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Asian Journal of Agriculture and Development (AJAD) - Call for papers!

Market Structure, Conduct and Performance of the Banana Industry in Hung Yen Province, Viet Nam

(Vietnam), Master of Science in Agricultural Economics (University of the Philippines Los Baños)

Thesis Abstract:

This study analyzed the market structure, conduct, and performance of the banana industry in Khoai Chau District, Hung Yen Province, Vietnam. Results showed that the region’s banana industry was monopolistic competitive at farm level with low degree of market concentration (CR4 = 19.2%; HHI = 233.3; and GINI = 0.54). At trader level, market was strongly oligopolistic with highly-concentrated market (CR4 53.3%; HHI = 1,436.9; and GINI coefficient = 0.83).

Overall, the banana marketing system was operationally efficient. Wholesalers/ brokers operated most efficiently, registering the lowest marketing cost and highest OEl. However, there were some indications of pricing inefficiency as the market participants generally obtained above-normal profit, especially in the wholesale- broker and export levels wherein the degree of market concentration was rather high. Producers obtained the lowest absolute net profit (VND 15,604 per year) and the lowest profit rate (18.7% per year), while exporters who had market power to set output and price obtained the highest absolute profit (VND 1,981,810 per year) and profit rate (191.9% per year) from their banana business.

The study recommended enhancing market competition through credit access, providing high-yield and disease-resistant varieties, training on VietGap method, establishing banana grower association, training and supporting post-harvest technology, and establishing value adding enterprises.