Tóm tắt Luận án Factors affecting application of good agricultural practices for vegetable farming in Vietnam

The researches related to GAP application in agriculture in general and vegetable production in particular focused on two main research directions: (1) researches on two groups of endogenous and exogenous factors affecting GAP application such as researches by Sriwichailamphan et al (2008), Zhou and Jin (2009), Jayasinghe-Mudalige (2005); and (2) researches on roles of governments in GAP application such as researches by Hanak et al (2002), Wannamolee (2008), Srimanee and Routray (2011). In context of Vietnam, apart from issuance and enforcement of food safety legislation, the Government plays an important role in supporting GAP application. Assuming the producer, customer and Government-related factors affect GAP application, the thesis identified and assessed the significance of each factor affecting GAP application by vegetable producers. The access to the factors affecting the GAP application was from viewpoint of vegetable producers. The research shows that the factors having considerable significance to GAP application include: (1) producer-related factors: awareness of financial, competitiveness and reputation benefits from GAP application; (2) customer-related factors: customer’s requirement of GAP application, especially customers as households, supermarkets, retailers and processors; (3) Government-related factors: planning of safe crop production areas, supports with agricultural material inputs, internal audit, certification, trade promotion, GAP audit to producers. The factors that do not affect GAP application include producer’s awareness of pressure from customers, vegetable farming area, geographical location and website, customers as collective kitchen, trader, wholesale market, support with technical infrastructure and trainings. Based on research results, to maintain and expand GAP application in vegetable farming in Vietnam, the thesis proposes a number of measures for the Government in

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MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY ----------------*********---------------- ABSTRACT OF THE Ph.D. THESIS on FACTORS AFFECTING APPLICATION OF GOOD AGRICULTURAL PRACTICES FOR VEGETABLE FARMING IN VIETNAM Author: NGUYỄN THỊ HỒNG TRANG Speciality: Economics management (Management science) Code: 62340410 HANOI 2016 COMPLETED IN THE NATIONAL ECONOMICS UNIVERSITY Scientific instructors: 1. Đỗ Thị Hải Hà (Assoc. Prof.) 2. Đỗ Thị Ngọc Huyền (Ph.D.) Reviewers: 1: 2: 3: The thesis has been presented and defended to the PhD Committee of the National Economics University At (time), (date)... The thesis is available at: - National Library of Vietnam - Library of the National Economics University 3 INTRODUCTION 1. Necessity of the research Food safety is a very important issue in socio-economic development. According to the Food and Agriculture Organization (FAO, 2003), vegetables are essential components of a health diet. In Vietnam, vegetable production has significant contribution to ensure national food security, agricultural economics growth, rural development and poverty alleviation. Vegetables are high-risk foods and the public has deep concern about the issue of food hygiene and safety for vegetable products. Food safety assurance in the fruit and vegetable production in countries around the world has been accomplished through good agricultural practices (GAP). GAP stakeholders include governments, food retailing industries, farmers and consumers (FAO, 2003). From concept of production (supply), farmers use GAP to promote economic benefits, conserve natural resources and maintain cultural and social values. From concept of demand, consumers’ concern (including food processing and retailing industries) is food quality and safety and process of good agricultural practices in food production (FAO, 2003). Governments set national food quality standards and control the compliance as well as support to meet food quality standards. There are many researches on GAP application in agrifood production in general and safe vegetable production in particular. These researches focused on two ways: (1) Internal and external factors affecting GAP application; and (2) Role of government in GAP promotion. Some researches used qualitative methods to determine factors affecting application of food safety standards in general and GAP in particular. Some other researches used quantitative methods to quantify significance of these factors. However, most of researches done in Vietnam focused on state management for agrifood quality and safety control and agrifood value chain. New researches only described current status and proposal of measures to improve state management for agrifood quality and safety, policy measures to promote safe agrifood chains. Researches on implementation of VietGAP standard for vegetable production emphasized on situation and proposed measures to promote VietGAP- vegetable production. There are not any significance assessment of factors affecting application of good agricultural practices by vegetable producers. Therefore, the author selects the 4 theme: “Factors affecting application of the good agricultural practices for vegetable farming in Vietnam” to verify supposition and assess the significance of factors affecting GAP application by vegetable producers in order to give recommendations for maintaining and expanding the application of GAP in vegetable farming in Vietnam. 