Soil Erosion Central Vietnam

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The Economics of Soil Erosion and the Choice
of Land Use Systems by Upland Farmers
in Central Vietnam

Bui Dung The

December, 2001

Comments should be sent to the author, Bui Dung The at the Faculty of Economics, Hue University, 22 Phung Hung, Hue City, Vietnam.

Email: or

EEPSEA was established in May 1993 to support research and training in environmental and resource economics. Its objective is to enhance local capacity to undertake the economic analysis of environmental problems and policies. It uses a networking approach, involving courses, meetings, technical support, access to literature and opportunities for comparative research. Member countries are Thailand, Malaysia, Indonesia, the Philippines, Vietnam, Cambodia, Lao PDR, China, Papua New Guinea and Sri Lanka.

EEPSEA is supported by the International Development Research Centre (IDRC); the Danish Ministry of Foreign Affairs (DANIDA); the Swedish International Development Cooperation Agency (Sida); the Ministry of Foreign Affairs, the Netherlands; the Canadian International Development Agency (CIDA); the MacArthur Foundation; and the Norwegian Agency for Development Cooperation (NORAD).

EEPSEA publications are produced by Corpcom Services Sdn. Bhd. in association with the Montfort Boys Town, Malaysia. This program provides vocational training to boys from low-income families and home-based work to mothers. EEPSEA publications are also available online at


The author would like to thank the following individuals and institutions that assisted in the preparation of this study:

The Economy and Environment Program for Southeast Asia (EEPSEA), especially Dr. David Glover, Dr. Herminia A. Francisco and Dr. Nancy Olewiler for their invaluable guidance, comments and suggestions during all phases of the study.

Mr. Nguyen Van Phat, Dean of the Faculty of Economics, Hue University, for administrative arrangements and the research team, especially Mr. Pham Xuan Hung, Mr. Nguyen Le Hiep and Mr. Nguyen Van Cuong for their cooperation in the data collection.

The staff of the Department of Agricultural and Rural Development, Thua Thien Hue Province, for their cooperation and especially Mr. Tran Van Hien and Mr. Hoang Trung An for their support in collecting the much-needed data and information.

Dr. Thomas Enters, Dr. Kenneth M. Menz and Dr. William H. Greene for their technical advice.

The people of Xuanloc commune, especially the farmers of the sample group, for their support and cooperation in the field survey.

Table of Contents



2.0Objectives and Hypotheses4

2.1Research Objectives4

3.0Review of Related Literature4

3.1 Land Use Systems and Erosion4
3.2The Economics of Soil Erosion5
3.3 Economic Considerations in Land Use Systems6
3.4 Choice of Land Use System7


4.1 Research Objectives9
4.1.1Research Objective 19
4.1.2Research Objective 29
4.1.3Research Objective 311
4.2 Data Collection12
4.2.1Study Site12
4.2.2Secondary Data13
4.2.3Primary Data14

5.0Characteristics of the Study Site14

5.1 Location14
5.2 Biophysical Conditions15
5.2.1 Climate15
5.2.2 Land and Water Resources16
5.2.3Flora and Fauna17
5.3Socio-economic Characteristics18

6.0Characteristics of Respondent Farmers and Their Land Use Systems19

6.1 Policies, Programmes and Institutions Related to Land Use19 6.1.1New Economic Zone Policy20
6.1.2Sedentary Farming and Settlement (SFS) Programme20 6.1.3 Land Ownership20
6.1.4 PAM Programme and PR-327 Project21...
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