growing a better future in viet nam: expanding rights, voices and choices for small-scale farmers

7/31/2019 Growing a Better Future in Viet Nam: Expanding Rights, Voices and Choices for Small-scale Farmers

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GrowinG a

better futureExpanding rights, voices and choices for small-scale farmers in Viet Nam

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Authors: Bert Maerten and Le Nguyet Minh

Acknowledgement

The development of the report was a collaborative effort,involving Oxfam staff and partner organizations. Specialthanks are extended to Dao The Anh, Dang Kim Son,Dang Hung Vo, Steven Jaffee, Vu Quoc Huy and Truong

Quoc Can. Many colleagues contributed with extensivecomments and inputs to the drafts of the report. Specialmention should be made of Mark Fried, Dang Bao Nguyet,Nguyen Thi Hoang Yen, Pham Giang Linh, Luong DinhLan, Vu Thi Quynh Hoa, Nguyen Thu Huong, NguyenThanh Ha, Teresa Cavero, Andy Baker, Ingrid van deVelpen, Robin aus der Beek and Anna Coryndon. JamesPainter made specic written contribution to the report.

Production of the report was managed by Nguyen ThiPhuong Dung.

The text was edited by Tara Burke.

The report development was coordinated by Le NguyetMinh and Dang Bao Nguyet.

Oxfam October 2012

This report and information about the GROW campaignare available at www.oxfam.org/grow.

Oxfam is an international confederation of 17organizations networked together in 92 countries,as part of a global movement for change, to build afuture free from the injustice of poverty. In Viet Nam,

Oxfam is recognized as one of the leading internationalnon-government organizations, especially in ruraldevelopment, disaster risk reduction and humanitarianresponse, civil society development, ethnic minoritiesand womens empowerment. www.oxfam.org/vietnam.


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01Growing a better future

Chapter 1: Introduction01

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ContentsAcknowledgement ................................................................iiList of gure and boxes.....................................................02Abbreviations ...................................................................... 02Foreword.............................................................................. 051 Introduction ..................................................................... 072 A system at breaking point ............................................ 11

2.1. The age of uncertainty and the challenges ahead .122.2. The challenge of sustainable production .............14

Depletion of natural resources and unsustainablepractices ................................................................. 14Change the focus of investment .........................15Food security and xed rice production targets 17Access to markets .................................................. 17

2.3. Equity challenge ........................................................19The scandal of hunger ......................................... 19Exclusive prosperity a threat to pro-poorgrowth ...................................................................... 19

2.4. Resilience challenge ................................................. 222.5. Time to rebuild .......................................................... 25

3 The new prosperity ......................................................... 273.1. Harnessing full potential ..............................................28

Role of small-scale farmers in the modernizationagenda .................................................................... 30Investing in small-scale farmers .........................31

3.2. Building a new agricultural future ..............................32Promoting on-farm and off-farm diversication 32

3.3. Building a new ecological future ................................34

Grassroots adaptation .......................................... 363.4. Ensuring equitable transition .....................................37

Equitable access and control over land .............. 383.5. Raising voices and representation ............................39Mechanisms for consultation, monitoringand redress ............................................................. 39Community-based initiatives and organization .. 40

4 Conclusions and recommendations ............................. 43List of references ............................................................... 46Images/photo credit/caption ........................................... 48

List of gure and boxes

Figure 1: Growth in income per capita by income groups,

2004 - 2010 ......................................................... 21Box 1: Please dont cultivate crops on the back of usfarmer ...................................................................... 12

Box 2: Four myths about small-scale farmers ................ 29Box 3: Extending choices for better income generation 30Box 4: Households gradually accumulating from livestock .33Box 5: Have support, can do! ............................................34Box 6: Farmer-led innovation and adaptation Growing

more from less ........................................................35Box 7: Community based disaster risk management

(CBDRM) .................................................................... 36Box 8: Promoting womens economic leadership ...........37Box 9: Cash transfer for development .............................38

Box 10: Community Development Funds .........................40Box 11: Voice up ................................................................. 40

Abbreviations

AAV ActionAid VietnamCBDRM Community-based disaster risk

management

CDF Community Development FundCIDA Canadian International Development

AgencyEU European UnionFAO Food and Agriculture Organization of

the United NationsFDI Foreign Direct InvestmentGDP Gross domestic productGoV Government of VietnamGSO General Statistics OfceIRC Indochina Research and ConsultingINGO International non-government

organizationMARD Ministry of Agriculture and Rural

DevelopmentMCD Centre for Marine Conservation and

DevelopmentMoLISA Ministry of Labour Invalids and Social

AffairsMPI Ministry of Planning and InvestmentNGO Non-government organizationNew Rural Areas The National Targeted Program on New

Rural Areas period 2010 2020PPP Peoples purchasing power

SEDP Socio-Economic Development PlanSRI System of rice intensicationTam-Nong Resolution No. 26-NQ/TWUNICEF United Nations Childrens FundUNIFEM United Nations Development Fund for

WomenUNDP United Nations Development ProgramVHLSS Vietnam Household Living Standard

SurveyVINACHEM Vietnam National Chemical GroupVINAFOOD 1 The Vietnam Northern Food CorporationVINAFOOD 2 The Vietnam Southern Food CorporationVND Vietnamese DongWB World Bank


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Chapter 1: Introduction


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Foreword

ForewordRooted in real stories and in-depth analysis, Growinga better future looks at both the achievements and

constraints of socio-economic development in Viet Nam.It focuses on the importance of safeguarding vulnerablecommunities, particularly poor people, small-scalefarmers, women and ethnic minorities.

The joint efforts of the Vietnamese people, thegovernment and development organizations haveachieved remarkable socio-economic growth in VietNam. However, this broad-based growth has stronglyrelied on the exploitation of natural resources andinvestment in labor and nancial incentives. Today, thecountry has moved into a new phase of growth thatrequires a shift of approach that incorporates quality,

efciency and sustainability both in terms of theeconomy and the environment. For this reason, Viet Namhas set itself a goal: to renovate its development modeland to restructure the economy.

This report is being published at a critical point, whenViet Nam is in a transitional stage of development. Theglobal economic recession has had a negative impacton the lives of many people who are already vulnerable.This is a time when the country faces many challenges,exacerbated by the global economic recession and anunstable macro-economy.

Growing a better future highlights the wide range of

difculties faced by vulnerable people in Viet Nam.These include the depletion of natural resources, limitedland, poor access to markets, low family incomes,malnutrition, extreme climate change and price hikes.Ethnic minorities, women and people living in ruralareas are at a particular disadvantage. Many of thesedifculties are to some degree the result of a period ofrapid economic growth in Viet Nam driven by inequitableand unsustainable models that have failed to increasethe resilience of the countrys people.

In order to take advantage of the opportunities offeredby economic growth, Viet Nam has had to deal with theonset of urbanization, industrialization, marketizationand globalization. On top of this, poor people,particularly small-scale farmers, have faced an increasein crop and animal diseases; the depletion of forestsand natural resources and a decline in ecologicaldiversity. Consequently, any rescue measures and policyadjustments issued by the government have had littleimpact on the countrys most vulnerable people.

Viet Nams small-scale farmers have the potentialto deliver great benets to the country if they aresupported to practice environment-friendly agriculture

and if they are given a stronger voice in policy-making.The Tam-Nong Resolution (Resolution No. 26 onagriculture, farmers and rural areas) of the CommunistParty and the plans to build the agriculture sectorconcurs with this aim.

In the past, environment-friendly methods of reducinginputs and increasing yields have been trialedsuccessfully throughout Viet Nam. For example,planting owers at the edge of paddy elds has beenshown to encourage bees and other benecial insectlife and reduce unwelcome pests. Other models that

aim to increase the just for small scale farmers, suchas land accumulation movement, great rice eldmodel have created opportunities for small scalefarmers to participate in large scale production thosemodels have been replicated and expanded in manylocalities. Those successful stories, practical policyrecommendations and solutions presented by the reporthave proved that positive changes can take place byinternal strength of Vietnam and its people.

Even during hard times, the government has aimedto increase choices and opportunities that enablevulnerable groups to benet from Viet Nams

development. This has included protecting small-scale farmers engaged in animal husbandry as well asdeveloping large-scale livestock farms. However, moreneeds to be done.

