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The changing dragon fruit value chain in Vietnam: the increased presence of the Chinese in the chain

In: Global Production Networks and Rural Development

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  • Shozo Sakata

Abstract

This chapter illustrates the value chain of dragon fruit from the production area in Vietnam to the border with China, aiming to examine the characteristics of the value chain structures. Vietnam’s production of dragon fruit has increased rapidly since the early 2000s, driven by increasing demand in the Chinese market. A sharp drop in imports of dragon fruit via land transport to Nanning customs district in 2016 is observed as a distinct change. It is implied that border trade has become more informalised, and the trade volume is vastly underestimated. Analysis of the author’s field survey in Binh Thuan Province, the largest dragon fruit production province in Vietnam, reveals that “packing houses†are the crucial point in the value chain where value is added to the fruits as they are sorted and packed. More value-added seems to be extracted by Chinese entities as many Vietnamese packing house owners tend to “rent out†their facilities to Chinese individuals in order to mitigate market and price risks.

Suggested Citation

  • Shozo Sakata, 2021. "The changing dragon fruit value chain in Vietnam: the increased presence of the Chinese in the chain," Chapters, in: Bill Pritchard (ed.), Global Production Networks and Rural Development, chapter 8, pages 140-155, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20596_8
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