Implementing contract farming is considered to bring benefits to participating parties, especially farms/farming households. Many studies have shown the impact of participating in contractual arrangements on the welfare of farms/farming households, often in a region or small area and some typical agricultural production activities. The paper uses data from the Vietnam 2020 mid-term Rural and Agricultural Survey and the propensity score matching method to explore the impact of participating in contract farming on the economic and environmental performance of farms engaged in the cultivation of rice, annual crops, and perennial crops. The results reveal that the farm head's education level, the rate of outsourced labor on the farm, and the proportion of farm-owned land area affect the farm's decision to participate in contract farming. This impact varies between farms growing different types of crops and depending on the type of contract. In addition, farms in the South have a higher likelihood of participating in contractual arrangements than those in the North. The study also reveals that farms with contracts were found to have higher revenues and use less chemical fertilizer compared to farms without contracts.
