• Journal of the Economic Geographical Society of Korea
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• v.20 no.4
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• pp.503-521
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• 2017

Demands in a sustainable coffee certification program have increased steadily in the global coffee market. Along with this trend, recently the introduction of sustainable coffee certification programs in Vietnam has increased significantly. However, Vietnam's the coffee certification programs led by a single state-owned company, which is called Vinacafe, shows some differentiations from other sustainable coffee programs certified in other countries. The structure of exclusive decision-making in Vinacafe has been interfered with economic impacts in accordance with the introduction of sustainable coffee certification programs in Vietnam. Therefore, the purpose of this paper is to identify changes in and limits of the value chain of the coffee industry with the introduction of Vietnam's sustainable coffee certification program by investigating the case of Vinacafe. To this end, the research has attempted 1) to concern with the role of Vinacafe in the process of growth in the coffee industry in central highland of Vietnam, 2) to analyze changes stemmed from the introduction of Vinacafe's sustainable coffee certification programs, and 3) to examine the limits to the introduction of sustainable coffee certification programs in Vietnam. As a result, it found out that Vinacafe subsidiaries shifted the losses resulted in the payment of additional environmental costs to produce sustainable certification coffee onto coffee farmers depended on Vinacafe subsidiaries, because the price of premium emerged from supports for certificated coffee production has not been guaranteed by Vinacafe mother firm.

• Journal of the Economic Geographical Society of Korea
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• v.18 no.4
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• pp.415-430
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• 2015

Since the late 1990s Vinacafe has gone through strategic changes in corporate governance and managements due to an increase in the introduction of coffee MNCs, a growth of global demands in sustainable coffee, aging coffee tree, and the deterioration of coffee production with climate changes in Vietnam. Vinacafe has attempted to cope with these kinds of changes through strategies for equitization. Therefore, the main aim of this paper is to identify strategies for enhancing the competitiveness of the Vietnamese coffee industry by investigating changes in corporate governance and processes of coffee production and distribution. The equitization of Vinacafe has led to the enhancement of coffee competitiveness in two perspectives. Firstly, as it has decentralized decision-making from headquarter, subsidiaries have become able to strength their competitiveness themselves by introducing new technologies, improving coffee quality, and encouraging the introduction of eco-friendly production methods through cooperative relationships with stakeholders involved in coffee production and distributions in Vietnam. Secondly, it has also enhanced competitiveness through the diversification and effectiveness of coffee managements by intensifying the flexibility of contract with coffee farmers and diversifying coffee sales and supply chains in Vietnam.

• Journal of the Economic Geographical Society of Korea
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• v.21 no.4
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• pp.289-302
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• 2018

As business activities of firms for maximizing profits has resulted in increases in economic, social and environmental problems in regional geographies, they have stimulated some social activities through enhancing their public image and justifying their conducts. In fact, firms have been given concerned with a decrease in profits due to the promotion of their social activities required by local communities. However, firms are able to create shared value resulted in added value creation centering on shareholder as well as stakeholder by expanding increases in economic and social values. Therefore, the main purpose of this research is to draw an index which is able to evaluate the mechanism of virtuous circle resulted from creating shared value(hereafter CSV). At the same time, it has attempted to analyze some limits to and real effects of CSV by the index. The paper has analyzed the CSV of certificated coffee by using the index of sustainability in the Vietnamese coffee industry. The introduction of certificated coffee showed positive effects in the order of environmental, economic and social indicators. However, the structure of closed decision-making in Vinacafe, which is a state-firm, has not able to secure enough economic profits for CSV, leading to some limits to the formation of virtuous circles in the Vietnamese certificated coffee industry.