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Impacts of Price Hikes on the
Lives and Livelihoods
of Poor People in Viet Nam
For instance, non-poor farmers growing rice in the Dien Bien valley gain more as the price of rice increases
in line with increased prices for inputs and services. (“The boat floats high as the water rises” as they often
say). However, poor farmers still earn very low incomes as they have little land. Data collected from
household questionnaires show that poor households sell an average net output of 167 kg of rice, while
non-poor households sell 1051 kg. Survey data for Thanh Xuong commune also indicate a low land acreage
per farmer of 500m 2 . The figure per head is even lower: between 250 and 300 m 2 (those who are new
residents or were born after the land allocation exercise in the early 1990s do not receive land). Therefore,
despite the fairly high cost of each man-day in paddy farming, the average man-days worked by each
labourer is only 25-30/year. The non-poor Kinh households who can hire more land (mostly from Stateowned
plantations for which most have worked) can earn more income. Poor farmers have to grow extra
crops such as morning glory (Kinh people) or travel daily to Dien Bien town to find work (Thai people).
3.3.2 Impact on Production Patterns
Dien Bien – Paddy Production. Paddy farming practices in Dien Bien are not adversely affected by
increased prices of agricultural inputs and paddy output. None of the households interviewed had to reduce
their use of fertilizers over the last year. Only 15 percent mentioned reduced output as a result of outbreaks
of diseases and pest attacks (Figure 3.8). Some households (including poor households) managed to rent
extra land (owned by those who have left to find jobs elsewhere or do not have enough labour available)
for paddy farming.
Figure 3.8: Changes in paddy production patterns in Dien Bien in the last 12 months (% hhs)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cultivation
area
Rice in Dien Bien - Poor household
Yield
Use of
Fertilizer
Use of
improved
techniques
Volume of
Sale
Same
Decrease
Increase
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cultivation
area
Rice in Dien Bien - Non poor household
Yield
Use of
Fertilizer
Use of
improved
techniques
Volume of
Sale
Same
Decrease
Increase
Source: Questionnaire survey of 180 households (July-August 2008)
To cope with the price storm in Dien Bien’s paddy-producing areas poor farmers tend to focus on growing the
more value-added Bat Thom rice variety (which they can then sell to buy cheaper rice for daily consumption).
As a result, the Bat Thom variety is now grown on more than 60-70 percent of total paddy land, inducing a
higher frequency of disease and reduced productivity.
“The percentage of acreage of any variety recommended by the district extension authorities is
only 40-45 percent maximum in order to avoid pest attacks and diseases. However, farmers in
many places attracted by rising prices of Bac Thom have decided to grow this variety in as much
as 60-70 percent of the total paddy land. Consequently diseases (for example, brown-backed
rice plant hopper and rice grassy stunt virus) are occurring more frequently, productivity is
declining and the appearance of the grains is getting worse. It is very difficult to manage
production at the moment.“
(A management member of the Dien Bien District ARD Office)
In Chan Nuoi 2 village, Thanh Xuong commune (Dien Bien), the acreage of morning glory crops increased by
50 percent between 2007 and 2008 among Kinh households as the price of morning glory doubled (from
1,000 VND/12 bunches in 2007 to 1,000 VND/6 bunches in 2008). Almost all households have set aside
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