2006 Vietnam Access to Resources Rural Household Survey by wangnianwu

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									Characteristics of the Vietnamese Rural Economy
                       2008 Survey


  Vietnam Access to Resources Household Survey:
                   Key Results


Professor Finn Tarp
Senior Economist Simon McCoy
University of Copenhagen        Hanoi, 20 November 2009
            Introductory Remarks/Outline


• The VARHS 2008 a rich database - data can be displayed in many
  different ways
   • Descriptive Report covers only a selective overview of data collected,
   • Numerous dimensions of interest: Report focus on Gender,
     Income/Poverty, Location, Ethnicity. Many others possible.


• Observations at Individual, Household and Plot level;

• Descriptive (suggestive) vs In-Depth (causal) analysis;

• Possible to compare 2008 with 2006 (panel database: same
  households over time);

• 7 chapters (6 here, 1 later).


                                                                              2
1.   General Household Characteristics
2.   Labour and Income
3.   Land: Property Rights, Investment and Markets
4.   Agricultural Production
5.   Risk, Insurance, Savings and Credit
6.   Social Capital and Access to Information
7.   Baseline Analysis for Impact Assessment of ARD
     Program



                                                      3
         General Household Characteristics

                                                                               Vietnamese
                   No. of                                          HH head                 HH classified
                                       Gender of   Ethnicity of                   main
                    HH’s     Percent                                speaks                  as poor by
                                       HH head      HH head                    language of
                  surveyed                                        Vietnamese                authorities
                                                                                   HH
                                       (percent     (percent
                                                                   (percent)    (percent)    (percent)
                                        male)        Kinh)
Provincea
Ha Tay (RRD)        174       12.8       76.8          98.3         100.0        100.0          8.1
Lao Cai (NE)         87        6.4       87.4          24.5          79.5         38.3         30.9
Phu Tho (NE)        112        8.2       76.7          85.7         100.0         97.3         16.8
Lai Chau (NW)       112        8.2       91.0          14.1          71.4         16.0         48.7
Dien Bien (NW)      106        7.8       88.8           8.3          98.2          8.3         25.4
Nghe An (NCC)       193       14.2       80.8          87.6          99.4         89.8         20.0
Quang Nam (SCC)     114        8.4       71.9          96.5          99.1         96.5         29.9
Khanh Hoa (SCC)      60        4.4       64.9          91.8         100.0         93.4         19.8
Dak Lak (CH)        139       10.2       81.9          67.6          98.0         77.8         16.2
Dak Nong (CH)        85        6.2       87.0          78.7         100.0         78.7         17.7
Lam Dong (CH)        67        4.9       75.8          63.0         100.0         65.9         20.2
Long An (MRD)       115        8.4       66.7         100.0         100.0        100.0          8.7
Total, 2008        1364       100        77.6          81.5          98.0         85.4         18.0
Total, 2006b       1,364                 79.8          82.6          97.6         86.3         21.9


  • Sample is representative of the rural population in 12 provinces of
    Vietnam.                                                                                               4
        General Household Characteristics

                   Gender                                        Support       Born in
                            Ethnicity of            Vietnamese                              HH
                    of HH                 HH head                  from       commune
                             HH head                   main                              classified
                     head                  speaks                children       (head,
                             (percent               language of                         as poor by
                   (percent              Vietnamese             outside the   spouse or
                              Kinh)                   the HH                            authorities
                    male)                                       household        both)
Household Head
Female                -        89.8        99.2        92.3        22.7         76.1        24.3
Male                  -        78.9        97.6        83.2        11.9         77.4        16.1
Food Expenditure Quintile
Poorest             77.5       54.6        93.1        58.5        15.1         80.2        43.7
2nd poorest         81.7       76.6        98.5        82.9        14.3          78         19.1
Middle              75.9       87.8        98.7        91.3        13.5         80.1        10.1
2nd richest         76.6       92.5        99.9        96.2        13.8         76.7        10.3
Richest             77.6       95.1        99.8        97.5         15          70.5        6.5


• No Gender difference on general characteristics of households,
     • But… poverty and education …
• Kinh ethnic group is richer;
• The rich are more mobile;
• Correlation between food expenditure and poverty.
                                                                                                      5
       General Household Characteristics

• Significant differences between provinces in terms of poverty and
  educational achievement;
   •   The proportion of Household heads with no professional education is quite high - more
       than 85% in all 12 provinces,
   •   Vocational, technical, and college training is rare in rural areas,
   •   Illiteracy is still a serious issue in some Northern mountainous areas: 39, 32, and 24
       percent of household heads in Lai Chau, Dien Bien, and Lao Cai respectively cannot
       read and write.