Viet Nam has achieved a great deal in terms ofdevelopment, but there are enormous challenges ahead.This report recommends ve key points of focus:

to ght malnutrition and poverty;

to make the development process more inclusive toeveryone;

to increase investment in small scale farmers

to improve land policies; and

to increase the strength and participation of farmersthrough collective voluntary associations.

This is in line both with the most effective developmentmodels and with the governments aims. To put itinto practice will require the greatest joint efforts ofeveryone involved.

The report reects how Oxfam and other developmentpartners play a determined and active role in Viet Namsdevelopment processes. The strength and enthusiasm

of organizations like Oxfam is key in supporting thesuccessful and sustainable establishment anddevelopment of new policies at the grassroots level.These organizations can also help create a bridgeto enable communication, information-sharingand feedback between the Vietnamese people, thegovernment and international organizations.

I congratulate Oxfam in the production of Growing abetter future. I am honored to present this report.

ng Kim SnGeneral Director

Institute for Policy and Strategy of Agriculture and RuralDevelopment


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1

introduction


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Life has improved over the last decade for Mrs. Hoasfamily, who live in Viet Nams central province of Ha Tinh,because of their efforts to diversify their livelihoods.Hoa and her husband Nghia were almost empty-handedwhen they migrated to Duc Huong commune in 2003because their parents were poor. They were the last

family to have electricity in Duc Huong as they could notafford to pay for the connection wires. For four monthsof the year they couldnt grow enough or buy food,so Hoa and her four children used to skip breakfast.However, things started to change. In 2010, newopportunities opened up. Nghia managed to get a jobas a builder; the family beneted from the governmentshousing support program; their investment in orangetrees started to return an income and the governmentsland consolidation policy meant that the size of theirrice eld increased. Now they live on the combinedincome from their rice eld, orange and lemon grove,cow, dogs and chickens and Nghias wages (picturebellow).

Stories like this can be found across Viet Nam. Manypeople speak of an era of new opportunities andprosperity, albeit achieved through backbreaking laborin the paddy elds; on hot and noisy factory oors; or insmall closed rooms or on street corners, trading producefor the local market. At a time when global crises pre-

occupy societies worldwide, a sense of aspiration isreected in surveys with Vietnamese people scoringconsistently as one of the most optimistic in the regionand the world1.

Viet Nam has had an enviable record of reducing hungerand poverty over the past 20 years. Poverty levelsreduced by more than half between 1993 and 2010according to a proposed General Statistics Ofce/WorldBank poverty line. Viet Nams historical growth patternshave been remarkably pro-poor: growth averaged 6.1 percent a year between 1993 and 2008, and poverty fell byan average of 2.9 percentage points a year. This remains

a remarkable achievement despite the fact that thepoverty reduction rate has slowed down in recent yearswith one in ve people currently living poverty, accordingto the same poverty line2.

1 LeParisien.fr, Viet Nam is Worlds most optimistic (3 January 2011)

2 Based on the proposed new GSO-WB poverty line of VND 653,000person/month ($2.24 person/day 2005 PPP) and the 2010 Viet NamHousehold Living Standards Survey (VHLSS), the poverty rate in VietNam was 20.7 percent in 2010 twenty seven percent and six percent in rural and urban areas, respectively; see World Bank, 2012a


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Yet, the struggle to overcome poverty, including theght to end hunger and gender injustice for familieslike Hoas, is not complete. In some ways it has becomeeven more challenging.

Like many others, Nghia and Hoa are not convinced

that they have come out of poverty. They are currentlyregistered on the poor household list (a list ofhouseholds that has been selected to benet fromsocial security and other support policies). If theirincreased income means they get taken off it, theywill lose government benets like health insuranceand subsidized electricity and get plunged back intopoverty. The expense that worries them most is theextra payment they are determined to keep up for theirchildrens education. However, their income is notalways secure. Orange trees are prone to poor harvestsif there is too much rain and animals are always atrisk of diseases. Nghias additional income of 100,000

dong a day (approximately $4.5) means he has to stayaway longer. He can only return home every 20-30days, leaving his wife to take care of the children andeverything else.

It is an injustice that millions of farmer householdscontinue to live a precarious existence, despite theirrole as the very drivers of agricultural growth, ensuringViet Nams place amongst the top agricultural cropexporters. While increased industrialization andeconomic integration provides farmers with additionalopportunities for jobs and incomes, it also makes themvulnerable to multiple risks and shocks, particularlythose who depend on the informal sector. Inequalityin incomes and opportunities some consideredillegitimate is rising. This is exacerbated by continuingdisparities in human development between urban andrural areas, as well as widening disparities within ruralareas and across different socio-economic groups.

As it becomes a middle-income country Viet Namrequires new approaches in its poverty reductionstrategies in order to build a new future. As thegovernment looks at restructuring the agriculturesector, it is critical that poor and marginalized farmers

are kept at the heart of the decision-making processto ensure that growth is sustainable, equitable andresilient.

Growing a better future

The challenge for Viet Nam today is to seize theopportunity for change and set the course towards anew prosperity where each and every citizen enjoys therights and resources needed for leading lives of dignity,

opportunity, and fulllment.To overcome enduring and emerging developmentchallenges in Viet Nam, a broader knowledge andstronger determination is needed to uproot povertyand pursue social justice. The causes and drivers ofpoverty and injustice are diverse, but are often linkedto peoples inability to access and take advantage ofopportunities and to shape and benet from publicpolicy.

To realize the nations full potential and aspirations,it is critical that the people have a stronger voice

and that poverty reduction strategies are carefullyconsidered and targeted. More inclusive relationshipsand interactions between the state, private sector andpeople are imperative to break the cycles of chronicpoverty.

This report will highlight three fundamental challenges:sustainable production, equity and resilience. Oxfambelieves that overcoming these challenges is a vital partof making Viet Nams new prosperity a lasting reality forall, including those who have so far been excluded fromit. We are condent that, together, we can grow a betterfuture.

We need to address the question of globalhunger not as one of production only, butalso as one of marginalization, deepeninginequalities, and social injustice. We livein a world in which we produce more foodthan ever before, and in which the hungryhave never been as many.

Olivier de Schutter, Special Rapporteur on the Right toFood at the FAO Conference, November 2009


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Chapter 2: A system at breaking point

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2.1. The age

of uncertaintyand thechallengesahead

Despite Viet Nams impressive announcements ofrecord-breaking production outputs and trade volumes,farmers like Mr. Lam (See Box 1) are anxious and worriedabout the farming business and their future.

Box 1: Please dont cultivate crops onthe back of us farmer

Farming is unstable. Farmers have to cope with thechanges in crop production plans all the time; one timewe might dig a shing pond, another time plant rice

and grow corn but with hardly any good results. Themajority of our production costs are spent on credit.We are unable to stock rice and wait to sell until theprice rises. We are in chronic debt. Instead of repayingour loans we can only renew the loan to prepare forthe next crop. I feel like a child standing in front of abanquet that I am allowed to look at but not touch.

Extracted from farmer Le Van Lams letter to PrimeMinister3.

3 Giang, M., 2008

Degraded farmland, more pests and diseases, volatilemarket prices, greater risk of adverse weather due toa changing climate, and loss of land without propercompensation add layers of stress for people whoselivelihood is already precarious. Competition for land,water and forests has intensied and the benetsearned from these resources are often not sharedin an equitable manner. For many, poverty and evendestitution are only one shock away.

Economic growth lately has had less impact on povertyreduction compared to the earlier periods. Many people

are near-poor or transient poor living just above thepoverty line and dipping in and out of poverty. Ofcialstatistics suggest there were some 1.5 million near-poorhouseholds in 2010 in addition to the 2.5 million poorhouseholds4. Many poor people are now harder to reachand face the tough challenges of isolation, social andeconomic exclusion, limited assets and access to creditand markets, low levels of education and poor healthstatus.

4 Poor: 2,580,885 households and near-poor: 1,530,295 householdsReview of the poor and near-poor household of 2011,MoLISA 2011;Near-poor households are households having monthly income perhead from VND 401,000 VND 520,000 for rural households andVND 501,000 VND 650,000 for urban households. GoV 2010


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Poverty continues to be a predominantly ruralphenomenon with 90 per cent of Viet Nams poor peopleliving in rural areas5. In 2010, the poverty level was 27per cent in rural areas compared to 6 per cent in urbanconurbations. It is ironic that in the countryside, peopleare surrounded by the means to produce food, and yetgo without.

