Determine the factors that have significant affects on choosing clean vegetables of consumers in ho chi minh city

DETERMINE THE FACTORS THAT HAVE SIGNIFICANT AFFECTS ON CHOOSING CLEAN VEGETABLES OF CONSUMERS IN HO CHI MINH CITY MAsTEn or AxTS IN DEVELOPMENT ECONOMICS HO CHI MINH CITY JULY I2OO'7 UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS ncxx — na xngnuuoa nno×cr ron x.x ox Diviionnrr zcoxoxics DE TERMI NE THE FACTO RS THAT HAVE SIGNIFI CANT AFFECT S ON CHOOSING CLEAN VEGETABLES OF CONSUMERS IN HO CHI MINH CITY BY NGUYEN VAN DU THESIS SUBMITTED IN PARTIAL FULFILMENT OF TRE REQUIREMENT FOR THE DEGREE OF MASTER OF ARTS IN DEVELOPMENT ECONOMICS Supervisor: Dr.NGUYEN NGOC HOA HO CHI MINH CITY JULY i2OO7 CERTIFICATION “I certify that the substance of this dissertation has not already been submitted for any degree and is not currently submitted for any other degree I certify that to the best of my knowledge and help received in preparing this dissertation and all sources used, have been acknowledged in this dissertation.” Signature Nguyen Van Du Date: 30'h Ju1y 2007 ACKNOWLEDGEMENTS I would like to thank more than those respectable name that I will mention following Without them, I can not get knowledge as today and this thesis may not even have existed First, I would like to express my special thanks to all organizations and member those found this programme All lectures and staff of the project help me having useful lessons, interesting seminars and new information Next, I wish to express sincere appreciation to my academic supervisor Dr Nguyen Ngoc Hoa for his helpful guidance and assistance during the writing of this thesis I also deeply thank to Dr Nguyen Trong Hoai, Dr Le Cong Tru, Dr Nguyen Hoang Bao, Mr.Thuy, Mr.Vu for their valuable suggestion and ideals about earlier draft of this thesis Following, I send my thanks to Libran, Ms.Chi, who helps help me in finding necessary document and reference books Thank to Board of Managers of Co-Op Mark supermarket channel helping me in survey consumers Thank to Mr.Dung, agriculture chief, Agricultural and Rural Development Office of Ho Chi Minh City who provides data for this thesis Many thanks go to my classmate, who shared with me joys and hardness during the time I study in this program My thanks send to my family, my parents, my wife who help me in supporting time, money and belief Share my joyful with my daughter who helps me understood the meaning of happiness and life Topic title Determine the factors that have significant affects on choosing clean vegetables of consumei s in Ho Chi Minh City ABSTRACTS According to International Labor Organization, yearly in the world, there are around 40000 in 2000000 who got vegetables poisoning were killed and the loss in economic is so big' Vegetables poisoning is one of the big problems in many countries because it does not only give direct eff€lGt but also give the indirect effect to health and economy in future Using vegetables that have contaminants at levels well above maximum residue limits, including pesticides, nitrate and heavy metals can get some kind of disease; even it is the reasons of some kinds of cancer in future' However, in Ho Chi Minh City (HCMC) and other provinces in Vietnam, the percentage of clean vegetables are used is limited So, in this thesis, I hope to answer the questions that which factors affecting the choice of clean vegetables of consumers in HCMC In addition, I hopefully give out some recommends to farmers, producers, and retailers in order to raise clean vegetables demand For the benefit of using clean vegetables, my thesis aim to build process that contributes to the successful propaganda of using clean vegetables My theses may béGO1T1€l Reference document to run clean vegetable programme of the government or the other organizations ' Nguyen Sa — vnexpress.net 16/04/2005 ' Dr Tran Thi Ngoc Son — rice Mekong ‹lelta home TABLE OF CONTAINS CHAPTER I: INTRODUCTION 1.1 Problem statem 1.1.1 The food poisoning picture in recently years 1.1.2 The product, harvesting and distribution of vegetables 1.1.3 Clean vegetables demand .4 1.1.4 The role of government and consciousness of citizens .4 1.2 Research objectives 1.3 Research questions and hypothesis 1.4 Methodology .6 1.5 Scope and limitation of research .7 1.6 Structure of the study CHAPTER 2: THEORETICAL FRAMEWORKS 2.1 Supply and demand curve 11 2.1.1 Supply and demand concepts 11 2.1.2 Elasticity of supply and demand 13 2.2 Theory of consumer’s choice 15 2.2.1 Consumer preferences 15 2.2.2 Budget constraints 17 2.2.3 2.2.2.1 Budget //ne 17 2.2.2.2 The effect of price .18 2.2.2.3 The effect ofincome 19 Consumer choice 20 2.3 Markets with Asymmetric Information 22 2.3.1 Asymmetric Information and adverse selection .23 2.3.2 Market signalling .24 2.3.3 Brand name 24 2.3.4 The value of information 25 2.3.5 The principal — agent problem 26 2.4 Distribution