Productivity, Net Returns, and Efficiency: Land and Market Reform in Vietnamese Rice Production

Tom Kompas, Tuong Nhu Che, Hoa Thi Minh Nguyen and Ha Quang Nguyen


Extensive land and market reform in Vietnam has resulted in dramatic increases in rice output and incomes. This is illustrated with measures of total factor productivity, net incomes, and net returns in rice production from 1985 to 2006. Results show considerable gains in major rice growing areas, but recent evidence of a productivity slowdown. The differences over time and region speak to existing land use practice, calling for further reform. Estimations detail the effects of remaining institutional and policy constraints, including existing restrictions on land use, ambiguous property rights, and inadequate markets for land and access to extension services and credit. (JEL O12, O13)

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