2. Objective (1) Interpretation of theory and practice of GAP and the factors affecting GAP application in vegetable farming. (2) Analysis of actual situation of GAP application for vegetable farming in Vietnam. (3) Determination and significance evaluation of factors affecting GAP application by vegetable producers in Vietnam. The factors include ones relating to: (1) vegetable producers, (2) customers and (3) the government. (4) Recommendations towards maintenance and expansion of GAP application for vegetable farming in Vietnam. 3. Questions (1) What are factors affecting GAP application by vegetable producers in Vietnam? What is role of each factor? (2) What should the government do to maintain and expand GAP application in vegetable farming? (3) What should vegetable farmers do to maintain and expand GAP application? (4) What shoud customers do to maintain and expand GAP application in vegetable farming? 4. Scope - Subjects of the research: factors affecting GAP application by vegetable producers, including: (1) vegetable producers, (2) customers and (3) the government. - Content: role of each factor affecting GAP application for vegetable farming. - Venue: Vegetable farms (enterprise, cooperative, farmer group, household) in vegetable areas in 26 cities/provinces located in 7 agricultural ecoregions in Vietnam. 5 - Timing: Secondary data collected in 2011-2015, primary data collected from interviews in 8 months 2014 and surveys conducted from January to April 2015. 6. Methodology Approach The thesis approach is factors affecting GAP application in Vietnam from the perspective of vegetable producers. The thesis methodology includes a combination of two methods: (1) qualitative and (2) quantitative: Qualitative Qualitative method aimed to identify the factors affecting GAP application by vegetable producers in Vietnam in order to test and screen variation of initial study model. The method used techniques of in-deep interviews. Interview forms were conducted with 4 officials working in state management agencies of vegetable food safety and 6 vegetable vegetable producers applying or not applying GAP. Interview results were aggregated, analyzed, accordingly scales of variation were amended and selected in the research model. Quantitative Quantitative method aimed to quantify results of qualitative studies and test the supposition, determine significance of factors on GAP application by vegetable producers. Quantitative research was conducted through a survey with questionnaires for vegetable producers in Vietnam, using convenience sampling method. Wishing to collect over 110 replies, survey forms were sent to 200 vegetable producers (applying or not applying GAP) located in 46 provinces/cities of 7 agricultural ecoregions in Vietnam. The author collected 130 replies from 200 vegetale producers, equivalent to 66%, no reply from 70 other producers. The replies were from producers located in 26 provinces/cities, mainly in Hanoi (33 producers) and Hochiminh City (26 producers). 6 Data collected from quantitative research was described, analyzed by Excel and STATA. The thesis used non-linear and ordered logistic regression models to assess the significance of the factors affecting GAP application by vegetable producers. 7. Scientific contributions The thesis contributes to clarify factors affecting GAP application by vegetable producers in Vietnam, including 3 factor groups: (1) producers; (2) customers; and (3) government. The thesis aimed to identify and assess the significance of each factor affecting GAP application in safe vegetable production. From the research results, to maintain and expand GAP application in vegetable farming in Vietnam, the thesis proposes some solutions to the government in national strategy, management policy and support, enforcement and control of GAP application in vegetable production and marketing. Besides, the thesis gives some recommendations for vegetable producers, as well as commercial customers, industries and consumers to raise awareness and capacity of GAP application in vegetable production and marketing. CHAPTER 1. OVERVIEW OF RESEARCHES 1.1. Foreign studies The researches show that there are two basic groups of factors that affect GAP application by agrifood producers: (1) endogenous factors such as characteristics of producer (2) exogenous factors such as regulations on food safety, requirements of the market, strategic partnership between stakeholders in agrifood production chain. The researches focus on two main directions: (1) Research group on both endogenous and exogenous factors affecting GAP application; and (2) research group on role of governments on GAP application. 