Solutions to improve the economic efficiency of agricultural land use in yen bai province during 2012 2020

DEPARTMENT OF EDUCATION AND TRAINING
THAI NGUYEN UNIVERSITY
–––––––––––––––



BUI NU HOANG ANH


SOLUTION TO IMPROVE THE ECONOMIC
EFFICIENCY OF AGRICULTURAL LAND USE
IN YEN BAI PROVINCE DURING 2012 - 2020

Speciality: Agricultural Economics
Code: 62 62 01 15



Ph.D THESIS SUMMARY OF AGRICULTURE





THAI NGUYEN, 2013

The study was done at:
COLLEGE OF ECONOMICS & BUSINESS
ADMINISTRATION, THAI NGUYEN UNIVERSITY


Scientific supervisor: Assoc. Prof. Dr. Tran Chi Thien


The peer review 1:

The peer review 2:

The peer review 3:



The thesis is prevented to the Council held in Thai Nguyen
University at the …, … ,2013




Desertation can be found at:
- National Library
- Learning Resource Center, Thai Nguyen University
- Library of College of Economics & Business Administration

LIST OF AUTHOR’S PUBLISHED STUDY

1. Bui Nu Hoang Anh, "Land - a resource, an asset to be protected
and effective use", Journal of Science - Technology, Thai Nguyen
University, Volume 60, Number 12/1 2009, tr. 114-118.
2. Bui Nu Hoang Anh, "The economic situation - Yen Bai province's
social and solutions for sustainable growth", Journal of
Development Economics, National Economics University, No.
162 of 2010, Tr. 100-108.
3. Bui Nu Hoang Anh, "Economic efficiency of some agricultural
land use types in Yen Bai province" Journal of Economics &
Business Administration, Number 1, May 3/2011, p. 72-78.





1
INTRODUCTION
1. Justification
How to use agricultural land to ensure food security and sustainable
development in the climate change along with the pressure of population
growth, the process of industrialization and modernization is becoming a
matter of urgent problems in developing countries.
Vietnam so far is basically an agricultural country. Agriculture, rural,
farmers in Vietnam have been and will be an important position in the
economy of the country. From an agricultural economy focused heavily
subsidized switch to market economy, our country is facing a series of
economic, social and environmental problems. To achieve the goal of
sustainable development, Vietnam needs to improve the efficiency of

agricultural land use, thereby increase income for local people, improve
landscaping, protect environment and ecology.
Pressure of the urbanization process and population growth make our
country farmland decline rapidly in both quantity and quality. People have
been exploited without any reasonable measures to protect this precious
resource. In this context, the effects of climate change and sea level rise
scenario makes arable land in the coastal plain region increasingly narrow,
the potential for soil research, learn some types of agricultural land use,
assessing the appropriateness of the type of land use that as a basis to
propose solutions appropriate land use, effective in mountainous areas is the
problem and strategic and urgent local and national targets to ensure food
security, sustainable development.
Yen Bai is a mountainous province of northern Vietnam. Land of Yen
Bai is very diversity, agricultural land accounts for nearly 80% of the total
land area, but most of the area is steep. Despite the relatively large area but
complex terrain, mostly hilly, educational level is not high, the exploitation
of land resources in general and in particular agricultural land for production
is limited. Production underdevelopment, economic efficiency is not high,
while main source of income of the people here depend on agriculture. So
people's lives in the province is difficult, strenuous. By 2012, income per



2
capita of only 16.6 million, only 53.9% of the average income of the
country. Want to improve the living standards of the people, need to
implement multiple synchronization solutions, which improve the economic
efficiency of agricultural land use.
To ensure food security, poverty reduction and sustainable
development in such a sloping mountainous province of Yen Bai, there is a

need for research on agricultural land. From that fact, to assess the economic
efficiency of agricultural land use and to propose solutions to improve the
efficiency of this land type, "Solutions to improve the economic efficiency of
agricultural land use in Yen Bai province during 2012 - 2020" has been
chosen to study.
2. Objectives
- To systematise theoretical and factual basis of improve the economic
efficiency of agricultural land use;
- To analyse the economic efficiency of different agricultural land use types;
- To analyse the factors affecting the economic efficiency of agricultural
land use in Yen Bai;
- To propose some solutions to improve the economic efficiency of
agricultural land use in Yen Bai province.
3. Study Object and scope
3.1. Object
The economic efficiency of different agricultural land use types and
related issues.
3.2. Scope
3.2.1. Spatial limitation
Study site: Yen Bai province.
Field survey were conducted in 3 districts characterized by three regions:
The low region: Yen Binh district; The middle region: Van Chan district;



3
The upland region: Mu Cang Chai district.
3.2.2. Time range
- Secondary data: collected during the period 2000 - 2011;
- Primary data: Surveys were conducted in the period 2008 - 2011;

- The solution was studied and proposed up to 2020.
3.2.3. Limits on Content
- Evaluating the economic efficiency of some major agricultural land use
types;
- Basic solutions to improve economic efficiency in the use of agricultural
land.
4. Study questions
1. How is the economic efficiency in agricultural land use in Yen Bai
province?
2. What factors affect the economic efficiency of agricultural land use in
Yen Bai?
3. What solution should be implemented to improve the economic efficiency
of agricultural land use in Yen Bai in the future?
5. The new scientific findings
1. A perspective on adherence efficiency of agricultural land use
with food security issues and sustainable development in the context of
climate change has been further confirmed. New perspective on the role of
agriculture in the uplands in ensuring food security, land degradation, water
maintenance, climate regulation and mitigation has been strengthened.
2. A concept of "economic efficiency in the agricultural land use"
was formulated and used to cater for this study.



