DEMOGRAPHICS OF CARD PROJECT TRAINERS, TRAINEES AND WORKSHOP  
ATTENDEES AND INFORMATION OBTAINED ON THE ROLE OF WOMEN IN THE  
VIETNAMESE FARMING SOCIETY  
This CARD project was aware of the need to incorporate, encourage and support the role of women as  
project and supply chain participants in the design and implementation of the project. At the farmer  
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level, there have been difficulties in past projects to encourage women to join as members of  
cooperatives, with very few represented both as general members, and even less at a management  
level.  
This is an ongoing challenge facing cooperative development in general, the patriarch of the households  
will join as members of the cooperative and the female member of the household will only attend  
meetings if her male partner is unable. However, it has been recognised that women play a variety of  
roles at all levels of both mango and pomelo supply chains and encouragement of women to be  
involved in this project was undertaken through both SIAEP and SOFRI management.  
CARD PROJECT TEAM  
The Australian CARD Project Team consisted of three males and one female, whilst the teams from,  
SOFRI were primarily made up of five males and four females, with the team from SIAEP primarily  
consisting of six males and four females. The SOFRI team was lead by experienced scientist and  
extensionist Dr Hong who is committed to the professional development of female staff. A number of  
young female scientists from both institutes have been encouraged to take on key responsibilities as  
part of the project. They have also been encouraged to identify, learn from and support the participation  
of women at all levels of the supply chains. They have shown the capacity to understand complex  
supply chain concepts and the sensitivity to recognise that building successful supply chains requires in-  
depth understanding and mediation of complex power relationships. On more than 12 occasions,  
delivery of training to Vietnamese mango and pomelo farmers was undertaken by theses female CARD  
Project members.  
Although the Australian project team has only one female member, her experience in working with both  
farming communities and research institutes in Vietnam makes her contribution to understanding and  
gender issues associated with project was particularly valuable. An in-depth understanding of cultural  
norms and ability to work within these to encourage participation of women in a non-threatening manner  
is considered critical to achieving sustainable and realistic project outcomes for women in Vietnamese  
supply chains.  
CARD PROJECT TRAINEES  
Past experience has shown that at a farmer level, women are most likely to provide input and participate  
in training when it is of a more informal nature and not overly time consuming. Small group meetings  
held in members’ homes (outside of common meal times) where female family members have been  
encouraged to participate have proven to be a successful technique in drawing out opinions and gaining  
valuable insight into the role they play as multi-task managers both in the home and as part of the  
agricultural production activities. Many farm visits were made by the CARD Project staff for information  
gathering and as well as conducting informal training sessions with local farmers. During these visits  
the household head usually attended but after some time the women of the local households did join in  
the informal workshops and information gathering sessions. This project found that:-  
ƒ
ƒ
ƒ
bookkeeping is often a role taken on by women at a farm level and many have a good  
understanding of fluctuating input prices, market prices and impact on overall farm profitability.  
in many instances, the women of the house hold had higher levels of education and shared  
equally in the decision making with their husbands  
women performed many roles in the household, undertaking the cooking, caring for household  
members, conducting the everyday chores that keeping the household functioning as well as  
being heavily involved in the field work, such as harvesting and post harvest activities and  
selling of the fruit  
This information obtained from the women is particularly valuable when attempting to analyse existing  
supply chains in terms of resource flows.  
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This project found that women are heavily involved in the post-harvest marketing and sale of mango  
and pomelo fruit with six in every seven people a women. Many husbands, when being interviewed by  
the CARD Project team on supply chain matters, had to refer to their wives to obtain answers for the  
interviewers. Women often represent the majority, 85% of collectors, wholesalers, traders and retailers  
in both local and HCMC markets are women. Valuable market information and insights were gained  
through this visit to collectors, wholesalers and retailers and was incorporated into the analysis of  
existing supply chains.  
WORKSHOPS THIS CARD PROJECT CONDUCTED  
A series of ten major workshops were conducted by this CARD Project. Each workshop was broken  
down into a series of smaller workshops to enable participants to understand concepts and participate  
in adult action learning processes. Workshops were held across the Mekong River Delta in Tien Giang,  
Vinh Long, Dong Thap Province, at My Tho, Cai Be, Vinh Long, and South Central Cost (Khanh Hoa  
Province) in Vietnam with about 25% women as attendees. These workshops were:-  
Introduction to Value Supply Chains  
Principles of supply chains, developing supply chains, supply chain analysis, developing  
strategic plans and action plans  
Developing new improved horticultural supply chains  
Mango physiology and post harvest technology, mango harvesting and field handling and  
socioeconomic analysis and development  
Supply chain management of fresh product quality and food safety  
Marketing and focus Groups Training  
Designing Training Workshops for mango and pomelo growers in Vietnam  
Socioeconomic analysis of mango and pomelo supply chains in Vietnam  
Integrated Pest and Disease Management (IPDM) system for Mango and Pomelo  
DEPENDENCY RATES  
The total dependency ratio indicates the relationship of age, fertility and mortality levels with the labour  
force. The total dependency ratio of Vietnam has significantly decreased from 89 dependents below 15  
and over 60 per 100 working persons to 54 in 2007 (GSO, 2008, p. 25). The reduction in child  
dependency could be attributed to family planning programs implemented in Vietnam. See Table 2  
Dependency ratio in the period 1979-2007 below.  
