Since the Vietnam War, the country faced severe poverty, with major upheavals leaving many people struggling until around 1990. Since then, however, it has taken significant steps to transform itself into a dynamic and developing nation rather than one defined by poverty. Three key approaches to reducing poverty from the late ’90s to the present are economic growth, agricultural development and poverty reduction programs.

Economic Growth

Economically, Vietnam has reduced poverty over the past decades through several key strategies, including the introduction of the Đổi Mới reforms and increased participation in international trade. Initiated to shift the country from a centrally planned system to a more market-oriented economy, these reforms allowed individuals to start businesses, supported agricultural workers and attracted foreign investment.

International trade expanded significantly not only because of the Đổi Mới reforms but also because Vietnam joined the World Trade Organization (WTO) in 2007. This move introduced new trading partners, including the U.S. and the European Union. It opened the door to new economic opportunities, advanced technology and business growth.

By transforming its economy in these ways, Vietnam created more financial opportunities and improved living conditions for its people. These changes helped many communities rise out of poverty and move toward a more stable and prosperous future.

Advancing Agriculture

Another way Vietnam has reduced poverty is by developing its agricultural sector. The government promoted household farming, which significantly increased productivity, created jobs and improved food distribution. These changes began with the Đổi Mới reforms and continued to expand in the years that followed. 

Vietnam transformed from an impoverished nation into one of the world’s leading rice exporters. As global demand for rice grew, incomes for agricultural workers increased. Access to personal land also made it easier for people to find work and earn a stable income, reducing barriers related to location and job availability.

Overall, the growth of agriculture played a major role in reducing poverty, with poverty declining by about 1–2% per year.

Poverty Reduction Programs in Vietnam

Vietnam has alleviated poverty by implementing various poverty reduction programs in recent years to prevent its recurrence. These include the National Target Program on Sustainable Poverty Reduction (2021–2025) and the National Targeted Program on New Rural Development (NTP-NRD).

Vietnam’s National Target Program on Sustainable Poverty Reduction focuses on reducing poverty among the poorest regions and ethnic minorities. The program aimed to halve the number of poor and near-poor households by 2025. It supports projects like infrastructure, livelihood programs, vocational training, housing and access to social services to improve living standards and reduce inequality.

The NTP-NRD is a program designed to modernize rural areas in Vietnam by improving education, healthcare, income and livelihoods, while also reducing poverty. It focuses on supporting communities that have not experienced significant economic progress over the past decade, particularly those in areas with limited access to resources and services. The program extends to more than 9,000 communes across all 63 provinces in the country.

Final Remarks

Over the past decade, Vietnam has made significant strides in improving living conditions, transforming from widespread poverty to a country admired for its progress. The nation has advanced across diverse sectors, including economic and agricultural development and the implementation of various social programs.

– Danielle Johnson

Danielle is based in Knoxville, TN, USA and focuses on Good News for The Borgen Project.

Photo: Flickr