In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
DOI: 10.5121/ijm sc.2015.6301 1
V
IETNAM
T
EA
I
NDUSTRY
:
A
N
A
NALYSIS
F
ROM
V
ALUE
C
HAIN
A
PPROACH
Nguyen Vie Khoi
1
- Chu Huong Lan
2
- To Linh Huong
3
1
Dep . o In ’l Economics and Business, VNU Uni e si y o Economics and Business
2
IAE NICE G adua e School o Managemen -Uni e si é Nice Sophia An ipolis
3
Dep . o In ’l Economics and Business, VNU Uni e si y o Economics and Business
ABSTRACT
O e he pas wo decades, he e has been an inc easing end in analyzing in e na ional ade om he
pe spec i e o “ alue chains”, pa icula ly in ag o indus y. Fo many coun ies, pa icula ly de eloping
coun ies including Vie nam, ag icul u e is he backbone o economic de elopmen and he main sou ce o
income. Toge he wi h ice p oduc ion, Vie nam is also known as one o he mos ancien home o ea. Tea
indus y in Vie nam has a his o y o up o h ee housand yea s and ea plays a i al ole in income
imp o emen and po e y alle ia ion in u al a eas, especially in he No he n Uplands and No h Eas
Sou h. In addi ion, ea is a high- alue p oduc ha Vie Nam is al eady expo ing o many o he coun ies
and e i o ies wo ldwide. Ha ing all hese impo ance, he e a e s ill challenges acing he Vie nam ea
indus y including high agmen a ion, small-scale ope a ion and weak linkage among pa icipan s in he
ea manu ac u ing p ocess. This pape , hence, seeks o in es iga e he oles and bene i s o pa icipan s in
his single c op h ough alue chain analysis o help hem upg ade hei posi ion in he ea chain.
KEYWORDS
:
Upg ading Value Chain, Tea Value Chain, Vie nam Tea Indus y, Vie nam Value Chain.
JEL: M10, M11
1.
I
NTRODUCTION
The cul i a ion o ea in Vie nam has a long his o y up o h ee housand yea s and eaplan has
b ough many economics bene i s o he coun y, especially o a me s and locals in u al a eas.
Enjoying ea is conside ed a meaning ul adi ional cus om o Vie namese people since i s
appea ance. Tea sec o in Vie nam is expo o ien ed wi h abou 80 pe cen o i s annual o al
ou pu supplying o eign ma ke s. Up o now, ea p oduc s ha e made hei p esence in mo e han
100 coun ies and e i o ies wo ldwide wi h annual expo alue o 200 millionU.S. dolla s.
Despi e such big achie emen s, Vie namese ea sec o a e s ill con on ing e en bigge
challenges. Among hese issues, unequal dis ibu ion o powe and alloca ion o cos s and
ma gins in ea alue chain a e big ma e s o conce n. The e is a need o os e he in eg a ion and
pa icipa ion o he poo in he ea chain in o de o be e dis ibu e he gains om imp o emen s.
This epo looks o in es iga ing his issue h ough a de ailed s udy o he ea alue chain in
Vie Nam, in he hope o ob aining a clea pic u e in he s uc u e o he alue chain, he posi ions
o he di e en ac o s, he o e heads and bene i s sha ed o each wi h he ocus on p oduce s. The
in o ma ion collec ed will be used o iden i y and add ess some ecommenda ions o imp o ing
he posi ion o he mos disad an aged.
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
2
2.
M
ETHODOLOGY
A comp ehensi e su ey was unde aken in Moc Chau, Son La wi h 65 selec ed samples.
Ques ionnai es a e designed o in e iew wo ke a me s he e. The epo applies bo h quali a i e
and quan i a i e app oach o ouch alue chain analysis. The p incipal me hodology is o de elop
a comp ehensi e map o alue chain o unde s and he cha ac e is ics o he chain ac o s and he
ela ionships among hem, o he low o ea h ough he chain. This in o ma ion is ob ained by
conduc ing su eys and in e iews as well as by collec ing seconda y da a om a ious sou ces.
