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UNIVERSITY UEHBUSINESS SCHOOLSCHOOL OF MANAGEMENTASSIGNMENTSUBJECT: MICROECONOMICSTOPIC:GOOD NEWS IN AGRICULTURE IS BAD NEWS FOR VIETNAMFARMERSLecturter: Nguyễn Hữu LộcClass: 21C1ECOStudent: Liêng Bích DiệuBatch-Class: K47 -ADCID: 31211020877TABLE OF CONTENTTABLE OF CONTENT__________________________...

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UNIVERSITY UEH BUSINESS SCHOOL SCHOOL OF MANAGEMENT

ASSIGNMENT SUBJECT: MICROECONOMICS TOPIC: GOOD NEWS IN AGRICULTURE IS BAD NEWS FOR VIETNAM FARMERS

Lecturter: Nguyễn Hữu Lộc Class: 21C1ECO50100156 Student: Liêng Bích Diệu Batch-Class: K47 -ADC03 ID: 31211020877

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TABLE OF CONTENT TABLE OF CONTENT____________________________________________________ 2 INTRODUCTION_________________________________________________________ 3 (i) UNCERTAIN EVENTS AFFECTING THE PRICE OF RED DRAGON FRUIT IN LONG AN________________________________________________________________4 (ii) USE SUPPLY AND DEMAND TOOLS, METHOD "THREE-STEP ANALYSIS OF EQUALITY CHANGE," AND PROPER GRAPHS TO EXPLAIN CAUSES____ 4 1. Factor of excess supply, supply is greater than demand_______________________ 4 2. The demand factor falls, demand is less than supply__________________________5 3. The influence of exports________________________________________________5 (III) IN THE LONG TERM, RECOMMENDATIONS ON THE SUPPLY AND DEMAND SIDES TO IMPROVE PROFITS FOR AGRICULTURAL PRODUCTS ARE MADE______________________________________________________________ 8 1. Using cutting-edge technology___________________________________________8 2. Boosting exports______________________________________________________8 3. Innovation in product form_____________________________________________ 8 4. E-commerce platform__________________________________________________9 5. Improve products to meet the requirements of epidemic prevention._____________ 9 REFERENCES_________________________________________________________ 100

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INTRODUCTION 2020 and the first half of 2021 will be noted for several unusual events; it was a time when Vietnam and the rest of the world will have faced numerous challenges, from the COVID-19 epidemic to natural disasters. Many types of fruits showed a sudden steep fall in selling prices from the middle of 2020 to the middle of 2021. Simultaneously, various sorts of agricultural products have begun to enter the season; output is high, but exporting to foreign markets is difficult, and domestic consumer demand is low. This is a new issue that will support Vietnam's agriculture in setting the appropriate course for long-term economic development.

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TOPIC: GOOD NEWS IN AGRICULTURE IS BAD NEWS FOR VIETNAM FARMERS. (i) UNCERTAIN EVENTS AFFECTING THE PRICE OF RED DRAGON FRUIT IN LONG AN While the price of other fruits in the Mekong Delta appears to be rising sharply (the price of milk apple has doubled from 10,000-15,000 VND/kg to 22,000-25,000 VND/kg, the price of Taiwanese mangoes has nearly tenfold to 50,000-51,000 VND/kg), the price of red dragon fruit in Long An has dropped dramatically, and nearly 30,000 tons are in need of "rescue" (Ca Linh, 2020). The price of red dragon fruit was 6,000-8,000 VND/kg at the time, compared to 40,000-50,000 VND/kg at the peak of the same season last year, and export goods costing up to 60,000 VND/kg. This year's supply is plentiful, according to garden owners, and growers are expecting a healthy crop (Vinh Quang, 2021). This is the place in the country where the most dragon fruit is grown. The production of dragon fruit farming, which covers roughly 10,000 hectares, is anticipated to be 245,000 tons. Farmers, on the other hand, have not been delighted for long because the harvest is abundant in fruit, but they are concerned about "losing" Tet due to a lack of dragon fruit output (Thái Bình, 2020). (ii) USE SUPPLY AND DEMAND TOOLS, METHOD "THREE-STEP ANALYSIS OF EQUALITY CHANGE," AND PROPER GRAPHS TO EXPLAIN CAUSES *The reasons for the drop in the price of red dragon fruit on the market We start by looking at how this event changed the supply and demand curves' equilibrium. First, we consider whether this event causes the supply and demand curves to shift, or both. We consider the following factors: 1. Factor of excess supply, supply is greater than demand Many dragon fruit producers have recently adopted innovative technology to improve the care of this fruit tree.Many gardeners have used the approach of lighting to warm the plants in order to e ncourage them to flower. They also use small light bulbs to reduce electricity usage while still providing enough light for the tree. Certain gardeners also employ automatic watering