channel 26 2.4.1 The rule of distribution channels to the development of market 27 2.4.2 The structure of distribution channel 28 2.5 Empirical studies 29 2.6 Suggested research model 31 2.7 Chapter remarks 32 CHAPTER 3: AN OVERVIEW OF CLEAN VEGETABLES IN HCM CITY 3.1 The characteristic of HCM city 35 3.2 An overview of vegetable production in HCM city 36 3.3 The policies of HCM city government about clean vegetable .39 3.4 Distribution and management vegetable in circulation 40 3.5 Chapter remark 43 CBAPTER 4: ECONOMETRIC ANALYSIS AND RESULTS 4.1 Model specification 44 4.1.1 Model selection 44 4.1.2 Model specification 46 4.1.3 Analytical framework / 48 4.2 Data description 52 4.3 Descriptive statistics .52 4.4 Result of estimations .54 4.4.1 Model test 54 4.4.2 Result of regression 55 4.4.3 Comment on results 55 4.5 Chapter remarks 57 CBAPTER V: CONCLUSION AND POLICY RECOMMENDATIONS 5.1 Conclusion .59 5.1.1 Conclusion basing on result regression 59 5.1.2 Compare the result with hypotheses 61 5.2 Policy recommendations 61 5.2.1 The consumer policy recommendations 61 5.2.2 The policy recommendations .62 5.2.2.1 Policy recommendations for producers 62 5.2.2.2 Policy recommendation for distriblttOFS 63 5.2.2.3 Policy recommendation for government and manage 64 5.3 Limited of thesis and suggestion for further studies 64 Appendix 66 Questionnaire 68 Reference 71 LIST OF TABLES Table 3.1: Statistic sheet about vegetables in HCM since 2002 to 2006 36 Table 3.2: The vegetable area developing plan from 2005 to 2010 39 Table 3.3 Method name and time for testing vegetables quality 41 Table 4.1: Summary of chosen variables and expected signs .48 Table 4.2: Customer point of view about price of clean vegetables 53 Table 4.3: Distinguishing able of customers about clean vegetables 53 Table 4.4: Believed of consumers in brand name 53 Table 4.5: Clean vegetable distribution process 53 Table 4.6: Parking and information requirement of vegetables 54 Table 4.7: Estimated probability changed of variables 55 tendency choice clean vegetable and percent in estimate is more than 50% is consider choice vegetable, the other is not choice clean vegetable Secondly, about quantity and quality of data is still limited Because of time and the limited in expensive, the numbers of consumers are survey is 130 This is not suitable number that can be representative for almost billions consumers in HCM city About result that base on this thesis shows that knowledge, income, distribution and believe in brand name have significant effect to choice clean vegetable In detail, the effective of knowledge is more than the effective of income and the effective distribution channel is greatest In descriptive statistic, by quantitative approach method, the effective of price is clear however by qualitative approach method in regression, the effective of price is not significant Effective of age in this model is not determined CHAPTER V CONCLUSION AND POLICY RECOMMENDATIONS This chapter contains the main conclusions of study On this basis, I give out some implying policies to relevant objects Although this thesis still contains limits, however it explains some problems that I have already mentioned on the problem statement in chapter The result of this thesis also answers my research questions, my hypothesis, etc The price, distribution and belief in brand name explain the problems mentioned in the newspaper and mass media The recommendations I describe in part 5.2 will mention the policies in order to improve existing situation During the time I this thesis, nearly one year, I have spent much time studying the real situation related to clean vegetables I have already researched the production process and I myself joined safe vegetables class that was organized by Agricultural and Development Office I have also spent many hours observing the Gonsumers’ behavior when they choose vegetables, etc, so I hopefully give some sensible polices Finally, I will mention the limits and some problems that I haven’t solved in the scope of this thesis in part 5.3 - Limited of thesis and suggestion for further studies 5.1 Conclusion In this section, based on result of regression and description statistic, I will give out some conclusion Then I make the comparative between the hypotheses, research questions and finding results 5.1.1 Conclusion basing on result regression The main result of this thesis has been explained almost all hypotheses in model First of all is the price problem As the other goods, price has effect on purchasing those goods In this thesis, as I have mentioned in section 4.5, in descriptive statistics, the price problem is clearly shown to the customers who choose clean vegetables and the others who don’t choose In regression, sign of price variable shows positive relationship between willingness to pay and clean vegetables choice If consumers are willing to pay