R apid economic growth has led to great reduc-tions in poverty in Vietnam in recent years, andpolicies will continue to emphasize economic

growth as the key to poverty alleviation. However, thisrapid growth has failed to address the associatedproblems of unsustainable exploitation of naturalresources. Degradation of environmental services onwhich the poor depend – water, soil, forest and marinebiodiversity – isbeginning to constraineconomic developmentin some rural areas. Inresponse, many nationaldecision-makers, devel-opment agencies andNGOs are payinggreater attention to theprotection of naturalresources that supporteconomic growth andpoverty reduction. Thisstudy, which used theStrategic EnvironmentalVulnerabilitiesAssessment approach,assesses how currentagricultural develop-ment policies in themountainous districts ofVietnam’s Quang NamProvince may affectsustainable resource useand poverty alleviationin a region that offers agreat opportunity for biodiversity conservation.

Quang NamQuang Nam is located in Central Vietnam, in theCentral Annamites region. Its 17 districts are classifiedin three regions: mountainous, hilly (midlands), andlowlands. Six districts are considered mountainous.The total land area is just over 1 million ha, of which43% is forested and 11% in use for agriculture. Thepopulation of the province is about 1.4 million, of which1.2 million live in rural areas. About 7.5% of the popula-tion is categorized as ethnic (non-Kinh) minorities. As in the rest of the country, economic growth has

been strong in recent years, outpacing populationgrowth substantially.

The share of agriculture, forestry and fisheries in theprovincial GDP has been shrinking, but still remainsover 35% and accounts for about 70% of the labor force.In the mountainous districts, agriculture is the primaryincome-generating activity of almost the entire popula-tion, and accounts for about 90% of the labor force.

However, arable land is scarce in the mountains, partic-ularly for cereal crops such as paddy rice and maize.Forests are considered a valuable provincial resource,but rapid degradation in recent years has severelydamaged both their productive and ecological value.The area of highly productive timber forest nowaccounts for only 10% of the remaining forest, andcommercial logging has been banned since 2002. Theforests still provide essential environmental services,including watershed and biodiversity protection, andmany non-timber forest products (NTFPs). Accordingto estimates made by WWF, 40-45% of products of thisarea are harvested from the forest.

1

WWF–Macroeconomics Program Office, Nov, 2005

Case Study: Vietnam

AGRICULTURAL DEVELOPMENT IN QUANG NAMPROVINCE, V IETNAM: ASSESSING POLICY IMPACTS Based on a longer paper written by Le Van Hung (formerly WWF Indochina) and Tu Van Khanh (FPD Quang Nam)

MAC

ROEC

ONOM

ICS

for

Su

sta

ina

ble

Dev

elo

pmen

tPR

OGRA

M O

FFIC

EM

/P/O

Proposed Dams

Rivers

Main Roads

Urban Areas

Existing Protected Areas

Priority 1 Areas

Priority 2 Areas

Song Thanh

Figure 1

2Case Study: Vietnam

The national development strategy, reflected in theCPRGS/PRSP1, calls for: a doubling of GDP growthfrom 2001-2010; export expansion above 100%; andannual growth of value-added agriculture, forestry andfisheries between 4.0% and 4.5%. In addition to thesebroad economic targets, the PRSP also targetsimproved infrastructure and social services for thepoor. The provincial development strategy likewiseaims for 4% growth in agriculture, to be achievedthrough expansion and productivity improvements,primarily in paddy rice production.

People: Poverty and VulnerabilityEconomic growth in the province has had a majorimpact on poverty. GDP per capita increased from US$178 to US$ 266 from 1998 to 2003, and the rate ofpoverty reduction has been over 6% annually since thelate 1990s. Between 2001 and 2004, some 27,000 house-holds were lifted out of poverty. Despite this achieve-ment, poverty remains critical, particularly in themountain districts and among ethnic minorities.Poverty levels in the province correspond closely withelevation. The average poverty rate2 in the mountaindistricts is 35.5%, and in two districts the rate is over50%, well above the provincial average of 14.2%. One ofevery five households in the mountain districts faces agrain shortage from 3 to 6 months of the year. Highpoverty levels also correspond with ethnicity. Roughestimates suggest that ethnic minorities account for70% to 90% of the total number of poor households inthe region3.

