Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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Participatory poverty monitoring in rural communities in Viet Nam 74 TABLE 2.11. Percent of households without non-agricultural income sources, 2007-2011 (%) Commune 2007 2011 Thuan Hoa 56 33 Ban Lien 67 67 Thanh Xuong 15 19 Luong Minh 54 38 Duc Huong 35 28 Xy 37 30 Cu Hue 29 46 Phuoc Dai 22 24 Phuoc Thanh 28 28 Thuan Hoa 12 7 Average 36 32 SOURCE: Household interviews None of the twenty surveyed villages is strong in food processing, small industry or handicrafts. Some activities such as forging metal, embroidery and weaving are only for self-consumption. Non-agricultural income is mainly from wages, allowances, casual jobs and migrant work (see Section 5 “Labour mobility and gender impacts “). Farming and the rural economy has been slow to restructure in mountainous areas. For households engaged primarily in agriculture the chosen farming model, scale of production, level of investment in intensive farming and application of improved techniques determines the income gap between households. Most residents in remote mountainous sites are still dependent on upland, hill side farming, which produces only one crop a year and is subject to significant risk. “Crop rotation”, “inter-cropping”, and “crop expansion” are techniques used by ethnic minorities to diversify incomes and manage risk. However, increasing pressure on the land has reduced the length of time land is left fallow. In delta communes such as Thanh Xuong-Dien Bien, Cu Hue-Dak Lak and Thuan Hoa-Tra Vinh, people have better land, capital, market information and risk coping capacities. Many combine rice, maize, vegetables, subsidiary crops and shortterm and long-term industrial crops. Investments in intensive farming have increased the number of crops to 2-3 a year. Access to markets Access to markets has improved, but differences remain between surveyed sites. The proportion of households who sell no products and buy no agricultural materials has declined slightly in the last five years (Table 2.12).
Five-year Synthesis Report Part 2: Challenges to Rural Poverty Reduction in Viet Nam TABLE 2.12. Percent of households selling no products and buying no materials, 2007-2011 75 Commune Selling no products in the last 12 months (%) Buying no agricultural materials in the last 12 months (%) 2007 2011 2007 2011 Thuan Hoa 42 17 10 2 Ban Lien 9 26 20 17 Thanh Xuong 48 7 17 0 Luong Minh 96 89 93 89 Duc Huong 22 8 10 8 Xy 26 9 98 98 Cu Hue 7 15 7 20 Phuoc Dai 51 33 56 58 Phuoc Thanh 44 43 85 89 Thuan Hoa 52 48 50 41 Average 40 30 45 42 SOURCE: Household interviews Improvements in infrastructure, information and communication has improved market access for many people. New markets in Thuan Hoa-Ha Giang (2008), Ban Lien-Lao Cai (2008) and along the road from Ky Son district through Cham Puong, Luong Minh-Nghe An (2010) has provided people with the opportunity to buy and sell produce. However, local residents in remote mountainous ethnic minority areas participate less in the market than Kinh in lowland areas, as they still rely on traditional upland farming for domestic consumption and do not use commercial supplies. In Luong Minh-Nghe An and Phuoc Thanh-Ninh Thuan, the proportion of people with access to markets is the lowest, and poverty incidence the highest. The capacity to engage in market transactions with few intermediaries leads to increased incomes. In lowland communes, with favourable transport roads, people have more choices for selling agricultural produce or purchasing agricultural supplies. In Cu Hue-Dak Lak, people can sell agricultural produce (hybrid corn, coffee and pepper) directly to agents or traders. They can also buy agricultural supplies directly from private sales agent networks. In remote communes, local shops play a very important role. People can borrow rice, seeds, fertilizer and other necessities for home consumption. They can even borrow money to attend weddings and funerals and to pay children’s school fees. Although repayment is often in kind, interest rates tend to be high (up to 3-4%/month). The Government no longer supports households with transportation or price subsidies, but, since 2010, provides cash or kind of 80,000 VND per person per year in Category II communes and 100,000 VND per person per year in Category III communes (Decision 102). Most communes at the monitoring points apply for in-kind support, based on the stated needs of poor households. However, the system has had some difficulties: as funds were not disbursed in time the costs of seeds increased as a result of inflation and seeds were provided too late for planting. In a number of instances prices for agricultural output rose slower than inputs, reducing farmers’ purchasing power (see Section 4 “Coping with Price Volatility”).
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PARTICIPATORY POVERTY MONITORING IN
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PREFACE 1 7 In early 2007, Viet Nam
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ABBREVIATIONS AND TERMS 10 ActionAi
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12 EXECUTIVE SUMMARY The last five
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14 and improve monitoring and evalu
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16 TABLE 1. The monitoring points C
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18 transparency, and accountability
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20 TABLE 2. Characteristics of the
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Participatory poverty monitoring in
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Participatory poverty monitoring in
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