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Decision and Policy Analysis Research Area – DAPA

Update on market linkages in Vietnam: 2 years later

The face of market access in Vietnam

In addition to the finalization of the SADU project in Laos which we mentioned earlier this week, CIAT also conducted similar work in the uplands of Vietnam from 2003 until the end of 2009. Final reports on that work have been submitted and the project officially over for two years now. However a few weeks ago Cu Thi Le Thuy from CIAT’s Hanoi Regional Office payed a visit to one of the communities supported by SADU Vietnam.

Thuy visited chayotte growers CIAT had partnered with in 2008 and 2009 to see how they were progressing. The farmers are located in 4 upland communes named Quyet Chien, Ngo Luong, Nam Son and Bac Son that belong to Tan Lac district, Hoa Binh province. The ethnic group is Muong.

During CIAT’s support, work focused on developing farmer-traders who were able to transport chayotte from upland villages over poor roads to the major highway leading to the dynamic markets of Hanoi. During that time, CIAT helped identify market opportunities, provide market information, train farmers as collectors and provide support to local and regional authorities on effective policies. As a result, chayotte production grew from less than 4 Ha. to nearly 20 Ha. with more than 270 growers by the end of 2010.

What Thuy found on her return visit was even more positive. Overall chayotte production now accounts for nearly 60 Ha. and involves a total of 600 farmers. In addition, the rapid growth of production has made this area attractive to larger traders from the Hanoi wet-market who are now buying directly from farmers with their own trucks. This improved market linkage has generated increased sales for farmers as well as 100 full-time sorting and packing jobs worth US$ 190 a month per person. In addition, the market traders are now promoting additional crops such as mushrooms, mustard greens, ginger and chili given the positive environmental conditions and existing market linkages. This will allow farmers to continue to diversify their production in line with market demands.

While still too early to call a full-blown success, this case shows how smart interventions conducted at a pilot scale can lay the groundwork for larger change.

For more information on other results from SADU Vietnam results in contract farming with cassava and persimmon growers, please download Thuy’s recent presentation: SADU Vietnam

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