REPORT ON INVESTIGATIONS INTO MANGO SUPPLY
CHAINS IN THE MEKONG DELTA VIETNAM 2005-2007
By

Robert Nissen
1
, Tran Thi Ngoc Diep
2
, Nguyen Duy Duc
2
, Nguyen Minh Chau
3
, Nguyen
Trinh Nhat Hang
2
, Tran Nguyen Lien Minh
2
, Tran Thi Kim Oanh
2
, M. Rankin
4
, I. Russel


© The State of Queensland, Department of Primary Industries and Fisheries 2008.
Copyright protects this work. Except as permitted by the Copyright Act 1968 (Cth), reproduction by any means (photocopying,

Results 23
Retailers of Ho Chi Minh City. 23
Retailer experience and length of time in the trade. 23
Retailers purchasing patterns and locations 24
Transport of product to retailer’s place of business 24
Retailers’ delivery of product to consumers 25
Transaction types and methods of payment 25
Retailer sales, quantity of mango sold in Ho Chi Minh City 25
The retailer wholesale purchasing price of mango in Ho Chi Minh City 27
The retail sale price for mango in Ho Chi Minh City 30
Factors contributing to fruit loss at the retail level 33
Preservation techniques and post-harvest technologies applied by retailers 36
Difficulties and costs associate with running a retail business in Ho Chi Minh City, Vietnam 37
Labour requirements for retail shops at markets and fruit shops 37
Taxes and fees paid by retailers to operate their business 38
Information flows, exchanges and business fess paid by retailers to associations 38
Survey of Mango Wholesalers and Collectors 39
Ho Chi Minh City Fruit and Vegetable Central Markets 39
Wholesalers experience and length of time in the trade in South Vietnam 39
Transportation practices 40
Wholesaler purchasing practices 42
Wholesaler mango purchasing prices 43
Quantity of mango sold by wholesalers 45
Wholesaler mango selling prices and profit
46
Wholesaler business operational expenses 48
Labour costs 49
Tax and electricity and water fees 49
Wholesalers post-harvest handling techniques and practices 50
Fruit grading practices and quality assurance 54

Post-harvest 78
Harvesting 78
Maturity indicators 81
Fruit grading AND packing 82
Shelf life 86
Transport 88
Sale of fruit 90
Farm gate prices received for mango fruit 91
Farm fees and taxes 92
Communication and information exchange 95
Farm profit from mango production 98
Environmental sustainability issues in the Mekong Delta 100
Soil Management 101
Irrigation and Water Management Practices 101
Agricultural Chemical Usage 102
Mango Processor:- Costal Fisheries Development Copporation (CONFIDEC) Mango Processing Factory

106
Observations and recommendations for the mango processor 107
Ho Chi Minh City, May 2006 107
Mango ripening 107
Air movement 107
Suggestions 107
Other suggestions 108
Conclusions 109
Consumers 109
Retailers 109
Wholesalers/Collectors 110
Farmers 111
Cooperatives and groups 111

collaborative project is funded by AusAID and administered by Hassall and Associates International. The
project is between the Queensland Department of Primary Industries and Fisheries (QDPI&F) and the
Vietnamese organisations, Southern Sub-Institute of Agricultural Engineering and Post-Harvest Technology
(SIAEP), and Southern Fruit Research Institute (SOFRI).

The aim of this report is to investigate and understand mango supply chains in Mekong Delta, Vietnam by:
• determining pre- and post-harvest technology practices of these supply chains
• determining the quality of the product produced by these supply chains
• identifying participants in the existing domestic and export supply chains
• map the existing mango supply chains and their and distribution channels

METHODOLOGY
Several methods were used to collect baseline data on mango supply chains operating in the Mekong
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 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.

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. The 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,
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wholesalers, collectors and farmers along the mango supply chains operating in the Tien Giang, Vinh Long,
Dong Thap and Ben Tre Provinces and Ho Chi Minh City, Vietnam in July 2005 to May in 2006.

Stratified random sampling and random sampling techniques were used to collect survey data. Interviews

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 29
th
of
April 2006.

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 Extension Centre. Further
information was obtained via interviews with 3 grower cooperatives/groups in November 2005 and April
2006.
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SURVEY OF MANGO CONSUMERS IN HO CHI MINH CITY
I
NTRODUCTION
The retail and consumer scene, especially in Ho Chi Minh City, is undergoing a great deal of change that is
beginning to benefit the end consumer. Not only have supermarkets and department stores grown in
number, but many are already modernising their services and products, from better-designed shelves,
promotions, to point-of-sale (POS) terminals to help boost sales and competitiveness. Fast moving
consumer goods (FMCG) have experienced the highest growth rates, growing at a rate of 10% per year for
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8Figure 1. Administration map of Ho chi Minh City
Table 2. Topology of districts in Ho Chi minh City, Vietnam
Categories
Rapid Urbanisation