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systems to save up to 80% of human resources and water consumed for irrigation. Here, productivity is high and constant, with many generations of dragon fruit gathered in a row without a break in supply. → Thanks to the application and innovation of cultivation techniques, dragon fruit is produced faster and more. → The supply curve shifts to the right. 2. The demand factor falls, demand is less than supply According to the Department of Statistics, the unpredictability of the COVID-19 epidemic's progression and the lengthening of the social distancing period are wreaking havoc on Vietnam's labor market. In the third quarter of 2021, the average monthly income of workers in the service and public sectors was 5-6 million VND, down 13% from the previous quarter. As a result of the disease, people's economic status deteriorated, and they began to eat and live more sparingly (Thúy Hiền, 2021). → Reducing their purchasing power. → The supply curve swings to the left. 3. The influence of exports In the ASEAN area, Vietnam is China's largest trading partner, and it ranks ninth globally. Due to its good geographical location and enormous consuming market, this is our country's secondlargest customer (after the United States) (accounting for 70-80 percent ). However, because this market is becoming more demanding, they are closely checking nCov on packaging and means of transporting agricultural products from Vietnam after a case of dragon fruit sample in the Cau Phao area was discovered to be positive for nCov (Quang Ninh) (Minh Chiến, 2021). For Vietnamese agricultural exports, China has begun to implement a series of new laws. Many agricultural products that do not fulfill the requirements are returned to the country, causing delays at the border (Hồng Châu, 2021). → Due to oversupply, the selling price was dropped significantly, but domestic purchasing power was insufficient to meet the demand.

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Second, after evaluating the elements that influence supply and demand, we conclude that this event caused supply to grow, demand to fall, and the supply curve to shift to the right while the demand curve shifted to the left.. Third, we compare the old and new equilibrium of red dragon fruit using supply and demand graphs to see how this event has changed the supply and demand of red dragon fruit goods in Long An province.

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(III) IN THE LONG TERM, RECOMMENDATIONS ON THE SUPPLY AND DEMAND SIDES TO IMPROVE PROFITS FOR AGRICULTURAL PRODUCTS ARE MADE 1. Using cutting-edge technology Leading agencies should work to create conditions and provide guidance for farmers to have access to new equipment in order to increase product quality. We can use pesticides when they are needed, rather than indiscriminately, and farming homes can use an automatic watering (coupled with fertilizer) model, as well as fluorescent lamps with light red to handle dragon fruit to avoid being out of season. High output is no longer vital at this time; instead, we should focus on the quality of each agricultural product so that homes are no longer faced with a backlog of unfinished harvest. as well as assist consumers in having a better food experience (Minh Hoàng, 2019). It is strongly suggested that official dragon fruit export contracts be signed to reduce potential hazards, especially given the difficult dynamics of the COVID-19 outbreak (Anh Minh, 2021). 2. Boosting exports We are currently reliant on one of the main export gates, China, which has resulted in passivity in the distribution of Vietnamese agricultural products to international markets. Many overseas importers are interested in building a supply of high-quality dragon fruit from Vietnam, thus we should actively extend the market by bringing dragon fruit to the EU, Asia, Europe, and America (Lưu Hiệp, 2021), (Dỹ Tùng, 2020). 3. Innovation in product form Another viable option nowadays is to improve the product form, which will aid in increasing domestic demand. Dragon fruit is also used to make a variety of products, including freeze-dried and frozen dragon fruit, as well as bread and pizza. Besides, dragon fruit is rescued by a one-ofa-kind roll cake at a street corner in Hanoi. Wontons made from red dragon fruit also attract customers to promote domestic consumption. Buyers are more enticed to use products made from fruit instead of raw fruit because of the variety of processing methods available (Làm Hoành Thánh Bằng Thanh Long Ruột đỏ Bán Không Kịp Nghỉ Tay, 2020), (Độc đáo Bánh Cuốn Thanh Long Hút Khách Hà Nội, 2020).. 8

4. E-commerce platform This is a fairly new solution, not yet applied by many farming households. Speed, reach, and ease of access to clients are all advantages of e-commerce channels. The biggest problem is maintaining product freshness after it reaches the consumer, which is why many manufacturers are unwilling to depart from established trading practices. To quickly promote the potential form of e-commerce, enterprises must be adequately trained in the production process and product promotion (Khánh An, 2021). 5. Improve products to meet the requirements of epidemic prevention. The leading agencies should cooperate with businesses to closely associate with households and cooperate in production towards GlobalGAP and VietGAP certification. Furthermore, it is necessary to promptly support exporters when transporting and circulating to ensure smooth circulation, speed up the stages of preliminary processing, fumigation, nCov quarantine, and support inspection fees before exporting, and send samples to the EU market for testing in accordance with the requirements of the EU market and importers.

