coffee in vietnamThe comforting routine of having a rich cup of coffee in the morning is a habit shared by numerous people around the world. Unique flavors and distinctive brews come from various countries such as Brazil, Colombia and Indonesia. Vietnam, once an underdog in the coffee industry, has now become one of the top coffee exporters in the world. As a new major contender in the international coffee trade, Vietnam faces new economic opportunities moving forward. Importantly, coffee in Vietnam has the potential for reducing poverty.

How Coffee in Vietnam Took Root

French colonists introduced coffee in Vietnam in 1857. The central highlands region, Buon Ma Thuot, had ideal growing conditions for the crop. Accordingly, it became a target region for coffee cultivation. Growing coffee in Vietnam proved to be difficult yet promising. The government encouraged citizen migration to rural regions such as Buon Ma Thot, which gained a 265% increase in the overall population. By the end of 2000, over 4 million people settled in this area, which created a new and expansive workforce for the coffee industry. This new workforce, combined with the government’s coffee-growing program and the increased demand for coffee worldwide, created a boom in Vietnam’s economy.

In the span of just two decades, Vietnam became one of the most competitive coffee producers in the world. It now ranks as the 2nd largest coffee exporter behind Brazil. Starting with 8,400 tons of coffee produced in 1980, production numbers skyrocketed to 900,000 by 2000. Coffee production has contributed to Vietnam’s GDP increasing by 7.7% within the past few years. Unexpectedly, coffee became an important player in the Vietnamese economy.

Challenges Brewing Within the Industry

Two main types of coffee beans, Robusta and Arabica, compose most of the beans exported by countries worldwide. Currently, 95% of Vietnamese coffee exports are Robusta, known as lower quality beans. As a result, the success of Robusta in the market depends on fluctuations in global demand. Vietnam’s coffee industry must account for this variable by improving the flavor and quality of beans harvested in Buon Ma Thuot to remain competitive in the worldwide market.

But remaining competitive in the market is no easy task. Unlike globally known brands such as 100% Colombian coffee, Vietnam still needs to establish its trademark in the international market. Currently, processed coffee accounts for only 7% of Vietnam’s exports. Increasing coffee processing by establishing joint ventures with known retailers and roasters could create new opportunities for the industry. If Vietnamese brands become household names, Vietnamese coffee can garner substantially greater profit margins in the global market.

In addition to increasing coffee quality and ameliorating marketing tactics, Vietnam’s farming strategies must improve. Though Robusta is typically more resilient to environmental stressors, such as hot climates, pests and disease, this coffee crop is still susceptible to the dangers of unsustainable farming practices. Farming strategies that rely on intensive irrigation and the overuse of fertilizers can exhaust soil quality.

To combat land degradation, Vietnam’s government collaborates with global companies such as Kraft Foods and Nestlé. It also works with conservation organizations such as the 4C Association, Rainforest Alliance and Fairtrade Foundation. Together, they educate farmers, improve farming practices and establish an agricultural standard. This works to effectively and sustainably increase the production of coffee in Vietnam.

Solving Poverty One Cup at a Time

The significant surge in coffee production in Vietnam also means countless farmers and citizens gain a newfound source of income. With only 6% of total coffee production used domestically, coffee has become Vietnam’s key export. Coffee production provides a livelihood for around 2.6 million people. Importantly, 600,000 of these individuals are small-scale farmers, many of whom belong to underrepresented social groups.

This emerging industry has allowed Vietnam’s economy to vastly improve within a short span of time. Economic growth continuously boosts Vietnamese citizens’ quality of life. In 1994, Vietnam’s poverty rate was at 90%. As of 2020, the poverty rate has lowered to 23%.

Global corporations also take part in developing Vietnam’s coffee industry and helping farmers. Nestlé and Mondelez International have each invested more than $200 million in training farmers to distribute stable supplies of coffee. In 2015, Starbucks introduced Vietnam Da Lat, its first single-origin coffee from Vietnam, to its locations in more than 50 countries. Altogether, more than 21,000 farmers benefited from foreign investments in this booming industry.