higher price for clean vegetables, they will trend to choose more This is suitable in reality 59 when I surveyed, a group of consumers thought that the price of clean vegetables was acceptable because they realized that the clean vegetables production of the farmers would be more expensive input cost On the contrary, the other group thought that the price of clean vegetables was still high Consumers’ knowledge has effect on choosing clean vegetables In regression the result shows that knowledge is more effective to compare with income The knowledge of Gonsumers improves how consumers pay attention to safe food As I suppose in the previous chapters when consumers understand the bad effects of vegetables, they will try to overcome difficulties in buying clean vegetables In case of Vietnam, when vegetables quality and the unclear thing between clean and unclean vegetables, the consumers themselves need to have the knowledge of buying food The third problem is income As the other goods, income has positive effect to consuming goods For clean vegetables, some consumers not choose clean vegetables because of price problem Therefore, in case, income of consumers increases the demand for clean vegetables will expand The consumers usually choose some goods just by their brand name, especially when they can not distinguish the quality of goods For clean vegetables, they can not distinguish between clean and unclean vegetables, so brand name and certificate are very important to clean vegetables choice Brand name of some kinds of food is not only well known but it is also the quality of goods When I asked consumers if they could distinguish between clean and unclean vegetables, some of them answered they couldn’t Even some consumers answered “Yes”, they misunderstood In fact, we can not distinguish quality of vegetables by naked eye; we must use some kinds of test method So the consumers must base on brand name of producers and distributors However, because of profits, some producers and distributors have mingled clean vegetables with normal vegetables that make the consumers not believe in the quality of clean vegetables If producers and distributors keep their brand name, this will help consumers believe and they will choose more clean vegetables The distributor channels give strong effects to the clean vegetables choice of consumers As I have mentioned in section 4.5, vegetables are a kind of goods that you 60 can not keep for a long time, so the consumers must usually buy daily If distributor channels make convenience to consumers, they will choose more Some consumers said that they were afraid of coming to supermarket, leaving their motorbikes with some one, queuing for the bills just for buying a clean vegetables bundle In HCM market, clean vegetables that are sold in some supermarkets and some clean vegetables shops are unpopular, so it prevents the customers from choosing clean vegetables 5.1.2 COlDQare the E'esult with hypotheses My thesis result show that choice clean vegetables is effected by price, income, brand name of producers, distributors and the knowledge of consumers, the factor is suppose own consumers’ information About affected level of every factor, I have already mentioned in previous And now, I want to emphasize that beside the affected of those factors such as price, income, choice of clean vegetables is strong affected by brand name, distributor channels So, in order expanding clean vegetables demand, the companies and organization need to build and keep brand name as well as expanding distribution channels 5.2 Policy recommendations Based on the re’sult of this thesis and more than one year I have beeri looking for the relevant information to clean vegetable, now I suggest some policy recommendations to farmers, distributors and managers Besides, I also gather suggestions of consumers about the problems related to clean vegetable 5.2.1 The consumer policy recommendations I think the best way to serve consumers is to satisfy their problems, so during the time I surveyed consumers, I asked them if they had suggestions Some consumers refused, others expressed their view on clean vegetables problems After statistics, I have results about consumer policy recommendations as the following table 61 Table 5.1: Consumer suggestion statistic table Ordinal suggestion Consu mer Total 28 Expanding distribution Intensifying government control Quality management in produce Quality management in market Intensifying propaganda and raising the morals of producers, distributors Subsidy in produce Only produce clean vegetables Improve the quality of clean vegetables Some other suggestions 5.2.2 12 11 11 The poficy recommendations Based on result of regression and descriptive statistic, I will provide some polices In those policies, I device into three groups, includes the policy recommendation for producers, distributors, government