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

Abstract

Results are reported of a study of the income and cropping systems of peri-urban vegetable farmers around Ho Chi Minh City, Vietnam, as well as the constraints and opportunities for vegetable production and marketing. Urban population growth is fuelling the demand for timely supplies of fresh vegetables. 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 ha), 65% which are de facto owned and with about 60% dedicated to vegetables. Most vegetable farmers also grow rice and/or groundnuts, while cabbage is the most commonly grown vegetable crop. Vegetables provide about $1000 total revenues, or $650 added value (returns to labour, land and management) per farm per year. Added value per ha per day of vegetables is double or more than that for rice, providing employment for five or more times the number for rice, despite very high labour use. The negative correlation between farm size and cropping intensity suggests that labour is a factor limiting vegetable production enterprises. One of the major demands on labour 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, are the most commonly cited constraints. 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.