Giải pháp nâng cao giá trị gia tăng sản phẩm lúa gạo góp phần nâng cao thu nhập cho nông hộ nghèo trồng lúa ở tỉnh An Giang (3)

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MINISTRY OF EDUCATION AND TRAINING

CAN THO UNIVERSITY

LA NGUYEN THUY DUNG

SOLUTIONS FOR RICE VALUE ADDED
AND THE INCOME FOR POOR RICE FARMING
HOUSEHOLDS IN AN GIANG PROVINCE

ABSTRACT OF DISSERTATION
Specialization: Agricultural Economics
Code: 62 62 01 15

Can Tho, 03-2017

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The research was completed at Can Tho University

Supervisor: Assoc. Prof. Mai Van Nam

Opponent 1:

Opponent 2:

The dissertation will be defended before the council of the
school level at:

....... hour ........ date ......... month ........ year ..........

Learn about the dissertation in the library:
- Learning Resource Center – Can Tho University
- Vietnam National Library

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LIST OF PAPERS RELATED TO THESIS
1. La Nguyễn Thùy Dung và Mai Văn Nam (2015). Analysis of the
financial performance of rice producing households in the model
associated with the enterprise in An Giang province. Journal of
science, Can Tho University, Volume 36d, page from 92 to 100.
2. La Nguyễn Thùy Dung và Mai Văn Nam (2015). Household capacity
in business linkage in An Giang province. Journal of science, Can
Tho University, Volume 38d, page from 25 to 33.
3. La Nguyễn Thùy Dung (2015). Analysis of determine factors
affecting the poor rice farmers’income in An Giang province.
Proceedings of Scientific Conference of socio-economic
development in 2015 MD. Publicer CTU, page from 175 to 186
4. La Nguyễn Thùy Dung và Mai Văn Nam (2016). Analysis of
production efficiency of the poor and non-poor rice-farming
households in An Giang province. Journal of science, Can Tho
University, Volume 46d, page from 30 to 39.

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CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
This study demonstrates the urgent and high practical
significance based on the following issues: (i) An Giang, a province
is located in the region upstream of Long Xuyen Quadrangle, plays
an important role in rice production: volume ranks second in the
region (after Kien Giang) and productivity ranks first period 20112014 (General Statistics, 2015); (ii) An Giang is also one of the first
provinces producing rice in the "Large Rice Field model"; (iii)
Sustainable economic development accompanied by increasing
income, poverty alleviation for the people, especially the poor, are
the priorities of government; (iv) Rice chain through many
intermediate stages, the value added of the whole sector is lower and
lower. Yield increases constantly year by year, but farmers’profit is
declined because of price instability and high production costs,
particularly the poor households.
Consequently, these issues need to be addressed are: (i) how
much value added is made? (ii) Is there a difference whether or not
the value added made by rice farmer groups; (iii) How to improve the
value added and to improve incomes for rice farmers, especially the
poor farmers in An Giang province? Therefore, the study of solutions
to improve the value added rice products contributed to improved
income for poor households in An Giang province. This should be
considered as a subject with high imperatives.
1.2 RESEARCH OBJECTIVES
1.2.1 General objective
The general objective of thesis to analyze the value added in the
rice value chain, analyze the impact of the value added to the poor

farmers’ income in An Giang province, simultaneous detection of
bottlenecks need to improve as a basis for proposing solutions to
enhance the value added and improve the poor farmers’ incomes in
rice production in An Giang province.

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1.2.2 Specific objectives
Specific research objectives of the thesis should be addressed as
follows: (i) analyze the status of rice production, processing and
consumption of rice in An Giang province; (ii) analyze value-added
and value added distribution among stakeholders involved in the rice
value chain; (iii) analyze the contribution from value added to poor
farmers’ income; (iv) propose solutions to enhance the value-added
for rice products contributing to improve the income for poor
households in An Giang province in the near future.
1.3 RESEARCH QUESTIONS
In this thesis, the research questions should focus on the
following: (1) What is the situation of paddy production in An Giang
province in the 2011-2014 period like? What is the situation of the
rice processing and consumption in An Giang province like? (2) In
recent years, how has rice value chain in An Giang operated like?
How much does each stakeholder involved in the value chain
created the value added for the rice products like? (3) What
factors influence rice farmers’ income? Is distributed value-added
that affect rice farmers’ income in An Giang or not? (4) What are

