CLIMATE-SMART AGRICULTURE
IN THE MEKONG DELTA
Options for the future of agriculture in the coastal zone of the Mekong Delta


2


Table of Contents
1. Introduction ...................................................................... 10
1.1

Context and objective ................................................................ 10

1.2

Main activities ............................................................................ 10

2. Climate change impacts in the coastal zone .................... 12
3. Current and future production systems ............................ 17
3.1

General observations from field visits ........................................ 17

3.2

Field survey ................................................................................ 20

3.3

Alternative agricultural production systems ............................... 23

3.3.1

Assessing production systems on the basis of a cost-benefit-analysis ..................... 23

3.3.2

Characteristics of top-performing production models ................................................ 26

4. Overcoming adoption barriers .......................................... 30
4.1

Adopting barriers ........................................................................ 30

4.2

Overcoming adoption barriers.................................................... 33

4.2.1

Improving costs and logistics of establishing and ensuring future economic
success of alternative production systems (adoption barrier 1) ................................ 33

4.2.2

Improving availability and quality of technical support, information and advice
(adoption barrier 2) .................................................................................................... 36

4.2.3


Improving primary producer linkages with markets and relevant market
stakeholders (adoption barrier 3) ............................................................................... 38

4.2.4

Overcoming the lack of primary producer influence in the marketplace (adoption
barrier 4) .................................................................................................................... 40

4.3

Summary of main recommendations on how to overcome
adoption barriers .................................................................. 46

5. Cu Lao Dung .................................................................... 48
5.1

General information ................................................................... 48

5.2

Field survey ................................................................................ 50

5.3

Major constraints in production systems in Cu Lao Dung.......... 50

5.4

Farmers response to current and new agricultural production
systems in Cu Lao Dung ...................................................... 54


5.5

Proposed production systems for Cu Lao Dung ........................ 56

3


5.6

The MD-ICRSL Project .............................................................. 58

5.6.1

Project idea ................................................................................................................ 58

5.6.2

Addressing adoption barriers – recommendations for Cu Lao Dung ........................ 59

5.7

Conclusion ................................................................................. 62

4


List of Tables
Table 1: Trend of soil feature changes in the Mekong Delta during the past 30 years ................................ 14
Table 2: Districts of four study provinces that are in three ecological zones ............................................... 21

Table 3: 47 Criteria for rating the production systems ................................................................................. 24
Table 4: Overall performance of the 17 production systems against seven key criteria .............................. 25
Table 5: Ranking of alternative production systems according to water zones ........................................... 26
Table 6: Ranking of alternative production systems according to DARDs .................................................... 26
Table 7: Characteristics of different shrimp production models .................................................................. 27
Table 8: Measures to overcome adoption barriers....................................................................................... 46
Table 9: Area per agricultural production model in 2015 in Cu Lao Dung district ........................................ 49
Table 10: Cropping systems suggested by the study team for Cu Lao Dung ................................................ 56

List of Figures
Figure 1: Literacy rate in Vietnam and the Mekong Delta by gender ........................................................... 15
Figure 2: Ethnicity in Soc Trang, Bac Lieu, Ca Mau and Kien Giang Provinces in 2014 ................................. 16
Figure 3: Aquaculture production in Vietnam and the Mekong Delta 1995-2013 ....................................... 18
Figure 4: Most important adoption barrier when converting to new production system, as indicated
by farmers (%) ............................................................................................................................... 30
Figure 5: Educational status of respondents ................................................................................................. 50
Figure 6: Current challenges for agricultural production in Cu Lao Dung, as stated by interviewed
farmers (%) .................................................................................................................................... 51
Figure 7: Farmers' response to alternative agricultural production systems (PS) in Cu Lao Dung ............... 54
Figure 8: Farmers' suggestions to improve agricultural production in Cu Lao Dung .................................... 55
Figure 9: Proposed MARD / World Bank project for Cu Lao Dung ................................................................ 59

5


List of Abbreviations
BCR

Benefit-cost-ration


CBA

Cost-benefit-analysis

DARD

Department of Rural Development and Agriculture

GDP

Gross Domestic Product

GIZ

Deutsche Gesellschaft für Internationale Zusammenarbeit

Ha

Hectares

ICMP

Integrated Coastal Management Programme

IRRI

International Rice Research Institute

MARD


Ministry of Rural Development and Agriculture

MD-ICRSL

Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods Project

MIS

Market Information System

USD

United States Dollar

6


Executive Summary
The study “Climate-Smart Agriculture in the Mekong Delta” was conducted from January to
September 2016 and focused on the coastal zone (up to 30 kilometres inland) of four coastal
provinces of the Mekong Delta, namely Soc Trang, Bac Lieu, Ca Mau and Kien Giang. Due to its
location and geographic features, the coastal provinces of the delta are particularly vulnerable
to climate change influences. Associated problems include rising sea levels, salinity intrusion,
periodic flooding and drought, disruption in the annual supply of silts due to dam-building and
increased irrigation off-take along the course of the river as it flows from south east China
through Laos, Thailand and Cambodia before it enters the extreme southern provinces of
Vietnam.
The overall objective of the study was to evaluate the potential of alternative agricultural
production systems to replace rice as the main cash crop in the region. This evaluation is
necessary in light of changing conditions which mitigate against the growing of rice at its