Overall, coffee in Vietnam is a growing industry with many future possibilities. With the right policies and guidance, Vietnam’s coffee industry can further improve its economy, provide income opportunities and increase standards of living for countless communities nationwide.

-Vanna Figueroa
Photo: flicker

Poverty and income diversification The World Bank estimates that 78% of the world’s poor live in rural areas. Most individuals who reside in these areas depend on farming and agriculture not only for sustenance, but also for household income. There is consequently a correlation between poverty and having one, dominating occupation. Yet according to researchers, there seems to be a solution to this relationship through increased income diversification.

Farming

There is an issue of volatility that is inherent in farming. Variability in conditions can adversely affect crop yield, which ultimately impacts the income received by farmers. According to Farm Europe, competition can also be problematic. If all the poor in a given region take up farming as a means of earning income, then at some point, the supply outweighs the demand. When that happens, either crop prices will either decrease or crops will waste away in storage. This effect is further amplified when governments are unable or unwilling to offer adequate compensation for farmers’ excess crops.

Even in the United States, abundant in resources and well-developed in agricultural techniques, farming is a constantly changing industry. The USDA reports a wide fluctuation in income earned by a typical commercial farmer between 2000 and 2014. As a result, there is a need for income diversity worldwide, and this is particularly illustrated by some of the success stories in impoverished countries.

Vietnam

Since the 1990s, Vietnam has experienced high rates of economic growth. Researchers with the IFPRI (International Food Policy Research Institute) assert this is due in large part to income diversification.

Vietnam’s highest concentration of poverty is located in the Northern Hills. An analysis of the region suggested that those able to earn income by way of agricultural production, as well as non-farming activities, experienced the highest spike in their earnings over time. However, where does that leave those solely reliant on farming?

Residents limited to farming only managed to earn a living by applying the principle of diversification to their crops. They deviated from the typical crop grown, rice, and added cash crops, like coffee and tea, to their output. The cash crops yielded a much higher profit per unit of sale and required less land, labor and resources to grow and maintain. Even so, their spike in income did not match that of those who participated in both farming and non-farming activities. Nonetheless, the practice of diversification provided a much more stable source of income overall.

Niger

Niger currently ranks as the fifth most impoverished country in the world, and it is actively striving to end its poverty issue. People are seeing positive results attributed to the dynamic between poverty and income diversification.

A study conducted on over 600 smallholder rice farming families in Niger revealed that those who also participated in non-farming wage employment were better off than those who strictly farmed or were self-employed in some capacity related to farming. An important effect of a second stream of income was the ability to maintain the size of a given farm. The ancillary job could generate enough profit during a poor season to cover overhead costs for the following season.

Conclusion

The relationship between poverty and income diversification has become a central focus for policymakers across the globe. It is an effective way for individuals to mitigate the impacts of poverty. Empowering impoverished families to earn steady income can solve many issues embedded in poverty. If a family can individually afford food and water, they can pay to keep their lights on or go for a visit to a doctor. Moreover, the idea of attaining an education or further developing their current form of income becomes a realistic possibility. Diversifying income creates a pathway to not only sustaining livelihoods, but lays the groundwork for prosperity.

Christian Montemayor
Photo: Flickr

floods in southeast asiaTraditionally, the people of Southeast Asia benefitted from small floods that enriched the soil and prevented bigger floods. However, human interference with the rivers has disrupted their natural ecological processes and increased long-term damage. The disruption of crops, destruction of land and the displacement of people due to flooding increases poverty, especially during Southeast Asia’s current economic crisis. Mitigating steps are necessary to prevent the harmful effects of floods in Southeast Asia.

Destructive Floods in Vietnam

In October 2020, heavy rains in Vietnam caused massive flooding that destroyed homes, land and agriculture. A massive 178,000 homes were destroyed and nearly 700,000 livestock fell victim to the floodwaters.

Described by the president of the Vietnam Red Cross Society as “some of the worst we’ve seen in decades”, the floods in Vietnam have affected around five million Vietnamese people, which will push more people toward poverty.

