Project Progress Report:" Capacity Building in Applied Natural Resource Economics and Management for Vietnam - MS 6 & 8 " docx

Ministry of Agriculture & Rural Development




025/05VIE

Capacity Building in Applied Natural Resource
Economics and Management for Vietnam



MS 6 & 8
: Technical Reports 2 and 3




April 2010


1
Table of Contents

1. Institute Information 2
2. Project Abstract 3
3. Executive Summary 3
4. Introduction 4
5. Workshop Training Materials 4
5.2 Training materials 4

Training Course, Hanoi, 12-16 July 2006 6
Training Course, Can Tho, 17-21 July 2006 7
Extension Course, Hanoi, 22-26 January 2007 8
Extension Course, Can Tho, 29 Jan – 2 Feb 2007 9
Extension Course, Hanoi, 16-20 July 2007 10
Extension Course, Soc Trang, 23-27 July 2007 11
Pilot Farmer Workshop Program, 16-17 January 2008 12
Pilot Farmer Workshop Program, Soc Trang, 23-24 January 2008 13
Pilot Farmer Workshop Program, Vinh, Hung Nguyen, Nghe An, 14-15 July 200814
Pilot Farmer Workshop Program, Van Giang, Hung Yen, 18-19 July 2008 15
Pilot Farmer Workshop Program, Soc Trang, 21-22 July 2008 16
Roundtable on Resource Management Issues in Vietnam, 17 July 2008 17
5. 2 Workshop evaluations 18
6. Natural Resource Economics Network 19
7. Policy Briefs 19
7.1 The Efficiency of prawn production in the Mekong Delta 20
7.2 Alternative systems of shrimp culture in the Lagoon area of Thua Thien, Vietnam
22
7.3 Benefits from variable rate nitrogen application in rice production 24
7.4 Optimal investment decisions in shrimp farming in Vietnam 26
7.5 Environmental compliance under uncertain enforcement in Vietnam 28
7.6 Knowledge of farmers on natural resource management 31
8 Research Scholar Reports 34
8.1 Technical Efficiency of prawn farms in the Mekong Delta, Vietnam 35
8.2 An Inquiry into Four Alternative Systems of Shrimp Culture in the Lagoon Area
of Thua Thien, Hue, Vietnam 46
8.3 Evaluating the Benefits of Site-Specific Crop Management of Nitrogen
Application to Rice Production 60
8.4 Farmers’ Decisions Under Market Uncertainty: A Real Options Analysis of
Shrimp Farming in Vietnam 67

9. Decision Support Modules 76
9.1. Decision Support for Water Quality Management in a River 77
9.2. Shrimp Feeding and Water Pollution 91
9.3. Optimal Length of Production Period 94
10. Report Authorisation 97



2
1. Institute Information
Project Name Capacity Building in Applied Natural Resource
Economics and Management for Vietnam
Vietnamese Institution Faculty of Economics and Rural Development,
Hanoi Agricultural University
Gialam, Hanoi, Vietnam
Vietnamese Project Team Leader Mr. Tran Dinh Thao
Australian Organisation Faculty of Agriculture, Food and Natural Resources
University of Sydney, NSW, 2006, Australia
Australian Personnel Emeritus Professor Thomas Gordon MacAulay
Date commenced January 1, 2006
Completion date (original) June 30, 2008
Completion date (revised) December 31, 2008
Reporting period 6 Months

Contact Officer(s)
In Australia: Team Leader
Name:
Emeritus Prof. T. Gordon MacAulay
Telephone: 61 2 9888 9600
Position: Emeritus Professor Fax: 61 2 9888 5821

Organisation Faculty of Agriculture, Food and
Natural Resources
University of Sydney, NSW 2006,
Australia

Email:







In Australia: Administrative contact
Name: Ms. Luda Kuchieva Telephone: 61 2 9351 7903
Position: Administration officer Fax: 61 2 9351 3256
Organisation Research Grants
University of Sydney,
NSW 2006, Australia

Email:

In Vietnam
Name: Mr. Tran Dinh Thao Telephone: 84 48 769 770
Position: Senior Lecturer, Vice Dean Fax: 84 48 276 554
Organisation Faculty of Economics and Rural
Development
Hanoi Agricultural University
Gialam, Hanoi, Vietnam
Email:

Or




3
2.
Project Abstract

3. Executive Summary

The project is aimed at strengthening the teaching and research capacity in the field of
natural resource economics in several key Vietnamese Institutions (a number of
Universities, MARD and provincial and regional extension systems) and encouraging the
transfer of knowledge from the University teaching and research staff to extension staff
and farmers. The project is also designed to strengthen the use of resource management
concepts in Vietnam through a participatory approach using training workshops in
Vietnam on natural resource economics in three stages.

First Six Monthly Report—Stage 1 (dated 11 December 2006)
First Technical Report (dated 12 April 2007 revised 30 November 2007
Second Six Monthly Report—part of Stage 2 (dated 16 April 2007)
Third Six Monthly Report—Extension Workshops July 2007 (dated 28 April 2008)
Fourth Six Monthly Report—Stage 3 Pilot Workshops January 2008 (dated March 2010)
Fifth Six Monthly Report—Final Farmer Workshops July 2008 (dated April 2010)
Second and Third (combined) Technical Report (dated April 2010)