and managers 5.2.2.1 Policy recommendations for producei s: Production is original to solve clean vegetable problems It is supposed that all producers just produce clean vegetables; then clean vegetables problems have been absolutely solved However, in the case of Vietnam, it can not be true at the moment So I have some following suggestions for produce management i Advance thefarmer’s I‹nou›ledge in order to apply new technology to produce New technology will bring higher productivity and higher quality Nowadays, technology has been developing such as gene technology, biology technology or new method such as GAP method, IPM method, etc With low education, the farmers can not update, apply or even not believe in those new technologies; then they just in their traditional way In fact, in HCM, 62 Agricultural and Rural Development Office has organized some classes such as IPM, GAP However, when I joined these classes, I found that they were largely organized, but not efficient because of inefficient equipment, lack of seriousness, small scale, etc Farmers lack basic knowledge and belief in new technology, especially for technical support to apply new technology So aher class had finished, farmers almost kept on produce as their traditional way Bulldlng the specializing in the grouting of clean vegetable, case of produce in small scale, the farmers can not apply new technology and harvest deviation creates the advantage condition to pestilent insect development Moreover, clean vegetables need to have brand name that creates the advantage in selling products because of the unclear thing between clean and unclean vegetables Expending of clean vegetables type in production in order to satisfy marIi:ct, According to some consumers, lack of clean vegetables type creates a barrier in consuming clean vegetables 5.2.2.2 Policy i ecommendations for distributors: The role of distributors is to bring clean vegetables to consumers There are many relevant problems in distributing clean vegetables, so in order to bring the convenience of choosing clean vegetables to consumers the distributors need to: i Expend distribution choMnel, create the convenience to coMsMmers As I have mentioned above, the number of clean vegetables shops is limited It is a barrier for the clean vegetables choice of consumers ’ii Building the brand name of distributors in order to create bellefto consumers In fact, in HCM market, because of benefits, some distributors have duped consumers by blending normal vegetables with clean vegetables This leads to losing belief of consumers i’ii Suppty enough Information to consumers such source, cuttivatlng tltne, Ingredient, etc of vegetables and its effect on the heath of consumers We know that vegetables and other food, besides giving calories, have negative or positive effects on the health of consumers 63 5.2.2.3 Policy recommendations for govei nment and manage: As the other problem in society, the government has important role in control and improve current situation i About production, the government needs to raise the knowledge and help farmers in order to touch as well as apply new technology The government needs propaganda, controls and raises morals of farmers in using pesticides and other chemicals Other problems such as soil land, water irrigation source, test method, etc are invested by the government because those are too difficult and expensive for farmers to solve In order to reduce the cost and set up reasonable price, the government needs to subsidize and apply preferential policy about capital, seeds and technology in order to create favorable conditions to farmers ii Government needs to intensify control the quality of vegetables on the market and in produce Building suitable policy in management and equipping quick test tools to control in circulation iii.Government needs to intensify in propaganda about the bad effect of unclean vegetable When the consumers have enough knowledge, they would choose clean vegetables as well as willingness to pay high price for clean vegetables Propaganda must be executed for a long time with suitable policies, suitable programs such as organize competitions about safe food, television programs, posters, etc This will help the strong growth of clean vegetables market iv.To combine with other provinces in order to control the quality of vegetable in produce Since HCM city can not supply all HCM market that we need to import from other provinces so the best way is to combine with other provinces in controlling the quality of clean vegetables S.3 Limited of thesis and suggestion for further studies Although the thesis answers my research questions and explains some statement problems, it still contains some limits 64 First, data limits when I just surveyed 130 samples including three group consumers can not be the typical number for more than billions citizens and thousands of