Medium
Urbanisation
Slow Urbanisation

Total
Urban
Districts
1, 3, 4, 5, 6, 10, 11, Phu Nhuân 8,
Bình Thanh, Gò Vấp, Tân

Table 3. Occupation before and after migration to Ho Chi Minh City
Occupation Before migration At present
Agriculture 49% 0%
Wage Labour 21% 18%
Handicraft production 11% 22%
Student 6% 0%
Employee 1% 2%
Small trading 10% 31%
Petty trading 0% 27%
Housewife 2% 0%
Total 100% 100% E
ARNING CAPACITY AND INCOME LEVELS OF THE CITIZENS OF HO CHI MINH CITY
Ho Chi Minh City is the largest and fastest developing city and has the highest per capita income in
Vietnam, yet around 12% of its population was classified as poor in 2001. Although this rate is lower than
any other city in Vietnam, the gap between the rich and poor is widest in HCMC. According to several
social surveys, the majority of poor families still struggle to earn money. During the past 5 years in HCMC,
only 25% of people have improved their situation while 50% have been worse off (Leonhardt, 2001).

The Vietnamese Household Living Standards Survey (VHLSS) of 2002 estimated the total annual
expenditure calculated on the basis of Purchasing Power Parity at approximately Int$ 5 510 (approximately
12 738 624 Vietnamese Dong (VND). The total annual expenditure per capita was Int$ 1 345
(approximately 3 109 518 VND) and the total annual food expenditure per capita at Int$ 581 (approximately
115 364 VND) with 11.4% on livestock foods (meat, eggs and milk) and 9.2% on fish and the remainder on
agricultural products (Maltsoglou, 2007).

Poverty affects food security of men and women differently in Vietnam. Women are more vulnerable to
malnutrition because they eat less than men. Especially when pregnant, they need a high level of nutrient


suburban Phu Thuan village (Nha Be
District) are workers and farmers (Thanh, 2007).
HOUSEHOLD CONSUMPTION
Per capita consumption expenditure has grown dramatically in Vietnam since 1993, almost doubling by
2004. Urban areas have experienced faster growth. The richer have done better; most recently, however, it
is the middle groups that have experienced the highest rates of growth. Households have increased their
expenditure on all major categories, but mostly on education, which grew at 12 per cent per annum over
the eleven year period (ADB, 2006). In 1998, expenditure on food consumption was, on average, 47% of
the household budget (MARD, 2001). Rice consumption only varies slightly by income group, but above a
certain income threshold, additional income is spent on high value food such as meat, fat, oil eggs and non
food items (Oxfam 2001).The Asian Development Bank (ADB) project ‘Making Markets Work Better for The Poor’, categorised
household expenditures into four categories:
• Food
• Education
• Health
• Housing.

Food continues to account for the bulk of household expenditure today, but costs have grown at the lowest
rate (2.19% p.a.). The amount spent on education grew the most over the 11 year period, at nearly 12%
p.a., with the bulk of the increase occurring in 1993-1998. Expenditure on health grew only 4.5% p.a. over
the 11-year period, but rose nearly 17% between 2002 and 2004. Housing expenditure grew nearly 7%
over the whole period. (ADB, 2006). The share of food per capita in household expenditure fell from 62%
of total expenditure in 1993, to 42% in 2004, while that of education increased from 3% to 5%. The share of
housing remained virtually unchanged (around 7 %). The share of health dropped from 7.6% to 5.9%
(ADB, 2006).


supermarkets is due to consumers’ demands for improved quality and food safety. Supermarkets and
market stalls or shops are promoting their goods through improved presentation, packaging and product
safety (Moustier et al, 2006). There are currently around 250 supermarkets throughout the 18 districts of
Ho Chi Minh City. With large amounts of investment, a wide variety of household goods and large scale
promotions, they have become strong rivals to smaller retailers. All are chasing the growing consumption
power developing in Ho Chi Minh City’s new urban districts and suburbs (Vietnam Economy, 2007).
C
ONSUMER PREFERENCES FOR MANGO VARIETIES
The mango variety ‘Cat Hoa Loc’ was the most popular variety for the interviewees, with 71.43% of the
consumers surveyed preferring to purchase and eat this variety due to its attractive color, flavor and
perceived market prestige (Figure 2). The prestige aspect came about 10 years ago when ‘Cat Ho Loc’ was
still rare and very expensive.
Vietnamese consumers, consumption
rates of mango varieties
Percentage (%) of the total consumer surveyed
0 20406080
Mango varieties
Cat Hoa Loc
Cat Chu
Ghep
Others (Thailand, Australia etc.)Figure 2. Percentage (%) of the total Vietnamese consumers surveyed and purchasing patters of
mango varieties for Ho Chi Minh City, Vietnam
Percentage (%) of the total
number surveyed
0
20
40
60
80Figure 3. Quantity (kg) of mango purchased at one time by consumers in Ho Chi Minh City, Vietnam. AusAID CARD Project 050/04 VIE Improvement of domestic and export markets through improved post harvest and supply chain management
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Frequency of purchases per month
< 4 4 to 8 > 8
Percentage (%0 of the
total number surveyed
0
10