Urban Flooding in Cambodia

In Cambodia, cities such as Phnom Penh suffer from the effects of urban flooding. Urban flooding is unpredictable and has wide-ranging consequences, from the disruption of everyday life to the spreading of waterborne diseases. As is commonly associated with climate change, the poor are hurt the most by urban flooding, for their ability to prepare and recover from damages is significantly weaker than other classes.

Roughly 250,000 people living in Phnom Penh are living in informal settlements and deal with inadequate waste management and infrastructure. Stagnant bacteria-ridden water from floods can linger for eight months after floods, spreading a host of waterborne diseases to those in proximity. Furthermore, as the economy is projected to decrease by 4% in 2020 due to the COVID-19 pandemic, poor people are increasingly likely to be trapped in cyclical poverty.

COVID-19 Stalls Decades of Growth

Despite decades of deadly civil war, Cambodia has made consistent progress towards reducing poverty before COVID-19. Over the past two decades, life expectancy has increased 10 years, poverty has been reduced from 47% to 13%, and growth in the country averaged out to 8%.  Additionally, the country lowered infant mortality rates from 10% to 2%.

While Cambodia’s COVID-19 cases are very low, with zero deaths thus far, the contraction of the global economic market has led to financial struggles for its citizens. The poverty rate is expected to balloon back up to 20% as a result of the economic crisis. The sectors hit hardest include the tourism and garment industries, where demand from its Western consumer base has drastically fallen.

Measures Against Floods in Southeast Asia

Although the nature of monsoons is unpredictable, the extent of the damage and destruction of floods can be mitigated. One recommendation is for Southeast Asian nations to commit to curbing emissions in order to combat climate change, which can increase the volatility of weather. Climate change reduces the ability for scientists to estimate long-term trends and build dams to control flood levels.

Additionally, the concept of leaving room for the river has become popular. This concept essentially promotes soft engineering, or removing human technology from rivers and allowing their ecological processes to be carried out naturally. Furthermore, allowing and managing small floods can benefit the land and those cultivating it while preventing big floods.

Though natural disasters cannot be controlled, efforts from organizations and governments may help the country’s resilience in the aftermath of floods in Southeast Asia. Such efforts can provide instant relief to affected people and may also help to alleviate overall poverty in the countries.

– Adrian Rufo
Photo: Flickr

Billions to Charities
It is no surprise that Forbes named Charles “Chuck” Feeney the James Bond of Philanthropy. After 38 years, Feeney achieved his lifetime goal: giving away all his $8 billion amassed wealth to charity and being alive to see its impact. When someone donates billions to charities, the impact should be substantial.

Charles “Chuck” Feeney

Chuck Feeney amassed his wealth from establishing a franchise of stores within thousands of airports known as the Duty-Free Shoppers Group. He also launched the General Atlantic, an American growth equity firm. Yet, the man, with this immense fortune lives in a rented San Francisco apartment. Moreover, he has even been found riding public transit. Feeney has credited his life philosophy to the Andrew Carnegie essay, “The Gospel of Wealth.” The essay declares that the millionaire’s sole duty is to give back to the poor. As Feeney donates billions to charities, he certainly obliges. Carnegie’s influence is extremely apparent within Feeney’s life. His coined phrase and mantra in life, “Giving While Living,” is essentially saying that you should give all you can to charity now rather than later. This, which closely resembles the messages behind The Gospel of Wealth.

Atlantic Philanthropies

In the early ’80s, the Duty -Free Shoppers franchise was at its peak. This is when Feeney decided to be the one who donates billions to charities. Without anyone’s knowledge, he secretly handed over all his shares and formed his new foundation, the Atlantic Philanthropies. Since 1982, the Atlantic Philanthropies has focused on issues of health, social and public policy throughout Australia, Bermuda, Ireland, South Africa, the U.S. and Vietnam. Within these countries, the foundation has addressed many important issues. Among them include facilitating the peace process in Northern Ireland, reducing the number of children without health insurance in the U.S., providing millions with HIV/AIDS medication in South Africa and helping modernize Vietnam’s health care system. While the foundation has officially dissolved recently, Feeney has one last message to relay: “To those wondering about Giving While Living: try it, you’ll like it.”