4
3. The dissertation is the first study on economic efficiency in the
agricultural land use in mountainous Yen Bai Province have a combination
of traditional research methods with modern research methods, qualitative
with the quantitative approach.
4. The cause of agricultural land use situation has been argued, a

fixed-effects model (FEM) has been built to analyze the factors affecting the
economic efficiency of agricultural land use and system of the
comprehensive solutions to improve the economic efficiency of agricultural
land use in a mountainous province in the context of agriculture is facing
many challenges have been proposed.
Chapter 1
SCIENTIFIC BASIS
In this chapter, the thesis codified and clarified the theoretical
issues of agricultural land (concept, agricultural land classification, role and
economic characteristics of agricultural land, and the point of use type of
agricultural land use), the effectiveness, economic efficiency and economic
efficiency in the use of agricultural land to the concept, content, nature,
methods of identification, the influencing factors and evaluation criteria of
economic efficiency in the use of agricultural land. In practical basis, the
authors present the results of research on effective use of agricultural land in
the world and in Vietnam. In Vietnam, the authors analyze and clarify the
status of land use efficiency is not high agriculture through specific aspects
such as agricultural land, loss of agricultural land, the status efficiency
agricultural land before the great challenges of food security, the impact of
land policy on the efficiency of agricultural land use.
Chapter 2
LITERATURE REVIEW
Situation assessment studies and economic efficiency in the use of
agricultural land in the world and in Vietnam has also been mentioned, and



5
lessons has been summarized. Comments drawn from theoretical studies and
practical economic effects of agricultural land use:

- Land resources in general, in particular agricultural land is limited
and the situation has been shrinking in size, has been declining in quality
due to the effects of both natural and human. The pressures of population
growth, increased demand for agricultural products along with the process
of urbanization, industrialization and the land is very large. To ensure food
security, food and sustainable development to improve economic efficiency
in the use of agricultural land.
- The method to study the effect of agricultural land use is diverse, can
apply different approaches in the different study areas.
- To propose solutions to improve economic efficiency in the use of
agricultural land, the study pointed out many factors that affect the effective use
of resources, including subjective factors and objective, both natural and social
factors that impact both positive and negative.
- Economic efficiency in agricultural land use in each country is
different, but the search for solutions to improve economic efficiency in the use
of this resource is essential for all countries, especially that developing countries
such as Vietnam.
Chapter 3
METHODOLOGY
3.1. Study site choosing: 3 areas (lowland and upland areas between) with
3 representatives represent districts based on altitude above sea level (Yen
Binh, Van Chan, Mu Cang Chai) have been chosen. Each district selected
three society, in every society selected 3 villages/hamlets in each
village/hamlet 12 households selected for the survey. After synthesis and
processing of data, 270 households to ensure information reliability is used
in the study.
3.2. Information collection: The secondary data for this study were
collected from the Ministry of Agriculture and Rural Development Research
Institute, Department of Agriculture and Rural Development, Agricultural
Extension Center, GSO, seminars and abroad, the research was published.

6
The primary information collected through household interviews surveys,
focus group discussions, consultations of experts. The primary information
to be investigated in 4 years (2008-2011).
3.3. Methods of information synthesizing and analysis: The information
collected is synthesized by the method of distribution, statistical tables and
graphs. After synthesis, the information is analyzed by a combination of
traditional research methods with modern methods, qualitative methods with
quantitative. That's the method: the sequence of time; extended intervals;
SWOT analysis; method "problem tree"; analysis of project cash flow and
forecasting methods. Categories and methods of data analysis mixture (data
table) is used to analyze the factors affecting the economic efficiency of
agricultural land use in the province of Yen Bai.
3.4. Participatory approach: This approach to PRA tools were used during
the study. We made 6 groups with 60 participants respectively in the
selected communes to collect survey information on the status of
agricultural land use and the preferred solution to improve the economic
efficiency of agricultural land use mainly.
3.5. The system of research targets and criterias: research indicator
system consists of 4 groups: Group targets reflect on the process of
agricultural production; indicators reflect the economic results of
agricultural land use; Group only This reflects the economic efficiency of
agricultural land use; indicators reflect the financial performance of
perennial LUT (production cycle).
Chapter 4
FINDINGS
4.1. Overview of Yen Bai province

4.1.1. Natural Conditions
Mountainous province of Yen Bai is located inland, is one of 13
provinces in the northern mountainous region with steep terrain and most
complex divided our country. Average slope 25-300, where the slope is
more than 450. The climate is sub-tropical monsoon climate zone 5, the



