tailieunhanh - The dairy industry in Vietnam: A value chain approach

The main objective of this paper is providing a close look to value chain and its application in the dairy industry in Vietnam. The authors would offer some solutions to increase the value added in the dairy value chain and improvement in the income distribution in this value chain. | International Journal of Managing Value and Supply Chains (IJMVSC) , No. 3, September 2014 THE DAIRY INDUSTRY IN VIET NAM: A VALUE CHAIN APPROACH Nguyen Viet Khoi1 and Tran Van Dung2 1 2 Dept. of Int’l Economics and Business, VNU University of Economics and Business Department of International Economics and Business, VNU University of Economics ABSTRACT Vietnam lies in the area of highest economic and milk consumption growth in the world. Vietnam also increased milk yield reached the second highest in Asia with output milk consumption is increasing rapidly. However, the dairy industry in the country only satisfies more than 20% of the domestic consumption, the rest is imported from foreign. The retail milk price in Vietnam is very high; however, the raw milk prices relatively low. One explanation is the monopoly of the dairy processor in Vietnam. Three largest processors own 75% of the dairy market. They take advantage in the negotiation with farmers and actively increase the retiling price. Recently, such investigations on the processor by government officers do not take any effect in the dairy market. There is no rule controlling the increase in price yet the own suffer a lot is the final consumer. The main objective of this paper is providing a close look to value chain and its application in the dairy industry in Vietnam. The authors would offer some solutions to increase the value added in the dairy value chain and improvement in the income distribution in this value chain. KEYWORDS: Vietnam Dairy Industry; Dairy Value Chain; Vietnam Value Chain; Global Value Chain; Dairy GVC. JEL: M10, M11 LITERATURE REVIEW Nguyen Viet Khoi (2013) provided a value chain approach to the dairy industry. According to Khoi, there are five main actors taking part in the process of dairy products: Input ingredient, production activities, processing, distribution and consumption. The researcher points out that there is a “potential controversy” in the assessment of the .

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