The economics of land fragmentation in the north of Vietnam
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Land fragmentation, where a single farm has a number of parcels of land, is a common
feature of agriculture in many countries, especially in developing countries. In Vietnam,
land fragmentation is common, especially in the north. For the whole country, there
are about 75 million parcels of land, an average of seven to eight plots per farm household.
Such fragmentation can be seen to have negative and positive benefits for farm
households and the community generally. Comparative statics analysis and analysis of
survey data have led to the conclusion that small-sized farms are likely to be more
fragmented, and that fragmentation had a negative impact on crop productivity and
increased family labour use and other money expenses. Policies which allow the
appropriate opportunity cost of labour to be reflected at the farm level may provide
appropriate incentives to trigger farm size change and land consolidation. Policies
which tip the benefits in favour of fewer and larger plots, such as strong and effective
research and development, an active extension system and strong administrative
management, may also lead to land consolidation.