proposed solutions and recommendations for improving value-added
and the poor farmers’ income in An Giang province?
1.4 RESEARCH OBJECTS AND RESEACH SCOPE
Research objects: the key objects of the thesis is rice value chain
in An Giang province, the value added is made by each stakeholder
involved in rice value chain and net value added is distributed to each
stakeholder, particularly for the poor rice farmers in the research
area. Therefore, the solution to enhance the value-added rice products
contribute to improving poor farmers’ incomes is also one of the
main research objects of the thesis. Thesis researches winter-spring
crop rice value chain in An Giang province, and not focus on byproduct in the rice value chain.
Respondents: poor and non-poor rice farmer groups, traders, rice
wholesalers/retailers, rice processing mills, food companies. The

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thesis does not examine end-consumers in the domestic market as
well as in the foreign market.
Space scope: According to statistics on rice production area,
production, yield and the poverty rate for each administrative unit in
An Giang province, research is carried out mainly in five districts
(Chau Thanh, Chau Phu, Cho Moi, Tri Ton and Tinh Bien). Research
space of the stakeholders in the value chain was expanded by the
method of linking the value chain of GTZ (2007).
Time scope: the research data on the rice value chain in An Giang
is the data of the winter-spring season of 2014. It was the main crop

of the farmers and is the lastest time of study.
CHAPTER 2: LITERATURE REVIEW
2.1 RESEARCH FOR THE VALUE CHAIN
Rice value chain in Mekong Delta consists of five functions:
input, produce, procurement, trade and consumption. There are two
main market channels in the rice value chain: domestic channel and
export channel (Vo Thi Thanh Loc and Nguyen Ngoc Chau, 2009).
In particular, export rice value chain mainly undertaken by the
company. In addition, the farmer’s profit is lowest in both the
domestic and export rice value chain, resulting in farmer’s profit is
much lower compared to other stakeholders (Vo Thi Thanh Loc and
Nguyen Phu Son, 2011). Farmers play a major role in the rice
production. However, in fact, the rice producers in the Mekong Delta
obtained only 34% of the total value added in the exporting rice value
chain (World Bank, 2011). The highest value of the agricultural value
chain are made outside the territory of Vietnam, such as processing,
distribution and trade; production stage is the lowest profit while
consumption reached the highest profit (Nguyen Van Bo and Dao
The Anh, 2013). The weakest point in the rice value chain is rice
farmers, because this is a discrete set of millions of farmers on their
fields, but each person has different behavior. It is the enlargement of
the force traders to make the relationship between farmers and

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companies exporting quite loose, the farmer’s profit is distorted (Vo

Hung Dung, 2012).
2.2 RESEARCH FOR VALUE CHAIN APPROACH
The value chain approach proposed and applied by GTZ, ACDI /
VOCA, and M4P applied for value chain research in Vietnam and
other developing countries. Besides, the methodology for analyzing
commodity by FAO (2005) and analysis of competitive advantage by
Michael Porter (1985) is also widely used. Vo Thi Thanh Loc and Le
Nguyen Doan Khoi (2011) have used the synthetic approach of
Kaplinsky and Morris (2001), Recklies (2001), GTZ (2007) and M4P
(2007) to study the rice value chain in the Mekong Delta. Tran Tien
Khai (2011) also applied the approach of GTZ (2007), M4P (2007)
and FAO (2005) to conduct research and the operational structure of
the coconut value chain in Ben Tre. Mai Van Nam et al (2010) used
the GTZ (2007) value chain approach for the economic analysis of
rice value chain in Dong Thap province. Along with that, Nguyen
Thi Tram Anh and Ngoc Van Bach (2012) based on the Value Links
by GTZ (2007) to analyze the rice value chain in Kien Giang
Province. Nguyen Quoc Nghi (2015) when analyzing the value chain
in Tien Giang Hamlet used the "input" approach for the efficiency of
agricultural production of Farrell (1957) and "output" of the value
chain Kaplinsky & Morris (2001), method of link value chains GTZ
(2007) and improve the market for the poor (ADB, 2007).
2.3 VALUE CHAIN METHODOLOGY
To analyze the complete and accurate agricultural value chain,
the researchers apply both qualitative and quantitative analysis
method. Tran Tien Khai (2011) have used the specific techniques of
qualitative analysis such as sampling purpose, open data collection,
text analysis, secondary data, synthesize the meaning and
interpretation the results to find out the characteristics of the coconut
value chain in Ben Tre, advocacy process, interaction between groups

of stakeholders, and between system value chain and impact on its
policies. Along topic, Nguyen Phi Son (2012) has used the SWOT