ONSIDERATIONS USED BY CONSUMERS WHEN PURCHASING MANGOES
About 60.9% of consumers surveyed considered; ‘where did the mango they are about to purchase come
from?’ (origin of production). The remaining 39.1% of survey respondents did not consider origin of
production. About 69.5% of survey respondents purchased mangoes for prestige, with 22% purchasing
due to habit and the remaining 8.5% through marketing (Figure 6).

Purchasing habits
Percentage (%) of the total
number of consumers surveyed
0 20406080100
Reasons for purchasing mangoes
Prestige
Habit
Marketing

Figure 6 Consumers’ reasons for purchasing mangoes in Ho Chi Minh City, Vietnam. P
RICE PAID BY MANGO CONSUMERS IN HO CHI MINH CITY
When asked to compare mango prices against their income, 70% of interviewees indicated that the
purchase price was reasonable, including respondents from the poorer social classes in Vietnamese
society. About 30% said the purchase prices were too high in comparison to their income, even during the
main season, but especially at the beginning of the main season, when many consumers purchase
mangoes to give as gifts. Less than one percent said the prices were too low and they mainly purchased
fruit from high class shops (Figure 7).


50% higher price than the variety ‘Cat Chu’, and a 66% higher price than the mango variety ‘Ghep’.

The average retail price per kg for the mango varieties ‘Cat Hoa Loc’, ‘Cat Chu’ and ‘Ghep’ did not fluctuate
widely over the seasons from 2005 to 2006. The average retail price for mango variety ‘Cat Hoa Loc’, early
and late main season and early and middle off season was between 15 000 and 20 000 VND per kg.
During the middle main season, the average retail price fell below 15 000 VND per kg and for the late off
season, the average retail price increased to about 20 000 to 25 000 VND per kg (Figure 8). The average
retail price for the mango variety ‘Cat Chu’ for early and late main season and early and middle off season
was between 14 000 and 18 000 VND per kg. During the middle main season, the average retail price fell
below 15 000 VND per kg, and for late off season, the average retail price increased to about 20 000 to
25 000 VND per kg (Figure 9). The average retail price for the mango variety ‘Ghep’, was between 6 000
and 8 000 VND per kg for all seasons (Figure 10).

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Early Off Season
Percentage (%) of the total

Early Main Season
Percentage (%) of the total
consumers surveyed
0
10
20
30
40
50
60
Mid Main Season
Percentage (%) of the total
consumers surveyed
0
10
20
30
40
50
60
Late Main Season
Thousands ('000) VND / kg
<15 15-20 20-25 25-30 >30
Percentage (%) of the total
consumers surveyed
0
10
20
30
40

40
50
60
Middle Main Season
Percentage (%) of the total
consumers surveyed
0
10
20
30
40
50
60
MIddle Off Season
Percentage (%) of the total
consumers surveyed
0
10
20
30
40
50
60
Late Main Season
Thousands ('000) of VND / kg
<6 6 - 10 10 - 14 14 - 18 >18
Percentage (%) of the total
consumers surveyed
0
10

0
20
40
60
80
100
Early Off Season
Percentage (%) of the total
consumers surveyed
0
20
40
60
80
100
Middle Main Season
Percentage (%) of the total
consumers surveyed
0
20
40
60
80
100
Middle Off Season
Percentage (%) of the total
consumers surveyed
0
20
40

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C
OMMON PROBLEMS THE CONSUMERS FACE WHEN PURCHASING MANGO
About 51.7% of consumers surveyed indicated they had problems when selecting mangoes to purchase
due to uneven ripening (Figure 11). Based on Australian varieties, mangoes are best ripened at about
20°C. This provides the best balance between good skin colour and flavour, whilst minimizing disease on
the fruit. In relation to processing where skin colour is not an issue, we recommend ripening at about 24-
25°C.

