Evaluating WTA (Willingness to Accept) a Subsidy for Getting a VietGAP Certificate in Shrimp Farming: A Case Study in Tra Vinh Province, Vietnam.

Abstract

Along with the developing shrimp industry, the problems of environmental pollution and food safety are also important concerns. To develop sustainable shrimp farming, an eco-environmental certification is often considered by stakeholders (government, exporters and farmers). In this article, the benefits and limitations of the current incentive scheme of the VietGAP certification were explored. By using the contingent valuation method, this study surveyed 300 shrimp farmers in 10 villages in Tra Vinh province to find out what factors affect the farmers’ decisions on following the VietGAP certification (WTADecision) and how much subsidy value they are willing to accept (WTASubsidy) to pursue the VietGAP standard. The results showed that WTADecision had a positive relationship with farmer’s education levels, environmental perceptions and attitudes toward the VietGAP certificate. While those factors having negative effects on WTASubsidy, the annual income also had a slight effect on farmer’s willingness to accept the amount of the subsidy. The study’s findings suggested that the authorities should increase the subsidy at the first phase of the scheme and improve the farmers’ environmental perceptions and publicize the benefits of the VietGAP certificate to attract farmers to participate in it.