residents Second, since I wanted to survey at the right time when consumer decided to choose vegetables at the market, so they might hurry and the quality of answering is not good In this thesis, price problem is not exactly measured Despite those limits above, the thesis may be a good foundation for further studies Future study should divide consumers into different education groups The consumer education may have effects on clean vegetables choice It should survey consumers about the money that they spend on food Consumer income may be used in different ways Though consumers have the same income level, they may spend money on food differently In case, we know the money that they spend on food, we may understand more clearly Observing the consumer change of vegetables choice, after we supply knowledge about safe vegetables by organizing competitions, classes and propaganda programs, we can estimate exactly about the effect of those programs 65 Appendix Dependent Variable: CHOICE Method: ML — Binary Logit (Quadratc hill climbing) Date: 06/26/03 Time: 06:23 Sample: 130 Included observations: 130 Convergence achieved after iterations Covariance matrix computed using second derivatives Variable Coefficient Std Error z-Statistic Prob C -4.203852 1.150021 -3.655457 0.0003 AGE -0.005959 0.021055 -0.283021 0.7772 PRICE 0.007367 0.009096 0.809947 0.4180 KN 0.285894 0.080968 3.530926 0.0004 INC 0.001109 0.000356 3.114739 0.0018 BN 1.136127 0.469155 2.421644 0.0155 DIS 1.351557 0.490976 2.752797 0.0059 Mean dependent var 0.492308 S.D dependent var 0.501875 S.E of regression 0.397139 Akaike info criterion 1.036436 Sum squared resid 19.39949 Schwarz criterion 1.190842 1.099176 Log likelihood -60.36833 Hannan-Quinn criter Restr log likelihood -90.09375 Avg log likelihood LR statistic (6 df) 59.45084 Probability(LR stat) 5.82E-11 Obs with Dep=0 66 Obs with Dep=1 64 McFadden R-squared Total obs -0.464372 0.329939 130 66 Appendix Dependent Variable: CHOICE Method: ML - Binary Logit (Quadratic hill climbing) Date: 06/26/03 Time: 06:26 Sample: 130 Included observations: 130 Convergence achieved after iterations Covariance matrix computed using second derivatives Variable Coefficient Std Error z-Statistic Prob C -4.270798 0.799347 -5.342858 0.0000 KN 0.295693 0.079928 3.699482 0.0002 INC 0.001122 0.000354 3.171994 0.0015 BN 1.199997 0.460847 2.603898 0.0092 DIS 1.333254 0.484262 2.753169 0.0059 Mean dependent var 0.492308 S.D dependent var 0.501875 S.E of regression 0.395699 Akaike info criterion 1.010965 Sum squared resid 19.57221 Schwarz criterion 1.121255 1.055780 Log likelihood -60.71275 Hannan-Quinn criter Restr log likelihood -90.09375 Avg log likelihood LR statistic (4 df) 58.76199 Probability(LR stat) 5.28E-12 Obs with Dep=0 66 Obs with Dep=1 64 -0.467021 McFadden R-squared 0.326116 130 Total obs We use a chi- square statistic with two degrees offreedcim1›ascd unthe likelihood ratt‹›, WehAxsKoos -Rhi¾f(O::05J)zf9# : 67 : : : : , : : Appendix 3: THE QUESTIONNAIRE Dir Customers! We belong The Vietnamese — Netherlands Program for Master of Development Economics Now, we are studying about the factors that have significant affects on choosing vegetables of consumers in Ho Chi Minh City The information in this questionnaire is just used for study and is used in this program Your exact information about clean vegetable is very importance in this theme Thank for your co-operation Please provide the private following information: Full name .Age Address Phone number You are main housewifely pei son in youi- family D Yes thinyour faintly meal, clean vegetables is used about.- Complete clean vegetables, the percentage is estimated nearly 100% O We want to buy clean vegetables but some time we are still using normal vegetables and the percentage is estimated nearly 60% ! O We just buy clean vegetables when convenient, the percentage is estimated about 30%O We use normal vegetable in market mainly and rather use clean vegetables The perGent Of clean is estimated about less than 10% - 27 in thosefollowing factors u›hichfactors have affected to safe level of vegetables Land Yes No I don’t know Irrigation source Yes No I don’t know Variety Yes No I don’t know Using pesticide, protecting plan chemical Yes No I don’t know Climate Yes No I don’t know Fertilizer Yes No I don’t know 68 Cultivating time Yes No I don’t know Maintaining after harvest Yes No I don’t know Processing way Yes No I don’t know 3Z WhéM JOM the unclean vegetables it may lead to.- Acute poisoned If acute poisoned don’t happen, it still give bad affect in future If acute poisoned don’t happen it means there are no bad affect for your health Unclean vegetables may become reasons for some kind of diseases 4Z In your opinion, cost of planning clean vegetables ›iII be Higher than normal vegetables Equal normal vegetables I don’t known 5Z inyour opinion, prlce of clean vegetables is.