Regional Economic Integration and Risks for Agricultural Products: A Banana Value Chain Analysis in Huong Hoa District, Quang Tri Province, Vietnam

Bui Duc Tinh and Pham Xuan Hung
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Bui Duc Tinh: College of Economics, Hue University, Hue, Vietnam
Pham Xuan Hung: College of Economics, Hue University, Hue, Vietnam

International Journal of Applied Logistics (IJAL), 2020, vol. 10, issue 1, 27-40

Abstract: This article aims to analyze the impact of regional economic integration on agricultural production risk in the case study of banana value chain in Huong Hoa district, Quang Tri province, one of the provinces located on East-West economic corridor. The article utilises methods of value chain analysis that is mainly based on descriptive statistical analysis, combining with qualitative and quantitative analysis to describe the structure, mechanism of operation and the creation of values. The research results indicate that the bananas are consumed in both the domestic and abroad market, namely: 80% of Huong Hoa banana is consumed in the Chinese market, and 5% is exported to the Thailand market and the 15% remaining is for the domestic market. Banana farmers are the agents holding the highest financial position on all three indicators of cost, marginal revenue and profit, but the least of benefit in channels in all three markets: China, Thailand and domestic market. The study also points out that the highly dependent degree of Chinese market is one of the main factors creating instability and unsustainability of the banana value chain in Huong Hoa district in the long-term. This article highlights the risks of agricultural products (cases of bananas) under the regional economic integration process.

Date: 2020
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