Organic Farming Based on Participatory Guarantee Systems: Exploring Economic Performance of Farmers in the Northern Delta Provinces of Vietnam

Abstract

Faculty of Economics, Tay Nguyen University, 567 Le Duan Street, Buon Ma Thuot City, Dak Lak Province, Vietnam. The study aims to evaluate the economic performance of Participatory Guarantee Systems (PGS) in certifying organic vegetable farmers in Northern Vietnam. Moreover, this study identifies the differentiation between prosperous and non-prosperous farmers by analyzing critical factors associated with farm management. With a multi-stage cluster sampling technique, the data were collected from three provinces in Northern Vietnam between March and April, 2023. The findings indicate that PGS farming has the potential to be more efficient than conventional farming, mainly due to reduced intermediate costs and access to niche markets. However, PGS farms are more labor-intensive due to their reliance on manual practices. In addition, the selling approaches and technical progress significantly impact economic viability. These findings highlighted the need to develop market access and enhance farmers' confidence in sustainable agricultural practices to advise the competitiveness of PGS farms. Keywords: Determinants, economic performance, participatory guarantee systems, organic farms, labor cost, market access, Vietnam.