Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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Participatory poverty monitoring in rural communities in Viet Nam 40 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.
Five-year Synthesis Report Part 1: Poverty Trends and Key Themes of Rural Poverty Reduction Partnerships between enterprises and farmers can be beneficial. In a number of cases farmers with contracts with enterprises benefit from higher prices and technical support. In 2010 in Ban Lien-Lao Cai, tea enterprises exported organic tea with the Fair Trade marque at a premium price. Since then they have been able to raise the price of fresh tea purchased from farmers. In Phuoc Dai-Ninh Thuan, a sugar cane company has increased the supply of sugar cane on contract from 54 ha in 2009 to 100 ha in 2010. Other arrangements have been less successful, including corn seed in Cu Hue-Dak Lak, and corn seed and peanuts in Thuan Hoa-Tra Vinh (Table 1.7). 41 TABLE 1.7. Characteristics of contracted farming models at the monitoring points San Tuyet tea in Ban Lien-Lao Cai Time Since 2006 Product characteristics Organic tea, no chemicals used; products processed for export Forms of joint venture and support Multi-stakeholders (enterprises, farmer groups, tea cooperatives, households) Training provided by enterprises; activities of support groups, cooperatives; registered organic tea Advantages - Disadvantages Clear commitments between factories and farmers in fresh tea purchase Factories’ support policy in building organic tea areas. Increased income thanks to higher tea price Rice seeds in Thanh Xuong- Dien Bien Since 2007 IR 64 and Bac Thom No. 7 varieties verified; highly intensive farming Concentrated (Seed selection station signs contracts directly with farmers) Technical assistance; sale of original seeds to farmers on late payment Close partnership between stakeholders: Seed selection station provides technical assistance, buys products; farmers strictly follow commitments written in contracts Farmers have highly intensive farming experiences. Rice seeds have stable price Cassava cash crop in Xy- Quang Tri Since 2003 Processed into starch for export as raw material; farmers practice extensive farming Concentrated (Enterprise signs contracts directly with farmers). Training; support of new seed model, NPK fertilizer; building farmers‘ group Two-way sale of goods Main crop generating income in areas where rice cannot be grown. Factory purchases products; registered harvests as scheduled; support in means of transport; Purchase price is made public Cassava price is unstable, fluctuating abnormally Cotton in Cu Hue- Dak Lak Since 2005 Finished cotton products for home consumption; requirement for highly intensive farming Concentrated (Enterprise signs contracts directly with farmers). Technical assistance; advance seeds and fertilizer The price of cotton is stable in recent years Sugar canes in Phuoc Dai-Ninh Thuan Since 2009 Processed into sugar for home consumption; requirement for highly intensive farming Concentrated (Enterprise signs contracts directly with farmers). Technical assistance; advance seeds, fertilizer Clear commitments between enterprise and farmers in purchase of products Make use of newly reclaimed land which cannot grow wet rice. Generate stable income for farmers
Page 3: PARTICIPATORY POVERTY MONITORING IN
Page 7: PREFACE 1 7 In early 2007, Viet Nam
Page 10 and 11: ABBREVIATIONS AND TERMS 10 ActionAi
Page 12 and 13: 12 EXECUTIVE SUMMARY The last five
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Page 23: Part 1 Poverty Trends and Key Theme
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Part 3 Toward Sustainable Rural Pov
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