ASSESSMENT OF THE FINANCIAL EFFICIENCY OF CHILI-GROWING FARMERS IN TRA VINH PROVINCE, VIETNAM DURING THE PERIOD 2022–2023

Abstract

This study aims to evaluate the financial efficiency of chili pepper production among 95 farming households in three districts of Tra Vinh Province from 2022 to 2023, involving Duyen Hai, Tra Cu, and Cau Ngang. The research employed rapid rural appraisal methods,
SWOT analysis, and multiple linear regression to identify the key determinants of farmers’ profitability. The results indicated that yield and selling price are positively and significantly correlated with net profit, explaining 98.4% of the variation in financial performance. On average, chili cultivation generates a profit of VND 139.76 million per hectare per year, with a capital efficiency ratio of 1 and a material efficiency ratio of 4, reflecting high economic viability. The SWOT analysis revealed both opportunities, such as improved technology transfer, production linkages, and the promotion of organic-oriented farming and challenges, including limited market
access, labor shortages, and price instability. Moreover, the findings underscored the potential of chili pepper cultivation to enhance household income and resilience against climate change, particularly among Khmer ethnic farmers constituting more than 80% of participants. This study provided empirical evidence supporting local agricultural policies aimed at crop restructuring toward sustainable, high-value, and climateresilient production systems. To strengthen the competitiveness and sustainability of chili farming in Tra Vinh Province, future research should focus on developing value chain integration, digital market access, and risk management strategies.