The rural transformation of the two rice bowls of Vietnam : the making of a new Asian miracle economy?

Abstract

This paper assesses the factors driving inclusiveness in Vietnam's rural transformation by comparing the two rice deltas of the country since reunification in 1975. In order to achieve this, a pro-poor institutional development approach based on Adelman is applied. We focus on asset-oriented, demand-generating and price-increasing interventions. Our findings point out that the experienced growth might be considered inclusive, but the dynamics of poverty reduction, income generation, and productivity-enhancement are substantially different in the two delta economies. This might have implications for the prospects of Vietnam's continuation in a ‘growth with equity’ model, if policies and innovations are not locally adjusted.