Poverty in Vietnam

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Share of population in extreme poverty over time Poverty in Vietnam.jpg
Share of population in extreme poverty over time
Map poverty rates by district of Viet Nam in 2010 and 2014. Map poverty rates by district of vietnam in 2010 and 2014.jpg
Map poverty rates by district of Viet Nam in 2010 and 2014.

Until the 1990s, most of the Vietnamese population lived under the poverty line. [1] This was due to a number of reasons, which was a result from years as a French colony, [2] the Japanese occupation of Vietnam, [3] the Vietnam-American War, [4] and further conflicts within Mainland Southeast Asia (primarily the Cambodian-Vietnamese war [5] [6] and the Sino-Vietnamese War [7] ). Continuous conflicts from 1887 to 1991, more than 100 years of instability had left Vietnam a war-torn [8] [9] [10] country that was prone severe floods from typhoons, rising sea levels, as well as the so-called "flood season" from seasonal monsoons (East Asian monsoon in winter and South Asian monsoon in summer), as well as the effects of climate change. [11] [12] [13]

Contents

Political and economic reform that started in 1986, which was a set of policies for market liberalisation labelled Đổi Mới (Renovation/Innovation), the status of poverty and hunger in Vietnam has been significantly improved - from one of the poorest countries in the world with per capita income below US$100 per year, by the end of 2013 Viet Nam became a middle income country with per capita income of US$1,910 (in 2013). [14] The poverty rate decreased from 58 percent in 1993 to 28.9 percent in 2002, 14.5 percent in 2008, to about 12 percent in 2011. About 28 million people are estimated to have been lifted out of poverty over two decades. [1] The 2014 Global Hunger Index (GHI) Report ranked Vietnam 15th amongst 81 nations suffering from hunger, with a GHI of 7.5 compared with an alarming 27.7 in 1990 (country with extremely alarming (GHI ≥ 30), alarming (GHI between 20.0 and 29.9) or serious (GHI between 10.0 and 19.9) hunger situation. [15] Achievements in poverty reduction and hunger eradication have been highly appreciated and successful in furthering economic development. However, Vietnam still has many tasks ahead in fighting against poverty and hunger at large as well as for more vulnerable groups of people such as ethnic minorities, disabled people, caring for the elderly, and those vulnerable to crime. [16] [17] [18] [19]

Famine in Vietnam, 1945 Famine in Vietnam, 1945 (6).jpg
Famine in Vietnam, 1945

In terms of education, besides primary school and secondary school which most Vietnamese complete, high school completion rates in early 2021 in the second year of the coronavirus pandemic was only an abysmal 58%, which was nevertheless, was up from just 55% in 2013. [20] From 1990 to 2016, Viet Nam's gross enrolment ratio in tertiary education grew from only 2.7% to 28.3%. Nevertheless, the ratio remains well below that of other countries in the region. [21] Specific regions of Vietnam where there are heavy imbalances of education attainment and wealth dragged the average down. [20]

Based on a report from the Asian Development Bank, Vietnam has a total population of 91.70 million as of 2015, about one million people more compared to the previous year. [22] In 2016, 5.8% of the population lived below the national poverty line; in 2019, the unemployment rate was 2.0%. [23] The percentage of people living in slums dropped from 60.5% in 1992 to 13.8% living in slums by 2018. [24]

Furthermore, the climate of Vietnam is heavily prone to floods from a number of sources: typhoons; seasonal monsoons, with the South Asian monsoon in the summer, and the East Asian monsoon in the winter; and rising sea levels as a consequence of climate change. [25] [26] Although the 21st Century for Vietnam so far has been remained relatively conflict-free military wise, challenges remain nonetheless.

Poverty and demographics

There are a wide range of causes of poverty, however poverty derives mostly from demographic elements:

Such instances of poverty as well as neglect of school can lead people to become more exposed and vulnerable to crime such as human trafficking, corruption, drug trafficking, etc.

Provision on poverty line

Poverty line applied for the period 2005 – 2010

Based on the state of the socio–economic development, the government promulgates the poverty line for each stage. The ordinance of the poverty line applied for the period 2005 – 2010 [33] provided that:

Poverty line applied for the period 2011 – 2015

The ordinance of the poverty line applied for the period of 2011 – 2015 [34] provided that:

With the new poverty line, Vietnam's percentage of households was estimated to be 12 percent at the end of 2011.

