Based on the swift drop in Vietnam’s poverty rate from 20.7% to 13.5% between 2010 and 2014, it is clear that conditions in the nation are improving. However, issues such as ethnic discrimination, a lacking education system, deteriorating infrastructure and a weak domestic private sector in the economy threaten its growth and stand as the remaining causes of poverty in Vietnam.
While statistics describing poverty throughout the Vietnamese population seem optimistic, they do not account for the fact that over half of the population among ethnic minorities continue to live below the poverty line of $2 a day. Individuals from ethnic minority backgrounds are continually isolated, geographically and socially. Their historically limited access to opportunities has created a cycle the country is working to break.
To address these inequalities, the government of Vietnam instituted a ministry known as CEMA (the Committee for Ethnic Minority and Mountainous Area Affairs) and is working to increase education and social opportunities for this population.
With Vietnam having emerged as a lower middle-income country in 2010, all eyes are turned to its economy. Historically, almost all of Vietnam’s production has been handled by its government, weakening its private sector. Even still, in 2016, it was ranked 98 out of 189 countries in the ease of doing business index. Experts from the World Bank argue that a richer domestic private sector could be the final push the country’s economy needs to eliminate poverty.
Failing infrastructure remains one of the large causes of poverty in Vietnam, and many other countries. Although immense efforts were made in the late nineties to bring electricity to its people, Vietnam’s infrastructure systems for energy, water, sanitation and telecommunication are far from where they need to be.
Without an efficient and reliable infrastructure, the private sector cannot grow, as individuals are unable to reach the marketplace. Furthermore, until the water system and roadways improve, education cannot flourish, as students are unable to attend school.
The country’s SEDS (Socio-Economic Development Strategy) for 2016-2020 acknowledges the biased education system, struggling market institutions and stagnant infrastructure development as causes of poverty in Vietnam and articulates the need to accelerate progress. This acknowledgment is a clear step forward in the nation’s fight against poverty.
– Emily Trosclair
Photo: Flickr
FAQs
The poor often lack production means and cultivated land. They have limited access to the state credit and often access through back credit with very high interest. The households often have many children but few laborers. The poor are disproportionately likely to be from an ethnic minority.
Is there a lot of poverty in Vietnam? ›
In 2022, the poverty rate in Vietnam was around 4.2 percent. In recent years, the rate of poverty has been decreasing steadily in the country thanks to economic progress and its positive impact on the living standards of the population.
How bad is poverty in Vietnam? ›
Vietnam poverty rate for 2020 was 18.70%, a 3.5% decline from 2018. Vietnam poverty rate for 2018 was 22.20%, a 4.9% decline from 2016. Vietnam poverty rate for 2016 was 27.10%, a 7.8% decline from 2014. Vietnam poverty rate for 2014 was 34.90%, a 5.8% decline from 2012.
What is the poverty reduction program in Vietnam? ›
The Government devised and implemented various National Targeted Programs (NTPs) to raise incomes, provide services and reduce deprivation in remote rural areas and regions inhabited by ethnic minority groups whose incomes and consumption have risen more slowly than other groups.
Was Vietnam poor after the war? ›
In addition to the physical damage to the people and the land, Vietnam also faced tough economic problems after the war. In the South, about four million people were unemployed.
What is the poverty rate of Vietnamese Americans? ›
In 2019, Pew Research Center published a study stating that 12% of Vietnamese Americans lived under the poverty line, which was higher than the average for all Asian Americans.
Does Vietnam have a homeless problem? ›
Vietnam experiences high levels of internal and net emigration, both for humanitarian and economic reasons, due to extreme weather and flooding (CIA Facebook, 2019). A Human Rights Watch survey from 2006 estimated there were 23,000 children who were homeless in the country (Guardian, 2016).
Is Vietnam a good or bad country? ›
Overall, Vietnam is considered a safe country for tourists. While it is always important to be cautious and aware of your surroundings, Vietnam is a wonderful destination that offers a wealth of cultural, scenic, and culinary experiences.
How bad is Vietnam's economy? ›
“ Vietnam experienced a strong post-pandemic economic recovery in 2022. GDP rose by a historically high 8 percent, driven by strong domestic and external demand. Average inflation was contained at 3.2 percent, although price pressures picked up steadily during the year.
What is the poorest city in Vietnam? ›
Meanwhile, the top ten provinces and cities with the highest poverty rates consist of Dien Bien with 34.5%, Son La 28.6%, Lai Chau 27.9%, Ha Giang 25%, Cao Bang 24.5%, Bac Kan 20.65%, Kon Tum 20.65%, Gia Lai 16.9%, Lao Cai 14.8%, and Yen Bai 14%.
In 2016, the income of the highest-income group was 9.8 times higher than that of the lowest-income group. in 2019 is 10.2. However, by 2020, due to the negative impact of the covid-19 epidemic and the effectiveness of social security policies for the poor and family, the low-income group will increase by 7.6%.
Why is Vietnam growing so fast? ›
So what is keeping Vietnam's economy humming along and its growth numbers positive? There are three key factors: infrastructure investment, its trade environment, and competitive wages.
What were the main causes of Vietnam? ›
There were a number of long-term and short-term reasons to explain why the USA became involved in Vietnam in the late 1950s.
- Reason one - Vietnamese independence.
- Reason two - Civil war.
- Reason three - The Domino Theory.
- Reason four - The weak South Vietnamese Government.
- Reason five - The Gulf of Tonkin Incident 1964.
There are four major causes for America's involvement in Southeast Asia. The four main causes of the Vietnam War were: 1) The power struggle between France and Ho Chi Minh, 2) The Domino Theory, 3) Cold War politics, and 4) The Gulf of Tonkin Incident 1964.
What are the things caused by poverty? ›
Hunger, malnutrition, and stunting
You might think that poverty causes hunger (and you would be right!). But hunger is also a cause — and maintainer — of poverty. If a person doesn't get enough food, they'll lack the strength and energy needed to work.
What causes poverty in war? ›
3 Things to Know About How War Fuels Poverty
War disrupts food systems by undermining food production, causing rapid inflation of food prices, and preventing people from earning money to buy food. War destroys key infrastructure that supports daily life, from water systems to energy centers to hospitals.
