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Rice distribution network in Cần Thơ city

Based on direct interviews with 165 participants in the rice distribution network in Cần Thơ City as well as descriptive statistic methods and cost-benefit analysis, the research has portrayed the distribution network and evaluated the economic efficiency of the network participants. | ECONOMIC DEVELOPMENT No. 204, August 2011 RICE DISTRIBUTION NETWORK IN CAÀN THÔ CITY by MEcon. NGUYEÃN QUOÁC NGHI* Based on direct interviews with 165 participants in the rice distribution network in Caàn Thô City as well as descriptive statistic methods and cost-benefit analysis, the research has portrayed the distribution network and evaluated the economic efficiency of the network participants. The results show that there are six rice distribution channels in Caàn Thô City in which rice retailers gain the highest profit margin, followed by merchants, husking factories, rice-farming households, and food companies. Yet, merchants and food companies, due to their large trading quantities, are those who reap the biggest profits. Keywords: rice distribution, profits margin, gained value 1. Introduction Vietnam has been an agricultural country and its government is extremely concerned with developing agricultural products which are deemed as the strength of Vietnam. Particularly, rice production always plays a vital role in the national food security and the export of rice also contributes a lot to GDP. The rice market has grown busy and more competitive; and the government therefore plans to facilitate the rice production of the country in general and of the Mekong Delta in particular. However, there are a lot of setbacks in rice production. In the Mekong Delta for example, in spite of a huge rice output produced annually, very few farmers become rich thanks to their rice selling. They have to bear the high production cost while the rice price is extremely low as compared to the price paid by end users. Therefore, it is needed to investigate the current rice distribution network with a view to exploring setbacks which, if solved well, can help enhance the living standard of rice-farming households as well as facilitate the distribution of rice. Caàn Thô City is one of the vastest rice paddies and a commercial hub in the Mekong Delta, yet its rice distribution .