Abstract

Nowadays, Vietnam is known as a developing country with a fast-growing economy. Agriculture is the main traditional sector which plays an important role in Vietnamese economic growth and development. Improving the efficiency of agricultural production towards sustainable development is one of the country’s national economic development goals. This study aims to measure the efficiency of the orange farms which have created jobs and improved living standards for people in Tuyen Quang province, Vietnam. A comprehensive literature review, key informant interviews, and a structured questionnaire were applied in this research for data collection. The data envelopment analysis (DEA) model was applied to evaluate the technical, allocative, cost, and scale efficiencies. The main results of this analysis show that the orange farms have high scores for technical and scale efficiencies. On the other hand, the research reveals low levels of cost and allocative efficiencies. This is in line with the fact that though the farms’ owners have extensive experience in orange cultivation and receive periodic technical training, they still have low levels of education and a lack of economic management expertise. The study results also propose optimal input allocation for the orange farmers. The research could provide crucial information to farms’ owners, the local government, and agricultural planners for formulating effective strategies to improve agricultural sustainability.

Highlights

  • Located in Southeast Asia, Vietnam is a developing country

  • The analysis showed that orange farms in Tuyen Quang province had relatively high and uniform technical efficiency, which was explained by many factors, including the long-term production experience of farm owners as well as the impact of technical assistance policies and the construction of commercial orange production areas

  • Using comprehensive data collected through a structured questionnaire for the 2018/2019 crop, 107 randomly selected orange farms’ owners, a measure of technical efficiency (TE), scale efficiency (SE), allocative efficiency (AE), and cost efficiency (CE) were estimated

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Summary

Introduction

Located in Southeast Asia, Vietnam is a developing country. Vietnam is considered to be an agricultural-based economy, as agriculture is still a major contributor to the country’s GDP. In 2018, agriculture contributed 14.68% of Vietnam’s gross domestic product [1]. Sustainable economic development was an important goal for Vietnam’s sustainable development during the 2011–2020 period [2]. It is necessary to restructure agriculture and rural areas towards industrialization, promoting the strengths of each region. It is necessary to produce agricultural products with quality and efficiency, improve income on a hectare of farmland per each day of labor, improve the living standards of farmers, and improve the sustainable development of trade villages

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