Poverty in the mountainous region is largely attribut-able to the poor conditions for agriculture: scarcity ofarable land, steep slopes, and ongoing soil erosion. Theaverage area of paddy rice land per capita in theuplands is only 204 m2, compared with 376 m2 in therest of the province. Sloping land, unsuitable for paddyrice, makes up 60-90% of arable land in the region.Agriculture on these slopes is very vulnerable toweather, such as heavy rains, and soil erosion, whichgreatly increase the vulnerability of these communities.Loss of forest cover contributes to this vulnerability byincreasing soil erosion and exposure of hillside crops torain and drought. Swidden agriculture has traditionallybeen practiced by the upland communities on thesloping land in Quang Nam, with a fallow period of 10years and little population pressure until recently. Now,however, population growth, migration, governmentsedentarization policies, and greater enforcement offorest protection put pressure on traditional farming

methods. In response, fallow periods have beenshortened, and soil degradation greatly exacerbated.

In addition to subsistence agriculture, the uplandcommunities, particularly the ethnic communities,depend heavily on the forest for food, shelter, fuel,medicine and other products, some of which can besold to generate income. NTFPs include rattan, honey,fruits, and vegetables, as well as firewood. Becausecommunities have had very little control over forestresources, rapid exploitation of both timber and NTFPsby outsiders has reduced the goods and services thatcould benefit local communities. Nevertheless, theseforest resources continue to provide an importantsafety net for local communities when crops are lost orother calamities strike.

Environment: Vulnerability and Conservation PrioritiesQuang Nam’s remaining native forests, about 390,000ha, are found primarily in the mountainous andmidland districts. Forest lands are divided into Special-Use forests (protected areas); watershed protectionforests; and production forests. Special-Use forestsinclude the Song Thanh Nature Reserve, established in2000. Biodiversity levels are high for both flora andfauna species. In the Song Thanh Nature Reserve,1,129 species of flora have been identified, including 56that are endemic to Vietnam, 6 that are included in the2000 IUCN Red List and 47 in the 2003 Vietnam RedData book. Of the region’s fauna species, 25 are listedin the IUCN Red List. Large mammals recorded in theReserve include tigers, the gray-shanked douc, the red-shanked douc, and the recently discovered Annamiteand large-antlered muntac. Other large mammalspecies found in the province include the Asianelephant and the saola. The six mountainous districtsare identified as part of WWF’s priority landscape forthe Central Annamites and are included in the CentralTruong Son Biodiversity Conservation Initiative of theGovernment of Vietnam.

Major threats to the mountain region’s naturalresources, particularly the remaining native forests andbiodiversity, include: agriculture, hydro dams, roadconstruction, poaching, collection of NTFPs and illegallogging, according to provincial authorities.

■ Agricultural land is very vulnerable to erosion andlandslides. Most arable land in the mountain dis-tricts is on steep slopes, averaging 25-30 degrees.The limited flat arable land, which has potential forirrigation in these districts, is critical for the expan-

1 Comprehensive Poverty Reduction and Growth Strategy/Poverty Reduction Strategy Paper

2 Low-income levels-the measure of poverty used here-reflect a variety of factors that contribute to poverty in this region including: limited assets, under-employment,large families, and high risks, particularly food security problems.

3 Author's calculation

3Nov 2005

sion of paddy rice. However, this land is locatedclose to rivers and streams, making it subject toflooding and landslides. At present, only 2,794 haare paddy rice in these districts; an estimated 3,500ha of this land has been abandoned since 1995because of natural disasters.

■ Water resources in the province face major threatsfrom land-based activities including infrastructuredevelopment. The construction of hydro dams andthe loss of forest cover due to road constructionthreaten water quality and may affect seasonal avail-

ability. Gold mining is increasing in the region,which also contributes to water contamination,which makes irrigation less feasible.