current level. In some locations rice growing will no longer be possible. Each production
system’s potential was assessed on the basis of its financial viability. To this was added
assessments of alternative production systems against five other key criteria – technical,
environmental, social, economic, political; all of which need to be taken into account to arrive
at a listing of production system options of what can be recommended to farmers who are
ready, willing and able to adopt one or more of them on their farms.
The methodology used by the study was based on a detailed survey of 190 selected
respondent farmers and communes in the four selected coastal provinces. This was conducted
based on detailed questionnaires which were developed by the study team to extract relevant
information about current and alternative production systems that have potential to provide
farm families in the region with a viable income under expected changing circumstances
arising from climate change. The resultant field work was complemented by comprehensive
desk studies of relevant literature and reports from other initiatives targeted on the region
under the auspices of national and international agencies.
From this and the follow-up assessments emerged a priority listing of the most likely
alternative production systems that show the best potential to replace current ones (mainly
rice). The five as most suitable rated alternative (to mono-cropping rice) production systems
are: Shrimp-rice rotation; semi-intensive shrimp production; mangrove aquaculture; doublerice rotation and livestock-based systems (poultry, pigs etc.) in this order. Not all of these five
systems are similarly suitable for the three zones of fresh water, brackish water and salt
water. On the whole, 17 systems were evaluated and others than the five mentioned above can
be taken into consideration if one looks at only one specific zone.
The report then reviews the main adoption barriers that have to be overcome by farmers in
the region if they want to switch production systems, which is especially relevant for the many
thousands of smallholders who depend on their land holdings for their livelihoods as they face
what are for them critical decisions which will have far-reaching impacts both for themselves
and the economy of the region.
Adoption barriers are categorized under four broad headings:
•

The cost involved in changing from current to new alternative production systems,

which have to be considered in tandem with difficulties most farmers have in
accessing affordable credit to help them effect successful transition.

7


•

Establishing alternative production systems requires learning new technologies
and practices, as well as acquiring new skills. Providing farmer access to
information and training, and having adequate supports available from extension
and other sources is a considerable challenge that has to be addressed to ensure
that significant investment in infrastructure ultimately converts into increased and
stable income for farmers.

•

The ultimate test of success will be how well farmers who transition to alternative
production systems succeed in placing products in the market. In doing this, new
producers can expect to have to compete with existing producers and suppliers
who are likely to have established comparative advantage. Thus it will be
necessary for new producers to produce to the highest standards and to be as
competitive as possible from the very beginning.

•

This will be helped by primary producers becoming better connected and more
engaged with their markets and with final consumers. Their objective must be to
exert more control over their own destinies. This is likely to require them to form
alliances not just with other producers, but also with other market stakeholders

(processors and market operators) thereby developing their businesses to the
mutual benefit of all stakeholders.

The report makes recommendations under each heading.
Section 1 deals with recommendations on how change can be supported in terms of funding
and management of the process. The role, availability and capacity of extension services (both
public and private) as agencies providing support to change to and establish new production
systems is included in this.
Section 2 considers the learning and adoption process involved in successfully changing from
current to new production systems. This includes the adoption of new relevant technology and
practices which brings the role of extension, education and adaptive research into sharp focus.
Section 3 deals with market engagement and the crucial role of the market for ensuring that
new production coming from newly adopted production systems is successfully and
competitively sold in the market, thereby protecting and enhancing primary producer
livelihoods into the future.
Section 4 discusses and makes recommendations on ways and means for primary producers,
as the weakest and most vulnerable player in the market place, to successfully engage with
each other and with other market stakeholders in a way that gives them an appropriate share
of control and influence in the marketplace in order to help them defend their economic
interests in a fair and equitable way. Primary producers need to come together to cooperate
with a view to increase their presence and influence in the marketplace against other
stakeholder groups who are much better positioned to wield more influence due to their
economic power.
There are a number of ways of doing this; cooperatives being possibly the most obvious. There
are others, such as forming business partnerships with specific service providers, clustering
around specific processing facilities with a view to increase markets and assuring required
production levels and value of specific commodities, to the benefit of all concerned.
Under each of the foregoing, recommendations are included for developing and making
available capacity building programmes which target each of the stakeholder elements that
make up the market paradigm – producer, processors, market operators and service

providers. Here as well, the need for extension and other relevant service providers to adapt

8


to the new realities and challenges of climate change is a critical issue that needs to be
incorporated into a complete capacity building programme for all key stakeholders in the
sector.
Finally, the document goes on to discuss possible solutions and recommendations to work in
tandem with the World Bank-funded “Mekong Delta Integrated Climate Resilience and
Sustainable Livelihoods Project” (MD-ICRSL). This project has been approved by the
Government of Vietnam in April 2016 and outlines significant planned investments in
infrastructure (roads, communications, water control, irrigation, etc.) which are designed to
address identified issues arising from climate change in the region. Specifically, planned sea
defence and infrastructural investment in order to support agricultural transition in Cu Lao
Dung (which is an island and a district of Soc Trang province) is an immediate target for this
programme.
The study makes specific commentary and recommendations on the situation of Cu Lao Dung,
located in the vulnerable delta estuary. The island is a microcosm for the coastal region
demonstrating many of the relevant issues facing the overall delta region. These include
salinity intrusion and the risk that rising sea levels pose to fresh water supplies across the
region, as well as addressing the issue of mangrove forest protection and the role this has to
play in the overall approach to mitigating the impact of climate change. Cu Lao Dung is
therefore a useful testing ground which has been chosen by the World Bank and the Ministry
of Agriculture and Rural Development (MARD) to immediately implement a coherent
protection and development programme as indicated in the feasibility study of the MD-ICRSL
project. Planning also envisages developing the eco-tourism potential of the island as a unique
location in the delta region.

9



1.