5 Nguyen, T.K.N., 2012

Agricultural growth is yet sustainableand yet to develop its full potential Environment is increasingly polluted. Thecapacity to adapt and cope with naturaldisasters is limited. The well-being ofrural residents is still low; the povertyrate remains high, especially of ethnicminorities in remote and difcult areas.There remain gaps between rich and poor,

between urban and rural areas, betweenkey regions and emerging social tensions6

Resolution No. 26 - NQ/TW, p.1

6 Resolution No.26-NQ/TW or Tam Nong Resolution dated 05/08/2008

of the 7th Conference of the Central Committee of the CommunistParty X about agriculture, farmers, rural areas. The Resolutionconrmed the important role of agriculture, farmers and rural areasin the industrialization and modernization and sustainable socio-economic development of Vietnam.


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2.2. The

challenge ofsustainableproduction

Depletion of natural resources andunsustainable practices

Hidden behind Viet Nams success stories has been

the intense exploitation of natural resources throughan increase in cropping areas and densities and everhigher use of inputs. In other words, more output hascome from more and more inputs7. This more is betterapproach has led to excessive use of seed, fertilizer,agrochemicals and water.

Viet Nam (after India and Brazil) is the third largestphosphate importing country8 and national fertilizerconsumption has risen sharply in recent years. It usednearly nine million tons of fertilizers in 2010 - almostdouble the volume used ve years ago - of which riceproduction had the lions share9. The mean fertilizeruse for rice in Viet Nam is extremely high in comparisonwith other South-East Asian countries; for example, it isalmost double the use in Indonesia10.

7 MARD, 2012, p. 18 The fertilizer institute, statistic9 VINACHEM 201010 Gregory et al., 2010 cited in World Bank 2012b, p.50

As a result of this intense exploitation, Viet Nams land,water and forest resources are coming under increasingstrain. This imposes signicant costs on society whilethreatening the sustainability of the economic growth

itself. The marine resource base is deteriorating dueto overexploitation and excessive shing, habitat loss,weak coastal planning and pollution. The water supply -the lifeblood of agriculture in the Mekong river delta - isbecoming less secure. About half of Viet Nams 16 majorriver basins have experienced water shortages11. Almosttwo decades of reforestation programs have reversedthe decline in overall forest cover, but degradation ofnatural forests continues mainly because of logging andencroachment.

These unsustainable practices have increased theburden on farmers who have been affected by rising

material inputs and adverse productivity. Moreover,pressure on the already tiny parcels of land thathouseholds farm has risen due to population growth.Land conversion also needs to be addressed. Rapidconversion of agricultural land for industrial purposesand urbanization over the last two decades has led tothe loss of around 100,000 hectares every year since2001. A Communist Review report in 2011 revealed thatas many as three million Vietnamese people had beendisplaced or had their lives disrupted as a result of landconversions in the previous ve years12.

11 World Bank 2010b, p. 5512 Phan, S.M & Ha,H.N., 2011


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Change the focus of investment

These issues affect a high proportion of the population,since Vietnamese agriculture is typically small-scale. Over

nine million farmer households average landholding isless than 0.5 hectares spread over a number of plots. Itis concentrated in the northern provinces, where some85 per cent of the countrys small-scale farmers live.However, even in the Mekong Delta, which producesmore than half of the countrys rice output, the majorityof farmer households have less than two hectares ofland13. This fragmentation of the land (particularly in thenorthern provinces), among other reasons, has beena key factor in keeping farm incomes low. Raising farmincomes in the future may require land consolidationto increase productivity, but this would have to becarefully balanced with equity improvements. The

current restrictions especially on landholding, tenureand uses of land types have narrowed the choices forfarmers which discourages them from making long-terminvestments.

Land disputes, which recently became an issue ofnational public concern, are corrosive to social stabilityand have called into question the accountability of thegovernment more than any of the other social changesViet Nam is currently experiencing. Ofcial gures showthe extent of the problem: in the rst six months of2012, 90 per cent of the 5,326 complaints received bythe government related to land14. Making the processof land conversions more transparent and fairer istherefore critical. The urgency of this challenge cannotbe underestimated.

13 Jaffee, 201214 VnEconomy, 2012

Besides natural resource and tenure challenges,government policy at times poses additional limitationson poverty reduction. Investment in agriculture hasbeen insufcient. Of the state budget for investment,

the share allocated for agriculture fell from 13.8 percent in 2000 to only 6.3 per cent in 2010. Furthermore,these minimal funds have been spent largely on buildingirrigation and drainage instead of increasing farmerscapacity and resilience. Foreign Direct Investment (FDI)in agriculture has also been limited and is continuingto diminish. The sectors share of overall nationalFDI fell from 8 per cent in 2001 to just 1 per cent in201015. Government development plans, policies andbudget allocations typically give much more supportto larger farmers and commercial enterprises, whichare often state-owned. While small-scale farmers arenot exactly ignored in government policies, in reality, a

strong bias exists in favor of larger, low land-based andinput-intensive production models. Local authorities,in a quest for quick results and publicity, also tendto have a bias for large-scale projects. This meanssmall-scale farmer households still have less accessto key productive assets such as credit, technologyand market information and a continuing ambivalencetowards informal farmers organizations prevails.

15 MARD, 2012, p. 6-7


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Food security and xed rice productiontargets

When it comes to food security, access to andaffordability of food are critical. In 2011, one in vechildren suffered from stunted growth caused by

malnutrition a brutal inter-generational poverty trap16.A priority for Viet Nam needs to be ending malnutritionand food insecurity, and it should pursue this prioritywith the same vigour and determination that it hadat the launch of its Hunger Eradication and PovertyReduction Program in 1998.

For many years Viet Nams expanding rice productioncontributed to a reduction in hunger and malnutritionwithin the population, but that trend is no longerevident. In fact, fewer farmers in Mekong Delta are nowable to earn a livelihood primarily from producing rice.

This calls into question the governments target forpaddy rice production of 3.8 million hectares. Researchalso suggests that the country no longer needs sucha target to guarantee a rice surplus and that many ricefarmers would shift to other crops if they did not have togrow rice17.

The focus on modern intensive rice farming to meetxed targets requires Viet Nams agricultural sectorto run faster and faster just to standstill. Escalatingthe use of irrigation and fertilizers can only go so farand maximum potential production levels have nearlybeen reached. The scope for increasing productivity in

lowland rice production areas under irrigation is limitedwhile increasing fertilizer use offers ever diminishingreturns and serious environmental consequences.Between 40 and 50 per cent of the production costs ofexportable rice are already associated with importedinputs18. At the household level, the cost of some ofthese inputs has been a constant drain on resourcesand income, especially in the context of high pricevolatility in the last ve years19.

In the face of constrained resources and environmentalpressures, Viet Nam should consider a shift away fromrice production targets and look at achieving food

security and improved incomes for individual householdsby alternative means.

16 UNICEF, 2011, p. 617 Jaffee, 2011 and Dang Kim Son the current General Director

of the Institute of Policy and Strategy for Agriculture and Rural

Development (IPSARD) under the Ministry of Agriculture and RuralDevelopment (MARD); Speaking at IPSARD conference, Hanoi, 28June 2012 on food security policy and prosperity

18 World Bank, 2012b, p. 1719 Hong, 2012; Viet Nam News, 2012; Dao T.A., 2011

Access to markets

Small-scale farmers have struggled under thestate-led, high-input growth model which has enabledstate-owned enterprises to dominate input supply,post-harvest processing and marketing in several

sub-sectors, while private traders exercise virtualmonopolies on the provision of inputs and the sale ofoutputs in many remote areas. This contributes to highinput prices and relatively low farm-gate prices in someregions.

Certainly I would like to sell when the priceis high. However, I need the money to payoff fertilizer and rice loans. Immediatelyafter harvest the village head insists on us

paying off fertilizer loans. If we fail to do so,

the bank will charge us more

Group discussion with poor Thai men in Pa Dong village,

Dien Bien20.

During the food price crisis from 2007 to 2008 therewere widespread examples of hoarding and speculation.Small-scale rice producers gained little to nothing fromthe price rise. At the peak of the hike, the internationalprice was about triple the actual price that farmersreceived. Buyers, traders and exporters (and particularly

the two state-owned export companies, Vinafood I & II)benetted much more21.