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matrix to provide strategic development value chain grape-applegarlic products in Bind Than.
The most quantitative method using is descriptive statistical
method, analyzing economic value chain method, benefit-cost
method, production function, the Cobb-Douglas function and cross
tabulation analysis. Vo Thi Thanh Loc and Nguyen Ngoc Chau
(2009) had applied statistical descriptive method, benefit-cost
method, cross tabulation analysis to study the rice value chain in Can
Though. Mai Van Nam et al (2010) using descriptive statistical
method combined with benefit-cost method to analyze the economic
value chain of rice in Dong Thap province. Nguyen Quoc Nghi
(2015) used data envelope analysis method (DEA) to evaluate the
effectiveness of poor pineapple producers. In addition, the author also
uses linear regression method to determine the elements belonging to
the household resources affect pineapple production efficiency of the
poorer households, analysis of value-added products and the
pineapple value added distribution between the stakeholders in the
value chain. Use SWOT matrix analysis and expert consultation as a
scientific basis for proposing solutions to improve value-added
products contributed to improved income for poor households in Tien
Giang Province.
2.4 SAMPLING METHOD

Vo Thi Thanh Loc and Phu Son Nguyen (2011) carried out
research in the Mekong Delta rice value chain was sampled by a
convenient method in the communes of every district and each
province based on criteria and rice production area. Tran Tien Khai
(2011) were sampled according to the non-probability method,
namely sampling proportional norms combines convenient sampling
carried out research on the coconut value chain in Ben Tre by
establishing a list paradigm of farmers is nearly impossible to
implement in practice. Nguyen Phu Son et al (2012) choose a
convenient sampling method for surveying data from a study of the
apple-grape-garlic value chain in Ninh Thuan. Farmers are selected
by a convenient method and the stakeholders selected chain link

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nature, derived from the producer. Next stakeholder sells their
products to the other, where they will continue to gather information
on the participants in the chain. Nguyen Quoc Nghi (2015) made
research on the pineapple value chain in Tien Giang province
conducted the survey stratified according to criteria pineapple
cultivation area, business area of the actors in the value chain and the
poverty rate. Next, a test conducted by the method of quotas (quotas)
to ensure proportional representation of households (poor and nonpoor households); the remaining stakeholders in the value chain is
selected by way of the chain link GTZ (2007).
2.5 OVERVIEW OF LITERATURE REVIEW
The main research areas of literature review: analysis of rice

production situation, evaluate the efficiency of rice production,
analyze and evaluate the effectiveness of rice distribution channels,
analysis of rice value chain, analysis of risks and effects of policies to
the chain stakeholders, develop strategies and solutions to improve
the competitiveness for the rice industry. The Theory (theoretical
basis) was used for the study: the value chain of many authors like
Kaplinsky (1999), Kaplinsky and Morris (2001), Porter (1985),
Gereffi (1994, 1999) and the theory of "link-Value Links value
chain" (2007) of the GTZ Eschborn; five competitive pressures
model of M. Porter; theory of comparative advantage; competitive
advantage.
These analytical methods have been applied: descriptive
statistical method, method of economic analysis value chain, benefitcost method, production function and the Cobb-Douglas function
profitability analysis of factors affecting financial performance,
cross-table analysis (cross - tabulation), data envelope analysis DEA.
The convenient method is used by most of researches with the first
stakeholder is farmer, because of no overall figures. The remaining
stakeholders in the value chain are selected by way of the chain link
GTZ (2007).
However, the studies only focused on the rice value chain in
general that no find out what are differences between the value

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chains. In addition, the methodology of the research chain is largely
qualitative methods.

