World Food Policy • Vol. 3, No. 2 / Vol. 4, No. 1 • Fall 2016 / Spring 2017
What shapes the governance of the
dairy value chain in Vietnam? Insights
from Ba-Vì milkshed (Hanoi)
Mai-Huong Nguyen 1 , Guillaume Duteurtre 2 , Paule Moustier 3
Abstract
Vietnam has experienced a rapid growth in the dairy sector since
the early 2000s. However, the organization of the sector is said to
be inequitable and its motivational mechanisms are not sufficient
to ensure the development of smallholder farmers. To assess small-
holders’ prospects in the upgrading process of the whole dairy
sector, we conducted a study in Ba-Vì district, the largest “milk-
shed” in the Red River Delta, which has undergone a remarkable
transition from state-owned concentrated production to small-
holder farms. The study focuses on value chain governance and
upgrading strategies. The local dairy value chain is dominated by
smallholders and characterized by contractual relations between
private milk collectors and industrial, semi-industrial, and cottage
processors. The local chain is featured by a mixed relational-cap-
tive governance pattern. Relational governance characterizes the
two sub-channels in which small-scale industries operate. Captive
governance describes the leading role of a medium-size dairy firm
that has invested in UHT processing facilities and benefited from
support from the local government. The strong role of public au-
thorities and some challenges for chain upgrading are discussed.
Keywords: dairy sector, value chain governance, livestock devel-
opment, Vietnam
Resumen
Vietnam ha tenido un crecimiento rápido en el sector lechero des-
de los primeros años de la década del 2000. Sin embargo, se dice
que la organización del sector es inegalitaria y sus mecanismos
1
2
3
RUDEC/ IPSARD, Hanoi, Vietnam/ CIRAD-MOISA, Montpellier, France.
CIRAD, UMR SELMET, Montpellier, France.
CIRAD, UMR MOISA, Montpellier, France.
57
doi: 10.18278/wfp.3.2.4.1.4