Global value chain and food safety and quality standards of Vietnam pangasius exports

Increasing food safety and quality standards have imposed tremendous burden on pangasius market participants, and changed industry structure. The demand for safer pangasius products have encouraged the Vietnamese government to adopt its own practices, VietGAP, which encompasses all other international standards. The study examines how compliance with VietGAP and international standards influence pangasius value chain and serves as a catalyst in altering the industry structure. The author interviewed 41 processing and exporting firms and 91 farmers, and found vast changes in the structure and conduct of actors operating along the marketing chain. The value chain governance reflects its development and maturity and varies at various stages. The set of standards have fostered a number of changes in the pangasus industry in the past two decades, but the size and capacity of processing firms have amplified. The number of workers at each processing plant has also increased. There has been a slight decrease in the number of small-scale farms (less than 1.0 ha) and an increase in farms of more than 3.0 ha. The number of cooperatives has increased. The imposition of standards by the US and EU has encouraged Vietnamese exporters to search for other market alternatives. There has been improvement in marketing and a shift in exports to other import markets with less stringent quality requirements. Farmers, however, view the adoption of VietGAP as cost incurring with little benefits to them. Government must put policies in place to assist the small-scale farmers so they can meet the required standards.