3 Countries Impacted

  1. South Africa: In the early years after Apartheid, Atlantic Philanthropies saw the opportunity to help advance South African society from its previous suppression. During the ’90s, the foundation assisted young black South African attorneys in getting their law degrees. In the 2000s, Atlantic made funds to advance nursing and health services. By the end of 2016, Atlantic Philanthropies had totaled $442 million in investments toward building democratic institutions and organizations. Overall, the foundation brought 2 million South Africans access to HIV medication. Also, it convinced the government to pledge $1 billion toward school improvements. Finally, it increased the number of nurses between 2005 and 2013 by 44%.
  2. Vietnam: The Atlantic Philanthropies have invested $381.5 million towards improving Vietnam’s public health system and renewing old libraries and universities. With Feeney’s contribution of billions to charities, Vietnam modernized its healthcare system, resulting in 9 million citizens receiving better and improved treatment. Further, the foundation focused on efforts that advocated for healthier behaviors. These included the widespread anti-smoking campaign and the passed mandate that forced motorcyclists to wear helmets. Also, in the education sector, Atlantic Philanthropies improved Vietnamese university libraries.
  3. Cuba: In the early 2000s, Cuba’s healthcare, although seen as one of the best worldwide, was suffering from a lack of resources. This, in turn, sparked the Atlantic’s activism. Overall, the foundation invested $66 million into organizations that work toward improving the care and treatment of Cubans. Moreover, these bodies spread knowledge about Cuba’s effective public health practices in nations with impoverished communities.

An Inspiring Message

Feeney’s extreme display of generosity via contributions of billions to various charities has inspired many notable philanthropists and entrepreneurs to do their part to help the less fortunate. An example of wealthy business moguls following in Feeney’s footsteps is the “Giving Pledge.” Warren Buffet and Bill Gates launched the Giving Pledge in 2010 as a campaign that seeks to persuade wealthy figures across the world to donate close to half of their wealth before they die.

Maya Falach
Photo: Flickr

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

positive covid-19 storiesThe COVID-19 pandemic has undoubtedly changed the world. While many countries have been devastated, three countries have positive COVID-19 stories: New Zealand, Thailand and Vietnam. Here are their positive COVID-19 stories and the lessons they learned from their experiences.

New Zealand

The pacific island nation of around 5 million people had a couple of different strategies in its response to COVID-19. In particular, unity within New Zealand and the nation’s neighboring countries played a big role in the country’s success against the virus. New Zealand offered to help its neighboring countries to prepare for the pandemic. To do so, the country offered health training and made sure that its island neighbors had supplies to fight the virus. Importantly, this unity in New Zealand bridged across political party lines when needed. This resulted in a massive stimulus package passed just weeks after the country’s first case. The stimulus totaled NZ$12.1 billion, around 4% of the country’s GDP. Included in the stimulus package is support for businesses, support for testing and health services and payments to those who couldn’t work because of the virus.

Caution also plays a big part in New Zealand’s success against the virus. The first case of the virus was detected on 28 Feb. 2020. Even before that, however, the government took measures to limit the possible damage of COVID-19. When New Zealand only had 283 cases, the government ordered all non-essential workers to work from home to limit the virus’s spread.

Moreover, the government came up with a four-level alert system to help people know how the virus is spreading. Level one means the disease is contained in New Zealand and level four means community transmission is happening and the disease is not contained. Given how much time the country has spent in the lower levels, its represents one of many positive COVID-19 stories that the whole world can learn from.

Thailand

Thailand is one of the countries that have positive COVID-19 stories. The Asian country of almost 70 million people was designated a success by the WHO. The economy of Thailand is one that is heavily built on tourism, with one-fifth of GDP coming from the tourist sector. However, since the virus has spread, the government of Thailand has had to make economic sacrifices to protect public health. The country had to close its borders to certain travelers, including many Chinese provinces. In addition, Thailand postponed many sporting events and held them without fans to slow the spread of the virus. In particular, Bangkok was in a partial lockdown with only essential services remaining open. Slowing down activity does hurt the economy, but it eases the blow of the virus.