Introduction

1.1

Context and objective

This study is part of a series of studies carried out under the Integrated Coastal Management
Programme (ICMP), which is funded by the governments of Germany, Australia and Vietnam,
and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
The study “Climate-Smart Agriculture in the Mekong Delta” is under the responsibility of GFA,
assigned by GIZ, in collaboration with the line agency and local counterpart organisation, the
Vietnamese Ministry of Agriculture and Rural Development (MARD), which provides
coordination with other projects being conducted by other interested agencies like World
Bank and the International Rice Research Institute (IRRI).
The overall objective of this study is to identify financially attractive, resilient and sustainable
agricultural production systems in the coastal zone (up to 30 kilometres inwards) of the
Mekong Delta which could constitute alternatives to and improvement of the current ricedominated systems in the delta and which have positive impacts on poverty and rural
livelihoods. Thereby, the study informs the transformation to more productive and climatesmart livelihood systems as envisaged by the Mekong Delta Plan. Hence, the study would
inform the design and implementation of relevant development programs, such as the Mekong
Delta Integrated Climate Resilience and Sustainable Livelihoods Program supported by the
World Bank. The study should also inform the broader agricultural development agenda,
including the MARD-led agricultural restructuring of the Mekong Delta and the Mekong Delta
Climate Resilience Initiative (MECRI).
The study addresses the following key issues and questions:
•


How are the current common agricultural production systems, which are focusing
mainly on rice, affected by changing environmental (and socio-economic) conditions
(e.g. sea level rise, flooding, salinity intrusion, droughts) in the coastal zone of the
delta?

•

What are the 4-5 most promising alternative production systems which account more
explicitly for the changing environmental and socio-economic conditions?

•

What are likely adoption barriers for these identified alternative production systems
and how could they be overcome?

•

What type of capacity building measures are needed to facilitate the transformation to
more sustainable production systems?

•

What measures would be needed to facilitate an integration of smallholder farmers
into the value chain (and what could be the role of the public vis-à-vis the private
sector)?

1.2

Main activities


Phases 1 and 2 (January – May 2016)
The study started in January 2016 with the kick-off of the first phase, including a mission of
the team leader to Vietnam. Based on the inception report, phase 2 of the study started in

10


March 2016. The main activity of the second phase was to conduct of a field survey in which
190 respondent farmers, both individual and members of communes, were interviewed via a
specially designed questionnaire by the project team (team leader and three local experts). In
tandem, the project engaged in a comprehensive study of relevant literature and reports from
other projects and studies focusing on the Mekong Delta and climate change issues which
impact on the region.
The project survey with 190 farmers confirmed the production potential of alternative systems
that best respond the changing requirements of the region as it met the challenges of climate
change. These production systems have the potential to replace current systems (particularly
rice) that in many areas will not be able to perform into the foreseeable future due to salination.
The data collected highlights the absolute need to adopt a two-pronged approach to economic
development of the region and makes the following recommendations:
•

•

Investment in infrastructure is needed to offset the impacts of salinity being driven by
the twin issues of rising sea level and climate change which increases the risk of seasonal
flooding and drought. Much work in this direction is currently underway, with more
planned under the various programmes.
A corresponding focus and budgetary allocation needs to be made for enhanced extension and information services to primary producers as well as other key stakeholders in
the concerned value chains, both old and new, that will feature in the region over coming
decades.


Phase 3 (July – August 2016)
The main activities of Phase 3 were to:
•

Conduct a cost-benefit analysis of the main 17 production systems currently being
grown in the coastal region in order to identify the most suitable alternatives to
rice or other crops that are heavily influenced by climate change;

•

To identify and report the main adoption barriers preventing farmers from
changing from current to new alternative production systems which have the
potential to continue to provide them with income under changed circumstances
arising from climate change;

•

To consider measures targeted on overcoming identified adoption barriers and to
discuss these with a range of stakeholders, as well as ICMP, in course of field visits
and meetings;

•

To indicate potential business models for selected alternative systems and concrete
examples how to implement them.

•

In the case of Cu Lao Dung, to explore how best to engage with ongoing and

planned investment programmes under the auspices of World Bank and
Vietnamese Government.

On this basis, the final report of the study was submitted in September 2016.

11


2.

Climate change impacts in the coastal
zone

The Mekong Delta region is regarded as Vietnam’s primary agricultural region, which makes a
significant contribution to overall agricultural output. The Mekong Delta is home to 17 million
people and is Viet Nam’s most important agricultural region. Producing 55% of the country’s
rice, the Mekong Delta feeds more than 245 million people worldwide. Besides rice, the
Vietnamese aquaculture sector has risen by around 250% in the past 10 years, and the
Mekong Delta accounts for 70 percent of national aquaculture products. The Mekong Delta is
annually producing 2.4 million tons of aquaculture products worth about USD 3.8 billion,
compared with 6.2 million tons of rice worth USD 2.7 billion.

Climate change impacts in the Mekong Delta
Climate change is a dynamic process which is impacting on the delicate ecosystem in the
Mekong Delta region, large parts of which are no more than 1 metre above sea level in the
most vulnerable coastal region. As such this region is very subject to rising sea level and water
inundation due to seasonal flooding arising from annual rainfall in the Mekong river basin
which flows through seven countries as it flows from China to enter the sea in Southern
Vietnam.
Rising sea levels which are a consequence of global warming are having increasing impact in

the delta, with some sources predicting that as much as 39% of the region could be
underwater by the end of this century.
Increased salinity intrusion arising from rising sea levels is already impacting on traditional
cropping patterns in the region, most notably on rice production, which is the main economic
crop associated with the region as rice is not tolerant to salt.
Rising sea levels and associated salinity are therefore over coming decades expected to exert
increasing pressure on farmers to change from current production models to systems that are
better suited to changed ecological and environmental conditions. Increasingly this will
require farmers to adopt new enterprises better suited to much changed conditions if they
wish to maintain their incomes in an economically sustainable way, and in a way that will also
be ecologically and environmentally sustainable.
This foresees significant reduction in rice growing in favour of alternative production systems
that are economically viable as well as environmentally sustainable, to support dependent
families and communities. In this transition, farmers and communities will need to be
encouraged and supported in successfully changing and adapting.