7
average temperature is 22 - 230C, rainfall 1500-2200 mm / year average
humidity 83-87%, facilitating the development of agriculture - forestry.
4.1.2. Social-Economic characteristics
There have been 9 administrative units with a total of 180 communes,
wards and townships including 70 upland and 62 communes with special
difficulties are invested in programs of economic development - social state,
have 2 highland district Tram Tau Mu Cang Chai (H'mong minority
accounts for over 80%) in 61 poor districts, particularly the country's
difficulties. Provincial population in 2010 was people, over 50% are
ethnic minorities. Outdated infrastructure, especially infrastructure for
production and rural infrastructure. Agricultural production is
underdeveloped economic structure slowly shifting. Quality of life is low,
large wealth disparity between the low and high areas.
Province's biggest advantage is the sparse population density, land
mass, abundant flora and fauna, capable of sustainable agricultural
development. The major difficulty is the province's complex terrain, poor
transportation, low literacy levels, extreme weather, natural disasters occur
often seriously affected agricultural production and reduce economic
efficiency health in agricultural land use.
4.2. Status of agricultural land use
4.2.1. Overview of agricultural land in Yen Bai province: In 2010, the total

land area of the province is 689,949.05 hectares, of which agricultural land
accounts for 79.59%. Compared with 2006, agricultural land increased by
26479.59 ha, structural increase 3.71%, but private land 1665.48 hectares
agricultural production declined during this period.
4.2.2. Characteristics of agricultural land in the province: Agricultural land
in three study areas with steep slopes, steep slopes under 15
0
(grade I and
grade II) is favorable for agricultural production accounts for the low rate (3%
- 20%), slope above 15
0
is not favorable for agricultural production accounts
for a high rate (30% - 48%). Agricultural land of the study area fluctuated
with time and fluctuations of the agricultural soils in different regions are not
the same.



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4.2.3. The fluctuation of agricultural land
4.2.3.1. Agricultural land: In 2010, agricultural production land area of 397.11
hectares, but the low rise structure fell 11.39 ha compared to 2000. In the
middle, down 733.71 hectares of this land, the structure fell 2.85%. In the
highlands, in 2010 agricultural production increased land 3253.39 hectares,
but the structure is still down 8.2% compared to 2000. 3 shows the
comparison, the low-rise area of agricultural production, but at least the
structure fell the most, in the most high-rise area, in the middle of the area, but
increased more restructuring decreased less than lowlands.
4.2.3.2. Forest land: 2010, lowland forest land of 24160.93 ha up, the
structure rose 11.68% compared to 2000. In the middle, in 2010 increased

forest land 9866.66 hectares, 3.13% structural increase over 2005. In the
highlands, in 2010 compared to 2000, the area of forest land that rose
51028.97 hectares, up 8.2% on the structure, but if we only consider the
period from 2005 to 2010, the area saw 2010 region's forest land 518.92 ha,
down 2.63% on the structure. 3 Comparing the period 2000-2010 shows,
upland forest land increased in most of the area, but the increase at least
restructuring, while the forest land in the most low-rise structure but at least
the area has increased.
4.2.3.3. Aquaculture Land (Aquaculture): On the lowlands, comparing
2010 with 2000 shows: 74.78 ha land aquaculture increased in size, the
structure fell 0.28%. In the middle, also during this period, increasing
aquaculture area 195.91 hectares, up 0.23% of the structure, and upland soils
increased only 3.95 ha, the structure rose 0.004% . Thus, in the three regions,
the area between aquaculture is the fastest growing area, the lower is the
strongest areas of aquaculture in the province, but has the advantage of wide
Thac Ba reservoir thousands of hectares, so the further expansion of area were
not interested in investing in depth to improve productivity, quality seafood.
Upland area and the structure will increase at least as natural conditions in this
area is not suitable for the development of aquaculture.
4.2.3.4. Other agriculture land: This land kind is very little variation in
all 3 regions. In the period 2005 - 2010, lowland area increased only 0.24
hectares, up 0.0004% of the structure. In mountainous area fell 0.5 hectares



9
agricultural land other, the structure fell 0.001%. In the middle of the area and
the soil structure is not changed.
4.2.4. The major plants and aquatic
Ther have five major crop groups: Group crops, groups of crops, groups

of crops, fruit group; forest trees. The plant is distributed over the different
seasons of the year. Basically, the seasonality of major crops in the same area,
only rice and some fruits such as longan, litchi, orange, mango, grapefruit
upland differences with the remaining 2 due weather conditions, climate and
farming practices in a number of localities in the region.
4.2.4.1. Area, yield and production
Although the growing season is quite the same, but due to the area
and productivity of crops in regions that do not yield the same result in the
study area are also differences.
- In low areas: Research shows that productivity of major crops is
relatively stable and tends to increase over the years. The output of all crops
increased in the period 2000 - 2010, most growth is available, then the corn,
fruit, tea and rice. Production increased due to the increase of both area and
yield, but mainly due to the expansion of the area. The area of the plant that
has been extended to higher productivity is a confirmed fact initially
agricultural land has gradually been used more effectively. The region has
Thac Ba lake with dozens fish species, catches annual average of about
2,000 tons. Aquaculture area tends to expand more and more, but
performance tends to decrease over time due to artisanal mining with
explosives and electrical impulses. Water pollution from cassava processing
factories in the region have reduced breeding productivity. However,
production has increased due to the increase of the area is more than enough
to compensate for the decline of productivity.
- In the middle: After 10 years, the structure of plant area has been a big
change. In 2010, the largest area of tea, then the rice, then the corn. Tea is
plant growth in the area of fastest growth rate of productivity of the forest
trees have the fastest growth rate in 10 years time, then to aquaculture and to