Thailand has also mobilized more than 1 million health volunteers to help respond to the virus. In addition, the government’s health officials have taken the side of precaution throughout the pandemic. This includes rigorous hygiene and wearing face masks at all times. Moreover, Thai people have generally followed the advice of medical professionals, which has contributed to the Thailand’s COVID-19 success story. The Thai government also has one centralized administration, which helped with communication and organization throughout the pandemic.

Vietnam

Vietnam is also among countries with positive COVID-19 stories. Vietnam’s actions to deal with the virus came early and were aggressive, taking place before the virus even entered the country. This early and decisive action is one of the measures that helped Vietnam early on and controlled the virus’s spread. In early January 2020, Vietnam was already preparing for drastic action before there was a recorded case in the country.

Vietnam enacted travel restrictions, closed schools and enacted a rigorous contact and tracing system, while also canceling public events. Governmental communication was upfront and transparent. Consequently, this helped with public compliance to slow the virus outbreak. Vietnam has been one of the best countries in regard to wearing a face mask, which helps slow the spread of the virus. A coordinated media effort throughout Vietnam has also helped the public and government be on the same page in response to the virus.

Another reason Vietnam has been successful in limiting the spread of COVID-19 is its testing. The country tests everyone in quarantine whether they have symptoms or not. This helps slow the spread of the virus, because not everyone who is infected shows symptoms. As a result, younger people who may be infected but don’t have symptoms don’t infect those who may be at higher risk of death to COVID-19. While there was no nationwide lockdown, Vietnam did impose containment on certain areas to reduce the spread of the virus. In February 2020, when a small handful of cases were in the area of Son Loi, the government sealed off the area to prevent the spread of the virus.

What We Can Learn from These Countries

These three countries show positive COVID-19 stories despite a situation that has turned negative in so many countries. A few similarities have emerged between the countries and their success. One is the unity between government and people, which is important to building communication and trust. When citizens trust their government and can easily access clear guidelines, they are more likely to comply with health measures to reduce the spread of the virus. Another similarity between these countries is that it’s better to be cautious rather than reckless. This helps to slow the spread of the virus and make it easier to track. With all the hardship and destruction brought on by COVID-19, these countries with positive COVID-19 stories show how to keep as many people as safe as possible.

Zachary Laird
Photo: Pexels

Vietnam's COVID-19 response
COVID-19 has presented the world with new problems, set against the backdrop of a globalized economy. Some nations have opted for strict shutdowns, while others have taken a more gradual approach via staged lockdowns. Regardless of the initial steps taken, nations have seen astronomical numbers of new coronavirus infections. Some nations have been able to control outbreaks better than others. Vietnam’s COVID-19 response won praise from the World Health Organization for its swift implementation and effectiveness. Regardless of a relatively low GDP and proximity to China, Vietnam was able to keep COVID-19 cases below 300 while other nations surged in April 2020.

Early Response

After nations throughout Southeast Asia and other locations around the world began reporting cases, Vietnam’s COVID-19 response (initially) was to issue a nation-wide address to quell the spread. These regulations, though extensive, were quite effective. Vietnam fell victim to both the SARS outbreak of 2003 and the H1N1 outbreak in 2009. These experiences meant the government was on high alert, as soon as reports began to trickle out of Wuhan, China in January 2020.

Part of their methodology included banning all flights, either domestic or international. This helped to reduce travel between nations as well as between different areas of Vietnam. Additionally, the government has placed more than 44,000 people in quarantine camps. Also, Vietnam’s COVID-19 response included widespread economic shutdowns to decrease person-to-person contact. While these measures were effective in reducing the number of cases, it has taken an economic toll on the markets around Vietnam.

