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Productivity, Net Returns and Efficiency: Land and Market Reform in Vietnamese Rice Production

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  • Tom Kompas
  • Tuong Nhu Che
  • Ha Quang Nguyen
  • Hoa Thi Minh Nguyen

Abstract

Extensive land and market reform in Vietnam has resulted in dramatic increases in rice output over the past thirty years. The land and market reforms in agriculture were pervasive, moving the system of rice production from commune-based public ownership and control to one with effective private property rights over land and Farm assets, competitive domestic markets and individual decision making over a wide range of agricultural activities. The effect of this reform period and beyond is detailed with measures of total factor productivity (TFP), terms of trade and net returns in rice production in Vietnam from 1985 to 2006. Results show that TFP rises considerably in the major rice growing areas (the Mekong and Red River Deltaareas) during the early years of reform, and beyond, but also that there is clear evidence of a productivity `slow-down' since 2000. The differences over time and by region speak directly to existing land use regulations and practices, suggesting calls for further land and market reform. To illustrate this, additional frontier and efficiency model estimates detail the effects of remaining institutional and policy constraints, including existing restrictions on land consolidation and conversion and poorly developed markets for land and capital. Estimates show that larger and less land-fragmented farms, farms in the major rice growing areas, and those farms that are better irrigated, have a greater proportion of capital per unit of cultivated land, a clear property right or land use certificate and access to agricultural extension services are more efficient.

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File URL: https://crawford.anu.edu.au/degrees/idec/working_papers/IDEC09-02.pdf
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Bibliographic Info

Paper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec09-02.

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Length: 38 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:idc:wpaper:idec09-02

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  1. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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Cited by:
  1. Brennan, Donna C. & Petersen, Elizabeth H. & Que, Nguyen Ngoc & Vanzetti, David, 2012. "Rural-Urban Migration and Vietnamese Agriculture," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124405, Australian Agricultural and Resource Economics Society.
  2. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
  3. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57643, University Library of Munich, Germany.

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