In recent years agribusiness has expanded rapidlyin Viet Nam. The Ministry of Planning and Investment(MPI) reported that about 340 FDI projects worth $2.27billion invested in agribusiness from 2005 to 2010. Thisinvestment was concentrated in the farming, sheries,animal husbandry and food processing industries.In contrast, the number of agribusinesses has beendecreasing which suggests that market concentrationis occurring, especially as part of the state-ownedenterprise reform process22. There are indications

that this has contributed to Viet Nams boom in exportcommodities. However, terms and conditions are oftenset by the agribusinesses which can lead to unfairdeals for farmers23. Contract farming has shown mixedresults, depending on various factors including the typeof commodity produced. Worse still, the poorest farmersare often excluded from participating in and benettingfrom the new opportunities24.

20 Oxfam & ActionAid, 200821 World Bank, 2011c; Vu & Glewwe, 2011, p. 622 Oxfam, 2011c, p. 423 Oxfam, 2011c24 Nham et al., 2012


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2.3. Equitychallenge

The scandal of hunger

It is a remarkable turnaround that Viet Nam is now in

the top league of exporters of agricultural commodities,such as rice and coffee. This is a country that wasimporting rice during the 1980s and in 1993, half of thenations children suffered from stunted growth due tomalnutrition25. Yet, despite the abundance of rice (40million tons in 2010) and large exports (7 million tons) in effect providing food security to other countries hunger and malnutrition continue to blight the lives oftoo many Vietnamese people. The statistics are nevercompletely reliable, but in 2010 it was estimated that8.7 per cent of households in the rural areas were foodinsecure26. In 2011, UNICEF reported that at least onein ve children was malnourished27. Certain sectionsof the population, such as ethnic minorities, migrantworkers, artisanal shers, landless people and peopleliving in remote or disaster-affected areas remain morevulnerable to food insecurity.

However, reducing malnutrition is not just a matterof producing enough food. Out of the countrys eightregions, the Mekong Delta region, known as Viet Namsrice basket, has had the seventh worst record inreducing child malnutrition over the last decade despitean abundance of rice. In fact, this area enjoyed a 6 percent growth in rice production over the same period

and has the most diversied agricultural product basein the country. Food security therefore has had less todo with food production than a lack of access to food,sharp increases in food prices, temporary loss of incomeor livelihoods and in some cases, chronic poverty28. Inaddition, the promotion of specic commercial cropscan make farmer households more vulnerable and food-insecure. Hmong farmers in the northern mountainousregion, for example, substitute animal feed maize withthe traditional, food staple maize, compromising theirown food security29.

25 Shenggen, F., 2010, p. 926 Dao, T.A. 2010c27 UNICEF, 2011, p. 628 World Bank, 2012b, p. 1929 Dao, T.A, Trinh, V.T &Hoang, X.T. 2010

Exclusive prosperity a threat topro-poor growth

Food insecurity is one key indicator of the problem thatseveral sections of society have not beneted fromViet Nams new opportunities and prosperity. In fact, for

various reasons, they are excluded from it. Lets lookdeeper to the lives of ethnic minorities, women andmigrant workers for whom poverty can be chronic andoften transfers from generation to generation.

a) Ethnic minority people continue to fall behind. By2010 ethnic minorities accounted for nearly half of allthe poor people in Viet Nam, despite making up only 14.5per cent of the countrys population. At 66.3 per cent,the ethnic minority poverty rate was ve times higherthan the poverty rate for the Kinh majority people30. Thisis not simply a story of a region that is lagging behind.

The Central Highlands (with its high concentrationof ethnic minority communities) has experiencedagricultural and overall growth of nearly twice thenational average.

It is important to note that ethnic minorities are not ahomogeneous group and poverty rates vary signicantlyamong ethnic groups residing in the same region.Ethnicities are also internally heterogeneous and thereare frequently signicant differences in poverty ratesamong villages, even within a single commune.

During the last decade, there were obvious

improvements in the remote and mountainous areaswhere most ethnic minorities live. People took charge oftheir own development and pursued various pathwaysout of poverty, which were not dissimilar from thoseof the Kinh-majority people31. The production of cashcrops and access to markets created opportunitiesin the Central Highlands. Many ethnic minorities haveutilized these opportunities, refuting the idea thatthey lack initiative or understanding about the market.Nevertheless, the reality is that ethnic minorities haveaccess to poorer quality land and public services.In particular, restrictions on access to forest landscontinue to have an enormous impact on some ethnic

minority communities. Some government policies in poorareas have also exacerbated inequalities, since manypolicies and investments appear to offer more benetsfor migrant Kinh communities. Furthermore, in theirdealings with administration and broader society, ethnicminorities face barriers and discrimination and are oftenobjectied and portrayed as backward32.

30 World Bank, 2012a; IRC, 2011, p. 16-1731 Well-Dangs, A. 201232 World Bank, 2010a; IRC, 2011; Baulch et al., 2010


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While there is a reasonably shared view on what ethnicminority poverty looks like, a shared understanding onthe causes of that poverty is still lacking. Causes anddrivers of deep poverty are diverse and complex andlocation and context, such as access to quality landand levels of education matter. Yet large differenceshave been observed in the returns on similar contextsand sets of assets between different ethnic minoritiesand the Kinh majority33. A greater understanding of thesources of these inequalities, including patterns ofsocial exclusion, discrimination and stigma, is crucial forpublic policy and government responses to be effectiveand impactful.

b) While Viet Nam has made substantial progress inclosing some important gender gaps, fundamentalchallenges remain. Traditional gender roles anddifferentiation prevail. Womens wages are on averageabout 75 per cent of mens. Decision-making structuresat all levels are male dominated. Domestic violence andgender based violence are still widely spread at all levelsof society and both are underreported in governmentstatistics34.

33 World Bank, 2012a34 World Bank, 2011, p. 9-10 and p.38-40

Sixty-four per cent of working women in rural areas workin agriculture, compared to 53 per cent of working men.However, women have less access than men to training,and on-farm and off-farm employment35 and they areless likely to get access to credit and loans36. Similarpatterns of gender segregation by sector are foundin urban areas. Women tend to hold more vulnerable,casual and informal jobs with lower wages and worseworking conditions.

Migrant women, widows, older women, ethnicminorities and women with disabilities are particularly

disadvantaged37. For example, although working hoursare very similar, women migrants earn about 45 per centless than their male counterparts. These differencesremain even after factors such as age, education andoccupation are taken into account38.

Overcoming the systemic and corrosive discriminationagainst women persists as a key developmentchallenge.

35 Hoang, 200936 UNIFEM&CIDA, 200937 World Bank, 2011, p. 10-1138 World Bank, 2011, p. 69


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c) Viet Nam is rapidly urbanizing. Each year someone million new urban residents are reported. By2020, it is estimated that 40 per cent of Viet Namspopulation will live in urban areas39. Results of the2009 census identied 6.6 million people (7.7 per centof the population) as migrants. This excluded many

types of migration, such as short-term migration40

.Even the thousands of farmers who manage to jointhe wave of migrants to urban areas every year, stillface an uncertain future. Their rich farming skills andknowledge are not enough to survive. Their accessto basic services, stable shelter and local residenceregistration are limited and insecure. Migrants are seenand treated by policy makers and administrators as aburden rather than one of the most innovative, enduringand entrepreneurial workforces in the economy. Thereis a social stigma about being a migrant. They areoften viewed by local residents with mistrust andunease. Considering the contribution that they make tosociety in the factories, underserved, cleaning andchildcare sectors - this is an underserved exclusion anddiscrimination.

39 World Bank, 200940 MPI, 2011

A great challenge is looming. Tam NongResolution hasset a target to halve the nations farming population by2030. Effectively, some ve million farmer householdswill have to move out of agriculture. What will thefuture be like for former farmers who are unable tojoin the migration waves? To manage this change in

a sustainable way will require a signicant departurefrom the current approaches, practices and institutionalarrangements underlying the governments migrationand social protection policies41.

Viet Nam has often been praised for its inclusive growth,but in reality, income growth has favored better-offhouseholds42. Since 2004, the richest householdsincomes have increased twice as much as those ofthe poorest households nine per cent and four percent respectively. From 2004 to 2010, the richest veper cent of the population took 20.5 per cent of thenational income and spent 21.3 per cent of the national

expenditure43. In other words, income growth hasfavored better-off households (See gure 1).

