Development of Agro-Based Clusters in Vietnam: A Case Study on Coffee Sector in the Central Highlands

In the context of globalization, Vietnamese agriculture has been changing to enhance its competitive advantage in the global market. One of the important changes is the formation and development of agro-based clusters. This study analyzes the necessary conditions to develop agro-based clusters in the coffee industry in the Central Highlands, Vietnam. The study conducted a survey of 430 samples belonging to 5 main groups of actors in 4 provinces of the Central Highlands. Research results show that factors contributing to develop coffee clusters Central Highlands include natural and social conditions, specialization and centralization. Hindering factors are institutional problems and the weak role of leading enterprises in coffee industry. Therefore, policy recommendations to develop coffee clusters are regional spatial reorganization, production development, innovation and support for actors participating in agro-based clusters.