Why do poverty reduction strategies not bring real effects in Northern Mountain, Vietnam ? Case of the commune of Xuan Phong and Tu Ly, Hoa Binh province

Agricultural accumulation has been one of the main source determined the social
differentiation in Vietnamese countryside. The complexities of agrarian changes under the
post - socialist industrialization with high rate of agricultural land conversion in recent
context reveal the new forms of capital accumulation and social differentiation. This
research investigates how land conversion process to industrial zones and clusters affected
to the way that different groups of peasant households accumulate their resources. The
study was carried out in 3 districts of Hung Yen province from 2006 to 2010. The study
results are as follows: first, the land conversion to industrialization has impact on not only
the decline of household landholdings but also the changes value of land which are the
sources of social conflicts and informal land transfer. Second, in the context of land
conversion to industrialization with tiny plots of land, low return from agricultural
production and more opportunities of non-farm activities, even when non-farm
employment is very profitable, peasant households are not likely to give up their land but
maintaining agricultural production for not only their basic and secure livelihood but also
for their identity. Third, among the affected peasant groups, the households with non-farm
background tend to be in better position in engaging to high - earning activities. They are
likely the rich peasants in opposed to the poor group with farming background and lost
more than 50% of their agricultural land. This research has showed that the
industrialization policies have to deal with the proportion of agricultural land would be
transferred for industrialization zones and other measures in order to limit the conflicts as
well as the social differentiation in countryside.