VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE
KIM SUN HO
LIVELIHOODS IMPROVEMENT FOR ETHINIC
MINORITIES’ HOUSEHOLD IN LAO CAI PROVINCE,
VIETNAM
Major: Economics of Development
Code: 9 31 01 05
THESIS DISSERTATION SUMMARY
AGRICULTURAL UNIVERSITY PRESS – 2018
Research results are published at
VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE
Scientific Advisors: Assoc. Prof Dr. Nguyen Thi Minh Hien
1st reviewer: Asc. Prof. Dr. Do Anh Tai
2nd reviewer: Asc. Prof. Dr. Nguyen Phuong Le
3rd reviewer: Dr. Nguyen Manh Hai
Dissertation will be presented under appraisement of the Scientific
Assembly from Vietnam National University of Agriculture
at.............................2018
Dissertation could be found at:
1. National Library of Vietnam
2. Library of Vietnam National University of Agriculture
PART 1. INTRODUCTION
1.1 PROBLEM STATEMENT
Lao Cai is a mountainous area, sharing border with Yunan province of China.
There are 8 districts, 1 city, 164 communes, wards and towns. The population is
over 637 thousand people, which 25 different ethnic minority groups accounts for
64.1%. The large area of agricultural, forestry land, many climate sub-regions
together with rich natural mineral resource is a great potential for Lao Cai in the
process of development of (Lao Cai Statistic Department, 2017).
Over the past few years, Lao Cai Province has received support from many
projects funded by Vietnamese government, other agencies and NGOs. Particularly
from 2009 up to now, ODA donors and non-governmental organizations have
invested a total capital of 154 million USD in Lao Cai for rural infrastructure
development, urban infrastructure, economy development linked to sustainable
poverty reduction, environmental protection and human resource development.
Together with international donor funded projects on poverty reduction, programs,
projects using state budget such as NTP on NRD, Program 135, Program 30a, NTP
on fresh water and rural sanitation, National Program on education and training
implemented in the province have brought positive changes. The poverty rate
decreased rapidly at average of 5% per year.
In the process of international integration, expansion of border trade and
along with the government's support policies, Lao Cai has had a strong development
pace in recent years and achieved various significant successes in all aspects.
Economic growth for the period 2010 - 2015 reached an average rate of over 14%.
Rural infrastructure has been significantly improved. The quality of education has
been enhanced and enrollment ratio has been maintained. Lao Cai People’s health
care has been improved as well as the guarantee of social security. In addition,
public administration reform has achieved positive results. The business
environment of the province has been highly appreciated by enterprises.
However, Lao Cai still faces many difficulties and challenges, such as
unfavorable weather including natural disasters like hail, flash flood, and snow in
the mountainous districts like Muong Khuong, Bac Ha, Si Ma Cai, Sa Pa and Bat
Xat, which causes great damages to people and materials. The poverty rate has
declined, but it still remains high, especially among ethnic minority households.
The high poverty rate is still prevailing in some localities in the province, majorly in
6 districts such as Bac Ha (28.5%), Simacai (29.5%), Muong Khuong (31.3%),
Sapa (25.3%), Van Ban (22.2%), and Bat Xat (21.6%). Most ethnic minority groups
are involved in agricultural production. They grow maize as their main food crop
and raise buffalo, cows, goats and pigs. Few ethnic minority members are involved
in other activities (services, government, etc.). The livelihoods are not divers. The
production is mainly for self-sufficiency and lack of commodity products, so the
income level of households is lower than non-ethnic minority households. The poor
in these regions are struggling to raise their livelihood and living standards,
accessing new technologies, credit, market, but particularly being vulnerable to
natural disasters leads to fragile livelihood.
Therefore, it is necessary to conduct a research in order to find solutions for
livelihood improvement for the ethnic minority household in Lao Cai province,
generalize solutions to Lao Cai province, as well as for the further northern part
provinces of Vietnam, which has similar geographical and natural conditions.
1.2. OBJECTIVES OF THE STUDY
1.2.1. General objective
The study aims to assess current situation and analyze difficulties and factors
affecting livelihoods of the ethnic minority households. Based on the study,
solutions will be proposed to improve and ensure sustainable livelihoods for
households of ethnic minorities in Lao Cai province.