Recent experience
Recent experience indicates that weather patterns which impact on the region are changing, so
that climate change is very much a reality in the fragile Mekong Delta ecosystem. The global
phenomenon known as El Nino has a profound impact on weather patterns across the globe,
causing cyclical fluctuations in weather. Specifically this has influence on the pattern of supply
of water coming into the Mekong basin from one year to the next.

12


An example of this, reduction of water flow into the river basin, as experienced in the first half
of 2016, allowed salt water inundation to impact further upstream (up to 70 km in some
areas), thereby increasing areas of saline and brackish water zones further inland than was
expected. During spring of 2016, the Mekong Delta saw severest drought and incidence of

salinity intrusion in 90 years.
The frequency of seasonal drought and monthly drought is increasing in the delta, while sealevel is also rising. It is estimated that future climate change will cause or contribute to more
intensive salinity intrusion, thereby destroying the vegetation and biological diversity of the
ecology of mangrove forests, especially in Kien Giang and Ca Mau provinces which are
considered to be most at risk.
Climate change related phenomena are further exacerbated by man-made interventions which
cause increased off-take of water from the overall river catchment area. These include
infrastructural projects (dam, reservoir and irrigation system building), most of which are in
other jurisdictions and therefore outside of the effective control of Vietnam. These have a big
impact on the volumes and timing of water coming into the delta region.
Changes in the nature of water flow resulting from these diversions of supply also impact on
what was considered the natural annual supply of silt which traditionally enhanced and
renewed fertility in the delta region. Increasingly, significant amounts of enriched silt are
simply not reaching the delta region at all, but are being diverted and trapped along the way
by man-made structures.
Finally, the use of chemical fertiliser, pesticides and insecticides, much of it unregulated all
along the river, results in high levels of chemicals and pollution, some of it toxic, finding its
way into the delta’s ecosystem, with the potential to create serious environmental and health
problems. Not the least of these is the potential they have to contaminate food products being
grown in the delta. This calls for all countries that have populations that rely on the Mekong
river for their economic wellbeing to coordinate their efforts in the management and
regulation of what is a most valuable but vulnerable resource for all concerned.

The coastal zone
The coastal zone of the delta in which the four selected provinces are located is characterised
by a dynamic process of accretion (due to silting), and erosion. The annual land loss due to
erosion in some areas may reach 30 metres per year while land created annually through
accretion in other areas may be as high as 64 metres. Six of the 13 provinces in the delta are
situated on its coastal zone, which is divided into 3 ecological zones, namely fresh water,
brackish water and saline water zones.

This study focuses on the coastal area in each province which extends 30 km inland and which
is subjected to the twin and sometimes conflicting influences of salination intrusion, driven by
rising sea levels, and annual floods coming down the Mekong River. These water volumes are
impacted by both natural and man-made factors.

Soil
The Mekong Delta has many types of soil but changes in their features have been observed due
to heavy land-use and insufficient nutrient supply as shown in Table 1.

13


Table 1: Trend of soil feature changes in the Mekong Delta during the past 30 years
Before

Present

Grey soil

Degraded grey soil

Medium acid sulphate soil

Alluvial soil or alluvial soil poor in nutrients

Potential acid sulphate soil

Alluvial soil on actual acid sulphate soil

Soil affected by salinity


Alluvial soil on saline soil

Saline soil

Alluvial saline soil

Source: IUCN

Degraded grey soil area for example has increased while the area of acidic soil has declined.
Saline soil area declined at first for two decades but after that has increased again due to the
weaker flows coming from upstream Mekong during the dry season.
It may be concluded that there has been soil degradation in the delta although care needs to be
taken in drawing further conclusions from this. Soil degradation does not necessarily cause
irreversible damage although it may be prudent for both government and donors to
immediately plan and implement actions that mitigate or adapt to climate change.
Soil degradation is a broad term for declining soil quality which includes deterioration in
physical, chemical and biological properties of soil; as well as a long-term process in which
both soil erosion and nutrient decrease are part.
Land degradation refers to a reduction of the capacity of the land, together with factors such
as climate, topography, soil, hydrology and vegetation which impact on productive capacity. It
is more than just a physical or environmental process. Inevitably it has socio-economic
consequences.

Water, watershed and environment
The quantity of Mekong Delta water resources is declining and recently observed trends are
summarised as follows:
Reduced water volume: The volume of flood water coming to the delta has declined, and the
peak flood-level observed for example in Chau Doc station in 2010 was the lowest in 85 years.
Reduced water quality: The delta water content (g/m3) has not changed significantly but the

total sediment load coming to the Mekong Delta has declined due to the reduction of water
volume passing through. The water has become more polluted with urban waste. This last is
possibly reversible.
Change in water seasonality: The flood season starts later than before and floods also come
unexpectedly.
Wild caught fishery: There is a strong relationship between peak water-level and wild fishery
production. The wild-caught fishery resource has declined as a result mainly of water-level
decline and overexploitation.
Mangrove forest reduction: Many mangrove areas during the past 30 years have been
converted to aquaculture mainly for raising shrimp. Most of the natural melaleuca and
grassland areas have been converted either to rice agriculture or replaced with planted

14


melaleuca. Scattered protected areas have been established at biodiversity hotspots; while
natural habitats outside of these protected areas have almost totally disappeared due to the
expansion of agriculture and aquaculture. Habitats inside protected areas are semi-natural.
Wetland habitat quality decline: This is mainly due to poor management of hydrology regimes
that created and support the delta’s seasonally-inundated wetland ecosystems.
Decline in peat area and quality: Peat land is mainly distributed in the U Minh region. The total
peat area in 1962 of U Minh was about 90,000 ha but at present only about 12,000 ha remain
in U Minh Ha National Park and U Minh Thuong National Park and their buffer zones. Peatlayer depth has also declined significantly due to poor management practices which have
resulted in peat fires and oxidation.
Gender issues
Official data on literacy shows that 93% of women in the Mekong Delta are literate compared
to 96.4% for men. The national average is 94.7% for both men and women.
Illiteracy is more prevalent amongst women in the Mekong Delta than elsewhere in Vietnam.
Literacy is closely linked to poverty and is an important indicator of social vulnerability as not
being literate reduces access to information and services.

