Summary of economic doctoral thesis economic linkages between enterprises and farm households in the production of long term industrial crops in dak lak province

Economic linkages to the production and consumption of high quality agricultural products continue to be formed in most of the province's perennial industrial crop production areas; Many

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VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

NGUYEN THANH PHUONG

ECONOMIC LINKAGES BETWEEN ENTERPRISES AND FARM HOUSEHOLDS IN THE PRODUCTION

OF LONG-TERM INDUSTRIAL CROPS IN DAK LAK

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Thesis is completed at:

GRADUATE ACADEMY OF SOCIAL SCIENCES

SCIENTIFIC ADVISOR:

1 Assoc Prof Dr Vu Hung Cuong

2 Dr Tuyet Hoa Nie Kdam

Reviewer 1: ……… Reviewer 2: ……… Reviewer 3: ………

The thesis is to be defended to the thesis Committee of Graduate Academy

of Social Sciences , 477 Nguyen Trai Street , Thanh Xuân District, Ha Noi

City At ….o’ clock, December …., 2020

The thesis can be found at:

1 Information and documentation center – Graduate Academy of Social Sciences

2 The National Library of Vietnam

HEADING

1 The necessity of the thesis

Economic linkages in general, economic linkages between enterprises and farmer households in particular can create many positive impacts on agricultural production

Dak Lak is a province located in the center of the Central Highlands, with many advantages to develop many types of long-term industrial crops with high economic value such as coffee, pepper, rubber, cashew , the production value of perennial industrial crops accounts for more than 60% of the province's total crop production value Production of perennial industrial crops is the main livelihood of many parts of the population living in rural areas in the province, a source of exports that bring foreign currency, as well as creating a contribution to over 60% of the total annual budget revenue of the province

With the attention and investment of resources from the state and the people, economic linkages between enterprises and farmer households in the value chain of perennial industrial crops in Dak Lak in recent years have had many significant development points Economic linkages to the production and consumption of high quality agricultural products continue to be formed in most of the province's perennial industrial crop production areas; Many economic linkage models have contributed to increase income and benefits for participants (accounting for 82.10%); Economic linkages have contributed significantly to improving the quality of agricultural products (accounting for 19.05%),

or improving the efficiency of value chains of perennial industrial crops (accounting for 94.37%)

In addition to the positive points achieved, the economic linkage between enterprises and farmer households in today's long-term industrial crop value chains still has many shortcomings Most of the area of economic linkage between enterprises and farmers in the production of perennial industrial crops is simple linkage (accounting for 80.65%) The level of support or compensation for the lack of resources and skills for each other between the stakeholders in the association is still limited Many linking subjects still do not attach importance to the

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use of text contracts to present linked content, the percentage of linking cases using text contracts is only 10.61% Or the role of economic linkage in changing the way of production organization and application

of science and technology of farmers has not met the expectations of the society

In addition, although previous researchers have built many aspects related to the theoretical basis of the economic linkages between enterprises and farmer households in the production of perennial industrial crops, create a solid theoretical foundation for the following researchers to inherit and apply However, the theoretical basis for the economic linkage between enterprises and farmers in the production of perennial industrial crops still has gaps that can continue to develop Facing the above situation, the study "Economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province" is considered a necessary activity, which can bring many benefits to promote economic linkages between enterprises and farmers in the production of perennial industrial crops in the coming time, thereby contributing to improving the performance of perennial industrial crop value chains and improving the lives of many communities living in rural areas in Dak Lak province

2 Purpose and mission of the research

General research purposes: On the basis of the theoretical

framework, the author analyzes and assesses the current economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province in the period 2014-2018, point out the successes, shortcomings, and identify the influencing factors, from which proposing solutions to promote the linkage between enterprises and farmers in the production of perennial industrial crops in Dak Lak province to 2030

Specific research tasks:

+ Contribute to systematize the theoretical and practical system of economic linkages between enterprises and farmer households in the production of perennial industrial crops.

+ Analyzing and assessing the current status of economic linkages between enterprises and farmers in the production of perennial industrial

crops in Dak Lak province in the period 2014-2018, pointing out successes, shortcomings, and causes

+ Identifying and analyzing factors affecting economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province

+ Proposing solutions to promote economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province in the coming time

3 Objects and research methods

- Research object: Economic linkages between enterprises and

farmers in the production of perennial industrial crops

- Research scope:

+ Content scope:

 The phrase "production of perennial industrial crops" in research is understood in a broad sense of the chain, including from production to consumption of agricultural products

 The thesis will study the economic linkages between exporters, processing enterprises, trade intermediaries, and input suppliers with farmers, who produces perennial industrial crops in Dak Lak However, for enterprises that supply input factors, the author only limited research to enterprises supplying fertilizers, plant protection drugs and varieties For other enterprises that supply weak inputs such as machinery, equipment, packaging the author will not research, because the potential for developing linkages between these enterprises and farmer households is low

