1、 STUDY ON FLOWERS AND ORNAMENTAL PLANTS SECTOR IN VIETNAM Updated version 8 April 2024 1 TABLE OF CONTENTS FOREWORD.3 SUMMARY.5 PART 1:INTRODUCTION.6 1.1.Background.6 1.2.Objective.7 1.3.Research methodology.7 1.3.1.Data collection.7 1.3.2.Analysis method.8 PART 2:OVERVIEW OF FLOWERS AND ORNAMENTAL

2、PLANTS SECTOR IN VIET NAM.9 2.1.Overview of flowers and ornamental plants sector in Viet Nam.9 2.2.Trade.12 2.2.1.Import.12 2.2.2.Export.14 2.3.Market and consumer preferences.18 2.3.1.Market value.18 2.3.2.Consumer preferences.18 2.4.SWOT analysis.20 PART 3:VALUE CHAIN ANALYSIS OF FLOWERS AND ORNAM

3、ENTAL PLANTS IN 5 TARGETED REGIONS.22 3.1.Lam Dong.22 3.1.1.Key characteristics of major market segments.22 3.1.2.Value chain mapping.24 3.1.3.SWOT analysis.25 3.2.Ha Noi.25 3.2.1.Key characteristics of major market segments.25 3.2.2.Value chain mapping.27 3.2.3.SWOT analysis.28 3.3.Ho Chi Minh City

4、.29 3.3.1.Key characteristics of major market segments.29 3.3.2.Value chain mapping.31 3.3.3.SWOT analysis.32 3.4.Dong Thap.33 3.4.1.Key characteristics of major market segments.33 3.4.2.Value chain mapping.35 3.4.3.SWOT analysis.36 3.5.Son La.37 3.5.1.Key characteristics of major market segments.37

5、 3.5.2.Value chain mapping.39 3.5.3.SWOT analysis.40 PART 4:CONCLUSION AND RECOMMENDATIONS.42 4.1.Conclusion.42 4.2.Recommendation.44 References.47 2 LIST OF FIGURES Figure 1:The gross output of selected sector and sub-sectors at constant 2010 price and average growth rate in 2015 and 2021.9 Figure

6、2:Cut flowers production by types.11 Figure 3:Ornamental plants area in 2015 and 2021 by region.11 Figure 4:Ornamental plants area in 2021 by types.12 Figure 5:Vietnams import value of flowers and ornamental plants in the period 2016-2022.12 Figure 6:Structure of Vietnams flower and ornamental plant

7、 import market in 2022.13 Figure 7:Import value of 4 main types of flowers and ornamental plants in the period 2015-2022.13 Figure 8:Structure of imported flowers and ornamental plants in Vietnam.14 Figure 9:Vietnams flower and ornamental plant export value from 2016-2022.14 Figure 10:Vietnams flowe

8、r and ornamental plant export market structure in 2022.15 Figure 11:Structure of flowers and ornamental plants exported by Vietnam.16 Figure 12:Structure of cut flower export types of Vietnam in 2022.16 Figure 13:The main market of Vietnam cut flower export in 2022.16 Figure 14:Structure of fresh fl

9、owers exported to Japan in 2022.17 Figure 15:Flower area and output of Lam Dong in the period 2015-2022.22 Figure 16:Structure of flower growing area by district of Lam Dong in 2022.22 Figure 17:Structure of area by main flower type,2022.22 Figure 18:Flower value chain in Lam Dong province.24 Figure

10、 19.Current status of flower and ornamental plant production in Me Linh district in 2023.26 Figure 20:Cut flower value chain in Ha Noi.27 Figure 21:Area of flowers and ornamental plants by types in 2022.29 Figure 22:Area of flowers and ornamental plants by districts.30 Figure 23:Mokara orchids suppl

11、y chain in Ho Chi Minh City.31 Figure 24:Area of flowers and ornamental plants of Lam Dong in the period 2015-2022(ha).33 Figure 25:Structure of area by districts in 2022(%).33 Figure 26:Structure of area by main types in 2022(%).33 Figure 27:Potted flower supply chain in Dong Thap.35 Figure 28:The

12、area,production of flower cultivation in Son La province.37 Figure 29 Areas of flowers in Son La by districts(%).38 Figure 30:Areas of flowers in Son La by types(%).38 Figure 31:Cut flower distribution chain in Son La.39 LIST OF TABLES Table 1:Some key indicators of flower and ornamental plans secto

13、r in 2000-2020.9 Table 2:Key characteristics of Lam Dongs cut flowers.23 Table 3 Key characteristics of Hanois cut flowers.26 Table 4 Key characteristics of Dong Thaps flower and ornamental plant sector.34 Table 5 Key characteristics of Sn Las cut flowers.38 3 FOREWORD It is with pleasure that we pr

14、esent to you the study report on Flowers and Ornamental Plants sector in Viet Nam.The report is commissioned to assess the current state of the Vietnamese flower and ornamental plant industry(potted plants and cut flowers),to identify the challenges and opportunities.Viet Nam has advantages and enor

15、mous potential for the development of flowers and ornamental plants,considering its culture,diverse climate and natural resources for production,its ambition in the world market.The flower and ornamental plant sector plays a vital role in the crop production strategy of the country with vision to 20

16、30.In recent years,the sector has experienced significant growth fueled by both domestic demand and international markets.However,the sector is still constrained by numerous limitations and has not fully capitalized on its inherent advantages.These limitations diverse from fragmented production,unpr

17、edictable climate change development,poor enforcement of suitable policy for sector development,to the absence of qualified science and technology market,qualified labor and increasingly intensive global competition.We see this report more than a compilation of findings but shedding light on existin

18、g issues and factors influencing the sustainable and prosperous future.It implies a call for action to bring the public and the private stakeholders,growers,industry,and knowledge closer.It urges all stakeholders to engage with the insights presented,fostering dialogue,innovation,and collaborative i

19、nitiatives that uplift the resilience and efficiency of the sector.Our sincere gratitude goes to the European Union for funding this study through the Brexit Adjustment Reserve and the Netherlands Enterprise Agency(RVO).Our appreciation also goes to the team of AGROINFO for their diligence and exper

20、tise in this study.Thank you and we hope you enjoy reading.Ingrid Korving Agricultural Counselor Royal Netherlands Embassy in Vietnam Contact information Embassy of the Kingdom of the Netherlands 7th floor,BIDV Tower,194 Tran Quang Khai street Hoan Kiem district,Hanoi,Viet Nam Telephone:+84(0)24 383

21、1 5650 Email:han-lnvminbuza.nl 4 Disclaimer:Embassy of the Kingdom of the Netherlands does not guarantee the accuracy,completeness or currency of the data included in this work and does not assume responsibility for any errors,omission or discrepancies in the information,or liability with respect to

22、 the use of or failure to use the information,methods,processes,or conclusion set forth.The intellectual property right of this report belongs to the Embassy of the Kingdom of the Netherlands in Viet Nam.The Embassy of the Kingdom of the Netherlands in Viet Nam encourages dissemination of knowledge,

23、this report may be reproduced,in whole or in part for noncommercial purposes as long as full attribution to this report is given.5 SUMMARY Thank to varied climatic conditions,Vietnam has enormous potentiality for the development of flowers and ornamental plants,ranked as the 14th nation with most bi

24、odiversity globally and good tradition in this field.Flowers and ornamental plants products are divided in to two main groups,including cut flowers(Rose,Chrysanthemum,Orchid,Carnation,and Lilies,etc)and ornamental plants(pot flowers and fruits,interior ornamental plants,bonsai trees and others.From

25、2015 to 2021,the gross output value of flowers and ornamental plants sector increased by nearly 2 times with the average growth rate of 11.8%/year.In 2022,the sub-sectors output was VND 37.97 thousand billion equivalent to 1559 million USD,accounting for 3.99%of the cultivation sector.Total flowers

26、and ornamental plants area was 48.91 thousand ha,mainly in Red River Delta,Mekong River Delta and Central Highland regions.These three regions accounted for 76%of total flowers and ornamental plants area.Top provinces/cities with large area and output of flowers and ornamental plants are Lam Dong(9,

27、740.5 ha),Ha Noi(8,293.65 ha),Nam Dinh(3,390 ha)Ho Chi Minh(2,325 ha),Dong Thap(2,162 ha)and Son La(267ha).The majority of Vietnams flower and ornamental plant market is driven by domestic consumption,constituting approximately 90%of the nations total output.This sub-sector plays a significant role

28、in various aspects of life in various occasions in Vietnam(Lunar new year,marriages,funerals,birthdays,anniversaries,traditional and cultural festivals).With rising incomes allows Vietnams burgeoning middle class to buy more expensive and exotic flowers and plants.In addition to local consumption,Vi

29、etnams flower indicates significant untapped potential and ample room for growth in the export market.From 2016 to 2022,the export value of flowers and ornamental plants from Vietnam increased with a compound annual growth rate(CAGR)of 8.57%per year.The export value rose from 64.65 million USD in 20

30、16 to a record high of 105.91 million USD in 2022.Vietnam exported flowers and ornamental plants to 44 countries in 2022,with the top 5 markets being Japan,Korea,the Netherlands,the USA and Australia Although the flower and ornamental plant industry is currently an important industry,contributing to

31、 the restructuring of the farming industry,it faces many limitations:(1)scattered and small production scale(only a few key localities have specialized and commercialize areas such as Lam Dong,Hanoi,and Dong Thap);(2)Lack of linkages in the value chains and limited number of businesses;(3)Backward f

32、lower and ornamental plant production techniques along with limited advancements in techniques for harvesting,processing,preserving,and packaging products;(4)Unqualified plant varieties and agricultural materials and lack of proper copyrights of most imported flower and ornamental plant varieties;(5

33、)Over usage of Pesticide;(6)Most exported cut flowers are fresh,characterized by low value and perishability while higher durability and added value products represent a tiny portion of the export turnover of cut flowers.Toward a sustainable development of flowers and ornamental plant sector in Viet

34、nam,it is recommended to supplement and improve policies and specific support to develop and attract investment for the flower and ornamental plant industry in advantaged regions;increase investment in science and technology in production,processing and preservation and promote production linkages a

35、long the value chain.6 PART 1:INTRODUCTION 1.1.Background Vietnam has enormous potential for the development of flowers and ornamental plants,ranked as the 14th nation with most biodiversity (Nash,2023)and having the worlds oldest tradition in this field.Vietnams diverse climate resources,encompassi

36、ng tropical,subtropical,and temperate regions,enable the cultivation of a wide array of flowers and ornamental plants.Furthermore,Vietnam boasts a rich and varied genetic pool of these plants,encompassing numerous valuable resources that command high demand both domestically and internationally.In r

37、ecent years,the floriculture and ornamental plant sectors have experienced significant growth in terms of productivity,quality,and efficiency,leading to job creation for thousands of households and contributing significantly to the agricultural industrys GDP.These advancements have facilitated parti

38、cipation in exports,contributing to the agricultural crop restructuring efforts and the establishment of new rural areas.As of 2021,Vietnam has cultivated around 50,000 hectares of flowers and ornamental plants,with an average income of approximately 350 million VND per hectare per year.The producti

39、on value in 2021 reached 37.9 trillion VND at actual prices,with exports amounting to approximately 80 million USD annually.The flower and ornamental plant sector play a vital role in the restructuring of Vietnams cropping sector,offering access to a lucrative consumer market.Despite the previous ne