Complications

The nation overall is well below the world’s average GDP, coming in at $261 per capita. This indicates that the Vietnamese economy will be less flexible when placed under economic stress. While these widespread restrictions and quarantines are effective at limiting exposure to the virus — economic ramifications accompany them as well. According to the Vietnamese Labor Ministry, 7.8 million people have been left unemployed as a result of the pandemic.

Amid economic pressure, the government and people are coming together to help move past these hard times. NPR reports that some entrepreneurs within cities have established “rice ATMs” to ensure that all people can access food, regardless of income. In addition to an economic toll, a second wave of the virus is also threatening the Vietnamese people. Since the initial outbreak of COVID-19 in March — Vietnam was able to avoid community spread through the early measures it took. In mid-July 2020, the nation still has no evidence of community transmission. However, in late July 2020, more cases began cropping up to bring the nation’s case count up to 867 cases. This represents an increase of more than 600 cases and the nation’s first 10 COVID-19 deaths accompanying them.

These cases are a warning to the nation about how easy the virus spreads. Regardless, the nation is responding swiftly and responsibly as 80,000 visitors have already flown out of Danang as the city shut down once again to prevent more infections.

The Takeaway

The Vietnamese COVID-19 response began with strong policies to protect its citizens against COVID-19. Though these restrictions posed economic challenges, the nation was able to shelter those who posed a risk in reportedly well-maintained and staffed quarantine camps while other citizens worked to ensure those who faced lay-offs were still able to feed themselves and their families. The spike in cases is indicative that the pandemic, though controlled, is not over.

Allison Moss
Photo: Flickr

us and vietnam relations
The U.S. and Vietnam relations have experienced many changes over time. In 1995, the two nations normalized the alliance and since then, the partnership has become stronger. In June of 2020, Florida representative Ted Yoho introduced a resolution to the House, H. Res. 1018, to recognize the 25 years of normalized relations between the nations. It reaffirms the relationship and expresses a desire for the U.S. to continue its successful partnership with Vietnam.

The U.S. and Vietnam have established strong economic relations during these 25 years as the U.S. has advocated for economic growth within the country. In 2000, for instance, the nations agreed on a bilateral trade agreement that benefits both nations. Also, in recent years, U.S. investment has spiked in Vietnam. Throughout the nations’ partnership, Vietnam has become a growing economic power with an unemployment rate of only 2.2% in 2017. Furthermore, just 8% of its population lives below the poverty line. As noted in the resolution, the U.S. encourages Vietnam’s continued growth in leadership, stability and prosperity.

House Resolution 1018

On June 24, 2020, Representative Yoho introduced H. Res. 1018 to the U.S. House of Representatives. Less than a month later, the resolution moved to the Foreign Affairs Committee before going to the Subcommittee on Asia, the Pacific and Nonproliferation.

A Congressional resolution is different from a Congressional bill as it holds no legal obligation. Rather, it is a reflection on the widespread attitude of one of the Congressional institutions. House Resolution 1018 marks 25 years of normalized U.S. and Vietnam relations, celebrates the success that occurred during those years and looks forward to future relations.

More specifically, through H. Res. 1018, the U.S. encourages Vietnam’s decision to take on more global leadership in the U.N. Security Council and the Association of Southeast Asian Nations. It also encourages and celebrates the stability of the nation, reaffirming the importance of U.S. and Vietnam relations. The stability of Vietnam is beneficial for the U.S. because it lowers concerns over national security and allows for a complete sense of closure around the Vietnam War as the U.S. accounts for its military.

US and Vietnam Relations Moving Forward

In the future, the nations look to continue their normalized relations because it is a mutually beneficial partnership. As noted in the resolution, the U.S. aims to spread its values to Vietnam, continuing its “strong support for human rights and democratic values.” As these are major values of the U.S. government, it is helpful for the nation to spread them to other countries. H. Res. 1018 puts a large emphasis on this area of U.S. and Vietnam relations — signaling that it will be a significant part of the nation’s relations moving forward.