41 Duong et al. 201142 World Bank, 2012a43 World Bank, 2012a, p.122

There is also a concern about the increased vulnerabilityof the poorest households, despite an overall decreasein food shortages. An Oxfam/ActionAid monitor of ruralpoverty in nine provinces from 2007 to 2011 found thatwhile there was a reduction in the number of familiesexperiencing regular food shortages, there was a

worrying trend that the families who were still goinghungry, were doing so for longer periods of time. In 2007,23 per cent of families were suffering food shortagesfor 3.3 months of the year, while in 2011, 16 per cent offamilies were suffering from food shortages, but for 4.9months of the year.

VnDong(Jan2010prices)

AnnualizedIncomGrowth

Rural Income Decile

Annualized Growth 2004 - 20102004 2010

1 2 3 4 5 6 7 8 9 10

9

8

7

6

5

4

3

2

1

0

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

Figure 1: Growth in income per capita by income groups, 2004 - 2010

Source: World Bank (2012a). Well begun, Not Yet Done: Vietnams Remarkable Progress onPoverty Reduction and the Emerging Challenges. Hanoi: World Bank, June 2012. p22


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2.4. Resilience

challenge

Our changing climate adds to the uncertainty faced byfarmers as it brings a greater risk of adverse weather.Viet Nam ranks sixth in the world among countriesthat have been most affected by such climate-relateddisasters and shocks over the last two decades44.

Besides ecological degradation, population growth,volatile market prices and competition for land fromagribusiness expansion, industry and urbanization addfurther layers of risks and shocks for farmers. And theseare all set to intensify over the coming decades. Poorand small-scale farmers will be hardest hit, especially

those who depend on environmental assets like cleanwater, fertile soils, forests and rich biodiversity.

Extreme climate, extreme fragility

At least seven out of every ten Vietnamese people areestimated to be exposed to risks from natural hazardssuch as typhoons, oods and droughts45. It is estimatedto cost the country some $1.8 billion annually46. Differenttypes of climate-related risks such as rising sea levels,oods and droughts affect different regions of Viet Namwith varying degrees of intensity.

44 Khac, K., 201245 UNDP, 2011a46 Harmeling, 2012, p. 6

Climate change poses a grave threat to yield growth.Scientists project that rice yields may decline by 7 to10 per cent for each 1C rise. If the sea level rises byone meter, over 7 per cent of the rice paddy land willbe ooded and total rice production will reduce by 12per cent. This could wipe out about ve million tons ofpaddy rice sufcient to feed approximately 22 millionAsian people for one year.

Secondly, climate change means an increase in thefrequency and severity of extreme weather events suchas heat waves, droughts and oods which can wipe out

harvests in a single stroke. Food shortage is just a oodaway, as experienced by farmers in provinces of ThanhHoa and Ha Tinh in 2011. Meanwhile, creeping, insidiouschanges in the seasons, such as longer and hotter dryperiods, shorter growing seasons, and unpredictablerainfall patterns are bewildering farmers, making itharder and harder for them to know when best to sow,cultivate, and harvest their crops47.

The climate chaos will disproportionately affect poorerhouseholds in rural they rely more on natural resourcesand climate-sensitive activities to generate an incomeand have fewer assets to cushion the effects.

47 FAO, 2004


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For all people without stable incomes, savings, accessto healthcare or social insurance, shocks from naturaldisasters or shifting seasons often force them to gowithout food, sell off assets critical to their livelihoods,or take their children out of school. Short-term copingstrategies can have long-term consequences, causinga downward spiral of deeper poverty and greatervulnerability48.

Extreme prices

Extreme weather endangers food security. Heavy

monsoon rains in October 2011 drove Viet Namsrice prices up by 30 per cent due to harvest losses,disruption of the markets and higher transport costs49.Worse, the full impact of climate change on futurefood prices is being underestimated. Food price spikeswill get worse as extreme weather caused by climatechange devastates food production50.

In 2008, as the price of rice increased, majority partsof population were net buyers of rice 55 per cent ofrural households and 92 per cent of urban households so the price increase had a detrimental effect onincomes51. Even rice farmers experienced a sharp

48 Oxfam, 200849 FAO, 201150 Oxfam, 2012c51 Oxfam & ActionAid, 2008

reduction in purchasing power because increased inputcosts offset any potential income gain. When inationpeaked in 2011, similar observations were found.

Price increases decreased purchasing power, quality oflife and exacerbated the inherent difculties of poor, lowand xed income groups. For the poor, price increasesmean no other choice but less and lower-quality foodwhich affects health, labor productivity and incomesecurity52. The current economic slowdown in Viet Namis making life even harder.

Each of us suffers in our own way...Asthings become more expensive we haveno choice but to cut down on everything.There is no way to get any extra income...

Discussion with poor women group in Lam Ha ward, Hai

Phong, June/200853.

52 Oxfam & ActionAid, 2008, 2011b; United Nations, 200853 Oxfam & ActionAid, 2008, p.59


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2.5. Time to

rebuild

As a result of all these increased pressures, Viet Namsagricultural sector needs to generate more from less.That is to say, it needs to produce safer and higherquality agricultural commodities and products, while

improving farmer and consumer welfare using fewerphysical, human and other resources. Happily, most ofthe solutions are known, and some necessary changesare already under way, led by growing numbers ofproducers, consumers, responsible businesses and civilsociety organizations. Scaling up these pilots and bestpractices, introducing and reinvigorating relevant publicpolicies and sometimes overcoming vested interests willbe the greatest challenge.

A system at breaking point is a terrible threat but alsopresents a tremendous opportunity to change course. Itis time to rebuild and generate a new prosperity in whicheveryone can have a fair share for now and in the future.


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Chapter 3: The new prosperity

3

the new

prosperity


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3.1. Harnessingfull potential

Agriculture has been an engine of economic growthand the main source of poverty reduction in VietNam. Supported by enabling policies and favorableinternational market opportunities, farmers ingenuity,industriousness and productivity has turned Viet Namfrom a food decit country into a major exporter ofagricultural commodities. In the last decade, whenViet Nam experienced a deteriorating balance of tradeand struggling industry, the agriculture sector was theeconomys savior.

The agriculture sector is still the key to sustaininggrowth and reducing poverty because it accounts forsuch a sizeable part of the Vietnamese economy andworkforce. It is the largest employer of the poorestpeople in the country. In 2010 it represented 21 per centof GDP; quarter of all exports and accounted for theemployment of 70 per cent of the working population,most of whom are poor small-scale farmers. Focusingon these farming communities is therefore vital.


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3. Aversion to risk

Some argue that small producers are

insufciently entrepreneurial and unwillingto take risks. Of course, surviving on lessthan $1.20 a day, without recourse to savingsor insurance, narrows the scope for takingrisk. The solution is to help poor farmers tobetter manage risk. For example by providingbetter weather information and data, storageinfrastructure or access to insurance. Suchinterventions can help spur innovation andunlock productive potential especially asclimate change rapidly multiplies the risks poorand small-scale farmers face.

4. Aversion to markets

A nal myth about small-scale farmers is thatthey do not respond to market opportunities.This is a misconception. While their priority isfeeding their families, this does not mean poorfarmers are unwilling to produce and providemarket surpluses. Furthermore, engagementwith markets is low because of poorinfrastructure and reluctance on the part ofprivate sector actors to accommodate small-scale farmers in value chains. (See Box 8).

These four myths do not constitute a caseagainst investing in small-scale agriculture.They are not evidence of inherent failings orinevitabilities. The real problem is that small-scale farmers have always lacked access toresources and have not been given relevantand adequate support or been provided withthe policy environment they need to ourish.These are not reasons to not invest. They arereasons to invest.

Box 2: Four myths aboutsmall-scale farmers

The case against small-scale farms oftenrelies on four key misconceptions, born of alack of familiarity with the lives of poor andsmall-scale farmers.

1. Low productivity

Selected data shows that the average yieldsfrom small farms are as little as half of theworld average. These gures fail to presentthe full picture. Small-scale farms often havelow yields because farmers use the factors ofproduction more sparingly. For example, smallfarms in Africa only use about one-eighteenthof the fertilizer that is used in India, they uselabor rather than capital, and less than veper cent of the cultivated area is irrigated.Furthermore, small farmers dont benet fromthe subsidies that many large-scale farmsget. Taking these factors into account in theproductivity calculation signicantly narrowsthe gap. So if small farmers had the inputs,irrigation, and subsidies enjoyed by largefarms, things would look very different. This is

why surveys often nd that when the focus isshifted from yields to total productivity, smallfarms are more efcient.

