I.

Introduction

Tien Le Cooperative belongs to Tien Yen commune, Hoai Duc district, Ha

Noi. Situated on the banks of Day River, Tien Le has fertile alluvial soil, suitable
for growing vegetables. In fact, the cultivation of vegetables and fruits in Tien Le
has a long tradition. Tien Yen is a purely agricultural commune with a population
of 6.140 people, 80% of which grow vegetables out of a total of 90% in
agriculture. With an area 284,42 ha, vegetable crops accounts for 70% of the total
and expansion of safe vegetable production in the commune is a right way to
ensure long term.

Tien Le Agricultural Cooperative was established in 1997 and converted in

2007 helped local people solve the problem. The cooperative has 2,000 members
with 46 hectares of production land, are certified by VietGap with a capacity of
300 tons per year. In particular, the cooperative is also supported by Syngenta
Vietnam Co., Ltd. 2.5 hectares net-house and engineers send engineer to guide the
cultivation process. Especially, farmers have been trained and guided in safe
vegetables production process according to VietGap standards. Now, 70% of safe
vegetables amount of cooperative has been purchased by units, companies and
shop owners in the field, which are sold in the market from 3 to 5 tons of each kind
(Rau Tiền Lệ: An toàn từ đồng ruộng đến bàn ăn- Bùi Anh Phương-25/4/2016 )

VietGAP stands for Good Agricultural Practices means practice good

agricultural production in Vietnam by the Ministry of Agriculture and Rural
Development issued in 2008 based on:

- Production standard
- Food security, including measures to ensure no chemical contamination
or physical contamination.
- Environmental work in accordance with the labor of the farmer
- Product traceability from production to consumption.

II. Method of investigation

The field survey was performed by primary and secondary information

collection.
 In the primary information collection, data are collected through directly
observing Tien Le Cooperative and interviewing management broad and farmers.
Six households were randomly selected for investigation, in which three
households have cultivated land in the net-house and three ones have land in
outdoor. To cater for obtaining accurate information, concrete, the questionnaire
about the situation of vegetable production and consumption was created.

Meanwhile, in the secondary information collection, data is also collected

through books, papers, journals, and internet.

Collected information from both methods then are rechecked, synthesized,

and screened.

III. Results and discussion

1. Production

The total agricultural area of Tien Le Cooperative is 96 hectares containing

62.5 (65.1%) hectares of cereal, 31 (32.3%) hectares of outdoor safe vegetable and
2.5 (2.6%) hectares of net-house safe vegetable (Chart 1). Although Tien Le
Cooperative is famous for safe vegetable following Vietgap, the area for cereal
occupies the majority in agricultural area. Vegetable cultivated in the net-house
occupies only 2.6% in area, a small percentage in total area.
 Chart 1.Proportion of cultivated crops in
area

Cereal (65.1%)

Outdoor safe vegetable

(32.3%)
Net-house safe vegetable
(2.6%)

The net house was built in 1997 under a project of Government of Vietnam
in which Government supported the cooperative to build the facilities at the
beginning. During the time from 2010 to 2016, Syngenta Vietnam supported to
maintain the facilities inside the net-house and provide fertilizers and various types
of pesticides. From 2016 till now, farmers have maintained the net-house with their
own capital.

Each farmer pays an amount of 6 million VND for 1000m2 in the net-house
and 1 million VND for 1 hectare outdoors, and receives training in irrigation,
pesticide and fertilizer use, and post-harvest routines.

However, the cultivation system and irrigation systems in both outdoor field
and net-house are simple. Water is taken from individual wells or the river nearby
by a pump and irrigated to the field in conventional methods by irrigation tubes
without drip or sprinkler systems. In addition, there is no high technology applying
in farming except for a simple tillage machine that is used to loosen soil before
each season. Almost farming practices here are based on traditional methods with
traditional tools.

The main vegetables grown at Tien Le Cooperative are Brassica, Morning

glory and Ceylon Spinach in which Brassica is staple occupying 70% in area,
Morning glory and Ceylon Spinach occupies 20%, the remaining is other types of
vegetable such as Amaranth, Spring onion, Watercress. Brassica vegetables are
easier to grow in short period of time, are more popular to consumers and suitable
to natural condition in Tien Le. The proportion of vegetables is shown in Chart 2.

