Summary of doctor of finance banking thesis research on factors affecting the farmers intention to participate in rice insurance in the red river delta

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INTRODUCTION

The dissertation aimed to identify the factors and their influence on farmers' intention
to participate in rice insurance in the Red River Delta and propose solutions to promote the

1. Rationale
Vietnam is an agricultural country with rice being its dominant crop. Rice directly
contributes to national food security. Over the past three decades, Vietnam's rice has been
known to the world through the nation's impressive rice export figures and this crop has

formation of farmers' intention to participate in rice insurance.
2.2. Specific objectives
- Systematize and establish a primary theoretical framework related to rice insurance

always been making a significant contribution to Vietnam's economic growth. Although the
results achieved are great and remarkable, rice production has always faced many risks in

in particular and factors affecting farmers' intention to participate in rice insurance.
- Analyze the current situation of rice insurance in the Red River Delta.

recent years, such as natural disasters, pests, and markets... In order to mitigate the
consequences from the above risks for farmers, from 1982 to the end of 1983, the

- Identify the degree and direction of these factors' impacts on the farmers' intention
to participate in rice insurance in the Red River Delta.

Government piloted rice insurance in two districts including Vu Ban and Nam Ninh (former

Ha Nam Ninh), the company in charge of this type of insurance at that time was Bao Viet.

- Provide opinions, solutions and recommendations to promote farmers' participation
in rice insurance.

The pilot program of rice insurance in this period was considered as unsuccessful by the
Ministry of Finance as only very few households participated in the program which was less

3. Research questions
- What are the differences between traditional agricultural insurance and index

than 3% of the total households in the cultivated area (Pham Thi Dinh, 2013).
On March 1, 2011, the Prime Minister issued Decision No. 315/QD-TTg on the pilot

insurance? What are the advantages and disadvantages of index insurance?
- Why is the demand for rice insurance in the Red River delta not high?

provision of agricultural insurance during 2011-2013. Rice insurance was piloted in seven
provinces, in which two of them (Nam Dinh and Thai Binh) are located in the Red River
Delta. The results of the pilot rice insurance in this period were quite successful, but there
were still many shortcomings. After the provision ended, agricultural insurance in Vietnam

- Which theoretical model is the basis for the research of the dissertation?
- What factors affect farmers' intention to participate in rice insurance? Which factor
has the greatest influence?
- What are solutions to motivate farmers to participate in rice insurance in the future?

once again stalled. By April 2018, the Government issued Decree 58/2018/ND-CP on
agricultural insurance and Decision No.22/2019/QD-TTg dated June 26, 2019 on

4. Research scope and subject
- The research subject is the factors affecting farmers' intention to participate in rice

agricultural insurance assistance policies to encourage insurance companies to deploy mass
rice insurance nationwide. However, the rice insurance situation in the Red River Delta in

insurance.
- Research scope

particular and the whole country in general have not shown any further progress.
Theoretically, rice insurance offers farmers many benefits, but in reality, the

+ In terms of content: The research studied factors affecting farmers' intention to
participate in rice insurance including attitude, subjective norms, perceived behavioural

Government and insurers have tried to promote this type of insurance many times but all
failed. To develop rice insurance, a particularly important factor is the establishment of

control, communication, participation procedures and the Government’s insurance premium
assistance policies.

farmers' intention to participate in insurance. In order to determine which factors affect the
intention to participate in rice insurance, the author selected the topic "Research on factors

+ In terms of temporal aspects: The dissertation studied different periods during
2011-2018

affecting farmers' intention to participate in rice insurance in the Red River Delta" to
propose solutions to promote the formation of intention to participate in rice insurance and
orientate towards the deployment of mass rice insurance in the future.

+ In terms of spatial aspects: The dissertation surveyed and sampled in Thai Binh and
Nam Dinh.

2. Research objectives
2.1. General objectives

5. Research methods
The research combined qualitative research with quantitative research, as well as
used exploratory factor analysis, multivariate regression analysis to test the research model
and hypothesis via SPSS 21.0 software.
6. New contributions of the dissertation


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In terms of academic and theoretical aspects

agricultural production

The dissertation clarified the theoretical issues related to rice insurance, insurance

a. In the world
Olivier Mahul (2005) affirmed that the role of insurance "is to compensate for
losses caused by adverse weather and similar events beyond the grower's control".

methods according to weather index. Also the study clarified the current situation and
explained why farmers are not really interested in rice insurance.

Additionally, it

discovered the gaps in theory, reality and research methods, and selected the TPB model to
conduct the research.

Olivier Mahul and Charles J. Stutley (2010), Olivier Mahul (2012) stated that
agricultural insurance is “an effective tool of the Government” with a positive role in
economic growth and poverty reduction. The European Commission (2001) and OECD
(2011) both considered agricultural insurance to be a very effective risk management

In terms of research results
Through the three elements of the TBP model, the dissertation proposed a model
consisting of six factors: attitude, subject norms, and perceived behavioral control,
communication, participation procedures and the Government’s fee assistance policies. The
author offered viewpoints on the development of rice insurance and proposed solutions and
recommendations to promote farmers' intention to participate in rice insurance in the Red
River Delta in particular, and the nationwide development of rice insurance in general. The
solutions are (1) The Government increased the insurance premium subsidy for farmers with
priority given to production households; (2) Strengthen the communication on rice
insurance; (3) Form a value chain of commodity rice production with insurers' participate;
(4) Provide financial support for the local implementation of rice insurance.
6. Structure of the dissertation
In addition to the introduction, acknowledgments, lists of tables, references,
appendices, the dissertation was organized into five chapters as follows:
Chapter 1: Research overview and theoretical basis
Chapter 2: Methodology
Chapter 3: Scientific basis of rice insurance and factors affecting farmers' intention to
participate in rice insurance
Chapter 4: Analysis of factors affecting farmers' intention to participate in rice

insurance in the Red River Delta
Chapter 5: Perspectives on the development of rice insurance and solutions to
promote famers' participation in rice insurance in the Red River Delta.
CHAPTER 1
RESEARCH OVERVIEW AND THEORETICAL BASIS
1.1. Research overview
1.1.1. Studies on agricultural insurance as an effective risk management tool in

