Income Diversification and Poverty Income Diversification and Poverty

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Chapter 2. Background on the Northern Uplands region Table 2-3. Land resources and productivity in the Northern Uplands by province in 1995 and 2000 Total land area Total cropped Cropped area as Agricultural GDP per hectare Year area percent of total (1000 ha) (1000 ha) (percent) (million 1994 VND /cropped ha) Ha Giang 1995 788 100.2 13% 3.60 2000 788 117.9 15% 3.87 Cao Bang 1995 669 88.2 13% 4.89 2000 669 82.1 12% 7.32 Lao Cai 1995 806 72.3 9% 5.28 2000 806 87.1 11% 5.31 Bac Kan 1995 486 27.1 6% 7.14 2000 486 37.1 8% 7.29 Lang Son 1995 830 78.1 9% 8.90 2000 830 108.3 13% 8.05 Tuyen Quang 1995 587 78.8 13% 6.25 2000 587 91.1 16% 7.60 Yen Bai 1995 688 72.5 11% 6.39 2000 688 88.9 13% 6.76 Thai Nguyen 1995 354 101.5 29% 6.33 2000 354 133.8 38% 6.03 Phu Tho 1995 352 121.7 35% 5.47 2000 352 139.2 40% 6.15 Bac Giang 1995 382 201.6 53% 5.04 2000 382 210.9 55% 6.99 Quang Ninh 1995 590 71.6 12% 3.67 2000 590 82.7 14% 4.27 Lai Chau 1995 1692 94.5 6% 3.97 2000 1692 105.4 6% 4.29 Son La 1995 1405 114.9 8% 4.56 2000 1405 159.7 11% 4.86 Hoa Binh 1995 466 98 21% 5.55 2000 466 114.4 25% 7.07 Northern Uplands 1995 10096 1321.0 13% 5.33 2000 10096 1558.6 15% 6.08 Annual growth 0.0% 3.4% 2.7% Source: Calculations based on data from GSO (2001). The last column in Table 2-3 shows the value of agricultural output per hectare of crop land. This is one measure of crop diversification because as household diversify from low-value staple crops to higher-value commercial crops, this is reflected in rising value per hectare. On average, cropland in the Northern Uplands produces VND 6.1 million per hectare (in constant 1994 prices). The provincial figures reveal two patterns. First, the value per hectare is generally greater in the interior provinces close to Hanoi than in the remote border provinces. For example. Ha Giang, Lai Chau, and Son La have values of less than VND 5 million per hectare of cropland. And the interior provinces of Tuyen Quang, Yen Bai, Phu Tho, Bac Giang, Hoa Binh, and Thai Nguyen have agricultural output worth more than VND 6 million per hectare. There are some exceptions to this pattern, notably the high values found in Lang Son and Cao Bang. In the case of Lang Son, part of the explanation lies in the large forestry sector, which is included in the broad definition of Page 26
Chapter 2. Background on the Northern Uplands region agriculture. In addition, Lang Son is the main gateway for exports to China, giving the province an advantage in producing for export. The second pattern that is evident is that the value of agricultural output per hectare increased substantially, rising from VND 5.3 million/ha in 1995 to VND 6.1 million/ha in 2000. This represents an increase of 2.2 percent per year. Although this increase is consistent with crop diversification, in which farmers shift from low-value to high-value crops, it may also reflect higher yields and/or higher crop prices. Thus, it is useful to examine the allocation of cropland among different crops. Agricultural data from the General Statistics Office suggest that rice remains the dominant crop in the Northern Uplands, but that the share of cropland allocated to rice is declining. As shown in Table 2-4, sown rice area 5 has fallen from 50 percent of the total to 44 percent. Furthermore, this decline can be observed in every province except one (Bac Giang). In Bac Kan and Son La, the percentage of cropland planted with rice declined dramatically, falling by more than 10 percentage points over the five-year period. Other food crops (maize, cassava, and sweet potatoes) show no net change for the region as a whole, but this masks some variation across provinces. Most provinces experienced a small decrease in the share of area allocated to non-rice food crops, but this was offset by large increases in Son La and Bac Kan. In Son La, maize production has grown strongly in recent years to supply the feed industry which in turn has been stimulated by the growth of urban demand for poultry and pork. The share of cropland allocated to vegetables and beans increased slightly, as did the share of area devoted to tea and coffee (of which tea represents 93 percent), while the share allocated to annual industrial crops fell slightly. But the most noteworthy trend is the growth in the share of cropland devoted to “other crops,” which has increased from 6 percent in 1995 to 11 percent in 2000. The largest increase is in the province of Lang Son, on the northern border with China. The category “other crops” presumably includes fruit trees, other tree crops, and agro-forestry plantations. The growth in litchi and longan production for domestic consumption and for export to China probably accounts for the main part of this increase. It should be noted, however, that we have calculated “other crops” as a residual of total crop area after subtracting the other crop categories. Crop production The falling share of cropland allocated to rice cultivation raises questions about the impact of crop diversification on food security. Are farmers in the Northern Uplands sacrificing food security in pursuit of higher profits from vegetables, tea, and fruit The question is particularly relevant in light of the fact that the rural Northern Uplands is the poorest region of Vietnam so food security is clearly an important issue. Table 2-5 shows that the amount of rice land in the Northern Uplands has 5 “Sown area” adds the areas planted in different seasons, so that one hectare of double-cropped rice is counted as two hectares. Page 27
Page 1 and 2: Income Diversification and Poverty
Page 3 and 4: Contact information: Nicholas Minot
Page 5 and 6: Page iv
Page 7 and 8: USA), with assistance from Dr. Finn
Page 9 and 10: Chapter 4. Analysis of food demand
Page 12 and 13: CHAPTER ONE INTRODUCTION 1.1 Introd
Page 14 and 15: Chapter 1. Introduction into high-v
Page 16 and 17: Chapter 1. Introduction In addition
Page 18 and 19: Chapter 1. Introduction seemingly u
Page 20 and 21: Chapter 2. Background on the Northe
Page 30 and 31: Figure 2-3. Index of accessibility
Page 34 and 35: Figure 2-5. Main ethnic group in ea
Page 44 and 45: Figure 2-7. Diversification into no
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Chapter 3. Patterns and trends in d
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Chapter 4. Analysis of food demand
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Chapter 5: Income Diversification f
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Figure 5-1. Location of provinces,
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Chapter 7. A Social Accounting Anal
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Table 7.4: Structure of Marketed Su
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Chapter 8. Summary and conclusions
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References Page 200
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References Escobal, J. 2001. “The
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References Stone, R. 1981. Aspects
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Glossary Page 206
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Marshallian price elasticity: the r
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Appendix A: Supply response analysi
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Appendix B: Interview Guidelines fo
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Appendix D: Constructing a standard
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Appendix E: Details of MacroSAM Con
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Appendix E: Details of MacroSAM con
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Appendix E: Details of MacroSAM Con
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Table A7.3: Ha Giang: Provincial Ma
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Table A7.7: Lang Son: Provincial Ma
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Table A7.11: Phu Tho: Provincial Ma
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Table A7.15: Son La: Provincial Mac
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