African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6849

Full Length Research Paper

Economic efficiency of rubber production and affecting factors: Case of smallholder rubber production in Quang Binh Province, Vietnam

Tu Luc Tran
  • Tu Luc Tran
  • Department of Business administration and Tourism, Faculty of Economic and Tourism, Quang Binh University, 312 Ly Thuong Kiet, Quang Binh, Vietnam.
  • Google Scholar

  •  Received: 13 May 2020
  •  Accepted: 26 October 2020
  •  Published: 30 November 2020


Rubber is a perennial crop, so to evaluate economic efficiency of smallholder rubber production, the author uses long-term analysis method with values such as actual present value (NPV), Benefit Cost Ratio (BCR), Internal rate of Return (IRR) and annual value. The factors affecting the productivity of smallholder rubber are assessed through the Cobb-Douglas functional production function analysis method with input factors of communication and non-communication. Data were collected through a survey of 200 smallholder rubber business households in 5 key rubber growing provinces in Quang Binh province. The research results show that Quang Binh province has many favorable conditions for rubber development and the smallholder rubber model has developed strongly, the area has increased rapidly but productivity is low, small in scale, unevenly distributed. In localities, most of them are located in remote areas, investment in resources is limited, production households with low average educational level, not much experience in rubber production and investment capital, limited private. Economic efficiency evaluation shows that with a discount rate of 9%, NPV will reach 80,147 VND / ha; IRR = 18% is larger than the current bank loan interest rate of households and B / C = 1.36> 0, so investment in small rubber business in Quang Binh province is effective. Assessment of factors affecting rubber latex production yield shows that, in addition to the variable density of variables included in the model such as fertilizers, labor, pesticides, rubber garden acreage, age orchards, training, rubber growing areas all have significant impacts on latex yield with 95% confidence.

Key words: Economic efficiency, rubber production, smallholder rubber model, Quang Binh rubber, rubber yield.