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.
VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE KIM SUN HO LIVELIHOODS IMPROVEMENT FOR ETHINIC MINORITIES’ HOUSEHOLD IN LAO CAI PROVINCE, VIETNAM Major: Economics of Development Code: 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: National Library of Vietnam Library of Vietnam National University of Agriculture PART INTRODUCTION 1.1 PROBLEM STATEMENT Lao Cai is a mountainous area, sharing border with Yunan province of China There are districts, 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 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 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 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 city and 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 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, communes will be chosen based on some criteria as proportion of ethnic minorities, economic condition, and social service PART 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 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 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 Rice Crop 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, for mild damage and zero damage); (2) Market risk (1 for severe damage, for minor damage and no loss); (3) belief (trust of the people on government policies, measured on a scale of to 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 PART ORIENTATION AND SOLUTIONS TO LIVELIHOOD IMPROVEMENT FOR ETHNIC MINORITIES IN LAO CAI PROVINCE 5.1 BASES FOR PROPOSING ORIENTATION AND SOLUTIONS 1) Based on orientation of socio-economic development in Lao Cai province in the future as below: 2) Based on orientations of government policies and development programs for ethnic minorities in the mountainous areas 3) Based on a general assessment of the advantages and disadvantages of household livelihood assets Table 5.1 SWOT Analysis of livelihood improvement for ethnic minorities in Lao Cai Province O (Opportunities) - Various policies, programs and projects of “New Rural Development” - Government policy of livelihood improvement, living standard improvement and poverty reduction for ethnic minorities S (Strengths) S-O - High rate of population at - Development of training policies on skills and working age professions - Relatively large land area - Social unity and strong - Development planning of production zones community relations - Local specialties such as corn wine, actiso, black pig W (Weaknesses) - Low and monotonous educational level - Frequent droughts and hails - Conservative and backward mindset, unwillingness to adopt the new mindset Unemployment in agricultural leisure W-O - Development of supportive policies for farmers in case of disasters in production - Completion of infrastructure system - Development of appropriate supportive policies for poor households T (Threats) - Narrowing and difficult-toupgrade land resources - Unstable politics - Frequent natural disasters, floods, landslide - Overlapped policies - Difficult product consumption S-T Trades and services development (trade, business), which could be taken as an advantage of tourist centers such as Bac Ha, Sa Pa, near the border gate for trade with China - Development of local product value chains, … - Improvement of suitable crops W-T - Encouraging farmers to participate in meetings, and actively share their opinions with others for more useful information, present difficulties suffered by households - Organizing training courses and propaganda sessions to improve people's educational level 5.2 ORIENTATIONS OF LIVELIHOOD IMPROVEMENT FOR ETHNIC MINORITIES IN LAO CAI PROVINCE 1) Comprehensive development of livelihood assets for ethnic minorities, focus on quality improvement of human resources 2) Diversification and effectiveness improvement of livelihood activities, major priority to the less risky but sustainable livelihoods 3) Improvement of livelihood assets for ethnic minorities in Lao Cai by helping them mitigate risks, enhance their adaptability, and proactively struggle against vulnerable contexts 5.3 MAIN SOLUTIONS TO LIVELIHOOD IMPROVEMENT FOR ETHNIC MINORITIES IN LAO CAI PROVINCE 5.3.1 Diversifying source of livelihoods from agricultural development and improving household income through off-farm activities Agricultural production is still the strength and main source of livelihood of the household However, their livelihoods are monotonous and their income is low, focusing on traditional cultivation and livestock The land use is not reasonable Lack of capital and production tools are still simple and low productivity Appropriate policies and measures are needed to change the structure of crops and livestock Diversify agricultural products, suitable with local farming conditions, focusing on safe products and indigenous products In addition, in order to diversify agricultural activities for reducing risks and increasing incomes, households with unique natural conditions and unique ethnic identities can develop non-farm activities such as development ecotourism, community-based tourism, restoration of industries such as weaving and making souvenirs from brocades, wine making, hired labor, small business activities and border trade activities 5.3.2 Enhancing people's ability access to the market With the proposed diversification and development of