Table 2. Vietnams Dependency Ratio in the period 1979-2007.  
Descriptors  
Census  
1979  
84  
Census  
1989  
73  
Census  
1999  
56  
Census  
2007  
39  
Child dependency ratio (0-14)  
Old dependency ratio (60+  
14  
13  
14  
15  
Total dependency ratio  
(GSO, 2008)  
98  
86  
70  
54  
FERTILITY RATES  
Vietnam has a lower fertility rate, (2.07 children per women) than most Asian countries, (2.3 children per  
women). Fertility rates for the Mekong River Delta, (1.74 children per woman), are lower than the  
replacement fertility rate. Infant mortality rate (IMR) for Vietnam is 16 per thousand and crude death  
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rate (CRD) is 5.3 per thousand, but in the Mekong River Delta is the IRM is 11 per thousand (GSO,  
2008, p. 26-28).  
MORTALITY RATES  
In Vietnam about 85.4 % of deaths were due to disease, 8% from accidents and 6.6% from other  
reasons. Traffic accident deaths are 5 times higher than from work accidents (4.7% vs. 1%). Traffic  
accidents deaths in both urban and rural are 2 times higher for males than females, 10.5% vs. 4.5%  
respectively (GSO, 2008, p. 35).  
How many of these deaths and a decrease infertility is due to farming practices, and the use of  
agricultural products, e.g. chemicals?  
HEALTH AND HEALTH CARE  
In the VHLSS 2006, 49% of respondents indicated they had been sick in the last 12 months with 35%  
having to be medically treated. As normally expected, rich households had the highest number of  
treatments. However, rural people had less opportunity to receive medical examination and treatment in  
state hospitals than urban people. Only 74% of rural people sought medical treatment compared to  
89% in urban areas.  
Only 1/3 of health centres applied sterilising activities with more than 60% of commune health centres  
having difficulties in sterilising and 45% lacking the necessary equipment (GSO, 2006). In 2006, 9,013  
communes with health stations accounting for 99.3% of the communes in Vietnam and 36.9% had  
private health care establishments with the highest being in the Mekong River Delta (73.5%), but village  
in care health in the Mekong Delta is the lowest at 73%.6 (GSO, 2007, pp. 52-53).  
Only 50% of the people receiving medical treatment had medical insurance with a rate of 71% in the  
poor households having insurance and only 61% in rich households. In the Mekong Rive Delta  
diarrhoea has now been reduced but dengue fever still remains a significant problem. During the  
flooding season in 2000, diarrhoea, amoebic dysentery, typhoid, dengue fever increased suddenly.  
More than half of female population suffered gynaecological disease (MARD/UNDP, 2006). The  
Government of Vietnam put a priority in supporting the healthcare system in Mekong River Delta.  
People can access health facilities, take their children to be vaccinated and health care service often  
pay them a visit at their homes, but only 22% of poor household in Mekong River Delta have at least  
one person with health insurance cards compared to the average 29% of poor households for the whole  
country (UNDP/AUSAID, 2004). Rainfall events such as cyclones/typhoons, rain depressions and  
storms often limit many rural households in the Mekong Delta Region from accessing medical help, due  
to significant flooding.  
SMOKING  
The amount of the aged population (15 years and above) who smoked was 19.5%. Mostly men smoked  
and with about 1% of women smoking. The Mekong River Delta had the highest smoking rate  
compared to the Red River Delta which had the lowest rate. Most people started to smoke form the age  
of 17 to 20 GSO, 2006). The total cost of inpatient health care caused by smoking in Vietnam reached  
at least 1 161 829 million Vietnamese dollars ($VN) (or $US77.5 million) in 2005. This represents about  
0.22% of Vietnam gross domestic product (GDP) and 4.3% of total healthcare expenditure.  
It is well known that smoking causes significant health problems, but further complications arise when  
working with agricultural products. When handling or working with agricultural chemicals risks are:  
fire and explosion when handling chemicals  
self contamination  
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o inhaling chemicals fumes  
o ingestion of chemicals by handling chemicals and cigarettes without protective measures  
Furthermore, the risk to maintaining a quality assurance program is extreme, due to the product being  
contaminated via  
discarded butts, which can carry diseases and contaminates  
ash from burnt tobacco contaminating the product  
and possibility of fruit to ripening prematurely due to increased ethylene levels  
Therefore, smoking is banned when harvesting and packing fruit in the field, handling chemicals and  
from packing sheds, ripening rooms and cool rooms and storage rooms. Control of smoking habits of  
the rural poor, employed in packing houses and development of quality assurance program and  
development of field/orchard best practice methods for Good Agricultural Practices (GAP) will require a  
substantial education program in The Mekong Delta of Vietnam.  
