Land Accumulation and Economic Efficiency in Extensive Black Tiger Shrimp Farming in the Vietnamese Mekong Delta

Abstract

Amid population growth and a shift from extensive to intensive shrimp farming, there may be a future reduction in extensive shrimp farming and mangrove forest areas. Understanding the correlation between land accumulation, economic efficiency, and potential losses is crucial. This study interviewed 311 black tiger shrimp farmers in the Mekong Delta, using one-step stochastic frontier analysis to estimate efficiency and investigate these correlations. Findings indicate an average economic efficiency of 82%, suggesting an 18% reduction in observed total costs. Economic losses, estimated at 82–465 USD/ha, were primarily seen in households with land areas below 2 ha. A positive correlation between land accumulation and economic efficiency suggests that maintaining a minimum pond area of 2 ha enhances income and mitigates losses. The study highlights the need for policies supporting land consolidation among shrimp farmers to achieve optimal pond sizes, reducing losses, and improving profitability, while promoting sustainable practices to balance shrimp farming with mangrove conservation.