40、ed to import various types of flowers and ornamental plants,the industry has now witnessed significant growth due to the active participation of enterprises in production.This has not only fulfilled domestic demand but also enabled Vietnam to establish a strong presence in the global market,exportin

41、g a diverse range of products with substantial economic value.The demand for flowers and ornamental plants in the country is continuously on the rise.According to the survey data of the Research Institute of Fruits and Vegetables,the demand for flowers and ornamental plants increased by over 11%per

42、year in the period of 2011-2019.The consumption of flowers and ornamental plants increased rapidly,especially in urban area.Therefore,in the Scheme to develop the flower and ornamental plant sector to 2030,under Decision No.4081/QD-BNN-TT issued by the Ministry of Agriculture and Rural Development o

43、n October 26th 2022,by 2030,the flower growing area will be about 43-44 thousand hectares,with an output of about 14-15 billion branches;The ornamental planting area will be about 16.0-16.5 thousand ha,with an output of about 55-56 million pots/tree.The key flower production areas are in the provinc

44、es of Hanoi,Quang Ninh,Hai Duong,Hai Phong,Hung Yen,Thai Binh,Nam Dinh,Lao Cai,Bac Giang,Son La,Thanh Hoa,Thua Thien Hue,Phu Yen,Gia Lai,Lam Dong,and Ho Chi Minh City.These key production areas will form specialized farming areas,based on craft villages,and be associated with rural tourism developme

45、nt.The main solutions to achieve these targets include the application of science and technology,and the development of standard organic and biological farming models.The goal is that by 2023,the flower growing area with high technology applications will account for 15-20%However,Vietnams flower and

46、 ornamental plant sector is also facing several limitations in both production and the market.The current production of ornamental flowers in Vietnam is mostly spontaneous,lacking a cohesive master plan and a long-term strategic outlook for future development.Moreover,specific solutions for sustaina

47、ble growth are also lacking.Many varieties of beautiful ornamental flowers and plants with high commercial value are imported from abroad and are protected by copyright,limiting local production.Additionally,the consumption and market development for Vietnams flower and ornamental products are const

48、rained,particularly since the outbreak of the Covid-19 epidemic,which led consumers to reduce spending on non-essential goods and services.Despite these limitations,the flower and ornamental plant industry in Vietnam has the 7 potential to grow.The government has set ambitious targets for the indust

49、ry,and there are a number of opportunities for growth,such as the increasing demand for flowers and ornamental plants in the domestic market and the growing export market.In order to achieve its full potential,the industry needs to address the limitations that it faces.1.2.Objective The objective is

50、 to assess the current state of the Vietnamese flower and ornamental plant sector(potted plants and cut flowers),identify the challenges and opportunities,then propose solution to develop a sustainable and profitable sector which is resilient and adaptable to the climate challenge.1.3.Research metho

51、dology 1.3.1.Data collection 1.3.1.1.Secondary data collection The research team reviewed related documents on current situation of Vietnamese flower and ornamental plant sector with the consideration of these issues:production,markets(import and export),distribution system,marketing and promotion o

52、f flowers and ornamental plants.The study also conducted a review of policies and strategies on Vietnamese flower and ornamental plant sector.In addition,secondary data and information were collected from General Statistics Office,Ministry of Agriculture and Rural Development;Department of Agricultu

53、re and Rural Development,Sub-Department of Crop to describe the status of flower and ornamental plant sector in Vietnam as well as in the selected provinces.1.3.1.2.Primary data collection a)Sampling method Site selection:The research team selected 5 cities/provinces,including Hanoi,Ho Chi Minh city

54、,Lam Dong,Dong Thap,Son La for the field study.The 5 provinces are selected based on the criteria:(1)large area and output of flowers and ornamental plants;(2)large consumption markets of flowers and ornamental plants.Target respondents:The research team consulted and surveyed information of stakeho

55、lders related to Vietnamese flowers and ornamental plants sector in 5 cities/provinces.Target respondents include local authorities,farmers,enterprises,cooperatives,and flower associations.Stakeholders Hanoi Ho Chi Minh City Lam Dong Dong Thap Son La Total Survey tool Local Gov.2 2 2 2 2 10 Discussi

56、on,secondary data collection(reports,statistics,policies,etc.)Key informant interview Enterprise 5 enterprises/province 25 Questionnaire;Cooperative 5 cooperatives/province 25 Farmer 10 10 10 10 10 50 Questionnaire;Focus group discussion Others Vietnam Ornamental Flower Association;Dalat Flower Asso

57、ciation;etc.Wholesalers in Hanoi and HCM city;10 Discussion,secondary data collection(reports,contacts of potential business partners,etc.);Key informant interview 8 Stakeholders Hanoi Ho Chi Minh City Lam Dong Dong Thap Son La Total Survey tool TOTAL 120 b)Survey method In-depth interviews using qu

58、estionnaires with stakeholders including local authorities(Department of Agriculture and Rural Development at provincial level),companies,cooperatives and farmers to collect in-depth information on the current state of the Vietnamese flower and ornamental plant sector,and identify the challenges and

59、 opportunities of the sector.Focus group discussion(FDG)with smallholder farmers to have understanding of flower and ornamental plant value chain,market information,marketing and promotion,and consumer preferences.1.3.2.Analysis method In this study,descriptive analysis of current situation of flowe

60、rs and ornamental plants sector in Vietnam as well as selected provinces was conducted to have a better understanding of the flowers and ornamental plants sector in Vietnam.The value chain analysis in 5 selected provinces was conducted to clarify the roles and relationships of stakeholders in the fl

61、ower and ornamental plants sector in Vietnam,finding out the key factors that can enhance efficiency,productivity,and sustainability across various stages of the value chain.In addition,the SWOT analysis was also utilized to assess strengths,weaknesses,challenges,and opportunities of the flower and

62、ornamental plant sector in Vietnam.This analysis helped with strategic decision-making,identifying areas for improvement,exploiting opportunities,and addressing potential threats.It served as a foundation for developing effective strategies and action plans to achieve sustainable goals of the flower

63、s and ornamental plants sector.9 PART 2:OVERVIEW OF FLOWERS AND ORNAMENTAL PLANTS SECTOR IN VIET NAM This section will present an overall picture of the development of flower and ornamental plants sector in Vietnam.The dimensions of production,trade,market and consumer preferences and SWOT analysis

64、will be considered thoroughly.2.1.Overview of flowers and ornamental plants sector in Viet Nam Vietnam is a country that has tradition of growing flowers and ornamental plants with appropriate natural condition.Geographical location,soil conditions,diverse climate condition in both tropical,subtropi

65、cal and temperate,so it can grow many types of flowers and ornamental plants.In recent years,flowers and ornamental plant sector has dramatically developed,bringing high economic value and income for producers.Many provinces have idenfined flowers and ornamental plants as an important economic secto

66、r.From 2015 to 2021,the gross output value of flowers and ornamental plants sector increased by nearly 2 times with the highest average growth rate of 11.8%/year in comparison with crop sector and other sub-sectors.In 2021,the sectors gross output was VND 37.97 thousand billion equivalent to 1559 mi

67、llion USD,accounting for 3.99%of total gross out of crop sector(Figure 1).Figure 1:The gross output of selected sector and sub-sectors at constant 2010 price and average growth rate in 2015 and 2021 Unit:Thousand Bil.VND Source:Statistical Yearbook of Provinces From 2000 to 2020,there was a sharp in

68、crease in both area and average income of flowers and ornamental plants.In 2015-2020 period,the average growth rate of the area and average income of flowers and ornamental plants was 11.03%/year and 13.18%/year,respectively.Specially,the average income from planting flowers and ornamental plants wa

69、s very high(520 Mil.VND/ha/year)in comparison with other crop sub-sectors(about 100-200 Mil.VND/ha)(Table 1).Table 1:Some key indicators of flower and ornamental plans sector in 2000-2020 2000 2005 2010 2015 2020 Total area(ha)6,800 11,600 22,000 26,672 45,000 Average income(Mil.VND/ha/year)125 160

70、220 280 520 5,90%11,80%0,29%3,76%3,84%3,41%8,64%5,63%0,00%5,00%10,00%15,00%Average growth rate in 2015-2021 period0200400600800Crop sectorFlowers and ornamentalRiceCoffeeRubberVegetablesFruitsPepper20212015 10 Sources:Fruits and Vegetables Research Institute1 In 2021,total flowers and ornamental pla

71、nts area was 48.91 thousand ha,mainly in Red River Delta,Mekong River Delta and Central Highland regions.These three regions accounted for 76%of total flowers and ornamental plants area.The provinces that have the largest area of flowers and ornamental plants area in Vietnam include Lam Dong in Cent

72、ral Highland(9.14 thousand ha),Ha Noi(7.8 thousand ha)and Nam Dinh(3.39 thousand ha)in Red River Delta,Dong Thap(2.17 thousand ha)in Mekong River Delta.Figure 2:Total area of flower and ornamental plants in 2021 by regions Source:Statistical Yearbook of Provinces Vietnamese government has been encou

73、raging the application of high-technology and digital technology in agriculture sector,including flowers and ornamental plants.There are many models applying high-technology in planting and producing seeds in flowers and ornamental plants sector.High-technologies have been applied such as net and gl

74、ass houses,drip irrigation system,mist spray system,automatic control system in planting and tissue culture and asexual propagation technology to select high quality seed.According to Vietnam Ornamental Creature Association,the applied high-tech area of flowers and ornamental plants in 2021 was 5169

75、.1 ha,accounting for 10.5%of total area.Central Highland takes the lead in applying high-technology with 3130 thousand ha,about 60.5 of total high-tech application area.Flowers and ornamental plants products are divided in to two main groups,including cut flowers(such as:Rose,Chrysanthemum,Orchid,Ca

76、rnation,and Lilies)and ornamental plants.The ornamental plants include pot flowers and fruits,interior ornamental plants,bonsai trees and others.Cut flowers In Vietnam,flowers are planted in most of provinces but there are three largest flower areas,including Red River Delta,Central Highland and Mek

77、ong River Delta.In 2021,total flowers area was 34.287 thousand area,increasing by 9.74 thousand ha comparing to 2015.Lam Dong is the largest flower area with 9.08 thousand ha,following by Ha Noi(9.67 thousand ha)and Dong Thap(2.55 thousand ha).In terms of production,cut flowers production in 2021 wa

78、s about 9.687 billion branches,concentrating in Central Highland with 3.85 billion branches,Red River Delta with 2,37 billion branches,and Mekong Delta with 1.257 billion branches.1 https:/hoinhap.vanhoavaphattrien.vn/thuc-trang-tiem-nang-va-dinh-huong-nghien-cuu-phat-trien-hoa-cay-canh-viet-nam-a58

79、80.html Red River Delta38%North Midland&Moutain Areas8%North Central Coast5%South Central Coast4%Central Highland21%South East7%Mekong River Delta17%11 The main cut flowers include Chrysanthemums,Roses,and Gladiolus with the largest planted area of 11.8 thousand hectares,7.2 thousand hectares,and 2

80、thousand hectares,respectively.Chrysanthemums are grown mainly in the Central Highlands and Red River Delta with an area of 5.9 thousand hectares and 3.3 thousand hectares,respectively,accounting for 50%and 28%of the total chrysanthemum area.Meanwhile,Roses are grown mainly in the Red River Delta wi

