Diversification of rural household economy in Vietnam : a study in Tien Lu District, Hung Yen Province

Author: Tran Van Cong

AIT Library Call Number: AIT Thesis no.RD-02-05

Year: 2002

Academic Program: Regional and Rural Development Planning (RRDP)

Type: Thesis (M. Sc.) – Asian Institute of Technology, 2002

Examination Committee: Soparth Pongquan (Chairperson); Karl E. Weber, Jayant Kumar Routray (Examination Committee Members)

Abstract: Since the introduction of the renovation process, a rural household is considered as a basic decision making unit in a rural sector. Rural household economy structure has been changing. In order to improve and stable household income, rural people have to diversify their economic activities. The research deals with the diversification of rural household economy in Vietnam. The specific objectives of the research are to assess the socioeconomic characteristics of rural households to examine of the pattern of diversification in rural economy, to analyze factors influencing the diversification of the rural economy to study people’s attitudes toward the changes in rural economy and to give recommendations to strengthen the rural economy and provide policy implications. Diversification in rural economy was examined both in farm and non-farm activities particularly the impact after the reform period and the implementation of the government policy in this respect since 1990s. The research was conducted in the two communes in the Hung Yen province in the Red river Delta of Vietnam representative in the two areas of recent rapid diversification and traditional diversification by using a household survey questionnaire as a prime method for data collection. The research was focused on quantitative analysis but qualitative technique was also applied. Findings from this study showed that the rural households in the two areas had different farm and non-farm practices as well as occupational structure. In the recent rapid diversification area, rural households were diversified in both farm and a non-farm activity while the traditional diversification area was more focused on non-farm activities rather than farm activities. As a result, the latter area obtained higher household income than those in the recent rapid diversification. However, in the household income composition, the farm income was still dominant in the recent rapid diversification while in traditional diversification area, non-farm income was occupied in the

Scholarship Donor(s): Norwegian Agency for Development Cooperation (NORAD)

Note: A thesis submitted in partial fulfillment of the requirement for the degree of Master of Science.

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