Factors Affecting Contract Farming Enforcement in Rice Production in Vietnam

Contract farming (CF) is considered a relevant measure to supply chain governance. Empirical studies indicate that CF positively affected economic performance of rice production and household welfare. However, there was a low rate of farmers' CF participation, the CF breaks and breaches still happened regularly. While a main stand of literature investigates factors affecting farmers' participation in CF, a few focusses on CF enforcement. This study utilized household survey data by multistage stratified random sampling to address this research gap. Data were analyzed by the Tobit model to determine factors affecting CF enforcement of farmers in rice production in Vietnam. The results highlight that CF enforcement was affected by the characteristics of household heads and households, some contract attributes, and farmers' evaluation on transparency and mutual benefits of CF agreement. Therefore, the relevant design of contract attributes and their levels, improving the transparency and mutual benefits of CF agreements among the stakeholders need to be considered.