 Dak Lak's perennial industrial crops today include as follows: Coffee, rubber, pepper, cashew, tea, macadamia However, research is limited to the main perennial industrial crops are coffee, rubber, pepper, and cashew The author does not study on tea and macadamia trees because: 1) Tea area is only about 90 ha, accounting for less than 1/1,000

of the total areas of industrial crops in the province and has little potential for expansion; 2) The activity of planting macadamia trees is still in the trial stage, the potential for development of this tree has not been determined in Dak Lak province

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+ Time scope: Assess the current situation in the period 2014-2018, propose orientations and solutions to 2030

+ Space scope: Dak Lak province

4 Methodological basis and research methods

+ Economic linkages between enterprises and farmer households are

a form of economic relations between groups of stakeholders in the value

chain of agricultural products (economic relations between input suppliers and farmers; business relationships between farmer households and enterprises that consume agricultural products)

+ Developing economic linkages between enterprises and farmers will contribute to the development of the value chain of agricultural products

During the research process, the author approaches the economic management "perspective" of state management agencies

4.2 Research methods

4.2.1 Methods of collecting documents and data

a Content analysis method of available data, documents

Used to collect available documents for thesis construction Expected information can be obtained from available documents, including: Information for building the overview content of related researches Information for systematizing theoretical basis The information reflects the content of State's role in economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province Information on practical experiences of countries and some localities on the economic linkages between enterprises and farmers in agricultural production Data on the size, yield and yield of perennial industrial crops in Dak Lak province

b The method of using questionnaires to collect primary information Used to collect primary information for thesis construction The content of primary data to collect includes: Data reflecting the current economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak The data partially reflect the role of the State on economic linkages between enterprises and farmers in the production of perennial industrial crops in Dak Lak province The data reflect factors affecting the economic linkages between enterprises and farmers in the production of perennial industrial crops in Dak Lak

Survey subjects to collect primary data include: enterprises, farmers and intermediaries (cooperatives)

The number of samples collected was 275 units

Classification and sampling method:

+ The number of samples surveyed for each tree type was determined by the ratio of the area of each type of perennial industrial tree to the total area of perennial industrial crops in the province

+ The number of samples for each type of association participants is determined as follows: Because the firms and intermediaries participating in the association are low in number, all firms and these intermediaries should be surveyed The rest of the sample to be surveyed will be distributed to farmers

+ The localities selected for the survey were the main perennial industrial crops production areas of the province

+ Survey samples were randomly selected in areas that produce coffee, pepper, cashew rubber

c In-depth interview method

The primary data expected to be collected by in-depth interviews are part of the data reflecting the current situation of economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province

- The method of data collection: Interviewing with state management officials, enterprises, farmers, intermediaries related to the economic linkages between enterprises and ffarmer households in the production of perennial industrial crops in Dak Lak directly

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4.2.2 Analytical method

- Methods of synthesis and analysis of data:

+ Methods of synthesis and analysis used to: 1) synthesize research related to the topic published in chapter 1; 2) synthesize some basic theoretical and theoretical bases, practical experiences in chapter 2; 3) synthesizing and analyzing the current situation in chapter 3; 4) Synthesize scientific and practical bases from chapters 2 and 3 to propose solutions in chapter 4

+ Methods of data synthesis: Based on data collected from available documents, questionnaires and in-depth interviews, this method is used

to synthesize the necessary indicators for the construction report The software used is Microsoft Office

+ Methods of data analysis: Including descriptive statistics and comparative statistics

 Descriptive statistical method: Basic on the indicators, information synthesized from the secondary data and the primary data, this method is used to: 1) Describe a part of the content of assessing the status of the economic linkages between enterprises and households in the production of perennial industrial crops in Dak Lak province in Chapter 3; 2) Describe a part of the contents of the factors affecting the economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province in chapter 3

 Comparative statistical method: Basic on indicators and aggregated information from the secondary and primary data, the comparative statistical method is used to reflect the difference in the status of economic linkage between Enterprise and farm households among perennial industrial crops, between different forms and models of economic linkages in Chapter 3

5 Expected research results to be achieved

The expected research results to be achieved include:

- Based on the systematization of the theoretical and practical basis

of the economic linkages between enterprises and farmers in the production of perennial industrial crops, the author builds an analytical framework of the thesis

- By analyzing and assessing the current economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province in the period of 2014-2018, the author points out the successes, shortcomings and causes Multiply, creating the basis for the scientific and practical basis for proposing solutions, mechanisms, and policies

- Analyze the factors affecting the economic linkages between enterprises and farmers in the production of perennial industrial crops in Dak Lak to create a basis for more concretization of proposed solutions, mechanisms and policies which have scientific and practical basis

- Perspectives, orientations and proposed solutions to promote the development of economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province by 2030 have scientific bases and real values

The research results of the thesis are valid for reference in research, planning and policy implementation for state management agencies, local governments, research and training organizations related to the research topic

6 Thesis structure

In addition to the introduction, conclusion, list of references, appendices, the structure of the thesis includes the following main parts: Chapter 1 Overview of researches related to the thesis topic

Chapter 2 Theoretical and practical basis for the economic linkage between enterprises and farmers in the production of perennial industrial crops

Chapter 3 Current situations of economic linkages between enterprises and farmer households in the production of perennial industrial crops in Dak Lak province

