Increasing at an annual rate of 6 per cent, the vegetable sector in Vietnam is an important source of income for smallholder farmers, and provides nutritional security to the Vietnamese people. Vegetable production is currently focused in the urban-rural interfaces of Hanoi and Ho Chi Minh City (HCMC), and the specialised production region of Da Lat. Unlike Da Lat, which has developed infrastructure such as cool rooms and distribution centres, Hanoi and HCMC have limited capacity to supply the growing northern market due to low yields and high production costs. The transportation of vegetables from Da Lat to the northern market in unrefrigerated trucks means that poor quality produce is offered to customers. These complications have led to excess demand for temperate vegetables being supplemented through Chinese imports. However, both consumers and the Government sector have raised concerns regarding the safety of vegetable imports, and are seeking an alternative supply.

With peri-urban areas under increasing pressure to be developed into residential areas in HCMC and Hanoi, there is a need to find suitable alternative locations for vegetable production. Elevated growing regions in the Son La province have the potential to meet this demand, if developed appropriately. ACIAR project AGB-2009-053 seeks to analyse consumer demand and alternative marketing channels to develop small-holder based vegetable systems. The suitability of production environments in Son La will also optimise vegetable quality and yield. In this way, the project will strengthen the linkages, awareness and capacities of public and private stakeholders. The achievement of these objectives would create an effective and sustainable link between vegetable suppliers in northern Vietnam and modern retailers. The project forecasts that should be sector be successfully developed, regions in Son La could supply 50 per cent of total consumption during the six-month supply window. This will also achieve gains in consumer welfare, income generation and poverty alleviation for small-holder farmers in the province.