81、th an area of 7.2 thousand hectares,accounting for 45%of the total rose area.Gladiolus is mainly planted in Central Highland with area of 1.2 thousand hectares,accounting for 60%of the countrys total gladiolus area.Figure 2:Cut flowers production by types Source:2022 Statistical Yearbook of province

82、s Ornamental plants The ornamental plants include pot flowers and fruits,interior ornamental plants,bonsai trees and others.Pot flowers and fruits are including peach blossom,apricot,ornamental kumquat,orange and pomelo.These groups have been mainly used in many households in Tet holiday.Orchid grou

83、p includes many types of orchids in different color such as Phalaenopsis orchids,Cymbidium orchids.In recent years,The Fruits and Vegetables Research Institute has researched to create many types of orchid and farming process from small to large scale.Interior ornamental plants include some small fl

84、owers and trees that are used to decorate house or office,such as poinsettia,anthurium,raspberry chrysanthemum,petunia,spring leopard,hydrangea,tulip,Bonsai sub-sector are restructuring process towards diversifying and lowering price to meet the market demand.Others ornamental plants include support

85、ing flowers and leaves that enhance the beauty of a flower basket.Commonly used types of branches and leaves are cycad,cycad,magnolia,small-leaved areca palm,laurel,colored leaves.In 2021,ornamental plants area of Vietnam was 14.641 thousand ha,increasing by 2.9 thousand ha in comparison with 2015 w

86、ith average growth rate of 3.8%/year in 2015-2021 period.Red River Delta is the largest area of ornamental plants with 6.3 thousand ha(accounting for 43.1%of total area)but Mekong Delta has the highest area growth rate of 10.1%/year in 2015-2021 period.Figure 3:Ornamental plants area in 2015 and 202

87、1 by region Chrysanthemum34%Rose21%Gladiolus6%Gerbera3%Orchid5%Lilies4%Turberose5%Sunflower1%Others21%12 Source:2022 Statistical Yearbook of provinces Peach Blossom,Apricot and Kumquat are three main ornamental plants that have the largest area.In 2021 the area of these three ornamental plants was 1

88、0.563 thousand ha,accounting for about 72%of total ornamental plants area.Of which Apricot and Peach Blossom area was 4.6 thousand ha and 4.2 thousand ha,respectively while the kumquat area was 1.712 thousand ha.Apricot is grown mainly in the South;Peach Blossom and Kumquat are grown in the North.Fi

89、gure 4:Ornamental plants area in 2021 by types Source:Source:2022 Statistical Yearbook of provinces 2.2.Trade 2.2.1.Import In addition to domestic production,Vietnam imports many flowers and ornamental plants from other markets worldwide.In 2016-2022,Vietnams import value of flowers and ornamental p

90、lants increased with a compound annual growth rate(CAGR)of 12.13%/year,from 82.85 million USD in 2016 to 164.66 million USD in 2022.Figure 5:Vietnams import value of flowers and ornamental plants in the period 2016-2022 Unit:million USD 02000400060008000400016000Total areaRed RiverDeltaNo

91、rthernMidlands&MoutainareaNorthCentralCoastSouthCentralCoastCentralHighlandSouth EastMekongDelta20152021Peach Blossom29%Apricot31%Kumquat12%Others28%13 Source:General Department of Custom Except for 2019,where import value decreased slightly by 6.22%,and 2021 decreased by 14.13%,due to the impact of

92、 the COVID-19 pandemic,all other years recorded positive growth.In particular,in the context of a robust economic recovery after more than two years of difficulties caused by the Covid-19 epidemic,the import value of flowers and ornamental plants in 2022 has reached a record level of 164.66 million

93、USD,an increase of 66.67%compared to 2021.This shows that the demand for flowers and ornamental plants among Vietnamese people and the need for imported varieties for flower and ornamental plant production are increasing.The domestic market has not met consumers quality,diversity,and novelty needs,e

94、specially in the high-income customer segment.Many imported flowers and ornamental plants have advantages in color,fragrance,shape,and durability compared to domestic flowers and ornamental plants.According to General Department of Customs statistics,Vietnam imports flowers and ornamental plants fro

95、m 31 countries.Of these,the five main supply markets for Vietnam are China 39.03 million USD,accounting for 23.7%;Netherlands 36.27 million USD(accounting for 22.02%);Thailand 27.18 million USD(accounting for 16.5%);Japan 23.49 million USD(accounting for 14.3%);Taiwan 21.93 million USD(accounting fo

96、r 13.3%).Figure 6:Structure of Vietnams flower and ornamental plant import market in 2022 Source:General Department of Custom The imported flowers and ornamental plants into Vietnam are categorized into four main groups:Bulbs,tubers,corms,etc.(HS0601);Plants(HS0602);Cut flowers(HS0603);Foliage,branc

97、hes,etc.(HS0604).From 2015 to 2022,the import values of all four groups showed an increasing trend despite fluctuations in group 0601.Specifically,the import value of group 0602 experienced significant growth,rising from 18 million USD in 2015 to 84.7 million USD in 2022,accounting for the largest s

98、hare in the total import value of flowers and ornamental plants in 2022.Figure 7:Import value of 4 main types of flowers and ornamental plants in the period 2015-2022 14 Source:General Department of Custom Over the past eight years,the import structure has undergone a significant shift,with a substa

99、ntial increase in the proportion of plants(HS 0602)and a considerable decrease in the share of bulbs,tubers,corms,etc.(HS 0601).Specifically,the share of plants(HS 0602)has experienced a substantial rise from 23.46%in 2015 to 51.43%in 2022.Conversely,bulbous flowers and ornamental plants achieved a

100、trade value of 44.9 million USD in 2022,showing an increase in value but a sharp decline in proportion,decreasing from 55.47%in 2015 to 27.3%in 2022.The primarily imported bulbous plants include lily bulbs from the Netherlands and New Zealand.The cut flowers group(HS 0603)saw a slight decrease in pr

101、oportion from 2015 to 2022.Figure 8:Structure of imported flowers and ornamental plants in Vietnam Source:General Department of Custom 2.2.2.Export From 2016 to 2022,the export value of flowers and ornamental plants from Vietnam increased with a compound annual growth rate(CAGR)of 8.57%per year.The

102、export value rose from 64.65 million USD in 2016 to a record high of 105.91 million USD in 2022.Although flowers and ornamental plants do not constitute a significant export commodity for Vietnam(accounting for only 0.2%of the total export value of agricultural products in 2022),the escalating expor

103、t value of this category reflects positive developments in Vietnams flower and ornamental plant exports.Figure 9:Vietnams flower and ornamental plant export value from 2016-2022 Unit:million USD 0,020,040,060,080,0100,02000212022Million USDBulbs,tubers,corms,etc(0601)Plants (06

104、02)Cut flowers (0603)Foliage,branches,etc(0604)15 Source:General Department of Custom According to trade statistics of Vietnam Customs,Vietnam exported flowers and ornamental plants to 44 countries in 2022,with the top 5 markets being Japan,Korea,the Netherlands,the USA and Australia.In which,Japan

105、is the largest import market of Vietnam with an imported value of 56.51 million USD,accounting for 53.4%of Vietnams total export value of flower and ornamental plant,ranked second is Korea with 15.55 million USD,accounting for 14.7%of Vietnams total export value.The third is Netherlands with 7.66 mi

106、llion USD,accounting for 7.2%of Vietnams total export value,ranked 4th is USA with 4.61 million USD,accounting for 4.4%.Figure 10:Vietnams flower and ornamental plant export market structure in 2022 Source:General Department of Custom From 2015 to 2022,the structure of export product groups for flow

107、ers and ornamental plants remains mostly unchanged.Cut flowers(HS0603)consistently dominated the export share,increasing from 66.54%in 2015 to 70.16%in 2022.The second largest share was maintained by live plants(HS0602),which had a minor increase from 25.03%in 2015 to 25.66%in 2022.By contrast,the e

108、xport share of foliage,branches,etc.(0604)decreased from 8.39%to 4.16%between 2015 and 2022,however it was still ranked third.The bulb group(0601),which always had the smallest share,shown a slight decrease in share from 0.05%to 0.03%between 2015 and 2022.In 2022,the export turnover of cut flowers r

109、eached 74.3 million USD,marking an impressive increase of 131.3%compared to 2015 and 53.2%compared to 2021.This indicates a growing preference for 16 Vietnamese flowers in the global market,attributed to their durability and significantly competitive pricing compared to Dutch flowers.Figure 11:Struc

110、ture of flowers and ornamental plants exported by Vietnam Source:General Department of Custom Regarding the types of exported flowers,99.9%consist of fresh flowers,while the remaining 0.07%are dried,dyed,bleached,or processed flowers.Among fresh flowers,chrysanthemums are the highest-value export it

111、em,reaching 62.62 million USD and accounting for 84.28%of Vietnams total export turnover in the cut flowers category in 2022,followed by(7.64%),Carnation(2.26%),lily(1.13%),roses(1.06%),and other flower varieties(3.56%).Figure 12:Structure of cut flower export types of Vietnam in 2022 Source:General

112、 Department of Custom Japan is the largest export market for cut flowers from Vietnam,with an export turnover of 48.3 million USD,accounting for 64.97%of Vietnams total export turnover in the cut flowers category in 2022.Additionally,Vietnam also exports flowers to South Korea(19.86%),Australia(5.09

113、%),Taiwan(3.21%),Singapore(1.42%),Hong Kong(1.21%),and China(1.16%).Figure 13:The main market of Vietnam cut flower export in 2022 Carnation 2,26%17 Source:General Department of Custom Vietnam is a significant supplier of flowers to the Japanese market.In 2021,Japans flower imports totaled 528 milli

114、on USD,with imports from Vietnam reaching 45 million USD,accounting for 8.52%and ranking fourth among flower-exporting markets in Japan.The number of people from Asian countries living and working in Japan is currently around 10 million,including approximately 500,000 from Vietnam.As a result,Vietna

115、mese flower products are increasingly recognized and well-received by the Japanese and the Vietnamese community and people from other Asian countries in the Japanese market.These positive signals indicate that Vietnamese flowers have great potential to increase its market share in Japan.Figure 14:St

116、ructure of fresh flowers exported to Japan in 2022 Source:General Department of Custom Japan only imports fresh-cut flowers from Vietnam,primarily chrysanthemums,constituting 88.53%of the total flower export turnover to Japan in 2022.Additionally,Japan imports other flower varieties such as orchids,

117、gladioli,lilies,roses,and various fresh flowers.Despite chrysanthemums being the national flower of Japan,challenging natural conditions and high labor costs hinder their extensive cultivation in the country.In contrast,Vietnam has favorable natural conditions and low labor costs,providing good cond

118、itions for exporting Vietnamese chrysanthemums to Japan.For decorative flowers and various imported agricultural products,Japan highly emphasizes safety and health standards for its consumers.Therefore,the chemicals used for preserving the freshness of flowers must comply with Japans stringent regul

119、ations.Vietnamese flowers must meet over 1,000 quality criteria to be exported to Japan.Chrysanthemums88,53%Orchids 7,95%Carnation1,56%Other fresh flower 1,23%Lily0,55%Roses0,17%18 2.3.Market and consumer preferences 2.3.1.Market value The majority of Vietnams flower and ornamental plant market is d

120、riven by domestic consumption,constituting approximately 90%of the nations total output.With a population of 99.47 million as of 2022,Vietnam,ranked as the 15th most populous country globally,has significant demand for flowers and ornamental plants.In addition to domestic supply sources,Vietnam annu