As a part of the third stage of the project, 5 pilot extension workshops for farmers were
conducted in Vinh, Van Giang (2) and Soc Trang (2) with a focus on economically
efficient natural resource management, where practical knowledge and skills in resource
With very rapid growth and development in Vietnam, there is a danger of overuse and
mismanagement of natural resources, thus compromising sustainable development. The
level of knowledge, understanding and use of the principles of natural resource economics
(NRE) and management is limited in Vietnamese agriculture. The designed outcome of the
project is to begin to have resource management concepts used in various institutions in
Vietnam (Universities, MARD, and the extension system) and to strengthen the ability to

deliver knowledge, set policies and advise farmers in this area. This outcome is being
approached through a participatory approach using workshops in Vietnam on natural
resource economics held by the University of Sydney staff and the staff of the participating
organizations. One training workshop each in Hanoi and Can Tho, four extension
workshops, two each in Hanoi and Can Tho, Vietnam have been conducted at the provincial
level by Vietnamese staff with participation of the University of Sydney team members,
thus transferring the acquired knowledge to extension specialists and thereby eventually to
smallholder farmers. Two Vietnamese scholars had three-month visits to the University of
Sydney in 2006 and two more visited Sydney from August to October 2007 so as to
broaden their understanding of natural resource economics and to undertake research
projects under the guidance of academics at the University of Sydney. Five pilot workshops
with farmers have been conducted in January and July 2008 to demonstrate the use and
practical knowledge and skills in resource management with the training largely provided
by participants in the extension workshops. Discussions on curriculum development and
revisions with appropriate staff at Hanoi University of Agriculture and CanTho University
have been held.


4
management were demonstrated and discussed. The participants of the previously held
extension workshops led most of the presentations for these workshops. Some had never
used PowerPoint presentations previously and were supported and encouraged in their
preparation by the academic staff at Hanoi University of Agriculture and Can Tho
University.

4.
Introduction
This report has been prepared as milestones 6 and 8 and includes:
1. Extension workshop training material, decision support modules, extension
packages and extension aids.

2. Establishment of the Natural Resource Economics Network, delivery of
policy advice and action plan for sustainability of network.

3. Policy briefs (4)

4. Research Scholar Reports (4)

5. Decision support model documentation

5. Workshop and Training Materials

This project was designed to strengthen the capacity building in natural resource
economics in Vietnam in a layered framework. In the first layer, The University of
Sydney staff provided research, teaching and policy analysis training to Vietnamese
academics, policy analysts and extension specialists at a national level through two
training workshops held in July 2006 in Hanoi and Can Tho (details of the Training
Workshop, July 2007 were reported in milestone 2 in the Second Six-Monthly Report). In
the second layer, those trained in the first layer trained the extension specialists and
policy analysts at the provincial level. The training was designed to impact the advice and
information provided to farmers on the use of natural resources demonstrated through a
series of district level workshops. This was implemented through conducting four
extension workshops, of which two were conducted in January 2007 (Hanoi with 25
participants; Can Tho with 26 participants) and two in July 2007 (Hanoi 26 participants;
Soc Trang 20 participants). Details of these workshops were provided in the Third Six
Monthly Report. Following the Extension workshops a set of five pilot workshops for
farmers were presented with the training carried out by selected people trained in the
Extension Workshops. Details are reported in the Fourth and Fifth Six-Monthly Reports.
The workshops were held at Vinh, Van Giang and Soc Trang in January 2008 and July
2008 with a total of 151 participants. For all workshops the total number of participants

was 251.

5.1 Training materials


5
The available collection of workshop presentations and selected other materials are
provided in the form of a CD. The full list of workshops in which the presentations were
made is included in the following text for reference. The details of the decision support
models and documentation are given in section 9 of this document. Also, provide in the
package of material is a pdf file version of the 161 page Training Handbook entitled
Applied Natural Resource Economics and Management which contains a detailed
development of much of the material presented in the Training workshops.

At the beginning of each workshop and at the end, short questionnaires were given to
participants. The first questionnaire was designed to gain some understanding of the
participants’ level of knowledge and background. The questionnaire given in the final
session was designed to assess participant levels of satisfaction with the program and
their suggestions for improvement as well as in the academic Training and Extension
workshops to assess levels of understanding of the material given. The detailed
questionnaires and all the results have been tabulated in the Six-Monthly Reports and are
not repeated in this report.

The decision models and the documentation associated with them is available for use by
extension specialists as are the policy briefs and the Powerpoint presentations. These are
all available on the CD and website.
1

1
Some of the Powerpoint presentations have been developed on a Mac OS X platform and therefore some
of the pictures are not in a format that can be read by Windows based machines. These pictures (photos)
will not appear when shown on Windows operating systems.


6
Training Course, Hanoi, 12-16 July 2006


Wed 12th July Thu 13th July Fri 14th July Sat 15th July Sun 16th July
8.30 – 10.00 am 9.00 am Welcome and
official opening by
Rector of HAU and
Dean.
Competency evaluation
Prof Gordon MacAulay
Resource management
principles
Dr Michael Harris
Natural resource
economics in a dynamic
setting, renewable and
non-renewable
resources, constrained
optimisation over time

Prof. MacAulay

Economics of asset
replacement
Prof Gordon MacAulay
Public policy processes
in natural resource
economics
Prof Gordon MacAulay
and Dr Pham Van Hung
Basic land economics
and land use
Morning break
10.15 – 11.30 am Dr Michael Harris
Key principles and
methods in resource and
environmental
economics
Prof Gordon MacAulay
and Dr Michael Harris
Compounding,
discounting and present
values of assets

Dr Tiho Ancev
Renewable resources:
Forestry economics and
optimal rotations
Dr Tiho Ancev and Dr
Michael Harris
Public policy
instruments in the

natural resource sectors
(Pesticide tax case
study)
Dr Tiho Ancev and Mr
Tran Dinh Thao
Economics of soil
conservation
(Soil conservation case
study)

Lunch
1.30 – 3.00 pm Dr Michael Harris
Property rights, market
failure and policy
responses
Dr Michael Harris and
Dr Tiho Ancev
Dynamic optimisation
and the use of MS Excel

Dr Tiho Ancev and Ms
Sally Marsh
Economics of water use
and water quality
Ms Sally Marsh
The role of extension in
addressing natural
resource problems

Prof G. MacAulay

Renewable resources:
Fisheries economics and
aquaculture
(Case study discussion)
Afternoon break
3.15 – 4.30 pm Ms Sally Marsh
Extension work and
environmental
economics

Prof Gordon MacAulay,
Dr Michael Harris
Mini-workshop with
static and dynamic
problems (mining and
optimal control)
Dr Tiho Ancev
Mini-workshop on water
use and water quality
(river pollution model)
Ms Sally Marsh
Mini-workshop on the
practical aspects of
extension in natural
resource management

Discussion of the
program (4.15-4.30pm)
Resource Economics
debate

Competency evaluation

Course Evaluation and
Review
Date revised: 12 July 2006.


