Author : Truong Hong Vo Tuan Kiet

Summary : Vietnam is a large mango producer in Asia and the world. The Mekong Delta is the largest mango production center in the nation. The mango subsector's opportunities and challenges strongly influence producers and other traders. A profound insight into the systematic and interdisciplinary study is established to comprehensively approach stakeholders’ economic activities. By doing so, an efficiency analysis at four levels: farming grower, trading system, marketing channel, and macroeconomic policy. The general objective of study is to determine the production and consumption efficiency of stakeholders of the Cat Chu value chain in the Mekong Delta, Vietnam, and propose strategic solutions to improve the competitiveness of Cat Chu mango solution. This study deals with four specific objectives: (i) the current situation of the Cat Chu mango distribution system, (ii) the economic efficiency of the Cat Chu mango growers, (iii) the economic efficiency of the Cat Chu mango trading system and marketing channels, and (iv) the efficiency of macroeconomic policy on the Cat Chu mango value chain.

The Cat Chu mango distribution system has five main marketing channels (three export channels 1, 2, and 3, and two domestic channels 4 and 5). The total production cost of export channel 1 triples export channels 2 and 3, doubles domestic channel 4, and is nearly fourfold the domestic channel 5. The economic efficiency of the Cat Chu mango grower was 36.2, 31.9, and 35.9 for seasons 1, 2, and 3, respectively. All Cat Chu mango trading systems of the three export channels obtain economic efficiency. The integrated EE of the Chu Cat mango value chain has revenue of USD 530.4 million and a net profit USD 54.3 million. The export channels (marketing channels 1, 2, and 3) bring  revenue of USD 135.1 million and a net profit of USD 14.1 million. The domestic channels (marketing channels 4 and 5) obtained revenue of USD 395.3 million and a net profit of USD 40.2 million.

Export channel 1 is the government's priority, including the output protection policy and added value increase policy from channel 4. Channel 4 is the second priority from the government, comprising the subsidy policy of tradable output price and added value increase policy from channel 2, the subsidy policy of tradable input and output price, and added value increase policy from channel 3. The government promotes export channel 2 through a subsidy policy of tradable input costs from channel 4. There is no government support policy for Channel 3 to export to the Chinese market by border gates. It only promotes exports in the case of free-on-board prices, and the exchange rate increases by 20%. Policy implications are recommended based on key findings from the strategy planning of SWOT analysis. It comprises 10 strategies which contribute to sustainably upgrade the economic efficiency of the Cat Chu mango value chain in Vietnam.