121、ally imports a substantial quantity of flowers and ornamental plants to fulfill the high demand from local consumers.In recent years,the income of Vietnam citizens has increased significantly.In 2022,the monthly per capita income is projected to reach 4.67 million VND at current prices,marking a nea

122、rly 3.4 times increase from the 2010 figure.As incomes rise,individuals tend to allocate more resources to non-essential expenditures,such as flowers and ornamental plants.Additionally,the ongoing urbanization process plays a pivotal role in driving the demand for these products.In the past 5 years,

123、the demand for flowers and ornamental plants in Vietnam has increased by about 15%/year.According to the Institute of Fruit and Vegetable Research,on average,a Vietnamese person spends approximately 2 USD/year to buy flowers.Although the flower and ornamental plant market in Vietnam has developed si

124、gnificantly in recent years,it is still considered a young market.According to Mordor Intelligence,the Vietnam floriculture market size is growing at a CAGR of 10.49%during the forecast period(2023-2028)2.However,flowers are mainly used in anniversary,holidays or for worship purposes.Only 18.2%of fl

125、ower buyers in Hanoi and 8.6%in Ho Chi Minh City buy flowers for daily enjoyment.Vietnams consumption of flowers and ornamental plants is still low compared to other countries and unevenly distributed.Spending each year on flowers and ornamental plants in Vietnam is only about 1.85 EUR/person,while

126、in Spain it is 14 EUR/person,France is 78 EUR/person,Japan is 37 EUR/person,and America is 101 EUR/person3.In rural areas,the corresponding consumption level is only 20%of that in urban areas.In addition to personal consumption,the demand for flowers and ornamental plants for services such as floral

127、 and garden design,landscaping,green urban planning,green urban maintenance is also growing in Vietnam.However,statistical data for this markets development is currently unavailable.Currently,the consumer market has two main channels:the traditional channel through the market system(including wholes

128、ale markets,retail markets,stalls,and street vendors)and the modern channel through shops,supermarkets,and shopping centers.Besides offline purchases remain popular,especially in rural areas where up to 90%of people prefer buying directly,the development of E-commerce has promoted online consumption

129、 of flowers and ornamental plants in Vietnam.The convenience offered by digital platforms,especially during the Covid-19 pandemic,has led to a significant increase in online flower purchases.Many businesses,responding to changing consumer habits,have established online flower shops,with approximatel

130、y 60%of flower production and distribution businesses engaging in online sales.The demand for online flower orders has surged,constituting 50-70%of some shops revenues.Urban areas witness a higher inclination towards online flower orders compared to rural areas,attributed to better access to modern

131、applications and a greater concentration on online flower shops.2.3.2.Consumer preferences In Vietnam,flowers and ornamental plants play a significant role in various aspects of life.For private market segments,individuals frequently use flowers and ornamental plants for various occasions(such as Lu

132、nar new year,marriages,funerals,birthdays,anniversaries,and more).Specifically,flowers and 2 Floriculture Market in Vietnam-Size,Share&Industry Analysis()3 https:/aiph.org/wp-content/uploads/yearbook/SYB_2021-updated-2.pdf 19 ornamental plants are an integral part of Lunar New Year celebrations in V

133、ietnam with huge cultural significance.Flowers are placed as offerings to the ancestors at altars in homes and businesses around the country.The most consumed products during Tet holidays such as roses,chrysanthemums,lilies,gerberas,orchids,peach blossoms/plants,apricot flowers/plants,etc.The North

134、and the South have different consumption patterns.During Tet,the North prefers peach blossoms/plants or kumquat trees,whereas the South chooses apricot plants.According to the spiritual concepts,they consider these flower/plants to bring luck and help every family have a happy and prosperous year.Vi

135、etnam also has many traditional and cultural festivals and events throughout the year so the demands for flowers is very high.In addition,many Vietnamese people follow Buddhism region and they have the custom of praying every two weeks Flowers also account for a significant portion of the overall ex

136、penditure budget for weddings and are considered to have a high cultural significance during marriage ceremonies in Vietnam4.Flowers are also cherished as special gifts exchanged among Vietnamese people,who often use flowers as a means to express love,gratitude,and sincerity.In addition,people are a

137、lso increasingly investing in their gardens,landscaping as well as in interior decoration,which is contributing to the growth of the market.For decoration purpose,people tend to choose flowering and foliage pot plants over fresh-cut flowers because they have greater durability and practicality in ca

138、re.Currently,more and more people view flowers and plants not merely as decorations but also lifestyle products that symbolize their identity values and to enhance their well-being.There is an increasing disparities in spending on flowers and ornamental plants among different income groups and betwe

139、en urban and rural areas in Vietnam.In urban areas,where living standards are higher,there is a robust demand for premium flowers for various occasions and ornamental plants for home and office decoration.Moreover,urban residents are growing concern about the negative impacts of cities on the enviro

140、nment and life quality,leading to a strong desire to reestablish direct connections with nature.As the expansion of urban upper and middle classes,there is an essential need to incorporate green elements into their lives.This shift in lifestyle preferences is expected to drive increased demand for b

141、oth flowers and ornamental plants in homes and offices,both in terms of volume and value,while decrease its sensitivity to price fluctuations5.Domestic producers and traders need to grasp the flower consumption preferences of urban dwellers,especially high-income groups,to take advantage of market o

142、pportunities.Private companies and public organizations also have increasing demand for flowers and ornamental plants.They have acknowledged the positive impacts of flowers and plants on the creativity,productivity,health,and happiness of workers,and the qualification of work spaces.Interior design

143、companies also often use ornamental plants to decorate offices,shopping malls,restaurants,hotels,etc.Large plants are favored for decoration in new or renovated projects,and public spaces.In addition,the increase in private and government-sponsored events(such as festivals,meetings,conferences)has s

144、ignificantly boosted flower and ornamental plants consumption in Vietnam.In Ho Chi Minh City,the market share for events and conferences in the city alone has surpassed 82.61 million USD,distributed across various venues.4 https:/ 5 Centre for the Promotion of Imports from Developing Countries of Th

145、e Netherlands Ministry of Foreign Affairs(CBI).What Requirements Should Your Cut Flowers and Foliage Comply with to Be Allowed on the European Market?CBI Ministry of Foreing Affairs Market Information.4 May 2017.Available online:https:/www.cbi.eu/market-information/cut-flowersfoliage/buyer-requireme

146、nts.20 2.4.SWOT analysis The SWOT analysis would clarify strengths,weakness as well as opportunities and threats to Vietnams flowers and ornamental plant sector.Strengths Favorable climate and soil suitable for growing flowers and ornamental plants in different climates Diverse and rich varieties of

147、 flowers and ornamental plants,especially diverse genetic source of orchids.Cheap labor cost and hardworking farmers Many support policies from State and local government for the development of crop sector in general(funding research projects,conservation and development of genetic resources;high-qu

148、ality flower and ornamental plant production models,and breeding programs;science and technology transfer program)Vietnams production technology and techniques have been improved significantly Weakness Small sub-sector and lack of a distinct policy framework for its development.Scattered and small p

149、roduction scale(only a few key localities have specialized and commercialize areas such as Lam Dong,Hanoi,and Dong Thap).Lack of linkages in the value chains and limited number of businesses Backward flower and ornamental plant production techniques along with limited advancements in techniques for

150、harvesting,processing,preserving,and packaging products.Only around 45%of the flower and ornamental plant areas were applied with modern agricultural techniques,with approximately 25%of cultivation indoors.Unqualified plant varieties and agricultural materials and overuse of pesticide Most exported

151、cut flowers are fresh,characterized by low value and perishability while higher durability and added value products represent a tiny portion of the export turnover of cut flowers.Lack of proper copyrights of most imported flower and ornamental plant varieties.Opportunities Increasing domestic demand

152、 for flowers and ornamental plants due to the increase in population and living standard.Vietnams population is projected to increase from 98.8 million in 2023 to 104 million in 2030.Significant untapped potential and ample room for growth in the export market.The global flower and ornamental plants

153、 market is valued at USD 40.25 billion in 2022 and is forecasted to reach USD 61.51 billion by 2027,with a compound annual growth rate(CAGR)of 8.8%.Active engagement and integration into the global economy with the reduction of tariffs and commitments to equitable treatment within new-generation Fre

154、e Trade Agreements(FTAs)Threats/Challenges The rapid urbanization process reduces the agricultural land area and putting pressure on specialized areas for flower and ornamental plant cultivation.Stiff competition from other countries,such as the Netherlands,Kenya,and Ecuador,which are major producer

155、s of flowers and ornamental plants.For domestic markets,the reduction of import taxes according to the commitment schedule when implementing FTAs leads to locally produced flowers and ornamental plants facing strong competition from imported products.For international markets,flower producers have t

156、o face increasingly strict quality requirements and phytosanitary barriers in developed markets such as the EU,the United States,and Japan.21 Opportunities from the development of science and technology,coupled with the digitalization Improvement of logistics infrastructure facilitating the producti

157、on and consumption of flowers and ornamental plants on a large scale and at a higher level.Complicated climate change and natural disasters are major threats to the productivity and quality of flower and ornamental plants.Threats of unauthorized replication of varieties or unofficial imports for cul

158、tivating flowers and ornamental plants.22 PART 3:VALUE CHAIN ANALYSIS OF FLOWERS AND ORNAMENTAL PLANTS IN 5 TARGETED REGIONS In this section,the research team carried out value chain analysis of flower and ornamental plants in 5 cities/provinces of Hanoi,Ho Chi Minh city,Lam Dong,Dong Thap,Son La wh

159、ere have large area and output of flowers and ornamental plants and large consumption markets of flowers and ornamental plants to have a more detailed picture on this sub-sector in Vietnam.3.1.Lam Dong 3.1.1.Key characteristics of major market segments Lam Dong province,located in the southern Centr

160、al Highlands of Vietnam is currently one of the leading flower capitals in the country.According to a report by the Lam Dong Department of Agriculture and Rural Development,the flower growing area of Lam Dong province has rapidly increased from 7,761.4 hectares in 2015 to 9,740.5 hectares in 2022,wi

161、th an average annual growth rate of about 3.3%per year.Additionally,cut flower production has also increased significantly from 2.43 billion branches in 2015 to 3.9 billion branches in 2022.Figure 15:Flower area and output of Lam Dong in the period 2015-2022 Source:Lam Dong Department of Agriculture

162、 and Development,2023 Lam Dong,prioritizing the flower industry,aims to cultivate 3,000 hectares of new varieties by 2025,constituting 26.5%of the total planting area,with plans for 35-40%allocation to proprietary varieties.The province emphasizes the organization of production areas,attracting high

163、-tech investments,and implementing branding initiatives.Three approved high-tech flower zones covering 180.22 hectares demonstrate Lam Dongs commitment to technological advancements.Adopting advanced agricultural technologies,the province incorporates modern greenhouse techniques and IoT technologie

164、s,enhancing cultivation efficiency.Lam Dongs focus on brand development is evident through trademark certification for Hoa Lt,while successful flower tourism models like Ysa Orchid Garden underscore its dedication to economic growth and vibrant floral industry promotion.The flower production in Lam

165、Dong province is mainly concentrated in Da Lat city,which accounts for over 62%of the total area and 64.5%of the flower output of the entire province,is equivalent to an area of 6070 hectares and an output of 2.5 billion branches in 2022.The second-largest growing area is Lac Duong district,which co