A e he alue chain has been mapped, he nex s ep is o iden i y he dis ibu ion o cos s and
ma gins o each. This s ep use quan i a i e ool o explo e how o e heads and ma gins a e
dis ibu ed o e he chain ac o s. (Van den Be g, Michael, 2004) .In his s udy, mul iple linea
eg essions a e used o analyze ac o s a ec ing ea p oduc i i y o a me . Da a is collec ed om
su ey and analyzed by using SPSS 20.
3.
L
ITERATURE
R
EVIEW
A numbe o s udies abou Vie nam ea indus y ha e been ca ied ou (Khải, N. H., 2005) in
“Vie nam ea plan s: Compe i i eness in expo and de elopmen ”, in oduced he o igins and
de elopmen p ocess o ea indus y in Vie nam; and ga e an o e iew abou he wo ld ea
ma ke o d aw lessons and expe iences o Vie nam. The s udy also add essed ecommenda ions
o enhance he compe i i eness o ea p oduc s o expo ma ke s (Hao, 2011)explo ed ac o s
a ec ing ea yield o a me s and men ioned he solu ions o enhance economic e iciency o ea
p oduc ion in pe iod o economic in eg a ion o he households (Nguyễn, 2010) ocused on
analyzing he s a us, achie emen s and challenges o ea indus y in Thai Nguyen and abili y o
de elop ea p oduc ion o expo in his p o ince. The esea ch also sugges edsolu ions o socio-
economic de elopmen o ea yield.(Nguyễn Thị, 2007) sys ema ized de elopmen ends o
wo ld ea ma ke and ma ke ing s a egies o ea expo om some ea expo ing coun ies and
lessons o Vie nam. Nguyen T ung Dong (2011)men ioned he isk o losing ma ke s o
Vie nam ea p oduc s and sugges ed long- e m and easible s a egies o se oo in wo ld ma ke
o Vie nam ea p oduc s. T an Cong Thang (2004), wi h he p ojec : The Value Chain o Tea in
Vie Nam: P ospec s o Pa icipa ion o he Poo , deeply in es iga ed he ea alue chain in
Vie nam and po en ial oppo uni ies o pa icipa ion o he poo in such alue chain. The epo ,
howe e , ca ied ou in 2004 and based on he adi ional alue chain s uc u e. Up o now, he e
has been a change in he s uc u e o ea alue chain and he in eg a ion among ac o s in he ea
chain. This implies a need o u he esea ch on upda ed ea alue chains.
In he ligh o hese ac s, we can say ha he e is a school o s udies on ea indus y in Vie nam.
Ne e heless alue chain app oach emains limi ed. This s udy uses alue chain app oach aiming
a examining hedis ibu ion o oles and bene i s o pa icipan s in he chain.
4.
O
VERVIEW OF THE
T
EA
S
ECTOR IN
V
IETNAM
Vie nam is known as one o he mos ancien c adle o ea wi h ea plan da es back 3,000 yea s.
The i s ea plan a ion in Vie nam was es ablished in 1890 in Phu Tho by The F ench (Zeiss, M.,
& den B abe , K., 2001). Since he incep ion o Reno a ion (Doi Moi) and he go e nmen ’s
ocus on ea as a s a egic commodi y o economic de elopmen , ea p oduc ion has g own
signi ican ly.
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
4.1 P oduc ion
Vie nam is gi en a a o o g ow ea sp eading in he whole coun y.
ci ies na ionwide spend
125,000 ha o hei cul i a ion a ea o g owing ea, an inc ease o 63.8
pe cen wi h ha in 1999.
Figu e 1: P oduc ion and Tea A ea in
Tea p oduc ion in Vie Nam g ew s
ea p oduc ion inc eased an a e age o 8.5 pe cen yea ly, while a ea and yield g ew 2.5 and 3.1
pe cen espec i ely. The yea 2012, meanwhile, saw an exponen ial g ow h in plan ed ea
a ea.Tea yield, ne e heless,
is s ill a low le
ques ion. In pa icula , yields a e ypically abo e h
mo e conduci e o ea p oduc ion.
capaci y o 4 ons p
e ha while he igu e eaches 11 o 12 ons in No he n p o inces.