7
Training Course, Can Tho, 17-21 July 2006


Mon 17th July Tue 18th July Wed 19th July Thur 20th July Fri 21st July
8.00 – 9.45 am 9.00 am Welcome and
official opening

Competency evaluation

Prof Gordon MacAulay
Resource management
principles
Dr Michael Harris
Natural resource
economics in a dynamic
setting, renewable and
non-renewable
resources, constrained
optimisation over time
Prof. MacAulay
Economics of asset

replacement
Prof Gordon MacAulay
Public policy processes
in natural resource
economics
Prof Gordon MacAulay
Basic land economics
and land use
Morning break
10.10 – 11.30 am Dr Michael Harris
Key principles and
methods in resource and
environmental
economics
Prof Gordon MacAulay
and Dr Michael Harris
Compounding,
discounting and present
values of assets

Dr Tiho Ancev
Renewable resources:
Forestry economics and
optimal rotations
Dr Tiho Ancev and Dr
Michael Harris
Public policy
instruments in the
natural resource sectors
(Pesticide tax case

study)
Dr Nguyen Phu Son
Deforestation of the
Melaleuca in Long
Xuyen area in the
Mekong Delta

Lunch
1.30 – 3.15 pm Dr Michael Harris
Property rights, market
failure and policy
responses
Prof G. MacAulay
Renewable resources:
Fisheries economics and
aquaculture
(Case study discussion)
Dr Tiho Ancev and Ms
Sally Marsh
Economics of water use
and water quality
Ms Sally Marsh
The role of extension in
addressing natural
resource problems

Dr Michael Harris and
Dr Tiho Ancev
Dynamic optimisation
and the use of MS Excel

Afternoon break
3.30 – 5.00 pm Ms Sally Marsh
Extension work and
environmental
economics

Prof Gordon MacAulay,
Dr Michael Harris
Mini-workshop with
static and dynamic
problems (mining and
fisheries)
Dr Tiho Ancev
Mini-workshop on water
use and water quality
(river pollution model)
Ms Sally Marsh
Mini-workshop on the
practical aspects of
extension in natural
resource management

Discussion of the
program (4.15-4.30pm)
Resource Economics
debate

Competency evaluation

Course Evaluation and

Review
Date revised: 12 July 2006.


8
Extension Course, Hanoi, 22-26 January 2007

Mon 22nd Jan Tues 23rd Jan Wed 24
th
Jan Thurs 25
th
Jan Fri 26
th
Jan
8.30 – 10.00 am
9.00 am Welcome and official opening
by Rector or Vice-Rector of HAU and
Dean/Vice Dean òf FERD.
Competency evaluation
Prof Gordon MacAulay Resource
management principles for Extension
specialists
Ass Prof Ngo Thi Thuan
Basic extension methods
and tools including
measures of extension
performance in
knowledge dissemination.
Dr Pham Van Hung
Sustainable development, land use

management and land markets
(value of land)
6 am, departure
from the Guess
House (HAU)
Field trip in Luong
Son district
Hoa Binh province
Dr Nguyen Nghia Bien
Economics of small-scale
forestry and harvesting models
(spreadsheet analysis).
Morning break
10.15–11.30 am
Dr Michael Harris
Key principles and methods in resource
and environmental economics for
extension specialists
Ass Prof Ngo Thi Thuan
Skills in extension and
applications
Dr. Nguyen Thi Minh Hien
Gender roles in extension and
gender in natural resource
management
Field trip in Luong
Son district
Hoa Binh province
Dr Nguyen Nghia Bien Basic
forestry economics and

spreadsheet analysis of
harvesting and replacement
Lunch
1.30 – 3.00 pm
Dr Michael Harris
Property rights, market failure and
policy responses
Dr Pham Van Hung

Update on the use of MS
Excel spreadsheets
Basic compounding and
discounting
Spreadsheet exercises
Dr Nguyen Van Song
Exploitation, management and use
of water (resource economics
perspectives)
Field trip in Luong
Son district
Hoa Binh province
Mr Tran Dinh Thao
Economics of soil conservation
(Soil conservation case study)
Afternoon break
3.15 – 4.30 pm
Professor Gordon MacAulay Extension
work, resource management and
environmental economics, eg trading
permits

Dr Pham Van Hung
Workshop on a simple LP
model and interpretation
of results
Dr Nguyen Duong Nga
Mini-workshop on water use and
water quality (river pollution
model, Spreadsheet exercises)
Field trip in Luong
Son district
Hoa Binh province
Debate
Competency evaluation
Course Evaluation and Review
Workshop held in the Faculty of Economics and Rural Development, Hanoi Agricultural University No 1.


9
Extension Course, Can Tho, 29 Jan – 2 Feb 2007

Mon 29
th
Jan Tues 30
th
Jan Wed 31
st
Jan Thurs 1
st
Feb Fri 2
nd

Feb
8.00 – 9.45
am
Welcome and official
opening by Director of MDI.
Competency evaluation
Prof Gordon MacAulay
Resource management
principles for Extension
specialists
Dr. Vo Thi Thanh Loc

Renewable Resources
Management: Fisheries

Mr. Duong Tri Dung
Introduction to water
Economic
- Importance of water quality
- Today’s lecture objectives
- Some important water
quality parameters
6 am, departure from the
Dormitory (MDI)

Field trips
- study tour
Field trips in An Giang
province
Mrs. Tran Thuy Ai Dong

Basic compounding and
discounting


Morning
break

10.00 – 11.30
am
Dr Michael Harris
Key principles and methods
in resource and
environmental economics for
extension specialists
Dr. Vo Thi Thanh Loc

