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Bài báo - Tạp chí
15 (2022) Trang: 278
Tạp chí: Journal of Risk and Financial Management

Agricultural production accounts for 64.2% of the Vietnam’s Mekong Delta. However,
this sector has to face damage risks, especially from the natural disasters, such as flood, drought,
severe soil salinity, pests, and erosion, which might factor into the farmers’ risk attitude and their
decision-making relative to investment in production activities. This study analyzes the factors
influencing the risk attitudes of the rice farmers, based on evidence from the Vietnamese Mekong
Delta. The data were collected through face-to-face interviews and experimental games with 145 rice
farmers. An ordered probit regression model was applied to estimate how the factors affected the rice
farmers’ risk attitudes. The risk-neutral farmers comprised 53.72% of farmers in the survey, while
31.72% and 15.15% were risk-preferred and risk-averse farmers. The study results indicated that age,
number of rice crops per year, household assets, income from rice production, and credit accessibility
were the main factors affecting the farmers’ risk attitudes. The results suggest that the financial
incentives’ policies to compensate for losses in uncertain conditions and increase the household
income, diversification of income sources, and improving the accessibility of formal credit might be
useful to increase farmers’ willingness to accept the risks of investing in better profitability projects
and gaining a higher income.


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