■ Illegal logging, extraction, and hunting, includinginside the Song Thanh Nature Reserve, is common.About 2,500 cases of forest poaching and illegal traf-ficking in timber and forest products were reportedannually by provincial authorities from 1997-2002.Since many cases are not identified, the total ismuch larger. Many rare and endemic species arehunted and logged illegally.

These threats are compounded by weak provincial anddistrict-level capacity for environmental management.At the provincial level, several departments have envi-ronmental responsibilities. The Department of NaturalResources and Environment (DONRE) has overallresponsibility for the environment and takes the leadon land-use planning. The Department of Agricultureand Rural Development (DARD) has a role in

promoting sustainable use of land and water resources.The Forest Protection Department (FPD) is theenforcement agency protecting the forest against illegaluse and conversion. These departments have func-tioning bodies at the district level in most instances;however, the division of functions and responsibilitiesamong these district-level bodies is often unclear.

Conservation of biodiversity in the region depends onprotection of the remaining native forests. The CentralTruong Son Biodiversity Conservation Initiative wasapproved by the Government of Vietnam in 2003 toensure effective conservation of Vietnam’s biodiversity.

The initiative definesregional conservationpriorities for the next20 years for a 6-province area,including a fairlyextensive area inQuang Nam. Morerecently, in 2005, theprovincial governmenthas establishedconservation priorities(the Quang NamBiodiversity andNatural ResourceConservationStrategy) with collabo-ration from WWF,which more accuratelyreflect conservationopportunities inQuang Nam’s part ofthe Central

Annamites. Figure 1 shows three levels of conservationpriorities set by the initiative: first-level prioritiesinclude existing protected areas, including Song Thanhand the proposed Ngoc Linh Nature Reserve in QuangNam; second- and third-level priorities include theextension of protected areas and the establishment ofcorridors linking protected areas to form broaderconservation landscapes.

Because these forested landscapes provide importantresources for the local communities, efforts areunderway to improve community management andincrease community benefits from the forest. A projectentitled Management of Strategic Areas for IntegratedConservation (MOSAIC) has been established througha partnership of WWF Indochina, the Quang NamFPD, and numerous other provincial departments inorder to ensure biodiversity conservation and securelocal livelihoods. This project supports community allo-cation of natural forest land, community forest manage-ment regulations, community-based natural resource

Ethnicity

Poverty greater than 33%

Predominantly non-Kinh

Predominately Kinh

Figure 2

4Case Study: Vietnam

harvest mechanisms, and other efforts along theselines. Giving communities greater control over localforests should improve their access to NTFPs andreduce incursion by outsiders.

Comparing the poverty map with the priority landscapemaps illustrates the large overlap between conservationpriorities and vulnerable populations. The next sectionof this assessment looks specifically at the implicationsof ongoing agricultural policies for these forests andthe people who depend on them.

Agriculture and Rural Development Policies:Recent ExperiencesMajor policy changes have reshaped the agriculturalsector in recent years. In the late 1980s, a shift towardmarkets boosted production and food security. Theinitial policy focus was on meeting local food needs;agricultural growth stemmed from improved produc-tivity and increased use of fertilizers and chemicalinputs. Beginning in the mid-1990s, the national policyfocus shifted to development of a market-based, indus-

trialized agricultural sector. This change is reflected incurrent polices designed to diversify and intensify agri-cultural production; increase investment in irrigationand extension services; and promote forestry and agro-forestry. The following sections discuss the impacts ofsome of these policies on the vulnerable people andecosystems of Quang Nam.

Increasing Paddy Rice Production: Decision-makersat the district and provincial levels generally agree thatthe key to tackling hunger in the mountainous regionsis to increase paddy rice production. The tools for

increasing paddy production are financial support forland conversion, expansion of irrigation, and extensionservices. From 2001 to 2003, the area in paddy riceincreased by 534 ha in the six mountainous districts,and per capita production increased. However, theincrease in paddy rice has not reduced the dependenceof many poor households on use of sloping land forupland rice, nor improved their food security. The explanation for this lies, at least in part, in the fact that paddy rice area is not evenly distributedamong households.