Figu e 2: Tea Yield in
4.2 Expo Si ua ion
Expo Volumes
Vie Nam
ea p oduc s ha e made hei p esence in mo e han 100 coun ies and e i o ies
wo ldwide; wi
h a e age annual expo alue
expo o ien ed wi h nea ly 80 pe cen o p oduc ion des ined o o eign ma ke s. The coun y’s
main expo is low-
quali y black ea p ocessed using o hodox echnology. Mos
wholesale, wi hou labels, b anding o packaging.
0
50
100
150
200
250
0
5
10
15
20
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
Vie nam is gi en a a o o g ow ea sp eading in he whole coun y.
A p esen , 34 p o inces and
125,000 ha o hei cul i a ion a ea o g owing ea, an inc ease o 63.8
Figu e 1: P oduc ion and Tea A ea in
Vie nam (2005-2012)
Tea p oduc ion in Vie Nam g ew s
ikingly o e he pas decades. Du ing
he pe iod
ea p oduc ion inc eased an a e age o 8.5 pe cen yea ly, while a ea and yield g ew 2.5 and 3.1
pe cen espec i ely. The yea 2012, meanwhile, saw an exponen ial g ow h in plan ed ea
is s ill a low le
el, only eaches 3.1% in a e age
du ing
ques ion. In pa icula , yields a e ypically abo e h
e a e age le el in he No he n
mo e conduci e o ea p oduc ion.
No mally
, adi ional ea a ie ies in he midland only ha e
e ha while he igu e eaches 11 o 12 ons in No he n p o inces.
Figu e 2: Tea Yield in
Vie nam (2005-2012)
ea p oduc s ha e made hei p esence in mo e han 100 coun ies and e i o ies
h a e age annual expo alue
up o USD 200mil
. The ea sec o in Vie Nam is
expo o ien ed wi h nea ly 80 pe cen o p oduc ion des ined o o eign ma ke s. The coun y’s
quali y black ea p ocessed using o hodox echnology. Mos
o his ea is sold
wholesale, wi hou labels, b anding o packaging.
0
20
40
60
80
100
120
140
160
180
Plan ed A ea
o Tea( 1000
ha)
A e age ea yield (100kg/ha)
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
3
A p esen , 34 p o inces and
125,000 ha o hei cul i a ion a ea o g owing ea, an inc ease o 63.8
he pe iod
2005-2011,
ea p oduc ion inc eased an a e age o 8.5 pe cen yea ly, while a ea and yield g ew 2.5 and 3.1
pe cen espec i ely. The yea 2012, meanwhile, saw an exponen ial g ow h in plan ed ea
du ing
he ime in
e a e age le el in he No he n
, which a e
, adi ional ea a ie ies in he midland only ha e
e ha while he igu e eaches 11 o 12 ons in No he n p o inces.
ea p oduc s ha e made hei p esence in mo e han 100 coun ies and e i o ies
. The ea sec o in Vie Nam is
expo o ien ed wi h nea ly 80 pe cen o p oduc ion des ined o o eign ma ke s. The coun y’s
o his ea is sold
Plan ed A ea
o Tea( 1000
A e age ea yield (100kg/ha)
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
Figu e 3: Tea Expo e sus Tea P oduc ion, selec ed yea s
Tea expo olume o Vie nam in 1996
14.1 pe cen pe yea . 2010’s
igu e inc eased mo e han 6 imes compa ed o ha o 1996, om
20.8 housand ons in 1996 o 138 housand ons in 2010.
