Restructuring toward a modernized pork value chain in Vietnam

What is it about?

Restructuring swine and pork value chain plays important role in agriculture reformation of Vietnam, the top global pork-lover and swine producer worldwide. This study investigates the modernization of its entire swine-to-pork value chain through qualitative analysis. The results show that vertical expansion and conglomerate mergers create coordination schemes in the industries. Formal contract farming offered by giant contractor is utilized to upscale hog production. Those create full vertically integrated enterprise and other forms of the formal coordination in the chains. These are considered as the first signs of modernization in the swine and pork value chains. As consolidation begins, business environmental barriers should be removed for triggering private firms’ involvement, besides, promoting contract farming.

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Why is it important?

We investigate the overall structural changes of the entire swine and pork value chain in Vietnam that enables policies promoting for the modernized industries in the near future. Findings analyze the perspectives of coordinated swine and pork chains, but identify warning signs to social problems when number of traditional swine producers are failed in the competition from the equipped large-scale producers leading by the giant vertically-integrated contractors.

Perspectives