The main objective of this paper is to simulate the effects of soil erosion on river water quality and on agricultural production as a result of the transformation of forestlands in the catchment of the upstream Phong River. Suspended solids carry down attached nutrients and agricultural chemicals causing water pollution in the downstream. There are four different types of land use in this simulation, namely forestlands, flatland and highland sugarcane plantation areas, and paddy fields. The highest mean annual amount of soil erosion is from paddy fields (585,700 tons/year), followed by highland (73,800 tons/year) and flatland (63,950 tons/year) sugarcane plantation areas and forestlands (41,800 tons/year), respectively. However, as most of paddy fields are located in a low land and are wet type cultivations, the soil erosion occurred has less impact on river water quality and its production compared to the soil erosion from the steeper slopes of highland plantation areas. Under the resource-based agriculture, the sugarcane production is mainly increased by expanding the plantation areas leading to a significant loss of topsoil and a considerable reduction of agricultural production. Soil erosion contributes to an increase in the average annual suspended solids concentration by 72 mg/l.

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