and loss reduction tool.
Myong Goo KANG (2007) affirmed that "Implementing the agricultural
insurance program is necessary for farmers" and assessed the limitations of traditional
insurance. The index insurance can play an important role in managing natural and
climate risks (FAO, 2011). Therefore, the implementation of agricultural insurance in a
new direction is essential.
Thus, all studies confirmed that in the risk management measures for farmers,
insurance is the most active and effective one.
b. In Vietnam
Luyen Minh Duc (2012) claimed that analysis of agricultural insurance is an
effective shield for farmers against risks in the production process. GlobalAgRisk (2009)
said that the Government should support in collecting data and calculating the indices that
have impacts on the participation in agricultural insurance.
Pham Thi Dinh (2010) and Nguyen Dinh Chinh (2011) pointed out that reinsurance,
potentials and business strategies of insurers, farmers' perception and financial conditions
are those factors that affect farmers' participation in agricultural insurance. . The policy
system is incomplete, insurance products are not specific for each target group, which has a
negative influence on the development of agricultural insurance (Pham Bao Duong, 2011).
Relief policy after natural disasters has a negative correlation with the participation in
agricultural insurance (Nguyen Ba Huan, 2014).
Hoang Trieu Huy, Phan Dinh Khoi (2015); Trieu Duc Hanh, Nguyen Thi Mao (2012)
discovered that factors including production scale, household income, promotion methods

of agricultural insurance, and the government's support have a positive correlation with
households' participation. In addition, people's awareness, academic qualifications of the
household head, production habits (Nguyen Thi Chinh, Phan Anh Tuan, 2013) affected
farmers' demand to participate in agricultural insurance.
1.1.2. Studies on the factors affecting farmers' decision to participate in agricultural
insurance
a. In the world


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Smith and Baquet (1996) claimed that factors promoting insurance participation are
loans, education, and attitude towards risks. He notably pointed that the premium does not

participation in rice insurance include the age of household owners, academic qualifications
of household owners, households' rice area, risk and income from agricultural production.

affect the decision to participate in insurance. However, according to Shiva S. Makki &
Agapi Somwaru (2001), the choice of insurance purchase depends on the premium, the

Nguyen Duy Chinh et al (2016) said that the farmers' tendency to participate in
insurance have a negative correlation with insurance premium while rice area, experience in

expected compensation, the level of risk and the availability of alternative risk management
tools. Research by Ginder, Matthew G. Spaulding & Aslihan D (2006) showed that

cultivation and productivity have a positive correlation with income diversity.

insurance premium is the most influencing factor in farmers' decision to participate in
insurance.

rice insurance in particular
When studying the intention to participate in insurance, Nguyen Tien Dung et al

Demographics and production are both influential (Bruce Sherrick, 2004), as the
older the age of farmers is, and the larger cultivated area is (Oyinbo O et al., 2013), farmers

(2015) discovered that five factors including attitude, subjective norms, perceived
behavioral control, preventive measures, and the degree of tolerance for financial risk affect

are likely to participate in insurance. According to Goodwin and Mishra (2006), the decision
to buy agricultural insurance also depends on age, academic qualifications, production scale,

the intention of residents in Ho Chi Minh City in buying voluntary retirement insurance.
The study showed that the three factors including attitude, subjective norms, perceived

financial characteristics, and communication. In addition, Goodwin (1993) argued that the
two factors that most strongly affect the need to participate in agricultural insurance are

behavioral control have positive impacts, and this result is consistent with studies applying
TPB model. In addition, preventive measures have positive impacts and the level of

production area and total production costs.
Barry et al. (2004) showed a higher likelihood of participating in crop insurance for

financial risk acceptance has negative impacts on people's intentions. Nguyen Hoai Tram
Anh (2017) listed the factors influencing the intention to buy insurance are purchase

older and large farms. Research by Oynibo et al (2013) again showed that demographic and
factors related to access to agricultural extension and services do not affect the decision to
participate in agricultural insurance.
Filip Branstrand and Fredrik Wester (2014) again claimed that society, age, education,

decision, benefits and reputation, barriers, services, savings, and family's opinions.
When studying the intention to participate in voluntary social insurance, Nguyen Thi
Nguyet Dung, Nguyen Thi Sinh (2019) combined the model TPB and TAM, and the results
showed that there are four factors consisting of knowledge, communication, awareness of

years of cultivation, production area have impacts on the demand for insurance. Incentives for
farmers do not show any statistical significance towards the decision to participate in

usefulness and income that affect labors' intention to participate in insurance. Truong Thi
Phuong, Nguyen Thi Hien (2013) pointed out there are six factors that affect the intention to

insurance.

participate in voluntary social insurance which are awareness, attitude, social impacts,
knowledge, income and communication. While Hoang Thu Thuy and Bui Hoang Minh Thu

b. In Vietnam
Monte L. Vandeveer (2001) when studying the demand to participate in insurance of
litchi farmers in Northern Vietnam discovered that productivity, history of damage, farmers'
perception have positive impacts on the demand to participate in insurance. Pham Le Thong
(2013) claimed that the large cultivated area and high academic qualificationstend positively

1.1.3. Studies on factors affecting the intention to participate in insurance in general and

(2018) showed that five variables including understanding of policy, attitude towards

participation, risk perception, participation procedures, ethics have influence on farmers'
intention to participate, while communication and Influence from family factors do not.

influence the decision to buy insurance while manufacturing experience negatively affect
the decision. In addition, households participating in insurance training program, having

1.1.4. Research gaps
- Theoretical gaps: There have been no studies on the factors affecting farmers'
intention to participate in rice insurance in the Red River Delta in particular and in Vietnam

eassy resource mobilization and high prices of finished rice tend to participate in rice
insurance (Hoang Trieu Huy, Phan Dinh Khoi, Phan Thi Anh Nguyet, 2014).
Phan Dinh Khoi and Quach Vu Hiep (2014) also argued that academic qualifications,

in general.
- The reality gap: Most of the studies only mentioned the agricultural insurance, but
not the factors affecting the intention to participate in rice insurance. Their contents are

years of experience, training in agricultural engineering, insurance information, loans,
production area, production costs are the factors that affect the decision to participate in

often presented only in descriptive statement of problems, and do not have the connection
with the Red River Delta.

agricultural insurance. Luong Thi Ngoc Ha (2014) when studying households' willingness to
pay for agricultural insurance in Tien Du, Bac Ninh also concluded that factors affecting the

- Gaps in research methods: Most studies applied the qualitative method to analyze,
evaluate and provide preliminary judgments with orientation. Some carried out the

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quantitative method but their research objectives were completely different with those of the
dissertation. In this study, the author combined both qualitative and quantitative methods to

influencing intentions are attitudes and subjective norms, according to Ajzen (1991), the third
factor affecting intentions is perceived behavioral control. Does perceived behavioral control

evaluate the factors affecting farmers' intention to participate, offer solutions and
recommendations that encourage the participation in rice insurance, and they can be served

reflect easily or difficultly the performance of a behavior, and is it restricted? Many
subsequent studies discovered that there is a relationship between perceived behavioral

as a foundation for the development of rice insurance in the Red River Delta in particular
and the nation in general.

control and intentions (Armitage and Conner, 2001; Armitage, 2005; Fen and Sabaruddin,
2009; Shah Alam and Mohamed Sayuti, 2011).

