Author : Vu Thi Hai

Summary : This study analyzed the market structure, conduct and performance of the banana industry in Khoai Chau District, Hung Yen Province, Vietnam. Results showed that the region's banana industry is monopolistic competitive at farm level with low degree of market concentration (CR4 = 19.2%, HHI = 233.3 and GINI = 0.54). At trader level, market is strongly oligopolistic with highly-concentrated market (CR4 = 53.3%, HHI = 1,436.9 and GINI coefficient = 0.83).

Overall, the banana marketing system was operationally efficient. Wholesalers/brokers operated most efficiently, registering the lowest marketing cost and highest OEl. However, there are some indications of pricing inefficiency as the market participants generally obtained above-normal profit, especially in the wholesale-broker and export levels where the degree of market concentration is rather high. Producers obtained the lowest absolute net profit (15,604 thousand VND per year) and the lowest profit rate (18.7% per year), while exporters who have market power to set output and price obtained the highest absolute profit Cl ,981 ,810 thousand VND per year) and profit rate (19l. 9% per year) from their banana business.

The study recommends enhancing market competition through credit access, providing high-yield and disease-resistant varieties, training on VietGap method, establishing banana grower association, training and supporting post-harvest technology and establishing value adding enterprises.