EDUCATION  
Vietnamese households spend on average 1.211 million VND per household member for schooling, a  
47% increase when compare to the rates in 2004. About 92% of household members went to public  
schools. About 43% of all household members attend extra classes, with 68% being held at schools  
and 28% at teacher’s houses (GSO, 2006 pp. 24-25). School fees, expenditure for extra classes and  
other educational expenditure accounted for large proportion of this educational expenditure for  
household members. Education expenditure (2.096 million VND per person) increased by 2.3 times in  
urban areas compared to rural areas. The rate of pupils with good educational grades was 2.5 times  
higher in urban areas than rural areas and 5 times greater in rich households compared to poor  
households (GSO, 2006. pp. 24-25). Difficulties encountered at schools and varied from rural to urban  
and between different income groups. These difficulties were:  
Lack of equipment  
Quality of school buildings  
Quality of teachers  
In many poor rural households children have to leave school to look for work to support their family, but  
rural education has been significantly improved since 1944 and 2001 when surveys were last  
conducted. In 2006 88.3% of communes had kindergarten, 99.3% had primary schools and 90.8%  
lower secondary schools, with 10.8% having upper secondary schools. Very low percentage of  
nurseries and kindergartens for some provinces still exist and these are Cao Bang, Lai Chau, Dak  
Nong, Tien Giang, Kien Giang and Ca Mau.  
Vietnam’s, ratio in terms of primary education per commune is 1.44 and 2.14 in the Mekong River Delta.  
The building of permanent and semi-permanent schools is 29.8% and 63% respectively. At different  
schooling levels permanent and semi permanent schools are shown in Table 3 below.  
Table 3. Types of schools and levels in Vietnam in 2006.  
School Levels  
Nurseries and kindergartens  
Primary  
Permanent Schools  
52.2%  
Semi-Permanent Schools  
46.3%  
63.7  
30.8%  
Lowe secondary  
Upper secondary  
44.4%  
87.2%  
51.5%  
11.7%  
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In the Mekon River Delta the technical professional and political theory qualification of key commune  
officers obtained at a secondary vocational level or higher was 87.6% compared to the lowest in the  
North West at 67.6% (GSO, 2007). However there are still very wide gaps in key commune officer’s  
qualifications and working conditions in different provinces in Vietnam. Offices connects by telephone  
line is 76.5% and computers connected to the internet is 1.3% (GSO (a), 2007).  
The Law on Education Article 9 in 1998, provides women and girls shall have equal access to  
educational opportunities. Females are currently attending primary and secondary schools in numbers  
almost equivalent to those of boys, but there is still a strong gender disparity in the number of women  
undertaking tertiary education (Bourke-Martignoni, 2001, pp. 11-12).  
Today’s farmers need to be well educated, because they must implement quality assurance programs.  
All quality assurance programs have product traceability as one of their core elements. Hence their  
ability to keep records of fertiliser and chemical applications, read chemical labels and calculate  
chemical application rates to ensure the product meets food safety standards is at the heart of these  
quality assurance programs. Farmers who are capable of ensuring product safety for consumers is  
being demanded by today’s retailers.  
The Mekong Delta Economic Cooperation stated that the Mekong Delta provides 90% of rice exports,  
70% of fruit production and 60% of aquatic products exported from Vietnam. Therefore, whenever  
people mention to the Mekong Delta, they usually mention its advantages. However, people consider  
the Mekong Delta region as a "rich food but the poor knowledge" region, a “depression” of education  
and training. This is because of its low intellectual standard compared with the whole country. For  
example, the number of regional students studying in the vocational schools is at the lowest rate and  
regional agricultural production is unsustainable and poverty rate will increase if this continues (MDEC,  
2008, p.1).  
EDUCATION LEVELS AND EFFECTS ON CARD PROJECT  
Whilst forming small farmers into groups has creating greater economies of scale and reduced the  
number of participants in the supply/value chain, the benefits to individual farmers in the group appear  
to be tightly linked to education levels. Farmers with higher education levels appear better to  
understand problems and apply new technology to solve those problems. Other less educated farmers  
appear reluctant to change and favour traditional methods.  
Due to the different education levels of the farmers in The Mekong Delta, this CARD Project used adult  
training methodologies such as participatory action learning (PAL) methods and farmer training farmer  
(FTF). This was achieved through workshops and in-field practical learning classes (in-field farmer  
schools). Using these methods enabled farmers with higher levels of education to help farmers with  
lower levels of education. This method does have some small disadvantages:- the higher educated,  
more progressive farmers cannot move forward as quickly as they would like, because the higher  
educated farmers are helping the lower educated farmers understand ides and concepts. This method  
enables the lower educated farmers to move forward at a faster pace than they would otherwise do so.  