10
corn. In fact, it shows the type of use of agricultural land has been under
intensive investment.
Along the same crops, but yields between different regions in lowland
productivity. The most obvious difference is in the forest during the period
2008-2010. Yield Forestry and 8 years in the age between about 1.8 times
higher than the yield of the same type forest in the lowlands. However, in
aquaculture, by contrast, aquaculture production in lowland areas is higher
than in between 1.7 to 2.3 times. This somewhat gradually reveals the
advantages of each region.
- In the highlands: In the period 2000 - 2010, rice production increased
the most, followed by maize, tea and preliminary investigation. Rice
production increased due to an increase in both area and yield, but yield
increases more. Unlike rice, maize yields increased quite a lot compared to
other crops and also due to the increase of both area and yield, but the increase
due to greater expansion area. Similar to corn, medlar production increased
significantly during this period mainly due to area expansion (4.17 times).
Forestry production increased in 10 years by both area expansion and
productivity enhancing investments. The forest is mainly people in the area is
planted pine needles and medlar. Unlike forest trees of the middle and lower
areas, two crops after 8 years to bring productivity and high income for
growers (with prices 6.000VND/kg result, each original 8 year old medlar for
about 600.000VND income). Aquaculture productivity in this region is lower
than the middle and lower regions, but the output is still increasing due to the
growing area of expansion. Although it has been extended, but the aquaculture
area of this region is only 1/67 the area of aquaculture and the area between
1/98 the lowland area. In fact, it has once again confirmed the strength and
forestry planting restrictions in aquaculture upland.
4.2.4.2. The type of agricultural land used primarily
With more than 30 plants and a variety of seafood and seasonal

distribution combinations, arranged in the form of agricultural land use. In
the study area, the main types are: rice cultivation, rice cultivation combined
with dry plants, specialized crop, fruit trees, tea plantations, forest planting



11
and aquaculture. Due to natural conditions and a variety of reasons such as:
farming practices, investment capital, capacity consumption, so the choice
of type of agricultural land use in different regions.
- In the low: Survey results showed that 90 households in the area,
lychees specialized type of crop (spring beans - beans seasons) and fruit
trees (apricot, plum, litchi) is applied in over 90% of households in the
region. Approximately 60% - 80% of households in selected areas of
cultivation of rice, combine rice with upland crops (2 crops of rice - 1 corn
crop) cultivation or color (3 for vegetables) proved that it is the type of land
use is common and appropriate to the region. Type of rice with upland crops
combined with the rotation of two crops of rice, a few vegetables are
applicable for most (just over 20% of households in selected areas) so hard
and lost a lot of conversion work to do land. The other type is applied in the
range of 40% - 60% of households in the region. More than 40% of
households selected types of aquaculture, sturgeon is a pet bring high
economic value to the people. White Halibut, Tilapia unisexual, rejuvenated,
Sesame were people really loved it and extended surface area for release.
- In the middle: Research shows that this kind of fruit trees (orange),
and specialized crop grown tea (sweet potatoes 2 cases) was applied in most
of the households in the region (90% - 100% of households ). Type of rice
cultivation (spring wheat - winter rice), specialized crop (corn spring -
spring season maize or beans - beans of the season) is over 80% of
households applying. Similarly in lowland rice types associated with upland

crops (2 crops - vegetables for winter 1) applies at least as much work as
land, only 20% of households have more options. Type of upland rice
cultivation fell, fell to 50/90 selected households. Type of forest trees
(mostly banyan, acacia, eucalyptus and bamboo Bat) were selected in 47/90
households (52%).
- In the highlands: Other than the low and middle regions, upland only
18 types of agricultural land use. The level of application forms in this
region are also clear differences. The results are synthesized in Table 4:26



12
shows the percentage of households applying different types of food crops,
food and fruit is very high (around 80% - 100%). Although this type is the
most widely applicable than in the other two areas, but food production,
lower food, thousands of families have fallen into poverty each year of
study. The reason is that in this region is high as 90% of Mongolia's
population, farming practices backward cultivation traditional still applies
100% of households in the investigation leading to low productivity, ease of
cultivation land degradation due to leaching. Type subsistence production
has shown quite clearly in this area, not the type of commodity production
in agriculture and intensive, so in most households to grow crops for food
and to grow flax clothing and types of fruit trees are also applicable in all
the households in the region.
Type of forest trees in accordance with the natural conditions of the
region and is applied in 84/90 households. If in the lower and middle
regions of the tea plant is common in 80% of households in the area and
planted in touch with more than 40% of households are in the ratio 2 of
them have applied this type of just over 20%. Only 13/90 households
applied forms of aquaculture with a total area of 4 ha. This fact once again