1.2. Theoretical basis
1.2.1. Theory of intentions and purchase behavior
According to Ajzen (1991), “intentions are supposed to capture the motivational
factors that influence behavior, they show how much people try to be willing to try and how

1.2.4. Technology Acceptance Model (TAM)
TAM provides the basis for examining the impacts of external factors on a person's

much efforts they make to perform the behavior”. Concurrently, according to Ajzen (2002),
intention is the intermediate premise of behavior. On the other hand, behavioral economics

internal beliefs (Davis et al.) in product or service acceptance (Davis & Vankatest, 2000).
According to Ajzen & Fishbein (1975, external impacts affect the attitude indirectly
through one's beliefs.

argued that the buying decision stems from many aspects, especially after the theory of
buying behavior was developed by Fishbein (1979); Ajzen (1985); Ajzen (2008); Fishbein

1.2.5. The model combining TPB and TAM
The model combining TPB and TAM was proposed by Taylor and Todd (1995).
According to this model, a behavioral intention is influenced by three factors: (i) the

and Ajzen (2011). Buying behavior is influenced by factors such as subjective norms,
attitudes, beliefs and intentions (Ogenyi Ejye and Owusu-Frimpong, 2007; Omar, 2007;

individual's attitude towards a behavior; (ii) subjective norms or social pressure on the
individual's behavior; (iii) the individual's ability to control when performing behaviors

Fletcher and Hastings, 1984; Hastings and Fletcher, 1983).
From the marketing point of view, Philip Kotler et al (2001) argued that consumers
score brands and from that form their purchase intentions/ According to the American
Marketing Association, customer behavior includes thoughts, feelings and actions they

1.2.6. Theory of the connection among attitude, intentions and behaviors
Ajzen and Fishbein (2005) combined their research results in two models including
TRA and TPB to produce a synthetic model studying impacts of attitude on behavior. The
model core is a series of causal effects that begin with the formation of behavioral beliefs,

perform in the course of using products. Factors such as opinions from others, advertising,
price, product appearance ... can all affect the intentions and behavior of customers.

norms and control. These beliefs are assumptions that affect attitude, subjective norms and
perceived behavioral control, thereby create intentions and behaviors.

Predicting human behavior is a fundamental goal of theories in the field of social
psychology. Many theories have emerged to serve this purpose such as Theory of Reasoned

1.2.7. Related models
Nguyen Thi Nguyet Dung and Nguyen Thi Sinh (2019) removed attitude from their

Action (TRA), Theory of Planned Behavior (TPB) and its development theories...

model with the explanation that attitude could not be considered as a complete intermediary
to assess the impacts of perceived usefulness and perceived ease of use on behavioral

1.2.2. Theory of Reasoned Action (TRA)
Theory of Reasoned Action (TRA) was built in 1967 by Fishbein. After that, this
theory was further upgraded (Fishbein & Ajzen, 1975 and Ajzen & Fishbein, 1980). The

intentions. In addition, they added two elements including income and communication into
the model. While Hoang Thu Thuy and Bui Hoang Minh Thu (2018) applied the TRA

theory had been used extensively in research and was highly useful in predicting
different human behaviors (Madden, 1992).

model and the TPB model, adding the elements of communication, perceived risk,
participation procedures and moral responsibility. From these two models, it can be seen

TRA examines the relationships between beliefs, attitudes, intentions and behavior.
In this theory, the intention is the factor that influences the behavior, in which the intention
is determined by one's attitude about the behavior and the subjective norms related to the

that the communication and participation procedures have impacts on people’s intention to
participate, and this serves as the suggestion related to factors for the research model of the
dissertation.

behavior.

Therefore, based on the research overview and theories of buying intentions of
customers, the dissertation proposed the factors affecting farmers' intention to participate in

1.2.3. Theory of Planned Behavior (TPB)
Theory of Planned Behavior (TPB) is the development and improvement of TRA
(Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975). In addition to the two main factors

rice insurance in the Red River Delta which include attitude, subjective norms, perceived
behavioral control, and communication and participation procedures.


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CHAPTER 2
METHODOLOGY
2.1. Research process
On the basis of the research model, the dissertation established a research process
consisting of six stages
Stage 1: Determine research objectives
Stage 2: Research the theoretical basis and previous studies.

Stage 3: Qualitative research and investigation of insurance companies and farming
households
Stage 4: Quantitative research
Stage 5: Carry out Cronbach Alpha coefficients and exploratory factor analysis to
test the value of variables and evaluate the reliability of the official scale.
Stage 6: Use multivariate regression to test research models and hypotheses
2.2. Research design
2.2.1. Qualitative research
Qualitative research was carried out using in-depth interviews with experts with the
following purpose:
- Examine and discover more independent variables affecting intention to participate
in rice insurance in the original theoretical model (formed on the basis of literature
overview).
- Modify the scale, through in-depth interviews, the author aimed to check whether
the investigated subject correctly understands the meaning of the scales or not, whether the
structure and words of the scale are easy to understand, easy to answer or not. From there,
the scale will be modified before quantitative research is conducted.
2.2.2. Quantitative research
+ In terms of insurance companies, the dissertation sent the survey questionnaire to
the non-life insurance enterprises in Vietnam, and the subject of the survey was leaders of
these firms.
+ In terms of farming households: The survey carried out in Thai Binh and Nam
Dinh used the simple random sampling. In each province, the author chose three districts, in
each district three communes were selected, in each commune the study chose three
villages, and in each village, 10 households were selected. Therefore, the sample size was
540 households, which met the research conditions by Hair et al. (1998) and Tabachnick &
Fidell (1991).
The tool used to run the model was SPSS 21.0 software

