Vietnam is a country located in Southeast Asia that has been rapidly reducing the poverty rate for the last few decades. This progress followed trade liberalization and wider economic reforms beginning in the 1990s. Although the country has greatly flourished in the past decades, several regions still face high poverty rates. One example is the Lao Cai province.

Background on the Lao Cai Province

Lao Cai Province faces a higher poverty rate than the country of Vietnam. Official 2024 figures put Lao Cai’s household poverty rate at 11.24%, compared with 1.93% nationally. One of the factors for the high rate is the landscape. Lao Cai is a predominantly mountainous region. This poses a huge problem because the province chiefly relies on agriculture to bring in revenue. Additionally, the mountainous region makes traveling to different areas difficult, resulting in less accessibility to trade and revenue.

The population also plays a part in the high poverty rate. The region’s population is composed of several ethnic minorities: H’mong, Tay, Dao, Nung and Giay. These minority groups make up 71% of Lao Cai’s inhabitants. Alongside living in a mountainous region that limits accessibility to other surrounding provinces, these ethnic groups face higher chances of poverty because of a lack of tourism industry knowledge, language barriers and business support services. Many people in these ethnic minorities are taught their native tongue, which means they face challenges comprehending in educational settings where the language spoken is standard Vietnamese. In recent years, actions have been taken to provide more opportunities for the people living in the province.

Local Action to Improve Connectivity

Some individuals living in Lao Cai province have taken the matter of reducing poverty in the region into their own hands. One of these people is Giang A Thu. Thu is a H’mong leader who resides in the Giang Pang village. His actions in bringing positive change to his village include talking with different families living in the village and listening to their concerns. By building these relationships, Thu creates a personal connection with the villagers and provides guidance on how to bring improvement to Giang Pang. Thu’s family willingly gave up some of their land to help improve accessibility to schools and markets. He also encouraged villagers to donate some of their land and collect material to improve infrastructure. Additionally, Thu has provided guidance to the villagers on how to expand their livestock and worked with local organizations to ensure improvements to the villagers’ lives become reality. According to VietnamNet, Giang Pang’s poverty rate fell from 24% in 2021 to 12% in 2025 as local infrastructure and livelihood initiatives expanded.

Looking Ahead

Involving locals in Lao Cai in reducing the poverty rate bridges the gap for minority groups, providing the resources needed to successfully bring new opportunities and accessibility into their lives.

– Dorothea A Pudwill

Dorothea is based in West Springfield, Massachusetts and focuses on Business and New Markets, and Good News for The Borgen Project.

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