1.2.2. Specific objectives
(1) To review and develop theoretical and practical literature on livelihood
and improvement of livelihood for ethnic minority household;
(2) To evaluate current situation of livelihoods of ethnic minority households
in Lao Cai province;
(3) To analyze factors affecting livelihood outcomes of ethnic minority
households in Lao Cai province;
(4) To provide solutions and propose recommendations to improve
livelihoods of ethnic minority households in Lao Cai province.
1.3. SUBJECTS AND SCOPE OF THE STUDY
1.3.1. Object of study
Research object of this study is theoretical and practical issues regarding
livelihoods of ethnic minorities in Lao Cai Province.
1.3.2. Scope and limitation of the study
Livelihood of farmer households will be studied via five types of capital,
including human, natural, physical, social and financial capitals and then livelihood
activities, strategies and outcome will be determined. After defining factors
affecting to livelihood outcome, solution systems will be proposed to improve
livelihood of ethnic minority household.
The research is conducted in Lao Cai province. However, four representative
districts of Lao Cai (Bac Ha, Muong Khuong, Sapa and Simacai) where many
ethnic minority households living will be selected for in-depth
Secondary information on livelihoods was information and data in period of
2015-2017. Primary data on current livelihood status in the study sites were
collected in 2017. The solution will be supposed to apply until 2020 and vision
2025.
1.4. CONTRIBUTION OF THE STUDY
This study contributes to make significant contribution to both theoretical
and practical aspects as follows:
* Theoretical aspect
This study synthesizes theories and experiment lessons on livelihood,
sustainable livelihood and livelihood improvement. It also contributes to develop
current methods in analyzing and assessing livelihoods of ethnic minorities.
*Practical aspect
This study provided an updated database on livelihood status of ethnic
minorities Lao Cai province; analyzed the current situation on livelihood of ethnic
minority households and factors affecting livelihood of ethnic minority households
in Lao Cai; drew applicable solutions to improve livelihood of ethnic minority
households in Lao Cai province. The results of the study can also be applied to
localities with similar characteristics to Lao Cai.
PART 2. THEORY AND PRACTICAL REVIEW ON LIVELIHOOD
IMPROVEMENT FOR ETHNIC MINORITY HOUSEHOLDS
2.1. BASIC THEORY
2.1.1. Concepts on ethnic minority households
A household is a unit of society consisting of one or more of a group of
people living and eating together (demographics). Households are not consistent
with a concept of the family; people in the household may or may not have blood
relations, nurture or marriage, or both.
“Ethnic minority is a group of people of a particular race or nationality
living in a country or area where most people are from a different race or
nationality” (Oxford University, 2014)
The official academic definition of an “ethnicity” is “a stable community,
formed over a historical period, involving relationships of identity in regard to
language, habitat, socioeconomic activities, and cultural characteristics – a
community whose members are also conscious of their shared ethnic identity, on the
basis of foregoing relations”. The Vietnamese population, therefore, was classified
into 54 official ethnic groups, of which the Kinh is the vast majority and the
remaining consists of 53 other groups, officially called the ethnic minorities (dan toc
thieu so, dan toc it nguoi) (Dang, 1998).
2.1.2 Features of ethnic minorities
i) Living in harmony.
ii) Ethnic minorities live together with others. Each has a different level of socioeconomic development, but there is no separate territorial division and social
regime among groups.
iii) Each ethnic group has its own cultural identity, creating a diverse, rich and
unified Vietnamese culture.
iv) The residence place of ethnic minorities play a very important role in politics,
economics, culture, security, national defense and foreign affairs and sustainable
protection of ecological environment.
v) The economy in the mountainous areas, still underdeveloped.
vi) The proportion of poor and hungry households in ethnic minority and
mountainous areas is higher than the national average rate.
vii) The political system in ethnic minority and mountainous areas is still weak.
viii) The enemy forces always find ways to take advantage of difficulties of ethnic
minorities in their livelihood, low intellectual, and make use of mistakes of local
authorities in implementing the Party's and State's ethnic policies.
2.1.3. Theories of livelihood analysis and livelihood framework
2.1.3.1 Concept of livelihood
There are numerous approaches and definitions on livelihood. “Livelihood is
defined as adequate stocks and flows of food and cash to meet basic needs”.