agricultural production, the development of off-farm activities in the direction of commodity production in order to efficiently utilize resources and exploit regional strengths, books to help people better access to the market Indigenous products need to form value chains that link production and consumption; Link farmers with businesses and consumers 5.3.3 Improving household’s ability to access to formal financial resources Education and household resources have a positive effect on income generation Therefore, it is necessary to have policies to help people access financial resources / official sources with reasonable interest rates to increase financial resources and have the capital to invest in other resources such as purchase of accessories being produced, investing in the children's education 5.3.4 Improving human resources, raising awareness of people and preserving traditional culture Training to improve knowledge of ethnic minority households on market, farm management, technical knowledge in cultivation and husbandry Encouraging investment for the education of children and household members will enable future generations to have the capacity and ability to get a job and increase their income 5.3.5 Upgrading infrastructure system Infrastructure and transport networks have been improved thanks to the 135 programs, rural development programs and support programs of international organizations, but they have not yet met transportation requirements It also affecting the living and production of the household To improve and further develop electricity systems, roads in districts, especially remote districts, intercommune roads, irrigation works, networks of markets and schools Schools, post offices, cultural houses will help ethnic minority households to develop production and improve the quality of life 5.3.6 Strengthening the effectiveness of extension services The grassroots extension network should be improved in terms of both quantity and skills (skills for community work, participatory planning skills, communication in ethnic minority languages and knowledge of ethnic minorities) in order to be able to accurately collect the diverse needs of ethnic minority households from which appropriate extension solutions are available to groups of households and regions 5.3.7 Reducing the negative impact of natural disasters Lao Cai has a tropical monsoon climate, but due to complicated terrain conditions, they often face natural disasters, droughts, forest fires, floods, flash floods, landslides, frosts and frosts These issues are even more serious under the influence of climate change These adverse conditions have had a severe impact on the livelihoods of ethnic minority households, especially for the H'mong and Dao ethnic groups 5.3.8 Improving social relationship Raising people’s awareness is crucial, so that they would realize the importance of expressing citizen’s opinions in meetings or in village meetings In such meetings, people should be able to express their thoughts and ideas, and communicate with other households in the village to exchange their experience related to income activities PART CONCLUSION AND RECOMMENDATION 6.1 CONCLUSION Livelihood improvements of ethnic minorities in Lao Cai significantly depending on household livelihood assets Livelihood improvement for ethnic minority households in Lao Cai province refers to five capitals that ethnic minorities have ownership and access to, such as human capital, natural capital, social capital, physical capital and financial capital Livelihood assets are a means for ethnic minorities to carry out livelihood activities to generate income for their poverty reduction Different ethnic groups have different livelihood characteristics Each group has their own specific characteristics of livelihood assets, which unique culture plays a special influence in their utilization of livelihood assets Improving livelihoods in general and improving the livelihoods of ethnic minority households in particular depends on household livelihood assets The five main livelihood resources that ethnic minority households have the right to own, use and access to are human resources, natural resources, social resources, physical resources, and financial resources Different ethnic groups have different livelihood characteristics in which culture plays a very important role in the use of livelihood resources Livelihoods are the means by which ethnic minorities Implementing livelihood activities to generate income and improve household economy The study also shows that livelihood resources of ethnic minority households in Lao Cai have particular characteristics in the Northern Uplands and are characterized by different ethnic groups Human resources are abundant but quality is low, households still retain many indigenous knowledge applied in production and life Land is an important material resource, most of the land of the households have been issued certificates of land use, land is mainly suitable for rice, perennial and forest land Water also plays an important role in household livelihoods Access to water for production and living also encountered difficulties Different groups of ethnic groups have their own unique socio-cultural characteristics, and the relationship among ethnic groups is quite cohesive However, the level of participation of households in socio-political