Poverty reduction

Some achievements regarding poverty reduction in Vietnam are summarized below:

Economic growth

Maintaining economic growth is essential to underpin further reductions in poverty. [16] Sustainable growth is the pre-condition to create employment, improve income and create resources needed to implement well-being and social-safety programs. The high economic growth from 2000 to 2010 from the base of a very poor economy was regarded as a substantial cause of reducing poverty and eradicating hunger.

Governmental programs

The high political determination and commitment of the government in fighting against poverty and hunger as well as its citizens and Vietnamese abroad has played a critical role. In the last two decades, many policies have been promulgated with huge governmental funds. Re-emittances by overseas Vietnamese back to Vietnam also number in billions of dollars. The most prominent program is the socio-economic development program for the most vulnerable communes in ethnic minority and mountainous areas, also shortly referred to as the 135 program. The program's target is to:

In its phase I (1998 – 2005), the program invested VND 9142 billion (US$571 million) from the governmental fund for 1870 extremely difficult communes. The program's phase II (2006 – 2010) continued to cover 1879 communes with a total budget of US$1 billion. [27]

Assistance from international community

As a previously underdeveloped country, Vietnam prioritized receiving Official Development Assistance (ODA) from international organizations and developed countries such as the World Bank, the Asian Development Bank, the United Nations and the European Commission. Over the last decades, these organizations have provided millions of dollars to invest in infrastructure, human resource development, and public administration reform. For example, in the period of 1993–2001 a total of US$17.5 billion was pledged to the Government of Vietnam, with annual pledges remaining at a constant level in the order of US$2.2 billion each year. From this amount, the total value of signed ODA is around US$14 billion, with actual disbursements estimated to be US$9 billion. [27]

Collaboration between parties

Reduction in poverty is only successful if all parties from the government to civil society and donors, from central to local government and people themselves are involved in the process. However, it is essential that the roles and responsibilities of the various stakeholders are assigned clearly and specifically. Greater clarity of their roles will result in a more effective and greater coherence between them. The Vietnam Development Report (2001) suggests a way of addressing this by making a clear division of responsibility between central and local government, the role of poverty reduction staff at local levels, and of related stakeholders, for the management and delivery of poverty reduction activities. [27]

The social protection system

The social protection system plays an essential role for sustainable poverty reduction. In Vietnam, the current social protection system consist of three main components which are social security, social assistance and area-based programs. The social security includes social insurance, health insurance and unemployment insurance. The social assistance targets beneficiaries including the elderly aged 85 and over or living alone, the disabled, mentally-disabled patients, single parents, orphans and others, whereas the area-based program is to be spent on emergency relief to provide aid to natural disaster victims. [16] A side effect however of increasing socio-economics also leads to increasing social pressures. Suicide rates in Vietnam have increased over the past decades (2000-2021), with men being more likely to be recipients of suicidal deaths then women. [35] Suicide rates have had this gender imbalance across a majority of countries or nations or peoples. As such, a social protection system (tư-vấn tâm-lý, psychological-counselling in Vietnamese) for those at risk of suicide (tự tử or tự sát) is important, with more research and study in regards to suicidal prevention for Vietnamese required. [36] At the same time, more research and studies are required to resolve issues of sexual assault, harassment and trauma, with women and girls being more at risk then men and boys, as well as resolving issues regarding trafficking (human trafficking & sex trafficking) and slavery. [37] [38] [39] [40] [41] [42] [43] [44]

Education & Healthcare

Access to education and healthcare evidently provides a means of poverty reduction for those vulnerable. [19] For those with access to education already, private tutoring (học thêm in Vietnamese) was a phenomenon that was common for those who could afford to pay for after-school hours. Complex issues about private tutoring such as those who were 'elite' or 'privileged' could afford and access private tutoring whilst the poor had to struggle more to access such services, or that extensive private tuition was an indication of the need to improve public sectors are common arguments of the complexity of the nature of private tuition. For those in extremely poor circumstances, it is more about improving access to educational and healthcare services so that there is a chance of improved socio-economics. [45] [46]

See also

Related Research Articles

<span class="mw-page-title-main">Economy of Vietnam</span>

The economy of Vietnam is a developing mixed socialist-oriented market economy. It is the 35th-largest economy in the world by nominal gross domestic product (GDP) and the 26th-largest economy in the world by purchasing power parity (PPP). It is a lower-middle income country with a low cost of living. Vietnam is a member of the Asia-Pacific Economic Cooperation, the Association of Southeast Asian Nations and the World Trade Organization.

