Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

Participatory poverty monitoring in rural communities in Viet Nam
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Local authorities have undertaken some measures to overcome those problems, but
their effectiveness was limited.
Risks associated with unstable agricultural production
Increasing pressure on the land has led to shorter fallow periods in upland
fields and declining soil fertility. Drought and lasting heavy rain in mountainous
communes (Luong Minh-Nghe An, Xy-Quang Tri, Phuoc Dai, and Phuoc Thanh-Ninh
Thuan) has further degenerated upland land. In communes close to river estuaries
(Thuan Hoa-Tra Vinh), drought has resulted in increased salt water infiltration. Improper
agricultural farming has also affected soil fertility. In Xy commune, Quang Tri cassava
farmers have not invested in fertilizer since 2003. In some lowland communes (Thanh
Xuong-Dien Bien, Cu Hue-Dak Lak, and Thuan Hoa-Tra Vinh) farmers have overused
chemical fertilizers and pesticides.
Attempts have been made to improve soil quality such as the provision of bio- fertilizer
for cassava (Xy-Quang Tri) and tea (Ban Lien-Lao Cai); and the introduction of composting
techniques (Cu Hue-Dak Lak). However, farmers have found such initiatives costly in
terms of time, money and resources and they have yet to prove successful.
Unstable market price makes production unsustainable. Many farmers introduce
new crops too quickly in response to changing prices. In Cu Hue-Dak Lak, for example,
in the early 2000s when the price of coffee fell farmers replaced coffee trees with corn,
vegetables and subsidiary crops. When prices recovered farmers expanded coffee
production, often on unsuitable land. Prawn farming in Thuan Hoa-Tra Vinh without
sufficient planning and farming techniques, is an example of the difficulties farmers face
when they respond rapidly to price changes (Box 1.8).
BOX 1.8. Unstable rice-prawn model in Thuan Hoa commune
Thuan Hoa commune (Cau Ngang, Tra Vinh) is located on a river estuary close to the
sea. Every year, part of its farmland is infiltrated with salt water during the dry season.
The commune began tiger prawn farming in 2004.
In 2008, 278 households in the commune farmed tiger-prawns. However, high
feed and low sale prices meant many households made losses and ceased farming.
In 2009, there were only 105 farms. Only the wealthier households were able to
continue farming. However, in 2009 the price of tiger prawns rose to double the
2008 price, and, in 2010, the number of farms increased. However, cold weather and
insufficient water salinity meant 87 households made losses. Most did not resume
farming. Continued high prices in 2011 brought the number of prawn farmers to 320
households.
Many local people and officials think that the prawn-rice model in Thuan Hoa commune
is unsustainable for the following reasons:
• Poor farming techniques. Most farmers rely on their own experiences and
word of mouth.
• Ineffective disease control. Farmers use a common water source fed
directly from the canal to their farms without filtering tanks, resulting in the
spread of diseases such as white spots, red body and black gills.
• Fluctuating prices. High feed prices in 2010 and 2011 prevented many
households from investing in their farms. Some households secured high
interest loans from feed agents.
• Limited access to credit. Banking credit controls in 2011 meant many
farmer households lacked capital.
• Adverse weather. Drought, heavy rains, and abnormal temperatures meant it
was difficult to control water salinity, which can easily kill young prawns.