166、vers 2,031 hectares and an output of 848.1 million branches,accounting for 20.8%of the total flower area in the province.Figure 16:Structure of flower growing area by district of Lam Dong in 2022 Figure 17:Structure of area by main flower type,2022 -1 2 3 4 50200040006000800000

167、0212022billion branchesArea(ha)Area(ha)Output(billion branches)23 Source:Lam Dong Department of Agriculture and Development,2023 Lam Dong,blessed with ideal soil and climate conditions,thrives as a vibrant center for diverse flower production.Popular varieties like chrysanthemums and rose

168、s,alongside high-value options such as lilies and orchids,contribute to the regions dynamic floral landscape.In 2022,chrysanthemums,roses,and gladiolus dominated the cultivation area,comprising 30.6%,16.1%,and 9.7%,respectively.Noteworthy changes from 2015 to 2022 include a significant rise in potte

169、d flowers,constituting 12.6%of the area,and a segment catering to high-end markets(carnations,gerbera,lilies),representing about 13%.Da Lat,nestled in Lam Dong,boasts over 400 flower species and a year-round production of thousands of varieties.These include indigenous flowers,as well as those sourc

170、ed from Asia,Europe,America,Africa,and Australia,with Orchids and Chrysanthemums families hosting the highest number of varieties,showcasing the regions rich floral diversity.Table 2:Key characteristics of Lam Dongs cut flowers Lam Dong province Types of flowers/ornamental plants Cut flowers:Chrysan

171、themum(31%);Rose(16%);Gladiolus(10%);Carnation(8%);Gerbera(3%);Lily(2%);Others(18%)Potted flowers(12%)Total areas and outputs 9,740.5 hectares Total outputs 3.9 branches Annual Growth rate 3.3%per year Material zones Da Lat city(62%of total area and 64.5%of total output),Lac Duong(20,8%),Duc Trong,D

172、on Duong,Lam Ha,Di Linh,Bao Loc,Bao Lam,and Cat Tien Total Annual revenue 33,408 billion dong(1.36 billion USD)in 2022 Brand name or certification“Hoa Lt”“Lt kt tinh t t lnh”Target markets Domestic consumption:89%of total output Local markets:big cities of Ho Chi Minh City and surrounding provinces(

173、60%),Hanoi,Da Nang,and Can Tho Export:74 million USD(11%of total output)Key international market:Japan(59.3%),Australia(3.3%),Taiwan(3.1%),China(1.6%),and others(South Korea,Belgium,the Netherlands)Export types:Flower seeds(61,7%),chrysanthemums(24.9%),daisies(4%),roses(2.4%),and carnations(1.2%)Num

174、ber of farmers and cooperatives/enterprise Small farmers:85%of the total flower production Many foreign companies(Dutch companies;03 Japanese companies;5-6 Taiwanese companies)Dalat city;63,5%Lacduong district;14,0%Ductrong district;9,6%Donduong district;5,7%Lamha district;3,6%Dilinh district;1,5%Ba

175、oloc city;1,2%Baolam district;0,8%Cattien district;0,1%Chrysanthemum Flower31%Rose flower16%Potted flowers12%Gladiolus flowers10%Carnation flower8%Gerbera flowers3%Lily flower2%Other flowers18%24 33 export-oriented companies.Key player:Dalat Hasfarm,Bonnie Farm,Apolo,Innova,Sunflower Technology Co.,

176、Ltd.,and Biological Technology Co.,Ltd.Dalat Hasfarm(50%of the total exported flower volume)Average farming areas/HH 0.3 0.5 ha Average investment per ha per year or production cycle Basic investment costs(greenhouse,land,etc.):400500 million VND/ha Annual production costs:600 750 million VND/ha/yea

177、r Average productivity 396.490 flowers/ha/year Selling price/kg(in the main season)Roses:1,200 VND/flower;Peony chrysanthemum:24,000-25,000 VND/flower;Cymbidium orchid branches:60 70,000 VND/branch;Phalaenopsis orchids:80 145,000 VND/branch in a pot Annual income(VND)per HH Overall:970 million VND/h

178、a/year High-end flowers(lilies and cymbidiums):2.5-3 billion VND/ha/year Value chain linkages Linked 305 households/farms in 147 hectares Linked farmers contribute around 5%of the total production 80-90%of the total supply from imported sources 60%of the local flower production distributed through t

179、raders Technology application Hortimax technology(Netherlands);automated controls using IoT technology(adopted from European and Japanese practices),greenhouses technology of Israel,France,and the Netherlands.3.1.2.Value chain mapping Currently,there are six value chains comprising 305 households,co

180、vering 147 hectares in Lam Dong.Focusing on the primary value chain for cut flowers and potted flowers,the study explores six stages,including input preparation,production,distribution,and consumption.Figure 18:Flower value chain in Lam Dong province Source:Field survey,2023 In Lam Dong Provinces fl

181、ower value chain,the input supply relies significantly on imported materials,especially for copyrighted varieties meeting export standards.Small farming households contribute 85%to total production,while foreign enterprises from the Netherlands and Japan dominate,shaping the industry.Collection,sort

182、ing,and packaging are managed by companies and traders,with over 60%of local flower production acquired by traders through direct purchase or consignment.Distribution involves various actors,serving a diverse consumer range from individual households to hotels,restaurants,and event organizers,both d

183、omestically and internationally.Input supplyProductionCollectionPreparation and packagingDistributionConsumptionInput suppliersproduction materials,seedlings importersseedlings producersFarmersCompaniesTradersExportIndividual ConsumersWholesalers(HCMC,Hanoi,other provinces)Flower shopsRetailersHotel

184、s,restaurants,event organizers,etc.5%53%50%89%40%55%15%2%11%10%30%40%25 Lam Dongs flower market sees over 89%consumed domestically in major Vietnamese cities,with the remaining 10-11%exported to markets like Japan and Australia.Despite challenges,Lam Dong maintains a significant global presence,with

185、 an export turnover of USD 74 million in 2022,driven primarily by foreign companies serving the domestic market.Insights from traders and businesses suggest that Da Lat flowers are highly favored across diverse domestic market segments.These flowers cater to a broad customer base,including ordinary

186、consumers and high-end clients,serving purposes like home/office decoration,gifts,and event embellishment.Demand for Da Lat and Lam Dong flowers remains consistently high throughout the year,extending beyond specific holidays or festivals.The growing tourism industry has also boosted the demand for

187、flowers and ornamental plants,expanding the appeal of Da Lat flowers for landscape decoration and establishing them as a year-round choice for various purposes.3.1.3.SWOT analysis Based on surveys and expert insights,this study examines the factors influencing the growth of the cut flower and potted

188、 plant industries in Da Lat and Lam Dong,categorizing them into strengths,weaknesses,opportunities,and challenges:Strengths Weaknesses-Favorable climatic and soil conditions;-Experienced farmers and technological advancements;-Advanced infrastructure and technical proficiency;-Investment from domest

189、ic and foreign enterprises;-Research and innovation;-Established branding-Inconsistent quality and pricing;-Lack of technical advisory and international market knowledge;-Low infrastructure and technology adoption;-Copyright issues with flower seeds;-Insufficient technical expertise and market under

190、standing;-Limited production and post-harvest technologies;-Lack of modern distribution and logistics systems.Opportunities Threats-Researching and developing flower varieties program;-Digital transformation in agriculture;-The restructuring plan for the agriculture sector;-Investment and infrastruc

191、ture development,regional and national tourism events-Legal and international standard;-Technological gaps and landscape challenges.To capitalize on its strengths and pursue the goal of becoming the global leading hub in flowers,Lam Dong should implement a comprehensive strategy.This entails investi

192、ng in research for new flower varieties,adopting digital technology for agricultural processes,establishing a modern management and distribution system,offering training for farmers in modern cultivation techniques,fostering international collaborations,enhancing management and marketing capabilitie

193、s,building robust local brands,and improving infrastructure connectivity to facilitate market expansion.3.2.Ha Noi 3.2.1.Key characteristics of major market segments Hanoi is the locality with the most significant growth rate in the area of growing flowers and ornamental plants in the country,increa

194、sing from 5,484 hectares in 2015 to nearly 8,293.65 hectares in 2022.Of which 70%of the area is cultivated concentrated in districts Me Linh,Bac Tu Liem,Tay Ho,Dan Phuong,Thuong Tin.with many models of growing flowers and ornamental plants applying new technology advances in varieties and cultivatio

195、n processes to increase productivity and quality.The main production areas are primarily located on the outskirts of urban areas,having advantage of alluvial 26 areas along large rivers for production.Every year,Hanois production areas provide the market with about 1,000 million flower stems and 3 m

196、illion pots of ornamental plants.Me Linh is the district with the largest area of flowers and ornamental plants in Hanoi.The districts flower and ornamental plant area is 824.8 hectares.Of which,the cut flowers area is 667 hectares,accounting for 80.9%of the total area,the ornamental plants are 72 h

197、ectares,accounting for 19.1%.Cut flowers include roses(394.5 hectares),chrysanthemums(242.8 hectares),lilies(23.5 hectares),and other annual flowers(6.2 hectares).The primary ornamental plants are peach trees(85,8 hectares)and orchids(2 hectares).The area for growing cut flowers and ornamental plant

198、s in Me Linh has decreased in recent years due to rapid urbanization.In this report,the research team will focus more on segment of cut flowers in Hanoi.Figure 19.Current status of flower and ornamental plant production in Me Linh district in 2023 Source:Me Linh District Economic Department,2023 Han

199、oi also develops traditional craft villages of flowers and ornamental plants.In 2022,Hanoi recognized 313 craft villages and traditional craft villages,including 11 craft villages and traditional craft villages of flowers and ornamental plants such as Ornamental craft villages of Co Giao,Xam Xuyen,N

200、oi Thon(Thuong Tin district);flower and ornamental plant craft villages of Ha Loi,Lieu Tri,Dai Bai(Me Linh district);bonsai and bougainvillea craft village in Phu Dong village(Gia Lam district);Tay Tuu traditional flower craft village(Bac Tu Liem district);kumquat growing craft village in Tam Xa com

201、mune(Dong Anh district);Nhat Tan traditional peach blossom craft village,Tu Lien kumquat traditional craft village(Tay Ho district)The flower industry here is not only a stable source of income but also an interesting symbol of Hanoi.Table 3 Key characteristics of Hanois cut flowers Ha Noi Types of

202、flowers/ornamental plants Cut flowers:80,9%total area;Roses(25%),Chrysanthemums(38%),Lilies(9%),Gerberas(3%),Orchid(1%),Sunflowers(1%),Others(23%)Ornamental plants:19,1%(peach tree and orchid)Total areas and outputs 7.125 hectares Total outputs 1 billion branches Annual Growth rate 5,4%per year Mate

203、rial zones Me Linh,Dan Phuong,Gia Lam,Dong Anh,and Bac Tu Niem districts.Total Annual revenue 19,5 billion dong(0,79 billion USD)in 2022 Brand name or certification N/A Target markets Domestic consumption:99%of total output Local markets:big cities of Ha Noi,Lam Dong,Ho Chi Minh,Dong Thap and surrou

204、nding provinces(80%)Number of farmers and cooperatives/enterprise Small farmers:90%of the total flower production Rose47,8%Chrysanthemum29,4%Peach trees 10,4%Potted flowers8,5%Lilies2,8%Other annual flowers0,8%Orchids0,2%27 1 big business(Global Investment Development High Agricultural Technology Jo