2.6 APPROACH METHODOLOGY AND RESEARCH
FRAMEWORK
Thesis using the value chain approach of Kaplinsky & Morris
(2001), method of link value chains GTZ (2007) and improve the
market for the poor (ADB, 2007). Based on the approach, inheritance
research results at home and abroad, the research framework of the
thesis is proposed as follows.
With the proposed research framework, the thesis describes the
activities of the stakeholders involved in rice value chain in An
Giang province, mapping the rice value chain with participation of
poor and non-poor households to find out the difference between the
chains.

Figure 2.1: Research framework
Source: Proposed by author

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CHAPTER 3: METHODOLOGY
4.1 DATA COLLECTION
3.1.1 Secondary data
The secondary data is collected from the Statistical Yearbook of
the An Giang Department of Statistics (2015), Department of Labor,
Invalids and Social Affairs of An Giang province (2014), Department
of Agriculture and Rural Development. In addition, the thesis also
used the information on the website of Vietnam Agriculture, Vietnam

Food Association, An Giang Department of Industry and Commerce,
Journal of CTU…
3.1.2 Primary data
Primary data and information are collected by 2 methods, which
is interview with the participation and direct interviews each
stakeholder involved in the rice value chain in An Giang with
appropriate sampling method .
♦ Convenient method
First, the thesis use criteria largest rice growing area and the high
rate of poor households to conduct stratified survey areas. Then,
based on the list of poor households in the locality and information of
agricultural workers, farmers selected thesis rice under the poor, not
poor.
Convenience sampling method: is used to select 250 farmers grow
rice in 5 districts (Tri Ton, Tinh Bien, Chau Phu, Chau Thanh and
Cho Moi), due to the determination of the overall rice farmers,
especially the poor households in An Giang province is almost
impossible to identify. Since then, the work of establishing a list of
paradigm can not be achieved while the actual conduct.
♦ The method according to the chain link GTZ (2007)
If rice farmers in An Giang is selected by the method of
stratified-convenient, the other participating agents rice value chain
was selected by the method according to the chain link GTZ (2007),
with the starting point from rice farmers.

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Table 3.1: The object survey of the thesis
No Stakeholders in Number of
Data collection method
the chain
Observation
1
Agricultural
5
The method of liking the
supplies dealers
value chain of GTZ (2007).
2
Seed production 5
The method of liking the
facilities
value chain of GTZ (2007).
3
Farmers
250
Non-random
methods
(convenience)
4
Traders
14
The method of liking the
value chain of GTZ (2007).
5
Processing

5
The method of liking the
businesses
value chain of GTZ (2007).
6
Food companies 4
The method of liking the
value chain of GTZ (2007).
7
Wholesalers
/ 8
The method of liking the
Retailers
value chain of GTZ (2007).
Total
291
Source: Survey data, 2014
This method is done because: (1) this is the way a lot of research
has been done, especially when the research value chain of
agricultural products; (2) ensure the scientific and continuity between
the chain actors; (3) facilitate the travel agents surveyed.
3.3 DATA ANALYSIS
The thesis uses the data envelope analysis (DEA) method to
evaluate the efficiency of production of paddy farmer groups, find
out the weak of the manufacturing process. In addition, linear
regression models were used to determine the efficiency of
production and paddy farmers’ income affected by these factors.
Value stream maps, value-added, value-added distribution are
calculated through value chain analysis toolkit. This is the scientific
basis for proposing solutions to improve rice value-added and poor

rice farmers’ income in An Giang province.

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CHAPTER 4: FINDINGS AND DISCUSSIONS
4.1
SITUATIONS
OF
RICE
PRODUCTION
AND
CONSUMPTION OF THE POOR HOUSEHOLD
Poor farmers cultivate average 2 crops/year, while the non-poor
farmers produce an average 3 crops/year. Currently, there are three
varieties are selected to produce (OM4218, OM6976 and IR50404)
by poor households. IR50404 are choose to plant by most of poor
farmers (95.7% accounted for). 48.9% of non-poor households have
choose OM4218 and 17.8% of non-poor chose OM6796 to grow in
winter-spring crop. 61.4% poor farmers buy seeds from local seed
production. Paddy farmers can poduce seed from the previous season
(30%). Moreover, they can buy seed from neighbors (8.6%). For the
non-poor households to 45.6% of them cultivate supplied seeds by
cooperated enterprise. As the result, this is the big difference of rice
seed origin between the two farmer groups.
According to statistics there are 97.1% of poor households do not
apply technological advances to production. This has affected the

