TAILIEUCHUNG - The development of a private trading system for agricultura products in mountainous a reas of North, Vietnam

During Vietnam’s command economy, state companie s played an important role in trading industrial commodities and agricultural products. Recent transformation toward a market-oriented economy with government intervention has stressed the emergence of new actors, particularly private traders who promote the development of the trading system, market competition and enhanced agricultural production. | The Development of a Private Trading System for Agricultural Products in Mountainous Areas of North Vietnam1 Tran Huu Cuong Faculty of Economics and Rural Development Hanoi Agricultural University Summary During Vietnam s command economy state companies played an important role in trading industrial commodities and agricultural products. Recent transformation toward a market-oriented economy with government intervention has stressed the emergence of new actors particularly private traders who promote the development of the trading system market competition and enhanced agricultural production. The goal of this paper is to analyze the development process of 110 private traders in two districts of the Son La province - Yen Chau and Mai Son. The traders are classified into three groups based on annual surveys based on such trader characteristics as ethnic group profession business resources kind of products and the volume and turnover of trade. Annually thousands of tons of agricultural products are traded to regions of the country with a turnover of tens billion VND from a production radius of hundreds of km. The study points to the positive effects of credit and loans from the State Bank on the business capital of private traders. It also points to certain constraints and opportunities of private traders in term of buying storage preprocessing transportation and payment. Background Son La province is representative of mountain areas of North Vietnam. Lying approximately 300 km to the north-west of Hanoi along the Laotian border the province covers 14 000 km2 of hilly terrain with 400 000 hectares of arable land and 1 000 000 of forest land. The population of Son La province is 900 000 more than half of which are ethnic minorities. The economy of Son La is largely dependent upon agriculture. Paddy is grown in valleys with sufficient water supply. Upland areas are usually cultivated with maize cassava and hill rice. Many villages have no access to paddy land and are .

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