Does Adaptation to Saltwater Intrusion Improve Household Income in the Mekong Delta, Vietnam?

Saltwater intrusion poses a substantial threat to agricultural industry. Employing an instrument variable approach, this study used a survey of 469 households affected by saltwater intrusion in the selected provinces in Mekong Delta, Vietnam to investigate the impact of adaptation methods to saltwater intrusion on household income. The findings reveal that adopting agricultural transformation, applying technology in crop cultivation and aquaculture, and implementing multiple adaptation methods can improve household income. Meanwhile, no significant effect is observed from job change. The results are robust when incorporating the alternative measurement of household income, say net income. The study also shows that heterogeneous effects exist when considering different sectors of agricultural industry, say crop cultivation and aquaculture. Given that, the study provides some policy implications for the local government and farmers to alleviate the adverse impacts of saltwater intrusion and improve their livelihoods, contributing to the sustainable development of Vietnam’s agricultural industry.