shows that aquaculture is not suitable for the kind of high.
The rotation formula and seafood are also options in 3 different areas.
The guarantee of food crops, food is almost the same, but there are
differences in the types of crops, forestry and aquatic products. The
difference in the rotation formula of the type of land use has exposed its
own strength as well as the suitability of each type of livestock, crops in
each region.
4.2.5. Economic efficiency of some agricultural land use types
4.2.5.1. At the low: As a result, the economic efficiency of some types of
agricultural land use in the region is shown in the table below 4:28. The data in
the table indicate that aquaculture is the type of use of agricultural land to bring
the highest economic efficiency shown in all indicators as GO, VA, MI, GTNC,
MI / IC, GO / IC and VA / IC. If we only consider GO separate targets, the type



13
of rice combined with upland crops (2 crops - potatoes 1 case) brings high value
second type of aquaculture, but this type the costs are quite high, intermediate
targets GO / IC and VA / IC is not high. Specialty pomelo output value is not
the second highest, but low cost and pomelo less labor than rice and color so
high value on work, GO / IC and VA / IC of the type of crop fruit (grapefruit
specialty) higher rice combined with dry plants and some other kind of choice in
the region. Considering individual targets GO / IC aquaculture is the type of
land use to bring the highest efficiency (GO / IC = 14.5 times), then the type of
fruit trees (grapefruit specialty) with GO / IC = 8.2 times and effective type of
economy is the lowest for 2 seasons crop potatoes (GO / IC = 2.8 times).
Table 4:28. Economic results and efficiency of some agricultural land
use types in the lower
(Up to 1 ha in 2011)

T
T
Targets
LUT
GO
(mill)
IC
(mill)
VA
(mill)
MI
(mill)
GTNC
(mill)
MI/IC
(times)
GO/IC
(times)
VA/IC
(times)
1
Rice cultivation
29,20
9,70
19,50
19,30
36,50
2,00
3,00
2,00

2
Spring Rice - Rice
season
52,40
16,40
36,00
34,80
43,80
2,10
3,20
2,20
3
Combine rice with
upland crops (spring
rice - rice season -
frozen potatoes)
18,20
6,50
11,80
10,10
30,00
1,60
2,80
1,80
4
Crop (spring potato -
potato season)
16,10
5,50
10,60

9,20
34,00
1,70
3,00
2,00
5
Crop (spring corn)
45,00
5,50
39,50
34,00
150,00
6,20
8,20
7,20
6
Planting fruit trees
(grapefruit)
25,90
9,00
16,90
15,70
35,00
1,70
2,90
1,90
7
Growing fruit
(pineapple)
13,30

3,10
10,20
9,00
30,00
2,90
4,30
3,30
8
Cassava
32,50
10,20
22,30
19,90
32,00
1,90
3,20
2,20
9
Perennial crops (tea)
89,60
6,20
83,40
78,40
261,30
12,60
14,50
13,50
Source: Author's calculations from survey data
4.2.5.2. In the middle: 4:29 table below summarizes the results and economic
performance of some kind of use of agricultural land mainly in the middle. The

data in the table shows, both in terms of production value, efficiency and equity
indicators GO / IC, VA / IC, type of tea plantations bring high economic



14
efficiency, followed by maize, fruit trees, rice, aquaculture, Tea is confirmed
to be strong in this region than in the low and high areas.
Then the corn plant, this plant is very suitable for this region and is an
important condition for the development of animal husbandry. Potatoes Atlantic
is in the testing phase, the high levels of investment and productivity, should
provide good quality production values pretty, but by this stage the cost should
not bring high economic efficiency . On the value of the type of land use usually
takes less labor is higher. In terms of capital efficiency, the type of tea
plantations, maize, fruit trees with high efficiency, and type of planting cassava
with lower performance. At the time of investigation, potato Atlantic has the
lowest performance, but should still future development of this crop by
increasing productivity, and decreasing production costs to meet market demand
(Table 4:29).
Table 4:29. Economic results and efficiency of some agricultural land
use types in the midle region
(Up to 1 ha in 2011)
T
T
Targets
LUT
GO
(mill)
IC
(mill)

VA
(mill)
MI
(mill)
GTNC
(mill)
MI/IC
(times)
GO/IC
(times)
VA/IC
(times)
1
Rice cultivation
(Spring Rice - Rice
season)
50,00
9,71
40,29
32,30
36,46
3,33
5,15
4,15
2
Crops
(Summer Corn - autumn
and winter Corn)
84,16
6,70

77,46
63,55
28,76
9,49
12,56
11,56
3
Cassava
12,50
5,95
8,55
7,70
46,70
1,29
2,10
1,44
4
Crop (Sweet Potatoes)
15,30
6,52
8,78
7,90
36,00
1,21
2,35
1,35
5
Crop (Atlantic Potatoes)
37,10
19,40