1.1.1. Researches on both endogenous and exogenous factors affecting GAP application These researches analyzed endogenous and exogenous factors affecting GAP application for agriculture in general and for vegetable farming in particular in order to ensure food safety and environmental friendly production practices. Such researches 7 include ones by Sriwichailamphan et al. (2008), Zhou and Jin (2009), Jayasinghe- Mudalige (2005), Holleran et al. (1999) and Hobbs (2003). Researches on exogenous factors affecting GAP application, strategic partnership between stakeholders in agrifood production chain, include ones by Wannamolee (2008), Mushobozi (2010), Jiao et al. (2010), Henson and Northen (1998). At this approach, researches applied qualitative methods to identify factors affecting application of food safety standards in general and GAP in particular. Several studies used quantitative methods to quantify significance of each factor. 1.1.2. Studies on government role for GAP application Other approach was from role of government in food safety control in general, such as researches by Brown (1997), Gorter and Swinnen (1994), Crutchfield et al. (1997), Buzby (2003), Henson and Caswell (1999), Ogus (1994), Henson and Heasman (1998) and GAP application in particular, such as researches by Hanak et al. (2002), Wannamolee (2008), Srimanee and Routray (2011). The above approaches to GAP have tight relationship, many researches used qualitative methods to identify factors affecting application of food safety control in general and GAP in particular. Some other researches used quantitative methods, regression models to assess the significance of factors affecting GAP application. The researches show that these factors are related to producers, customers and government. 1.2. Local studies Local studies on GAP application only focused on actual situation and proposal of solutions to promote safe vegetable production. General objective of the local studies was to promote GAP application as to ensure long-term benefits for producers, consumers and society as a whole. However, there were some solutions without strong scientific basis. According to the author, to come up with the solutions, the studies should include significance assessment of factors affecting GAP application by vegetable producers through qualitative and quantitative analysis. In Vietnam, there are not yet any specific studies about the factors that affect GAP application by vegetable producers or significance assessment of these factors. 8 Due to the specific characteristics of Vietnam as an agricultural country in period of transition to the market economy, the Prime Minister (2012) has issued a number of policies to support the application of good agricultural practices in agriculture, forestry and aquaculture. Besides, many programs and projects funded by the government or international organizations have also supported GAP application in safe vegetable production areas nationwide. The government planned concentrated production areas for implementation of GAP-based safe vegetable production projects. Some policies supported GAP application with: (1) infrastructure; (2) training for producers; (3) guidance, funds for VietGAP certification; (4) application of new technologies; (5) trade promotion; (6) credit; (7) tax and others. In addition, the Ministry of Agriculture and Rural Development (2015) assigned duties of food safety inspection, monitoring and audit to vegetable production chain under jurisdiction of the Ministry of Agriculture and Rural Development. It is assumed that the GAP application is affected by factors related to vegetable producers, customers and the government, the author focuses on a number of factors affecting GAP application by vegetable producers. What are the factors that actually affect GAP application by vegetable producers? What is the role of each factor? What is the role of the Government to GAP application in vegetable production? What should vegetable producers, customers and the Government do to maintain and expand GAP application in vegetable production? The thesis “Factors affecting application of good agricultural practices for vegetable farming in Vietnam” will answer these questions. CHAPTER 2. RATIONALE AND PRATICE OF GOOD AGRICULTURAL PRACTICES AND FACTORS AFFECTING APPLICATION OF GOOD AGRICULTURAL PRACTICES FOR VEGETABLE FARMING 2.1. Good agricultural practice (GAP) 2.1.1. Concept and role of GAP Good agricultural practices (GAP) are practices that address environmental, economic and social sustainability for on-farm processes and result in safe and quality food and non-food agricultural products. (FAO COAG 2003 GAP paper). In simple 9 language, GAP stands on four pillars: economic viability, environmental sustainability, social acceptability and food safety and quality (Mushobozi, 2010). In this research, the following definition on Good Agricultural Practices by the Ministry of Agriculture and Rural Development (2012) will be applied: Good Agricultural Practices – GAP are standards / criteria set by an organization, a country, a group of countries as guidelines for producers to assure food quality and safety, traceability, environmental protection, health, and social welfares for workers. 