This paper analyzes contract farming scheme conducted by agribusiness firm and paddy farmers in the Mekong delta of Vietnam as a case study of LT firm. In-depth and face-to-face interviews for data collection were conducted with 58 contract and 52 non-contract paddy growers, and representatives of the firm in Chau Thanh district of An Giang province. The results show that the firm is likely to focus more on inputs sales including seed and pesticides rather than purchases contract farmers’ paddy and seemingly holds more power to set the price than the farmers are. The study also identifies three factor groups for contracting including overcoming their current output market, gaining supportive benefits via contract and expecting better performance of paddy production. Analysis on cost structure and return confirms that contract scheme can help farmers create greater crop income by receiving higher price. As a result, contract famers are generally satisfied on contract scheme. However, price-setting regime as fixed price set by the firm that makes contract farmers likely unsatisfied