Is contract farming better for Vietnamese farmers that a free market? : a case study in An Giang province, Viet Nam
Abstract
This study focuses on "evaluating evidence" contract farming is better for Vietnamese farmers than non-contract farming. The research is based on case studies of farmers who cultivated rice and baby corn in the province of An Giang. The aim of this study is for me to gain self-reliance, learn more about contract farming experience, recognize the strengths and challenges of contract farming, and adjust its efficiency with the situation in Vietnam. While Vietnam has become the World's second largest rice exporter, our agriculture has faced many challenges and difficulties - high production costs, low and unstable quality of products, a weak competitive approach in the world's markets, and low incomes for farmers. As a result, the Vietnamese government has made it a priority both to improve the quality of agro-products and to increase farmers' incomes. Some national programs have provided farmers with training in new technologies, given assistance in and access to market information, built rural infrastructures, and reformed and enacted new policies. Under these programs, contract farming or market contract, particularly under the guidance of Decision 80/2002/Ttg encourages agricultural production through contract, has been a large state government program since 2002. But 90% of contract farming in Vietnam failed, and contract farming continues to cause debate in Vietnam. Although people have had different experiences with contract farming cases throughout Vietnam, many arguments regarding the success or failure of contract farming continue. My research demonstrates that contract farming is better for Vietnamese farmers than the free market. Agriculture produced through contracts benefits not only farmers, rural community and enterprises, but also the state and scientists. Also, contract farming can be applied successful in Vietnam with some kind of high quality and specialized agro-products. And it is more success when signed contract through a cooperative or other farmers' representative.