2.1.2. GAP standards for vegetable farming 2.1.2.1. EurepGAP in Europe and GlobalGAP 2.1.2.2. AseanGAP in ASEAN 2.1.2.3. SALM certification and MS-GAP in Malaysia 2.1.2.4. Q-GAP in Thailand 2.1.2.5. JGAP in Japan 2.1.2.6. ChinaGAP in China 2.1.2.7. VietGAP for fresh fruits and vegetables and Basic GAP for vegetable production in Vietnam Good agricultural practices for fresh fruits and vegetables in Vietnam The Ministry of Agriculture and Rural Development (2008) defined VietGAP as principles and procedures for production, harvesting and post-harvest handling to ensure food safety, produce quality, social welfare, health for producers and consumers, environment protection and product traceability. VietGAP for production of fresh fruits and vegetables which was based on AseanGAP (Good agricultural practices in ASEAN countries), EurepGAP (Good agricultural practices in Europe) or GlobalGAP (Global Good agricultural pratices) and FRESHCARES (Good agricultural practices in Australia) is intended to facilitate the trade of fruit and vegetables in ASEAN and the world, towards the establishment of sustainable agriculture in Vietnam. VietGAP includes 12 criteria. 10 General requirements of VietGAP for vegetable farming According to the Ministry of Agriculture and Rural Development (2014), general requirements of VietGAP for vegetable farming are principles, procedures for production, harvesting and post-harvest handling for produce quality, food safety and traceability. Basic GAP includes 10 criteria including principles, procedures that producers must follow to have safe crops. Producers must keep records and documentation in the form of field/farmer’s diary documents, farming management profiles. 2.1.3. International experiences in GAP application and lessons for Vietnam 2.1.3.1. GAP in Japan 2.1.3.2. GAP in Thailand Other industrial countries 2.2. Factors affecting GAP application 2.2.1. Producer-related factors 2.2.1.1. Producer’s awareness of financial benefits from GAP application 2.2.1.2. Producer’s awareness of competitiveness benefits from GAP application 2.2.1.3. Producer’s awareness of reputation benefits from GAP application 2.2.1.4. Producer’s awareness of pressure from customers 2.2.1.5. Producer’s production area 2.2.1.6. Distance from farm to nearest big city centre 2.2.1.7. Producer’s website 2.2.2. Customer-related factors 2.2.2.1. Customer’s requirement of GAP application 2.2.2.2. Customer as household 2.2.2.3. Customer as school, collective kitchen 2.2.2.4. Customer as supermarket, retailer 2.2.2.5. Customer as trader 2.2.2.6. Customer as wholesale market 2.2.2.7. Customer as processor 11 2.2.3. Government-related factors The Government may promote GAP application through: * Management * Support Government-related factors affecting GAP application include: 2.2.3.1. Planning for safe crop production areas 2.2.3.2. Government support to GAP application 2.2.3.3. Official control to GAP application by crop producers 2.3. Research model and scale 2.3.1. Setting up research model Initial research model is shown in the diagram below: The author refered to establishment of research model and selection of scale for independent and dependent variables in the research of Deng et al. (2010); Zhou and Jin (2009); Sriwichailamphan et al (2008); Jayasinghe-Mudalige (2005). Proposed analysis model is Ordered Logistic regression model to evaluate the critical level of independent variables affecting dependent variable, where: - Dependent variable (centre variable): GAP application by vegetable producers - Independent variable group 1 (attention variable): Producer-related factors - Independent variable group 2 (attention variable): Customer-related factors - Independent variable group 3 (attention variable): Government-related factors 12 Source: Author’s compilations Diagram 2.1: Research model of factors affecting GAP application by vegetable producers Dependent variable GAP application by vegetable producers Independent variable group 3 (attention variables) Government-related factors 3.15. Planning of safe crop production areas 3.16. Support with technical infrastructure 3.17. Support with agricultural material inputs 3.18. Support with trainings 3.19. Support with internal audit 3.20. Support with certification 3.21. Support with trade promotion 3.22. GAP audit to producers Independent variable group 2 (attention