Factors Affecting the Livelihood Outcomes of Households in the Mekong Delta of Vietnam

Abstract

We explore factors affecting household livelihoods in the Mekong Delta region of Vietnam based on the Department for International Development (DFID)'s approach to sustainable livelihoods. We use the data from Vietnam General Statistics Office (GSO)'s Household Living Standards Survey in 2016. Observed data on livelihood assets are standardized according to the scale [0,1] and the value of livelihood results varies from 1 to 7, and the To bit regression model is used to determine the influencing factors. The result shows there is a positive impact of human capital, social capital and natural capital on farm livelihoods. The study also suggests that the ability to save and access to loans has a different effect on household livelihoods. That farm households save money instead of investing in production and business activities puts their livelihood results at a disadvantage. Meanwhile, accessing to loans has a positive impact on household livelihoods. The characteristics of housing, assets for daily life and regular expenditures for housing, electricity, water and domestic waste have not yet created many sources of household livelihoods. Farmers' purchase of durable goods during the year helps them achieve livelihoods results and generate more revenue in the future