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2.3. Data and research methods
2.3.1. Research data
Secondary data
Descriptive statistics including comparison, classification, graph... was used to
analyze this type of data.
Primary data
+ Data of farming households: the study surveyed 540 farming households in Thai
Binh and Nam Dinh.
+ Data of insurance companies: The author interviewed and surveyed experts from
insurance enterprises.
2.3.2. Research methods
Descriptive statistics
The dissertation used descriptive statistics to process data, analyze the results, and
effectively deploy rice insurance in particular.
Cronbach's Alpha
The dissertation examined the reliability of the score via Cronbach's Alpha
coefficients with criteria: Cronbach's Alpha> = 0.6: Acceptable with new studies;
Cronbach's Alpha from 0.7 to 0.8: Usable score; Cronbach's Alpha> 0.8: Good score
Exploratory factor analysis (EFA)
The study used factor loading as an indicator to ensure practical significance of EFA;
KMO index demonstrated the suitability of EFA; Eigenvalue value represented the variation
explained by one factor compared to the variation of all factors.
Analysis of variance (ANOVA)
ANOVA was used to discover whether different attributes affect differently the
intention to participate in rice insurance?
Regression analysis
The dissertation used the Binary Logistics regression model with the following
equation:
Y= βo + β1X1 + β2X2 + β3X3 + β4X4 + β5 X5 + β6X6
In which:

+ The variable Y1 is the dependent variable representing farmers' intention to
participate in rice insurance in the Red River Delta.
+ X1, X2, X3, X4, X5, X6 are independent variables representing factors affecting
the intention to participate in rice insurance.
+ βo, β1, β3, β4, β5, β6, are the coefficients of the regression model.
2.4. Establishment of models and scales
2.4.1. Establishment of research model


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The study used the TPB model to conduct the research, the survey process was
carried out through two stages. In stage 1, the author sent the questionnaire to the non-life

H1: Attitude towards the participation in rice insurance has a positive correlation
with the intention to participate in rice insurance

insurance companies in Vietnam and concurrently conducted in-depth interviews with 15
experts. The purpose was to review the scales and determine that in addition to the three

H2: Subjective norms have a positive correlation with intention to participate in rice
insurance

factors in the TPB model, whether it is possible to include new factors including
communication on rice insurance, participation procedures, the Government's assistance

H3: Perceived behavioral control has a positive correlation with the intention to participate
in rice insurance

policies in the model. In stage2, after identifying the possible factors, the research built the
questionnaire, investigated households to verify the impacts of these factors on their

H4: Communication on rice insurance has a positive correlation with the intention to
participate in rice insurance

intention to participate in rice insurance.
The results of stage 1 showed that the independent variables that the dissertation

H5: Participation procedures for rice insurance have a positive correlation with the
intention to participate in rice insurance

planned to include in the model can have influence on dependent variables. Consequently
the author proposed the research model with six independent variables and 1adependent

H6: Insurance premium assistance policies have a positive correlation on the
intention to participate in rice insurance

variable as follows:
CHAPTER 3
SCIENTIFIC BASIS OF RICE INSURANCE AND FACTORS AFFECTING

Attitude towards rice
insurance

FARMERS' INTENTION TO PARTICIPATE IN RICE INSURANCE
H1

Subjective norms

Perceived behavioral control
in participation in rice
insurance
Communication on rice
insurance
Participation procedures for
rice insurance

3.1. Objective necessity and the role of rice insurance
3.1.1. Objective necessity

H2

3.1.2. The role of rice insurance

H3
Intention to participate
in rice insurance

H5

3.2. Rice insurance
3.2.1. Insurance form
3.2.1.1. Based on the scope of insurance, it is possible to deploy rice insurance in two forms

H6

which are finite risk insurance and comprehensive insurance.
a. Finite risk insurance

H4

The Government's fee
assistance policies

b. Comprehensive insurance
3.2.1.2. According to insurance methods, there are two types of insurance which traditional
insurance and index insurance.
a. Traditional insurance
b. Rice insurance according to the index

2.4.2. Establishment of research scale
To measure the variables, based on previous studies and survey results of insurers as
well as interviews with experts, the study established scales. The scale used by the author
was the Likert scale with five levels of popularity from Totally disagree to Totally agree.
2.4.3. Research hypotheses
There were six hypotheses given corresponding to these six following factors:

3.2.2. Subject and scope of insurance
The insured subject of rice insurance is the yield harvested at the end of the season.
The insurance period is usually from the time of planting to the time the product is
harvested.
3.2.3. Insurable value and Sum Insured


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Regarding rice, farmers buy insurance before each season, therefore insurable value

and sum insured are determined based on the average actual harvested output in the past few

3.4.1. Attitude
Attitude is a behavior that is defined as a "judgment of an individual about the results

years and the average price per unit of production in those years.

obtained from the performance of an act" (Ajzen, 1991), or "a person's general opinions
about the disapproval of certain behaviors (Ajzen & Fishbein, 1980).

3.2.4. Risk control, loss prevention and reduction
a. Risk control
b. Loss prevention and reduction

3.4.2. Subjective norms
Subjective norms are described as "one's perception of whether most of the

3.2.5. Inspection and compensation
Inspection is carried out to examine the causes and the extent of the loss. And when

individuals that are important to this individual think that person should or should not
perform a certain behavior" (Ajzen & Fishbein, 1980) or is "the individual's perception of

compensating, the insurer must pay attention to the compensation rate, the exemption level,
the salvage value...

social pressures to perform or not perform a behavior" (Ajzen, 1991).

3.2.6. Prevention of rice insurance profiteering
In order to prevent profiteering in rice insurance, insurance terms and rules are

requires to be strictly constructed. In addition, the communication should be strengthened,
so that farmers can see the long-term effects of insurance profiteering.
3.2.7. Reinsurance in rice insurance
The arrangement of reinsurance is mandatory. The purpose of rice reinsurance
arrangement is to protect the insurance company, and at the same time ensure benefits for
farmers.
3.3. Farmers' intention to participate in rice insurance
3.3.1. Consumer behavior
According to the American Marketing Association, consumer behavior is the
interaction between environmental stimuli and human perception and behavior through

3.4.3. Perceived behavioral control
Perceived behavioral control is defined as "the individual's perception of how easy or
difficult it is to perform a behavior" (Ajzen, 1991). Perceived behavioral control presents
how easy or difficult an individual feels about the ability to perform a behavior.
3.4.3. Communication
Communication is understood as the process of exchanging information, interacting
with each other between two or more people, enhancing mutual understanding, and
changing perceptions.
3.4.5. Participation procedures
The participation procedures demonstrate the process of accessing and finding out
relevant information of customers for the enterprise and its products.
3.4.6. The Government’s fee assistance policies
The Government’s insurance premium assistance policies are the sponsorship of

which people change their lives. According to Phillip Kotker and Levy (2001), customer
behavior is specific behaviors of individuals when deciding to purchase, use or dispose

either part or the participants’ entire insurance premium. The policy helps farmers reduce
their financial burden when participating in insurance, and concurrently encourage them to

products or services. Thus, customer behavior is the customers' whole process from the
moment they have a demand for certain goods or services until they choose to buy and use

have more confidence in the policy.

these goods and services.
3.3.2. Customers' intention and decisions
The stages in the buying process were introduced by Engel et al. (1968).
Stage 1: Acknowledgement of demand

3.3. Agricultural insurance in some countries and lessons for Vietnam
3.3.1. Agricultural insurance in some countries
3.3.1.1. In Spain
In Spain, there are three programs which are multi-risk damage insurance,
productivity insurance based on geography, Productivity Insurance based private farms.

