IDEAS home Printed from
   My bibliography  Save this paper

Impacts of Rising Food Prices on Poverty and Welfare in Vietnam


  • Linh Vu Hoang

    (Center for Agricultural Policy, Institute of Policy and Strategy for Agriculture and Rural Development)

  • Paul Glewwe

    (Professor, Department of Applied Economics, University of Minnesota)


This paper examines the impacts of rising food prices on poverty and welfare in Vietnam. Increases in food prices raise the real incomes of those selling food, but reduce the welfare of net food purchasers. Overall, the net impact of higher food prices on an average Vietnamese household's welfare is positive. However, the benefits and costs are not spread evenly across the population. A majority of the population would be worse off from increases in food prices. More specifically, a uniform increase in both food consumer and producer prices would reduce the welfare of 56 percent of Vietnamese households. Similarly, a uniform increase in the price of rice would reduce the welfare of about 54 percent of rural households and about 92 percent of urban households. The reason why average household welfare increases is that the average welfare loss of the households whose welfare declines (net purchasers) is smaller than the average welfare gain of the households whose welfare increases (net sellers). A relatively small increase in food prices reduces poverty rate slightly because poorer households in Vietnam tend to be net sellers. However, a large food price increase, for example a 50 percent increase, may increase the poverty rate.

Suggested Citation

  • Linh Vu Hoang & Paul Glewwe, 2009. "Impacts of Rising Food Prices on Poverty and Welfare in Vietnam," Working Papers 13, Development and Policies Research Center (DEPOCEN), Vietnam.
  • Handle: RePEc:dpc:wpaper:1309

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. von Braun, Joachim, 2008. "Food and financial crises: Implications for agriculture and the poor," Food policy reports 20, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vincenzo Candila & Salvatore Farace, 2018. "On the Volatility Spillover between Agricultural Commodities and Latin American Stock Markets," Risks, MDPI, vol. 6(4), pages 1-16, October.
    2. Gbadebo Oladosu & Siwa Msangi, 2013. "Biofuel-Food Market Interactions: A Review of Modeling Approaches and Findings," Agriculture, MDPI, vol. 3(1), pages 1-19, February.
    3. repec:ilo:ilowps:433121 is not listed on IDEAS
    4. Mohajan, Haradhan, 2013. "Global food price hike is a burden to the poor," MPRA Paper 51822, University Library of Munich, Germany, revised 05 Nov 2013.
    5. -, 2009. "The outlook for agriculture and rural development in the Americas: a perspective on Latin America and the Caribbean, 2009," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1379 edited by Iica.
    6. [WEF] World Economic Forum, 2016. "The Global Risks Report 2016: 11th Edition," Working Papers id:10737, eSocialSciences.
    7. Simla Tokgoz & Wei Zhang & Siwa Msangi & Prapti Bhandary, 2012. "Biofuels and the Future of Food: Competition and Complementarities," Agriculture, MDPI, vol. 2(4), pages 1-22, December.
    8. López-Lozano, Raúl & Baruth, Bettina, 2019. "An evaluation framework to build a cost-efficient crop monitoring system. Experiences from the extension of the European crop monitoring system," Agricultural Systems, Elsevier, vol. 168(C), pages 231-246.
    9. Pham Van Ha & Hoa Thi Minh Nguyen & Tom Kompas & Tuong Nhu Che & Bui Trinh, 2015. "Rice Production, Trade and the Poor: Regional Effects of Rice Export Policy on Households in Vietnam," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 280-307, June.
    10. Nzuma, Jonathan Makau, 2013. "The Political Economy of Food Price Policy: The Case of Kenya," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).
    11. Mason, Nicole M. & Jayne, T.S. & Chapoto, Antony & Donovan, Cynthia, 2011. "Putting the 2007/2008 global food crisis in longer-term perspective: Trends in staple food affordability in urban Zambia and Kenya," Food Policy, Elsevier, vol. 36(3), pages 350-367, June.
    12. Michael Herrmann, 2009. "Food Security And Agricultural Development In Times Of High Commodity Prices," UNCTAD Discussion Papers 196, United Nations Conference on Trade and Development.
    13. Jonathan Makau Nzuma, 2013. "The Political Economy of Food Price Policy: the Case of Kenya," WIDER Working Paper Series wp-2013-026, World Institute for Development Economic Research (UNU-WIDER).
    14. Independent Evaluation Group, 2011. "Growth and Productivity in Agriculture and Agribusiness : Evaluative Lessons from World Bank Group Experience," World Bank Publications - Books, The World Bank Group, number 2279, December.
    15. Riley Post & Darren Hudson & Donna Mitchell & Patrick Bell & Arie Perliger & Ryan Williams, 2016. "Rethinking the Water-Food-Climate Nexus and Conflict: An Opportunity Cost Approach," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(4), pages 563-577.
    16. Gentilini, Ugo & Omamo, Steven Were, 2011. "Social protection 2.0: Exploring issues, evidence and debates in a globalizing world," Food Policy, Elsevier, vol. 36(3), pages 329-340, June.
    17. Johnston, Robyn M. & Hoanh, Chu Thai & Lacombe, Guillaume & Noble, Andrew D. & Smakhtin, Vladimir & Suhardiman, Diana & Kam, Suan Pheng & Choo, P. S, 2009. "Scoping study on natural resources and climate change in Southeast Asia with a focus on agriculture. Final report," IWMI Research Reports H042414, International Water Management Institute.
    18. Brian D. Wright, 2012. "International Grain Reserves And Other Instruments to Address Volatility in Grain Markets," The World Bank Research Observer, World Bank Group, vol. 27(2), pages 222-260, August.
    19. Abubakari, Mohammed & Twum, Kwaku Owusu & Asokwah, Gertrude Amissah, 2020. "From conflict to cooperation: The trajectories of large scale land investments on land conflict reversal in Ghana," Land Use Policy, Elsevier, vol. 94(C).
    20. Giorgia Giovannetti & Elisa Ticci, 2013. "Foreign Direct Investment in Sub-Saharan Africa: Drivers and the Challenge of the Land-Energy Nexus," Working Papers - Economics wp2013_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    21. Yamauchi, Futoshi & Dewina, Reno, 2012. "Risks and spatial connectivity evidence from food price crisis in rural Indonesia," Food Policy, Elsevier, vol. 37(4), pages 383-389.

    More about this item


    Vietnam poverty rate;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dpc:wpaper:1309. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Doan Quang Hung (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.