Chart 2. Types of vegetables

Brassica (70%)

Morning glory + Ceylon Spinach

(20%)
Others (10%)

Seed is one of the most important factors influencing yields. In Tien Le

Cooperative, seeds of vegetables are mainly imported from seed stores or seed
providers nearby. Seeds from previous seasons are also used to grow but this
source occupies a small amount (about 5 – 10%) depending on type of vegetables.
Before sowing, seeds are treated by soaking in warm water overnight to stimulate
the germination.

Like seeds, fertilizers are imported from local stores and local providers in
which, manure occupies approximately 90% and 10% remaining are NPK
fertilizers. The average amount of manure is 250kg/sao, and NPK is 20kg/sao
(shown in chart 3). The fertilizer use is following VietGap principles under the
inspection of the Cooperative.
 Chart 3. Fertilizers

Manure
NPK

In Tien Le Cooperative, most of farmers are smallholder cultivating in a

small scale of vegetable field. Each farmer owns a small piece of land in the total
field. The main labor source is their family members. In busy seasons, extra labors
are hired but the number is small. Farming activities are mainly based on simple
tools as in conventional method of farming, in addition, most farmers have around
20 years in farming experience; therefore farmer can handle the jobs themselves.

Investigating 6 smallholders currently cultivating in Tien Le Cooperative,

there are significantly different in inputs and yields between smallholders who are
cultivating inside the net-house and those who are cultivating in the outdoor field
(Table 1). Although the expenditure for land rent in the net-house is higher than the
outside, the condition in here is obviously better. Since the nets cover all over the
land, the level of damage caused by pests is increase. However, weather plays a
major role in determining the success of agricultural pursuits. Both net-house and
outdoor field crops are dependent solely upon weather. Occasionally, adverse
weather conditions can cause production losses, especially if experienced during
critical stages of growth. Individual elements of weather (humidity, wind,
temperature, precipitation, and solar radiation) influence crops in particular ways.
The combination of weather elements occurring simultaneously can have additive
effects on product yield.

Besides weather, pests and diseases are severe factors that are facing farmers
in Tien Le Cooperative. The most harmful pests are Striped Flea Beetle
(Phyllotreta Striolata) belonging to Order Coleopera, and Diamondback Moth
(Plutella Xylostella) belonging to Order Lepidoptera. Generally, farmers
cultivating in the outdoor field are more affected by damaging factors than those
who are cultivating inside the net-house.
Table 1. Investigated data based on 6 patterns collecting from 6 smallholders cultivating vegetable in Tien Le
Cooperative, Tien Le, Tien Yen, Hoai Duc, Hanoi

Inputs (million VND)

Number of family members

Revenue (million VND)

Price (thousand VND)

Profit (million VND)

Number of labors

Productivity
Area (m2)

Location

Profit/1000m2
Output
Yield
No.

Fertilizer

Other
Labor
Seed

Land
Net 8.5 82.9 63.7
1 4 2 1300 5 24 0 7.8 3 11.1 14.4 Contract 122.7
house

Net 8.5 188.6 62.9

2 5 3 3000 11 32 11.6 18 4 10.4 31.2 Contract 265.2
house
Net 8.5 65.8 65.8
3 5 2 1000 4 19 0 6 3 11.5 11.5 Contract 97.8
house
7 Free 58.3 40.5
4 4 2 1440 Outdoor 5 25 0 4 3.5 9.5 13.7 95.8
contract
7 Free 42.8 39.6
5 4 2 1080 Outdoor 4 20 0 3 2.8 9.6 10.4 72.6
contract

7 Free 82.2 41.5

6 4 3 1980 Outdoor 7 27 0 5.5 3 9 17.8 124.7
contract
2. Consumption

At the beginning, Tien Le cooperative was invested by government capital

for building a net house, upgrading Tien Le’s transportation system, improving
other facilities and holders maintain the system of organization by their private
capital including seed, fertilizer, irrigation and rents for land. It was also supported
by Syngenta foundation for 6 years from 2010 to 2016.

