The demand for unpolluted agricultural products in the great cities of Vietnam

Type Journal Article - Scientific Journal of the Ministry of Science, Technology and Environment
Title The demand for unpolluted agricultural products in the great cities of Vietnam
Author(s)
Publication (Day/Month/Year) 2006
Abstract
Economic growth and international market integration lead to changes in food consumption patterns. Especially in Vietnam’s metropolitan areas, rising income levels, new purchase habits, and growing concerns about food safety are observed. In fresh horticultural produce, consumers are particularly worried about chemical residues. These developments go along with transformations in the food and retail sector. In this article we analyze demand patterns of fresh fruits and vegetables with different indicators that consumers employ for food safety assurance. Data from a representative survey of almost 500 households in Hanoi and Ho Chi Minh City serve as basis for the analyses. Results indicate high income elasticities of demand for fresh produce with formal safety declarations like labels or brand names. The highest income response is found for fresh produce offered in modern retail outlets, especially supermarkets. Since average incomes of Vietnamese households will further increase, domestic demand for fresh products thatare certified to be safe is projected to rise substantially in the future. The food and retail industry should adapt to these trends and take advantage of emerging opportunities. This process should be supported by appropriate labeling and monitoring policies.

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