Expo p ice
The expo p ice o Vie nam
is dependen on luc ua ions o
p ice in 2001- 2005 pe iod is 1,
061
2000 which was 1,351
U.S. dolla s
clime in he igu e, eaching
1,288
yea s, expo s
alue emains compa a i ely lowe han o he na ions, a 1,200 U.S. dolla s pe on
in compa ison wi h 3,700 U.S. dolla s o Kenya and o e 4,000 U.S. dolla s o S i Lanka and
only accoun s o 60 pe cen o he global a e age
Figu e 4: Vie nam Tea Expo P ice and Wo ld P ice, selec ed yea s
I should be no ed ha meanwhile all in
mee a ge
expec a ions o a e on he igh ack o
dec eased o e ime. Tea expo p ice in
was a 1,48 U.S. dolla s
pe kg. So a , om 1998 onwa d, while wo ld a e age p ice inc eased
by 18%, Vie nam‘s p ice o
ea expo s has been on a declining end by 20% and he gap
be ween Vie nam‘s expo p ice
and wo ld p i
0
50
100
150
200
250
0.0
0.5
1.0
1.5
2.0
2.5
3.0
USD/kg
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
Figu e 3: Tea Expo e sus Tea P oduc ion, selec ed yea s
Tea expo olume o Vie nam in 1996
-
2010 pe iod eached high le el o g ow h a e, abou
igu e inc eased mo e han 6 imes compa ed o ha o 1996, om
20.8 housand ons in 1996 o 138 housand ons in 2010.
is dependen on luc ua ions o
wo ld p ices.
The a e age expo
061
U.S. dolla s
pe on, lowe han he a e age p ice in 1996
U.S. dolla s
pe on. The nex i e yea s
, ne e heless, b ough a sus ained
1,288
U.S. dolla s pe on. Al hough ea expo inc ea
sed o
alue emains compa a i ely lowe han o he na ions, a 1,200 U.S. dolla s pe on
in compa ison wi h 3,700 U.S. dolla s o Kenya and o e 4,000 U.S. dolla s o S i Lanka and
only accoun s o 60 pe cen o he global a e age
p ice (abou $2,400 pe on)
Figu e 4: Vie nam Tea Expo P ice and Wo ld P ice, selec ed yea s
I should be no ed ha meanwhile all in
dica o s such as expo olume and
plan ed a ea o ea
expec a ions o a e on he igh ack o
exceed a ge
, expo alue con inuously
dec eased o e ime. Tea expo p ice in
2011 was 1,26 U.S. dolla s pe k
g while 2006’s igu e
pe kg. So a , om 1998 onwa d, while wo ld a e age p ice inc eased
ea expo s has been on a declining end by 20% and he gap
and wo ld p i
ce is on he inc easing end.
Tea Expo ( housand
onnes)
To al Ou pu ( Thousand
onnes)
Wo ld P ice
Vienam Expo P ice
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
4
2010 pe iod eached high le el o g ow h a e, abou
igu e inc eased mo e han 6 imes compa ed o ha o 1996, om
The a e age expo
pe on, lowe han he a e age p ice in 1996
-
, ne e heless, b ough a sus ained
sed o
e he
alue emains compa a i ely lowe han o he na ions, a 1,200 U.S. dolla s pe on
in compa ison wi h 3,700 U.S. dolla s o Kenya and o e 4,000 U.S. dolla s o S i Lanka and
plan ed a ea o ea
, expo alue con inuously
g while 2006’s igu e
pe kg. So a , om 1998 onwa d, while wo ld a e age p ice inc eased
ea expo s has been on a declining end by 20% and he gap
Tea Expo ( housand
To al Ou pu ( Thousand
Vienam Expo P ice
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
5.
T
EA
V
ALUE CHAIN IN
V
IETNAM
Simply, alue chain
o he ea p oduc s
s akeholde s, including ea lea p oduce s
wholesale , e aile s, and expo e s.
Figu e 5: Simple Tea alue chain in Vie nam
Howe e , he alue chain o ea, in ac , is a complex one. While i in ol es jus h ee
main ac i i ies –
he p oduc ion o ea lea es,
a la ge numbe o ac o s a e in ol ed in each p ocess. While componen s
discussed in g ea e de ail h oughou his sec ion, he igu es below p o ides an
o e iew o he ypes o in e ac ions and linkages p esen in he alue
Vie Nam. I maps he en i e alue
subca ego ies o ac o s and hei in e ac ions.