Discuss about Renewable
Resources Management:
Fisheries
Mr. Duong Tri Dung
Economics of water quality
- Analysis of collective water
use and water quality.
- Water management in a
community

Field trips
- study tour
Field trips in An Giang

province
Mrs. Tran Thuy Ai Dong
Spreadsheet exercises
Update on the use of MS
Excel spreadsheets
Spreadsheet exercises

Lunch


13.30 – 15.00
pm
Dr Michael Harris
Property rights, market
failure and policy responses
Dr. Tran Thanh Be

Basic extension methods
and tools including
measures of extension
performance in knowledge
dissemination.
Dr. Tran Kim Tinh

Land use management,
cropping patterns, soil
conservation and land markets
(value of land)

Field trips

- study tour
Field trips in An Giang
province
Dr. Tran Thanh Be

Debate
Discussion

Afternoon
break

15.15 – 17.00
pm
Professor Gordon
MacAulay Extension work,
resource management and
environmental economics, eg
trading permits

Dr. Tran Thanh Be

New methods in extension
and applications to natural
resource management
including games and
budgeting exercises
Mrs. Vo Thi Lang

Economics of soil
conservation

Field trips
- study tour
Field trips in An Giang
province

Debate (continued)
Discussion (continued)
Competency evaluation
Course Evaluation and
Review


10
Extension Course, Hanoi, 16-20 July 2007


Mon 16 July Tues 17 July Wed 18 July Thurs 19 July Fri 20 July
8.30 – 10.00
am
Welcome and official opening
by the Vice-Rector of HAU
and the Dean of FERD
Competency evaluation
Dr Tihomir Ancev
Overview of the project and
workshop program
Mr Tran Dinh Thao

Basic extension methods
and tools including
measures of extension
performance in
knowledge
dissemination.
Dr Pham Van Hung
Sustainable
development, land use
management and land
markets (value of land)
7 am, departure from the
Guess House (HAU)
Field trip in Hung Yen
province
Dr Nguyen Nghia Bien
Economics of small-
scale forestry and
harvesting models
(spreadsheet analysis).
Morning
break

10.15 – 11.30
am
Dr Tihomir Ancev
Key concepts of Resource
management principles
Mr Tran Dinh Thao/
Nguyen Duy Linh

Skills in extension and
applications
Dr. Nguyen Thi Minh
Hien Gender roles in
extension and gender in
natural resource
management

Field trip in Hung Yen
province
Dr Nguyen Nghia Bien
Basic forestry
economics and
spreadsheet analysis of
harvesting and
replacement
Lunch
1.30 – 3.00
pm
Sally P Marsh
Resource management
principles for extension
specialists
Dr Pham Van Hung

Basic compounding and
discounting
Mr Nguyen Duy Linh
Spreadsheet exercises
Farm budgeting

Field trip in Hung Yen
province
Participant presentations
+ discussions

Afternoon
break

3.15 – 4.30
pm
Dr Tihomir Ancev
Basic principles of Resource
economics and management
Dr Pham Van Hung
Update on the use of MS
Excel spreadsheets
Spreadsheet exercises
Dr Nguyen Duong Nga
Mini-workshop on water
use and water quality
(river pollution model,
Spreadsheet exercises)
Field trip in Hung Yen
province
A short report on the use
of natural resources
(farms visited only)
Debate
Competency evaluation

Course Evaluation and
Review
Workshop held in the Faculty of Economics and Rural Development, Hanoi Agricultural University No 1.


11
Extension Course, Soc Trang, 23-27 July 2007

Mon 23
rd
July Tues 24
th
July Wed 25
th
July Thurs 26
th
July Fri 27
th
July
8:30 – 9:30 am -Welcome and official
opening

Miss. Quach Ngoc Mai
- Basic extension methods
and tools
Miss Ngyuen Thi Xuan
Trang
Environmental and
Resource Economics
Principles

Dr. Vo Thi Thanh Loc
Renewable Resources
Management: Fisheries

Mrs. Vo Thi Lang
Land use management,
cropping patterns, soil
conservation and land
markets (value of land)

Field trip in Vinh
Chau
Morning break
10:00 – 11.30
am
Miss. Quach Ngoc Mai
Extension work, Resource
Management and
Environmental Economics
Miss Nguyen Thi Xuan
Trang
Environmental and
Resource Economics
Principles
Dr. Vo Thi Thanh Loc
Discuss about
Renewable Resources
Management: Fisheries
Mrs. Vo Thi Lang
Economics of Soil

Conservation
(Soil Conservation Case
Study)

Field trip in Vinh
Chau
Lunch
13:30 – 15.00
pm
Mr. Le Canh Dung
Resource Management
Principles

Dr. Duong Ngoc Thanh
Agricultural Economics
and Natural Resources
Mr. Duong Tri Dung
Analysis of collective
water use and water
quality. Water
management in a
community

Dr. Duong Ngoc Thanh
- Update on the use of MS
Excel spreadsheets
- Basic compounding and
discounting
Spreadsheet exercises

Field trip in Vinh
Chau
Afternoon break
15:30 – 17:00
pm
Mr. Le Canh Dung
Resource Management
Principles
Dr. Duong Ngoc Thanh
Agricultural Economics
and Natural Resources
Mr. Duong Tri Dung
Mini-workshop on
water use and water
quality
Dr. Duong Ngoc Thanh
- Workshop on a simple
LP model and
interpretation of resulta
Spreadsheet Exercises
Competency
evaluation
Course Evaluation and
Review


12
Pilot Farmer Workshop Program, Van Giang 16-17 January 2008
PILOT FARMER WORKSHOP PROGRAM
ECONOMICS AND NATURAL RESOURCE MANAGEMENT

VAN GIANG, HUNG YEN, 16-17 JANUARY 2008

Wed 16
th
Jan Thurs 17
th
Jan
8.30 – 10.00 am
Welcome and opening
Ms Nguyen Thanh Hien, Chair of the District People’s
Committee
Introduction of CARD project and workshop – Gordon
MacAulay
Resource Management – Gordon MacAulay
Chemical fertiliser use: Issues and Challenges for Environment
and Agricultural Production
Mr Nguyen Quoc Chuong