variable) Customer-related factors 2.8. Customer’s requirement of GAP application 2.9. Customer as household 2.10. Customer as school, collective kitchen 2.11. Customer as supermarket, retailer 2.12. Customer as trader 2.13. Customer as wholesale market 2.14. Customer as processor Independent variable group 1 (attention variable) Vegetable producer-related factors 1.1. Producer’s awareness of financial benefits from GAP application 1.2. Producer’s awareness of competitiveness benefits from GAP application 1.3. Producer’s awareness of reputation benefits from GAP application 1.4. Producer’s awareness of pressure from customers 1.5. Producer’s production area 1.6. Distance from farm to nearest big city 1.7. Producer’s website 13 CHAPTER 3. ACTUAL SITUATION OF GAP APPLICATION AND FACTORS AFFECTING GAP APPLICATION FOR VEGETABLE FARMING IN VIETNAM DURING 2011-2015 3.1. Actual situation of GAP vegetable production and marketing in Vietnam 3.1.1. Situation of GAP vegetable production in Vietnam Up to December 2015, vegetable production area nationwide was about 887.800 ha, Mekong delta is the largest area, accounting for 34,3% ( January 2016). During 2011-2015, total vegetable production had a relatively stable increase from 13,633 million tons in 2011 to 15,7 million tons in 2015. According to the Ministry of Agriculture and Rural Development (2015), 1.530 producers applied GAP in production area of 12.687,34 ha. However, VietGAP certified production area was 3.327 ha only, accounting for 0,4% total production area. Total VietGAP certified producers were 820 in 46 provin/cities nationwide ( 9 October 2015). Vegetable producers in Vietnam are in forms of enterprise, cooperative, farmer group, household. The maintenance and expansion of VietGAP application in vegetable farming face many difficulties and challenges. 3.1.2. GAP vegetables marketing in Vietnam According to the Ministry of Agriculture and Rural Development (2015), some marketing types of GAP vegetables in domestic market include: - Marketing by producers themselves. - Marketing by wholesale traders in wholesale markets. - Marketing by collectors of post-harvest vegetables. - Marketing by contracts: cooperatives, enterprises, farmer groups signing purchase contracts for marketing in supermarket, shops. - Marketing in stable customers: industrial kitchen, kindergartens’ and schools’ canteen. 14 The export of vegetable was not considerable. The main reasons include non- compliance with food safety requirements of importing countries, uneven quality, irregular supply; producers have not either formed concentrated vegetable production area or applied advanced technology for quality control and maintenance. 3.1.3. Difficulties in GAP vegetable production and marketing GAP application in vegetable farming faced difficulties in both production and marketing. 3.2. Actual situation of factors affecting GAP application by crop producers in Vietnam 3.2.1. Producer 3.2.1.1. Classification of vegetable producers According to the Ministry of Agriculture and Rural Development (2012), producers may be enterprise, cooperative, farmer group, association (including many members or households); farmer, household (one member or household) producing / handling fishery, horticultural and livestock products in accordance with VietGAP standard. Models of VietGAP safe vegetable production include: (1) cooperative; (2) farmer- to-trader linkage; and (3) private company or household (Nguyễn Lê Minh Triết, 2013). 3.2.1.2. Outcome of the survey on producer-related factors 3.2.2. Customer Outcome of the survey on customer-related factors 3.2.3. Government 3.2.3.1. Government management to GAP application in vegetable farming in Vietnam Strategies, policies, plans for GAP application in vegetable farming in Vietnam Enforcement of GAP application in in vegetable farming in Vietnam * Planning for safe vegetable production areas * Support to GAP application * GAP certification 15 Audit to safe vegetable production 3.2.3.2. Outcome of the survey on the Government-related factors 3.2.3.3. Difficulties in state management of GAP application in vegetable farming in Vietnam CHAPTER 4. ANALYSIS OF FACTORS AFFECTING GAP APPLICATION BY VEGETABLE PRODUCERS IN VIETNAM 4.1. Qualitative analysis of factors affecting GAP application by vegetable producers in Vietnam 4.1.1. Producer-related factors 4.1.2. Customer-related factors 4.1.3. Government-related factors Qualitative research results show that factors having considerable significance to GAP application by vegetable producers include: Producer-related factors: (1) Producer’s awareness of financial benefits from GAP application (2) Producer’s awareness of competitiveness benefits from GAP application (3) Producer’s awareness of reputation benefits from GAP application Customer-related factors: (4) Customer’s requirement of GAP application (5) Customer as household (6) Customer as school, collective kitchen (7) Customer as