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
IETNAM
o he ea p oduc s
in ol es he pa icipa ion and in e ac ion o di e en
s akeholde s, including ea lea p oduce s
( a me s), d y ea p ocesso s, d y
wholesale , e aile s, and expo e s.
Figu e 5: Simple Tea alue chain in Vie nam
Howe e , he alue chain o ea, in ac , is a complex one. While i in ol es jus h ee
he p oduc ion o ea lea es,
d y
ea p ocessing, and he sale o
a la ge numbe o ac o s a e in ol ed in each p ocess. While componen s
o each will be
discussed in g ea e de ail h oughou his sec ion, he igu es below p o ides an
o e iew o he ypes o in e ac ions and linkages p esen in he alue
-
chain o ea in
Vie Nam. I maps he en i e alue
-chain o ea and highligh s he
ole o he
subca ego ies o ac o s and hei in e ac ions.
Figu e 6: Tea alue chain in Vie nam
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
5
in ol es he pa icipa ion and in e ac ion o di e en
ea ade s,
Howe e , he alue chain o ea, in ac , is a complex one. While i in ol es jus h ee
ea p ocessing, and he sale o
d y ea –
o each will be
discussed in g ea e de ail h oughou his sec ion, he igu es below p o ides an
chain o ea in
ole o he
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
6
Each s akeholde can be ca ego ized in o di e en g oups. P oduce s, o example, ou ypes a e
iden i ied: unlinked a me s, con ac a me s, wo ke a me s, and coope a i e a me s.
Simila ly, p ocesso s can be di e en ia ed as household p ocesso s, p i a e p ocesso s, join -
en u e companies, and S a e-owned companies.
5.1 P oduce s (Fa me s)
Acco ding he mos ecen Ag icul u al Census (GSO 2003) epo , Vie Nam has nea ly 400,000
ea g owing households ha a e mainly concen a ed in la ge ea p oducing egions such as he
No heas (65 pe cen o p oduce s), No hwes (8pe cen ), No h Cen al (9 pe cen ) and he
Cen al Highlands (8 pe cen ).
The e a e ou ypes:
Wo ke a me s a e mainly wo ke s o plan a ions o companies. They a e now alloca ed
land o up o 50 yea s on he condi ion ha hey p oduce ealea based on company dic a es.
Con ac a me s a e ea a me s who ha e hei own land bu sign con ac s wi h
companies o sell a po ion o all ou pu .
Coope a i e a me s a e membe o coope a i es o ganized o p oduce ea.
Unlinked a me s a e hose who p oduce and sell ea on he open ma ke , ei he o ade s
o p ocesso s.
O all hese channels, wo ke a me s and con ac a me s ypically enjoy be e li ing s anda ds
han unlinked a me s. These a me s ecei e bene i s such as s able ou pu ; access o good
quali y land; echnical aining; c edi access; e i emen pension and insu ance agains sickness.
5.2 P ocesso s
The de elopmen o p i a e sec o along wi h ad en o echnology and anspo in as uc u e
and educ ions in he cos o p ocessing equipmen has enla ged he size o ea p ocesso s. Vie
Nam now has o e 600 p ocesso s wi h capaci ies o 3 o 7 ons o esh ea pe day and o e
10,000 adi ional p ocessing households. Fi e di e en ypes o p ocesso s a e iden i ied: (a)
non- egis e ed households, (b) egis e ed households, (c) p i a e companies, (d) S a e-owned
en e p ises, and (e) Join - en u e and o eign companies.
Non - egis e ed households and egis e ed household p ocesso s
Non- egis e ed household p ocesso s use hei own ea-lea p oduc ion and ha o o he
p oduce s o p oduce d y ea. Typically, he capaci y o hese p ocesso s is only 70-100 kg o
esh ea pe day. All o hese households manu ac u e d y ea by using hand o mo o d ie s.
Regis e ed household p ocesso s ope a e on a la ge scale han non- egis e ed households, and
ha e hei own bank accoun . Howe e he e has been a sha p dec ease in he numbe o hese
wo ypes o e he las decades.
