Profitability and sustainability of peri-urban vegetable production systems in Vietnam

Abstract

Urban populations in Vietnam are growing up to almost four times as fast as in rural areas, fueling the demand for timely supplies of fresh vegetables to cities. Much of this increased demand, particularly for the more perishable species, is satisfied through peri-urban production which has significantly increased since the change from centrally planned and collective systems to a market economy. Around Ho Chi Minh City farms are small (on average about 0.8 hectare), two-thirds which are de facto owned and with about 60% dedicated to vegetables. Most vegetable farmers also grow rice and or groundnut, while cabbage is the most commonly grown vegetable crop. Vegetables provide about S1000 total revenues, or S650 added value (returns to labor, land and management) year-1 farm-1. Added value day-1 hectare l of vegetables is double or more than that for rice, providing employment for five or more times the number for rice, despite very high labor use. The negative correlation between farm size and cropping intensity suggests that labor is a factor limiting vegetable production enterprises. One of the major demands on labor is for irrigation. Major input costs relate to organic materials, chemical fertilizers and pesticides, although much variability exists between crops. Pests, and low and variable vegetable prices, were the most commonly cited constraints. The latter is subject to previously unknown market forces, while for the former some integrated pest management practices are being used. There is a clear trough in vegetable supply during August to October following the hot-wet months, and an apparent overuse of chemical fertilizers and insecticides. Lack of communal purchase of inputs and marketing limit the success of market-oriented vegetable farms.