(+ Group discussion)
Morning break
10.20 – 11.50 am Natural Resource Management
Gordon MacAulay and Sally Marsh
Pesticide use: Issues and Challenges for Environment and
Agricultural Production
Mr Nguyen Quoc Chuong
(+ Group discussion)
Lunch
1.30 – 3.00 pm Fish feeding in Van Giang: Issues for Agricultural Production and
Environment
Mr Le Trung Can

(+ Group discussion)
Irrigation and Water Use for Agricultural Production
Mr Le Hong Sy
(+ Group discussion)
Afternoon break
3.20 – 4.30 pm Fish feeding in Van Giang: Challenges for Environment
Mr Le Trung Can
(+ Group discussion)
Group discussion
General discussion and post evaluation
Closing
Workshop held at the District Office in Van Giang, Hung Yen province.
Presenters: Mr Le Trung Can and Mr Le Hong Sy were participants of the first and second extension workshops held in the Faculty of Economics and Rural
Development, HAU. They are in charge in agricultural production at Van Giang district. Mr Nguyen Quoc Chuong is a staff member of the Department of
Agriculture and Rural Development, Van Giang District


13
Pilot Farmer Workshop Program, Soc Trang, 23-24 January 2008
PILOT FARMER WORKSHOP PROGRAM
ECONOMICS AND NATURAL RESOURCE MANAGEMENT
SOC TRANG, 23-24 JANUARY 2008

Time
Monday, 23/07 Tuesday, 24/07
8.00 – 9.30 am Opening: Mr Hoang, Director of the Extension Centre and Ms
Hien, Vice-Director of the Extension Centre,
Prof Gordon MacAulay: Introduction to the CARD Project
Pre-workshop evaluation questionnaire
Ms Nguyen Thi ThanhTam, Extension specialist

Fertiliser use and management
Exercises/questions/discussion
Tea break
10.00 – 11.30 am Prof Gordon MacAulay and Dr Michael Harris
Natural resource management
Video and radio presentations
Discussion of natural resource management
Ms Nguyen Thi ThanhTam, Extension specialist
Pesticide use and management
Exercises/questions/discussion
Lunch time
1.30 - 3.00 pm Ms Huynh Thi My Lan, Extension specialist, Aquaculture in
Soc Trang
Situation of rice and shrimp Production
Techniques and experiences applied by farmers
Exercises/questions/discussion
Ms Huynh Thi My Lan, Extension specialist
Water use in agriculture (irrigation) and management
Exercises/questions/discussion
Tea break
3.20 – 4.30 pm Ms Huynh Thi My Lan, Extension specialist,
Water management problems in aquaculture
Exercises/questions/discussion
Post-workshop evaluation (Dr Thanh)
Discussion of workshop and post evaluation
Certificate presentations


14
Pilot Farmer Workshop Program, Vinh, Hung Nguyen, Nghe An, 14-15 July 2008

PILOT FARMER WORKSHOP PROGRAM
ECONOMICS AND NATURAL RESOURCE MANAGEMENT
VINH, HUNG NGUYEN, NGHE AN
, 14-15 JULY 2008
Time
Monday, 14/07 Tuesday, 15/07
8.30 – 10.00 am Welcome and introduction (Dr. Pham Van Hung)
Opening: Vice chairman Mr Ho Thuc Nam
Prof Gordon MacAulay: Introduction to the CARD
Project
Pre-questionnaire
Mr. Phan Van Truong

Land using condition in Hung Nguyen District
Discussion

Tea break
10.20 – 11.30 am
Prof Gordon MacAulay
Natural resource management
Discussion
Mr. Phan Van Truong
Solutions to develop sustainable animal husbandry
Discussion
Lunch time
2.00 - 3.20 pm Mr. Nguyen Huu Nhuan

Cost – Benefit Analysis
Discussion
Mr. Nguyen Quy Linh

Environmental pollution: Situation and Solutions
Discussion
Tea break
3.40 – 5.00 pm Mr. Nguyen Huu Nhuan

Sustainable husbandry development
Discussion
Summary
Post-evaluation
Certificate presentations


15
Pilot Farmer Workshop Program, Van Giang, Hung Yen, 18-19 July 2008
PILOT FARMER WORKSHOP PROGRAM
ECONOMICS AND NATURAL RESOURCE MANAGEMENT
VAN GIANG, HUNG YEN, 18-19 JULY 2008
Time
Friday, 18/07 Saturday, 19/07
8.00 – 9.40 am Welcome and introduction (Dr. Pham Van Hung)
Opening: Vice chairman, Mr Vien, Deputy Chair
Prof Gordon MacAulay: Introduction to the CARD
Project
Pre-questionnaire
Mr Le Trung Can
Cattle livestock in Van Giang: Issues in feeding

Discussion

Tea break
10.00 – 11.30 am Prof Gordon MacAulay
Natural resource management
Discussion
Mr Le Trung Can
Treatment of waste from animal husbandry
Discussion
Lunch time
1.30.3.00 pm Mr. Nguyen Huu Phuong
Cost – Benefit Analysis
Discussion
Mr Le Hong Sy
Pig livestock in Van Giang: Situation and Solutions
Discussion
Tea break
3.20 – 4.50 pm Mr. Nguyen Huu Phuong
Sustainable animal husbandry development
Discussion
Summary
Post-evaluation
Certificate presentations


16
Pilot Farmer Workshop Program, Soc Trang, 21-22 July 2008
FINAL FARMER WORKSHOP PROGRAM
ECONOMICS AND NATURAL RESOURCE MANAGEMENT
SOC TRANG, 21-22 JULY 2008

