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The economics of land fragmentation in the north of Vietnam

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  • Pham Van Hung
  • T. Gordon MacAulay
  • Sally P. Marsh

Abstract

Land fragmentation, where a single farm has a number of parcels of land, is a common feature of agriculture in many countries, especially in developing countries. In Vietnam, land fragmentation is common, especially in the north. For the whole country, there are about 75 million parcels of land, an average of seven to eight plots per farm household. Such fragmentation can be seen to have negative and positive benefits for farm households and the community generally. Comparative statics analysis and analysis of survey data have led to the conclusion that small-sized farms are likely to be more fragmented, and that fragmentation had a negative impact on crop productivity and increased family labour use and other money expenses. Policies which allow the appropriate opportunity cost of labour to be reflected at the farm level may provide appropriate incentives to trigger farm size change and land consolidation. Policies which tip the benefits in favour of fewer and larger plots, such as strong and effective research and development, an active extension system and strong administrative management, may also lead to land consolidation. Copyright 2007 The Authors Journal Compilation 2007 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishers Ltd .

Suggested Citation

  • Pham Van Hung & T. Gordon MacAulay & Sally P. Marsh, 2007. "The economics of land fragmentation in the north of Vietnam ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 195-211, June.
  • Handle: RePEc:bla:ajarec:v:51:y:2007:i:2:p:195-211
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    References listed on IDEAS

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    1. World Bank, 2002. "Vietnam - Delivering on Its Promise : Development Report 2003," World Bank Publications - Reports 15331, The World Bank Group.
    2. MacAulay, T. Gordon & Hertzler, Greg, 2000. "Modelling Farm Households in a Spatial Context: Vietnamese Agriculture," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123701, Australian Agricultural and Resource Economics Society.
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