• Distance to Primary and Lower Secondary School is short;
   •   Lai Chau and Dien Bien stand out with average distances to Upper Secondary schools.


• Access to safe water generally observed to be high;

• Environmental Concerns:
   • It is quite common to dump garbage;
   • Firewood Collection.
                                                                                                6
1. General Household Characteristics
2. Labour and Income
3. Land: Property Rights, Investment and
   Markets
4. Agricultural Production
5. Risk, Insurance, Savings and Credit
6. Social Capital and Access to Information
7. Baseline Analysis for Impact Assessment of
   ARD Program

                                                7
              Income Earning Activities

• Four main types of income earning activity:
   Wage work, Work in household agriculture, Non-farm enterprises, Collecting Common
     Property Resources.


• Agriculture (working on own farm) remains most prevalent activity;
   •   BUT it has fallen, 2006: 75%, 2008: 70%.


• Common Property Resource collection most prevalent in Northern
  provinces;

• Richer people are more likely to be involved in wage work
    Indicative that wage work is more rewarding than self-employment.


• 1 in 4 surveyed Households have a Household Enterprise
   •   13% of individuals work on own non-farm enterprise (down from 17% in 2006);
   •   Negatively correlated with poverty
   •   Big provincial differences: Ha Tay has highest proportion, Dien Bien has lowest.
                                                                                          8
Diversification and Monetary Transfers

• Mountainous (poor) provinces have high levels of diversification;

• Why diversify?
   • Smoothing Labour Demand over seasons,
   • Optimise use of different household labour skills,
   • Ex-ante risk coping strategy.

• Transfers
   • Public transfers are received by 41% of Households, amounting to 20%
     of income,
   • Private transfers are received by 39% of Households, amounting to 15%
     of income,
   • Transfers more prevalent among poor households, though they are
     ‘regressive’.



                                                                             9
1. General Household Characteristics
2. Labour and Income
3. Land: Property Rights, Investment and
   Markets
4. Agricultural Production
5. Risk, Insurance, Savings and Credit
6. Social Capital and Access to Information
7. Baseline Analysis for Impact Assessment of
   ARD Program

                                                10
                              Land I

• Substantial data available at Household and Plot level on:
   •   Distribution and fragmentation of Land,
   •   Land Titles (‘Red Books’) and Restrictions on Land Use,
   •   Investment in Land,
   •   Land Transactions.

Here are just some highlights…

• Overall, there has not been much change since 2006;

• The State continues to be a very active player:
   • In land markets: 1/3 land transactions,
   • Restrictions on land use (50% of plots).



                                                                 11
                                Land II


• Landlessness:
Landlessness Transition Matrix, 2006-08 (percent)

                                     Landless in 2006
                               Yes                 No    Total
                      Yes      5.7                 2.1     7.8
Landless in 2008
                      No       2.4                89.8    92.4
                     Total     8.0                92.0   100.0

• Average Household has 4.6 plots (mean);
    • 14% of which share a border with other plots owned by same household,
    • Mean plot size 1,647 sqm, median 500 sqm (little land consolidation,
      distribution skewed to the right).
    • Significant provincial variation: Dak Nong (high) vs Phu Tho (low).
                                                                              12
      Land Use Right Certificates (LURCs),
                  ‘Red Books’

    100

     80

     60

     40

     20

      0




•   Significant variation across Provinces and Food Expenditure Quintile;
•   80% of LURCs have only household head named, 8% have both spouses;
•   Plots with LURCs are more likely to be irrigated (72% vs 58%), but causal
    link?
•   Richer Households invest more in their land.
                                                                                13
1. General Household Characteristics
2. Labour and Income
3. Land: Property Rights, Investment and
   Markets
4. Agricultural Production
5. Risk, Insurance, Savings and Credit
6. Social Capital and Access to Information
7. Baseline Analysis for Impact Assessment of
   ARD Program

                                                14
              Agricultural Production

• Poorer households remain more likely to grow annual food crops, such
  as rice and cassava;

• Female headed Households are less diversified, but no major gender
  bias found;

• Extensive use of modern inputs (93% of households use chemical
  fertilisers);

• Despite the significant move towards commercialization and
  specialization in agriculture in recent decades, the importance of
  production for own-consumption is still high.
   • Typical Household sells just under half of its total crop production, and only
     around 25% of its rice production;
   • Southern provinces are much more likely than Northern ones to sell their
     products on the market, to use hired labor and production loans, and to buy
     rice seeds from private providers.
                                                                                  15
                   Agricultural Production