Time

Monday, 21/07 Tuesday, 22/07
8.00 – 9.30 am Welcome and introduction, Dr. Be, Mekong Delta Farming
Systems Institute
Opening: Mr Hoang, Director, Soc Trang Extension Centre,
Prof Gordon MacAulay: Introduction to the CARD Project
Pre-workshop evaluation questionnaire
Ms Huynh Thi My Lan, Extension specialist
Aquaculture in Soc Trang province
Situation of rice, shrimp production
Techniques and experiences applied by farmers
Exercises/questions/discussion
Tea break
10.00 – 11.30 am Prof Gordon MacAulay and Dr Tiho Ancev
Natural resource management
Video and radio presentations
Discussion of natural resource management
Ms Huynh Thi My Lan, Extension specialist
Water management in aquaculture; problems in aquaculture
Exercises/questions/discussion
Lunch time
1.30 - 3.00 pm Ms Nguyen Thi ThanhTam, Extension specialist
Fertiliser use and management
Exercises/questions/discussion
Ms Huynh Thi My Lan, Extension specialist
Water use in agriculture (irrigation) and management
Exercises/questions/discussion
Tea break
3.20 – 4.30 pm Ms Nguyen Thi ThanhTam, Extension specialist
Pesticide use and management
Exercises/questions/discussion

Post-workshop evaluation (Dr Thanh)
Discussion of workshop, post evaluation
Certificate presentations



17
Roundtable on Resource Management Issues in Vietnam, 17 July 2008
Roundtable on Resource Management Issues in Vietnam
Sponsored by AusAID,
Hanoi University of Agriculture and
The University of Sydney

9.00-9.05 am Welcome and guidelines (Dr Hung)
Opening by Dr Prof Tran Duc Vien
Rector, Hanoi University of Agriculture

9.05-9.25 am CARD Project and Resource Management Issues
Prof Gordon MacAulay
Emeritus Professor of Agricultural Economics,
University of Sydney and BRI Research, Australia

9.25-9.40 am Discussion: Extension and resource management
Chair:

9.40-10.00 am Resource Management Principles and Challenges
Dr Tiho Ancev, Senior Lecturer
University of Sydney

10.00-10.15 am Coffee break

10.15-10.45 am Discussion—What are the key issues in Vietnam?
Chair:

10.45-11.00 am Some solutions to resource management problems
Dr Pham Van Hung and Mr Thao or Dr Hien
Hanoi Agricultural University

11.00-12.00 am Discussion: What are the solutions?
Chair:
Attitudes toward conservation of resources
Land and soil degradation and erosion
Water quality and saline intrusion
Aquaculture—feed and quality management
Fishing and fisheries management
Forestry and biodiversity
Recycling and the throw-away culture
Fertilisers and overuse
12.00-1.00 pm Lunch (buffet with continued discussion—tables put aside)

1.00 pm Roundtable closing
by Dr Pham Van Hung or a Senior Delegate

Note: Seating to be in a circular design and Chatham House rules apply.




18
5.2 Workshop evaluations

The aim of the extension workshops was to address the strategic questions of strengthened
and broadened capacity for economics training of extension personnel in Vietnam. Pre and
post workshop competency tests were conducted at each of the workshops and the
Roundtable. These have been fully documented in the Six-Monthly Reports.

At each of the workshops information was collected on either the knowledge levels pre and
post the workshops or the nature of the farming business the participants were involved in
managing or working.

The level of knowledge of the participants in both the ‘Training’ workshops and the
‘Extension’ workshops varied greatly and was quite limited in relation to some resource
management issues. It was also apparent that in some cases there was improvement between
pre- and post-tests and in for a few concepts there was a reversal. This, of course, should be
expected. However, overall there were clearly significant gains in both Hanoi and Can Tho
for each of the sets of workshops. The conclusion to be drawn is that such training can, at
least have a short-term impact on understanding of some of the more challenging ideas about
resource use and management. It is also likely to have a longer-term impact and will
influence the way in which resource issues are dealt with in both the academic and extension
systems. It should be noted that Hanoi University of Agriculture and Can Tho University as
pivotal points for the training of agricultural specialists and that the academics in these
universities play a very important part in what happens in relation to resource management in
the broader regions. There is clearly significant long-term leverage in providing training to
academic staff.

For the farmer workshops the numbers in relation to the total number of farmers is very
small. However, the impacts are likely to be significant in that local extension specialists
developed the training modules and presented them in Vietnamese to the local farmers. All
of the farmers in the Pilot workshops were farmers but a number also had various roles in the
extension system. This also added leverage to the impact of the training.

Overall, there were high levels of satisfaction with all of the courses. Some issues were
raised in each of the assessments. Significant among them was the short time of the
workshops, the need for translation at some of the sessions, the somewhat cramped
accommodation in a couple of instances and the levels of the training for some participants.
In the farmer level workshops, the outstanding issue raised in the evaluations and also in the
conversations in the workshops was the management of water quality both for aquaculture
and for irrigation. This is clearly a very significant issue for farming in many parts of
Vietnam.

The Roundtable was held in Hanoi in 17 July 2008 and was designed to heighten the level of
attention being given to natural resource management issues in the relevant ministries and
particularly the Ministry of Agriculture and Rural Development and also with the senior
levels of Hanoi University of Agriculture. It was also an opportunity to present some of the
results of the research activity and to reflect on some of the survey results obtained during the
project.




19
6. Natural Resource Economics (NRE) Network
The development of a natural resources network has been somewhat disappointing as the
effort and time requirements have proved too significant for local academics given the
strongly increasing demands on their time with very strongly rising student numbers. Early
efforts were made to use the website as a platform for such a network but this was not
developed sufficiently rapidly for it to become a focus of attention.

In terms of a continuing presence the /> website is still active and
being hosted by Hanoi University of Agriculture and provides and ongoing source for

resource economics materials.

7. Policy Briefs
Over the life of the project various results have been developed, particularly in the work of
the research scholars, which have policy relevance so that these have formed the foundation
for a set of policy briefs. These are short summary statements on some of the important
information that has been developed within the project. They are designed to be
understandable to a reasonably wide audience. Briefs 5 and 6 are of a more technical nature
and designed for research and training specialists.