We know little about ripening conditions for Vietnamese varieties, but it is possible that higher ripening
temperatures can be used. Uncontrolled temperatures of 26-35°C and inadequate air circulation and
temperature control during the ripening process can have serious consequences in for mango fruit,
causing:
• uneven colouring occurring (green patches with a yellow background on skin of the
mango)
• uneven ripening of the flesh, and
• the possibility of increasing disease presence, such as stem end rots and anthracnose

Generally, temperatures above 32-35°C can prevent ripening. Therefore, temperature control during the
ripening process is critical. Purchasing problems
Percentage (%) of the total
number of consumers surveyed
0 20 40 60 80 100
Consumers problems
when purchasing mangoes

Shelf life

Figure 12. Consumers’ preferences for selecting mangoes to purchase in Ho Chi Minh City, Vietnam. C
ONSUMER REQUIREMENTS ON THE QUALITY OF MANGOES
The mango variety ‘Cat Hoa Loc’ was the most popular variety of mango. Many consumers, when
questioned about their preference for quality requirements of mangoes, indicated that quality should be
improved in terns of being sweeter, have a smaller seed, have more fragrance and have a longer shelf life.
About 85% of consumers surveyed indicated that fruit size was suitable, 60% indicated that colour was
suitable with 24.8% indicating it should be yellower and 14.4% indicating that there is too much sap on the
skin and in the fruit. About 71% of consumers surveyed indicated that flesh was suitable, 14% indicating
that the seed was too large. About 63% indicated that the flavour was suitable, but 18% indicating that the
fruit was not sweet enough and a further 18% indicating that the smell could be improved. About 71%
indicated that shelf life was suitable with 18.8% indicating that the fruit rotted too quickly and 13% saying
that the skin shriveled/withered quickly
(Figure 13).

Problems with shelf life
Suitable
Rot to quickly
Skin withered quickly

Figure 13. Consumer ratings of mango fruit quality.

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C
ONSUMER SUGGESTIONS TO IMPROVE MANGO MARKETING
About 60% of consumers surveyed indicated that mango fruit quality is the single most important marketing
factor that could be improved to increase mango sales. The next factor indicated by consumers was the
distribution system at 16%, closely followed by packaging (12%) and the remaining 12% had no
suggestions on how to improve the marketing and sales of mangoes in Ho Chi Minh City, Vietnam (Figure
14). Consumer suggestions for
improvements in the marketing mangoes
Percentage (%) of the total
number of consumers surveyed
0 20 40 60 80 100
Consumer suggestions
The quality
The package
Distribution system
Other (No idea)


Between 1990 and 2004 In Ho Chi Minh City, the number of supermarkets has increased at 17% per year.
In 2005 there were 71 supermarkets in Ho Chi Minh City. This demand has seen the rise of supermarkets
and market stall or shops that promote their goods via improved presentation, packaging and product
safety (Moustier et al, 2006).

RESULTS
RETAILERS OF HO CHI MINH CITY.
We found that in Southern Vietnam, there are three main mango varieties sold by retailers and vendors -
‘Cat Hoa Loc’, ‘Cat Chu’ and ‘Ghep’. Many vendors also sell green mangoes. These are sold intensively
near factories, schools, and hospitals. Mango sellers reported that ‘Cat Hoa Loc’ was the most profitable
mango to sell due to its marketability. Consumers regard this mango a having prestige and it is highly
sought after. ‘Cat Hoa Loc’ mango was mainly sold by retailers with high quality fruit shops not associated
with retail markets, and high quality fruit shops located in retail markets and supermarkets. Retailer ratings
on the most profitable mango cultivars are shown in Table 4 below.

Table 4. The most profitable mango varieties to market in Ho Chi Minh City as chosen by
retailers.
I. Mango Varieties Supermarkets Fruit shops Retail markets Vendors
1. ‘Cat Hoa Loc’ X X X
2. ‘Cat Chu’ X
3. ‘Ghep’ X X

RETAILER EXPERIENCE AND LENGTH OF TIME IN THE TRADE.
All surveyed retailers in Ho Chi Minh reported that consumers are becoming more fastidious in choosing
fruit. This change can be attributed to the increase in living standards over the past ten years. All street
vendors surveyed see their particular line of business as a temporary job. Most vendors have been in this
line of business for only two to three years compared to market retailers, fruit shops and supermarkets,
which have been in their line of business for 5 years or longer (Table 5).

Table 5. Proportion of retailers and time spent in the trade.


45%
15%
10%
25%
5%
Break the agreement in terms of the price, the quality and the quantity
Not uniform in size
The distance
The transportation
No ideaFigure 15. Occurrence of problems faced by retailers when purchasing fruit. Practically all fruit purchased by the retailers are transported from the wholesale market place to the
retailer’s place of business by Honda tricycles with or with out an engine. In some instances, small vans
are used to deliver mangoes in cartons or boxes. Street vendors use push carts or bicycles to transport
their fruit. Where tricycles are used, transportation fees are calculated according to the trip distance.
Where vans are used to transport fruit in boxes, costs are calculated on a box basis and trip distance.

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When purchasing mangoes, the retailer does not negotiate the transportation fee back to their place of
business. They do not pay for each delivery, instead transportation fees are usually negotiated between
the retailers and wholesalers, based on the annual quantity of fruit sales. Retailer survey results on costs
are shown in Table 6.