The Economic Impact of Supermarket Growth in Vietnamese Food Supply Chains

By Jean-Joseph Cadilhon, Andrew Fearne, Muriel Figuié, Phan Thi Giac Tam, Paule Moustier and Nigel Poole.

Published by The Sustainability Collection

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Article: Print $US10.00
Article: Electronic $US5.00

Supermarkets and other modern distribution outlets are sprouting in the cities of Vietnam to market goods to an emerging middle class, resulting in significant changes in the structure and operation of food supply chains.
The sustainability literature advocates a multiple stakeholder approach to the analysis of structural change in global food markets, yet the debate over the impact of the global expansion of supermarkets appears to take inadequate account of displacement impacts on local food economies in general and lower income groups in particular.
This paper analyses the growth of the modern distribution sector in Hanoi and Ho Chi Minh City. It then identifies the economic impacts of supermarket growth on different stakeholders in the food marketing system of Vietnamese cities.
The findings suggest that whilst supermarkets are encouraging the production of “safe” food, which is likely to have a positive impact on the environment and consumer health, the employment created by supermarkets is limited compared with traditional markets, larger-scale farming is preferred and many smallholders, traders and poorer consumers are excluded from the modern food marketing system.

Keywords: Business-to-Business Relationships, Food Marketing Systems, Sustainable Development, Supermarkets, Vietnam

The International Journal of Environmental, Cultural, Economic and Social Sustainability, Volume 2, Issue 7, pp.1-12. Article: Print (Spiral Bound). Article: Electronic (PDF File; 997.267KB).

Dr Jean-Joseph Cadilhon

Economic Analyst, Bureau of Economic Analysis and Prospective, French Ministry of Agriculture, France

Jean-Joseph Cadilhon is an agricultural economist, formerly at the French Ministry of Agriculture and Fisheries where he held portfolios on sustainability and international development. He is now Marketing Officer (Quality Improvement) at FAO’s Regional Office for Asia and the Pacific. His first degree is Ingénieur agronome from INAPG in Paris. His postgraduate education includes two M.Sc. degrees – in agricultural economics at INAPG and in public administration at ENGREF, Paris – and a Ph.D. from Imperial College London (Wye Campus) co-directed by CIRAD (France) on supply chain management in Vietnamese vegetable markets.

Dr Andrew Fearne

Kent Business School, UK

Andrew P. Fearne is Director of the Centre for Supply Chain Research, Kent Business School, University of Kent. His research interests are focused on vertical co-ordination in fresh food supply chains and the impact of collaboration on the profitability of supply chain partners. His disciplinary background is in economics, in which he gained his Ph.D. from the University of Newcastle upon Tyne.

Dr Muriel Figuié

Centre de Coopération Internationale en Recherche, CIRAD, France

Muriel Figuié is a sociologist, researcher at CIRAD (Centre de Coopération Internationale en Recherche Agronomique pour le Développement), member of the research unit “Governance and Norms in Agricultural Markets”, and based in Montpellier, France. Formerly responsible for the food consumption studies in the franco-vietnamese consortium of research Malica “Markets and Agriculture Linkages for Cities in Asia”, her main research interests are related to food behaviours, social representations of food quality and food related risks, in the context of the urbanisation of developing countries.

Dr Phan Thi Giac Tam

Nong Lam University, Viet Nam

Phan Thi Giac Tam is Deputy Dean at the Economics Faculty, Nong Lam University at Ho Chi Minh City, Vietnam. She teaches and does research in agricultural economics, natural resources, and environmental economics. Her M.Sc. degree in agricultural economics was from the University of the Philippines at Los Baños. Her Ph.D. degree in agricultural economics with specialisation in natural resource and environmental economics was from Oklahoma State University, USA.

Dr Paule Moustier

CIRAD-Malica, Viet Nam

Paule Moustier is a researcher on food marketing at CIRAD, the French Institute specialised in research on tropical agriculture. After fifteen years of research, expertise and training in various parts of Africa, Asia and the Pacific, she is presently based in Hanoi (Vietnam) where she co-ordinates a research consortium on food markets focused on quality management. She holds a Ph.D. and M.Sc. of the University of London (Wye College), a degree in agricultural science (Paris) and public administration (ENGREF Paris).

Dr Nigel Poole

Senior Lecturer, Centre for Environmental Policy, Imperial College London - Wye Campus, UK

Nigel D. Poole is a Senior Lecturer in the Centre for Environmental Policy of Imperial College London – Wye campus, and researches the organisation and performance of markets, marketing functions and systems within developing countries and the linkages with international markets. He has worked in Latin America, the Mediterranean Basin, Sub-Saharan Africa and South and Southeast Asia. His academic training includes an M.Sc. in agricultural extension (Reading, UK), and an M.Sc. and Ph.D. in agricultural economics from the University of London.

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