This method also moves the whole group forward at a faster pace.  
To overcome the higher educated farmers being slowed down, training manuals and information,  
included more complex information which these higher educated farmers could understand and use.  
The information provided also had to have a clear and logical sequence to build knowledge, be easily  
understood and have learning outcomes, catering for the lowest educated farmer to the higher educated  
farmer.  
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To build knowledge, capacity and educate trainers, this CARD project also used train the trainer (TT)  
methodologies. The information provided to these trainers was at a higher level than provided to the  
farmers. Therefore reference manuals were also provided to the trainers. This approach enabled the  
education levels of both the trainers and farmers to be increased, achieving impacts and changes in  
practices at the trainer and farmer levels.  
The training followed a logical sequence from understanding what supply/value chains are, providing  
technical inputs which will have the greatest impact on the supply/value chain:-  
Understanding supply/value chains training for trainers and farmers  
Introduction to value supply/value chains  
Principles of supply/value chains  
Analysis of supply/value chains  
Developing strategic plans and action plans for supply/value chains  
Developing new improved horticultural supply/value chains  
Technical input training for trainers and farmers  
Mango physiology and post harvest technology, mango harvesting and field handling and  
socioeconomic analysis and development  
Supply/value chain management of fresh product quality and food safety  
Integrated Pest and Disease Management (IPDM) system for Mango and Pomelo  
Training for the trainers  
Marketing and focus groups training  
Designing training workshops for mango and pomelo growers in Vietnam  
Socioeconomic analysis of mango and pomelo supply chains in Vietnam  
During this CARD Project we found that many Vietnamese farmers have insufficient knowledge and  
information on what chemical to apply for a pest or disease and what is the most economical way to  
apply the chemical? Also it has been observed that many farmers and labours do not take adequate  
protection from pesticides.  
There is a need to educate farmers in the correct handling of pesticides and fungicides and the possible  
risks to their health if not handled correctly. Many farmers are not aware of chemical overuse and the  
problems of pest and disease resistance that can be created by chemical overuse.  
Most farmers are aware of consumer suspicions of chemicals used to grown fruit and vegetables and  
the move by consumers towards a clean green product and organic grown products.  
Therefore, this CARD project provided training to improve farmer GAP practices and workshops on  
IPM/IDM for mango and pomelo were held in October 2007.  
POST AND COMMUNICATION NETWORKS  
In Vietnam, approximately 17.7% of all communes across the country have access to the internet at the  
post-culture house. The South East of the Vietnam has the highest rate with 49.1% followed by the  
Mekong River Delta at 43.6% with the lowest in the North West at 2.9%. The number of households  
with telephone (fixed or mobile) has reached 2.924 million. This equates to every 4.7 households  
having a telephone. About 75.4% of communes in Vietnam have local radio systems linked to villages,  
with 9.7% of communes having libraries (GSO (a), 2007).  
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AGRICULTURAL NETWORKS  
For veterinary networks in provinces and localities, the agricultural, forestry and fishery extension  
systems in the communes and villages show there are 57 not yet in place or, if in place are not  
sufficient. The are in Hai Duong, Da Nang, Quang Tri, Quang Ngai, Daklak, Binh Duong, Ben Tre and  
Soc Trang Provinces (GSO (a), 2007).  
BANKING  
MARKETPLACE  
AND  
AGRO-FORESTRY  
PROCESSING FACILITIES.  
BANKING  
The commercial bank and people credit fund systems has been established in rural areas to allow  
people access to loans and credit as an investment for production and business activities. In 2006,  
about 12.1% of the total number of communes across Vietnam had bank branches and 10.1% had  
peoples credit funds established. Under the Vietnamese Government National Target Program on  
poverty reduction and job creation, Program 135, has developed helped a number of communes with  
banks/bank branches or people’s credit funds, but this is still very low at 4.3% and 2.4% respectively  
(GSO (a), 2007).  
In late 2007, the abundance of capital inflows created strong pressure for the dong to appreciate,  
affecting export competitiveness. Resisting that pressure meant injecting massive amounts of liquidity  
into the economy. The result was a boom in banking credit, rising inflation, and an asset price bubble.  
In late 2008 and early 2009, export growth is bound to slow, capital inflows will decline, and the  
investment rate will fall. As economic activity slows and jobs are lost, real income growth will weaken,  
and the poor are likely to suffer the most.  
SOCIAL POLICIES IN RURAL AREAS  
In Vietnam, under Program 135, a number of specific projects have been initiated on:  
credit project for poor households to access to credits for developing their production and  
business activities;  
instructing poor people on the way of doing business, and providing agricultural, forestry and  
fishery extension services;  
developing poverty reduction models in special areas;  
constructing infrastructure in poor communes;  
support to production and livelihood improvement in poor communes;  
training and capacity strengthening for staff involved in poverty reduction activities and staff in  
poor communes;  
providing loans to small scale projects for creating jobs through the National Fund for  
Employment Support;  
supporting education in mountainous areas, ethnic minority areas and disadvantaged areas;  
strengthening physical facilities in schools.  