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REFERENCES

Anh Minh. (2021, September 1). Lao động mất việc, giảm thu nhập ra sao vì Covid-19? VnExpress. Retrieved November 27, 2021, from https://vnexpress.net/lao-dong-mat-viec-giamthu-nhap-ra-sao-vi-covid-19-4349113.html Ca Linh. (2020, 12 26). ĐBSCL: Trái cây tăng giá dịp cuối năm. Người lao động. https://nld.com.vn/kinh-te/dbscl-trai-cay-tang-gia-dip-cuoi-nam-20201225214202457.htm Độc đáo bánh cuốn thanh long hút khách Hà Nội. (2020, March 1). Vietnamnet. Retrieved November 27, 2021, from https://vietnamnet.vn/vn/kinh-doanh/thi-truong/doc-dao-banh-cuonthanh-long-hut-khach-ha-noi-620575.html Dỹ Tùng. (2020, February 23). 5 tấn thanh long ruột đỏ sắp đổ bộ Australia. VnExpress. Retrieved November 27, 2021, from https://vnexpress.net/5-tan-thanh-long-ruot-do-sap-do-boaustralia-4059009.html Hồng Châu. (2021, November 10). Giá thanh long giảm mạnh. VnExpress. Retrieved November 27, 2021, from https://vnexpress.net/gia-thanh-long-giam-manh-4383792.html Khánh An. (2021, September 28). Thương mại điện tử và câu chuyện tiêu thụ nông sản. Báo Quân đội nhân dân. Retrieved November 27, 2021, from https://www.qdnd.vn/kinh-te/cac-vande/thuong-mai-dien-tu-va-cau-chuyen-tieu-thu-nong-san-672484 Làm hoành thánh bằng thanh long ruột đỏ bán không kịp nghỉ tay. (2020, February 24). Vietnamnet. Retrieved November 27, 2021, from https://vietnamnet.vn/vn/kinh-doanh/thitruong/lam-hoanh-thanh-bang-thanh-long-ruot-do-ban-khong-kip-nghi-tay-618817.html Lưu Hiệp. (2021, September 3). Thanh long Việt Nam được người tiêu dùng nước ngoài ưa chuộng. Công an Nhân dân. Retrieved November 27, 2021, from https://cand.com.vn/Kinhte/thanh-long-viet-nam-duoc-nguoi-tieu-dung-nuoc-ngoai-ua-chuong-i626757/ Minh Chiến. (2021, September 16). Phát hiện virus SARS-CoV-2 trên bao bì thanh long, Trung Quốc tạm dừng thông quan. Báo Người lao động. Retrieved November 27, 2021, from

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https://nld.com.vn/kinh-te/phat-hien-virus-sars-cov-2-tren-bao-bi-qua-thanh-long-trung-quoctam-dung-thong-quan-20210916182927649.htm Minh Hoàng. (2019, April 26). Phát triển thanh long theo hướng công nghệ cao. Báo điện tử Đảng Cộng sản Việt Nam. Retrieved November 27, 2021, from https://dangcongsan.vn/anh/phattrien-thanh-long-theo-huong-cong-nghe-cao-520551.html Thái Bình. (2020, February 6). Long An tìm cách “giải cứu”gần 30.000 tấn thanh long. Báo CAND. Retrieved November 27, 2021, from https://cand.com.vn/Thi-truong/Long-An-tim-cachgiai-cuu-gan-30-000-tan-thanh-long-i553138/ Thúy Hiền. (2021, October 8). Thu nhập của người lao động giảm mạnh do dịch COVID-19. TTVXN. Retrieved November 27, 2021, from https://ncov.vnanet.vn/tin-tuc/thu-nhap-cua-nguoilao-dong-giam-manh-do-dich-covid-19/7f74f6f4-f873-40c7-b123-7b50d7ee7dec Vinh Quang. (2021, January 22). Thanh long rớt giá, nông dân Bình Thuận, Long An lo “mất” Tết. VOV. Retrieved November 27, 2021, from https://vov.vn/kinh-te/thanh-long-rot-gia-nongdan-binh-thuan-long-an-lo-mat-tet-832141.vov PLAGIARISM CHECK

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