Private food standards, trade and institutions in Vietnam

Abstract

International horticulture markets are increasingly governed by transnational private regulations that create a new set of challenges not only for the market but also for local governance and policy regimes. Accordingly, resources from a range of international governance institutions and donors promoting development through neoliberal market rules have been directed towards ensuring that market entry barriers are not prohibitive. This paper presents the results of a recent study undertaken in Vietnam that assessed outcomes within a single value chain governed by GLOBALG.A.P, where technical and financial assistance were provided to smallholders. The constructivist approach highlights that, in addition to typical market entry barriers, additional obstacles existed that prevented smallholders from market participation. These were socially, culturally and historically situated and rooted in informal institutions. Failing to incorporate these into assistance planning may lead to the unequal distribution of development benefits associated with these changing market governance arrangements.

Keywords:

• agriculture
• GLOBALG.A.P
• horticulture
• transnational private regulations
• Vietnam

Notes

1. See also, Graffham et al. (2006), Humphrey (2008), Jaffee and Masakure (2005), Mausch et al. (2006).

2. This study focused on one particular project funded by AusAID under the CARD programme. Successive projects (037/04VIE and 029/07VIE) were financed through two funding rounds in 2004 and 2007, though the second project was essentially a continuation of the work of the first, and in this paper, is described as a single project.

3. The direct words relayed by the translator have been used in portraying the data, and the personal pronouns used (he/she/they) reference the subject(s) of the interview. Grammatical errors have not been corrected.

4. The CARD program was established as a pilot programme in 1999 and included a total of 28 projects, including ‘the dragonfruit project,’ which aimed to integrate dragonfruit supply chain/s into markets governed by GlobalG.A.P.

5. VietGAP aims to minimize the risk of hazard occurring during the production, harvesting and postharvest handling of fruit and vegetables. Like GlobalG.A.P, it is underwritten by a framework that sets out practices for ensuring food safety, environmental management, worker health, safety and welfare, and produce quality, supported by third party auditing and certification. VietGAP is a standalone certification that can act as a stepping stone for producers upgrading their production practices to align with GlobalG.A.P.