COMPLETED IN THE NATIONAL ECONOMICS UNIVERSITY

MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY
----------------*********----------------

Scientific instructors:

1. Đỗ Thị Hải Hà (Assoc. Prof.)
2. Đỗ Thị Ngọc Huyền (Ph.D.)

Reviewers:

ABSTRACT OF THE Ph.D. THESIS
on

1:

FACTORS AFFECTING APPLICATION OF
GOOD AGRICULTURAL PRACTICES FOR VEGETABLE
FARMING IN VIETNAM

2:
3:

Author:

NGUYỄN THỊ HỒNG TRANG
Speciality: Economics management (Management science)
Code: 62340410

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.

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?

However, most of researches done in Vietnam focused on state management for
agrifood quality and safety control and agrifood value chain. New researches only

Approach

7. Scientific contributions

The thesis approach is factors affecting GAP application in Vietnam from the
perspective of vegetable producers.

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 methodology includes a combination of two methods: (1) qualitative and
(2) quantitative:

The thesis aimed to identify and assess the significance of each factor affecting GAP
application in safe vegetable production.

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.

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

application for agriculture in general and for vegetable farming in particular in order to
ensure food safety and environmental friendly production practices. Such researches
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include ones by Sriwichailamphan et al. (2008), Zhou and Jin (2009), JayasingheMudalige (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

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
8


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.

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.

2.1.2. GAP standards for vegetable farming

2.1.3. International experiences in GAP application and lessons for Vietnam

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.
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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
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2.2.3. Government-related factors
The Government may promote GAP application through:
* Management
* Support
Government-related factors affecting GAP application include:

Customer-related factors
Dependent variable
GAP application by vegetable
producers

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

- 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

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



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.

Vietnam

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:

3.2. Actual situation of factors affecting GAP application by crop producers in
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) farmerto-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

- Marketing by producers themselves.

(11) Support with agricultural material inputs

3.2.3.3. Difficulties in state management of GAP application in vegetable farming in
Vietnam

(12) Support with trainings
(13) Support with internal audit
(14) Support with certification

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

(15) Support with trade promotion
(16) GAP audit to producers
4.2. Quantitative analysis of factors affecting GAP application by vegetable
producers in Vietnam

4.1.1. Producer-related factors

4.2.1. Selection of ordered logit model and measurement scale of variables

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



-cut2+Z.β
P (GAP=3) = 1 - 1 / (1+ e
)
Where P (GAP=3): Probability for producers being VietGAP certified and still

(7) Customer as supermarket, retailer

applying VietGAP

(8) Customer as processor

cut1: Value of status changing from no GAP application to VietGAP-oriented
application

Government-related factors:
(9) Planning of safe crop production areas
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cut2: Value of status changing from VietGAP-oriented application to VietGAPcertified and still applying

(6) Customer as supermarket, retailer - Sthi
(7) Customer as processor - Cbien

β: Coefficients to be estimated

(8) Planning of safe crop production areas - Vung

(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

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

(8) Support with technical infrastructure - Kthuat
(9) Support with trainings - Dtao

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
17

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CHAPTER 5. GOVERNMENT STRATEGY, ORIENTATION AND SOLUTIONS
FOR MAINTENANCE AND EXPANSION OF GOOD AGRICULTURAL
PRACTICES APPLICATION IN VEGETABLE FARMING IN VIETNAM

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


resources, adaptability to climate change, protection of ecological environment in order
to effectively exploit advantages of local natural conditions.

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:

- Agriculture development must have close links with storage, processing industries
and markets; land accumulation, forming concentrated commercial production areas.

5.1.3.2. Orientation for GAP application

- Agriculture development must be linked with labor restructuring in agriculture,

- Compulsory requirements for application of technical standards of food safety
conditions during production. These technical standards will be set up in accordance

rural development, population movement, qualified human resources in order to meet
the requirements of commercial agriculture, forestry and fisheries at advanced technical
levels.

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.

- Agriculture development must have policies to ensure high mobilization of social
and natural resources, such as land, forests, sea and labor; benefits from international

- Encouraging application of all GAP criteria as follows:

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;

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

Management
objective
- Food safety
- Traceability

Producer
- Input
- Production

- Environment
protection

- Ouput


(2) Support with agricultural material inputs

(4) Support with certification
(5) Support with trade promotion

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

(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.

21

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- 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



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

- 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.