Chambers et al. (1992) stated that a livelihood comprises the capabilities,
assets (including both physical and social capital) and activities required for a
means of living. A livelihood is sustainable when it can cope with and recover from
stress and shocks and manage to enhance its capabilities and assets both now and in
the future, while not undermining the natural resource base.
Ellis defined livelihoods as the assets (natural, physical, human, financial and
social assets), activities and opportunities to access to these assets and activities (via
institutions and social relations) that jointly determine the living gained by
individual or households (Ellis, 2000).
Livelihood could be defined as a bundle of resources and human abilities,
incorporating with decisions and activities they make for their livings and realizing
their targets and expectations. (DFID, 1998),
This study is focusing on the latter perspective of livelihood as considering
how people make a living.
2.1.3.2. Sustainable livelihoods
Sustainable livelihood is a livelihood strategy in which all sustainable
elements are ensured. These elements are economy, environment and institutions.
The sustainability of livelihood activities largely depends on many factors such as
capital accessibility, human capital, social relations, and development policies.
However, the sustainability of natural resources is foundation to decide the
sustainability of a livelihood.
In general, a livelihood of a household and community is considered to be
sustainable when: (i) Individuals, households, and communities can overcome
shocks caused by natural disaster, diseases and economic crisis; (ii) They can
expand their current resources without exerting negative effects on natural
environment.
2.1.3.3. Improving livelihood
Livelihood improvement is an act that aims to improve livelihood outcomes
in a stable and sustainable manner. These activities may be single or combination of
the following activities: i) Improving livelihoods capitals: Improving access ability
to these resources for ethnic minority households; Using more sustainability and
effectively livelihood resources; ii) Creating or modifying livelihood activities and
strategies. The diversification of livelihood activities will improve livelihood
outcomes, create stability and mitigate risks; iii) Reducing the external negative
factors that affect livelihood resources or livelihood outcomes; iv) Implementing
appropriate supporting policies to improve the efficiency of livelihood resources
and create stable and sustainable livelihoods.
2.1.4. Content of assessment of livelihood status of ethnic minority household
- Analyzing livelihood capitals: The five principal capitals (natural, human
social, physical and economic capitals), which are important to livelihood are
analyzed
- Analyzing livelihood activities and strategies of ethnic minority
households: The results of this analysis help to find appropriate and potential
livelihood models for ethnic minority households. This is the basis for proposing
solutions to improve livelihoods of ethnic minority households
Analyzing livelihood outcomes: They can be: (i) more income, (ii) increased
well-being, (iii) reduced vulnerability, (iv) improved food security and (v) more
sustainable use of the natural resource base
2.1.5. Factors affecting livelihood of ethnic minority households
- Policy and Government program
- Shocks and risk: Natural characteristics and disasters, seasonality, market
and other factors
- Education and training
- Characteristics of ethnic minority groups
- Rural infrastructure
- Development programs’ aid
2.1.6. Main characteristics of livelihood of ethnic minority households
Firstly, livelihood assets of ethnic minority households are often very limited
Secondly, ethnic minorities often live in mountainous and difficult areas, so
they have low income, monotonous production activities, low employment
opportunities and unsustainable livelihoods (Boothroyd et al., 2000; Baulch, 2010).
Thirdly, ethnic minority households are often exposed to major risks,
especially from natural disasters and weather.
Fourthly, the culture identity, property, indigenous knowledge of ethnic
minorities is preserved.
2.2 EXPERIENCES IN IMPROVING OF LIVELIHOODS OF ETHNIC
MINORITY HOUSEHOLDS
Through the international experiences of Nepal, Thailand, the Philippines,
China, South Korea and the experiences of provinces of Vienam (Ha Giang, Bac
Kan, Quang Nam, Quang Binh), the lessons are:
Firstly, it is necessary to focus on improving the education and skills of
ethnic minorities by expanding the network of schools and developing vocational
training for ethnic minorities. In addition, libraries should be set up, libraries should
be established, and regular education classes should be established for ethnic
minorities.
Secondly, access to financial resources for ethnic minorities needs to be
improved through the diversification of forms of credit support for them, with
particular emphasis on supporting projects of foreigners for ethnic minorities.