productivity and production of rice to achieve in their seasons.
Among poor households to 64.3% of households use family funds to
invest in rice farming. Meanwhile, the group of non-poor households
have access to loans from banks (accounting for 10.5%), so the use of
funds from the family to the relatively low rice production
(accounting for 8.9%). Rice land area of very small poorer
households, averaging 0.62 ha / household, the lower the rice
growing area in the Mekong Delta on average (about 1.29 ha /
household) but higher than the average land area country (is 0.44 ha /
household). Up to 74.3% of poor households surveyed had land less
than 1 ha.
♦ Efficient production of poor farmers groups
Technical efficiency (TECRS): TECRS of poor farmers achieved
relatively good level with the corresponding value is 0.84. This
coefficient is less than 1 means that the farmer have not yet reached
the optimal TE, in other words, rice farmers should actively

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participate in technical training, participation in local associations,
proactive approach credit funds to be able to increase technical
efficiency in the next season, reaching maximum productivity. For
poor households, the TECRS width from 0.52 to 1.00. This breadth
said the poor were concentrated and have invested in the production
of rice should achieve a high technical efficiency. Among
households, approximately 40% of total households reached 90%

showed growing rice is traditional work should help farmers achieve
a high technical efficiency.
Allocative efficiency (AECRS): If the poor households reached
TECRS relatively high level, the coefficient AECRS, they only reached
an average of 0.57. Thus, the inefficiency of the distribution of
resources in the rice-growing activities of the group of poor
households remains high. Which is up to 14.3% of poor households
have AECRS 0 to 10%, and only 1.4% of the total number of poor
households reached 90% AECRS. Therefore, this AECRS huge widths
(0.00 to 1.00). Efficient distribution of resources by groups of poor
farmers grow rice in An Giang province is not high at the time of the
survey due to the allocation of resources for production is irrational,
prices of inputs unstable and high spending increased, thereby
reducing the efficiency of distribution.
Cost effectiveness (CECRS): The poor households had CECRS
coefficient smaller than 1, that is yet to reach the optimal level, so the
technical efficiency is high while the effective distribution of
resources in production is limited should result in cost-effective is not
high. Specifically, the poorer households only factor CECRS average
at 0.50.
♦ Effective on the size of the poor households
The study results showed that rice production activities of the poor
farmers in the region are increasing the efficiency of scale (IRS)
accounted for 51.4% of surveyed households. Farmers in the region
are optimal in terms of scale or otherwise than no effective change of
scale (CRS) accounted for 45.7%. Some farmers to reduce
investment scale (DRS) to increase the production efficiency is very

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low proportion (2.9%). Thus, the majority of poor rice farmers in An
Giang province in recent years has been pretty good advantage of
resources in the production process. For 2 farmers in the region by
size reduction can reduce the amount of fertilizer, medicine,
employer ... to achieve optimal production efficiency in the future.
4.2 THE VALUE CHAIN OF RICE PRODUCTS IN AN
GIANG PROVICE
4.2.1 Describe the value chain of rice product in An Giang
Province
Looking at Figure 4.1, we see rice value chain in An Giang
province consists of 5 agents are rice farmers, traders, millers, food
companies and agents. Farmers (including the poor and non-poor) to
perform the function of production, in which poor farmers
contributed 6% of the total output of the whole string. Collection
functions are performed traders and farmers to sell 35.7% of total
output to traders. In addition, farmers can choose to sell their
products for millers or food companies with the corresponding rate
was 2.5%, respectively and 61.8%. Processing functions are both
actors are 2 mills and food companies make. Agents are important
commercial agent brought 20.7% of total output to the local market
chains, and 79.3% of the entire food chain company exported abroad.
The diagram (Figure 4.2) on the rice value chain shows that poorer
households are only traders only partner wheat consumption

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Source: Survey of 250 farmers growing rice in An Giang, 2014
Figure 4.1: Diagram of the rice value chain in An Giang

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Source: Survey of 70 poor rice farmers in An Giang, 2014
Figure 4.2: Diagram of the rice value chain in An Giang province
with the participation of poor households

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4.2.2 Analysis of economic integration rice value chain in An
Giang province
Aggregate economic outcomes rice value chain in An Giang
province with the participation of both groups of poor farmers and
poor farmers are not calculated and presented in Table 4.1

