Landholdings, livelihood choices and household income in the Red River Delta, Vietnam

Abstract

Land scarcity has frequently been cited as the primary barrier preventing rural households from pursuing better livelihoods in Vietnam and other developing societies. In this paper, we investigate the role of landlessness and landholdings in the choice of livelihoods and in household income in the Red River Delta, the most densely populated region in Vietnam. Using data from the 2018 Vietnam Household Living Standard Survey, our cluster analysis classifies five livelihoods pursued by local households, namely informal wage-earning jobs, formal wage-earning jobs, nonfarm self-employment, agriculture, and non-labor livelihoods. Non-laboring, agricultural, or informal wage-earning households earn less per capita income on average than formal wage-earning or nonfarm self-employment households, according to both descriptive and inferential statistical analyses. Our regression analysis demonstrates that land scarcity is not a significant obstacle preventing rural people from seeking gainful livelihoods in the region. The finding suggests that improving education and supporting non-farm activities should be high-priority government policies for local households with limited land and education. Such policies are expected to help them not only transform their livelihoods but also improve their economic well-being.

Keywords

• cluster analysis
• household livelihoods
• nonfarm households
• landlessness
• land shortage
• red river delta