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KNOWLEDGE FOR POLICY

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Publication | 2024

The true costs of food production in Viet Nam

Key takeaways:

True cost accounting allows for the measurement of hidden impacts of food production on the environment, human health, and society. 

  • Our findings show that at the national level for all crop sectors:
    • Environmental externalities account for 73% and social for 27% of external cost structure.
    • Major environmental impact sources are land occupation, air pollution, and climate change.
    • Major social impact sources are underpayment of farm workers and the incidence of child labor.
  • In NATURE+ sites in Sa Pa and Mai Son districts for the crop sector:
    • External costs represent about 24% of all household crop production costs.
    • Environmental externalities (61%) are greater than social (39%).
    • Land occupation is the most important external impact source, followed by soil degradation and climate change.
    • Under earning (underpayment of workers and/or low famer profits) are significant social costs, followed by the gender wage gap and the incidence of child labor.