Stage 2: Research for information
Stage 3: Evaluation of options
Stage 4: Decision-making: Normally consumers decide to buy products according to

Premium subsidies are a key element in Span's policy. The rate of subsidy for insurance
premiums has varied significantly from 0.47% in 1998 to 0.58% in 2008 and the
Government is the last reinsurance sponsor for insurance companies.

their intentions, but there are two factors that can influence them including others' attitudes
and unexpected factors of the situation.

3.3.1.2. In the US
The US government established the Federal Crop Insurance Corporation (FCIC)

Stage 5: Post-purchase behavior
3.4. Factors affecting farmers' intention to participate in rice insurance

which is a 100% state-owned enterprise and is now regulated by the risk management
agency (RMA). The United States is a country with a variety of insurance plans. Multi-Peril


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Crop Insurance has three programs including Catastrophe insurance (CAT), Buy-up
Coverage; Group insurance (GRP). Revenue Insurance consists of three programs which are

enterprises. Fourthly, it is essential to ensure the rule of majority in agricultural insurance.
Fifthly, most countries have conducted insurance nationwide, and concurrently provided a

Income Protection, Crop Revenue Coverage (CRC), Revenue assurance (RA).
The US government provides assistance in many ways such as providing insurance

number of mandatory groups to participate in insurance to limit adverse selection. Sixthly,
the State often creates a "push" for the agricultural insurance market. Seventhly, product

benefits, basic natural disaster yield insurance coverage for the entire crop area,
compensation assistance, administrative cost support for public Insurance companies and

design is simple, easy to understand, suitable with the needs and capabilities of farmers, and
it is necessary to combine traditional insurance with index insurance; in the long term, index

the Government's acceptance of reinsurance.
3.3.1.3. In India

insurance should be focused on more. Eighthly, the Government should select an
appropriate model for agricultural insurance implementation.

India implements Compulsory Agricultural Insurance for borrowers. Currently there
are these insurance plans as follows: Comprehensive Crop Insurance Scheme (CCIS);
National Agricultural Insurance Scheme (NAIS); Weather Based Crop Insurance Scheme
(WBCIS) National Crop Insurance Programme (NCIP). Small and medium-sized farming
households receive a 50% premium subsidy from the government and state government (cofinancing). Losses being more than 150% of the premium insurance will be compensated by
the Agricultural Relief Fund co-indemnified by the central government and state
governments at a 1: 1 ratio. Besides, the Government also supports the management costs of
the program.
3.3.1.4. In China
The China Insurance Regulatory Commission forms four insurance companies
specializing in agricultural insurance. Local authorities in some provinces work closely with
PICC and CUPIC to develop and pilot a wide range of agricultural products and new
programs. The Chinese government subsidizes about 35% of the insurance premium for

CHAPTER 4
ANALYSIS OF FACTORS AFFECTING FARMERS' INTENTION TO PARTICIPATE
IN RICE INSURANCE IN THE RED RIVER DELTA
4.1. Natural and socio-economic conditions in the Red River Delta and the
development of rice production
4.1.1. Natural conditions
4.1.2. Socio-economic conditions
4.2. The current situation of rice insurance in the Red River Delta
4.2.1. Before 2011
In 1982, the Government started implementing a pilot rice insurance program in Vu

Ban and Nam Ninh districts (formerly Ha Nam Ninh province). The insurance company
were assigned to implement rice insurance at that time was Bao Viet. The pilot period was

farmers, the provincial government subsidizes 25%, and the district government subsidizes
no less than 10% of the insurance premium for the farmers. Thus, farmers only have to pay

from 1982 to the end of 1983. In 1984, due to changes of the production method from the
cooperative model to the household economic production model and a good harvest, most of
farming households did not join rice crop insurance. Therefore, since 1984, Bao Viet

about 10-30% of the insurance premium.
3.3.1.5. In Japan

stopped the implementation.
By 1993, Bao Viet re-deployed the rice insurance in 12 provinces. Although these

Japan is a typical country in building the National Mutual Insurance Federation of
Agricultural Cooperatives in three levels: national, provincial and village level. Japanese

provinces are typical rice growing provinces, the covered areas accounted for only a small
portion of the total cultivated area of the province. Subsequent results showed that the main

Agricultural Insurance relies on the cooperation of local farmers to establish a common
reserve fund by accumulating insurance premiums to minimize farmers' losses in case of

beneficiaries of insurance were farmers from the area being the most at-risk of damage, this
contradictory situation caused many serious difficulties for Bao Viet (FAO, 1999).
However, the results achieved were not really meaningful, because the insured area

natural disasters. The Japanese government sponsors about 50% of the premium and is the

ultimate reinsurer.
3.3.2. Lessons for Vietnam
Firstly, rice insurance is designed as a commercial product that develops based on
the law of supply and demand. Secondly, the State often sponsors agricultural insurance,
especially in the early stage of implementation. Thirdly, the State combines state insurance
and other financial instruments and the State is the ultimate reinsurer for insurance

only accounted for a very small part, therefore after two years the program was forced to
stop because of huge losses.
4.2.2. During 2011 - 2013
4.2.2.1. The basis for the implementation of rice insurance in the Red River Delta during 20112013


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On March 1, 2011, the Prime Minister issued Decision 315/QD-TTg on pilot
implementation of agricultural insurance in 21 provinces and cities during 2011-2013; of

small, and most of them are poor farming households. Insurance businesses are still not
really interested in the implementation of rice insurance.

which seven provinces were piloting rice insurance. The Government also stipulated two
insurance companies to carry out the pilot implementation, Bao Viet and Bao Minh.