2. Aversion to technology and innovation

Farmers living in poverty often use simpletechnologies and old-fashioned practicessimply because appropriate technologiesfor small producers have not been a priorityfor government or the private sector. Whengiven the opportunities and resources, small-

scale farmers have proved to be capable ofadopting new technologies and improving theirresilience to various shocks. (See Box 6).


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Role of small-scale farmers in themodernization agenda

Small-scale farmers have been and should remain acrucial part of Viet Nams rural development strategy.Giving them a central place on the modernization

agenda would achieve major gains in poverty reductionand create a new agriculture sector with resilience,productivity and sustainability.

In the late 1980s Vietnamese farmer households weregiven the freedom to organize their own productionand it sparked a massive increase in production andproductivity. Market incentives, the partial liftingof restrictions on land use and diversication intocommercial and industrial crops all helped to boostagricultural production and resulted in improved foodsecurity and large-scale poverty reduction. Viet Nam

conrmed the historical and international experiencesof successfully achieving pro-poor growth by placingfarmers at the core of the development process. Growthoriginating in agriculture, in particular the small-scalefarming sector is at least twice as effective in benetingthe poorest people as growth from non-agriculturalsectors 54.

54 FAO, 2010, p. 2; Chang, 2009

Whatever mix of policies is chosen, in Oxfams view,both small-scale and industrial farming are needed tofeed the worlds growing population without depletingthe earths resources. This is particularly true for VietNam where nine million farmer households are small-scale. In many instances, small-scale farming has

proven to be as productive and often more sustainablethan large-scale, highly mechanized, and high externalinput agricultural models. In developing new strategiesfor restructuring the agricultural sector, the polarizeddebates about large versus small agriculture areunhelpful and false. Each system serves to benetdifferent population and market segments and tofunction sustainably, both need to co-exist andcomplement each other.

Restructuring Viet Nams agriculture sector requireschanges in the policy environment. Any modernizationstrategy must be people-centered, considering the

needs, priorities, interests, and challenges faced bythe men, women, boys and girls involved. It needs toformally recognize and adequately support Viet Namssmall-scale agricultural practices and systems. As such,it needs to start with, recognize and deploy the peoplesactive involvement and ability to make decisionsconcerning any plans that will affect their futures.

Box 3: Extending choices for betterincome generation

A success story of diversifying income is unfolding inthe buffer zone around the Xuan Thuy National Park,Nam Dinh province, where local organization - TheCenter for Marine Conservation and Development (MCD)- has been working with support from the EU, Oxfamand others.

The MCD model offers families living in the villagesa variety of options for diversifying their livelihoodsdepending on their particular conditions and personal

or household economic situation. Among theenvironment-friendly options on offer are new methodsof more sustainable clam cultivation, mixed gardening,earth worm rearing and organic composting. There arealso community-based ecotourism services, includinghome stay, tourist guiding and a caf, Ecolife, which isa space for environmental education and community-led business activities.

Commune leader Trinh The Thong said that themodel had successfully combined the backing fromthe commune leadership, support from an NGO, andindividual choice on the part of the producers.

Raising earthworm helps farmers to improve incomes.


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Investing in small-scale farmers

While Viet Nams agricultural sector needs to creategreater added value, quality and sustainable productionmodels, it has great economic potential. In many sub-sectors, it has important competitive advantages, bothcurrent and potential. Equally, agriculture continues toplay a role in preserving traditional cultures and socialstability. In other words, agriculture should not be seenas a shrinking sector, but rather as a lasting source ofpro-poor growth and a sector with ample potential tounlock. To do this, it is imperative to increase public andprivate investments in small-scale farming. At least 10per cent of public expenditure should go to agriculture

and small-scale farmers must be a critical part of theongoing growth strategy.

If Viet Nam is to meet the three challenges ofsustainability, equity and resilience, described inChapter 2, then investing in sustainable models ofsmall-scale production is critical. While low-input,more environment-friendly agricultural practices arenot exclusive to small-scale farmers, they are oftenwell suited to sustainable models of production,and can easily adopt these practices. Investing insmall-scale agriculture will build resilience and boostincomes, especially if investment is sensitive to gender

inequalities. In turn, this will provide scope for farmingcommunities to diversify, either in full or selectively,and move into off-farm livelihoods if they so choose.

Government policies and investment, in partnershipwith the private sector and civil society, can create the

enabling environment that extends peoples choices tolead them out of poverty and towards a new prosperity.

A modernization strategy that ignores the contributionof small-scale farmers and denies their potential andaspirations will result in cohorts of landless, joblessand hungry people. This reality must not be forgotten asViet Nam aims high in the pursuit of its modernizationagenda. It would be more benecial to help small-scalefarmers to join forces and resources rather than merelyfocus on large-scale concentrated and intensiedfarming.New Rural Areas55 should be built with and by

small-scale farmers.In particular, expanding the choices for ethnic minoritycommunities requires a diverse set of approaches,including improving maternal health and access toquality education (especially for girls); promoting andexpanding pro-poor market opportunities, and ensuringbetter access and sustainable use of natural resources,especially forests. More coherent and innovative publicpolicies, based on a respect for cultural diversity, couldinduce transformative changes. To achieve this, thevoices of ethnic minority communities need to be heard,resulting in better participation and governance.

55 This is popular name of the National Targeted Progamme on Newrural areas for the period 2010 2020 approved by the Prime Ministeron 4/6/2010. This is a further step to bring the Resolution No. 26 onagriculture, farmers and rural area to life.


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3.2. Buildinga newagricultural

future

Promoting on-farm and off-farm

diversication

Development in the 1990s was driven by on-farmdiversication, for instance into cash crops andlivestock. In recent years, progress has been drivenby off-farm diversication into business and trading,and even more importantly by salaried employment inmanufacturing and service sectors. In other words,what differentiates the incomes of poor householdsfrom wealthier households is dependent on whetherthey have successfully diversied into off-farmactivities. Rural development strategies must therefore

enable pathways out of poverty by offering men andwomen choices to diversify their income both on andoff-farm. Households, like Mrs. L.T.X (see Box 4) must beenabled and entitled to make choices on the basis oftheir individual circumstances and capabilities. For thisto happen, it is critical that public policy makes accessto credit, vocational training and risk managementinstruments available to all.

But change is needed not only in agriculture, but alsoin the way small-scale farmers are able to produceand participate in the local, national and internationalmarkets. Importantly, change is needed in the waythe state interacts with farmers. In the way it providesservices, the way it invests and the way it createsand enforces policy. As agriculture becomes moredriven by the market, it will inevitably drive changes inpublic investments and all of this must be informed bylessonsboth good and badfrom past experiences56.

56 MARD 2012, p.2


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Strengthening small-scale farmerspower in the markets

Access to local, domestic and even internationalmarkets benets farmers. Selling a surplus allows poorfarmers to earn an income. Over time, it extends their

choices of livelihood diversication, including movingout of the agricultural sector. However, poor small-scalefarmers rarely exercise any power in markets wheremiddlemen and processors call the shots. Price marginstaken by private dealers in remote areas can be between20 and 50 per cent. Most households have no choicebut to rely on private dealers for inputs such as seeds,livestock feed, fertilizers and for selling their output57.

Building physical markets is important, especially inpoor and remote communes, but it is not sufcient.Institutional changes are also needed in promoting

market linkages and strengthening farmers accessto information and increasing their negotiation power,often through forming associations. Reducing themonopoly held by traders and input providers canalso assist small-scale food producers. Some 6,000agriculture and forestry state-owned enterprisesmanage 4.9 million hectares of Viet Nams land58. Theyalso dominate both the input supply and the post-harvest processing and marketing of much of Viet Namsagricultural produce, but they are highly inefcient.Well-structured and sequenced reforms of agriculturalstate farms and companies could really benetfarmers59.

By promoting pro-poor market approaches, commoditiescan be identied that generate better incomes forsmall-scale producers. Through the formation ofproducer organizations, farmers obtain economies ofscale and thus stronger negotiation and bargaining

57 IRC, 2011, p. 5958 Dang, H.V, 201259 Coxhead et al., 2010, p. 20-21

power with traders, resulting in better prices. As a groupthey are also able to demand better extension services.Moving up the value chain can generate better and morediversied livelihoods. Livestock and cattle raising, forexample, often have good market potential in remoteand upland areas, and could build on the traditional

knowledge and practices of the ethnic minorities.