17,70
15,93
30,00
0,82
1,91
0,91
6
Perennial crops
(tea)
142,00
10,70
131,30
118,17
35,00
11,04
13,27
12,27
7
Planting fruit trees
22,30
5,60
44,40
39,96
130,00
7,14
3,98
7,93
8
Aquaculture
23,13

4,70
23,75
18,45
45,00
3,93
4,92
5,05
Source: Author's calculations from survey data
4.2.5.3. At the upland region: Figures in the 4.30 table below shows that, in the
upland agriculture land use types, both in terms of production value, value
added, mixed income, the value date, effective capital utilization as well as a
number of economic performance indicators other types of forest trees bring
value and most effective, then to the type of tea plantations, and the type of crop



15
(corn), the lowest effective specialized type of crop to plant soybeans. Type of
crop (soybean) bring high economic efficiency due to relative
commercialization and investment in fertilizer, care should yield poor quality.
Soybean plants are grown primarily for the purpose of anti-fading,
soil improvement, not intensive investment to increase productivity. Despite
the fact that people in the area planted many trees to meet the demand for
food, clothing and food for local practices remain heavily self-sufficiency,
but this study combined with the results of scientific research on soil,
agronomic other, it can be stated that best suits highland forest.
Table 4:30. Economic results and efficiency of some agricultural land
use types in the upland region
(Up to 1 ha in 2011)
T

T
Targets
LUT
GO
(mill.)
IC
(mill.)
VA
(mill.)
MI
(mill.)
GTNC
(mill.)
MI/IC
(times)
GO/IC
(times)
VA/IC
(times)
1
Rice
(Spring Rice - Rice
season)
29,40
10,20
19,20
17,30
35,30
1,70
2,90

1,90
2
Crop
(Summer Corn -
autumn and winter
Corn )
32,50
3,50
29,00
26,10
40,50
7,50
9,30
8,30
3
Cassava
14,50
6,00
8,60
7,70
43,80
1,30
2,44
1,40
4
Crop
(Sweet Potatoes)
13,30
6,60
6,70

6,10
34,00
0,90
2,03
1,00
5
Crop
(Soybean)
15,50
8,40
7,10
6,40
32,00
0,80
1,90
0,90
6
Perennial crops (tea)
102,00
9,50
92,50
83,30
60,00
8,80
10,70
9,70
7
Planting fruit trees
20,00
5,60

14,40
13,00
30,00
2,30
3,60
2,60
8
Aquaculture
21,20
7,50
13,70
12,30
45,00
1,60
2,80
1,80
9
Forestry Planting
130,00
8,00
122,00
120,00
150,00
15,00
16,30
15,30
Source: Author's calculations from survey data
A major challenge for forest development in this area is the lack of
high food and food for everyday life. Challenges that require research and
development solutions agro - forestry or forestry - farming combine to ensure

goals get short-term culture (Table 4:30).



16
4.2.5.4. Economic efficiency of some perennial
Fruits and tea are perennial crops, for harvest many times. To
evaluate the effectiveness of this plant correctly, we use NPV and IRR criteria
for a period of 15 years and at r = 9%, equivalent to the bank rate at the time
of the study. Based on data on output, prices, revenues and expenses for this
perennial plants in three regions, we calculated the following indicators:
a) Net Present Value (NPV)
- NPV result for grapefruit and tea at lowland at r = 9%, respectively
44935.123 and 36728.241 million million. This result shows that it
continues to produce two kinds of perennials at low lying.
- In the middle, at r = 9%, NPV of fruit and tea respectively 53847.354
million and 4.28 million. The results show that should continue to produce
fruit and tea in this region. However, combined with other research
methods, we can see fruit trees should continue to produce in the middle is
citrus fruit.
- In the highlands, the NPV result for fruit and tea at r = 9% is -6.49
14231.173 million and million. Based on the calculated results, should not
continue to expand the types of fruit growing in this region.
Compare the NPV at 3 shows, the fruit trees in low NPV for the highest
value, then the area between the high and the low. As for tea, NPV in the area
between the highest value, then the lower and lowest in the uplands.
b) Coefficient Internal Return rate (IRR)
The value r
1
= r

2
= 7.5% and 12%, the result of IRR value of most
crops are positive and r = 9% larger than that should still maintain the LUT
with fruit trees and tea in the lower and middle regions. Particularly in the
highlands, fruit IRR and NPV = 7.11% = -6.49 shows that in terms of
economic efficiency, not to maintain LUT with fruit trees in the uplands.
In summary, the results of analysis by several methods combined with
secondary data has been compiled from FAO Statistical Yearbook Stat and
Yen Bai provinces, we see economic efficiency in the use of agricultural
land in the province of Yen Bai is not high. Both animal performance, crop,
prices of most agricultural products and income of the farmers of the



