Factors affect rice production efficiency and organic fertilizer choice in Viet Nam

Abstract

The main purpose of the study is to examine and analyze the key factors influencing rice production efficiency and organic fertilizer choices in Vietnam. This study utilizes data from the VHLSS (Vietnam Household Living Standard Survey 2020, which comprises information from 3859 rural and urban households. The research employs a combination of Stochastic Frontier Analysis (SFA), Tobit, and Propensity Score Matching (PSM) models to conduct a cross-sectional data evaluation. The research findings suggest that farmers should focus on producing a single commodity rather than diversifying their products, specifically indicating that in Vietnam, rice producers should concentrate on rice production. Additionally, the study asserts that irrigation methods and the use of organic fertilizer significantly influence technical efficiency in rice production. Moreover, the study reveals that irrigation plays a crucial role in rice yield by employing propensity score matching (PSM) between farmers using inorganic and organic fertilizer. The results indicate that organic fertilizer enhances productivity and output, while inorganic fertilizer yields higher profits. With the aim of achieving sustainable development in agriculture, farmers should prioritize the use of organic fertilizer. This study will serve as a valuable reference for the government as well as policymakers in agriculture to advance towards Goal 2 of the 17 Sustainable Development Goals (SDGs), "Zero Hunger” in the current period.