Collective voluntary association can advance theinterests of individuals. Associations can assumevarious roles, both formal and informal, such as takingjoint action for natural resources management. Theycan also provide community groups with local socialfunctions; community savings and credit societies;farmer groups/cooperatives involved in input supplyand/or specic commodity elds and also set upindustry associations applying codes of practice andsupporting both technical improvements and socialcapital. The association of Hmong beef producers60;

Nep Cai Hoa Vang rice famers association61 and KheSanh Arabica coffee farmers group62 are examplesof associations that have brought benets to theirmembers. The multiple impacts on poverty reduction ofsuch initiatives are not yet fully recognised. Howeverthey are constrained by a lack of appropriate policyframeworks and require a change of perception abouttheir advantages to reach their full potential.

There is scope for strengthening the collective actionand voice of farmers, including a reformed, moreproactive and more representative Farmers Union.The government can create better enabling conditionsfor such farmers initiatives particularly as they arecurrently working on revising the Cooperative Laws andEnterprise Law as well as the execution of Decree 151on rural collaborative groups.

60 Dao, T.A, Trinh, V.T & Hoang, X.T., 201061 Dao, T.A, Hannah, J & Pham,C.N, 201062 Oxfam, 2011c

Box 4: Householdsgradually

accumulating fromlivestock

Key events showing thechanges in the last ve yearsof Tay ethnic family of Mrs.L.T.X., from Doi 1 Village,Ban Lien Commune (Bac Ha,Lao Cai), who escaped frompoverty with buffalo and pigfarming.

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Box 5: Have support, can do!

Frustrate with the increasing price and dependenceon the input-hungry hybrid rice seeds, small-scalefarmers in Hoa Binh wanted to revive the centuries-

old tradition to grow their own seeds. Thus, a projecton the farmers seed system, with support fromOxfam and the Famers Union, started four years agoand continues to expand.

A group of enthusiastic small-scale farmers tookpart in both technical and hands-on trainings thatthe project offered, and practiced what they learntin their own elds. After a few trail crops, the seedsthey produced have gained a reputation beyondtheir community. These seeds are often ve toeight times cheaper than hybrid seeds while giving

higher yields and are proving to grow better in localconditions. Furthermore, farmers become capable tocarry out specic improvements such as resistanceto drought which is critical to cope with extremeweather and to secure a resilient livelihood.

Since I started to participate in the project,I understand more and feel more condentMoreover, Ive started to produce my own seeds soI am saving money from not having to buy seedsanymore. And if we manage to produce new varietyof seeds with higher yields, I will be among the rstto try and have the technique to do so.

Rice farmer and community nurse Bui Thi Thiet, 40,Qui Hau commune, Hoa Binh province.

3.3. Building a

new ecologicalfuture

To overcome the challenge of resilience, agriculturewill have to become less input-intensive and wasteful.Guidance on this can be found in a toolkit of practices

known as sustainable intensication. For example,using animal and green manure reduces dependencyon expensive inorganic fertilizers, the price of whichis linked to oil. Agro-forestry and intercropping helpsimprove soils and diversify income. Integrated pestmanagement techniques reduce the need for expensivechemical pesticides. The most comprehensive studyexamined 286 sustainable agriculture projects in 57countries and found an average yield increase of 79 percent63.

Investing in small-scale sustainable

agriculture

To benet small-scale farmers, public and privateinvestments need to be encouraged and need toprioritize investment in pro-poor, sustainable andresilient production techniques, such as water-conservation, water harvesting, low or zero-tillagriculture, agroforestry, intercropping, and the useof organic manures. Besides the nancial benets,these would signicantly reduce the carbon footprint ofagriculture. The government should enable and investmore in community-led initiatives where immediate

gains tend to reach famers more quickly and encouragethem to keep moving ahead (see Box 5 & 6).

63 Jules, P et al, 2006, p 1114-9


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Box 6: Farmer-led innovation andadaptation Growing more from less

The System of Rice Intensication (SRI) is acomprehensive method that improves rice planthealth, soil nutrition and reduces fertilizer and waterconsumption in wet rice cultivation. The Government

of Viet Nam recognizes the signicant contributionof SRI to climate adaptation in its report TechnologyNeeds Assessment for Climate Change Adaptation inJuly 2012.

Oxfam has been supporting farmer training with theMinistry of Agriculture and Rural Development (MARD)to promote the adoption of community-based SRIsince 2006, as it helps vulnerable farmers on thesmallest farms to grow more rice using less seed,less water, and fewer expensive inputs like fertilizerand pesticides.

Compared to conventional rice growing techniques,SRI farmers can increase rice production by as muchas 500 kilos per hectare. This typically increasesincome by about $130 per hectare. On average,farmers see a 50 - 70 per cent drop in the costs ofseeds, use 20 - 40 per cent as much urea fertilizerand reduce pesticide use by 80 - 100 per cent.

In 2011, MARD reported over one million farmers -about 70 per cent of whom are women - applyingSRI, on 185,065 hectares of the rice elds. Inthe spring crop season of 2011 alone, basedon results of farmer eld schools in six Oxfam-supported provinces, it is estimated that SRI farmershave increased their income by VND 370 billionapproximately $17.7 million64.

With SRI, the productivity per sao (or 360 squaremeters) is more stable Each year I harvest morethan two tons of rice. I keep a small amount for homeconsumption, and the rest I use for making rice cakes.Cultivating rice and making rice cakes go togetherwell. I can maintain a good income for my familyWhen

you do have enough, you can spend your time doingother things...

Rice farmer Nguyen Thi Huong, who has adopted SRItechnique since 2006, Dai Nghia, My Duc, Ha Noi

What really motivates me is that we have introducedsomething new [SRI] that benets the farmereconomically, improves the environment and haschanged the mindset of our farmers to make themmore open to new suggestions.

SRI pioneer, Le Ngoc Thach, 54, the head of Dai Nghias

agriculture cooperative, Ha Noi

64 Oxfam, 2011d and http://oxfamblogs.org/vietnam/2011/10/19/system-of-rice-intensication-helps-more-than-1-million-small-scale-farmers-in-vietnam-embracing-innovative-approaches-to-producing-more-rice


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Grassroots adaptation

Besides promoting diversied and resilient livelihoods,Oxfam is also helping those communities throughoutViet Nam that are most vulnerable to disasters andclimate change impacts (See Box 7). They have been

providing training in disaster preparedness awareness,skills and practices. This includes planning for before,during, and after a disaster from the provincial levelthrough to the, district, commune and village levelsand to individual households. Oxfams training rangesfrom early warning message dissemination, swimmingtraining, public health training and integrating disasterrisk reduction with the livelihood initiatives.

Box 7: Community based disaster riskmanagement (CBDRM)

The CBDRM approach was rst introduced in Viet Namin the late 1990s by the Red Cross and a numberof INGOs working on disaster risk management,including Oxfam, World Vision, CECI and others. Itsoon became the main approach applied to disasterpreparedness, response and recovery initiativesin various parts of the country. The success of thevarious CBDRM projects has translated into a 12-yearnational program to reach 6,000 frequently disaster-affected communes and villages by 2020. The totalinvestment is expected at VND988.7 billion of which55 per cent comes from the state budget, ve percent is contributed by communities and the remaining40 per cent comes from international sources. Bysafeguarding those communities vulnerable tonatural disaster, the CBDRM program increases theresilience of individual households which ultimatelyhelps to secure the economic stability of the nation.

Previously, I was aware of the danger butI would not do anything about it. However,it is a different story now, I understand the

risks better and know what to do before,during and after a ood to protect my familyand that is why I pay more attention to it.

I feel much less anxious now knowingthat all my grandchildren can now swim.While at work I feel less worried about themgoing to school, especially during the oodseason.

Mrs Tran Thi Giau, born in 1956, Long Hoa B village, TienGiang province.

Viet Nam is at the frontline of climate change. TheGovernment of Viet Nam and development partners haveworked hard to mobilize resources to curb emissionsand to help vulnerable people and communities adaptto a changing climate. As international climate changenance begins to ow it is essential that the strategies,action plans, governance and implementationmechanisms are shaped to meet the needs of the mostvulnerable. Strong leadership is needed to enhanceaccountability and transparency and promote learningand innovation. Civil society and vulnerable communitiesmust be able to have a say in how climate nance isused65.