17
province of Yen Bai are lower than average in the country and the world. To
improve economic efficiency in the use of agricultural land, need to specify
the factors that affect this issue.
4.3. FACTORS AFFECTING THE ECONOMIC EFFECTS
OF AGRICULTURAL LAND USE
4.3.1. The factors influencing
To identify and analyze the factors that affect the efficiency of
agricultural land in the study area, we selected 126 that a survey variables that
affect us in varying degrees. The selected variables including quantitative
variables and qualitative variables. To achieve the research objectives, we
have chosen the method for synthesis of 6 Categories factor synthesis. The
test results showed that all six factors are statistically significant.
After selection and verification, the results obtained from the
application and processing methods Categories by Cronbach's alpha
coefficient. 4:35 The table below illustrates the results of a number of

variations on this method.
Table 4:35. Illustrating the results of Cronbach's Alpha
for a number of variables
Synthesis Variable
Component Variables
Cronbach's
Alpha
Conclusion
1. Fertility
- Soil pH
1.000
acceptable

- Organic Matter
- The usefulness of P
- Land Respiratory
2. Usages
- Living habits
1.000
acceptable

- Farming practices
3. Cooperation,
transfer
- Community Collaboration
0.807
good

- Infrastructure Construction
Investment

- Technology transfer
- Technology Application
4. Capacity, ability
- Crops & livestock diversification
0.924
acceptable

- The role of cooperation
- Credit Access
- Markets Access
Source: Summary of survey data processing



18
4.3.2. The results of Panel data analysis model
In deciding to use the fixed effects model (FEM) or random effects (REM),
we analyzed combined ability to meet the conditions of the problem with the Hausman
test results. The problem of research on factors that affect the economic efficiency of
agricultural land use. There are many indicators reflecting the economic effects of
agricultural land use, such as: value ratio of the cost of production (GO / IC), rate of
value added in the cost (VA / IC ), mixed-income ratio in costs (MI / IC), the value of
production rate on labor (GO / LD), NPV, The targets we have been using for the
traditional methods for evaluating, comparing the effectiveness of each LUT in each
study area and comparing the LUT in 3 different research areas. Results are presented
in the previous section. In the mixed model the data, with the goal of identifying the
factors that influence and indicate the degree of influence of such factors to the
economic effects of agricultural land use. To achieve that goal, we have selected the
dependent variable is mixed income / 1 ha of agricultural land. This is a variable sum,
best reflects the relationship between the results and compare costs incurred to achieve

results in a given period.
Testing with the following assumptions has been performed:
H0: There is no shortage phenomenon due to unobserved variables
H1: There is an acute shortage due to unobserved variables
The test results for the value or the probability Prob abbreviated as P-value
= 0.0075. With α = 0.05 we find P-value <0.05. Conclusion: The null hypothesis
H0, that is due to the lack of observed variables is inevitable. In fact, the variables
that are not observed to correlate with one or several explanatory variables in the
model. Fixed effects model (FEM) was selected to reduce the bias of the estimates.
Continuing to use the P-value for the test of the coefficient T and the F-test
of the appropriateness of the regression function. The result is that all values of P-
value of the test cases are less than the value of α = 0.05. The results showed that
the ratio of aggregate variables selected () are really different 0, which means that
the X variables are statistically significant, mixed income variables / 1 ha of
agricultural land to dependence on the variable X has chosen. Regression setting is
appropriate and meaningful for analysis. The total factor selected is consistent with
survey data of households and are eligible variables included in the model analysis.
Specifically as follows:



19
- Factor 1 consists of 15 variables from X1 to X15 are called natural conditions.
- Element 2 of 7 from X16 to X22 variable called Economic conditions - social.
- Factor 3 of 3 variables from X23 to X25 is called Infrastructure for
Manufacturing.
- Factor 4 of 5 from X26 to X30 variable called Engineering - Technology used in
agricultural production.
- Factor 5 consists of 32 variables from X31 to X62 are called conditions of farm
production.

- Factor 6 consists of 64 variables from X63 to X126 is called Market.
From the results of the above model, there have been identified six factors
that affect the efficiency of agricultural land in Yen Bai. This is the 6 explanatory
variables are included in the FEM model with the corresponding notation: X1 -
Natural conditions, X2 - Economic conditions - social, X3 - Infrastructure for
Manufacturing, X4 - Engineering - CN application in agricultural production, X5 -
Conditions of household production, X6 - Markets and mixed income / 1 ha of
agricultural land is dependent variable is denoted by Y. The model takes the
following form:
Y
it
= 0,086 + 0,182X
1
+ 0,215X
2
+ 0,151X
3
+ 0,197X
4
+ 0,112X
5
+ 0,150X
6 + u
it

Table 4:36. The coefficients of the model
The coefficients, variables
Coefficients
t

Significance
ß
Standard
deviation
Constant
.086
.159
4.725
.001
Natural Conditions
.182
.031
3.622
.003
Economic conditions - social
.215
.058
4.501
.005
Infrastructure for Manufacturing
.151
.030
5.421
.000
KT - CN application in agricultural
production
.197
.022
4.109
.000

Conditions of household production
.112
.031
5.112
.002
Market
.150
.021
4.234
.004
R
2

= 0.536
F = 6.280 (Sig. F = 0.000)