In this cooperative, all holders are specialized wholesaler for vegetable for
middle men or companies. In total 12 – 15 tons vegetable production a day, about
thirty percent of products are bought by middle men and other seventy percent are
bought by companies such as An Viet, Lien Anh, etc. Especially, they make annual
contracts with a company named Gia Hung in which they have to provide at least
300 kilograms (vegetable from net house) a day by 8.500 VND per kilogram. The
contracts can be modified and signed at the beginning of each year, depending on
the needs and abilities of the parties. It brings not only stable prices but also stable
markets for farmers. However, it is necessary to produce enough productivity as
what they said they would in their contracts. When the contract is breached on one
side, breach side has to pay price support for the other.

The results of our survey show that there is a significant income disparity
between the producers in the net house and the producers in the field. In the net
house, even farmer have to pay higher money for renting a land, they are still get
higher income and higher revenue with 62.9 to 65.8 million VND per a thousand
square meters per year (chart 4) because they signed the contract with companies in
which the price of vegetable constantly is 8,500VND per kilogram and invested
less fertilizers, pesticides and others than outdoor.

For outdoor farmers, the investment for renting land is lower but other
investments are higher. And the price of production is unstable because they did
not sign contract with any company. Therefore, their income and revenue are lower
than farmers in net house, in which their revenue are from 37.0 to 44.4 million
VND per a thousand square meters per year (chart 4).
 70

60

50

40
Price
30 Rev/1000m2

20

10

0
Net 1 Net 2 Net 3 Out 1 Out 2 Out 3

Chart 4. Price and income of smallholders

5. SWOT Analysis and Suggestion

a. SWOT Analysis

The acronym SWOT refers to the strengths and weaknesses of the service
and the opportunities and threats which it faces. SWOT analysis can be applied to
develop and extend the conclusions drawn from investigation of the external
environment. It seeks to identify the opportunities and threats in the external
environment and the strengths and weaknesses of existing resources and activities
which might be used to take advantage of opportunities or avert threats. The
analysis enables informed decisions to be taken about the ability of the existing
records service to contribute to the development of a new programme (Ifediora C
et al, 2014)

Strengths, weaknesses, opportunities and threats (SWOT) analysis is a

device that helps business managers to evaluate the strengths, weaknesses,
opportunities and threats involved in any business enterprise, including farms and
ranches. A SWOT analysis can help them gain insights into the past and think of
possible solutions to existing or potential problems, either for an existing business
or for a new venture (Nouri et al., 2008).

The purpose of a Strengths, Weaknesses, Opportunities, and Threats

framework is to get managers thinking about everything that could potentially
impact the success of a new project. Failure to consider a key strength, weakness,
threat or opportunity could to lead to a poor business decisions. For example, if the
tech company with the patent for a new processor did not recognize the threat that
its competitors were developing similar products, it might overestimate the sales
potential of the new processor and take on debt to fund the development of the
processor only to discover that the new product does not bring in enough revenue
to pay off the debt. In other words, a strengths, weaknesses, opportunities, and
threats brainwork can help managers avoid making costly mistakes and determine
which projects are most likely to succeed.
 Table 1 Tien Le Cooperative SWOT Table

Strengths Weaknesses Opportunities Threats

Experienced Limited The high demand Lack of Young
Farm which investment of vegetable in Labor
already operated Vietnam
for 20 years
Farm certified Traditional Known across Weather
VietGAP farming which Vietnam as condition
still depends on producer of safe
the weather vegetable
Farm has large Unpredictable Few farm have The present of
area of cultivation yield vietGAP Pest and Disease
(98 ha) certificate that can’t be
controled by IPM
Farm has net Lack of Sell the yield of New certified
house (2.5 ha) Technology the farm to other farm which can
company meet market
demand
Trained farmer The selling price
with certificate depends on the
price of the
market
Free pollutant Do not have label
area
The location of
the farm is
strategic
Produce safety
vegetable
Source: Observation Result