Figure 1: Literacy rate in Vietnam and the Mekong Delta by gender
98

96,4

%

96

94,7

94

93

92
90
Vietnam

Male

Female

Source: GSO, 2014

This may have implications for government and donor funding allocation decisions. Many
studies including those by the Food and Agriculture Organisation have unambiguously
concluded that the key contributor to sustainably improving household welfare is more
related to the female-literacy level than that of male income. It may therefore be prudent for
the government and donors to target actions aimed at improving female literacy in order to

improve the overall welfare of the women which in turn will have the effect of improving the
welfare of all household members, including adult males and children.
This also takes into account the positive role that females (wives, partners, mothers) in the
household can play in keeping accurate records, analysing farm business returns and figures
as well as monitoring/controlling cash flow related to the efficient day to day running and
management of the farm business.

15


Ethnic issues
While there is understandable reluctance to belabour this social aspect, there are areas in the
region where ethnicity needs to be considered.
One comment given in Kien Giang referred to the number of holidays (non-working days)
among the Khmer community as cause of concern for processing and planning of added value
development of primary products.
The ethnic minority distribution is uneven across the provinces.
Soc Trang and Kien Giang provinces have the largest ethnic minority populations while Ca Mau
has the smallest population as shown in the following table.
Figure 2: Ethnicity in Soc Trang, Bac Lieu, Ca Mau and Kien Giang Provinces in 2014

Soc Trang

35,76

Bac Lieu
Ca Mau

11,10
4,15


Kien
Giang

14,98

Source: Provincial statistical year book, 2014

Soc Trang province, which has by far the largest ethnic minority percentage, also has the
highest number of income poor of the four target provinces, suggesting that ethnicity and
income poverty are correlated.

16


3.

Current and future production systems

3.1

General observations from field visits

The numerous field visits conducted within the study allow for several general observations
on the ability of farmers to transition to possible new production models which may be more
suitable under changed environmental conditions.
Cost of adopting new production systems: Adapting to other alternative production systems
will present challenges which will need considerable support from supporting agencies; first
among these are DARD extension services, government and financial support services, as well
as other relevant stakeholders who can help farmers learn new practices which will help to

successfully transition from current to chosen alternative production system.
Affordable credit: The cost of establishing new production systems is high and is perceived
by prospective producers as not being so well supported from currently available credit and
investment packages. This will need to be addressed by future support initiatives.
Note: As established by the study team in discussions with the local DARD offices, the cost of
establishing intensive shrimp across the region is circa 129 million VND/ha (USD 5,800).
Changing to aquaculture is perceived to be the option requiring the highest investment.
Environmental considerations: In this fragile delta region, ecological considerations have to
be accorded high priority by farmers as they adapt to changing conditions. The farm input
supply (agrichemicals, fertiliser, insecticides, herbicides etc.) sector needs to be monitored
and regulated if high levels of chemicals in food products and the delta environment are to be
avoided. The agri-sector is particularly open to this arising from the relatively free flow of
such materials through the markets supplying farmers.
Market considerations: Production decisions need to be made in line with market
requirements, and more crucially with market demand. This will require the establishment
and operation of an effective market information system (MIS) to advise producers as they
make their production decisions in an effective and timely way.
Aquaculture, and in particular shrimp production is perceived to have “limitless potential” on
domestic and export markets, despite the stringent conditions that attach to exporting the
product. Aquaculture is a fast growing production system in the coastal provinces of Mekong
Delta which accounts for most of the country’s shrimp production.
In a relatively short period, Vietnam has become a significant and well established player on
export markets for shrimp. It is currently the second ranking exporter by volume. See
following graph which highlights the growth of shrimp production (most of it in the Mekong
Delta) since 1995.
Shrimp, especially extensive shrimp, is a high value commodity. There is considerable
potential for premium value organic shrimp on export markets which Vietnam can target.

17



Figure 3: Aquaculture production in Vietnam and the Mekong Delta 1995-2013

Source: VSO 2015

Extension services (DARD): While DARD in some of the provinces visited see themselves to
be broadly adequate to the task of advising and supporting transition to alternative
production systems, there is need to look critically at areas of their services provision to
primary producers in meeting current and future challenges.
The problem is not so much DARD’s staffing levels which seems quite adequate (3 advisers to
each commune), as with how well equipped advisory personnel are to advise and guide
farmers. Increasingly, they need to be able to advise on a range of production systems, many of
which are outside of their current professional competence. This requires advisers to increase
their knowledge and capacity on latest relevant technology and practices on what are for them
new production systems.
Provision of more resources (personnel, financing, transport, IT support, communication
mechanisms etc.) will be needed to meet the requirements of client farmers (especially smallholders), who need considerable support as they transition from current to new production
systems.
Turning farmers into farm business managers: More emphasis and support will be needed
to upskill farmers on enterprise management (financial as well as physical) to successfully
transition to new alternative production systems. Increasingly, producers need to regard their
farm enterprise as farm businesses to be managed in a business-like way.
To do this they need training in a range of activities – record-keeping, cost and income
monitoring and analysis of overall financial performance to help plan the future development
of their farm business. In this they will have initially to rely on extension services to assist
them in the basics of recordkeeping and financial analysis.
Market awareness: Increasingly DARDs needs to position themselves to be market aware and
to advise client farmers on planning their production in a market-led way. The big problem
adopting new unfamiliar production systems from a farmer perspective are the difficulties
new producers are likely to encounter finding and engaging with markets for new products.