Causes of the shortcomings
1) In terms of farmers: Firstly, farmers' awareness of risk management and insurance

Concurrently, the Government also regulated the insurance premium assistance policy

according to the classification of farming households. Since the promulgation of Decision

was low. Secondly, their financial capacity to participate in insurance was limited. Thirdly,
the scale of rice production was small and fragmented. Fourthly, rice production was mainly

315/2011/QD-TTg, the Government and related ministries have continuously issued a series
of documents to guide the implementation.

based on experience. Fifthly, the mindset of relying on financial support mechanism from
the State was still popular.

4.2.2.2. Evaluation of the current situation of rice insurance participation
As Decision 315/2011/QD-TTg was applied from July 1, 2011, then the spring crop

2) In terms of insurance companies: Firstly, insurance companies shared a common
perception that rice has high risks, the frequency of risks was quite high, and the

and the season were over, therefore in 2011 there was no rice insurance in the Red River
Delta. By 2012 and 2013, the number of insured households and the insured rice area

identification of nature and causes of risks was difficult. Secondly, profits obtained from rice
insurance were low. Thirdly, insurers faced many difficulties in risk management. Fourthly,

increased in the three years of this pilot. Although the rice cultivated area in 2013 decreased
compared to 2012, the rate of insurance participation was higher due to the increase in the

the extent of damage tended to exceed the financial capacity of insurance enterprises.
Fifthly, insurers have not invested properly in human resources to implement agricultural

insured area . In the three-year pilot, the structure of poor households participating in

agricultural insurance in these two provinces still accounted for the majority: 96.74% in

insurance. Sixthly, insurers were also unable to actively control the farming process.
3) In terms of the State: Firstly, the Government has been focusing on supporting

2012 and 94.84% in 2013 in Thai Binh; 95% in 2012 and 94.3% in 2013 in Nam Dinh. In
2012, after the storm No. 8, Bao Viet paid more than 2,690 billion VND to households in
Tien Hai district, Thai Thuy.

poor households. Secondly, the period time for the pilot implementation was too short, and
the scale was too large. Thirdly, the State has not provided adequate support for
communication. Fourthly, the Government has not provided funding for implementation in
local areas. Fifthly, the State has not focused on investigation, research and forecasts and

4.2.3. During 2014 - 2019
Since Decision 315/2011 / QD-TTg expired in 2013, the basis for the implementation
of rice insurance by Bao Viet and Bao Minh was no longer the same as before, therefore

this led to a lack of databases to calculate premium and build insurance index. Sixthly, there
is a lack of a mechanism for close and regular cooperation between insurance enterprises

farmers' motivation to participate in rice insurance also disappeared.
On April 18, 2018, the Government issued Decree 58/2018/ND-CP on agricultural

and local authorities and relevant sectors in the implementation of agricultural insurance.
Seventhly, the Government did not actively participate in the rice insurance.

insurance. This Decree provided policies to support agricultural insurance through the
support related to agricultural insurance premium for several insured agricultural production

4.3. Analysis of factors affecting farmers' intention to participate in rice insurance in

organizations and individuals in some certain areas. On June 26, 2019, the Prime Minister
issued Decision No. 22/2019/QD-TTg on the implementation of policies to support

the Red River Delta
4.3.1. Descriptive statistics of research samples
The dissertation surveyed 540 households in Nam Dinh, Thai Binh. 426 of them were

agricultural insurance including rice as the subject. Fundamentally, the subsidy rate for rice
insurance premiums according to Decision No. 22/2019/QD-TTg was lower than that in the

collected, 28 were invalid and 398 were eligible for analysis. Specifically, there were 188
households in Nam Dinh province accounting for 47.2% and 210 households in Thai Binh

period of 2011 - 2013.
Since Decision 315/2011 / QD-TTg expired until two new documents took effect,
rice insurance has not been deployed.

province accounting for 52.8% of the survey sample. There were 351 males accounting for
88.2%, and 47 women accounting for 11.8%. The age of household owners ranged from 26
to 67 years old, of which most of household owners were from 40 to 50 years old. Most of

4.2.4. Shortcomings and causes
Although the Government has issued many incentive policies, the results of pilot

the households had monthly income from 5 to below 10 million dong. There were 285
households who have participated in rice insurance, and only 113 households have not

agricultural insurance still have some limitations such as: The insurance coverage area was

not large, the number of farming households participating in agricultural insurance was

participated in rice insurance.
4.3.2. Testing of the scales' reliability


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Measurement variables were assessed their reliability through Cronbach's Alpha
coefficients. The results of the correlation coefficients of each total variable with the

significance level of 5%, especially the two variables TD and HT had Sig <0.01 so these
two variables were significant at the 1% statistical level. Variable CQ had the rate of Sig =

component measurement variables reached the value being greater than 0.3. Cronbach's
Alpha coefficients of all factors were greater than 0.7. Therefore, it can be concluded that

0.152> 0.1 and variable TTu had the rate Sig. = 0.564> 0.1, so the CQ and TTu variables
were not statistically significant at the 10% and 5% level. The F statistic value from the

the scale of six independent variables (25 observed variables) and one dependent variable(5
observed variables) used in the study were appropriate and reliable.

ANOVA was equal to 65,149, the value of Sig. = .000, so the linear regression model was
suitable for the data set and can be used.

4.3.3. Exploratory factor analysis (EFA)
Before testing the values of the scales with EFA , the author examined whether the

The relationship between the dependent variable and the independent variables was
illustrated as a standardized regression equation as follows:

data was eligible for analysis with KMO and Barlett's test. The results showed that 25
observed variables satisfied all the conditions.

YD = 0.19*TD + 0.072*CQ + 0.111*NT + 0.136*TT + 0.301*HT +0.032*TTu
Hence, according to the regression coefficients table, the independent variables all

4.3.4. Regression models and tests
4.3.4.1. Descriptive statistics of the variables

affected farmers' intention to buy rice insurance. Additionally, all factors in the model were
statistically significant and had a positive correlation with the intention to buy rice

Based on the results of descriptive statistics of the variables in the model, it can be
seen that the mean of variables ranged from 4.1 to 4.4. This demonstrated that a large

insurance, the regression coefficients b were all greater than 0. Therefore, the testing results
of hypotheses in the model all disapproved H0, approved H1, H2, H3, H4, H5 and H6. This

number of people agreed with opinions about these variables. The factor with the highest
consensus was communication, the factor with the least consensus was subjective norms.

proved attitude, subjective norms, perceived behavioural control, communication, the
Government’s insurance premium assistance policies, the supply ability for rice insurance

The mean value of intention to buy insurance variable was 4.31 which was greater than 4.
This proved that the intention to buy rice insurance was relatively high among farmers.