Rural markets play a very important role in Vietnam’s economy. These markets are commodity based  
and promote the exchange of goods amongst regions with in the locality or province. In Vietnam, about  
58% of the countries communes have market places, with the Mekong River Delta having 72.6% market  
places. These have been developed under Vietnamese government policies to facilitate the sale of  
produce by farmers in Vietnam.  
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LABOUR  
Employment is the critical factor affecting living standards in Vietnam. While the economically active  
population (15 to 60 for men and 55 for women) tended to increase in recent years there was decrease  
in the 15-19 age groups (GSO, 2006). This is possibly due to more students staying at school.  
However, poor households still had higher rates of economically active persons in this age group, due to  
the fact that they had less schooling and rural area were significantly larger than urban areas. This is  
basically due to the fact they have to start work early in life.  
A change in the occupation structure in Vietnam is now occurring with more non-agricultural, forestry  
and fishery occupations reaching 28.4% of the population in 2006. The average weekly hours worked  
was 33 hours one hour more than in 2004. Under-employment in rural areas is still a major factor with  
13 less work-hours per week than in urban areas. The average work-hours for the rich households was  
15 hours more than poor households and 15 hours longer than work-hours in 2004 (GSO, 2006).  
These differences in work-hours have widened the gap between the rich and poor. Households of the  
rural and poor areas had more children but fewer labourers than households of urban and rich areas.  
Vietnam’s industrialization is characterized by an increasing a number of enterprises around cities, and  
the creation of dynamic economic zones in different parts of the country. In contrast, rural areas have  
been less dynamic and now are confronting the imbalance between human resources and land as a  
consequence of high population growth in past decades. Farmers in rural areas are now unemployed  
or underemployed, and the living standards of these people are quite low.  
In Vietnam, a household is the major production unit in agricultural, forestry and fishery production.  
Production from each household in terms of land or employee is not large when compared to other semi  
developed countries. The average of one agricultural, forestry and fishery unit (household) uses about  
2.3 employees, and each household has 2.3 employees. The average number of employees used by  
an agricultural, forestry or enterprise, cooperative or by a farm is respectively 122, 17.4 and 3.4  
employees. Agricultural, forestry and fishery land used by an agriculture, forestry and fishery unit was  
1.5 ha in 2006. This is an increased by 1.4% compared with that in 2001; of which, an enterprise would  
use 1.727 ha, a cooperative – 6.2ha, a farm – 4.5ha and household – 0.9ha (GSO (a), 2007, pp. 71-72).  
RURAL LABOUR FORCE  
The total number of rural households in 2006 was 13.77 million, an increase of 0.7 million since 2001.  
In 2006, 9.78million households were involved in agriculture, forestry and fishery decreased from 81%  
to 71.1%, and the number of industry and service households increased from 5.8% to 10.2% and  
construction households from 10.6% to 14.9%, see Figures 3 and 4 (GSO (a), 2007). With the fast  
change in rural household structure, construction and services rural households are now 25% of the  
total number of rural households in Vietnam. Only 4 regions in Vietnam are greater than 25% and these  
are South East region 42.9%, Red River Delta 33.4%, South Central Coast 26.1% and The Mekong  
River Delta 25.1% (GSO (a), 2007). With the world economic crisis occurring in 2008 and continuing  
into 2009, loss of urban jobs will turn this trend around and there will possibly be a significant increase  
in the number of people living in rural households returning to agriculture as a way of life.  
The state encourages farm owners to expand their production scale, creating employment opportunities  
for rural labours, recruiting labours from farm households and employing the underemployed, female  
labourers and poor who have no land or who lack land for production. Farm owners have the right to  
hire unlimited quantity of labour. Duration, amount of work, wages and forms of payment are agreed  
between labourers and farm owners as set out by the legal frame work on labour.  
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March 2009.  
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Farmers have to pay labourers an additional fee (equivalent to 15% of the agreed wages for social  
insurance and 2%for health insurance); they have to equip labourers with safety clothing and take  
responsibility for labourers should they face risk, accidents or sickness for the duration of the contract  
(Circular No.23/LD-TBXH, 2000) (Man, P.S., 2006, pp.89-90).  
Types of rural households in Vietnam in year 2006  
Agricultural, forestry, fishery households  
Industal, and construction households  
Service households  
Other households  
4%  
10%  
15%  
71%  
Figure 3. Types of rural households in Vietnam in 2006.  
By R.J. Nissen et.al.  
March 2009.  
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Types of rural households in Vietnam in 2001  
Agricultural, forestry, fishery households  
Industal, and construction households  
Service households  
Other households  
3%  
11%  
6%  
80%  
Figure 4. Types of rural households in Vietnam in 2001.  
