Traditional and Modern Distribution Channels for Vegetables in Vietnam: A Case Study in Hanoi City

Abstract

This study aimed to provide a clear overview of the vegetable distribution system in Hanoi city which is dominated by traditional combined with the emergence of modern distribution channels, including supermarkets. The analysis was based on secondary data sources, a primary survey among 60 vegetable farmers, and in-depth interviews with other marketing system stakeholders including two agribusiness farms, four agricultural cooperatives, trade intermediaries (five collectors, three wholesalers, and three trading companies), and three supermarkets. Comparative and descriptive statistics were applied to get the full picture of vegetable distribution system, including traditional and modern channels. While traditional distribution channels involved various intermediaries, supermarket channels tended to be shorter due to direct producer-buyer relationships. In addition, while supermarket distribution channels focused on safe vegetables, including VietGAP and organic certified vegetables, there was no difference between safe and conventional vegetables in traditional channels. Therefore, producers may get 50% higher prices when supplying supermarkets compared to traditional channels. Recommended solutions to strengthen the distribution system of vegetables are to encourage the development of agricultural cooperatives, raise vertical integration, and develop sustainable cooperation among stakeholders in the supply chain.