P i a e p ocessing companies
P i a e companies a e much bigge han household p ocesso s in e ms o scale, capaci y,
equipmen and labou use. They p ocess bo h g een and o hodox black ea, using aw ma e ial
pu chased om lea ade s and household p oduce s. On a e age, hese p ocesso s manu ac u e
abou 400 ons o d y ea pe yea (in Moc Chau, Son La). Some companies only p ocess d y ea
o sell o o he s o expo , o he s, meanwhile a e di ec ly linked o expo companies o educe
in e media e cos . In gene al, small en e p ises p e e o egis e as companies a he han
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
7
households due o many p i ileges. Fi s , such en e p ises a e ypically in ol ed in o he
ac i i ies besides ea and as such, o mal egis a ion as a company makes i easie o do business.
Second, i enabled hem o a oid local go e nmen in e en ion.
5.3 T ade s
The e a e wo ypes o ea ade s: ealea assemble s and d y ea ade s.
Tealea assemble
Local ealea assemble s collec esh ea om indi idual households using bicycles and
mo o bikes. Tealea assemble s buy ealea om household g owe s in he egion, hen sell o
p ocesso s in he commune o o ealea ade s. The ac ha ealea begins o de e io a e a e 4-
6 hou s means i mus be mobilized immedia ely o p ocessing.
D y ea ade s
D y ea ade s a e hose pu chasing d y ea om p ocesso s and hen packaging and labelling he
p oduc s be o e sale o wholesale s o e aile s. Typically hey use ca s o ucks o anspo
p oduc s and possess mo e ma ke ing expe ience. In addi ion, la ge scale o ope a ions made
ading ne wo k o ade s wide. They la gely sell d y ea o o he dis ic s and deli e o o he
p o inces o bo h wholesale s and e aile s o companies o expo .
None heless, oday ea lea assemble s almos disappea . Tea p ocesso s o en di ec ly con ac
wi h a me s ( ea p oduce s) in he egions and pu chase ealea o educe in e media e cos .
5.4 Domes ic wholesale and e aile s
As pa o he alue chain, he wholesales pu chased y ea, which a e packaged and labelled om
ea ade s and hen dis ibu e o e aile s. Wi h ega d o e aile s, cu en ly in he ci y, he e a e
ou main pa hs o ea e ail: small ea houses, ea ba s, adi ional ea e aile s and supe ma ke s.
In la ge ci y, he inc ease in he numbe o ea ba s has esul ed in a all in he numbe o
adi ional ea e aile s and small ea houses. In ecen yea s, supe ma ke s o la ge agen s ha e
become des ina ions o la ge numbe o consume s due o i s sa eness and di e si y in p oduc s.
This kind o consump ion is g adually eplacing pu chases o g een ea om adi ional e aile s
because supe ma ke p ice is anspa en , p oduc s a e sa e, and i is con enien o consume s.
The company a he han he supe ma ke se s he p ice o ea in supe ma ke s. And supe ma ke s
pay ea companies a e making sales.
5.5 Expo e s
A p esen , abou 80 pe cen o Vie Nam’s ea ou pu is des ined o expo . In 2006, acco ding o
VITAS,app oxima ely 180 companies in Vie nam expo ed ea. In compa ison wi h he numbe o
ice expo e s o co ee expo e s, he school o ea expo e s is much highe . Tea can be expo ed
h ough h ee channels:
S a e-owned en e p ises (mos ly h ough VINATEA)
Join - en u e and o eign companies
P i a e companies (including limi ed and join s ock companies).
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
8
The ole o he s a e has d opped ma kedly in ecen yea . The p i a e sec o in expo is
becoming inc easingly impo an . In 2007, p i a e companies accoun ed o 12 o he 19 la ges
expo e s.
6. P
ROFITS AND MARGINS
This pa examines he p oduc ion cos s, p o i s, and ma gins acc uing o key pa icipan s in alue
chains wi h an emphasis on e u ns o p oduce s.