Thirdly, attention should be paid to "linking communities" in "livelihoods" to
increase livelihood efficiency, spillover and sustain new practices. Maintaining and
developing social relationships that help improve the social capital of ethnic
minorities is their fulcrum when facing difficulties.
Fourthly, it is necessary to take advantage of each village to increase its
ability to adapt to new conditions. Ethnic minority livelihood strategies will be more
successful when based on the advantages of geographical location, natural
conditions, and infrastructure. Traditional handicraft and specialties, social relations,
mobilized cash flows of each village can be considered.
Fifth, it is necessary to strengthen risk prevention capacity of the people and
ethnic minority communities. This is a shortcoming, adversely affecting the
sustainability of "livelihood models".
PART 3. METHODOLOGY
3.1. APPROACH AND FRAMEWORK ANALYSIS
3.1.1. Approach
Participatory Approach: This approach is a response to ‘bottom - up’
approaches to development, in which power and decision-making is largely in the
hands of external development professionals.
Sustainable Livelihoods Framework Approach: The sustainable livelihoods
approach (SLA) is a way to improve understanding of the livelihoods of poor
people. It draws on the main factors that affect poor people's livelihoods and the
typical relationships between these factors. It can be used in planning new
development activities and in assessing the contribution that existing activities have
made to sustaining livelihoods.
Area-Based Approach: An area-based approach takes a small, homogenous,
socially cohesive territory, often characterized by common traditions, a local
identity, a sense of belonging or common needs and expectations, as the target area
for policy implementation.
Ethnicity Approach: The approach put emphasis on separating and
identifying impacts of cultural practices on livelihoods and livelihood period,
thereby affecting livelihood outcomes and vulnerability of ethnic minorities.
3.1.2. Analysis framework
Figure 3.1. The sustainable livelihood framework
3.2. DATA COLLECTION METHOD
3.2.1. Location of the Study and Sample
Lao Cai Province has 1 city and 8 districts as Sa Pa, Bat Xat, Bao Yen, Bao
Thang, Si Ma Cai, Van Ban, Muong Khuong, Bac Ha, with 164 communes and
towns. Lao Cai can be divided into 3 regions:
- Region I: Includes communes having good conditions in socio-economic
development. This region is mainly lowland communes, near the center of the
district, city, and good transportation and social services.
- Region II: With communes having difficulties in the socio-economic
development, most communes located in remote areas, and transportation is
relatively difficult; the basic social services have been relatively good.
- Region III: Consists of communes having particularly difficult socioeconomic conditions and communes in the border areas, away from the district
center, city; fragmented terrain, traffic movement is very difficult; Social services
are limited.
In this study, we will select four districts as representatives for the three
different regions of Lao Cai province. In each district, 3 communes will be chosen
based on some criteria as proportion of ethnic minorities, economic condition, and
social service.
3.2.2. Collection of secondary data
Secondary information such as theories about livelihoods and household
livelihoods, experiences about development and improvement of household’s
livelihoods, basic Natural and Socio-Economic Characteristics of Lao Cai Province,
center government and local government policy related to livelihood improvement
were gathered from different sources such as reports, statistical data, scientific
researches, articles, and among other published documents related to the research
topic.
3.2.3. Collection of primary data
Interviewer
Sample
371
Ethnic
minority
households
85
Local
Authorities
(Province,
districts,
communes)
Method/tool
Interview with
structured
questionnaire
Group
Discussion
Focus
group
discussions
(FGD)
Semi-structured
interview
Focus
group
discussions
(FGD)
In-depth
interview
Survey content
- General Information about household
- Livelihood asset and resources of the
household and community
- Household livelihood activities, current
livelihoods
strategies
and
livelihood
outcomes
- Advantages and, disadvantages and factors
affecting livelihood and livelihood resources
of the household and the community.
Orientations
in
socio-economic
development of the province, districts and
communities
- Recommendations, need and suggestions of
households and communities
3.3. ANALYSIS METHOD
3.3.1. Descriptive Statistics
Descriptive statistics such as frequency counts, percentages and means is
used to describe the socioeconomic characteristics of the sample respondent groups,
their sources of livelihoods, factors affecting ethnic minority’s livelihoods.
