The Survival of Small-scale Agricultural Producers in Asia, particularly Vietnam: General Issues Illustrated by Vietnam's Agricultural Sector, especially its Pig Production

Economic growth in more developed countries has resulted in farms increasing their scale of production and becoming more specialized in their production. The sizes of farms have tended to increase, agricultural production has become more capital-intensive, and the percentage of the workforce employed in agriculture has shown a falling trend. This process has been brought about by the operation of market systems and has reduced the number of small-scale agricultural producers. Asia still has a huge number of small-scale agricultural producers. As Asian countries experience economic growth and as market systems become more established in Asia, the survival of Asia’s small-scale agricultural producers is likely to be threatened. Since these producers are poor, this is of concern to several international aid agencies. On the other hand, some Asian governments (such as Vietnam’s) want to encourage larger scale agricultural production units. This article presents arguments for and against government strategies to promote large-scale agricultural units in emerging economies and presents an economic theory that models agricultural supply in emerging economics as being dualistic in nature. It provides information about the predominance of small-scale units in agricultural production in Vietnam, particularly in pig production, and assesses policies proposed for by Vietnam’s Government for increasing the size of units producing pigs.