The briefs cover the following areas:

1. The efficiency of prawn production in the Mekong Delta

2. Alternative systems of shrimp culture in the Logoon area Thua Thien, Hue, Vietnam

3. Benefits from variable rate nitrogen application in rice production

4. Optimal investment decisions in shrimp farming in Vietnam

5. Environmental compliance under uncertain enforcement in Vietnam

6. Knowledge of farmers on natural resource management



20

Policy Brief (1)
AusAID CARD Project 025/05 VIE

The Efficiency of Prawn Production in the Mekong Delta
*


Purpose
To provide an update for relevant decision makers on recent information collected and
analysed regarding the efficiency of production for prawns in the Mekong Delta, and on some
of the factors that affect the efficiency of production.

Background
Prawn farming has developed very rapidly as an industry in the Mekong Delta to the point
where it supplies 60 per cent of the value of Vietnam’s annual aquatic product exports and
some 29.2 per cent of the agriculture sector’s contribution to gross national product.
However, over the period 2003-5 some 30 per cent of the total prawn farms were
experiencing economic losses (Sinh 2006) reflecting the high levels of risk involved and
particularly the risk of disease outbreaks. The profitability of prawn farms depends to a
considerable extent on their productivity.

Economic efficiency has two components: technical efficiency and allocative efficiency
(Farrell 1957). Technical efficiency reflects the ability of a farm to obtain maximum output
from a given set of inputs using the available technology (Dey et al., 2000). The levels of
technical efficiency of 193 prawn farms from Bac Lieu province were analysed. A stochastic
frontier model was used to determine the technical efficiency of each farm in the production
of prawns. Then, a second regression model was run, using the technical efficiency measures
and data on the characteristics of the households and farms, to determine which factors were
most likely to influence the level of technical efficiency for a household.

Issues
• Land, and to some extent water resources, are very limited in Vietnam so that their efficient
use is important to the economic growth and development of the country.

• Prawn farming is a new and expanding industry in the Mekong Delta. The importance of
measuring the level of technical efficiency of prawn aquaculture production lies in the need
to ensure that scarce resources (land and water) are being used efficiently and that farmers are
making good returns in this activity.
• Once measured, the key issue is what are the factors that determine or vary with the level
of efficiency of resource use. Clearly some of these factors can be controlled or managed to
the advantage of farmers and the economic development of regions.

Findings
Data from 193 households with prawn farms in Bac Lieu Province were collected in 2004.
On average, the surveyed farmers (head of household) had completed five years of education,
and those operating intensive operations generally had a slightly higher level of education.
Those with intensive operations had smaller households. The average farm area for intensive
farms was 1.2 hectares and 1.74 hectares for the extensive farmers. The average years of
experience in prawn farming was 4 years and 5 years for intensive and extensive prawn farms
respectively. However, a large portion of intensive prawn farmers had very little or no
experience in prawn farming. The average net income of the intensive operators (VND 60


*
Funding for this research has been provided by the AusAID CARD Program, Project 025/05 VIE



21
million) was much higher than that of the extensive operators (VND 10 million). This is the
result of yield being about eight times higher and the production costs being about nine times
higher in intensive compared to extensive operations. Intensive prawn farming was more
profitable on average, however, there was about 37 per cent of both types of farmers with
negative profits. A small number of the farmers (7 per cent) gained very high profits of over

VND 200 million. Intensive farming dominated both the categories.


The average productivity of prawn farms in Vietnam was investigated in a recent survey, and
was reported to be 150 kg/ha/year in extensive farming up to 6,000 – 10,000 kg/ha in the case
of intensive farming practice (Estelles et al., 2002). This can be compared to overall averages
of prawn farm productivity levels in some of the major prawn producing countries like
Thailand (3,116 kg/ha), Malaysia (1,500 kg/ha), China (800 kg/ha), Philippines (770 kg/ha)
and India (635 kg/ha) (Kumar et al., 2004).

Using the stochastic frontier approach, levels of efficiency were obtained and it was found
that labour use, seed (fingerlings), and feed use were the important variables driving
production. The estimated technical efficiency ranged from zero to 90 per cent with a mean
of 46 per cent. Thus, on average prawn farmers were producing at about 46 per cent of their
possible efficiency (intensive 35 per cent and extensive 48 per cent). These efficiencies were
lower than those estimated in India (Kumar et al 2004) and the Philippines (Dey et al 2000).

Considering the factors that affect efficiency, it was found that the more experienced growers
and the younger growers were generally technically more efficient, but that the higher
educated were less efficient. It is likely that better educated but much less experienced
farmers are managing the intensive farms. This type of operation requires greater skills to run
and thus it is more difficult to achieve high levels of efficiency and profitability.

Policy Implications
1. There is clearly scope to significantly raise the technical efficiency of prawn farming in
the Mekong Delta area.
1. There is a basic lack of experience and knowledge about prawn farming in the Delta given
the rapid rise of the industry so that investment in training and knowledge provision is urgent.
2. Prawn farming in the Mekong Delta is currently a risky business so that the efficient
management of inputs is important if the risk is to be reduced. This will involve improved

knowledge and skills in using inputs of feed, seed and labour so as to avoid disease outbreaks
and other risk factors.

References
Dey, M.M., Paraguas, F.J., Bimbao, G.B. and Regaspi, P.B., 2000, ‘Technical efficiency of Tilapia growout pond
operations in the Philippines’, Aquaculture Economics and Management, vol 4, pp. 33-47.

Estelles, P., Jensen, H. and Sanchez, L., 2002, Sustainable Development in the Mekong Delta, Centre for Environmental
Studies, University of Aarhus, Denmark.

Farrell, M.J., 1957, ‘The measurement of productive efficiency’, Journal of the Royal Statistical Society, Series A (General),
vol 120, no 3, pp. 253-290.

Kumar, A., Birthal, P.S. and Badruddin, 2004, ‘Technical efficiency in prawn farming in India: estimation and implications,’
Indian Journal of Agricultural Economics; vol 59, no. 3, pp. 413-420.

