Urbanization and rural development in Viet Nam's Mekong Delta: Livelihood transformations in three fruit-growing settlements

In recent years, the poverty rate among fruit farmers in the rural Mekong Delta has declined more rapidly than among all rural households in the region and in Vietnam overall. This is despite huge fluctuations in export markets for fruit in the last decade. The findings from this case study of three rural settlements in Tien Giang and Vinh Long provinces suggest that the main drivers of rural development are a positive reciprocal relationship between urban centres and farming and a strong role for small towns in local economic growth and poverty reduction. The main factors are first, the growth of urban incomes throughout Vietnam, resulting in higher standards of living, better diets and a growing demand for fresh fruit; and second, the increase in employment opportunities in non-farm sectors, which allows farmers to diversify their income sources and invest in fruit production. In addition, locally based traders play a key role in linking small-scale farmers to markets and in directly and indirectly stimulating non-farm employment in large villages and small market towns, which reduces the vulnerability of poor households unable to migrate.

But while, overall, urbanization has so far benefited the case study settlements, it also presents new challenges. At present, the three settlements are largely success stories, especially when compared to other rural settlements in the Mekong Delta region. However, whether they will be able to continue along this path will depend not only on the entrepreneurial spirit of the residents but also on wider socioeconomic transformations. The differences between the three settlements also suggest that they may evolve along different trajectories, which in turn will present different risks and opportunities. Whether the experiences of the three settlements can embody a way forward for rural development, with long-term prospects for poverty reduction and equitable and sustainable economic growth, is likely to depend on the capacity of provincial and commune governments to formulate and implement appropriate policies, and on the support given to these by national development strategies.