What shapes the governance of the dairy value chain in Vietnam ? Insights from Ba-Vì milkshed ( Hanoi )
The current certification trademark has contributed to the higher price of the local milk in the market . However , the upgrading to protected geographical indication ( PGI ) would be strategic in view of a stronger quality label as an integral attribute to the sustainability of the products in the market . Plus , PGI strategy will further valorize local natural resources , local know-how and the proactive participation of territorial organizations and actors to the sustainable and inclusive development
Institutional framework and enabling environment
Reardon et al . ( 2012 ) argued that the dynamics of the food chain in Asia is driven by economic development and public actions . Public services contribute to the upgrading and modernization of the value chain . The MOU between IDP and district government ( 2009 ) and the processing plant built by IDP on the land of CFRC are outstanding examples of public-private partnership in the agri-food sector . The Livestock Restructuring Plan ( 2014 ) converges with the Livestock Development Strategy ( 2008 ) in orienting the focus of dairy production in traditional regions , including Ba-Vì . Apart from controlling imports of milk powder and milk prices , the support provided by the State ( technical assistance , credit , and building infrastructure ) incentivizes dairy production , improves market connections and promotes market integration . At the provincial and district levels , strong local government
77 involvement is apparent in economic , technical , organizational and other angles . However , the definition of quality is not shared by all the actors in the chain .
Dairy industry , as a component of livestock sector is proved to be negatively affected by increasing international integration , notably TPP ( VERP 2015 ). Import of livestock and livestock products , especially dairy products , from countries of comparative advantages ( New Zealand , United States ) is on rise . From the perspective of consumers and importers , the dairy market becomes more competitive after tariff removals , but it uncertainly could help domestic prices fall . While dairy ( processed ) products will suffer more from acute competition of imported products , raw milk can take advantage of natural trade barriers ( i . e . perishability of fresh milk ). Competition pressure mainly comes from powder milk . Short-term impact is not really clear , but to ensure the long run , it is necessary to push sector restructuring to raise quality and competitiveness ( dairy zoning , feed crop production , control over imported powder milk ). Vietnamese dairy enterprises have to invest into modern and advanced technology and sustain their market shares . Additionally , given imprecise packaging regulations and insufficient quality control as institutional bottlenecks ( Pedregal and Nguyen 2009 ), it requires transparency in defining fresh milk , publicizing information of milk products to protect benefits consumers and businesses . Moreover , the prices of milk products must be under good control to ensure