Sinh, L. X., 2006, Major considerations on the fishery sector in the Mekong Delta of Vietnam, Presentation to the CARD
workshop, Can Tho, Vietnam, July 15-20, 2006.

More information may be obtained from: Dr Tiho Ancev, Agricultural and Resource
Economics, Faculty of Agriculture, Food and Natural Resources, University of Sydney,
NSW, 2006 and Ms Do Thi Den, Mekong Delta Development Research Institute, CanTho,
Vietnam. Email:



22

Policy Brief (2)
AusAID CARD Project 025/05 VIE

Alternative Systems of Shrimp Culture in the Lagoon area
of Thua Thien, Hue, Vietnam
*

Purpose
To provide information on survey work carried out in three communes on alternative shrimp
farming systems, their profitability, riskiness and cost structures in the lagoon area of Thua
Thien area in Hue Province.

Background
The lagoon area in Thua Thien province is over 22,000 ha and has a population of 350,000
people and 5,734 households. There are both lagoon and coastal fisheries in the area. About
79 per cent of the farms are producing shrimp. The lagoon has been heavily exploited and
there are now a number of resource management problems affecting the quality of the
environment, the water quality and the ecology.

Issues
• Different management systems for shrimp production have very different environmental
impacts and also different economic performance.
• Many factors appear to underlie the choice of management system.
• Rapid development of shrimp farming appears to have led to limited consideration of the
economic and environmental costs.

Findings
Factors shown to affect shrimp productivity in Thua Thien province include (Phuc 2006):
• Density and variety of shrimp
• Use of industrial feeds
• Provision of fresh feed
• Pond settlement

• Disease prevention
• Labour inputs and costs
• Culture forms.

Using a farm survey profit per hectare was as in Table 1 in each of the different systems



*
Funding for this research has been provided by the AusAID CARD Program, Project 025/05 VIE



23
Table 1 Profit and productivity measures for Thua Thien Lagoon Area, Hue Province
Farming system
Profit per ha
000 VND
Productivity
(kg/ha)
Profit per
000VND of
turnover
Profit per
000VND of
costs
Extensive 7,370 318 0.33 0.50
Improved
extensive
12,194 1076 0.16 0.19

Semi-intensive 17,923 1651 0.16 0.18
Intensive 20,123 2320 0.12 0.14
Source: Survey of 171 farm households in October and November 2005 (Lien 2006).

It was also observed that the intensive farming system has the highest productivity and
profitability but also has the highest variability of profits and the highest production costs
(both capital and variable costs).

Policy Implications
1) Poorer farmers generally are using the extensive method of production because of a lack
of capital and skills. Training and education in shrimp farming techniques and good access
to capital resources would seem to be a prerequisite for economic progress in this area.

2) The semi-intensive and improved intensive systems seem best suited to the area from the
point of view of protection of the natural environment since the lagoon area is open to
uncontrolled exploitation. Some measures of control of access and use would seem to be
required to manage the problem of open access.

References
Lien, L.T.K., 2006, Four alternative systems of shrimp culture in the lagoon area of Thua Thien in Hue, Vietnam, CARD
Research Paper, Agricultural and Resource Economics, University of Sydney, Sydney.

Phuc, N.T., 2006, Research on the aquaculture of the lagoon area in Thua Thien, Hue Province, Vietnam, Economics
College, Hue University.


More information may be obtained from: Dr Tiho Ancev, Agricultural and Resource
Economics, Faculty of Agriculture, Food and Natural Resources, University of Sydney,
NSW, 2006 and Ms Le Thi Kim Lien, Economics College, Hue University, Hue, Vietnam.
Email:

24

Policy Brief (3)
AusAID CARD Project 025/05 VIE
Benefits from Variable Rate Nitrogen Application in Rice
Production
*


Purpose
To provide information to decision makers on a recent analysis of the potential benefits of
using variable rate nitrogen applications in rice production and the associated economic and
environmental benefits.

Background
Given the historically small size of farms in Vietnam and that these are sometimes perceived
to be economically inefficient, recent policies (for example, “Don dien doi thua”) have
promoted a process of farm enlargement. However, the evidence from other countries has
been that this process of farm enlargement coincides with a shift in management, whereby
inputs are more intensively used, and are applied uniformly across large crop fields. This has
resulted in a greater farmer dependence on purchased inputs (for example, fertiliser). It has
also resulted in negative environmental impacts as some of the inputs are unused by the crops
and runoff or leach through the soil profile, thereby causing pollution and damage to the
environment.

The concept of variable rate application of inputs is based on the idea of more closely
matching input use to crop requirements as they vary over space and time. In practice, this
means that inputs should not be applied uniformly on a relatively large field, but should be
applied according to the plants needs in different areas of the field. There are various new
techniques that can be used for variable rate application starting from very simple leaf colour
comparison cards to very sophisticated near infrared on-the-go GPS guided sensors.

Issues
• Intensification of agricultural production in Vietnam has had indisputable benefits in
terms of increased agricultural productivity, but has meant that farmers are more reliant on
purchased inputs and these are generating environmental impacts from agriculture that are
more serious and widespread.
• Targeted application of inputs, such as fertiliser or pesticides, by use of variable rate
application, as opposed to a uniform rate of application, alleviates some of the problems
associated with intensification of agriculture.
• However, as with many other technologies, it is important that variable rate
application be an economical and practical way of applying inputs in Vietnam.

Approach
Data from an agronomic experiment that tested several nitrogen fertiliser application rates on
several soil types were used to estimate the economic and environmental performance of
variable rate nitrogen application. Data came from experiments conducted in the Nam Dinh
province of the Red River delta in the North of Vietnam as reported in Ca (2000) and Son
(2004). Rice yield response functions to nitrogen fertiliser were estimated using regression
modelling for both the uniform and variable rate application strategies. Based on these, the


*
Funding for this research has been provided by the AusAID CARD Program, Project 025/05 VIE.