This research explores the link between vertical coordination and the critical factors of managing production quality in the seafood value chain of Vietnam. It examines the importance of coordinating the activities in a supply chain in order to improve the quality of production. The value chain concept, total quality management, the theory of institutions and transaction cost economics, will be applied to analyze how the coordinated efforts of various stakeholders can be developed to achieve a better product quality and safety assurance. Conclusion and managerial implications are drawn from the analysis pointing at the development of closer value chain relationship between fish farmers and processing/export firms in the seafood value chain in Vietnam.