A historical and economic analysis of agricultural development and land policy in Vietnam

Abstract

Agricultural development in Vietnam has experienced substantial changes since the 1980s, propelled by crucial land policy reforms. The Vietnam Ministry of Agriculture and Rural Development (MARD) [1] and the 1993 Land Law jointly transformed Vietnam from a community farming model to a market-oriented agricultural economy. This research use econometric analysis combined with a historical approach to assess the effects of these policies on agricultural productivity and rural livelihoods. Significant findings indicate a 67% enhancement in land productivity from 1990 to 2010, alongside a consistent rise in agricultural output, with annual growth rates of 5.9% from 1990 to 2000 and 4.2% from 2000 to 2008. Nonetheless, land fragmentation, impacting 85% of agricultural households with less than 1 hectare, constitutes a significant obstacle, diminishing rice income and constraining economies of scale. This study underscores the imperative for policies that promote land consolidation, equitable resource access, and financial inclusion to sustain agricultural prosperity in Vietnam and offer insights for transitional economies worldwide.