Factors Affecting Sustainable Model of Tea Crops, Tea Products and Price in Northern Region of Vietnam, Supply Chain Management Issues - And Marketing Strategy Issues

Abstract

Tan Cuong tea planting in Thai Nguyen Region in northern region of Vietnam has raised concerns in sustainability in agriculture. Tan cuong green tea has many chemical components such as water, tannins, caffein, vitamin and mineral. Based on the fact that subjects participating in the cognitive chain are still having very limited recognition in terms of global value chains and requirements international market demand as well as from farmers to processing enterprises, they pay little attention to quality, branding and investment for science and technology for quality improvement and competitiveness enhancement. By using experiences, observation, synthesis, analysis, and OLS regression model, the study findings suggest that good tea value chain requires not only applying VietGAP, GlobalGap, etc. Standards but also using the right inputs at the right time, reducing costs as well as product quality improvement. Additionally, study results show us that in a 3 factor regression model, exchange rate has higher (positively) impact on tea price while trade balance has negative correlation with tea price.Last but not least, authors stated we need to develop tea product range development and for farmers to apply pricing strategy that can be either competitor-based pricing or psychological pricing, or can apply skimming price or penetration price.