supermarket, retailer (8) Customer as processor Government-related factors: (9) Planning of safe crop production areas 16 (10) Support with technical infrastructure (11) Support with agricultural material inputs (12) Support with trainings (13) Support with internal audit (14) Support with certification (15) Support with trade promotion (16) GAP audit to producers 4.2. Quantitative analysis of factors affecting GAP application by vegetable producers in Vietnam 4.2.1. Selection of ordered logit model and measurement scale of variables Data collection results showed that: Among 130 producers, 42 producers did not apply GAP, 13 were applying VietGAP-oriented standards, 75 were VietGAP certified and still applying. The thesis uses ordered logit model to test relationship between dependent and independent variables because dependent variable GAP is measured in ordered scale. Regression model: P (GAP=1) = 1 / (1+ e-cut1+Z.β) Where P (GAP=1): Probability of GAP application by producer P (GAP=2) = 1 / (1+ e-cut2+Z.β) - 1 / (1+ e-cut1+Z.β) Where P (GAP=2): Probability for producers applying VietGAP-oriented standards P (GAP=3) = 1 - 1 / (1+ e-cut2+Z.β) Where P (GAP=3): Probability for producers being VietGAP certified and still applying VietGAP cut1: Value of status changing from no GAP application to VietGAP-oriented application 17 cut2: Value of status changing from VietGAP-oriented application to VietGAP- certified and still applying β: Coefficients to be estimated Z: Independent variables 4.2.2. Outcome of the regression model Outcome of the regression analysis show the the factors affecting GAP application by vegetable producers in Vietnam include: (1) Producer’s awareness of financial benefits from GAP application (2) Customer’s requirement of GAP application (3) Customer as household (4) Customer as supermarket, retailer (5) Customer as processor (6) Government support with agricultural material inputs (7) Government support with internal audit (8) Government support with certification (9) Government support with trade promotion 4.3. Outcome of the supposition testing Outcome of qualitative and quantitative analysis show that: The factors having considerable significance to GAP application by vegetable producers in Vietnam include: (1) Producer’s awareness of financial benefits from GAP application - Lnhuan (2) Producer’s awareness of competitiveness benefits from GAP application - Ctranh (3) Producer’s awareness of reputation benefits from GAP application - Dtieng (4) Customer’s requirement of GAP application - Khycau (5) Customer as household - Hogd 18 (6) Customer as supermarket, retailer - Sthi (7) Customer as processor - Cbien (8) Planning of safe crop production areas - Vung (9) Support with agricultural material inputs - Vtu (10) Support with internal audit - Gsat (11) Support with certification - Cnhan (12) Support with trade promotion - Tmai (13) GAP audit to producers - Ksoat Factors having insignificance to GAP application by vegetable producers in Vietnam include: (1) Producer’s production area - Dtich (2) Distance from farm to nearest big city centre - Kcach (3) Producer’s website - Web (4) Producer’s awareness of pressure from customers - Khang (5) Customer as school, collective kitchen - Thoc (6) Customer as trader - Tlai (7) Customer as wholesale market - Cho (8) Support with technical infrastructure - Kthuat (9) Support with trainings - Dtao 19 CHAPTER 5. GOVERNMENT STRATEGY, ORIENTATION AND SOLUTIONS FOR MAINTENANCE AND EXPANSION OF GOOD AGRICULTURAL PRACTICES APPLICATION IN VEGETABLE FARMING IN VIETNAM 5.1. Government viewpoints and orientation till 2020 and vision to 2030 for GAP application 5.1.1. Government viewpoints and overall strategy for agriculture development till 2020 and vision to 2030 According to the Prime Minister (2012), overall strategy for agriculture development till 2020 and vision to 2030 include: - Agriculture development must ensure must improve productivity, quality, competitiveness, efficiency and sustainability. - Agriculture development must be based on innovative thinking, market access, application of science, technology, efficient use of land, water, qualified human resources, adaptability to climate change, protection of ecological environment in order to effectively exploit advantages of local natural conditions. - Agriculture development must have close links with storage, processing industries and markets; land accumulation, forming concentrated commercial production areas. - Agriculture development must be linked with labor restructuring in agriculture, rural development, population movement, qualified human resources in order to meet the requirements of commercial agriculture, forestry and fisheries at advanced technical levels. - Agriculture development must have policies to ensure high mobilization of social and natural resources, such as land, forests, sea and labor; benefits from international integration and Government supports. 