According to the resolution, human rights and democratic values contribute to advances in poverty reduction. Moving forward, much of the focus on U.S. and Vietnam relations emphasizes economic conditions. For example, the U.S. previously gave humanitarian aid to Vietnam through the United States Agency for International Development (USAID). With the hope for increasing economic prosperity in the resolution, the nations are looking towards further reducing poverty through future reduction efforts.

House Resolution 1018 aims to continue the peaceful U.S. and Vietnam relations through expanding upon many of the nation’s established successes. This resolution motivates the Vietnam government to continue working with the U.S. to ensure economic success and stability.

Erica Burns
Photo: Flickr

Global MarketAfter ten years of negotiation, the European Union Vietnam Free Trade Agreement (EVFTA) came into action on August 1, 2020. The deal will reduce tariffs by 99% over the next 10 years and will provide relief from the economic drops caused by COVID-19. The market contains over 500 million individuals and is valued at 18 trillion USD. The trade relationship will enable Vietnam to compete in the global market better, especially against markets like Japan and South Korea. Currently, out of all of the countries in the Association of Southeast Asian Nations (ASEAN), Vietnam is the European Union’s (EU) second-largest trade partner behind Singapore. Compared to its regional rivals of Indonesia and Thailand, Vietnam has a stronger trade relationship and involvement in the global market.

Vietnam and the EU Ties

For exports, Vietnam relies on the EU as its largest partner. Vietnam’s exports to the EU are larger than any other ASEAN country. A World Bank study found that from 2001 to 2018, Vietnam’s exports to the EU have grown annually at an average rate of 16%, gaining it a trade surplus over the EU. According to the European Commission, these exports are mostly textiles and clothing, agriculture products like coffee, rice, seafood, electronic products, telephone sets and more.

As the agreement is implemented, both countries could see a rise in GDP and new job opportunities, amongst other positive effects. More immediately, Vietnam’s GDP will increase by 2.18-3.25%, said the Ministry of Planning and Investment. Unlike most countries, Vietnam will see positive economic growth this year – estimated to be up by 4.8%, according to a study by the World Bank. In 2030, Vietnam will see a 6.8% growth in its GDP.

Both countries will have large growths in their exports. The EU could see a $16.9 billion per year increase in exports by 2025. Vietnam is expected to increase exports by 42.7% in the first five years of the deal, mostly in farm produce, manufacturing and services. Additional domestic reforms by Vietnam could raise productivity and further increase GDP by 6.8% in the next 10 years.

Vietnam’s Participation in Global Value Chains

As Vietnam increases trade with other countries through agreements, it will become more involved in the global market. Further globalization will also push Vietnam to participate more in global value chains (GVCs), shifting away from the manufacturing market from China. The bilateral treaty signed between Vietnam and the EU will also ensure that electronics and electrical equipment (a large portion of current imports) comes to Vietnam exclusively from the EU.

Due to this shift, the EU has increased its foreign direct investment in Vietnam. The EU already was the largest foreign investor in Vietnam, with a total of 6.1 billion euros endowed as of 2017, mostly into processing and manufacturing. This investment will go towards new jobs and increased productivity by reducing the number of imports to Vietnam and shifting towards in-house production for higher gains.

To be eligible to avoid tariffs, Vietnamese products must not contain imports from other countries. In addition, agriculture must meet requirements for sanitation, meaning farmers will have to refine their growth system. The deal places especially tight regulations on the quality of agricultural and manufactured products shipped by Vietnam, pushing technological developments in order to avoid drops in efficiency.

Poverty Reduction

Over the past two decades, Vietnam has made steady progress in reducing extreme poverty. From 1992 to 2018, Vietnam’s GDP per capita increased by more than four times, pulling extreme poverty rates from 52.9% down to 2% of the population. EVFTA will continue this trend. A World Bank Study found that EVFTA is expected to reduce extreme poverty (less than $1.90 per day) by 0.1-0.8 million people by 2030, 0.7% more than the poverty-reduction rate without the agreement. Overall, this will amount to an 11.9% decrease. In addition, poverty at $3.20 per day is expected to reduce from 8% to 3.5%.