(Source GSO (a), 2007)  
While unemployment may be on the rise in Vietnam, women continue to perform the bulk of  
unremunerated domestic and agricultural work. Rural women in Vietnam work an average of 12.5 hours  
per day and single working women work an average of 16 hours per day. As a direct consequence of  
long work hours, women in Vietnam tend to shoulder a double or triple role (work inside the home,  
caring for children and work outside the home). They have very limited time available for relaxation,  
education and training, social, cultural or recreational activities (Bourke-Martignoni, 2001, p.12).  
ECONOMY  
Global integration has been Vietnam’s ticket to prosperity. Linking domestic prices to international  
markets has allowed Vietnamese farmers to get better returns for their products and emerge from  
poverty. In Vietnam the poverty levels have decreased from about 58% in 1993 to about 18% in 2006  
where 43 million people came out of poverty (World Bank, 2008, p.42). Opening Vietnam to Foreign  
Direct Investment (FDI) inflows resulted in the creation of wage employment, making it possible for  
Vietnam to absorb millions of entrants into its labour market. FDI has risen significantly since 1988.  
Exports (Table 4) have been the main driver of economic growth, as domestic enterprises connected  
increasingly to international markets. Opening the services sector to new entry brought competition into  
activities previously dominated by large state-owned enterprises (SOEs) and state-owned commercial  
banks (SOCBs), but this has resulted in substantial efficiency gains. Vietnam has been one of the  
fastest growing economies in the world with a gross domestic product (GDP) annual growth of about 8%  
from 1990 -1997 and 6.5% from 1998-2003 and 8% for the period 2004-2007 but has dropped in 2008  
to 6.2% (GSO (c), 2007,p.71; U.S. Department of State, 2009. p. 6). The growth in GDP by sector has  
been significant for Vietnam in recent years. In 2007, the global uncertainty in financial markets caused  
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an increase in food prices, especially for rice. Also the price of oil has tripled since 2003 and price for  
non oil commodities have doubled (World Bank (a), 2008 p.1) but Vietnam is a major exporter of food  
products and could benefit from higher food prices, especially rice. Macroeconomic conditions have  
now become increasingly difficult with growth forecasts lower than previously predicted by the World  
Bank in 2008, see Table 4 (World Bank (a), 2008 p.1).  
Table 4. World Bank (2008) and International Monetary Fund (IMF) 2008 International Economic  
Environment.  
2007  
2008  
2009  
Gross Domestic Product (GDP) growth  
(percent)  
World  
3.6  
2.5  
2.2  
2.7  
2.1  
7.9  
8.7  
7.5  
71.1  
15.8  
2.4 -2.8  
1.1 -1.6  
0.5 -1.4  
1.3 -1.7  
1.3 -1.7  
6.7  
7.3  
4.0 -5.0  
108.1  
2.8 -3.2  
1.4 -2.0  
1.0 -2.0  
1.5 -1.9  
1.6 -2.0  
6.6  
7.4  
5.0 -6.0  
105.5  
High income OECD  
The United States  
Euro zone  
Japan  
Emerging and developing economies  
East Asia  
World trade (percent change)  
Oil price (US$/barrel)  
Non-oil commodity prices (percent change)  
10.0 – 12.0  
-10.0 – 0  
The population of Vietnam is predominately rural, about 73% of the population living in rural areas,  
making 94% of all the poor people. The average Vietnamese household produces food worth 15 400  
000 VND and consumes 10 200 000 VND each year. Approximately, 27% of poor and 18% of non-poor  
households in the Mekong River Delta are net sellers of rice despite the Mekong River Delta being the  
“rice bowl” of Vietnam. In the Mekong River Delta, 38% of poor and 50% non-poor households are net  
sellers of food. Analysis by World Bank in 2007 showed that the generalisations above are not always  
true. Urban households are net purchasers of food, buying 8.300 000 VND worth of food, but 12% and  
27% of poor urban households are net seller of food compared this to rural households, where 46% of  
rural households net food purchases. Despite improvement in overall welfare in Vietnam 51% of all  
households are worse off.  
ECONOMIC EFFECTS ON CARD PROJECT  
During this CARD Project we found there is a significant need to develop small and medium agricultural  
enterprises. In Vietnam, many farmers groups are trying to develop and establish small and medium  
agricultural enterprises. These groups face many difficulties. One major hurdle is borrowing money  
from banks to expand or extend their operations. Banks prefer to lend to state owned enterprises. Due  
to Vietnam’s population being predominately rural there is an urgent need to facilitate this development  
via a sustainable socioeconomic approach. Areas of significant need for developing small and medium  
agricultural enterprises are:  
4. Marketing and trade development  
Training on understanding supply/value chains:- They need to understand all the  
participants and the roles they play in a supply/value chain (domestic and export)  
By R.J. Nissen et.al.  
March 2009.  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
Training on how to develop and establish a supply/value chains:- Understand the  
supply/value chain development process, then build their own supply/value chain to create  
improved value for all the chain members.  
Market analysis and development:- Understand their market; segment their market; adjust  
their product to their target market segment; develop new products.  
