THE FACTORS AFFECTING THE ECONOMIC EFFICIENCY OF CINNAMOMUM IN THAI NGUYEN PROVINCE

Abstract

This study was conducted to determine the factors affecting the economic efficiency of cinnamon in Thai Nguyen Province. The data of the study were collected by directly interviewing 240 cinnamon growing households in Thai Nguyen province. The study uses Structural Equation Modelling (SEM) for analysis. The results show that 6 factors are affecting economic efficiency in Thai Nguyen province, including (1) market, (2) natural conditions, (3) policies, (4) capital, (5) science and technology, (6) qualifications and experience. The research recommends that in order to strongly develop cinnamon production in Thai Nguyen province, all levels of departments of Thai Nguyen province need to plan cinnamon production areas and have effective solutions in promoting output markets for products. cinnamon products and focus on training and transferring scientific advances to cinnamon farmers.