Poverty in Vietnam declined substantially between 2010 and 2020 (Photo: VNA) The WB’s Poverty and Equity report, “From the LastMile to the Next Mile”, says that over the past decade, the poverty rate at thebank’s 3.20 USD per day line for lower-middle income countries declined from16.8 percent to 5 percent, meaning ten million people were lifted out ofpoverty.
It assesses Vietnam’s progress in poverty reductionover the decade to 2020 and examines what is needed to sustain the upwardeconomic mobility and economic security of the millions who have left poverty.
In less than half a century since the end of the warand 35 years since the Doi Moi reforms, Vietnam has become a vibrant economyand a sought-after market to the outside world. GDP per capita (2015 US dollar)grew from 481 USD in 1986 to 2,655 USD in 2020, according to the report.
Rapid economic growth was broadly inclusive, and livelihoodsin Vietnam improved dramatically. Based on the World Bank’s Lower-Middle IncomeClass (3.20 USD/day 2011PPP) poverty line, poverty rates declined from 16.8percent in 2010 to 5.0 percent in 2020. According to preliminary estimates for2019, 5.7 percent of Vietnamese are considered multidimensionally poor.
Growth over the last decade in Vietnam was broadlyinclusive, as welfare improved across the entire economic distribution ofhouseholds. Pathways out of poverty were widespread across most groups, as manyfamilies moved out of poverty within a single generation.
At the same time, Vietnam is a lower-middle-incomecountry facing a challenging and uncharted road ahead to reaching upper-middleand high-income country levels in a shifting global economic and climaticlandscape.
Despite remarkable progress,poverty remains a key concern among the population. In a survey of citizens,from 2015 to 2020 poverty/hunger was selected as the main issue that the governmentmust tackle. When asked why poverty was the main concern, while many peopleworried about falling back into poverty, even more felt that poverty is anoverall drag on the economy and reduces national prestige.
To uphold the achievements and address challengesahead, the WB has offered a number of recommendations to Vietnam.
Illustrative image (Source: VNA) Access to new knowledge and innovations, including applicationof appropriate digital technologies, would support productivity growth bysubstituting for labour intensity.
To improve the participation of ethnic minorities inthe labour market, laws protecting the rights of ethnic minorities can befurther strengthened./.
VNA