Total production of rice value chain in An Giang province is
2.737 million tonnes in 2014, of which approximately 2.170 million
tonnes were exported (representing 79.3% of the total output of the
whole string). This year, revenues are generally rice in An Giang
Province is 63,388.8 billion focuses mainly on the actors: Food
Corporation (44.4%), farmers (32.0%) and trade driving (12.6%).
Total profit was achieved 8410.1 billion, while production by farmers
accounted for 75.5% implemented, followed by food companies
accounted for 14.9%. However, the share of profit / subject / year by
farmers and dealers (all accounted for 0.01%) was the lowest in the
series, due to the average rice production / household in very low
compared to food companies and mills.
Rice export chain earned revenues of approximately 47,500
billion and bring about a higher profit margin domestic chain 4
trillion. Specifically, exports contributed chain gross margin 75.4%
73.8% of total revenue and the rice value chain in An Giang province
in 2014. The rest of the domestic rice value chain contributors. Thus,
the total profit and total revenue of An Giang rice chain largely due
to export rice to bring chains. This is also the general trend of the
Mekong Delta rice industry in recent years, because in the years
2012-2013, as many as 65-70% of rice production in the Mekong
Delta have been exported. However, in time to come, should focus
more on domestic rice chain due to: (1) the price of rice is found to
have very high volatility, (2) the power to impose the prices of the
exporters not great , (3), Vietnam's rice exports will be subject to
strong competition from the emerging rice exporting countries like
Cambodia and Myanmar (Nguyen Duc Thanh et al, 2015).

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Table 4.1: Analysis of the economic aggregate rice value chain in An
Giang Province in 2014 with the participation of groups of farmers
growing rice
Indicators
Farmer
Domestic rice value chain
1. Production (tons)
566.488
2. Selling price (VND /
kg)
7.525
3. Profit (VND / kg)
2.321
% Profit
53,4
4. Total profit (billion)
1.314,7
% Total profit
63,5
5. Total revenue (billion)
4.262,8
% Total revenue
25,2
Export rice value chain
1. Production (tons)
2.170.170

2. Selling price (VND /
kg)
7.525
3. Profit (VND / kg)
2.321
% Profit
67,8
4. Total profit (billion)
5.036,4
% Total profit
79,4
5. Total revenue (billion)
16.330,4
% Total revenue
34,4
Domestic and Export rice value chain
1. Production (tons)
2.736.659
2. Selling price (VND /
kg)
7.525
3. Profit (VND / kg)
2.321
% Profit
54,2
4. Total profit (billion)
6.351,0

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Trader

Mill

Company

Agency

279.139 106.730 347.556

566.488

8.287
333
7,7
92,9
4,5
2.313,2
13,7

10.471
763
17,6
432,1
20,9
5.931,7
35,1

8.904
388

8,9
41,4
2,0
950,3
5,6

9.901
540
12,4
187,8
9,1
3.441,1
20,4

697.848 27.367

2.170.170

8.294
337
9,9
235,5
3,7
5.788,2
12,2

11.580
489
14,3
1.061,8

16,8
25.130,6
52,9

8.790
275
8,0
7,5
0,1
240,6
0,5

Total

4.345
100,0
2.068,9
100,0
16.899,1
100,0

3.422
100,0
6.341,2
100,0
47.489,8
100,0

976.987 134.096 2.517.726 566.488
8.292

336
7,9
328,5
17

8.881
365
8,5
49,0

11.348
496
11,6
1.249,5

10.471
763
17,8
432,1

4.281
100,0
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% Total profit
75,5
3,9
0,6

14,9
5,1
5. Total revenue (billion)
20.593,1 8.101,4 1.190,9 28.571,7 5931.7
% Total revenue
32,0
12,6
1,9
44,4
9,1
6. Aveage rice production
/ stakeholder / year (tons)
4,4
149,7
1.247
141.515
9,3
7.
Aveage
rofit
/
stakeholder/ year (million
VND)
10,1
50,3
455,4
70.232,5 7,1
% Profit / stakeholder /
year
0,01