The promotion of land conversion for paddy rice andthe emphasis on increasing productivity raise concernsabout soil erosion, resulting siltation, and waterdemand. Flat land suitable for paddy rice is foundprimarily near rivers, and plays an important role inprotecting river banks from erosion. A study of waterresources in Quang Nam (DONRE-WRMI 2003) foundevidence that rivers had been straightened in severalplaces, increasing the velocity of the flow and causingsevere erosion of the river banks. The ironic result of

this erosion is theloss of the flat landsuitable for paddyproduction. A second concernraised by theexpansion of paddyrice is the increaseddemand for irriga-tion, which couldlead to the construc-tion of more damsand reservoirs.Currently, no envi-ronmental guidanceis attached tofinancial support forland conversion.

Promotion of CashCrops: Crop diversifi-cation has takenplace in many partsof Quang Nam. In the

lowland region, farmers were encouraged to reduce thenumber of rice crops per year, in favor of mixed cropsof rice, maize and beans. Increased production of thesecrops is unlikely to promote poverty alleviation inQuang Nam, however. First, expansion of these cropstook place almost exclusively in the lowlands. Second,the high input costs and increased risks associated with their production make them unattractive to thevery poor.

Irrigation Development: Irrigation is one of the keyservices for development of paddy rice. Substantial

Figure 3

investments in irrigation for the midland and moun-tainous regions of the province have certainlycontributed to the increased production of paddy riceand improved food security. Some 70 irrigation projectswere planned for 2004, primarily small-scale damswhich serve 5 to 10 ha of paddy rice. (See Table).However, irrigation does not serve the hillside crops –upland rice and maize – that make up the bulk of thefood basket for the upland poor. Since only a smallfraction of the upland population has access to paddyland, many mountain communities, particularly thosewith large ethnic populations, are unlikely to benefitfrom irrigation investments. In terms of the environ-ment, it is difficult to foresee the impacts of new irriga-tion investments, given limited information on both theenvironmental impacts of existing dams and theregion’s aquatic biodiversity.

Provision of Agricultural Services: Governmentprovision of inputs and training are intended to boostagricultural productivity. Effective extension servicescould substantially reduce the vulnerability of the poorby introducing cultivation skills and reducing the risk

of crop loss. However, current efforts are not veryeffective in addressing the needs of the upland poor:(1) the extension service in these districts is under-funded and lacking in capacity; (2) extension isprimarily targeted to the lowlands, rather then to thosein greatest need; (3) new crop varieties have beenintroduced without regard for the ability or interest offarmers in adapting to new agriculture techniques; and(4) the extension service has emphasized productivityrather than sustainability. Environmental problemsassociated with agricultural production--includingproblems of production on steep slopes, soil erosion,and the high levels of pesticide and fertilizer requiredby the new varieties--have been largely ignored.

Forest Program: Forest program componentsincluded sedentarization, forest plantations, promotionof agro-forestry, and forest rehabilitation. There is aconsensus at the province level that the long-term liveli-hood of the mountain communities should be based onforest plantations and forest services, given the relativeabundance of forestry land. In the midlands, there issubstantial land suitable for tree plantations. Currently

5Nov 2005

Assessing the impacts of agricultural development on vulnerability

Type of Impact

■ Positively contribute to food security of the poor; however, the scale is small

■ Mixed between poor and non-poor

■ Negative on water■ Increased soil erosion

(when converting land)■ Increased pesticide and chemical

use for newcrops

■ Little contribution ormay even destabilizefood security of extremely poor

■ Negative on forest, land and water■ Increased soil erosion if large

plantations are established■ Increased pesticide use

■ Little contribution tolivelihoods of theextremely poor

■ Negative on land■ Increased soil erosion

■ Indirectly contribute to food security

■ Negative on forest and water

■ Level of impacts on forest and land is subject to the size of dams

■ Short-term contributionto food security

■ Negative on land and water■ Promotion of high-yield varieties

could lead to more soil erosion

■ Positive but constrainedby current policy on forestry

■ Positive on forest■ Would require policy changes

to succeed

Type of Impact

Major Agricultural Trend Promoted by Government Policies

Implication for Vulnerable Peoples Implication for Environment

Paddy Rice Expansion and Intensification

Cash Crop Promotion (maize, cassava)