•   Share of Households with difficulty in accessing markets:




•   Difficulties in accessing markets - especially in accessing inputs (blue bar);
     •   High input prices in 2008 seen as major constraint;
•   Significant provincial differences in commercialisation.
                                                                                     16
      Agricultural Training and Extension




•   State overwhelmingly dominant in training and extension;
•   Less than 3% of households visited by ag extension workers in 2008;
•   Information received had little or no influence on behaviour (stated);
•   3% of households are engaged in Farmer Interest Groups.                  17
1. General Household Characteristics
2. Labour and Income
3. Land: Property Rights, Investment and
   Markets
4. Agricultural Production
5. Risk, Insurance, Savings and Credit
6. Social Capital and Access to Information
7. Baseline Analysis for Impact Assessment of
   ARD Program

                                                18
     Unexpected Shocks to Households

Households Suffering Losses during Last 2 Years (%):




• Unexpected shocks are very prevalent in rural Vietnam.
   • Losses are large (average of 25% of Household income).
                                                              19
                                     Coping with Risk

    Risk-Coping Measures (%):
                                                   Nr Obs.   All

  Self-Reliance                                     717      93.2

  Nothing                                           353      39.1

  Reduced consumption                               453      62.3

  Sold properties                                    28      3.9

  Postponed payment of loans                         3       0.4

  Work more                                          72      14.4

  Took children out school                           1       0.1

  Use savings                                        88      12.8

  Informal                                           43      6.9

  Got assistance from friend/relatives               43      6.9

  Formal                                            100      14.7

  Got assistance from Government                     27      4.4

  Borrowed money from bank & other                   69      9.7

  Got insurance payment                              10      1.4

  Other                                              48      4.5


• 1 in 3 households only partly recover and 1 in 5 suffer badly over
  two years after the shock.
                                                                       20
             Rural Financial Services

• Role of well-functioning rural financial markets is important;
• Savings are low: household savings:income ratio is 9%;
    • Formal savings are very low.
• Only 0.6% of households possess agricultural insurance;
• The picture of credit is somewhat different:
% of Households with at least one loan:




                                                                   21
1. General Household Characteristics
2. Labour and Income
3. Land: Property Rights, Investment and
   Markets
4. Agricultural Production
5. Risk, Insurance, Savings and Credit
6. Social Capital and Access to Information
7. Baseline Analysis for Impact Assessment of
   ARD Program

                                                22
                          Networks as Insurance


• Share of Households with at least one person to turn to for money in
  case of an emergency: 94%.


                            Share of helpers who are relatives
                   80.0

                   70.0

                   60.0

                   50.0
         Percent




                   40.0

                   30.0

                   20.0

                   10.0

                    0.0

                          Poorest   2nd       3rd        4th     Richest
                                    Food expenditure quintile
                                                                           23
                   Political and Bureaucratic Connections



                 Share of households with a member, relative or friend holding a
                      public office or other position of public responsibility
          60.0
                                                                                         • High proportion of
          50.0                                                                             Households have
                                                                                           contact in public
          40.0
                                                                                           office /
Percent




                                                                                           responsibility;
          30.0


          20.0                                                                           • The rich are better
                                                                                           connected.
          10.0


           0.0

                  Poorest          2nd             3rd               4th       Richest
                                         Food expenditure quintile

                                                                                                                 24
                       Attitudes to Trust
    % of Households agreeing with statement:
      100%
       90%
       80%
       70%
       60%
       50%
       40%
       30%
       20%
       10%
        0%
                Most people are      In this commune one has Would rather farm 0.5
             generally honest and can to be careful, there are  ha alone than 3.5 ha
                    be trusted        people you cannot trust  jointly with one other
                                                                        family


•    Trust is important because it facilitates market interactions, and the ability of a
     community to take collective action;
•    Results indicate high level of trust (1st column);
•    But Households are also aware that social interactions entail risk (2nd column);
•    Households exhibit a low propensity for cooperation, especially compared with the
     high level of trust indicated by the other results.                                25
                  Sources of Information

    % of Households mentioning each source of information for agricultural
    production and extension:
                                           0   10   20   30   40   50   60    70

        Relatives, friends and neighbors
             Community bulletin board
              Community loud speakers
                           Local market
                           Newspapers
                                  Radio
                              Television
                       Extension agents
      Other groups or mass organization
            Business- or work associates
                                 Other



•    Relatives, friends and neighbours are important sources of information about
     agricultural production;
•    TV is also very important (also for other topics such as credit/insurance and
     government policies).                                                           26
•


    Thank you for
    your attention




                     27

								
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