0,07
0,64
99,26
0,01
Source: Survey of 250 farmers grow rice and 4 actors in the rice
value chain in An Giang, 2014
4.2.3 Analyzing the impact of the value added to the income of
rice farmers in An Giang
Model study of factors affecting the income of rice farmers in An
Giang province is as follows:
INCOME =β0 + β1AGR + β2NUMBER LABOR +
β3EDUCATIONLEVEL + β4EXPERIENCE + β5GENDER +
β6TRAINNING COURSE + β7ORGANIZATION + β8TBKT +
β9AREA + β10CAPITAL + β11ADDEDVALUE
With regression models were analyzed for the two groups of poor
and non-poor households in An Giang province, we see that the
income from their rice were positively impacted by the following
factors: age, application technical, area of land, value-added with
different impact levels to each household group. Besides, the group
of poor farmers strongly influenced by factors participate in technical
training. This is entirely consistent with the reality of not attending
training poor farmers in An Giang province at the time of the survey.
4.2.4 The impact of price changes on the value added and net
value added of the paddy farmer groups
In terms of other factors (intermediate costs, costs increase) does
not change, the price reduction makes the added value and net value
added of both groups received poor and non-poor households rice in

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100,0
64.388,8
100,0

70.755,4
100,00


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An Giang province tend to decrease. Calculation results show that
when the price fell by 20%, a loss of 55 poorer households / kg.
Selling prices decreased by 30% and 40% as poor farmers make more
losses. Poor farmers groups not only suffer losses when rice price
decreased 40% compared to the selling price.
When the market price of rice increased by making value added
and net value added of both groups of farmers growing rice are
increased. Besides, the ratio of rising price makes the gap in net value
added between the group receiving the poor and non-poor households
greater.
4.2.5 The impact of intermediate costs to value added and net
value added of the paddy farmer groups
Calculation results show that when the price of rice on the market
does not change but the cost of the two groups intermediate rice
farmers will be reduced to the value added and value added increase
in their net. Overall, the cost has been reduced, the intermediate
distance of net value added between the two groups of farmers has
been shrinking. At the time of the survey, the cost of the poor
households have higher intermediate intermediate costs of non-poor

households which are attributable to poor households incur additional
charges bear by purchasing agricultural supplies. Therefore, to reduce
intermediate costs, the poor households to reduce the charges
incurred.
In intermediate cases increased costs will make the added value
and net value added of the two groups of farmers is reduced
compared with baseline. Calculation results show that when
intermediate costs increased to 40%, although no loss, poor farmers
receive only the net value added is 218 VND / kg. And while the cost
of poor farmers intermediaries increased from 50% or more, the
poorer households more and more losses. Therefore, to continue to be
profitable / kg while rice value chain participants, poor farmers need
to calculate intermediate costs rose at the lowest level, in the case of
rising input costs.

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4.3 SOLUTIONS FOR IMPROVING RICE VALUE ADDED
AND THE INCOME FOR POOR RICE FARMING
HOUSEHOLDS IN AN GIANG PROVINCE
Where poor farmers individual production
(1) Farming 2 crop / year
Poorer households should continue to produce two crops of rice /
year (instead of an increase of 3 cases / year) in order: first,
completely reduce production costs one crop; secondly, the land was
to rest to regenerate soil fertility, reduce the seasonal pressure, reduce

pests in the fields; Tuesday, have leisure time to the members of the
household can go to the service, ... raising additional income for the
family.
(2) Selection of suitable varieties
The majority of the poorer households often IR50404 rice
breeding to produce because this rice variety suitable medium soil
had lower investment costs than other varieties. For the short term,
poor farmers can still maintain rice production, but must ensure 20%
lower than the level allowed.
(3) Improve the quality of the input seed
Poor farmers need to purchase certified seed in the seed supply
base prestigious to reduce sowing seeds, less disease, less costs and
ensure productivity, from which farmers will sell easily, price high,
more economical.
(4) Actively approaching technological advances in rice cultivation
Poor farmers should actively updated information, proactive
approach to new manufacturing methods by regularly view the
extension program on television and radio; actively participate in
technical training sessions at local level; involved and associated
with the Farmers' Union to have more opportunities to exchange
information among members together.
(5) Improving access to capital
Poor farmers face many difficulties in the process of rice
cultivation due to lack of capital or capital constraints. Lack of funds
led to poorer households often have to purchase agricultural supplies