Large-Scale AgriculturalProduction

Irrigation Development

Extension Service

Forest ResourceManagement

Level of Pro-Poor

Scale

S

M

M

S

L

S

Level Scale

S

M

S

S

L

S

In terms of level of pro-poor: (directly solve a problem faced by the poor, reduced vulnerability, food security)

Pro-Poor Mixed Results Unsure/Not Pro-Poor

In terms of level of environmental implication:High Medium Low

In terms of scale of the implication:Large Scale Medium Scale Small Scale

L M S

6Case Study: Vietnam

afforestation is being carried out under a programcalled 661 aimed at reducing pressure on the forest byestablishing sustainable forestry-based livelihoods.Forestry land (with or without forest) is allocated andcontracted to households or institutions for plantationsor forest protection. Compensation for afforestation is asmall cash payment plus shared benefits of the woodand NTFPs, which is not enough to support a forestry-based household. In the mountainous areas anothergovernment program (supported by the MOSAICproject) aims to allocate all natural forest land outsideof Special-Use Forest to communities. This will grantcommunity rights to forest lands, which shouldimprove their ability to make use of NTFPs and tocontrol illegal logging, poaching and extraction, andtherefore empower communities to pursue sustainableharvest of natural resources. This empowermentshould alter the current situation where their naturalcapital is exploited by ‘outsiders’. This provincial-level program will be implemented throughout the sixmountainous districts.

Implications for VulnerabilityThe table below summarizes the implications of agricul-tural development policies in Quang Nam for bothvulnerable peoples and places. In terms of vulnerablepeople, the policy on expansion of paddy rice supportedby small irrigation dams and extension in the moun-tainous region seem to have the greatest positiveimpacts for the food-poor, though it does not reach themost vulnerable populations. Promotion of cash cropsis primarily of benefit to the lowland and midlandregions. Agricultural development policies promotingcrop expansion and intensification give little considera-tion to the environment. Irrigation development andextension services are failing to address the needs ofthe upland poor who are farming on steep slopes.Sustainable management of forest resources, despiteconsiderable potential for stabilizing livelihoods,reducing poverty and conserving soil, has not beenimplemented in such a way as to meet the needs ofpoor communities. Major constraints are the policy oncash compensations and benefit-sharing amongfarmers, as well as the failure to recognize the value offorest products to communities or the values ofwatershed protection and biodiversity conservation.

ConclusionsSustainable use of land, water, and forests are crucialfor Quang Nam’s economic development and povertyalleviation, particularly in the mountainous regionwhere subsistence agriculture and forest products arecentral to the livelihoods of the rural poor. The QuangNam Biodiversity and Natural Resource ConservationStrategy (2005-2020) clearly identifies the conservationpriorities for this region of the province. These priority

places also provide the environmental resources andservices that are critical for the large impoverishedpopulation of the region. Agricultural developmentpolicies and forest management policies to date, manyof which are ongoing, have not addressed the require-ments of sustainability or poverty alleviation for themost vulnerable populations in these vulnerable places.

Policy ImplicationsThis review has led to the following conclusions:

■ Heavy investment in agriculture as the primarylivelihood in the mountainous region is likely to bevery expensive for its rate of return in terms ofpoverty alleviation. Difficult environmental condi-tions-steep slopes, shortage of arable land, largeirrigation requirements, proclivity for soil erosion-make agriculture unprofitable. Likewise, the socioe-conomic conditions which characterize vulnerablepeoples – limited economic resources, low adapt-ability – keep the returns to investment in new agri-cultural techniques low.

■ Current agricultural policies emphasize productivi-ty, with little regard to quality or environmental sustainability. Implementation of this model of agri-cultural development is likely to have high futurecosts. It will deplete the very resources – soil, forests, and water – on which agriculture depends,and which provide other critical services for thepoor population.