DARDs need to help minimising risk of over-production of products due to lack of market
awareness in a very fragmented supplier base made up of many small scale suppliers. This
manifests itself in fluctuations in price which puts producer incomes at risk.

18


Producers mainly rely on middle-men and agents to get their products to market. These may
not have producers’ best economic interests in mind. There is need for more producer
engagement with their markets to help them promote and defend their economic interests.
Environmental awareness: DARDs are likely to be the first providers of advice and support
to their farmer clients on how to manage their natural resources – water, soil and land – in an
ecologically responsible way.
Primary producer linkages with processors and other market operators: There is a
marked lack of trust between processors and primary producers which explains why there is
currently a very low incidence of supply contracts between primary producers and processors.
Many processors prefer to deal with middlemen and agents on whom they rely to police and
monitor quality issues.
The experience of supply contracts with suppliers, as quoted during field visits to processing
plants, is generally not positive so far. Processors met cited incidence of supply contracts
made at the start of season, being broken because prices were better elsewhere.
Debts (for seed and other inputs/services supplied) were left unpaid, while product was sold
to competitors.
The study team observed that processors are inclined to perceive that they have more control
over procurement of raw material, as well as key issues such as quality, delivery scheduling,
etc., if they deal through middle-men.
Dealing through middlemen/agents is also logistically easier for processors due to much
reduced administration with single agents who can source product from multiple suppliers,
and who can be made responsible for monitoring and applying quality standards in line with
requirements.

Some middle men have built good relationships with both producers and processors. They are
providing good service to both, a fact which any emergent farmer grouping (cooperative or
other) hoping to replace or compete with will have to take into account if they contemplate
forming groups targeted on market engagement.
Current cooperative operation: Cooperatives as operated in delta are not really operating as
commercial entities focused on providing members with economic benefits. So-called “large
field” cooperatives (for rice) are more focused on aggregating land and input usage, as well as
integrating the transfer of production for processing and export. Individual member producers
are not so much involved in determining policies within these entities, and feel somewhat
disengaged from the overall marketing of the product, with very little control over the level of
income arising; they are still essentially “price-takers” in the overall scheme of things. These
cooperatives are more extensions of state systems, targeted on influencing production in line
with national production planning (to meet export targets etc., rather than producer
objectives which are focused on increasing income).
Cooperatives met during field visits are not so well able to engage with financial institutions
on their own or members’ behalf. As economic entities, they have little or no assets (apart
from member contributions), which means they have little or no collateral value to bring to
negotiations with banks.
As observed by the study team, the cooperatives met are subject to control and influence from
local authorities. These are not the kind of commercially-focused, member- and market-led
entities envisaged in the recommendations for cooperatives being made in this document.

19


Leadership: There is need to find leadership potential among primary producers to find
people who have the capacity to lead and drive forward commercial initiatives that can be
agreed with other producers, and who are capable of engaging with other market operators
and processors.
This needs to be coupled with identification of viable economic market related activities, as

chosen by members that have potential to accrue economic benefit to members. Well
operating cooperatives need to be member-initiated, -managed and -led commercial
organisations that link primary producers with markets in a way that allows them to defend
their economic interests on an equal footing with other market stakeholders.
Gender issues: During visits and meetings, gender did not emerge as a major problem issue
across the region. It was noted that currently there are more women attending DARD courses,
though a lack of female participation in courses on aquaculture was noted by some DARD
offices.
There seems to be more interest in livestock husbandry among women, which indicates
women are the main practitioners of these enterprises in households. DARDs agreed that
amongst others in the areas of farm and production system recording, account keeping and
monitoring, women participation has a positive role to play.

3.2

Field survey

The field survey was conducted by the project team during March and April 2016 in the
coastal region (up to 30 km inland) of the selected four provinces Soc Trang, Bac Lieu, Ca Mau
and Kien Giang.
190 respondent farmers and communes were visited and interviewed by means of
questionnaires which were designed by the team to facilitate analysis and understanding of
the agricultural sector in the Mekong Delta. This involved collating information related to a
series of factors like crops planted, production inputs, yields, livestock husbandry, responsible
household members etc. which need to be considered in mapping out the future development
of agriculture in this ecologically sensitive region. This is key to determining how best to adapt
to climate change processes that have already started to impact on agricultural production and
on livelihoods in the region, and which will have to continue to adapt as time goes on.
More than 60% of the interviewed farmers were engaged in rice production, about one third in
aquaculture production, and the rest in the production of other crops.

The survey is an indicator of what is happening in the agricultural sector arising from climate
change events and trends which are dynamic and ongoing. As such it conveys perceptions
from the front line, from people who are the first to experience what is happening and who
need to be helped and supported to adapt to changing circumstances which most directly
impact on their livelihoods.
Results from the survey will be drawn on in the following pages to highlight key issues.

Water zones (fresh, brackish or salt water)
The following table indicates how the districts of the four provinces are distributed in the
three water zones which have a huge influence over what production systems can be
implemented. As these change under the influence of climate change, farmers will have to
make choices on how to best adapt.

