Economic impact of direct marketing and contracts: The case of safe vegetable chains in northern Vietnam

The paper investigates the respective impacts on incomes of contractual arrangements, direct sales and spot marketing for “safe vegetable” farmers in northern Vietnam. It is based on a survey of 137 peri-urban vegetable farmers that was analyzed using different econometric methods to correct selection biases. Direct sales and contractual arrangements have a significant positive impact on income compared to spot marketing. Contracts have less impact on income compared to direct sales. It is recommended that policies be formulated to stimulate direct dealings between farmers and consumers, which enhance consumer confidence in terms of quality and translate into higher farmer income than anonymous exchanges or contracts.