Factors Affecting the Decision of Rural Households to Participate in Non-Agricultural Activities in Dien Bien Province


  • Dang Trung Tuyen VNU University of Economics and Business, Vietnam
  • Nguyen Thi Hong International Training and Cooperation Institute - East Asia University of Technology, Vietnam
  • Vu Hoa Linh VNU University of Economics and Business, Vietnam
  • Tran Cuong Hanoi University of Industry, Vietnam
DOI: https://doi.org/10.57110/vnujeb.v3i4.183


The paper examines factors affecting the decision of rural households to participate in non-agricultural activities in Dien Bien province through the Logit model, using the Vietnam Access to Resources Household Survey 2016 by the General Statistics Office of Vietnam. The results indicated that the decision to participate in non-agricultural activities is driven by both “push” and “pull” factors, but there is also an indication of an “ability” factor at work. Access to the information variable has the greatest influence on the decision of households to participate or not. Moreover, education is not significant and has no influence on the decision to engage in non-agricultural activities of households in rural area of Dien Bien province. Based on the findings, as well as the rural development orientation of Dien Bien province, the author proposes some solutions to promote rural non-agricultural economic development. Rural non-agricultural development policies should attend to promotion of the education level of rural households and create favorable conditions for households to access resources.


Dien Bien Statistics Office (2022). Dien Bien Statistical Yearbook 2021. Statistical Publishing House, Dien Bien.

Van, D. T. C. et al. (2010). The role of non-agricultural activities in poverty alleviation in Tra Vinh. Journal of Asian Business and Economic Studies, 241, 44-47.

Abdulaziz, M., Khalid, S., & Harald, G. (2019). Opportunities and determinants of rural non-agricultural activities in Ethiopia. Journal of Development and Agricultural Economics, 11(11), 265-271.

Cheng, Y., Lv Y., Rosenberg, M., & Hou, L. (2018). Decision making of non-agricultural work by rural residents in Weifang, China. Sustainability, 10(5), 1647.

Davis, J. R. (2003). The rural non-farm economy, livelihoods and their diversification: Issues and options (July 2003). https://doi.org/10.2139/ssrn.691821

Davis, J., & Pearce, D. (2000). The rural non-farm economy in Central and Eastern Europe. Discussion Paper, Natural Resources Institute, Chatham, UK.

Dary, S. K., & Kuunibe, N. (2012). Participation in rural non-farm economic activities in Ghana. American International Journal of Contemporary Research, 2(8), 154-161.

Demie, A., & Zeray, N. (2015). Determinants of participation in the rural nonfarm economy in Eastern Ethiopia. Journal of Economics and Sustainable Development, 6(23), 9-20.

Do, M. H., Nguyen, T. T., Halkos G., & Grote U. (2022). Non-farm employment, natural resource extraction, and poverty: evidence from household data for rural Vietnam. Environment, Development and Sustainability, 25(8), 1-38.

Dontsop-Nguezet P. M. et al. (2016). Non-farm activities and adoption of improved cassava and beans varieties in South-Kivu, DR Congo. Tropicultura, 34(3), 262-275.

Ellis, F. (1993). Peasant Economics: Farm households and Agrarian Development. Cambridge University Press New York.

Ellis, F. (1998). Sustainable rural livelihoods: Livelihood diversification and sustainable rural livelihoods. DFID’s National Resource Advisors Conference. London.

Ellis, F. (2000). The determinants of rural livelihood diversification in developing countries. Journal of Agricultural Economics, 51(2), 289-302.

Hare, D. (1994). Rural nonagricultural activities and their impact on the distribution of income: Evidence from farm households in Southern China. China Economic Review, 5(1), 59-82.

Imai, K. S., Gaiha, R., & Thapa, G. (2015). Does non-farm sector employment reduce rural poverty and vulnerability? Evidence from Vietnam and India. Journal of Asian Economics, 36, 47-61.

Kanwal, N., Khan, M. A., & Zheng, Z. (2016). Analyzing the determinants of non-farm income diversification of farm households in Peshawar district of Pakistan. Timisoara Journal of Economics and Business, 9(1), 33-48.

Kijima, Y., Matsumoto, T., & Yamano, T. (2006). Nonfarm employment, agricultural shocks, and poverty dynamics: Evidence from rural Uganda. Agricultural Economics, 35, 459-467.

Kung, J. K., & Lee, Y. F. (2001). So what if there is income inequality? The distributive consequence of nonfarm employment in rural China. Economic Development and Cultural Change, 50(1), 19-46.

Lanjouw, J. O., & Lanjouw, P. (2001). The rural non-farm sector: issues and evidence from developing countries. Agricultural Economics, 26(1), 1-23.

Liu, Y. (2017). Pushed out or pulled in? Participation in non-farm activities in rural China. China Agricultural Economic Review, 9(1), 111-129.

Oseni, G., & Winters, P. (2009). Rural nonfarm activities and agricultural crop production in Nigeria. Agricultural Economics, 40(2), 189-201.

Reardon, T. (1998). Rural non-farm income in developing countries. The State of Food and Agriculture, 1998, 283-356.

Tassew, W. (2000). Economic analysis and policy implications of farm and off-farm employment: A case study in the Tigray Region of Northern Ethiopia. PhD dissertation submitted to Wageningen Agricultural University, The Netherlands.

Cuong, T. T. et al. (2021). The impact of non-agricultural income on household livelihoods in the Central region and Central Highlands. Economy and Forecast Review, 15.


Download data is not yet available.




Abstract View


PDF Downloaded


How to Cite

Tuyen, D. T. ., Hong, N. T. ., Linh, V. H. ., & Cuong, T. (2023). Factors Affecting the Decision of Rural Households to Participate in Non-Agricultural Activities in Dien Bien Province. VNU University of Economics and Business, 3(4), 110. https://doi.org/10.57110/vnujeb.v3i4.183



Original Articles