20


The table also indicates areas where seasonal flooding and droughts cause zones to fluctuate
between the water composition, which calls for flexible management and husbandry
responses from affected farmers.
Table 2: Districts of four study provinces that are in three ecological zones
PROVINCE

COMMUNES BELONG TO
DISTRICT
SALT WATER ZONE

Hong Dan

BRACKISH WATER ZONE


FRESH WATER ZONE

Vinh Loc, Vinh Loc A, Loc
Ninh, Ninh Thanh Loi, Ninh
Thanh Loi A

Ngan Dua, Ninh Quoi, part of
Ninh Quoi A, part of Ninh Hoa

Phuoc Long

Phong Thanh Tay A, Phong
Thanh Tay B

Phuoc Long, part of Vinh
Phu Tay, part of Phuoc
Long town

Part of Vinh Phu Tay, Vinh
Thanh, Vinh Phu Dong, Hung
Phu, part of Phuoc Long town

Gia Rai

Ho Phong, Tan Phong, Tan
Thanh, Phong Thanh, Phong
Thanh A, Phong Thanh Tay

Part of District 1, part of
Phong Tan


Part of District 1, part of Phong
Tan, Lang Tron, Phong Thanh
Dong

Dong Hai

Whole of the district

Hoa Binh

Vinh Hau, Vinh Hau A, part
of Vinh My A, Vinh Thinh,
part of Hoa Binh town

Minh Dieu, Vinh Binh, part of
Vinh My A, part of Hoa Binh
town

Vinh Loi

part of Hung Thanh, part of
Long Thanh

Chau Hung, Chau Hung A, Chau
Thoi, Hung Hoi, Vinh Hung,
Vinh Hung A, part of Hung
Thanh, part of Long Thanh

Bac Lieu town


District 2, District 5, Nha
Mat, Hiep Thanh, Vinh
Trach, Vinh Trach Dong

District 1, District 7, District 8

Bac Lieu

Ca Mau

Thoi Binh

6 months are in Brackish
water (dry season)

6 months are in Fresh water
(rainy season)

Ca Mau

6 months are in Brackish
water (dry season)

6 months are in Fresh water
(rainy season)

U Minh

6 months are in Brackish

water (dry season)

6 months are in Fresh water
(rainy season)

Tran Van Thoi

Song Doc

Tran Van Thoi, Khanh Dinh
Dong,Loi An, Phong Dien,
Phong Lac

Khanh Binh, Khanh Binh Tay,
Khanh Binh Tay Bac, Khanh Hai,
Khanh Hung, Khanh Loc, Tran
Hoi

Phu Tan

whole of the District

Cai Nuoc

whole of the District

Dam Roi

whole of the District


Nam Can

whole of the District

21


PROVINCE

COMMUNES BELONG TO
DISTRICT
SALT WATER ZONE
Ngoc Hien

whole of the District

Kien Luong

Part of the district

Part of the district
whole of the District

Giong Rieng

whole of the District

Tan Hiep

whole of the District


Rach Gia city,

whole of the District

An Bien

Part of the district

Vinh Thuan
Hon Dat

Part of the district

Go Quao

Part of the district

Part of the district

Part of the district

Part of the district

Part of the district

Part of the district

Part of the district


Part of the district

whole of the District

Giang Thanh

Part of the district

An Minh

Part of the district

Ha Tien

whole of the District

Kien Hai

whole of the District

Phu Quoc

whole of the District

Part of the district
Part of the district

Ke Sach

Whole of the distict


Chau Thanh

Whole of the distict

Soc Trang
town

Whole of the distict
4 months are in brackish
water

4 months are in fresh water

Thanh Tri

6 months are in brackish
water

6 months are in fresh water

My Xuyen

Whole of the district

My Tu

My Tu, My Thuan

Huynh Huu Nghia, My Huong,

My Phuoc, Hung Phu, Long
Hung, Phu My, Thuan Hung

Nga Nam

3 months are in brackish
water

9 months are in fresh water

Long Phu

Long Duc, Long Phu, Phu

Dai Ngai, Chau Khanh, Hau

Cu Lao Dung

Soc
Trang

FRESH WATER ZONE

Chau Thanh

U Minh Thuong

Kien
Giang


BRACKISH WATER ZONE

Vinh Chau

4 months are in salt water

Whole of the district

22


PROVINCE

COMMUNES BELONG TO
DISTRICT
SALT WATER ZONE

BRACKISH WATER ZONE
Huu, Tan Hung, Tan Thanh

Tran De

Tran De town

Lich Hoi Thuong, Lieu Tu,
Trung Binh

FRESH WATER ZONE
Thanh, Song Phung, Truong
Khanh

Lich Hoi Thuong town, Tai Van,
Thanh Thoi An, Thanh Thoi
Thuan, Vien An, Vien Binh

3.3

Alternative agricultural production systems

3.3.1

Assessing production systems on the basis of a cost-benefitanalysis

Arising from the field work and other supporting elements of the work (desk study of relevant
literature, contact with other projects and government), the following most relevant
production systems have been identified in the study area.
These 17 production systems were assessed first on the basis of their financial performance
(cost-benefit-analysis – CBA) before evaluating them further under a more complete scoring
system which considered other key evaluation criteria to arrive at an overall assessment of
each production system and its potential for adoption under climate change circumstances.
All figures related to the 17 production systems were discussed and validated with extension
services and DARDs during the field survey and at meetings in July 2016. They were presented
at the ICMP workshop in Can Tho on July 5th, and further discussed with MARD personnel at a
workshop on July 28, 2016. They are outlined in the following table and accompanying graph.

Methodology
The ranking of the production system was conducted as follows:
First, on the basis of expert interviews, a list of the 20 most suitable production systems for
the coastal zone of the Mekong Delta was drafted.
These 20 production systems were then rated by a group of experts according to 47 criteria in
seven categories (technical, financial, economic, social, institutional, environmental and

political). For each of the 20 production systems, the expert group assigned a value between 1
(not favourable) and 5 (very favourable) with regard to all 47 criteria. These 940 (20x47)
numbers between 1 and 5 were then weighted in order to determine the relative importance
of the criterion. For instance, the profit for the farmer was weighted with the factor 3, while
equipment need was weighted with the factor 1.
In a next step, three production systems with less relevance for the coastal zone were
excluded. The remaining 17 production systems were than ranked according to their average
rating.
The resulting list, including the five top-performing systems, was then further discussed and
validated in several discussions round with experts and decision-makers on the national and
provincial level.

