Journal of Economic Development
No. 207 , November 2011, Page 17-23

New Technology For Rice Production: Economic Efficiency And Policy Implications
Đinh Phi Hổ & Đoàn Ngọc Phả

Vietnam has become the world's second largest exporter of rice (after Thailand). The rice export volume of 4-5 million tonnes since 2005 earning over US$2 billion a year promises a possibly sustainable development of rice production. In achieving this result, the Mekong Delta plays a decisive role in terms of rice output and export volume. Rice producers, however, still have to face many difficulties – fluctuations in price and income, weather risk, and keen competition when integrating into the world market. Helping farmers increase rice output and their income has become the biggest challenge to researchers and policy makers in Vietnam today. To achieve this aim, there is no alternative but to apply new technologies to rice production. The national agricultural extension machinery has transferred several new technologies (three-decrease and three-increase; or one-must plus five-decrease methods) to help peasants reduce production cost and adapt to climate change. Based on theories of economics and current conditions in Vietnam, we employ Independent Sample T-test and Chi-Square Test to evaluate elements of new technologies that affect economic efficiency and peasants' adaptation to the environment. Our research is based on a direct survey of 309 peasants in the Mekong Delta, comprising 176 who attended training courses in three-decrease and three- increase, or one-must plus five-decrease techniques; and 133 who failed to do so. We identify three factors - decreases in seeds, fertilizer and pesticide – that affect increases in income, selling price, and rate of return; and decrease in production cost.

New Technologies; Agricultural Extension; Three-Decrease And Three- Increase Technique; Onemust Plus Five-Decrease Technique.
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