Tien Le Cooperative is an experienced farm which already operated for 20

years, from 1997 until 2017. The members of this cooperative in 2015 is 55
household with 3 until 5 people in every household. The cultivation area of this
farm is quite large about 98 ha with 2,5 ha net house for vegetable cultivation, 31,5
ha of field for vegetable cultivation and 62,5 ha for cereal cultivation. Since 2007
this farm start to grow safety vegetable based on vietGAP and they get the
vietGAP certificate in 2008, this certificate means that the vegetable produce by
this farm is safety to eat. One of the requirements to be the member of this farm is
get the certificate of training, so the farmer in this farm is well trained farmer with
certificate. The location of this farm is strategic near the center of Ha Noi city with
easy access to the farm and far from industrial area so the environment is pollutant
free. Tien Le farm has limited investment which only comes from the member, so
it is hard to improve the technology in the farm. The farming in this farm still
depends on the weather with unpredictable yield, if the yield is higher than the
company need the farmer must sell it to the midder man but if the yield is lower
than the company need the farmer need to sell it with lower price or find another
farmthat produce the same vegetable and buy it from them then sell it to the
company. The selling price of the vegetable is depending on the market, so the
farmers don’t have stable income. This farm do not have label yet, label which
explain that they produce safety vegetable so people will buy their vegetable
instead others.

The high demand of vegetable in Vietnam is one of good opportunity that

can be used by this farm, beside of that this farm also has vietGAP certificate and
few of Vietnam farm which have vietGAP certificate. Other opportunity of this
farm is known as safety vegetable producer in all Vietnam regions since only few
competitors with vietGAP certificate. This farm also can make new contract with
other company so when the yield is high and more than the company needed, they
can sell it to the other company. Many conditions act as threat tothis farm one of it
is the lack of young labour since young people won’t work in the farm. Since the
farm is depending on the weather condition, weather can be other threat because
weather can destroy the soil and the vegetable to. The farmer resolves the problem
of pest and disease by IPM (Integrated Pest Management) but this method not too
effective to overcome the problem.

b. Suggestion

Table 3 SWOT Strategies

 Strengths Weaknesses
Experienced Farm which already operated for 20
Internal years
Limited investment
Traditional farming which still depends on the
Farm certified VietGAP
weather
Farm has large area of cultivation (98 ha) Unpredictable yield
Farm has net house (2.5 ha) Lack of Technology
External The selling price depends on the price of the
Trained farmer with certificate
Factors market
Free pollutant area Do not have label
The location of the farm is strategic
Produce safety vegetable

The high demand of vegetable in S-O Strategy W-O Strategy

Opportunities

Vietnam
Known accross Vietnam as producer of Promote the product Open Investment
safe vegetable
Few farm have vietGAP certificate Find new company Make a label of the product
Sell the yield of the farm to other
company

S-T Strategy W-T Strategy

Lack of Young Labour
Threats

Net house improvement Development of extension program based on

Weather condition farmers needs
The present of Pest and Disease that
cant be controled by IPM
New certified farm which can meet
market demand

The farm has good products with VietGAP certificate a nice promotion is
required to make it known across the country by make a flyer or by internet. To
overcome the weakness in investment the farm can open an investment so they can
buy machine and have modern irrigation. Beside of open an investment they can
make a label of the product or just simply as the government to make it, so their
product will be known easily. The extension workers ask the farmers about the
problem in their field and the extension worker accompany the farmers to solve the
problem.

IV. Conclusion

In term of safety vegetable performance, in this survey the Tien Le

cooperative showed that net house field produces more than outdoor. Although in
net house the price of vegetable is more stable and higher than the one outdoor,
farmer need to pay more for land fee and the net areas cannot expand anymore.
 Modern field vegetable production method such as using high technology in
irrigation and land preparation were not yet observed. Farmer producing still
follows conventional methods with simple tools.

Pest and disease control were observed by using IPM and biological
pesticides to protect from fungi and pest. However, there are several pests that are
hard to control

Producers in Tien Le cooperative do not have their own trade; therefore they
mostly depend on companies and middlemen for marketing the products.

Prevention of bad condition and disaster for outdoor fields needs more
attention from committee.

V. References

Rau Tiền Lệ: An toàn từ đồng ruộng đến bàn ăn- Bùi Anh Phương-25/4/2016

Nouri J, Karbassi AR, Mirkia S (2008). Environmental management of coastal

regions in the Caspian Sea. Int. J. Environ. Sci. Tech., 5(1):43-52

Ifediora Christian Osita, Idoko Onyebuchi R. and Nzekwe Justina (2014).

Organization’s stability and productivity: the role of SWOT analysis an acronym
for strength, weakness, opportunities and threat. International Journal of Innovative
and Applied Research (2014), Volume 2, Issue (9): 23- 32. ISSN 2348 – 0319