Vietnam has now broadened its poverty baseline from $1.90 to $5.50. From 2016 to 2030, developments caused by EVFTA will influence this poverty rate to drop from 29% to 12.6%, allowing Vietnam to achieve upper-middle-class status. In addition, the income gap between genders will be decreased by 0.15 percent. This difference affects low-income families the most, as they are traditionally involved in manual labor jobs where this is most prevalently seen.

This agreement will open up new territories for both the EU and Vietnam to expand into. Vietnam’s primarily agricultural economy might see large shifts into one of manufacturing and processing. This agreement is a stepping stone for Vietnam’s involvement in the global market, and it might be a sign of large changes to come.

Nitya Marimuthu
Photo: Pixabay

SDG Goal 3 in Vietnam During the U.N. Summit for 2015, world leaders decided on 17 goals that they would like to track around the world. These goals would help motivate changes for a better future and identify where these changes were most needed. Titled, the Sustainable Development Goals (SDGs) — these goals range from conserving and creating a sustainable industry in the ocean (SDG goal 14) to ending poverty in all forms (SDG goal 1). Moreover, the U.N. rates the status of a country and its ability to achieve a certain SDG by 2030. This article will provide a brief update on SDG goal 3 in Vietnam.

Vietnam, a country located in Southeast Asia, has achieved several of the goals. For instance, Vietnam has achieved the goals for quality education (SDG 4), responsible consumption and production (SDG 12) and climate action (SDG 13). One of the goals, however, the “Good Health and Well-Being” (SDG 3) has been rated as the furthest from achievement with the “major challenges remain” status.

SDG 3: A Deep Dive

The description of SDG 3 is simple but will require a great effort to achieve; “Ensure healthy lives and promote well-being for all at all ages.” Some of the sub-scores — specific statistics that have led Vietnam to the depleted state of wellness and well-being goal include the high incidences of tuberculosis, traffic deaths and the percentage of surviving infants who received two Word Health Organization recommended vaccines.

Some of the greatest identified challenges include the control of communicable diseases, such as the aforementioned tuberculosis score, creating healthcare equality and accessibility. These issues share a strong connection because some new policies that have improved the control of communicable diseases in one sector are not established in others.

Improvements to SDG 3

Though the scores may be an indicator of a national problem in Vietnam, they have led to great improvements. In response to the inaccessibility score, the health service delivery has improved greatly. For example, there has been an increase in investment for healthcare facilities that are accessible to all Vietnamese. Also, the ability of Vietnamese to pay for healthcare is increasing as the coverage from insurance rises. In 2017, 86.4 % of Vietnamese had health insurance. Moreover, the National Tuberculosis Control Programme helps identify those who need treatment. This has continued to reduce the incidence over the years.

Traffic accidents are another low score for SDG goal 3 in Vietnam — something unique to the country. Accidents, injuries and deaths are all counted into the well-being score for SDG 3 in Vietnam. While the number of incidences has decreased, an estimated 14,000 people continue to lose their lives due to traffic accidents each year. The National Traffic Safety Committee and WHO have started a road safety project that works on reducing the number of deaths and accidents. The initiative holds a large focus on motorcycle safety and the prevention of drinking while driving.

What is Currently Being Done?

The inequality and inaccessibility for healthcare and sources of well-being, such as nutritious and reliable sources of food are especially culpable concerning child mortality statistics. The national statistics show a hopeful decreasing trend but have revealed stunning discrepancies between ethnic and regional groups. Highlighting this — child mortality in some mountainous regions in the Northwest and Central Highlands are four times as high as the national average. To create a way in which all children can be treated equitably, the Sustainable Health Development Center (VietHealth) has developed many programs to help mobilize primary care, screenings and disability care.

Vietnam is currently facing several different challenges in reaching the SDGs for 2030. However, with the help of (among others) the National Tuberculosis Control Programme, the road safety programs and VietHealth, much progress can be made in the next decade. Vietnam and the U.N.’s SDGs have proved to be a valuable resource for highlighting severe issues and motivating organizations and governments to improve conditions for citizens around the world.

Jennifer Long
Photo: Flickr