205、int Stock Company)Many flower cooperatives Key player:Cooperative an Hoai-Flora Viet Nam Average farming areas/HH 0.2 0.4 ha Average investment per ha per year or production cycle Annual production costs:800 850 million VND/ha/year Average productivity Chrysanthemum:740 thousand flower/ha/year Selli

206、ng price/kg(in the main season)Chrysanthemum:1.500 2.500 VND/flower Annual income(VND)per HH Overall:Nearly 900 million-1.1 billion VND/ha/year Value chain linkages None Technology application Enterprises and cooperatives are the application of building greenhouses and net houses with semi-automatic

207、 systems in controlling irrigation systems,fertilizing,and adjusting humidity,temperature,and light;IoT technology,landless farming technology,blockchain technology for traceability 3.2.2.Value chain mapping The cut flower market in Hanoi is large,with many actors participating in the production and

208、 distribution chain.Cut flowers(roses/chrysanthemums)are mainly grown locally in specialized areas by smallholding farmers and enterprises/cooperatives accounting for 85%of total output,10%of cut flowers is imported(mainly in Taiwan,China,etc.)and distributed,and about 15%of Hanois flower consumptio

209、n is supplied from other provinces such as Lam Dong,Nam Dinh,Dong Thap.Smallholding farmers in Hanoi are the main suppliers of flowers in Hanoi city,accounting for 65%of total output.Most flower producers in Hanoi are local people with good cultivation experience but they mainly cultivate with tradi

210、tional methods.10%of total output is from businesses in Hanoi who apply high technology and regularly provide the market with high quality flower products.In recent years,Hanoi has promoted the application of high technology in agricultural production in general and ornamental flowers and plants in

211、particular.Hanoi has 212 high-tech farming models with a total area of 2.89 thousand hectares.Of which,the area of flowers and ornamental plants applying high technology in production reached 207.4 hectares(22 establishments with an area of 183.5 hectares producing in membrane houses and net houses)

212、.Cut flowers in Hanoi are mainly consumed domestically in markets such as Hanoi and big cities such as Nam Dinh,Vinh,Lam Dong,Ho Chi Minh,and Dong Thap.Only a small portion of cut flowers in Hanoi are exported to the Chinese market,but the quantity is still very limited.For cut flowers produced loca

213、lly,most products are sold through the local trader system to major wholesale markets in Hanoi(Me Linh flower market,Quang Ba flower market)and stores/purchasing facilities in some localities such as Nam Dinh and Thanh Hoa.Hoa,Nghe An,Da Lat,Ho Chi Minh City,Dong Thap.from there to consumers.For imp

214、orted cut flowers(roses,chrysanthemums),which are mainly imported from Taiwan and China markets,these products are distributed mainly to flower shops.A very small number of imported flowers are sold by businesses/dealers to traders and to consumers through local markets.Figure 20:Cut flower value ch

215、ain in Ha Noi 28 Source:Field survey 3.2.3.SWOT analysis Drawing insights from survey findings and consultations with local experts,this study has compiled key factors and considerations influencing the growth of the cut flower in Hanoi.The analysis categorizes these issues into four dimensions:stre

216、ngths,weaknesses,opportunities,and challenges as follows:Strength-Favourable climate and product diversity-Many traditional craft villages of followers with abundant workforce-Convenient location and transportation-Large consumption market of big cities-Active support from the local government-Weakn

217、esses-Limited water supply-Risk from pests and diseases-Weak linkages in production and consumption Opportunities-Increasing demand for flowers and ornamental plants -Trend of green and sustainable living-Development of e-commerce-Growth of tourism and events Threats-Urbanization-Climate Change-Comp

218、etition from import products-Laws and regulations-Prices of raw materials and labor Source:Field survey results,2023 Recommendations Hanoi is the political,economic and cultural center of the country,not only focusing on traditional flower production but also aiming to develop high-tech flower produ

219、ction models.This aims to meet the growing market demand,bring economic efficiency,and protect the environment.Some key recommendations are as follow:Develop cut flower production with the application of high technology such as smart greenhouses and net houses for flower production,digitalization wi

220、th automation technologies.Smart greenhouse systems may help control the production environment,creating ideal conditions for flower plants to grow strongly.Carry out market research and develop flowers with high commercial demand in Hanoi,such as chrysanthemums,roses,lilies,and orchids.29 Develop a

221、gritourism models with flowers farms to increase the value and income of flower producers.3.3.Ho Chi Minh City 3.3.1.Key characteristics of major market segments Ho Chi Minh Citys tropical climate,characterized by warm temperatures and abundant sunlight,makes it an ideal location for flower cultivat

222、ion.The regions consistent conditions throughout the year,coupled with fertile soil and a tradition of agriculture,create a favorable environment for a diverse range of flowers to flourish,contributing to the citys suitability for vibrant and successful flower cultivation.Flowers and ornamental plan

223、ts are identified as one of the key sectors of Ho Chi Minh City6.According to Department of Agriculture and Rural Development of Ho Chi Minh City,the area of flowers and ornamental plants in Ho Chi Minh City in 2022 reached 2,325 ha,an increase of 9.2%compared to 2021.Of which,the area of ornamental

224、 plants in 2022 reached 2,086 ha,accounting for 89.7%of the total area,while the area of cut flowers was 239 ha,accounting for 10.3%.Ornamental plants encompass a variety of species such as yellow apricots,potted flowers,Bonsai trees,and Dendrobium orchids,whereas cut flowers predominantly consist o

225、f Mokara orchids.Yellow apricot,potted flowers and Bonsai trees are the 3 types with the largest areas,accounting for 85%of total area of flowers and ornamental plants.Of which,the area of yellow apricot in 2022 was 765 ha,accounting for 33%(a slightly 0.1%increase compared to 2021).Potted flowers f

226、ollowed closely with an area of 645 ha,accounting for 27%(a significant 59.3%increase compared to 2021).The area of Bonsai trees was 575 ha,accounting for 25%(a 2.5%decrease compared to 2021).Figure 21:Area of flowers and ornamental plants by types in 2022 Source:Department of Agriculture and Rural

227、Development of Ho Chi Minh City Orchids are the main flower of Ho Chi Minh city,catering not only to the city itself but also to neighboring provinces.At present,the predominant orchids cultivated by farmers are Mokara and Dendrobium varieties.Furthermore,the city plays an important role as a centra

228、l hub for importing cut orchids from overseas as well as Lam Dong province.These imported orchids are distributed within the city and to neighboring provinces.In Ho Chi Minh City,the primary cultivation for cut flowers centers on Mokara orchids,while other cut flowers including lilies,chrysanthemums

229、,roses,and phalaenopsis orchids are primarily sourced from Lam Dong province.6 Decision 4545/QD-UBND dated October 15,2018 of the City Peoples Committee promulgating a list of key product groups in the citys agricultural sector Yellow apricot33%Potted flowers27%Bonsai trees25%Mokara orchids10%Dendro

230、bium orchids4%Other orchids1%30 Ho Chi Minh Citys flower and ornamental plant production is mainly concentrated in Binh Chanh district with an area of 895.5 hectares,accounting for 38%of the citys flower and ornamental plant production area.The second largest area is Cu Chi district with 631.5 hecta

231、res,accounting for 37%.Hoc Mon district has the third largest area with 129.3 hectares,accounting for 6%.The remaining area for growing ornamental flowers and ornamental plants is located in Thu Duc District,District 12,and other districts.Figure 22:Area of flowers and ornamental plants by districts

232、 Source:Department of Agriculture and Rural Development of Ho Chi Minh City Table 3:Key characteristics of Ho Chi Minhs cut flowers and Ornamental plants Ho Chi Minh City Types of flowers/ornamental plants Ornamental plants:Yellow apricot(33%),potted flowers(27%),Bonsai trees(25%),Dendrobium orchids

233、(4%).Cut flowers:Mokara orchids(10%)Total areas 2,325 hectares(flowers and ornamental plants)Total outputs 69.0 million branches/pots/baskets(flowers)Annual growth rate 7.5%/year Material zones Binh Chanh(38%),Cu Chi(27%),Hoc Mon(6%)Total Annual revenue N/A Brand name or certification N/A Target mar

234、kets Domestic consumption:99%of total output Local markets:Ho Chi Minh City and surrounding provinces.Number of farmers and cooperatives/enterprise 5 cooperatives and 3 cooperative groups.Average farming areas/HH N/A Average investment per ha per year or production cycle Nearly 146 million VND/1000m

235、2/year annual cost for Mokara orchids production Average productivity 28.800 branches/1000m2/year Selling price/kg(in the main season)7,500 VND/branch Annual income(VND)per HH 70 million VND/1000m2/year Value chain linkages 10%farmers having a contract with middlemen.77%of the local flower productio

236、n distributed through traders Technology application Net house,automatic irrigation and fertilization.In 2022,about 195 ha(8.4%)of flowers and ornamental plants in the city was applied with Binh Chanh38%Cu Chi27%Hoc Mon6%Other29%31 advanced technology.Farmers growing flowers and ornamental plants ha

237、ve promoted the application of mechanization and automation in production,especially in economical watering and spraying.3.3.2.Value chain mapping Despite ornamental plants covering 90%of the cultivated area for flowers and ornamental plants in Ho Chi Minh City,they are primarily utilized during the

238、 Lunar New Year holiday rather than for daily consumption.Consequently,the research team opted to concentrate on analyzing the value chain of cut flowers,specifically focusing on Mokara orchids in this context.Key stakeholders in Mokara orchids supply chain in Ho Chi Minh City include farmers,middle

239、men,companies,markets,flower shops and consumers.Figure 23:Mokara orchids supply chain in Ho Chi Minh City Source:Field survey,2023 Farmers primarily sell cut flowers to local middlemen and,occasionally,to traders from neighboring provinces.Approximately 10%of farmers formalize their sales through c

240、ontracts with middlemen,while the remaining 90%rely on verbal agreements established on trust.The absence of a formal contract poses numerous risks.Particularly during peak harvest times,middlemen tends to prioritize those with contracts,leaving non-contracted farmers at a disadvantage.For those wit

241、hout contracts,middlemen may buy their flowers at lower prices while imposing stringent quality requirements,resulting in limited purchases compared to their production capacity.In some cases,middlemen may stop purchasing completely,compelling farmers to seek alternative buyers or cut off their flow

242、ers.Traders play a crucial role in the flower value chain,purchasing a significant 77%of floral products directly from farmers.Moreover,traders take an important role as the main decision-makers in establishing the purchasing prices.After acquiring flowers from farmers,traders subsequently distribut

243、e and sell flowers to both traditional markets and flower shops in urban areas.In addition to traders,approximately 8%of flowers are procured by enterprises.Typically,these enterprises sign direct contracts with farmers,providing seeds and services and supporting the cultivation of flowers.Farmers a

244、re mandated to sell all flowers to these enterprises,with the selling price subject to periodic 32 fluctuations.However,there are still many cases of farmers violating contracts and selling flowers to other buyers when the selling price is higher.Local markets and flower shops purchase flowers from

245、traders,enterprises,and to some extent,directly from farmers for distribution to consumers.In addition,approximately 7%of flowers are allocated for distribution to restaurants and hotels.Consumer preferences for cut flowers in Ho Chi Minh City vary based on the occasion,recipient,and individual pref

