An assessment of key factors affecting farm households’ livelihood diversification strategies using a novel approach of multivariate probit: A case of rural Vietnam

This study investigated the various factors influencing farm households’ livelihood strategies and livelihood diversity that resided in the northern mountainous region of Vietnam. Primary data of 782 respondent households was collected through multistage sampling techniques in the targeted areas. Multivariate Probit (MVP) model was utilized to analyze the collected data. Results showed that a number of livelihood capitals influenced significantly the probability of farmers to choose their livelihood strategies such as nutrition, household proportion, farming extent, agriculture and non-agriculture income, age of household head, credit access, distance from market and farm, perception to climate change and values of motorbike and tractors. Based on the study findings and rural household livelihood strategy characteristics, this study provided valuable insights for policymakers and professionals in designing effective livelihood strategies to promote sustainable development for rural regions.