65 Oxfam, 2012b (forthcoming)


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3.4. Ensuring

equitabletransition

Viet Nam is in the midst of rapid economic and social

transformation. It is changing from a low-income to amore diversied middle-income country with stronglinks to the global economy. From being a traditionalagrarian society with most families dependent onsmall-scale rice production, it is now rapidly urbanizing,industrializing and becoming more socially diversied.It is understood that development processes involvedin transitions can be difcult, with winners and losers.The distributional effects of this process are thereforecritical. The ability to fairly distribute opportunities,risks, costs and benets between people is a centralconcern for a society, and indeed essential for

sustainable development and social stability.

Promoting womens rights

For prosperity to benet everyone, it is vital that themost marginalized are empowered and included.Oxfams experience shows that the position of womenwithin their households and communities is improvedwhen women have the knowledge and skills to activelyparticipate in economic development and contributeto their household income. When they are empoweredin this way, women tend to have a stronger voice indecision-making within their communities as well more

power when faced with domestic violence. For thesereasons, Oxfam works with women across Viet Namto increase their economic leadership, solidarity andempowerment (See Box 8).

We gained recognition from our familymembers. With the project, we have morechances to meet and talk to people. Before,my idea was just that I would buy andthen resell. Now, I know how to get morecustomers and negotiate prices. If I ammore active, my family will recognize that. Ifeel that they will value my work.

Feedback from women who took part in Oxfams Rural

Enterprise Expansion Project in Thanh Hoa province

Box 8: Promoting womens economicleadership

Oxfam is working with Raglai women in Ninh Thuan

province to enhance their economic leadershipskills. This is one of the most disadvantaged groupsand locations in Viet Nam. Despite the small-scaleproduction level and low productivity here, there ismarket potential in local products such as cows,black pigs, chickens and corn. Through the creationof producer groups, where women make up at least50 per cent of the members, the project is changingthe unbalanced relationship between producers andthe traders - who tend to hold the power as theyare often the sole provider of credit and inputs. Theproducer groups promote production and businesstechniques and facilitate training on extension,

veterinary and marketing skills. The project is creatinga more balanced division of labor within Raglaifamilies and is also addressing some of the barrierswomen experience in relation to language, lack ofsocial exchange, fear of travelling far, and lack oftransport.

At rst I was very shy but now I have become morecondent in selling my products, and I know how tonegotiate with my customers

Thuy, 22, one of the Raglai ethnic women whotakes part in Oxfams Promoting Women Economic

Leadership.


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Equitable access and control over land

The old proverb An inch of land is worth an inch of gold(Tc t tc vng), highlights how land has always beenvalued as a precious commodity in Viet Nam. In theprocess of development land has become an asset that

is even more crucial and increasingly contested.

Under the current land laws and policies, farmers carrya disproportionate burden of the costs of Viet Namsmodernization and urbanization compared to domesticand foreign investors, urban residents and bureaucrats.Land is the critical source of livelihoods for poorfarmers. When land-use is changed, or lost, withoutdue process and adequate compensation, their livesand livelihoods are at risk. Meanwhile land developersand authorities reap massive, sometimes illegitimate,gains66. Although the 2003 Law on Land stipulates thatcompensation has to be paid, what farmers actually

receive is usually below market prices and does notmake up for the farmers foregone income. In somecases investors are only able to provide employmentto 3 to 5 per cent of the people whose land has beenappropriated, so poverty can loom large67.

Land deals are seen as one of the main sourcesof (illegitimate) procedural inequality68. This is aninjustice that needs to be redressed as it lacks farmersparticipation and provides no alternatives. Many havecalled for the need to better protect the farmers rightsto agricultural and forestry land. Making the processof land conversions more transparent and fairer istherefore critical. The urgency of the challenge cannotbe underestimated.

The government is currently revising the law on land.Ultimately, the manner in which a nation manages theuse of land, a most symbolic asset, serves as a litmustest for how it can manage all development processes ina resource-constrained world.

Improved targeting of poverty reductionstrategies

In overcoming poverty and inequality, improvedtargeting of poverty reduction strategies is critical.In the 1990s, poverty was widespread and location-based poverty reduction interventions were verysuccessful. Today, poverty is more concentrated sotargeting becomes even more important. However,current targeting mechanisms are imperfect andincomplete69. Various schemes use overlapping andsometimes incoherent criteria and denitions. The listof poor households, one of the basic mechanismsfor selecting which households benet from socialsecurity and other support policies has been shown

66 Pham et al, 201067 Nguyen, 2009, p. 3268 World Bank, 2012a69 Oxfam and Action Aid, 2011a

to have limitations. Improved and innovative targetingmechanisms, including self-targeting, should beexplored. Community-led development initiatives shouldbe encouraged and supported from planning toimplementation. The governments New Target Programon Sustainable Poverty Reduction offers opportunities

for such innovations.

Social protection

Viet Nams social protection is considered complexand rather fragmented. As a result, management andimplementation costs are high, with an increased riskof mis-targeting and leakage. There are signicantcoverage gaps, such as unregistered migrants andinformal workers. Proportionately higher income groupsbenet more than the poorest income groups. A morecoherent system of benets to support universal accessto social services is required, and more innovative

ways of ensuring access are needed. The nancing,delivery and governance of social services, includingthe so-called socialization policies, are contributingto inequities in access to social services and in healthand education outcomes70. Innovative social protectionprograms, such as cash transfer, could considerspecic approaches towards the chronic poor andtransient poor, based on an understanding of theircharacteristics, common causes and drivers, as wellas the barriers, constraints and vulnerabilities faced bythose groups (See Box 9).

Box 9: Cash transfer for development

Oxfams experiment in providing unconditional cashtransfers in non-emergency situations to a poorcommunity in Central province Ha Tinh has provedto be a good way to support and empower poorpeople. In 2006, Oxfam directly disbursed one-offcash grants to 550 poor and near poor households inAn Loc commune. The injection of VND6.5 million to422 households (while near-poor families got abouthalf of that amount) who have an average monthlyper capita income of VND179,834 was signicant.Impressive results include boosted productiveassets (many invested in cows), improved communityinfrastructure, new opportunities for the youth andunemployed, increased community/social activitiesand increased female participation. Although therewere tensions between those who received thegrants and those who did not, overall, the moneymade signicant impacts on peoples lives accordingto the commune committee, helping to reduce thenumber of poor households by a third, from 65.1 percent in 2006 to 40.2 per cent in 2008.

70 UNDP, 2011b


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benets are shared in an equitable manner. When

concentration of power and inuence shift, barrierscan become more entrenched and in the scramble,people living in poverty are all too often exploitedor marginalized by the large and increasing powerimbalances. Corruption can counteract the benetsof growth. Therefore the empowerment of poor andmarginalized communities plays a vital role in ensuringthat those in power are held to account.

Because the emergence of new, powerful and wealthygroups in Viet Nam has been so fast and often closelylinked with state-owned actors and driven by state-leddevelopment strategies, the risk of rent-seeking and

collusion is more signicant. Viet Nam ranks 112 outof 178 countries in Transparency Internationals 2011Corruption perception index, with a 2.9 index on a scaleranging from 0 to 1071. There is a broad consensus thatcorruption is endemic and systemic in Viet Nam72. AGrassroots Democracy Decree was issued in 1998 whichaims to provide the mechanisms for public consultation,monitoring and if needed re-dress, and has soundprinciples and vision. But its implementation has beenmixed73.

71 Transparency International, 201272 UNDP, 200973 UNDP, 2006

3.5. Raisingvoices andrepresentation

Mechanisms for consultation,monitoring and redress

People know, people discuss, people do, peoplemonitor. (Grassroots Democracy Decree)

As Viet Nam becomes a middle income country,access to and control over natural resources growsever more valuable and contested, meaning risks andopportunities increase. It is now more vital than everthat all opportunities, resources, risks, costs and


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Community-based initiatives andorganization

Community-based initiatives and organizations play acritical role in empowering those who live in poverty orface problems trying to make their voices heard both

within their community and with the local authorities.Through local-level groups with shared interests,peoples capacity can be increased and collaborationbetween the local government and the villagers can beimproved.

When given the oppor

growing a better future in viet nam: expanding rights, voices and choices for small-scale farmers

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