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missing from the dealer should the cost of production increased due
to the high end of the interest payment. Therefore, the poorer
households need proactive, hard to capture information about the
incentives for poor households as well as the poverty alleviation
programs of the government, funding, funding, credit supply from
non-governmental organizations to increase access to these funds.
(6) Strengthen cooperation links in production
Poor farmers need to promote the association and cooperation
with each other by engaging in agricultural cooperatives and
cooperative groups. Participation in these organizations help poor
farmers reduce production costs because they benefit directly from a
reduction in service charges (water pumping for irrigation, rice
breeding, agricultural services ...) give the members. On the other
hand, when linked together, these small farmers will have a larger
scale. Therefore, these organizations will represent links with
companies supplying fertilizer, medicines, seeds ... in large
quantities, cost, quality, and this organization will also earn a
commission from the company offering rotten. When poor farmers as
members, the income from commission also shared them. From
there, help raise incomes for poor households grow rice in a stable
manner.
(7) Enhancing access to information and markets
To actively improve market access Currently, local authorities
are cooperative, cooperatives, farmers' associations, agricultural club.
Poor farmers need positive, proactive approach to information from
these sources to always get the latest news on the market. Television,
radio and newspapers is also an important communication channel,
trusted that exploited poor farmers need to increase their knowledge

related to the production-consumption situation of rice as well as
policy to the poor (credit for poor families, poor families subsidy
policy). Besides, the neighbors are one of the sources of market
information that poorer households should listen and consult. The
active participation of the local community will help poor farmers
have a chance to expand the relationship and increase the exchange

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of information with each other.
(8) To reduce production costs in a reasonable manner, effective
Buy agricultural materials resistant, inefficient use of fertilizers
and farming methods are the traditional reasons for the cost of
production of paddy farmers of poor households than among nonpoor. Therefore, reducing production costs reasonable, the efficiency
will contribute to improving the added value and improved incomes
for poor households.
Where the production of poor farmers in the model link
For poor farmers have a chance to participate in '' large Field '' is
the first condition, the poorer households to have a spirit of
cooperation and become members of the cooperative and its members
to cooperate, by for now linked not linked contract manufacturing
and marketing of products directly to the farmers that the contract
was signed between enterprises and intermediaries or representatives
of farmer's cooperatives or cooperative groups
Join models' large Fields' ', poorer households will reduce input
costs and output by reducing the intermediation in the provision of

seeds, fertilizers, plant protection products; reduce costs by applying
the correct technical procedures; reduce costs through the
reorganization of large-scale production; reduce the cost of
harvesting and consumption. Since then, the income of poorer
households is improved. However, to the participation model is
stable, long the poor farmers need to: Comply with and implement
the requirements of the business associates as using seed supplied by
enterprises, application engineering art production under the
guidance of staff of associated enterprises, training habits production
diary notes.

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CHAPTER 5: CONCLUSIONS AND REQUEST
5.1 CONCLUSION
An Giang, the province has more than 70% of land area is
alluvial, is one of the key local rice production in the Mekong Delta
region and the country. Research on the rice value chain in An Giang
province with the participation of groups of poor and non-poor
households, the thesis concludes some problems:
First, the poor farmers in An Giang have small acreage of paddy
land, fragmentation should have difficulties in the production process
as well as the ability to individually join the production model
associated with the business is very low.
Second, the rice value chain in An Giang province includes
actors as rice farmers, traders, millers, food companies and agents.

Poorer households participated 6 market channel while non-poor
households have 11 channels.
Third, value added and net value added from manufacturing
operations of the group of rice farmers are poor lower than the value
added and net value added of the groups are not poor farmers.
Fourth, to increase income for poor farmers grow rice in An
Giang, the thesis proposes some solutions for poor farmers such as
plant varieties selected to suit each stage; improve the quality of rice
seeds; proactive approach to new technical advances in the process of
rice cultivation; cooperation and association with other farmers,
participating cooperatives, cooperative groups; reduce production
costs sensibly, efficiently; actively improve market access, access to
different funding sources.
Fifth, since these conclusions as a basis for the assertion that: (1)
distribution of value added differ greatly between actors rice value
chain from production to consumption. (2), the added value of rice
products to positively affect the income of poor farmers grow rice.
5.2 REQUEST
In addition to these achievements, the thesis still exists a certain
number of limitations such studies focused value chains Winter-

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