3.3.2. Comparison Statistics Method
This method is utilized to compare the results of ethnic minorities livelihoods
in Lao Cai province in term of livelihoods sources, livelihoods models, socioeconomic characteristics of ethnic minorities and communities, livelihoods
strategies, and etc. The output of this method will help us find some key factors
affecting the livelihoods improvement of ethnic minorities in the study area.
3.3.2. SWOT Analysis
SWOT analysis is used to find Strength, Weakness, Opportunities, and
Threats in livelihoods improvement for ethnic minority households in Lao Cai
Province. The result of SWOT analysis is the base for providing directions and
solutions to improve livelihoods of ethnic minorities in Lao Cai province.
3.3.3. Case study
In this study, the author uses this method to study cases that have a policy
effect (Happiness program- KOICA supported pilot program at 8 villages). The case
study results explain the policy interventions, role of participation and affecting of
capacity building to Lao Cai ethnic minority people and identify important issues to
be further explored in the future.
3.3.4. Modeling method
The Logit model is used for the purpose of determining factors influencing
household livelihood outcomes (Anderson and Uboe, 2010). Household livelihood
outcomes show that the main indicator is poor and non-poor. Therefore, in order to
evaluate factors influencing the livelihood outcomes of ethnic minority households,
we use the logit model. The model is as follows:
P (Y i
eZ
K i)
1 e
Z
In which:
Yi s the dependent variable expressing the livelihood results of the people
• Yi = 0: non-poor household
• Yi = 1: poor household
Z = b0 + b1X1 + b2X2 + b3D1 + b4D2 + b5D3 + .. bnDn +ui
e is the mathematical base; ui is the error of the model
Variables of the model are specified in the table below.
Table 3.1. Definition of variables under Logit model
No.
Independent variable
1
Trust
2
Risk of natural disaster
3
Risk of market
4
Age of household heads
5
Educational level
6
Number of livelihoods
Description
Trust towards state policies, from 1 (lowest) to 5
(highest)
Household that have been severely damaged by
natural disasters in the last 5 years (1: yes; 0: No)
Household that have been severely damaged by risk
of market in the last 5 years (1: yes; 0: No)
Number of household members in the working age
(people)
Number of studying years of household heads or
household main decision maker (years)
Number of household livelihoods
PART 4. CURRENT SITUATION AND FACTORS AFFECTING
LIVELIHOOD OF ETHNIC MINORITY HOUSEHOLDS
IN LAO CAI PROVINCE
4.1. CURRENT SITUATION ON LIVELIHOOD OF ETHNIC MINORITY
HOUSEHOLDS IN LAO CAI
4.1.1 Status of livelihood capital of ethnic minority households
4.1.1.1 Human capital
The quantity and quality of a household’s labor force were important
determinants of well-being in all sites.
In general, the family size of the ethnic minority people in Lao Cai is of
average level of the country. The family members are of young ages, mainly in their
working or schooling ages. It indicates that on the one hand, the ethnic minorities
have abundant human resources on one hand, but on the other hand they also have
big challenges in terms of livelihoods, finding jobs and generating incomes to feed
all the family members.
Table 4.1. Size of households by ethnic groups
Tay
Ethnic
minority
Others
people in
general
2.55
3.61
Criteria
unit
Giay
H'Mong
Nung
Family size
No. of children up to 15
years old
No. of elderly people of
more than 60 years old
No. of main laborers
Person
Person
4.92
3.71
3.40
3.41
0.75
1.25
1.19
0.76
0.90
1.18
0.75
3.42
0.11
2.34
0.30
1.91
0.35
2.29
0.00
1.66
0.16
2.27
Person
Person
Survey results have proved that the percentage of illiterate household heads
is high in these districts as 45.28% whilst the average figure of the country is only
6.9%. The illiterate rate of the ethnic minorities in Lao Cai is seven times higher
than the average rate of the country, which is one of the problems against
household’s livelihood improvement for the ethnic minorities in Lao Cai. Local
knowledge has been the background for maintaining the traditional social living of
the ethnic minority households during their livelihood activities so far.
