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Technical efficiency of rice production in the delta of the Vu Gia Thu Bon river basin, Central Vietnam

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  • Pedroso, Rui
  • Tran, Dang Hoa
  • Viet, Trinh Quoc
  • Le, An Van
  • Dang, Khoa Tran
  • Le, Khac Phuc

Abstract

In recent decades, Vietnam has experienced an incredible increase of total factor productivity (TFP) in rice production. This has allowed the country to rise to become one of the largest rice producers worldwide. Nevertheless, despite these achievements, there are strong signs of a TFP slowdown in Vietnam in recent years, raising concerns about the future development of rice production and appropriate policy measures. We have analyzed the technical efficiency of rice production in the delta of the Vu Gia Thu Bon river basin in Central Vietnam, considering the different rice seasons and the spatial distribution of efficiency scores. We applied stochastic frontier analyses with a simultaneous (one-step) estimation of the parameters of exogenous effects on technical efficiency (TE). We have shown that TE in this region is basically impacted by the scale of production, by fragmentation of the farm and also by the exposition to salinity intrusion risks. The latter factor has never been explicitly included in former technical efficiency studies of rice production in Vietnam. There is a pertinent need for policies targeting farm fragmentation and enlargement of the scale of rice production. The spatial distribution of TE shows that salinity intrusion and the inherent irrigation management problems caused to farmers is a serious negative impacting factor. Adaptation measures on water management in the basin, as well as related to the introduction of salinity resistant rice varieties should be addressed urgently in the region to increase efficiency in rice production.

Suggested Citation

  • Pedroso, Rui & Tran, Dang Hoa & Viet, Trinh Quoc & Le, An Van & Dang, Khoa Tran & Le, Khac Phuc, 2018. "Technical efficiency of rice production in the delta of the Vu Gia Thu Bon river basin, Central Vietnam," World Development Perspectives, Elsevier, vol. 9(C), pages 18-26.
    • Handle: RePEc:eee:wodepe:v:9:y:2018:i:c:p:18-26
    DOI: 10.1016/j.wdp.2017.12.001
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    3. Dam, Thi Huyen Trang & Tur-Cardona, Juan & Speelman, Stijn & Amjath-Babu, T.S. & Sam, Anu Susan & Zander, Peter, 2021. "Incremental and transformative adaptation preferences of rice farmers against increasing soil salinity - Evidence from choice experiments in north central Vietnam," Agricultural Systems, Elsevier, vol. 190(C).
    4. Hai-Dang Nguyen & Thanh Ngo & Tu DQ Le & Huong Ho & Hai T.H. Nguyen, 2019. "The Role of Knowledge in Sustainable Agriculture: Evidence from Rice Farms’ Technical Efficiency in Hanoi, Vietnam," Sustainability, MDPI, vol. 11(9), pages 1-10, April.
    5. Tuan Minh Cao & Sang Hyeon Lee & Ji Yong Lee, 2023. "The Impact of Natural Disasters and Pest Infestations on Technical Efficiency in Rice Production: A Study in Vietnam," Sustainability, MDPI, vol. 15(15), pages 1-16, July.
    6. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Weather shocks, credit and production efficiency of rice farmers in Vietnam," TVSEP Working Papers wp-017, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    7. Runqi Lun & Qiyou Luo & Mingjie Gao & Guojing Li & Tengda Wei, 2023. "How to Break the Bottleneck of Potato Production Sustainable Growth—A Survey from Potato Main Producing Areas in China," Sustainability, MDPI, vol. 15(16), pages 1-16, August.

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