5.1.2. Vegetable farming development plan till 2020 and vision to 2030 According to the Prime Minister (2012), vegetable farming development plan till 2020 and vision to 2030: - Vegetable production area will be about 400 thousand ha, increasing the use of land to 2.5 to 3 times, increasing the area of winter crops and increasing crops on other lands, 20 ensuring the production area of 1.2 million hectares, with an output of about 20 million tons, of which 170 thousand hectares in the Northwest, 270 thousand hectares in the Red River Delta, 120 thousand hectares in the North Central coast, 80 thousand hectares in the South Central coast, 110 thousand hectares in the Central Highlands, 120 thousand hectares in the Southeast, 330 thousand hectares in the Mekong delta. - Vegetable production will be oriented to improved quality, food safety, forming concentrated vegetable production areas, applying advanced technology, VietGAP, organic farming. 5.1.3. Government orientation for GAP application The Ministry of Agriculture and Rural Development (2012) approved orientation for GAP application, including: 5.1.3.1. Promotion of GAP application 5.1.3.2. Orientation for GAP application As a small production scale, GAP application faced many difficulties, it should persevere with guidance of GAP application in accordance with market requirements and specific conditions of each locality as follows: - Compulsory requirements for application of technical standards of food safety conditions during production. These technical standards will be set up in accordance with basic requirements of VietGAP in order to ensure food safety during production; producers may assess the conformity themselves and declare safe products for local market in compliance with Food Safety Law. - Encouraging application of all GAP criteria as follows: + GlobalGAP will be applied to special products with high economic value (mainly dragon fruit, mango ...) and under contracts requiring GlobalGAP certified. + Other GAP (4C, UTZ Certified, Rain Forest) will mainly applied to industrial crops intended for export such as tea, coffee, cacao, pepper through PPP projects, big enterprises, corporations in coordination with farmers in production, GAP certification and marketing; + VietGAP will be applied to fresh vegetables, fruits, tea, rice for local consumption 21 or export; upgraded step by step to VietGAP for international recognition. 5.1.3.3. Solutions In coming time, agencies under the Ministry of Agriculture and Rural Development should guide producers: - Producers having contracts requiring VietGAP or other GAPs certified will continue to apply respective GAP standards in line with requirements of those contracts or importing countries; - Producers applying VietGAP or other GAPs without stable market shares, should support farmers to keep on with GAP application, prevent farmers from old farming method and actively seek markets for products; - Producers not yet applying VetGAP or other GAPs, should organize production in compliance with technical standards to have safe food for domestic market and in compliance with Food Safety Law. Producers should consider appropriate GAP, timing and certification scale in line with market requirements and purchase contracts. 5.2. Proposed measures for maintenance and expension of GAP application by vegetable producers in Vietnam Based on actual situation, Government viewpoint and orientation of GAP application in vegetable farming in Vietnam, the author proposed some measures for maintenance and expansion of GAP application in vegetable farming in 3 groups: 5.2.1. Government’s measures Government measures include management and support from input, in-process and output of production to ensure food safety, traceability, environment protection, producer’s health and welfare. Diagram 5.1: Government role in encouraging GAP application 22 Source: Author’s proposal 5.2.1.1. Strategy, policy, plan for GAP application in vegetable farming (1) Support to production and marketing of GAP vegetables (2) Regulations on production and marketing of safe vegetables 5.2.1.2. Enforcement of GAP application in vegetable farming (1) Planning of safe crop production areas (2) Support with agricultural material inputs (3) Support with internal audit (4) Support with certification (5) Support with trade promotion (6) Communication on GAP for consumer guidance and orientation to GAP vegetables (7) Requirement of safe vegetables used by commercial and industrial customers (8) Support with technical infrastructure, trainings for managers and farmers (9) Support with credit, taxation 5.2.1.3. GAP audit to vegetable producers - Audit to producer’s compliance with the procedures for VietGAP certification should be conducted regularly by many stakeholders such as state management agencies, producers themselves and community. Management objective - Food safety - Traceability - Environment protection - Economic benefits Government measures