4.1.1.2. Natural capital
Land is the most important natural asset of rural households. An average
household of ethnic minorities in Lao Cai has about 11,000 m2. The largest area is
the area of agricultural land for rice cultivation with about 60% of the total area of
the household. The area of forestation and perennial trees of households is nearly
equivalent to about 20% of the total area. Water surface area and garden land
account for a negligible proportion of total area. This area is small compared to the
general area of other localities.
Table 4.2. Land distribution of ethnic minority households in Lao Cai 2016
Unit: m2
Classification
Garden soil
Growing rice and food
crops
Old tree
The forest
Water
Other
Total
Bac Ha
SimaCai
Muong
Khuong
Sapa
Grand
Total
145.07
14.93
62.13
50.00
72.32
5176.06
5420.81
7816.14
8825.00
6099.81
3181.70
945.33
15.18
914.77
737.51
2847.86
0.00
226.81
3971.82
2595.30
51.69
221.24
4675.00
0.00
12.50
125.00
2559.06
2127.50
20.94
449.83
10378.11
9247.91
14718.33
13687.50
11329.46
Land for perennial crops is an important resource for improving livelihoods
of ethnic minority households. More than 90% of households have been granted
certificates of garden land. For other land types, the red book ratio is lower. Many
households do not have red books for their land, so the use of land resources in
livelihood activities is limited, especially the land use for mortgage loans.
Water is a vital resource for the livelihood improvement for ethnic
minorities, especially agricultural livelihoods. Lack of water or polluted water will
result in affecting people's life and agro-production activities.
4.1.1.3. Social capital
For the indigenous ethnic group, the most important social capital is
community cohesion formed and strengthened by customary laws, practices and
creeds. Although there have been many changes in living habits, religious
practice and customary law, indigenous ethnic communities have remained
essentially cohesive; the role of the village elders, the people who influence the
faith (the worshiper, the religious leader, etc.) is still important in the common
activities of the community.
However, the community is expressed in many cultural activities but not
"replicated" to the activities of livelihood. In assessing the social resources of
ethnic minority households, the thesis selected some of the most basic evaluation
items, namely the relationship of the households in the community where they live,
the access to basic social services and support from government as well as mass
organizations.
Figure 4.1. Assessment of Lao Cai ethnic minorities’ social relationships in 2017
In general, ethnic minorities in Lao Cai have good social and community
relations as well as good neighborly relations, clans, villages and religions. These
relationships enable people to receive support from many other households in the
community, including their livelihoods supports. Government agencies, mass
organizations regularly support information, technology, and gaining access to
finance and other support for ethnic minorities. Basic social services, such as
information, culture, schools, clinics, markets have been established in many areas,
basically to meet the needs of the majority of ethnic minorities. However, access to
social services remains rather low, especially in the absence of markets and access
to health care services. The lack of marketplaces reflects the current situation of the
underdeveloped market economy in the community, which is a major obstacle to the
production of commodities and livelihoods of ethnic minorities. In addition, lack of
health care services will also affect the health and well-being
4.1.1.4. Physical capital
Physical capital divided into two categories: 1) Community property and
household assets. The community's assets within the scope of the thesis are
considered as basic facilities for production and community activities, such as
electricity, roads, schools, health clinics, water and communications and 2)
Household assets include assets used for production and daily life of households
and directly managed and used by households.
The material resources of ethnic minorities, including common infrastructure
for the community and individual property of each family basically meet the needs
of living and production of the household. Transportation system and electricity,
basically meet the needs of trade, production and living. Ethnic minority households
have initially accumulated assets for production and living.
The drawback is that the new transport system only meets the needs of basic
movement. Internal roads, villages in some places are not good, difficult to move in the
rainy season. There is still a shortage of electricity for production and high electricity
prices compared to affordability of ethnic minority households.
4.1.1.5. Financial capital
The financial resources of households can exist in the form of: Financial
resources such as cash, bank deposits, and / or high liquid assets such as gold, jewelry,
stable income such as salary, regular allowance, money from relatives, money from
credit, borrow from bank, friends, etc. However, for ethnic minority households in Lao
Cai, the statistics of gold and jewelry is not possible. Thus, the study focuses on two
main indicators: savings and credit in the formal market.