6.1 Cos and P o i o ac o s in ea alue chain
I is due o limi ed ime and expense, he s udy is supposed o p o ide ho ough desc ip ion abou
p oduc ion cos o speci ic ea a ie ies: LDP1
Cos and P o i o ealea p oduce
A esea ch su ey ca ied ou in Moc Chau, Son La examines he p oduc ion cos o p oduce s in
Moc Chau ea a m as ollowed.
Table 1: Tea p oduc ion cos o wo ke a me s in Moc Chau, Son La in 2014 (10.000m2)
I ems Uni To al Cos (VND)
A Cos
Labo cos ------ 0
Ma e ials Cos Kg 26,025,000
O he Cos 1,000,000
B To al Cos VND/ha 27,025,000
C To al Uni Cos VND/kg 2,460
D Sale P ice VND/kg 6,000
E Re enue VND/ha 66,000,000
F P o i VND/ha 39,075,000
G Uni P o i VND/kg 3,540
Tealea a me s no mally do no ake in o accoun he labou cos because hey use he amily
labou . The ypical sale p ice o ealea is 6,000 VND pe kg .In such a way, o al cos pe uni is
a 2,460 VND pe kg and he a me s gain a ne p o i o 3,540 VND pe kg. Acco dingly, hey
may hink hey a e doing well while in ac , he o al p oduc ion cos o hei ealea exceeds i s
alue.
Cos s and P o i o P i a e p ocessing companies
Wi h a la ge scale o p oduc ion, p i a e companies ypically p oduce abou 11,000 kg o d y ea
pe mon h on he plan ed a ea o 10ha (100.000 m2). No mally, p i a e p ocessing companies pu
on p oduc ion in 10 mon hs pe yea , meaning ha annual d y ea ou pu will be 110,000 ons.
The able below will display p oduc ion cos o p oduce 22,000 ons d y ea om 110,000 ons
esh ealea .
In e na ional Jou nal o Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 3, Sep embe 2015
9
Table 2: D y ea p oduc ion cos o p i a e p ocessing company (100,000 m2)
I ems Uni Quan i y P ice Cos s (VND)
Sha e
(%)
Cos
F esh Tea
Kg
110,000
6,000
660,000,000
44.6
Labo
People
10
2,000,000/mon h
200,000,000
13.5
Fixed asse Dep ecia ion
9,000,000
0.61
Managemen Cos
Mon h
12
30,000,000
360,000,000
24.34
O he Cos
250,000,000
16.92
Coal
Elec ici y
Tax
To al Cos VND 1,479,000,000 100
To al Uni Cos
VND/kg
67,228
Sale p ice VND/kg 80,000
Re enue
VND
1,760,000,000
P o i VND 281,000,000
Uni P o i VND/kg 12,772
As shown, among cos i ems, expense o esh ea accoun s o 44,6 pe cen o he o al cos . Due
o la ge p oduc ion scale, p i a e p ocessing companies incu la ge p oduc ion cos , including
capi al o in es in machine y and echnical equipmen , ac o ies building, high-quali ied
enginee s, skil ul wo ke s wi h expe ience in manu ac u ing. Thei o al uni cos is VND 67,228
pe kg and he sale p ice eaches 80,000 pe kg.
Cos and p o i s o d y ea ade s
D y ea ade s can play he ole o dis ibu o s o wholesale s o di ec sale o cus ome s bu he
majo i y is wholesale s. Tea ade can buy d y ea om p i a e i ms o p oduce hemsel es,
hen packaging and labelling he p oduc s o dis ibu ion, s o age and sale. This pa examines
he cos s and p o i o d y ea ades.
Table 3: Cos and p o i s o d y ea ade s
I ems Uni Quan i y P ice Cos s (VND) Sha e
D y Tea Kg 4400 80,000 352,000,000 82.68
Labo Cos People 10 2,000,000 20,000,000 4.7
Fixed asse Dep ecia ion 3,750,000 0.88
Ro a ing Machine 5,000,000
Vacuum
Packaging Machines
400,000,000
Managemen Cos 30,000,000 7.04
O he cos s VND 20,000,000 4.7
To al Cos VND 425,750,000 100
To al Uni Cos VND/kg 96,761
Sale p ice 125,789
Uni P o i VND/kg 29,028