- High O Medium Acceptable If comparative wlth normal vegetables price, the hlgher percent that you can accept to buy clean vegetables will be: 7Zinyour opinion to distinguish normal or clean vegetable is.- You can distinguish You get difficult in distinguish You can not distinguish 8Z When buying vegetable you believe in brand name of producers or distributors? Believe D Do not believe D 9Z inyour opinion, 1s vegetable necessary topacI‹ and print perfect information? Necessary It is not necessary No because price will be higher TOP Whenyou bHfi clean vegettZbtes you u›ltl base on Brand name of producer’s Brand name of distributor’s Brand name of both producer’s and distributors Do not base on any brand name You just observe the quality of vegetables appearance llZ How far from your house to nearness clean vegetables shop About kmD About km O I don’t find any clean vegetables shop O 12Z M HSt f OH joy other free when you go to buy clean vegetables Leave one’s motorbike You must wait to pay money 13Z In your opinion ijuality and type of vegetables in ctean vegetables shop are Poor and lack of type Enough to choose 69 14Z So, inyour opinion, dlstributlon process and clean vegetables type are.- Convenient Not convenient 17 Total income per month of all the members inyour faintly ls VND Number of persons in your family is people 16Z DLSCH S!slon about clean vegetables, some opinion said that “Choice clean vegetables are affected byfollowing list Ramming thosefactors bases onyour opinioru Factors Rank Price Informabon bout produce and bad affected ofunclean vegetables to consumer’ health Brand name of producers and distributors Distribution process Income of consumer 17Z Beside the 5factors that are mention in question 16, in your opinion are there any factors Thank for your co-operations 70 REFERRENCES Robert S.Pindyck and Daniel L Rubinfeld (2001), Microeconomlcs, New Your Macmillan David Begg (1991), Economic — Third edition, London McGraw Hill John M Love (1991) “The Produce Industry's “5 a Day “ Educational Program” USDA's Economic Research Service, 1301 New York Ave., N.W., Washington, D.C 20005-4788 Ho Thanh Son, Bui Thi Thai (2003) “Strategies of staI‹eholders in vegetable commodity chain supplying Hanoi marI‹el’ Tran Thi Thanh Dung (1997) “Environmental health effects and rice productivity of pesticides in the Mch:eng delta — Vietnam” Jean-Joseph Cadilhon, Paule Moustier, Nigel D Poole, Phan Thi Giac Tann and Andrew P Fearne (2002) “insightsfrom Vegetable Supply Chains to He Chi Minh City Vietnam” Dang Van Hau (2002) “Modeling motorcycle ou›nershlp in Vietnam” Le Quoc Thanh (2003) “Demand analysis of television ownership in Vietnam” P MOUSTIER,1 E BRIDIER,2 N.T.T LOC3 (2002) “Food Safety in Hanoi’s Vegetable Supply Some insightsfrom a ’Consumer Survey” 10.Michael F Gengenbach and Hans-Peter Weikard (2007) Environmental Economics and Natural Resources Group Wageningen University, The Netherlands “Wastewater Usefor Irrigation and Asymmetric Information In the Food Marl‹et The Role for Water Allocation for Efficient Prices” 11.Michael R Ward Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign, Illinois, USA (1999) “Internet shopping consumer search and product branding forthcoming Journal of Product and Brand Management” 12.Evi Irawan, Volker BECKMANN, Justus Wesseler (2007) “A Comparative Analysts ofFarm Labor Organization and IPM Adoption” 71 13.Chapika Sangkapitux (2007) “Determining Factors of IPM Adoption - Empirical Ev‘idencefrom Longan Grovers In the North of Thailand" 14.Dr Le Trinh Minh Chau and al(2004) Developing good distributor system in Vietnam 15.Ha Noi Moi newspaper (2005, 2006, 2007) 16.Thanh Nien newspaper (2005, 2006, 2007) 17.Tuoi Tre newspaper (2005, 2006, 2007) 18.Ho Chi Minh General Statistic Offices (2006) 19.Vnexpress (2006) “Kinh Hoang Ran Sach” (Frightened clean vegetable) True Ngon h reporter http://www.vnexpress.net, accessed on Jun 26' 2006 20.Yearly report of HCM City Agricultural and Rural Development Office (2005, 2006) 21.Yearly report of HCM City’s Plant Projecting Department (2005, 2006) 22 Rickette, M (1988), Neoclassical Microeconomics, Volume I, London: Edward Elgar 23 Cramer J.S., (1991), The Logit Model London Edward Armold 24 Gujarati, D.N (1995), Basic econometrics, 3‘, NewYork: McGraw Hill 72 ... significant affects Wholesalers Wholesalers on choosing clean vegetables of consumers in Ho Chi Minh City may include: price of Retailers Consumers 28 Retailers Retailers Consumers Consumers clean vegetable... purchase those goods because they have the limitation of budget line Most of consumers have to face to the lack of finance so in their financial condition, how they decide to choose goods that they... from those above problems, my main objective of this thesis is to determine the factors that have significant effects on choosing clean vegetables of consumers and thus affecting the demand of clean