Source: Results of the model



20
Model results are shown in table summarizes 4.36. The information in the
table shows 4:36, with t the reliability coefficients of the variables, t of all the
variables included in the model were> 3 show the 95% confidence interval. The
value of R2 = 0.536 for model selection that is relatively consistent with the data
collected and 53.6% change in the economic efficiency of agricultural land use
is explained by 6 factors in the model In other words, the 6 independent

variables in the model explained 53.6% of the variation of the dependent
variable. F = 6.280 (F = 0.000 Sig.) showed that the above statistical
significance with 99.9% reliability. All coefficients in the model are positive, it
means that all six factors are studied in the same direction to the economic
effects of agricultural land use. In other words, if any improvements are factors
that increase mixed income per unit area of agricultural land.
Regarding the impact of these factors, the analysis of the whole 3 in
Yen Bai and research shows that economic efficiency in the use of
agricultural land affected by many factors of social conditions ( including
educational level, ability, awareness of farmers, government policy,
cooperation in agricultural production, ) with SS2 coefficient = 0.215,
followed by economic factors - CN applied in agricultural production with
SS4 coefficient = 0.197, then the natural condition factor (SS1 = 0.182),
Infrastructure factor for agricultural production (SS3 = 0.151), factor markets
(ss6 = 0.150) finally a factor of farm production conditions (SS5 = 0.112).
However, combined with results from other research methods shows that the
impact of the above factors in each region is not the same.
The analytical results show that the model, when the natural conditions
are improved than double the current income increased 18.2%. When social
conditions are improved existing double the income per hectare of
agricultural land increased by 21.5%. As the infrastructure for producing
good improvement over existing double the income increase of 15.1%. As
technology improved technology doubles the current income increased
19.7%. When the conditions of farm production was improved twice now,
increasing revenue and 11.2% when the market improved at double the
income is increased by 15%.



21

4.4. OTHER RESEARCH RESULTS
4.4.1. SWOT analysis results
SWOT analysis results show that, if considered in the lowland
regions have more advantages than disadvantages, there are many
challenging opportunities. Region between the advantages and
disadvantages similar; opportunity and challenge each other almost as much.
Upland, in contrast with the low, there are many disadvantages than
advantages, more challenging opportunities.
Also based on the SWOT framework analysis, when compared
with other regions is that the lower and middle regions have more strengths
and fewer weaknesses than the uplands. Despite the differences, but the
basic content is the opportunity for all 3 regions are almost the same, but the
challenge is much higher and bigger than the lower and middle regions. The
SWOT matrix analysis indicated the need to implement activities in each
region to promote the advantages and overcome the disadvantages to seize
opportunities, repelling challenges.
4.4.2. "Problem Tree"
From the results of this study, we build "problem tree" for each
region as a result of many different methods. "Problem Tree" is used to
express the relationship of cause and effect in economic efficiency issues of
agricultural land use. These questions can be answered through the "tree
problem" include: What causes lead to economic efficiency in the use of
agricultural land in 3 regions of the Yen Bai is not high? Economic efficiency
in agricultural land use will lead to lower what consequences? The results
shown on the "problem tree" is one of the important bases to propose
measures to improve economic efficiency for each region in the province.
4.5. SOLUTION ECONOMIC EFFICIENCY IMPROVEMENT IN
AGRICULTURAL LAND USE
4.5.1. Grounds of the solutions: The solution proposed on the scientific
grounds, namely: Natural conditions - economic - social Provincial These

guidelines and policies are applied in the province , land use planning and
development plan of the provincial agriculture period 2011 - 2015 and
orientation to 2020 projections related to agricultural land use, the
advancement of science and technology; Results thesis research



22
4.5.2. Solutions for each study area
"Solution Trees" have been designed for each region on the basis of
model results analyzed factors affecting the economic efficiency of land use
and agriculture "Problem tree". These questions are answered in the
"Solution tree" includes: What solutions are selected for each region?
Which activities are needed to be taken in each solution? What’s the results
of each solution? General purpose and goals of the implementation of
measures to improve economic efficiency in the use of agricultural land
each district be?
The specific solutions based on the results of data analysis mixture
model is mentioned in the "tree" solution for each region. 6 Factors affecting
the regions are not the same level, so priorities are different solutions in
each study area.
4.5.3. Solutions for the entire province
Agricultural land with steep slopes (above 15
0
), the planning of
land use types have the advantage of effectively protecting soil resources,
limiting erosion, runoff and converted from production methods subsistence
to commodity production, increase income per unit area. The LUT suitable
for this soil are: rice cultivation in terraces, tea plantation, planting fruit
trees and planting pastures. The remaining agricultural land with slopes less

than 15
0
popular, regional planning into the annual crop production towards
goods and contribute to ensuring the basic needs of food, food of residents
native, raising income per unit area; mounted in each region of the province
with a typical agricultural products.
Research has suggested solutions for each of these types of land: land
agricultural production, forestry, aquaculture land, agricultural land and an
integrated system solutions, such as application development and scientific
progress - techniques, new technologies in agriculture, forestry and fisheries;
Strengthening agricultural extension and training, human resource
development, investment infrastructure development for production,
agribusiness products, solutions and manufacturing organizations business
mobilize funds and support for capital and credit and to boost trade promotion
activities and market agricultural products, improve the quality of harvest,
processing and storage of agricultural products.