Vietnam: decollectivization and rice productivity growth

Despite the productivity gains brought about by the introduction of the contract system of production in Vietnam in 1981, rice output growth has not kept pace with population growth. Rice yields in Vietnam are below yields in other Southeast Asian nations with similar agro-climatic conditions and land endowments. Low rice productivity can be explained partly by insufficient policy reform and partly by inadequate infrastructural investments, especially for irrigation, soil conservation, transport, and research. The most recent policy reforms implemented in 1989 were designed to overcome many of these shortcomings. Reforms are still needed in the following areas: 1. land use planning and crop target setting, 2. privatizing input imports, output exports, and foreign exchange allocations, 3. an established means for obtaining financing for purchasing equipment, 4. regional shortages and surpluses in seasonal labor markets, and 5. the current policy restricting the leasing in and leasing out of land.