Chapter 4 Viewpoints, orientations and solutions to promote economic linkages between enterprises and farmers in the production of perennial industrial crops in Dak Lak province

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CHAPTER 1 OVERVIEW OF RESEARCHES RELATED TO

THE THESIS TOPIC

Economic linkages between enterprises and farmer households have

a long history of development, so there are many views, research results related to this issue have been proposed and implemented

In terms of theory and practice, related studies have mentioned many aspects of the technical cooperation between enterprises and farmers From the issue of State management of linking activities, commitments

in linking, the role of linking activities, factors affecting linking activities, to solutions to improve linking activities Besides, we can see that theories and research results related to economic linkages between enterprises and farmer households are highly appreciated, widely acknowledged and used in many studies: 1) There are 4 models of economic linkages between enterprises and farmers: nuclear farm model, centralized model, intermediate model, informal model; 2) The association will have commitments: contract term, buyer's quality standards, farmers 'production quota, and request for the farmers' farming practices, delivery organization, how to determine prices, credit reform, insurance; 3) Linkage activities will create many positive impacts for farmers and enterprises participating in the association; 4) Factors affect linkages: farm household characteristics, business characteristics, agricultural characteristics, choice of association, state factors

The dissertation points inherited from related researches: Inheriting the classification of economic linkages between enterprises and farmer households, the content of organizing the association, how to evaluate the efficiency of economic linkages, the content factors affecting economic linkages of published researches to build and synthesize the contents of the thesis such as: Scale, form and model of economic linkages between enterprises and farmers in the production of perennial industrial crops; To organize the implementation of economic linkages between enterprises and farmer households in the production of perennial industrial crops; Efficiency and indicators reflect the efficiency of economic linkages between enterprises and farmers in the production of perennial industrial crops; Factors affecting economic linkages between enterprises and farmer households in the production of perennial

industrial crops; International and domestic experiences on economic linkages between enterprises and farmers in the production of perennial industrial crops and lessons learned from Dak Lak province

- Research gap of topic:

+ Economic linkages between enterprises and farmer households in the production of perennial industrial crops has not classified basic on 7 forms of Decree 98/2018 / ND-CP yet

+ It is not clear which influencing factors are the conditions for forming the linkages, which factors affect the implementation of the one + The research topic "Economic linkages between enterprises and farmers in the production of perennial industrial crops in Dak Lak province" is a new topic, which has not been done in the past

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CHAPTER 2 THEORETICAL AND PRACTICAL BASIS FOR THE ECONOMIC LINKAGE BETWEEN ENTERPRISES AND FARMER HOUSEHOLDS IN THE PRODUCTION OF

PERENNIAL INDUSTRIAL CROPS

2.1 Concept and characteristic of economic linkages between enterprises and farmer households in the production of perennial industrial crops

a Concept

The concept of perennial industrial crops: According to the Ministry of Agriculture and Rural Development (2016), perennial industrial tree is defined as a one-time crop that grows and gives the harvest for many years, materials for industrial production or must be processed to be used such as rubber, cocoa, coffee, tea, cashew, and pepper

The concept of economic linkages: Economic linkages are the process of creating and coordinating the implementation of commitments between two or more economic entities in order to achieve the economic goals of stakeholders, basic on voluntary principles, equality and within the legal framework

The concept of economic linkages between enterprises and farmer households in the production of perennial industrial crops: economic linkages between enterprises and farmers in the production of perennial industrial crops are a combination of activities or with support (materials, techniques, machinery .) in the production and consumption of perennial industrial crops between enterprises and farmers, in some cases with additional intermediaries, in order to achieve economic goals of all parties involved in the association on the basis of the principles of voluntary, equality, mutual benefit and compling with the law

b Characteristic

Characteristics of the economic linkages between enterprises and farmer households in the production of perennial industrial crops include:

Economic linkages in the production of perennial industrial crops include vertical linkages (linkages between subjects in different production stages), horizontal linkages (linkages between subjects in the same production stage), and mixed bonding Among the three types of economic linkages above, the economic linkage between enterprises and farmers in the production of perennial industrial crops

is the first, vertical link

Economic linkages between enterprises and farmer households in the production of perennial industrial crops are inconsistent with the term "written agricultural contracts" Economic linkages between firms and farmers in the production of perennial industrial crops can

be done in the form of written contracts or not been

Economic linkages between enterprises and farmers emphasize the coordination, ways to compensate for the shortage of resources and the mutual support between enterprises and farmer households for mutual development Financial resources, ability farmers' access to the market and production techniques are still in short supply, thanks to linkage with enterprises, farmers can have capital solutions to serve their production, business, and consumption Enterprises can support farmers in market access and training, technology transfer, and improved production processes for farmers Enterprises need raw materials are high quality agricultural products to ensure production and supply of processed agricultural products in accordance with the market standards of consumption and export, thanks to linkage with farmers, they can get the desired raw materials

2.2 Content of research on economic linkages between enterprises and farm households in the production of perennial industrial crops

a Scale, form and model of economic linkage between enterprises and farm households in the production of perennial industrial crops

Scale of economic linkages between enterprises and farmer households in the production of perennial industrial crops