Table 4.3. Average household savings by ethnic minority
Ethnic minority group
Average household savings
H Mong
28.37 million Vietnam Dong
Giay
0
Tay
16.9 million Vietnam Dong
Nung
5.23 million Vietnam Dong
In general, ethnic minority households have limited financial accumulation
due to low income. However, many ethnic minority households have access to bank
credit, although the size of the loan cannot be large, especially for ethnic minorities
in Lao Cai such as H’Mong, Tay, Nung, Giay ... In addition to bank credit, ethnic
minority households can access credit from relatives and friends. Financial
constraints are a barrier that makes it difficult for ethnic minority households to get
rich and to escape from poverty and to ensure sustainable livelihoods.
4.1.2. Livelihood strategies and activities
In this section, the thesis focuses on the combined results of livelihood
resources of ethnic minorities. By utilizing the resources that people have as land
resources, people, indigenous knowledge, based on the resources that households
have access to use as capital resources, infrastructure. Each household will have
different behaviors to perform their own livelihood activities.
Livelihood models
For the ethnic minorities, diversification of agricultural production based on
local advantages often leads to sustainability. Many ethnic minority households get
rich from livelihood models. The experience of successful people is: there must be
determination, willingness to get rich, hard working, eager to learn and apply new
techniques, actively participate in vocational training. It is necessary to save money
in order to have capital for production expansion, flexible and diversified modes of
livelihood, using loan capital and support resources effectively.
Table 4.4. Main livelihood activities of ethnic minority households by ethnicity
Unit:%
Livelihood activities
H’Mong
Nung
0.00
0.37
0.00
0.00
0.00
Grand
Total
0.27
0.00
8.33
2.59
11.48
0.00
32.56
0.00
0.00
0.00
10.34
1.89
13.21
0.00
1.48
0.00
0.00
0.00
1.08
33.33
42.59
51.16
41.18
13.79
40.97
8.33
3.33
2.33
11.76
0.00
3.50
0.00
10.37
0.00
0.00
27.59
9.70
0.00
17.41
13.95
47.06
20.69
18.06
0.00
1.48
0.00
0.00
0.00
1.08
0.00
0.00
0.00
0.00
10.34
0.81
0.00
0.00
50.00
100
8.89
0.00
0.00
100
0.00
0.00
0.00
100
0.00
0.00
0.00
100
0.00
17.24
0.00
100
6.47
1.35
1.62
100
Giay
Breed
Combining industry, animal
husbandry
Crop
Combining cultivation and
trading
Combining cultivation and
breeding
Combining cultivation, husbandry,
trading
Combining cultivation, breeding,
other
Combining cultivation, husbandry,
industry
Combining cultivation, animal
husbandry, trades, trading, other
Combining cultivation, breeding,
industry, other
Combination of cultivation,
other
Combine trot planting, trades
Combine planting, trades, other
Grand Total
Tay
Other
4.1.3. Livelihood outcomes
Table 4.5. Household revenues in 2016 by ethnic groups
Unit: thousand dong
Income
sources
Rice Crop 1
Rice Crop 2
Cassava
Maize
Vegetables
Fruit tree
Industrial
tree
Cow
Pig
2120.42
5425.00
0.00
3420.83
0.00
0.00
8155.35
1108.06
0.00
5617.15
2713.11
222.22
9726.72
2267.93
0.00
13137.93
20689.66
0.00
3111.28
3378.14
193.02
5854.65
46.51
0.00
4230.59
7195.29
1576.47
3431.18
0.00
0.00
Grand
Total
7318.51
1880.39
94.61
6061.35
3597.14
161.73
10912.50
0.00
5593.33
214.37
2807.41
4703.64
2703.10
413.79
9968.97
5834.88
1186.05
5574.42
811.76
0.00
27241.18
1433.75
2212.94
6277.64
Giay
H'Mong
Others
Nung
Tay
Income
sources
Poultry
Buffalo
Services
Handicraft
Hired labor
Wage
Total
Giay
H'Mong
Others
250.00
5000.00
315.00
1065.33
20000.00
56866.67
110969.08
945.19
26540.74
133.33
845.38
6761.41
7173.33
67778.47
879.31
5517.24
0.00
89.38
13820.69
3393.10
80694.03
Nung
1102.33
17837.21
279.07
557.21
11469.77
1395.35
57652.44
Tay
1294.12
37647.06
3411.76
1373.24
352.94
5082.35
92353.82
Grand
Total
951.75
23700.81
295.90
784.19
7993.48
7719.68
70137.50
Total revenue of ethnic minority households in the study area is about 70
million VND per year. The main sources of income are agricultural production,
hired labor, handicrafts and wages. At present, the main income of the households is
from the sale of buffaloes, with an average of 23 million VND per year for the sale
of buffaloes, which accounts for nearly 35% of total household income. Cultivation
is the main livelihood of ethnic minority households in Lao Cai Province, but total
income from cultivation accounts for less than 30% of total household income.
