Vol.:(0123456789) Environment, Development and Sustainability https://doi.org/10.1007/s10668-019-00429-x 1 3 Rural livelihood diversifcation of Dzao farmers in response to unpredictable risks associated with agriculture in Vietnamese Northern Mountains today An Thinh Nguyen 1  · Le Truc Nguyen 1  · Hanh Hong Nguyen 2  · Hanh Van Ta 3  · Hong Van Nguyen 4  · Tuan Anh Pham 5  · Bich Thi Nguyen 6  · Thao Thi Pham 2  · Nhan Thi Thanh Tang 2  · Luc Hens 7,8 Received: 18 September 2018 / Accepted: 18 July 2019 © Springer Nature B.V. 2019 Abstract Vietnamese rural mountains are undergoing a signifcant transformation process in agri- culture-based economy nowadays. A challenge facing ethnic minorities is identifying more appropriate way of life to cope with unpredictable risks associated with agriculture. This paper deals with livelihood diversifcation by the Dzao, an indigenous ethnic minor- ity group in the Vietnamese Northern Mountains. One hundred and six Dzao households from 11 villages are surveyed with a systematic random sampling. The Simpson diversity index and the Average Agricultural Livelihood Diversifcation Index are used to measure the livelihood diversifcation of villages. Eighteen survey questions are developed from six determinants of livelihood diversifcation such as seasonality, risk strategies, labor mar- kets, credit market failures, asset strategies and coping behavior and adaptation. The results show that livelihood diversifcation aligns Dzao farmers’ goals to the short-term economic feasibility and long-term sustainability. Farmers diversify their livelihood by combining livelihood strategies for agricultural intensifcation, agricultural extensifcation and migra- tion. Diversifcation should range from a temporary change in the household livelihood portfolio (occasional diversifcation) to a deliberate attempt to optimize the household capacity taking advantage of opportunities and coping with unexpected constraints (strate- gic diversifcation). Keywords Livelihood diversifcation · Livelihood capitals · Dzao farmers · Cinnamon production · Unpredictable risks · Vietnamese Northern Mountains 1 Introduction Livelihood diversifcation is considered as one of the most signifcant aspects of rural livelihoods (Gautam and Andersen 2016). The diversity of rural livelihoods, particu- larly in developing countries, attracted the attention and interest from both the academic * An Thinh Nguyen anthinhhus@gmail.com Extended author information available on the last page of the article