■ The mountainous region has a very valuableresource in its forests, which protect biodiversity,watersheds and soil in the region, as well as provid-ing resources to the province and communitiesalike (timber and NTFP). Making this sector workfor the poor is likely to be the most successful routeto poverty alleviation in the region. To date,forestry policy and programs have not developed astrategic vision for poverty reduction that makessustainable use of these resources. To be success-ful, forestry policy must allow the poor to benefitfrom activities that maximize the benefits of theecosystem services that the forest can provide. Anew, well targeted, provincial program seeks toaddresses the issues of land and resource allocationto communities, which is a step in the right direc-tion. In addition, appropriate extension services andmanagement and investment tools are needed bythe poor to improve their forest-based livelihoodswhile ensuring sustainability.

■ Several issues/problems require further monitoringand research. One is the need to develop betterindicators of poverty and vulnerability that reflectnot only income levels but other contributing fac-

tors, and to measure poverty and vulnerability at alocal level. Another is to improve the availability andaccuracy of environmental data, for example onwater quality, logging, poaching, and other issues.

■ There is little capacity at the provincial or districtlevel for environmental management. Careful con-sideration needs to be given to strengthening localcapacity and ensuring that the various levels of gov-ernment work together to promote sound environ-mental management that addresses forest degrada-tion, soil erosion, and water pollution.

Sources:Ausaid. (2002) Poverty Analysis in Vietnam.

Center for Information and Development Service (2004).Overview of Vietnam Economy, Vol. II, Su That Publishing.

DONRE. (2004) Quang Nam SO. Statistical data 1999 - 2004.

DONRE-WRMI. (2003) Feasibility Study for WaterManagement Plan for Quang Nam.

Long, Barney, Minh Hoang and Thai Truyen. 2005. AConservation Assessment of Quang Nam Province, CentralVietnam. WWF-Indochina, and Quang Nam FPD.

Long, Barney, et al. (2005) The People and Their Forest:Securing Forest-based Livelihoods in Quang Nam..MOSAIC Project, WWF-Indochina, Quang Nam FPD.

Poverty Task Force. (2002). Reducing Vulnerability andProviding Social Protection. Hanoi.

Quang Nam. (2004) State of the Environment Report 2004

Quang Nam People’s Committee 2005. Quang NamBiodiversity and Natural Resource Conservation Strategy2005-2020.

Song Thanh Nature Reserve Management Board andQuang Nam FPD, 2005. Song Thanh Nature ReserveManagement Plan 2005-2010.

Vietnam Household Living Standard Survey 2002 (VHLSS 2002)

WB-DFiD. (1999) Voice of the Poor.

World Bank. (2002) Vietnam Country Development Report.

World Bank. (2004) Poverty - Vietnam Development Report 2004.

WWF. (2002) People, Land and Resources in the CentralTruong Son Landscape.

WWF. (2003) An Assessment of Development Initiatives inthe Central Truong Son Landscape.

WWF. (2003) Biological Assessment of the Central TruongSon Ecoregion.

WWF. (2003) Socio-Economic Issues in the Central TruongSon Landscape.

WWF. (2004) Collection of the Literature Review for Sao LaAction Plan

WWF-Nguyen Thanh Hai. (2003) Sustainable LivelihoodAnalysis in the Central Annamites Ecoregion.

WWF-Vu Long. (2003) Assessment on Advantages andDisadvantages of Natural Forest Logging Ban in QuangNam Province.

7Nov 2005

WWF Macroeconomics Program Office

1250 Twenty-Fourth Street, NW

Washington, DC 20037-1175, USA

Phone: (202) 778 9752

Fax: (202) 293 9211

E-mail: MPO@wwfus.org

Website: http://www.panda.org/mpo

This program is carried out with support from:

Swiss Agency for Development and Cooperation

Swedish InternationalDevelopment Agency (SIDA)

©1986 Panda Symbol/WWF-World Wide Fund for Nature(also known as World Wildlife Fund)

MAC

ROEC

ONOM

ICS

for

Su

sta

ina

ble

Dev

elo

pmen

tPR

OGRA

M O

FFIC

EM

/P/O