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Fruits and Vegetables in Vietnam - International Food Policy ...

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4 Access to l<strong>and</strong><br />

4.1 Current L<strong>and</strong> Use<br />

The average l<strong>and</strong> area available to processors is around 688 hectares. This <strong>in</strong>cludes l<strong>and</strong> used<br />

for production, as well as l<strong>and</strong> used for process<strong>in</strong>g of fruits <strong>and</strong> vegetables. This figure is heavily<br />

<strong>in</strong>fluenced by the a few processors with large l<strong>and</strong>-hold<strong>in</strong>gs. Most processors have less than two<br />

hectares, but the average l<strong>and</strong>-hold<strong>in</strong>g for large processors is 2000 hectares. The l<strong>and</strong> area available<br />

to producers <strong>in</strong> the North is substantially smaller than that available to processors <strong>in</strong> the South. In<br />

spite of the small l<strong>and</strong>-hold<strong>in</strong>gs of most fruit <strong>and</strong> vegetable processors, almost 90 percent of them<br />

report that they have access to “sufficient” l<strong>and</strong> area to allow them to conduct their current level of<br />

bus<strong>in</strong>ess.<br />

Around 55 percent, or 131 of the processors had l<strong>and</strong> that they utilized for crop production.<br />

The proportion of processors utiliz<strong>in</strong>g crop production l<strong>and</strong> decreases as the size of the process<strong>in</strong>g<br />

company <strong>in</strong>creases. While 73 percent of small processors had some crop production l<strong>and</strong>, only 37<br />

percent of large processors had crop production l<strong>and</strong>. Although the use of l<strong>and</strong> for crop production is<br />

more common among small <strong>and</strong> medium firms, these enterprises have little l<strong>and</strong> so the average area<br />

allocated to crop production is around 1 hectare (see Table 5-7).<br />

The average current value of crop production l<strong>and</strong> for processors was VND1.8 billion. The<br />

value of crop production l<strong>and</strong> is similar for small <strong>and</strong> medium processors, but significantly larger for<br />

large processors. It was also larger for mixed fruit <strong>and</strong> vegetable processors <strong>and</strong> for processors <strong>in</strong> the<br />

South.<br />

Almost all (97 percent) of the processors <strong>in</strong>dicated that they had l<strong>and</strong> which they utilized for<br />

agro-process<strong>in</strong>g. Five of the small processors <strong>and</strong> one of the medium <strong>and</strong> one of the large processors<br />

<strong>in</strong>dicated that they did not have l<strong>and</strong> which they utilized for agro process<strong>in</strong>g. At least a portion of<br />

agroprocess<strong>in</strong>g l<strong>and</strong> was rented by 33 processors. Of these, 26 processors rented 100 percent of their<br />

agroprocess<strong>in</strong>g l<strong>and</strong>. The average rental cost for rented agroprocess<strong>in</strong>g l<strong>and</strong> is around VND13000 per<br />

m 2 per month.<br />

Around 32 percent, or 78 of the processors had l<strong>and</strong> that they utilized for trad<strong>in</strong>g. The<br />

proportion of processors utiliz<strong>in</strong>g l<strong>and</strong> for trad<strong>in</strong>g <strong>in</strong>creases as the size of the process<strong>in</strong>g company<br />

<strong>in</strong>creases. While 29 percent of small processors had some trad<strong>in</strong>g l<strong>and</strong>, 34.1 percent of large<br />

processors had some trad<strong>in</strong>g l<strong>and</strong>.<br />

4.2 Planned L<strong>and</strong> Uses<br />

While around 10 percent of processors <strong>in</strong>dicated that they do not have sufficient l<strong>and</strong> to carry<br />

on their current operations, around 17 percent of processors <strong>in</strong>dicated that they would be <strong>in</strong>terested <strong>in</strong><br />

ga<strong>in</strong><strong>in</strong>g access to additional l<strong>and</strong> <strong>in</strong> order to exp<strong>and</strong> their bus<strong>in</strong>ess operations. The proportion of<br />

Chapter 5 Fruit <strong>and</strong> Vegetable Processors Page 5-5

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