Urbanization and rural development in Vietnam's Mekong Delta: livelihood transformations in three fruit-growing settlements

This article discusses the reasons and implications of the decline in poverty rate among fruit farmers in the rural Mekong Delta, as compared to all other rural households in the region and in Vietnam. This decline happened despite huge fluctuations in export markets for fruit in the last decade. The article highlights the findings of case studies of three rural settlements in Tien Giang and Vinh Long provinces. The article suggests that the main driver of rural development is a positive reciprocal relationship between urban centres and farming. As well as a strong role for small towns in local economic growth and poverty reduction. The main factors for the decline of poverty among fruit farmers are: the growth of urban incomes throughout Vietnam, resulting in higher standards of living, better diets and growing demand for fresh fruit the increase in employment opportunities in non-farm sectors such as migration, which allows farmers to diversify their income sources and invest in fruit production role of locally-based traders 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 migrateThe paper concludes that while urbanisation has so far benefited the case study settlements, it also presents new challenges. At the present time, 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 on this path will depend not only on the entrepreneurial spirit of their residents but also on wider socio-economic transformations. The differences between the three settlements also suggest that they may evolve following different trajectories, which in turn will present different risks and opportunities. Whether these experiences can serve as role models for poverty reduction and sustainable economic growth, depends on the capacity of provincial and commune governments to formulate and implement appropriate policies.