Alleviate Poverty in Vietnam
Vietnam is one of the most populated Asian countries, with more than 90 million people calling the country home. With such a large population, poverty is unavoidable, especially in the rural parts of the country. Despite the ongoing problem of poverty, rural parts of Vietnam have been able to decrease the amount of poverty with the implementation of certain policies and programs. This article will offer some details of policies and programs helping to alleviate poverty in Vietnam.

Hunger and Poverty Eradication Program

The Hunger Eradication and Poverty Reduction Program, or HEPR, focuses on the children of Vietnam. Children and their families benefit from the program with free health insurance. Additionally, they obtain schooling needs such as tuition exceptions, subsidies and loans designated for children living in poverty. With the aid of HEPR, studies have shown that enrollment in early schooling increases to around 9%. This is beneficial to alleviate poverty in Vietnam and its future since the lack of education is one of the biggest poverty risk factors.

In 2010, nearly 75% of households had members who only completed primary school. Six years later, the number decreased to 57%, which happened with the aid of programs like the Hunger and Poverty Eradication Program of Vietnam. Through the focus of gaining educational opportunities for the future of Vietnam, the Hunger and Poverty Eradication Program of Vietnam has worked to support the process of attaining education.

National Targeted Program for Poverty Reduction

The National Targeted Program for Poverty Reduction, or NTPPR, is a poverty-reduction initiative that uses an anthropological perspective to target ethnic minorities living in poverty-stricken rural areas. Through this targeting, NTPPR gains insight on how to alleviate the amount of poverty in Vietnam, for example. This program aims to reduce poverty by around 4% yearly, which is double the national target. This goal helps with encouraging the decrease in poverty because it sets higher expectations for the program.

Health insurance is one of NTPPR’s biggest priorities and this program provides free insurance for children that are age 6 and younger. This is especially beneficial for women who have to work to sustain their household incomes. Since mothers no longer need to take hours off to tend to their illness-vulnerable children, they receive a great benefit. The NTTPR is beneficial to impoverished rural areas and helps the neediest population to alleviate poverty in Vietnam or its symptoms.

The World Bank Group Country Partnership Framework in Vietnam

The World Bank is a global program that helps to support countries with low-interest rate loans. The World Bank works to improve the farming industry of rural Vietnam by encouraging low-income farmers with profit-making crops. Through helping the economic growth of impoverished areas, nearly 1.5 million people join the Vietnamese middle class annually. Vietnam has since reduced its poverty to nearly 10%. For instance, as of 2016 and in 2018, 70% of people living in Vietnam are income-secure. The World Bank has assisted with Vietnam’s most disadvantaged population through increasing farming productivity, strengthening the skills of farmers and leveling the playing field for all the gain employment opportunities.

Despite the many economic challenges Vietnam has faced throughout the years, programs and initiatives like the HEPR, NTPPR and the World Bank have supported the growth of Vietnam’s economy by downsizing the amount of poverty in rural areas.

Karina Wong
Photo: Unsplash

Poverty Eradication in Vietnam
Between wars, famines, communist regimes and poverty, Vietnam has had its share of troubles. In 1992, 52% of Vietnam’s population was in poverty, but things have changed for the better. Vietnam has been able to bounce back from its difficulties and is now one of the fastest-growing economies in the world. In 2018, less than 2% of Vietnam’s population was in poverty. Poverty eradication in Vietnam has been successful because of its strong production, widespread infrastructure and growing middle class.

Entering the Global Economy

Vietnam has had many economic troubles in the past. One of its major problems was its reliance on agriculture as a source of income. In 1991, around 40% of Vietnam’s GDP was agriculture.

Growing crops simply did not pay enough to support Vietnamese families. Many impoverished farmers solely relied on agriculture to provide for their families. Vietnam was not doing anything to diversify its economy into more promising markets. While countries like China and Japan were building factories and manufacturing cars, Vietnam was growing rice. Once Vietnam started to invest in more profitable industries, its GDP skyrocketed. Vietnam’s real GDP growth rate was 7% in 2019, far higher than any other in the region. In 2020, around 34% of Vietnam’s GDP comes from industry markets.

Some of its main exports include electronics, footwear and textiles. This has provided life-changing opportunities for millions of Vietnamese families. Many of these poor families are now moving to major cities to work in factories and earning higher wages. Poverty eradication in Vietnam has been largely successful due to its strong and diverse economy.

Opportunities for Poor Families

A large percentage of Vietnam’s population lives in rural areas surrounded by mountain ranges. Previously, most of these people grew simple crops like rice. This was not enough to improve their poor living conditions and many of these people went hungry. The Vietnamese government has sought to dramatically increase the amount of infrastructure in order to connect these rural villages to the rest of the population. In 1993, 14% of the population used electricity as their main source of lighting. This rose to 99% as of 2016. Meanwhile, in 1993, only 17% of rural areas had access to clean water. Now, more than 70% have access to this essential service. These mountain villages are now in contact with the rest of the Vietnamese population. This has provided valuable opportunities for these poor families that they have never had access to before.

Creating a Strong Middle Class

Now that many of these rural villages are connected, people are starting to move out of poverty and into a growing middle class. Major cities such as Hanoi and Ho Chi Minh City are growing as people look for more opportunities. Higher wages and increased standard of living have lured many rural families into moving to the city. Thirteen percent of Vietnam’s population is part of the middle class, and middle-class numbers are continuing to climb. On average, 1.5 million Vietnamese join the middle class every year. What makes this even better is that very few of these people fall back into poverty. From 2014 to 2016, only 2% of Vietnamese who moved out of poverty fell back into it. Poverty eradication in Vietnam is not only successful but sustainable as well.

Despite numerous hardships, Vietnam has been able to go against the odds and become one of the fastest-growing countries in the world. In the late 1900s, Vietnam was in a dismal state. More than half of its population was in poverty. However, by entering the global economy, expanding its infrastructure and creating a strong middle class, poverty eradication in Vietnam is unprecedented in its success. Many hope that Vietnam will continue this success in the future.

Evan Weber
Photo: Flickr