246、erences.During major events like International Womens Day,Valentines Day,and Vietnamese Womens Day,there is a diverse demand for cut flowers with various types and designs.Besides commonly favored flowers like carnations,peonies,lilies,sunflowers,and roses,there is also a market for high-end importe

247、d varieties,including Ecuadorian roses,Dutch tulips,and cut flowers from China such as roses and auspicious blooms.However,in 2023,there has been a notable decline in the demand for cut flowers compared to previous years.This decline is attributed to individuals tightening their personal spending ha

248、bits,leading to reduced demand for non-essential items like flowers.Furthermore,the gift market has witnessed the emergence of new and unique gift options,contributing to a diminished performance in the flower business during festive periods compared to the past.3.3.3.SWOT analysis Strengths Weaknes

249、ses-The tropical climate provides an ideal environment for cultivating various flowers and ornamental plants.-With extensive experience in flower and ornamental plant cultivation,farmers are well-positioned to embrace innovative and advanced production techniques.-Small-scale production without effe

250、ctive linkages.-Lack of market information.-The main consumption channels heavily rely on middlemen.-The development of new varieties in the country is still limited.-High initial investment costs(irrigation system,net house system,seedlings,fertilizers,etc).Opportunities Threats-Ho Chi Minh City is

251、 one of the largest flower and ornamental plant consumption markets in the country.-Local authorities are keen on guiding and steering the development of the flower and ornamental plant sector.-Due to the economic recession,demand for flowers and ornamental plants tends to decrease in the short-term

252、.-The epidemic situation on flowers and ornamental plants is complicated.-The transportation system is incomplete in yellow apricot production areas,causing difficulties in transportation.-The rapid increase in urbanization causes the agricultural land area to shrink.Source:Field survey results,2023

253、 Recommendations:As Ho Chi Minh City is one of the largest flower and ornamental plant consumption markets in the country,to sustainably develop the flowers and ornamental plants sector in Ho Chi Minh City,some recommendations are as follows:Research and build pilot models applying high technology(g

254、reen houses,net houses,irrigation systems)with materials suitable to the investment conditions of farmers.Research and apply biotechnology to produce high-quality and high-yield flower varieties to become the flower seedling center of the region.33 Build a model of growing flowers and ornamental pla

255、nts associated with implementing the program to develop eco-tourism and new rural development.3.4.Dong Thap 3.4.1.Key characteristics of major market segments Dong Thap is the leading province in the Mekong Delta for the production area of flowers and ornamental plants,ranking fourth nationwide.Acco

256、rding to Dong Thap Department of Agriculture and Rural Development,the area of flowers and ornamental plants in the province has increased from 1,657 hectares in 2015 to 2,162 hectares in 2022,with an average annual growth rate of 6.2%per year.Despite a 21.2%reduction in production area in 2022 comp

257、ared to 2021,the gross output of the sector still reached 5,736 billion VND in 2022,a 13.4%increase over 2021.Figure 24:Area of flowers and ornamental plants of Lam Dong in the period 2015-2022(ha)Source:Dong Thap Department of Agriculture and Development,2023 The largest flower and ornamental produ

258、ction zone is in Sa Dec city,which covers 946.5 ha,accounting for 43.78%of the total area of flowers and ornamental plants in the province.The remaining production zones are in Lai Vung district(837.5 ha,38.74%),Lap Vo district(357 ha,16.51%),and Cao Lanh city(21 ha,0.97%).Figure 25:Structure of are

259、a by districts in 2022(%)Figure 26:Structure of area by main types in 2022(%)Source:Dong Thap Department of Agriculture and Development,2023 Dong Thap has about 1,200 different varieties of flowers and ornamentals.Foliage plants cover the largest area,accounting for about 59%of the total area of flo

260、wers and ornamental plants in the province.Foliage plants are cultivated and consumed throughout the year.They dont face the risk of being discounted,unlike potted flowers and cut flowers that might need to be sold at a lower price if they dont bloom at the right time.The demand for foliage plants i

261、s increasing,driven by a growing trend towards incorporating green elements into mordern lifestyles and living spaces.Potted flowers represent the second-largest production area,accounting for about 14.2%of the total area of flowers and ornamental plants in the province.The planting period for potte

262、d flowers extends from June to 5227422030002000212022Sa Dec city 43,78%Lai Vung district38,74%Lap Vo district16,51%Cao Lanh city0,97%Foliage plants59,0%Potted flowers 14,2%Antique trees13,8%Cut flowers8,6%Bonsai 4,3%34 December,mainly

263、 consumed to meet the demand during the Tet holiday.The demand for potted flowers experiences a substantial surge in the days just before Tet.Table 4 Key characteristics of Dong Thaps flower and ornamental plant sector Dong Thap province Types of flowers/ornamental plants Potted flowers:14,2%(Chrysa

264、nthemum morifolium,Roses,Gerbera,etc.)Foliage plants:59%(Aglaonema rotundum pink,Snake Plants,Pothos,Zoysia grass,etc.)Total areas 2,162 hectares Total outputs NA.Gross output:5,736 billion VND(0,23 billion USD)in 2022 Annual growth rate 6.2%per year Material zones Sa Dec city(43.78%),Lai Vung distr

265、ict(38.74%),Lap Vo district(16.51%),Cao Lanh city(0.97%)Total annual revenue 3,349 billion VND(0,14 billion USD)in 2022 Brand name or certification Sa Dec Flower Village Target markets Potted flowers:Domestic consumption:98,4%of total output.Main local markets:Ho Chi Minh(HCM)city,surrounding provin

266、ces in the Mekong Delta,Hanoi Export:Cambodia Foliage plants:-Interior ornamental plants:Domestic consumption:100%of total output.Main local markets:Mekong Delta provinces(60%),HCM city(30%),Hanoi and other central provinces of Viet Nam(10%).-Landscape ornamental plants:Domestic consumption:99%of to

267、tal output.Main local markets:HCM city(50%),Da Nang,Ha Noi,Thanh Hoa,other provinces in Vietnam(49%).Export:Taiwan,Cambodia(1%)Number of farmers and cooperatives/enterprise 5 cooperatives Average farming areas/HH 0.2 0.5 ha Average investment per ha per year or production cycle 800-1040 million VND/

268、ha/year Average productivity Chrysanthemum morifolium:18000-20000 thousand pots/ha/year Selling price/kg(in the main season)Chrysanthemum morifolium:75,000 VND/pot Roses:30.000-35.000 VND/pot Annual income(VND)per HH 400 million 700 million VND/ha/year for Chrysanthemum morifolium Value chain linkag

269、es 80%of the local flower production distributed through traders Technology application Tissue culture,digital technology(mainly e-commerce platforms and social networks),shade net houses and polyhouses,automatic mist irrigation and drip irrigation.Since 2014,flowers and ornamental plants have been

270、identified as one of the five key sectors of Dong Thap province.Many support policies were issued to develop the sector in a sustainable direction with high-added value,such as supporting linkages in production and consumption;supporting trade development,establishing the Center for High-tech agricu

271、ltural application,etc.The province has developed flower and ornamental plant products under the countrys“One Commune-One Product”program,and developed brand names for Sa Dec flowers and ornamental plants.The sector has increased its value as the province develops it in combination with tourism serv

272、ices.The sector attracts a large number of tourists year-round,especially during the Tet holidays and recently the first Sa Dec 35 flower and ornamental festival.Sa Dec Flower Village has become a typical tourist destination of the Mekong Delta region and the country.Since August 2023,Dong Thap has

273、cooperated with the Netherlands-Vietnam Agricultural Business Cooperation Association to promote the development of the flower and ornamental plant sector.3.4.2.Value chain mapping In Dong Thap,potted flowers have greater export potential and higher value-added potential than foliage plants,mainly d

274、ue to their smaller size,ease of transport,and greater popularity in international markets.Meanwhile,the Netherlands stands out as a powerhouse in flower exports,possessing robust research and development capabilities and a well-established supply chain.Thus,the research team focus on analyzing the

275、value chain of potted flowers in the province to provide valuable insights into the opportunities for cooperation between Dong Thap and the Netherlands.Key stakeholders in potted flower supply chain include input suppliers,farmers,traders,markets,and consumers.Figure 27:Potted flower supply chain in

276、 Dong Thap Source:Field survey Most of farmers use their household land to cultivate potted flowers outdoors,relying heavily on pesticides.With a relatively small cultivation area of approximately 3000m2 per household,each household typically grows various types of flowers to meet the diverse demand

277、s of the market.The source of seed supply for farmers comes from the High-Tech Agriculture Application Center in Dong Thap,local private seed production facilities,or from other provinces(such as Da Lat).According to interview results,the total amount of seeds supplied to the market has not yet met

278、the growers demands,both in terms of quantity and especially in terms of new,unique,beautiful flower varieties that attract consumer preferences.Some new seed sources have to rely on imports from abroad,mainly from Thailand.Traditionally,farmers initially purchase flower varieties in the first year

279、and subsequently engage in self-propagation in the following years.While self-propagation helps save costs,the predominant use of traditional methods such as cutting,grafting,and dividing shoots or seedlings can lead to degeneration and increased vulnerability to diseases.In addition to seeds,input

280、materials include flower pots,materials to make racks,which are supplied by production facilities in neighboring areas.Fertilizers and pesticides are provided by local input supply agents located in the area.There are two market channels for potted flowers.Approximately 80%of the total consumption g

281、oes through local traders.These traders purchase directly from the fields and deliver the products to major 36 wholesale markets in Ho Chi Minh City,nearby provinces in the Mekong Delta,Hanoi,and some other provinces.Additionally,traders also export potted flowers to Cambodia.For the remaining 20%,f

282、armers sell at markets or directly to consumers,who can be local residents or tourists.In the potted flower supply chain,traders play a crucial role,and act as the main decision-makers in determining purchase prices.Meanwhile,agricultural cooperatives play a limited role.They are involved in buying

283、and supplying seeds,fertilizers,pesticides and providing technical guidance to its members.They have not yet become a central role for consuming flowers for farmers,so they depend heavily on traders.3.4.3.SWOT analysis Drawing insights from survey findings and consultations with local experts,the in

284、ternal strengths and weaknesses,as well as external opportunities and threats facing the flower and ornamental sector in Dong Thap,is presented in the table below:Strengths Weaknesses-Diverse tropical flowers and ornamental plants thanks to favorable natural conditions -Experienced and diligent loca

285、l farmers-Investments from large companies-Support from collective economic models-High-tech Agricultural Application Center-Established Trading Center for market accessibility-Active use of social media for promotion-Favorable transportation system-Lack copyrighted varieties,limited variety researc

286、h and development,most of varieties rely on foreign sources or self-breeding by local farmers.-Small-scale,fragmented production-Weak linkages in the supply chain and heavy dependence on traders-Reliance on chemical fertilizers and pesticides-Lack of modern technology adoption-Limited post-harvest p

287、reservation methods-Lack of diverse marketing activities-Spontaneous development without planning;oversupply issues.-Limited information on prices,preferences,and market forecasts-Untapped tourism potential associated with flower and ornamental plant production Opportunities Threats-On the supply si

288、de:Potential to develop the production area for flower and ornamental plants from 2,162 ha in 2022 to 3,500 ha in 2025.As one of the five key sectors in Dong Thap,the flower and ornamental plant sector receives considerable support from local authorities,fostering an environment conducive to increas