23


Table 3: 47 Criteria for rating the production systems
Technical

Financial

Economic

Social

Institutional

Environmental

Political


Labour requirement

Profit (Costbenefitanalysis)

Market access

Number of
paid employment created

Skills/ techniques

Costs associated with production (running costs)

Price of Product

Number of
household that
can apply the
system

National organisation to
support the
system
Extension
service to
support the
system

MARD policy
available to

support the
system
Is the system
in the provincial 5-year
planning

Prone to Diseases

Capital requirement to
start the system (fixed
costs)
Credit availability

Stability of
Product Price

Readiness of
farmer to
change the
system

International
organisation to
support the
system

Adaptation
potential to
ecological
zone

Use of chemicals and chemical fertilizer
(low
amount|high
amount)
Vulnerability
to weather
conditions

Soil/ pond
preparation
(time need)

System management (easy
/ difficult)

Credit costs

Need of Market during the
year (Potential
to sell the
Product the
whole year)
Productivity
(in VND|ha)

Equipment
need

Risk of failure


Irrigation
infrastructure
Transport
infrastructure

Possibility of
value-adding
Diversification
potential of
products

Electric infrastructure

Possibility of
Storage

Financial
sector to support the system
(like banks)

Vulnerability
to salinity

National company available
to buy products
International
company
available to
buy products
(export)| access to international markets


Vulnerability
to drought

Fresh water
saving potential

Soil protection
potential
Greenhouse
Gas Emission
Reduction
Potential
Organic Matter
Increase Potential
Water Pollution Potential

Fresh water
requirement
Saline water
requirement
Brackish water
requirement

The final result of the cost-benefit-analysis can be seen in table 4. While the ranking of the
production systems should not be regarded as a strictly scientific exercise, it does give a clear
picture on the benefits of different production systems which can serve as a basis for
discussion with national and provincial decision-makers.

24



Ranking of 17 production systems suitable for the coastal zone
Table 4: Overall performance of the 17 production systems against seven key categories
Institution

Environ
ronment

3.57

3.58

3.26

4.75

25.91

3.70

3.78

3.57

3.38

3.12

4.50


25.38

3.63

3.35

3.98

2.64

3.62

3.18

4.00

24.61

3.52

3.43

3.27

3.53

3.43

3.38


2.40

4.75

24.19

3.46

Livestock (Poultry, Pig, Cattle, etc.)

3.00

3.08

3.93

3.86

2.97

3.68

3.25

23.76

3.39

F


Rice & unsubmerged crop rotation

3.34

3.00

3.23

3.33

3.31

3.00

4.25

23.46

3.35

7

F

Shrimp-rice (fresh water)

3.23

3.00


3.65

3.36

3.23

2.96

3.75

23.18

3.31

8

F,B,S

Unsubmerged2 / upland crop rotation
(Corn, Pumpkin, Soya Bean, etc.)

3.11

3.23

3.60

3.57


2.85

2.90

3.75

23.01

3.29

9

F,B,S

Perennial (Fruit) crops

3.24

3.12

3.23

2.86

2.77

3.20

3.45


21.85

3.12

10

F,B,S

Fish (Fresh, Brackish, and salt water)

3.22

3.23

3.68

2.71

2.54

3.20

3.25

21.83

3.12

11


S

Clam (Blood Cockle, Green Mussel, Oyster,
etc.)

3.59

3.12

3.43

2.79

2.54

3.10

3.25

21.80

3.11

12

F

Triple Rice (three rice crops)

3.17


2.88

3.48

2.93

3.00

2.20

3.75

21.41

3.06

13

F, B, S

Vegetable (including onion)

2.93

3.31

3.50

3.07


2.31

2.82

3.25

21.19

3.03

14

B

Intensive Shrimp

2.48

2.58

4.09

2.64

2.69

2.68

4.25


20.75

2.96

15

S

Salt

3.78

2.88

2.48

2.14

2.15

3.66

2.75

19.85

2.84

16


S

Artemia

3.48

2.81

3.55

1.93

2.00

3.36

2.50

19.62

2.80

17

B

Sugar cane

3.54


3.15

2.70

2.07

1.62

2.56

1.75

17.39

2.48

Technical

Financial

Economic

Zone

Production system

1

B1


Shrimp-rice (brackish water)

3.72

3.08

3.95

2

B, S

Semi-intensive and extensive shrimp

3.61

3.42

3

S

Mangrove – aquaculture

3.85

4

F


Double Rice (two rice crops)

5

F,B,S

6

Social

Political

Total

Source: study team

The most notable outcome of the rating is that four of the five top-performing production
models are suitable for the brackish and/or salt water zone. This shows that salinity intrusion
is not just a threat, but also an opportunity for the Mekong Delta. In many circumstances,
farmers are able to earn more money with aquaculture than with rice or other crops.
This reflects what is already happening in the Mekong Delta at the moment. Farmers are
already transitioning to aquaculture or other crops, and authorities are assisting this process –
but the transformation is not easily done. To ensure that the transition to production models
which are adapted to the brackish or salt water zone is successful, significant investments into

1 S: suitable for salt water zone / B: suitable for brackish water zone / F: suitbale for fresh water zone
2 Unsubmerged or “upland” crops in the context of Mekong Delta, means crops grown above water – non-flooded, e.g.– maize, soyabean,
water melon, groundnut, sesame, pumpkin.


25

Av