Abstract
Rice and maize are the two most important annual crops in Viet Nam. Rice production is sufficient for self-consumption and exportation, whereas maize production is insufficient and must be imported because of the growing feed industry. In Son La, the largest area in the Northwest with the greatest production of maize, maize is cultivated continuously all year, whereas paddy rice is cultivated mostly in the spring. To our knowledge, this article is the first study to estimate farm-level technical and scale efficiencies and to identify the factors influencing them. This study first applied a standard and smooth bootstrap DEA method to estimate the technical and scale efficiencies, then used a Tobit regression method to identify factors influencing these efficiencies among farms. The results showed that the opportunity for both technical and scale inefficiencies of maize and rice crops is insignificant. Findings from the second stage indicated that the age of the head of household, the numbers of family, the national electricity source, the distance to the nearest market, and the access to credit, extension services and milling machines are the main factors affecting the technical and scale efficiencies of rice and maize crops. The findings suggest continuing improvement of management, co-operation in cultivation, crop diversity and optimal use rice plots. The results also recommend expanding the national electricity source, emphasizing policies for adjusting customs and knowledge, using credit in appropriate ways and continuing to enhance extension services.
Highlights
The role of agriculture in the economy of Viet Nam has recently declined, it is still the most important economic sector
The results show that the majority of farms are inefficient in both the technical and scale efficiencies of rice and maize production
The results indicate that technical efficiency under constant return to scale (CRS) and variable return to scale (VRS) in rice production is higher than in maize production, which may be partly because of the insufficiency and sloping of maize crop lands
Summary
The role of agriculture in the economy of Viet Nam has recently declined, it is still the most important economic sector. Decision No 432/QD-TTg on approving the Viet Nam Sustainable Development Strategy for 2011-2020 emphasizes that “To shift the structure of agriculture and rural areas towards industrialization, promote regional advantages; develop quality agricultural products; combine production with local and foreign market in order to lift the efficiency of using natural resources...” (Prime Minister of Vietnam, 2012). This strategy extends the application of scientific and technological advances to increase the quantity and quality of agricultural production. Rice is mostly used for food consumption and export, whereas maize production is insufficient and must be imported for the feed industry (USDA, 2014)
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