<span class="mw-page-title-main">Transport in Vietnam</span> Overview of the transport in Vietnam

Transportation in Vietnam is improving rapidly in terms of both quantity and quality. Road traffic is growing rapidly but the major roads are dangerous and slow to travel on due to outdated design and an inappropriate traffic mix. In recent years, the construction of expressways has accelerated. Air travel is also important for long distance travel. Metro systems are under construction in the two metropolises of Hanoi and Ho Chi Minh City.

<span class="mw-page-title-main">Vietnamese đồng</span> Currency of Vietnam

The dong has been the currency of Vietnam since 3 May 1978. It is issued by the State Bank of Vietnam. The dong was also the currency of the predecessor states of North Vietnam and South Vietnam, having replaced the previously used French Indochinese piastre.

<span class="mw-page-title-main">North Central Coast</span> Region of Vietnam

Bắc Trung Bộ is one of the geographic regions of Vietnam. It consists of six provinces in northern part of Central Vietnam: Thanh Hóa, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị, Thừa Thiên–Huế. The last two provinces were the northernmost provinces of State of Vietnam and South Vietnam until Reunification of Vietnam in 1976. In the Nguyễn dynasty, this area was known as Hữu Trực Kỳ.

<span class="mw-page-title-main">Poverty in India</span>

Poverty in India remains a major challenge despite overall reductions in the last several decades as its economy grows. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak. According to the World Bank, India experienced a significant decline in the prevalence of extreme poverty from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period. The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively. According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."

Poverty in Pakistan has been recorded by the World Bank at 39.3% using the lower middle-income poverty rate of US$3.2 per day for the fiscal year 2020–21. In September 2021, the government stated that 22% percent of its population lives below the national poverty line set at Rs. 3030 (US$10) per month.

<span class="mw-page-title-main">Measuring poverty</span> Overview about the measure of poverty

Poverty is measured in different ways by different bodies, both governmental and nongovernmental. Measurements can be absolute, which references a single standard, or relative, which is dependent on context. Poverty is widely understood to be multidimensional, comprising social, natural and economic factors situated within wider socio-political processes.

<span class="mw-page-title-main">1999 Vietnamese floods</span>

The 1999 Vietnamese floods occurred in late October 1999 when Vietnam experienced the worst flooding in forty years. Tropical Storm No. 9 first appeared in heavy rain from 18 to 20 October, hitting the central provinces of Quang Binh, Quang Tri, Thua Thien Hue, Danang, Quang Nam in Vietnam. The rain was the first in a series of rainstorm events that lasted for two to three weeks.

<span class="mw-page-title-main">Poverty in China</span> Economic issues in China

In China today, poverty refers mainly to the rural poor. Decades of economic development has reduced urban extreme poverty. According to the World Bank, more than 850 million Chinese people have been lifted out of extreme poverty; China's poverty rate fell from 88 percent in 1981 to 0.7 percent in 2015, as measured by the percentage of people living on the equivalent of US$1.90 or less per day in 2011 purchasing price parity terms, which still stands in 2022.

<span class="mw-page-title-main">Health in Vietnam</span>

Health in Vietnam encompasses general and specific concerns to the region, its history, and various socioeconomic status, such as dealing with malnutrition, effects of Agent Orange as well as psychological issues from the Vietnam War, tropical diseases, and other issues such as underdeveloped healthcare systems or inadequate ratio of healthcare or social workers to patients.