organizations is rather low Access to basic social services of households is limited Community material such as roads, schools, health clinics, electricity systems have been improved, but they are still quite scarce Production equipment and assets are poor The majority of household groups have savings to invest in production and life but are very small Households have access to a variety of financial sources, but access to formal sources is low Most of the households lack capital for production With limited livelihood resources, livelihood activities are rather monotonous Households have different sources of livelihood but mainly focus on agriculture Some areas with tourist sites or near borders have additional activities from tourism services, income from the sale of traditional and employed products Almost all households have not exploited the resources to develop production and business Household incomes are low, unstable and unsustainable The dissertation also identifies the main groups of factors affecting livelihood outcomes of ethnic minorities: policy, natural hazards and effects of seasonality Market factors affect input costs in production and in part on products sold in markets specifically for maize and pig producers Support programs of international organizations, especially the KOIKA support program (Happiness program), have had a certain impact on the capacity building of the community The characteristics of different ethnic groups with different farming methods, different practices and perceptions also affect livelihoods and livelihood outcomes The study also proposes major groups of measures to improve livelihoods of ethnic minorities, such as: i) diversification of livelihoods from agriculture and livelihood improvement through non-farm activities ii) improved access to markets for ethnic minority households, iii) improved access to formal financial resources, iv) improved human resources, awareness raising and preserving traditional values; v) improving infrastructure, vi) improving the efficiency of extension services and enhancing access to extension services; vii) reduce and adapt to the negative effects of nature, viii) improve social relations 6.2 RECOMMENDATIONS 6.2.1 Recommendations towards state agencies Therefore, reviewing existing policies for ethnic minorities in Lao Cai province is recommended to maintain current appropriate policies and revise and improve inappropriate policies In addition, introducing new policies that could help ethnic minorities to have the most favorable conditions in improving their livelihood assets and reducing poverty is also advised 6.2.2 Recommendations towards local authorities First, supervising and managing activities in the area as well as addressing prompt solutions to find difficulties and obstacles that households are facing are recommended towards local authorities Second, local authorities should invest on education, health and infrastructure, especially for agricultural production and industries Next, local authorities should strengthen the role of organizations, such as farmers associations and agricultural extension centers to manage and support activities in agricultural production Lastly, local authorities should strictly continue implementing policies to support farming households as legal documents promulgate by the state To be more specific, making farmers accessible to credit from state subsidy programs to tackle farmer’s capital shortage, so that farmers can be assured for economic development 6.2.3 Recommendations towards ethnic minorities Firstly, for farming households who want to change their livelihood model, it is necessary to identify suitable model in accordance with available assets of their family as well as of the society Secondly, ethnic minorities should take an advantage and initiative of social capitals because it is important to build relationships and links with organizations and individuals that could support people in livelihood activities Lastly, ethnic minorities need to enhance valuable cultural traits and seek to remove outdated and backward features in a process of developing and reducing poverty LIST OF AUTHOR’S PUBLICATION Kim Sun Ho, Nguyen Thi Minh Hien, Nguyen Tho Quang Anh, Ho Ngoc Ninh, 2017, Developing corn value chains of Minority Ethnic Households in Lao Cai province, Vietnam, Vietnam Journal Agricultural Sciences, Vol 15, N0 1288-1300 Kim Sun Ho, Nguyen Thi Minh Hien, 2017, Study on the significant influence of capacity building toward the livelihood assets of ethnic minority villages in the northern part of Vietnam, Journal of Korean Society of Rural Planning, Vol 23 N0 4, 1-13 Kim Sun Ho, 2017 Study on the capacity building influence toward the Livelihood Assets of ethnic minority villages in Lao Cai province and its recommendation to NRD policy: A review on the theory and Lao Cai Happiness Program’s Practice Present on ISAASS 2017 International congress and general meeting: Green Agriculture in Southeast Asia: Theories and Practices” held on October 14 -16, 2017 at VNUA, Hanoi, Vietnam ... 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... Breed Combining industry, animal husbandry Crop Combining cultivation and trading Combining cultivation and breeding Combining cultivation, husbandry, trading Combining cultivation, breeding, other... 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