4.3.4.2. Analysis of correlation coefficients between variables
Peason coefficient test was used to test the linear relationship between independent

all had the positive correlation with farmers' intention to buy rice insurance. The degree of
impacts of six factors ranked in descending order was (1) the Government’s insurance
premium assistance policies (standardized β was .301), (2) Attitude (standardized β was
.190), (3) Communication (standardized β was .136), (4) Perceived behavioural control

variables and dependent variables. The correlation coefficient of independent variables with
dependent variables was relatively high, ranging from 0.609 to 0.743. Therefore, it can be

(standardized β was .111), (5) Subjective norms (standardized
Participation procedures (standardized β was .032).

concluded that these variables were suitable for their inclusion in the explanatory model of
rice insurance. In addition, the correlation coefficient between independent variables was

4.3.5. Analysis of variance (ANOVA)
4.3.5.1. Evaluation of differences in intention to participate between two groups of farmers

less than 0.8, so there was no sign of high multicollinearity in the model.
4.3.4.3. Multi linear regression model

who have never participated in rice insurance
The results of ANOVA showed the rate of Sig. = 0.000 <0.05, therefore, at a

The multivariate linear regression equation showing the relationship of six factors
influencing farmers' to buy rice insurance has the following form:

confidence level of 95% demonstrated that the intention to participate in rice insurance

between the two groups of households who have never participated in rice insurance was

YD = b0 + b1TD + b2CQ + b3NT + b4TT + b5HT + b6Ttu
In which, the independent variables were attitude (TD), subjective norms(CQ),

different. Specifically, the average intention of the never-participating household group was
4.16, which was lower than the average intention of the group that has participated being

perceived behavioral control (NT), communication (TT) ), the Government’s insurance
premium (HT) and participation procedures (TTu) and the dependent variable was farmers'
intention to participate in rice insurance (YD).

4.37.
4.3.5.2. Evaluation of differences in intention to participate in rice insurance according to
gender

According to the estimated results of the model: R Square = 0.613; therefore, the
independent variables in the model can explain 61.3% of the variation of the dependent

The results of ANOVA showed the rate of Sig. = 0.003 <0.05, therefore, at a
95% confidence level, the intention to participate in rice insurance differed between

variable. Sig coefficients of the independent variables including TD, NT, TT and HT in the
model were less than 0.05, so these independent variables were statistically significant at the

male and female household owners. Specifically, the mean value of intention by female
owners was higher than that of male owners. In addition, it can be seen that the value

β was .072), (6)

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range of intention to participate by female owners was from 2.6 to 5.0; meanwhile, the
value range of intention to participate by male owners was from 1.0 to 5.0, which

accounting for 8.55% (standardized β was .072), and participation procedures making up
3.80% (standardized β was .032).

implied that female owners were more likely to to participate in rice insurance than
male ones.
4.3.5.3. Testing of differences in farmers' intention to participate in rice insurance
according to income

CHAPTER 5
SOLUTIONS AND RECOMMENDATIONS TO PROMOTE FARMERS'

The results of ANOVA showed the rate of Sig. = 0.014 <0.05, therefore, at a 95%
confidence level, the intention to participate in rice insurance differed between groups of

INTENTION TO PARTICIPATE IN RICE INSURANCE IN THE RED RIVER
AREA

households according to different levels of income. Specifically, the mean value of intention
to particiapte in rice insurance of high-income farming households was higher than that of
low-income farming households
4.4. Discussion on the analysis results of how the factors affect farmers' intention to
participate in rice insurance in the Red River Delta

The dissertation examined the degree of impacts between independent variables
including attitude (TD), subjective norms(CQ), perceived behavioral control (NT),
communication (TT) ), the Government’s insurance premium (HT) and participation
procedures (TTu) with the dependent variable was farmers' intention to participate in rice
insurance (YD).
Cronbach's Alpha illustrated that the scales of these factors were consistent and
reliable. The dissertation used KMO and Bartlett's Test, and the results showed that the
variables were related to each other and qualified for EFA. The thesis analyzes EFA via
Principal component method with Varimax rotation. Correlation coefficients of the variables
ranged from 0.609 to 0.743 - it can be seen that independent variables were suitable to be
include in the explanatory model. Additionally, there were no signs of high multicollinearity
in the model.
According to the regression results, all independent variables affected farmers'
intention to buy rice insurance, and all the factors of the model were statistically significant
and had a positive correlation with farmers' intention to buy rice insurance. The relationship
between the dependent variable and independent variables was represented as a standardized
regression equation as follows:
YD = 0.19*TD + 0.072*CQ + 0.111*NT + 0.136*TT + 0.301*HT + 0.032*TTu
According to the standardized regression equation, the degree and ranking of
variables' impacts were as follows: the Government’s insurance premium assistance policies
contributed 35.75% in the formation of intention to participate in rice insurance
(standardized β was .301), followed by attitude contributing 22.57% (standardized β was
.190), communication accounting for 16 15% (standardized β was .136), perceived
behavioural control taking up for 13.18% (standardized β was .111), subjective norms

5.1. Orientation and perspectives on the development of rice insurance
The Party and State are always interested in agricultural development, and determine
this as a strategic mission. Over the past years, the State has issued a number of regulations
demonstrating the orientation and determination to develop agricultural insurance in
general, in which there is rice crop insurance. On that basis, the dissertation proposed three

viewpoints to develop rice insurance in the future as follows:
Viewpoint 1: The Government considers rice insurance as a product operated under
the market mechanism. In order to develop rice insurance, it is necessary to approach the
supply-demand relationship. Customer's demand is the driving force leading insurers to
deploy insurance products for rice. Viewpoint 2: Rice insurance is a special insurance
business. Therefore, the Government should develop a specific legal framework, and play a
role in the establishment of a national insurance program. In particular, public financial
funds are required to subsidize insurance premiums, as well as legal and institutional
infrastructure development. Viewpoint 3: In the short term, the Government continues to
pilot rice insurance in more developed and expanded provinces. In the long term, the State
should have compulsory regulations on rice insurance for a number of insurers and some
farming households.
5.2. Advantages and disadvantages in the process of implementing rice insurance
5.2.1. Advantages
5.2.2. Disadvantages
5.3. Solutions to promote farmers' participation in rice insurance in the Red River Delta
5.3.1. Insurance premium assistance policies for farmers to participate in rice insurance
The dissertation discovered that insurance premium assistance policies had the greatest
impact on the farmers' intention to participate in rice insurance (35.75%). Therefore, the
Government should determine the priority beneficiaries of assistance (commodity producers)
as they are the driving force for the development of the agricultural economy, and they have
large cultivated areas as well as demand and high rate of participating in insurance.