289、ed supply.-On the demand side:Growing per capita income and urban greening trend Growth of tourism,festivals -E-commerce and social media platform development-Short-term decrease in demand due to recession-Competition from foreign products-Unpredictable weather and climate change impacts-Consumer de

290、mand for unique and exotic varieties-Increasing social and environmental concerns Source:Field survey results,2023 Recommendations Based on the above issues and local consultation,some key solutions were proposed to develop the Dong Thaps flower and ornamental plant sector:37 Research and developmen

291、t of new,unique,high-quality flower varieties suitable to local conditions and to the preferences of domestic and foreign consumers.Investing in advanced technologies such as greenhouses,irrigation systems and post-harvest processes to increase product value,increase economic efficiency and adapt to

292、 climate change.Developing products with higher added value such as dried flowers,dyed flowers.3.5.Son La 3.5.1.Key characteristics of major market segments Sn La,a province in the Northwest of Vietnam,covers a vast natural area of 14,123 square kilometers.It features two extensive,flat plateausMoc

293、Chau and Son La.These regions are well-suited for large-scale production.Sn La experiences a tropical,humid,monsoonal climate,characterized by high rainfall and major river systems like the a River and the Ma River.The province offers an ideal environment and vast potential for the flower and orname

294、ntal plant industry.Despite these favourable conditions,the flower industry in Sn La remains relatively underdeveloped,failing to fully leverage its potential and lacking significant investment compared to other crops such as fruits or vegetables.Only 0.06%of the total agricultural land is dedicated

295、 to flower cultivation in Sn La,producing around 250 million flowers.Notably,the flower cultivation area has declined from 348 hectares in 2018 to 267 hectares by 2022,primarily focusing on cut flowers.Figure 28:The area,production of flower cultivation in Son La province Source:Statistical Yearbook

296、 of Son La Province 2022 The flower cultivation area in Son La is predominantly concentrated in three main regions:Son La city(55.1%),Moc Chau district(16.9%),and Muong La district(18.7%).The flower cultivation areas in other regions are relatively small and negligible.The primary flowers cultivated

297、 in the province are mainly cut flowers,including roses,chrysanthemums,lilies,and a few other varieties.Among these,roses cover the largest area,accounting for approximately 80.5%of the total flower cultivation area in the province.These flowers are primarily grown in the outskirts of Son La City.Ro

298、ses are cultivated and harvested year-round in the province.Lilies cover 31 hectares,with Tropical Flower Company leading with 16 hectares.Chrysanthemums span 6.75 hectares in scattered households,focusing on an off-season market.Orchids are primarily cultivated by the Tropical Flower Company.050100

299、03504004505000500300350400200212022Million.flowershaAreaProduction 38 Figure 29 Areas of flowers in Son La by districts(%)Figure 30:Areas of flowers in Son La by types(%)Source:Statistical Yearbook of Son La Province 2022.The flower industry faces challenges such as

300、small-scale operations,excessive chemical use,and a lack of quality certifications.The use of pesticides and fertilizers has led to soil degradation,reducing competitiveness in major markets.Growers,facing declining profits,are shifting to crops like strawberries and vegetables,contributing to the s

301、hrinking flower cultivation areas in Sn La.Son La has implemented effective agricultural support policies to drive local development.Notably,Resolution No.08-NQ/TU,issued in January 2021,outlines a strategy for sustainable development in agriculture,forestry,and aquaculture,focusing on high-tech app

302、lications.The province aims to become a leading high-tech agricultural center in the Northwest by 2030.Additionally,Resolution No.128/2020/NQ-HND,enacted in February 2020,encourages investments in agriculture and rural areas,offering support for interest rates,brand development,market expansion,and

303、various essential aspects of agricultural development.However,the current support policies in Son La primarily focus on the development of fruit trees,vegetables,and livestock.The flower industry,on the other hand,continues to face a lack of prioritization and specific support.Despite the existence

304、of a development plan for flowers and ornamental plants in the province,there is still no dedicated policy to effectively encourage and implement this initiative.As a result,businesses,cooperatives,and individuals in the flower industry have not yet benefited from the provinces support policies.Tabl

305、e 5 Key characteristics of Sn Las cut flowers Son La Types of flowers Cut flowers:Roses(80,5%),lilies(11,6%)chrysanthemums(2,5%),orchids(2,8%)Total/estimated production areas Total:267 hectares-Roses:Son La city(144ha)and Muong La district(50ha)-Lilies:31 ha in Moc Chau-Orchids:2ha in Moc Chau-Chrys

306、anthemum:Moc Chau(3ha),Thuan Chau(2ha)Total areas of quality certified production NA Material zones Son La City,Muong La,Moc Chau district.Annual production 250 million flowers of all types Son La City55,1%Moc Chau16,9%Muong La18,7%Other9,4%Roses;80,52%Lilies;11,61%Orchids;2,81%Chrysanthemums;2,53%O

307、ther flowers;39 Annual revenue 260 billion dong Number of businesses/cooperatives 1 big business(Tropical Flower Joint Stock Company)There are no statistics on flower cooperatives Target markets Ha Noi Average farming areas/HH 2,5 ha for roses Average investment per year or production cycle Nearly 9

308、00 million VND/ha/year annual cost for rose production.Average productivity 700.000 flowers/ha/year Selling price/kg(in the main season)Rose:500 vnd 1500 vnd/flower Chrysanthemum:2500 3500 vnd/flower Annual income(VND)50 65 million/ha/year for rose production.Technology application While traditional

309、 experiences shape flower cultivation in Son La,a few enterprises,like the Tropical Flower Joint Stock Company,incorporate high-tech agriculture method.3.5.2.Value chain mapping Due to the relatively small scale of the flower industry in Son La,there are fewer stakeholders involved,and the flower di

310、stribution chain in Son La is short,almost directly from producers to the consumer market,as shown in the diagram.Flower cultivation in Son La engages both smallholding farmers,primarily migrants from traditional flower villages in Ha Noi,and enterprises.Individuals lease land for flower cultivation

311、,utilizing techniques inherited from established flower communities,typically under lease contracts lasting up to 5 years.Enterprises like the Tropical Flower Joint Stock Company incorporate advanced agricultural technologies,managing approximately 18 hectares dedicated to cultivating orchids and li

312、lies.Figure 31:Cut flower distribution chain in Son La Source:Field survey Concerning input supply,most suppliers,especially for fertilizers and plant protection chemicals,are situated outside the province.Flower producers often obtain these inputs from Hanoi,leading to additional transportation cos

313、ts and potential production challenges.In terms of seeds,while most individual flower-producing households rely on self-propagation methods to economize,flower 40 enterprises choose to import orchid tissue culture from Taiwan or China and lily bulbs from the Netherlands.After harvesting,flowers are

314、directly sent to wholesale markets in Hanoi,and those of lower quality are transported to neighbouring provinces.The primary transportation methods involve regular trucks or even passenger buses,with no specialized transport dedicated to flowers.This approach has the potential to jeopardize the qual

315、ity of the flowers and result in heightened post-harvest losses.Intermediary traders have a limited role,primarily active during the Lunar New Year when demand reaches its peak.The consumption market of the Son La flower industry exhibits a certain degree of simplicity,with most products being predo

316、minantly consumed at flower wholesale markets in Hanoi,making up approximately 70%of the total output.The remaining portion is utilized within the province,primarily catering to local establishments such as restaurants,hotels,and homestays.Another smaller portion finds consumption in provinces neigh

317、bouring Hanoi.Some flower products from Son La have faced difficulties competing in the Hanoi market due to not meeting quality standards.However,the province has an advantage in cultivating certain off-season flowers,such as chrysanthemums,compared to provinces in lower areas.Nevertheless,transport

318、ing and maintaining product quality to reach the Hanoi market remains a significant challenge for Son Las flower products.3.5.3.SWOT analysis Strengths-Experienced households excel in production,especially in nurturing various types of flowers.-The products boast diversity,thanks to the natural adva

319、ntages,meeting various consumer preferences and demands.-The emergence of high-tech enterprises encourages traditional households to change their production mindset.Weaknesses-Flower cultivation relies excessively on chemical fertilizers and pesticides.-Flower products have yet to meet quality stand

320、ards.-Limited application of high-end technology in production.-Uneven and inconsistent use of plant varieties,lacking quality assurance.-High post-harvest losses due to inadequate preservation and transportation.-Cooperatives role within the industry remains limited.Opportunities-The growth of tour

321、ism in Sn La increases the demand and exposure for flower products.-The Flower Development Plan in Sn La provides numerous opportunities to access provincial support policies.-The trend of migrating to larger cities and industrial zones contributes to an increased land supply locally,easing the pres

322、sure on land rental prices.Threats-Climate change has led to more frequent extreme weather events.-Short land lease periods create challenges in implementing technological advancements.-Increasing demands from the market pose significant challenges.Based on the above issues and local consultation,so

323、me key solutions were proposed to develop the flower industry in Son La as follows:Extend Land Lease Periods:Increase land lease durations from 5 to 10 or 15 years through local policies,providing producers more time for investment and technological advancements.41 Enhance Support Policies:Strengthe

324、n financial,technical,and managerial support for expanding cultivation areas and improving product quality.Encourage the adoption of new technologies for optimized production.Establish Support Programs:Collaborate with businesses to provide flower producers with seedlings,materials,and technology.Pr

325、omote cooperative organizations among producers for consolidated production and shared market access through online platforms.Build Cooperative Capacity:Provide financial assistance or low-interest loans to flower cooperatives for investing in infrastructure and adopting new technologies,improving o

326、verall productivity and management efficiency in the industry.42 PART 4:CONCLUSION AND RECOMMENDATIONS 4.1.Conclusion Vietnam has many advantages and potential for developing the flower and ornamental plant industry Ranked as the 14th nation with most biodiversity(Nash,2023)and the worlds oldest tra

327、dition of cultivating flowers and ornamental plants,Vietnam holds significant potential for the growth and development of flowers and ornamental plants.The country benefits from a wide range of climatic conditions,encompassing tropical,subtropical,and temperate zones,allowing for the cultivation of

328、various flowers and ornamental plants.Additionally,Vietnam possesses abundant and diverse genetic resources for flowers and ornamental plants,including many precious genetic resources with high value in the domestic and international markets.In recent years,flower and ornamental plant growing has ma

329、de remarkable progress in terms of productivity,quality and efficiency,creating jobs for many households and contributing significantly to the GDP of agricultureal sector,thereby contributing to shifting crop structure and building new rural areas.From a country importing many types of flowers and o

330、rnamental plants,Vietnam has now transformed successfully to address domestic demand by actively involving businesses in production.As a result,the country not only satisfies domestic demand but also access to the global market,exporting diverse products with significant economic value.The cultivati

331、on of flowers and ornamental plants is now recognized as a potential industry that contributes to the restructuring of the agricultural sector.The government has promoted flower cultivation by expanding investments and fostering flower production in areas with suitable conditions.In recent years,var

332、ious policies have been implemented to support the development of flowers and ornamental plants.These include investing in research projects for the conservation and development of genetic resources,selecting and breeding ornamental plant varieties,establishing high-quality production models,initiat

333、ing breeding programs for rare flowers,and implementing science and technology transfer programs to localities.Additionally,agricultural extension programs on ornamental flowers and plants have been introduced.Thanks to these initiatives,scientific agencies have developed hundreds of flowers and ornamental plant varieties and created technical processes for transfer to the public and farmers.As a