This book presents an analysis of the transition process with particular emphasis on the agricultural sector in Vietnam. Focusing on the ethnic minority of the Black Thai in the mountainous regions of Northern Vietnam, the impact of the rural reform process on their livelihood is examined. The analytical tool used in this work is a stochastic frontier analysis model, whose parameters are estimated by a regression analysis. Although the transition process in general has had a positive impact on the livelihood of the population, the gap between the rich and the poor has widened during the last ten years. Imperative measures are the introduction of technical innovations in the agricultural sector and their promotion through governmental as well as national and international non-governmental organisations.