Productive Efficiency of Crop Farms in Viet Nam: A DEA with a Smooth Bootstrap Application

Rice and maize are the two most important annual crops in Viet Nam. Rice production is sufficient for self-consumption and exportation, whereas maize production is insufficient and must be imported because of the growing feed industry. In Son La, the largest area in the Northwest with the greatest production of maize, maize is cultivated continuously all year, whereas paddy rice is cultivated mostly in the spring. To our knowledge, this article is the first study to estimate farm-level technical and scale efficiencies and to identify the factors influencing them. This study first applied a standard and smooth bootstrap DEA method to estimate the technical and scale efficiencies, then used a Tobit regression method to identify factors influencing these efficiencies among farms. The results showed that the opportunity for both technical and scale inefficiencies of maize and rice crops is insignificant. Findings from the second stage indicated that the age of the head of household, the numbers of family, the national electricity source, the distance to the nearest market, and the access to credit, extension services and milling machines are the main factors affecting the technical and scale efficiencies of rice and maize crops. The findings suggest continuing improvement of management, co-operation in cultivation, crop diversity and optimal use rice plots. The results also recommend expanding the national electricity source, emphasizing policies for adjusting customs and knowledge, using credit in appropriate ways and continuing to enhance extension services.