5. Technology areas including plant and equipment  
Information on new technologies  
Implementation on new technologies  
Access to new technological equipment to add value  
Efficiencies in use of equipment (reduction in idle time)  
6. Business development  
Establishment of associations:- Codes of conduct, rules and membership etc.  
Development of the business model:- Setting up the business; Structuring the business:-  
Business plan, including marketing plan and financial plan etc.  
Training and development of entrepreneurial skills  
TAXES  
The Vietnamese government does not collect land use fees for land that is allocated within the quota to  
a household, individual and farm, as long as the land is used for agricultural, forestry and aquaculture  
production. The Land law 2003 stipulates that the state may collect land fees for any land area in  
excess of a quota and land leased by the state. Also farm owners are exempt from land use fees, land  
lease fees and agricultural use taxes. This is where they use bare hillsides, fallow land or land located  
in areas with no previous investment for agricultural, forestry and aquaculture production purposes  
(Decision No.3CP 2000, Circular No.82/BTC, 2000). Farms and farmers are also considered by the  
State to be exempt from agricultural land use taxes in any case where they face risk from market and  
price (Resolution no.9/CP, 2000) (Man, P.S. 2007, pp.86-87).  
In Vietnam, the state exempts farms from income taxes with the maximum permitted period stipulated in  
regulations. It reduces income taxes to minimum levels for farms with stable production and business,  
or for high value of goods in order to promote the development of the farm economy. Also provided for  
are:  
commercial tax exemptions for agricultural products  
no water resource taxes for irrigation works, or for using surface water and underground water  
within farm boundaries (Decision No.3/CP, 2000)  
and no tax on exploitation of natural resources for some industrial crops, such as crops used in  
the paper industry, wood, and some other special crops (Resolution No.9/CP, 2000) (Man, P.S.  
2006, p.87).  
INCOME  
In 2006, the monthly average income per capita for Vietnam was 363 thousand VND an increase of  
31.4% compared to 2004. But the real increase in income of the period 2004 to 2006 was 6.2%, lower  
than the real income of the period 2002 -2004 of 10.7% (GSO, 2006. pp 29-30). In 2006, there was an  
increase in the minimum salary level (social wage). During 2006 there was an increase in:  
production  
plant output (mainly based on an increase in rice output)  
agricultural and fisheries prices (rice, coffee, rubber, cashew, pork (live weight), shrimp and fish.  
Income increased in both urban and rural areas to 1,058 thousand VND and 506 thousand VND  
respectively. Up by 29.8% and 33.8% respectively compared to 2004 monthly income levels. The  
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March 2009.  
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fastest growth occurred in the urban areas. Monthly income in the poor households was 184 thousand  
VND compared to rich households at 1,542 thousand VND per month (GSO, 2006, pp 29-30). As a  
result of the per capita increase in income has lifted the living standards of the poor and decreased the  
number of poor households.  
The Vietnamese Government indicated that the percentage of poor households according to the new  
poverty line of 200 thousand VND for the rural area and 2600 thousand VND for urban area was 15.5%.  
The poverty level based on the new poverty line for the Mekong River Delta was 13% of the population  
(GSO, 2006, pp 29-30).  
Table 4. The percentage of poor households of 2004 and 2006 by the new poverty line of the  
Vietnamese Government for the period 2006-2010 (%).  
Description  
Year 2004 (%)  
Year 2006 (%)  
Country  
Vietnam  
18.1  
15.5  
Urban vs. Rural  
Urban  
Rural  
8.6  
21.2  
7.7  
17  
By Region  
Red River Delta  
North East  
North West  
North Central Coast  
South Central Coast  
Central Highlands  
South East  
12.9  
23.2  
46.1  
29.4  
21.3  
29.2  
6.1  
10.1  
22.2  
39.4  
26.6  
17.2  
24.0  
4.6  
Mekong River Delta  
(Source GSO, 2006. pp. 31)  
15.3  
13.0  
Based on the new Vietnamese Government poverty line, about 13 million people of the total population  
are below the poverty line with a further 28 million people living just above the official poverty line (GSO,  
2006; Oxfam, 2008)  
Many of the poor households are already indebted, and an impact by a natural disaster would cause  
significant number of households to slip deeper into to debt. Vietnam has on average about 6 to 8  
natural disasters per year and these poor households are amongst the most vulnerable of a community.  
In such cases, coping strategies of these households often include:  
Borrowing from family and friends;  
Borrowing money privately at high interest;  
Borrowing rice at a set interest rent, per season, to be paid after the next harvest;  
Collecting minor natural products,  
Seasonal migration to work in cities or farms as physical labourers; and  
Working locally as day labourers.  
By R.J. Nissen et.al.  
March 2009.  
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CARD Project 050/04 VIE Improvement of Vietnamese fruit through improved post-harvest and supply chain management  
Natural disasters place these households in even greater debt with no or very little chance of ever  
becoming debt free.  