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5.3.2. Promotion of communication on rice insurance for farmers
Communication had a degree of influence being 16.15% on farmers' intention to

monitor the production process, give advice and support farmers in risk prevention, loss
inspection and reduction.

participate. Therefore, insurance companies and the Government should actively promote
rice insurance, focus on households who have participated in pilot rice insurance in the

5.4. Recommendations
5.4.1. For the Government
5.4.1.1. Develop policies to support and promote farming households to participate in rice
insurance

previous period. Concurrently, the survey results showed that the subjective norms had
positive impacts being 7.2%, therefore communication should focus on spreading
information towards households that have participated in insurance.

5.3.3. Increase of farmers' awareness and attitude towards the participation in rice
insurance

The Government should increase the level of insurance premiums for farmers; prioritize
the supply for households producing goods; specify the criteria for consideration of insurance

Attitude impacted 22.57% on the intention to participate in rice insurance, so it is

premium; regulate some groups of farmers to participate in rice insurance; provide preferential
credit policies for farmers participating in rice crop insurance; support farmers with production

necessary to raise the farmer's awareness towards rice insurance. In order to achieve that, it
is important to help them become aware of the benefits of rice insurance. Farmers

training costs.
5.4.1.2. Support companies to provide rice insurance services and create favorable

themselves should actively participate in training courses and communication related to rice
insurance to understand and have a more open view on rice insurance.
5.3.4. Improvement of farmers' activeness when participating in rice insurance
Households that are not poor and near poor should actively research and participate

conditions for farmers to access insurance
It is necessary for the Government to develop a mechanism to encourage insurers to
participate in rice insurance; obligate a number of insurance companies to participate in rice
crop insurance; supporting insurance companies in training human resources to deploy rice

in rice insurance. On the other hand, risk reporting should be done seriously and
transparently, and concurrently farmers should comply with regulations on risk prevention

insurance; support in building a database on rice.
5.4.1.3. Financial support for the local areas to implement rice insurance

and reduction.

The Government should study and support the funding for the pilot implementation
of rice insurance for local areas, and create motivations to help them implement rice

5.3.5. Improvement of procedures for rice insurance participation
Insurance companies should concentrate on clearly explaining the terms and
regulations of rice insurance. They should guide farmers on the insurance participation

insurance more thoroughly. However, it is vital to devise measures to closely manage the
finance and avoid the corruption.

procedures as well as the insurance claims process. These processes should be completed
and streamlined to avoid causing troubles to farmers or making them feel "easy insurance

5.4.1.4. Strengthen communication and dissemination of rice insurance to farmers
- The State plays a major role in the communication related to rice insurance.

payment, difficult compensation".

Communication must be done regularly and promptly before each season. The government
should also take farmers receiving compensation as examples to illustrate the benefits of

5.3.6. Selection of an appropriate implementation form of rice insurance
In addition to implementing traditional rice insurance, insurers should coordinate
with relevant agencies such as hydro-meteorological agencies, statistics offices in districts...,

insurance in particular.
- The Government should also simplify legal documents related to rice insurance in

actively and proactively collect weather data, rainfall, yield loss or rice area caused by
natural disasters to build a set of insurance indicators, proceed to implement rice insurance

particular so that the communication process can be convenient and easy to understand.
5.4.1.5. Regulate the coordination among stakeholders in the design and deployment of

according to indices.
5.3.7. Establishment of human resources to implement rice insurance
Along with the Government, it is necessary for the insurers actively build a team of
employees who are knowledgeable about rice insurance. Insurance companies should set up

products to create favorable conditions for farmers in their participation in rice insurance
In addition to the Government's regulations, relevant ministries, agencies and
governments at all levels should also have specific responsibilities in the implementation of
rice insurance.

an agency system from provinces to villages and communes, link them with local
organizations and agencies such Youth Union, Farmers' Union, Women's Union ... In each

5.4.1.6. Form a value chain of commodity rice production and stimulate the farmers'

area implementing rice insurance, businesses should build a risk management division to

demand to participate in insurance in the value chain


25
The government should build a value chain of rice production and encourage insurers
to participate in this chain, ensure the quality of goods, and promote the demand to

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Dinh and Thai Binh in the Red River Delta. Therefore, the generalization of the
study was not high, and in other provinces, there can be specific characteristics

participate in rice insurance.
5.4.2. For insurance companies
5.4.2.1. Select the method of implementing rice insurance and design appropriate and easyto-understand products

The dissertation still has some shortcomings as follows:

Firstly, the research only conducted surveys in the two provinces including Nam

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which affect farmers' intention to participate in rice insurance.
Secondly, although the study tested the evaluation of differences in intention to

In addition to applying traditional insurance methods, insurance companies should
research and deploy insurance based on indices

participate between two groups of farming households according to the gender, the
research only pointed out the impacts of independent variables on the dependent

5.4.2.2. Train human resources and expand the network to deploy rice insurance, create
favorable conditions for farmers to access information and participate in insurance.

variable which is yet to be under the control of the demographic variable.
This can serve as the new direction for future studies in order for these shortcomings to

Insurers actively build a team of employees who are knowledgeable about rice
insurance..., organize training courses on agricultural knowledge for insurance employees.

be resolved and new insights to be discovered.

5.4.2.3. Promote communication about enterprises and rice insurance products to farmers
It is essential for insurers to develop programs to propagate benefits, as well as
responsibilities of farmers when participating in rice crop insurance; combine the traditional
and non-traditional channel for rice insurance products; actively exchange and negotiate
with domestic and foreign reinsurance businesses on the terms of reinsurance.
5.4.2.4. Improve the quality of inspection and compensation

The inspection and compensation for rice insurance should be done in a consistent
manner with the implementation methods and if they are carried out well, it will stimulate
farmers to participate more actively.
5.3.3. Recommendations for the Party Committee and local authorities
5.3.3.1. Actively participate in communication about rice insurance
5.3.3.2. Proactively collect data on rice production as well as risks and damage in the area

CONCLUSION
Based on the TPB model, the dissertation constructed a research model with six
independent variables and one dependent variable. The test results showed that the
Government’s insurance premium assistance policies had the largest influence, followed
by attitude and communication. The remaining ranking was perceived behavioral control,
subjective norms, and participation procedures respectively. This serves the basis for the
dissertation to propose solutions and recommendations to promote farmers' intention to
participate in rice insurance in the Red River Delta in the future, and carry out the mass
application for the whole country.
Shortcomings and the direction for future studies