2018, Volume 21, Paper 6

ISSN: 1442-6951

Solutions to improve the value added of the rubber value chain in the Central Highlands of Vietnam

Nguyen Thi Thuy Hanh – University of Danang, Vietnam.

Abstract

Rubber is one of the major export items from Vietnam and the Central Highlands is the second largest area of rubber production in Vietnam. The rubber industry is crucial to socio-economic development of the region. This paper analyzes the rubber value chain in the Central Highlands, estimates the added value of different value chain actors and proposes solutions to improve this value chain. The results show that the distribution of profits amongst the actors is unequal. Smallholders make the least benefit of all actors, accounting for only 10 per cent of total profits. The greatest added value is made by commercial manufacturers, accounting for more than 50 per cent of total profits. In order to develop the rubber industry sustainably in the future, a combination of solutions is proposed such as cost reduction strategies, technological improvement, promoting cooperation between actors in the chain (both horizontal and vertical linkages) and developing better information and forecasting systems.

Key words: rubber, Vietnam, Central Highlands, value added, value chain.

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