EXPENDITURE  
The average monthly expenditure of 511 thousand VND for the whole of Vietnam was an increase of  
28.9% compared to 2004. Average daily expenditure was 460 thousand VND and increase of 27.9%  
compared to 2004. Households living in urban areas spend approximately 2.5 more than those living in  
rural areas. The average monthly per capita expenditure in rural areas was 359 thousand VND and  
increase of 27%; in urban areas: 738 thousand VND an increase of 24% compared to 2004 (GSO, 2006  
p.31-33).  
Rural households dedicate a large share of their expenditure to food, 50.2% compared to 43.9% for  
urban households.  
Table 5. Share of eating, drinking and smoking consumption expenditure in consumption  
expenditure for living (%).  
Description  
Year 2002  
Year 2004  
Year 2006  
Country  
Vietnam  
56.7  
53.5  
52.8  
Urban vs. Rural  
Urban  
Rural  
51.6  
60.0  
48.9  
56.7  
48.2  
56.2  
By Region  
Red River Delta  
North East  
North West  
North Central Coast  
South Central Coast  
Central Highlands  
South East  
Mekong River Delta  
By Income levels  
20% poorest households  
53.8  
61.2  
64.2  
58.3  
56.4  
58.6  
52.7  
60.5  
51.1  
58.2  
60.0  
56.3  
53.1  
51.3  
50.4  
56.7  
51.5  
57  
60.2  
55.1  
54.4  
52.2  
48  
56.2  
70.1  
49.6  
66.5  
46.9  
65.2  
45.8  
20% richest households  
(Source GSO, 2006. pp. 31)  
RURAL INFRASTRUCTURE  
ELECTRICITY  
In 2006, only 5.8% of rural households were without electricity, a 41% increase since 1994. In 2006  
98.9% of communes and 92.4% of villages could access electricity of which 87% of villages had access  
to the national power grid. There are 6 provinces and cities (Ho Chi Minh City, Da Nang City, Ninh  
Thuan, Tay Ninh, Binh Duong and Tien Giang Province) the have 100% of villages with access to  
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March 2009.  
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electricity. Nevertheless, in some regions and provinces the number of communes, villages and  
households having access to power is still very low and these are located mainly in the northern and  
central Vietnam.  
ROADS  
The Mekong River Delta region has the lowest percentage of roads for cars. About 83.2% of communes  
have all year round accessible car-roads, which is the lowest in the country. In spite of the remarkable  
improvements in rural roads, many roads are causing difficulties to production and peoples lives. The  
percentages of communes without car roads connecting to the peoples committee offices are high in  
some provinces of Vietnam. In the Mekong River Delta the percentage of communes without roads in  
the provinces connecting to the people committee offices are:  
Ca Mau  
74.1%  
26.4%  
29.2%  
25%  
Soc Trang  
Bac Lieu  
Kien Gaing  
Can Tho  
27.3%  
Lack of sealed or maintained roads is causing extreme difficulties for many farming communes, villages  
and households in the Mekong River Delta of Vietnam. By trying to transport by road highly perishable  
produce, for example:- mango, rambutan and milk fruit etc., to market without damaging the fruit is  
impossible. A high proportion of fruit are damaged (>10% to 30%) due to the rough conditions of the  
roads and the use of traditional packaging methods that cannot protect the fruit adequately from rub and  
vibration damage, pressure marks, bruising and contaminants such as dirt, dust, exhaust fumes and  
splashing with un-sanitary water and other liquids or solid contaminants such as fertilisers when being  
transported.  
CLIMATE  
The Mekong River Delta has a tropical climate located within a tropical monsoon climate zone with one  
rainy season with an average humidity of 75%. There are two distinct seasons in one year. The rainy  
season begins in May and ends in late November, with an average rainfall of about 1,800mm annually.  
The dry season lasts from December to April. The low lands are usually flooded for two to six months  
with water levels ranging between 0.3 to 3 meters in depth depending upon location and yearly rainfall  
events (Nguyen, N. H., 2007).  
The average temperature is 28°C (82°F), the highest temperature sometimes reaches 39°C (102°F)  
around noon in late April, while the lowest may fall below 16°C (61°F) in the early mornings of late  
December .  
Vietnam ranks eight in the ten most venerable countries in East Asia to weather extremes (World Bank,  
2008). According to Nguyen, N. H., 2007, 70% of the Vietnamese’s live in and on agricultural areas  
where the major cash crop is rice farming. The major problems Mekong River Delta is facing are  
increasing frequency and magnitude of flooding, sea water intrusion with high tide, contaminated soil,  
sea level rise and seasonal tropical storms.  
LAND  
Vietnam is located in the south-eastern extremity of the Indochinese peninsula. Vietnam is about  
331,688 square kilometres in size. The distance from north-to-south is about 1,650 kilometres.  
Vietnam is about 50 kilometres wide at the narrowest point. Vietnam’s coastline is about 3,260  
By R.J. Nissen et.al.  
March 2009.  
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