RT Dissertation/Thesis
T1 Vulnerability and risk management of rural farm households in Northern Vietnam
A1 Fischer,Isabel
WP 2011/02/08
AB Despite the achievements of the ?doi moi? reform process, which was launched in 1986, Vietnam is still one of the poorest countries in the world, with 28.9 per cent of the total population (85 million in 2007) living below the national poverty line (UNDP 2007). Especially the mountainous, rural areas of Northern Vietnam are underdeveloped. Poor and near-poor farm households endure manifold risks and income shocks, which threaten their existence. Normally, insurance systems would step in to assist. In developing countries however, where access to formal insurance services is hardly available, rural farm households have developed alternative risk management strategies. 
The Sustainable Livelihood Framework (SLF) of the Department for International Development (DFID 1999), was applied as an analytical tool to identify and assess risks and risk management strategies of vulnerable rural livelihoods in the Uplands of Northern Vietnam. The role of informal social networks was analyzed with the help of Social Network Analysis (SNA). An Adaptative Conjoint Analysis (ACA) was implemented to examine the potential demand for a formal or semi-formal microinsurance scheme in the area of livestock insurance. Furthermore, additional insights were gained from interdisciplinary research on issues of human, health and livelihood security, as well as from case studies on natural resource use in Southeast Asia.
The central hypotheses of this research on livelihood strategies in general and adaptive strategies such as insurance in particular are that they (1) have the potential to reduce livelihood vulnerability and that (2) the differentiated knowledge of livelihood strategies is crucial for a better understanding of the reasoning behind the exploitation of livelihood assets, such as natural resources or physical assets in the form of livestock, despite the negative medium and long-term effects.
Research results lead to the following conclusions: First of all, only a very elaborate use of existing capital assets can improve the livelihood situation of vulnerable households in Northern Vietnam. Living in remote mountainous regions with scarce natural resources and limited access to other assets, the preconditions are rather difficult for ethnic minority people, even more for women.
Secondly, in order to improve the situation, all stakeholders have to be aware of the existing risk management strategies (e.g. raising livestock and selling it in case of a livelihood emergency is one of the most popular risk coping strategies in the mountainous regions of Northern Vietnam) and learn from both, advantages and disadvantages of currently applied strategies to translate them into effective policies. 
Concerning the access to financial services, people still face several constraints, as credits are often not available for certain activities or at a certain point in time. In addition, savings and insurance services, when available are not adapted to the needs. Furthermore, emerging expenditures for livelihood risks usually go beyond the scope of the dis-saving (in cash and in kind) ability of rural households.
Taking into consideration the above stated situation of changing agricultural activities, including higher input use, and the resulting decline in the number of large ruminants, one should be very careful not to destroy the so far still functioning traditional social networks. Even though these networks are not able to fully buffer all shocks and crises, they are at least one asset (social capital asset) that is initially accessible by everybody and quite often a means to compensate to some degree the lack of other capital assets as depicted in the SLF.
Research results point to a number of policy issues that need to be addressed if household?s vulnerability to poverty is to be significantly reduced among ethnic minority households in Northern Vietnam. First of all, poverty reduction strategies and programs need to consider a broader target group, not only the currently poor but also the vulnerable households. The promotion of innovative financial products, such as a combination of credit and insurance, especially for loans that are taken up to purchase livestock, is considered a successful approach to support vulnerable households. Finally, it is assumed that an efficient and accessible health care system would be an important alternative for securing livelihoods. In addition, im¬pro¬ved extension services and knowledge transfer for all people, especially women, could sup¬port a sustainable future development of ethnic minority households and therefore, in the long-run, lead to poverty alleviation.

K1 Risikomanagement
K1 Verwundbarkeit
K1 Nordvietnam
K1 Südostasien
K1 Entwicklungsländer
PP Hohenheim
PB Kommunikations-, Informations- und Medienzentrum der Universität Hohenheim
UL http://opus.uni-hohenheim.de/volltexte/2011/529