Bangladesh is an under-devoloped nation. Despite rapid economic growth, poverty remains a major issue. However, poverty has declined sharply in recent history. Shortly after its independence, approximately 90% of the population lived under the poverty line. However, since economic reforms and trade liberalization of early 1990s, along with accelerated economic growth since early-2000s, Bangladesh have experienced a dramatic progress in reducing poverty. The remarkable progress in poverty alleviation has been recognized by international institutions. According to World Bank, more than 33 million Bangladeshi people have been lifted out of poverty since 2000; as measured by the percentage of people living on the equivalent of US$1.90 or less per day in 2011 purchasing price parity terms.

The International Fund for Agricultural Development (IFAD) is an international financial institution and a specialized agency of the United Nations dedicated to eradicating rural poverty in Vietnam and other developing countries. IFAD supports more than 200 ongoing programmes and projects around the world.

<span class="mw-page-title-main">Poverty in the Philippines</span>

In 2021, official government statistics reported that the Philippines had a poverty rate of 18.1%,, significantly lower than the 49.2 percent recorded in 1985 through years of government poverty reduction efforts. From 2018 to 2021, an estimated 2.3 million Filipinos fell into poverty amid the economic recession caused by the COVID-19 pandemic.

<span class="mw-page-title-main">2021 SEA Games</span> Multi-sport event in Hanoi, Vietnam

The 2021 Southeast Asian Games, officially known as the 31st Southeast Asian Games, 31st SEA Games or SEA Games 31, and also recognized as Viet Nam 2021, was the 31st edition of the Southeast Asian Games, the biennial regional multi-sport event which was held in Hanoi, Vietnam and its surrounding cities from 12 to 23 May 2022.

Pensions in Vietnam are provided through a state pension scheme called social insurance, and private life insurance-type schemes. The pension system of Vietnam was ranked 57th out of 70 economies according to a 2020 Allianz report. As of 2020, 11.4% of Vietnamese have reached retirement age, but this number is expected to triple by 2050.

Vietnam utilizes four main sources of renewable energy: hydroelectricity, wind power, solar power and biomass. At the end of 2018, hydropower was the largest source of renewable energy, contributing about 40% to the total national electricity capacity. In 2020, wind and solar had a combined share of 10% of the country's electrical generation, already meeting the government's 2030 goal, suggesting future displacement of growth of coal capacity. By the end of 2020, the total installed capacity of solar and wind power had reached over 17 GW. Over 25% of total power capacity is from variable renewable energy sources. The commercial biomass electricity generation is currently slow and limited to valorizing bagasse only, but the stream of forest products, agricultural and municipal waste is increasing. The government is studying a renewable portfolio standard that could promote this energy source.

Hunger in Bangladesh is one of the major issues that affects the citizens of Bangladesh. The nation state of Bangladesh is one of the most densely populated countries in the world and home for more than 160 million people. It progresses immensely in the Human Development Index, particularly in the areas of literacy and life expectancy, but economic inequality has increased and about 32% of the population, that is 50 million people, still live in extreme poverty.

<span class="mw-page-title-main">COVID-19 pandemic in Vietnam</span> Ongoing COVID-19 viral pandemic in Vietnam

The COVID-19 pandemic in Vietnam has resulted in 11,624,000 confirmed cases of COVID-19 and 43,206 deaths. The number of confirmed cases is the highest total in Southeast Asia, and the 13th highest in the world. Hanoi is the most affected locale with 1,649,654 confirmed cases and 1,238 deaths, followed by Ho Chi Minh City with 628,736 cases and 20,476 deaths; however, the Vietnamese Ministry of Health has estimated that the real number of cases may be four to five times higher.

<span class="mw-page-title-main">2020 Central Vietnam floods</span> Series of severe rainfall and floods in Central Vietnam in 2020

The 2020 Central Vietnam floods were a series of floods in Central Vietnam, which also affected some areas in Cambodia and Laos in October and early November 2020. The floods focused heavily in several provinces including Thừa Thiên Huế, Hà Tĩnh, Quảng Bình, Quảng Trị, and Quảng Ngãi. The floods were mainly caused by the seasonal monsoon, though enhanced by numerous tropical cyclones.

<span class="mw-page-title-main">Vietnamese government response to the COVID-19 pandemic</span> Actions by the Vietnamese government on COVID-19 pandemic

The government of Vietnam prepared for the COVID-19 pandemic as early as the first cases in China emerged in December 2019, and pursued a zero-COVID strategy until September 2021.

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Additional sources