This paper clarifies the formation of an export-oriented vegetable producing area in Dalat Highland, Vietnam, through analysis of the raw material procurement system by "Green Home", one of the five processing enterprises. Since its establishment in 2002, Green Home has processed and exported frozen vegetables, spinach and green soybeans, rapidly expanding its scale of sales. The frozen spinach price is ten percent higher than the Chinese price, and this advantage covers the freight cost disadvantage relative to Qingdao, the main producing area in China. Raw vegetables are produced on three Green Home farms (47ha) and one hundred contract farms (103ha). The Raw Materials Section staff make rounds to each farm once in ten days, with Green Home also inspecting for pesticide residue and instituting a trace-back system. However, such quality control levels are looser in Dalat than in Qingdao. Furthermore, land productivity in Dalat is not necessarily sustainable, due to consecutive planting of the same vegetable. These problems must be resolved in order for Dalat Highland to develop as a frozen vegetable producing area.
