Following a 20-year war that decimated Vietnam’s economy, the country has dedicated the past 30 years to economic recovery. In 2021, through reforms, innovation and placing technology as a core element, Vietnam managed to directly whittle down the percentage of its population classified as living in “Extreme Poverty” under the Multidimensional Poverty Index from 49% to 4%. Here are some ways Vietnam is utilizing the modern world to address poverty.

Supporting Entrepreneurs

Despite significant progress, the effects of poverty continue to disproportionately affect individuals belonging to “Ethnic Minority” groups in Vietnam, highlighting this as a crucial area for development in the ongoing fight against poverty. The United Nations Development Program (UNDP), an agency of the United Nations dedicated to assisting countries with their efforts to combat poverty, initiated a project called the 4M (Meet, Match, Mentor, Move) Solution to help female Vietnamese ethnic-minority micro-entrepreneurs expand their business through match up with e-commerce partners. This program has yielded positive results, with about 100 cooperatives experiencing a minimum 30% increase in revenue, benefitting more than 13,000 women.

Betting on Production

Vietnam, despite having a relatively low urban population proportion (38% as of 2021), has achieved impressive technology adoption with a remarkable 70.3% internet penetration rate. This achievement can be attributed, in part, to affordable data plans that keep costs low. However, one challenge remains: limited internet coverage for individuals living in extreme poverty.

These advancements align with the country’s pursuit of an “Industrial Revolution 4.0,” driven by a wholehearted embrace of modern technology and its economic potential. Strategic policies and tax incentives have positioned Vietnam as a regional hub for technology and semiconductor manufacturing. As a result, several major global corporations have relocated their production facilities to the country, contributing to significant GDP growth. With an expanding GDP, living standards are on the rise, and workers are securing higher productivity jobs, leading to improved income levels.

Insuring Infrastructure

Agriculturally, Vietnam heavily relies on the abundant production of rice crops, exposing farmers to the uncertainties of changing climate conditions and fluctuating government policies. The reliability of produce is further threatened by water scarcity issues, opening the way to solutions such as the Mekong Delta Smart Irrigation Project.

Through the utilization of high-tech sensors and water pumps that provide real-time feedback directly to smartphones, farmers can instantly check water levels and experiment with techniques to ration their resources. 

In one notable farming cooperative, ‘Phu Can,’ the implementation of supportive monitoring hardware has yielded positive outcomes,  allowing a similar produce of rice with 20% less water usage. This technological intervention serves to fortify the rice industry against the challenges posed by the evolving world.

Looking Ahead

Vietnam has borne the brunt of its economic downturn for decades, making the turning of its fortune largely carried on the winds of developing technologies and modern conveniences an inspiring narrative. The examples of successful implementation of modern technology in Vietnam stand as a testament to the broadening of opportunities for various minority classes. This approach has helped empower the underprivileged and safeguarded crucial agricultural produce from the unpredictable impacts of changing circumstances.

Vietnam has made significant progress in its fight against poverty, with the Multidimensional Poverty Index reaching a low of 4% in 2021. However, recent data from early 2023 suggests a rise to 9%. Nevertheless, the nation has a strong track record of commitment to systemic improvement over the past 30 years. This dedication spurs hope for continued progress in the ongoing struggle against poverty.

– Brandon Murphy
Photo: Unsplash