Received: 08-10-2012 / Accepted: 20-12-2012
This paperreviewedresults of empirical studies of contract farmingin Vietnam and other countries. The study aimedat clarifying the conceptsof contract farming, advantagesand disadvantagesof contract farming and as well as analyzingfactors affecting contract enforcement in Vietnam. The results showedthat farm products trading under the contract between farmers and entrepreneurs in Vietnambasically has similar characteristicwith contract farming in other countries.It can be indicated that there are five models of contract farming arrangements existing in Vietnam including centralised model, nucleus estate model, multipartile model, informal model and intermediary model. Factors related to contracting context such as weakinstitutionalization of contract enforcement, market price uncertainty, low and undiversified benefits of contractand “weak market pressure”areconsidered as critical factors stronglyaffecting week enforcement ofcontract between farmers and enterprises in Vietnam.