The Impacts of Cross-border Trade to the Ethnic Groups in the Border Areas of Vietnam

Abstract

This study was conducted in three provinces of Lao Cai, Quang Tri, An Giang, where the participation of, and impacts on, border ethnic groups in cross-border economic activities are very exciting to explore. The Kinh play a dominant role in the cross-border economic activities. The ethnic groups also participate in the different cross-border trade activities, depending on the market's ethnic awareness. The cross-border economic development has the following positive impacts: changing the economic mindset of many ethnic groups; restructuring the economy towards a reduced proportion of agriculture, increasing the share of industry and construction, keeping the proportion of trade and services at a high level, as well as improving the infrastructure and living standards of people in the area. However, this development has also caused challenges and risks for the ethnic groups: the increasing division between rich and poor, the consequences of social unrest, environmental degradation, and food insecurity in low-income ethnic communities.