TAILIEUCHUNG - Wicked problems: a value chain approach from Vietnam’s dairy product

This paper will map and analyze the value chain of the dairy industry in Vietnam. It will also assess the value created in each activity in order to imply solutions for a sustainable development of Vietnam’s dairy industry. | Khoi SpringerPlus 2013, 2:161 a SpringerOpen Journal RESEARCH Open Access Wicked problems: a value chain approach from Vietnam’s dairy product Nguyen Viet Khoi1,2 Abstract In the past few years, dairy industry has become one of the fastest growing sectors in the packaged food industry of Vietnam. However, the value-added creation among different activities in the value chain of Vietnam dairy sector is distributed unequally. In the production activities, the dairy farmers gain low value-added rate due to high input cost. Whereas the processing activities, which managed by big companies, generates high profitability and Vietnamese consumers seem to have few choices due to the lack of dairy companies in the market. These wicked problems caused an unsustainable development to the dairy value chain of Vietnam. This paper, therefore, will map and analyze the value chain of the dairy industry in Vietnam. It will also assess the value created in each activity in order to imply solutions for a sustainable development of Vietnam’s dairy industry. JEL code: M10, M11 Keywords: Value chain analysis, Dairy industry, Vietnam’s dairy industry, Production management Mapping the value chain of Vietnam’s dairy industry Each industry has their own value chain systems and these value chains will also be adjusted due to regional characteristics. The value chain of Vietnam’s dairy sector consists of five activities as: ingredients, production, processing, marketing and consumption (See Figure 1 The value chain map of Vietnam’s dairy industry). We will be able to understand these activities by analyzing each activity and player participating in these value chains. By thoroughly examine the two most important activities, milk production and processing, we will have a clear answer why there still existed inadequacies of value added creation in these two activities. In addition, this research does not carry out on humans, which does not have

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