Meanwhile, livestock production accounts for nearly 50% of total household
income.
4.2. FACTORS AFFECT TO LIVELIHOOD RESULTS OF ETHNIC
MINORITIES IN LAO CAI PROVINCE
4.5.1. Government policies
In the livelihoods of ethnic minority households, policies also have certain
impacts. Generally, good and stable policies will bring more favorable conditions
for farmers to implement their livelihood strategies. In contrast, if the policies are
not good and unstable, they will cause difficulties and even have negative impacts
on livelihood of the household.
Policies have gained important results, contributing to livelihoods
improvement for local ethnic minorities. According to the study, among the 85
managers participated in the policy questionnaire for ethnic minorities, 64.71% of
the answers said that they were reasonable, and 35.29% said they did not agree with
the content of the policy.
4.2.2. Shocks and risk
4.2.2.1. Natural disasters
Climate change directly affects the growth and development of crops and
livestock as well as other household production activities, which are difficult to
control. In Lao Cai, hail and frost occur frequently. In recent years the weather is
erratic, killing many livestock due to grazing characteristics in the H’Mong ethnic
people there. In addition, due to the terrain of upland fields, there are high
mountains and low areas, so when it rains too much, it wash away the hills and
mountains, causing soil erosion, leading to crop productivity reduction.
4.2.2.2. Seasonality
The post-harvest period is the "leisure time" of the H’Mong ethnic people
here. In addition to making corn wine, the leisure period is a serious problem if they
cannot find a side job. At the same time, ethnic minority people work as hired
laborers at the border gate of China, where they are hired to work in the garden of
strawberries, but the part-time job is seasonal and their income from the job is not
much. The hired labor in China is popular in ethnic minority community, especially
young workers.
4.2.2.3. Market and price fluctuation
The fluctuation of agricultural prices increases the risk to agricultural
production and affects the stability of livelihoods of ethnic minorities.
4.2.3. Aid of Development programs
Lao Cai is the locality receiving a lot of assistance from the NGOs, ODAfunded projects and support of the developed countries. The foreign support has
contributed to and influenced remarkably the livelihoods of the ethnic minorities in
Lao Cai province in general and in the study area in particular. In this study, the
author has focused on analyzing the approach to support of the Lao Cai Happiness
Program (LCHP), financed by the Korean government. It should represent the
influence of projects, program and NGOs toward livelihood improvement of the
ethnic minorities in Lao Cai province.
4.2.4. Typical characters of ethnic minority groups
In addition to external elements affecting directly livelihoods of the ethnic
minority people, subjective elements of the people also affect greatly to livelihood
outcomes of households.
In this study, the author uses the Logit model to assess the factors affecting the
livelihood outcomes of the household (poor, non-poor). The dependent variables are
the poor, non-poor groups. The dependent variables include: (1) natural disaster risk
(1 for severe damage, 0 for mild damage and zero damage); (2) Market risk (1 for
severe damage, 0 for minor damage and no loss); (3) belief (trust of the people on
government policies, measured on a scale of 1 to 5 with a high degree of maturity);
(4) educational level of the household head (number of years of schooling of the
household head); (5) age of household head (6) number of household livelihood
activities
4.2.5 Education and training
Through various project programs and extension activities, households are
also more involved in training activities. Through training courses knowledge of
crop production techniques and livestock production has also been improved. The
training also tried to meet the diverse needs of the people
The training could significantly influence villager’s capabilities and their
mindset change. The survey suggests that the beneficiaries revealed positive
changes in the livelihood assets.
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