to encourage GAP application + Legislation + Enforcement: Tổ chức thực hiện: Planning of production areas, support with technical infrastructure; agricultural input; trainings; internal audit, certification, trade promotion + Audit Producer - Input - Production - Ouput 23 - The authorities should make regular communication on food safety with the community, good performance of GAP certified producers. GAP certified producers will receive favorable responses from customes. Producers will be motivated by customers to promote quality assurance and food safety. - The authorities should publish producers non-compliant with food safety regulations and apply strict sanctions upon detection of unsafe vegetable production and marketing. - The authorities should conduct regular and ad-hoc inspections to raise producers’ awareness on compliance with GAP standards. - Local authorities should update number of VietGAP producers because the number is small in each locality. The data collected will assist central competent authorities to amend national budget for supporting new VietGAP producers with good performance. - The Government should assign clear tasks, responsibilities of inspection and audit to avoid duplication within competent authorities under a Ministry or among Ministries. 5.2.2. Producer’s measures (1) Compliance promotion of vegetable producers (2) Setting up food quality and safety management system and internal audit (3) Marketing of safe products on website (4) Connection of producers in form of safe vegetable association 5.2.3. Customer’s measures 5.2.3.1. Commercial and industrial customers - The customers should require field/farmer’s diary documents and GAP certification because they are willing to pay higher for quality and safe products. Customers play a decisive role on producer’s operations. Customers should ask for stricter requirements of food quality and safety, producers will apply and strictly follow GAP standards. - Furthermore, due to the fact that higher certification fee caused higher price of products, some commercial and industrial customers who do not require GAP certification should conduct audit to GAP application and producers’ internal audit. 24 5.2.3.2. Customer Customers should actively seek information on GAP vegetables in order to be aware that the use of GAP safe vegetables will bring long-term benefits for themselves, their families and the whole community. CONCLUSION The researches related to GAP application in agriculture in general and vegetable production in particular focused on two main research directions: (1) researches on two groups of endogenous and exogenous factors affecting GAP application such as researches by Sriwichailamphan et al (2008), Zhou and Jin (2009), Jayasinghe-Mudalige (2005); and (2) researches on roles of governments in GAP application such as researches by Hanak et al (2002), Wannamolee (2008), Srimanee and Routray (2011). In context of Vietnam, apart from issuance and enforcement of food safety legislation, the Government plays an important role in supporting GAP application. Assuming the producer, customer and Government-related factors affect GAP application, the thesis identified and assessed the significance of each factor affecting GAP application by vegetable producers. The access to the factors affecting the GAP application was from viewpoint of vegetable producers. The research shows that the factors having considerable significance to GAP application include: (1) producer-related factors: awareness of financial, competitiveness and reputation benefits from GAP application; (2) customer-related factors: customer’s requirement of GAP application, especially customers as households, supermarkets, retailers and processors; (3) Government-related factors: planning of safe crop production areas, supports with agricultural material inputs, internal audit, certification, trade promotion, GAP audit to producers. The factors that do not affect GAP application include producer’s awareness of pressure from customers, vegetable farming area, geographical location and website, customers as collective kitchen, trader, wholesale market, support with technical infrastructure and trainings. Based on research results, to maintain and expand GAP application in vegetable farming in Vietnam, the thesis proposes a number of measures for the Government in 25 management and support policies, enforcement, audit to GAP application and marketing of GAP vegetables. This is the first research on determination and significance assessment of the factors affecting GAP application by vegetable producers in Vietnam. Coming researches may analyze application of good agricultural practices in other industry such as primary production and processing of fruits, pork, chicken, fishery products or factors affecting value chain of safe vegetables; customer’s awareness and behavior for safe vegetable products.

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