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HANOI UNIVERSITY

INTERNATIONAL STUDIES FALCUTY


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UNDERSTANDING ABOUT POVERTY


ALLEVIATION POLICY IN VIETNAM

Lecturer: Assoc. Prof. Dr Do Phu Hai


Course: Sping2022_IPP01
Hanoi, April 29, 2022

Students Class Student ID


Nguyễn Linh Chi 1Q19 1906080032
Nguyễn Thị Sông Hương 5Q-20 2006080049
Nguyễn Thị Hoa 2Q-19 1906080051
Lê Hà Phương 5Q-20 2006080101
Phạm Việt Sơn 5Q-20 2006080112

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TABLE OF CONTENT

ABSTRACT ........................................................................................ 3

1. Introduction .................................................................................. 1
2. Chapter 1: Policy problems ......................................................... 5
3. Chapter 2: Policy Objective & Solutions ...................................... 8
1. Policy objectives to poverty alleviation ………………...9
2. Policy solutions to reduce destitution in Vietnam..…….9
4. Chapter 3: Policy instruments .................................................... 13
5. Chapter 4: Policy actors .............................................................. 17
6. Chapter 5: Policy Implementation ............................................. 21
7. Chapter 6: Policy evaluation ....................................................... 22
8. Conclusion: ................................................................................... 26
REFERENCES……………………………………………………..27

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ABSTRACT
Fling back to the time, Vietnam was among the poorest countries in the world due to the
exploitation through colonialism and many wars . Even after the remarkable narrative
of national reunion, Vietnam still experienced a bleak period since the government was
struggling with finding a silver lining for reorienting and recovering after decades of
wars. Comprehensive economic changes as well as the guidelines and effective policies
by Vietnam governments, on the other hand, were initiated in the second half of the 1980s
by Doi Moi and have intensified throughout the subsequent two decades. The reform
process has resulted in the economy being liberalized both domestically and externally,
cutting remarkably the number of people living in extreme poverty. This research will
predominantly focus on analyzing the public policy regarding poverty alleviation enacted
by the Vietnamese governments, with the aim of evaluating what is the decisive
determinant that has helped Vietnam, from among the poorest countries, become affluent
with high economic growth at this time, as well as identifying some solutions to emerging
challenges in terms of poverty reduction.

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INTRODUCTION
The remarkable progress in poverty reduction in Vietnam
Until the early twentieth century, the majority of the Vietnamese population was impoverished.
However, the predicament may improve drastically of a series of industry reforms initiated by
the Vietnamese government in the late 1980s, beginning with the economic transformation - Doi
Moi Reform in 1986, which provided the necessary incentives for increased farm production and
export orientation.Furthermore, the advent of external liberalization has been accelerated at all
levels—unilateral, bilateral, regional, and multilateral—over the last two decades, allowing
Vietnam to participate in regional trade agreements, namely the Association of Southeast Asian
Nations (ASEAN) in 1995, officially acceded to the World Trade Organization (WTO) in 2007...
has emerged as a key determinant of economic development. According to Climbing the Ladder:
Poverty Reduction and Shared Prosperity in Vietnam, released in 2018 by the World Bank, the
poverty headcount rate fell from 20.8 percent in 2010 to 9.8 percent in 2016

Figure 1: Poverty Rates based on National & International Poverty Lines, 2010-16

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CHAPTER 1: POLICY PROBLEMS
Poverty Alleviation in Vietnam: “Well-Begun, Not yet done”

Over the previous two decades, Vietnam has


made great progress in decreasing poverty
and fostering wealth. However, the goal of
poverty reduction is not yet complete: shared
growth, ethnic minority poverty, increased
vulnerability, and rising inequality are the
primary poverty issues for the future. The task
of reducing poverty may be finished in terms
of meeting the most basic food, shelter, and
clothing needs of most Vietnamese
citizens.These criteria, however, are no longer appropriate as the quality of living has changed
in a quickly rising, modernizing economy. This might be one of the leading causes to the
conundrum: poverty is still mainly concentrated in mountainous areas, with a high rate. While
overall poverty levels drop remarkably , ethnic minority groups have experienced a much slower
pace of poverty reduction compared to the majority of Viet Nam’s population. According to
statistics, The Midlands and Northern Mountains and the Central Highlands regions comprise 20
percent of Vietnam’s total population, yet these areas were home to 56 percent of the poor
population. While figures detailing poverty in the Vietnamese population appear to be hopeful,
they fail to account for the reality that more than half of the population, particularly ethnic
minorities, continues to live below the poverty level of $2 per day. Individuals from ethnic
minority backgrounds are constantly geographically and socially separated.

In order to set out effective resolutions to poverty among ethnic minorities and rural areas as well,
finding out the roots plays a pivotal role. The study has synthesized and categorised four key
causes of poverty that persist in ethnic minority populations based on an objective assessment
and review of the phenomenon: lack of access to education, lack of access to healthcare services,
lack of access to basic living conditions and lastly, lack of access to social protection.
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First and foremost, lack of access to education is regarded as one of the primary reasons of
destitution among ethnic minorities. The link between poverty and educational attainment in
Vietnam has always been inverse, with no signs of change over time. More than 20 years ago,
households with heads who had completed primary school or less made up more than half of the
total poor population. This situation has improved in recent years as a result of increased efforts
to eradicate poverty and, as a result, improve education for all, but the situation of children not
being able to go to school continues. By virtue of geographical constraints, students are unable
to overcome the challenges of being away from home and drop out after completing primary or
secondary school. Living in extreme poverty also forces children to work with their parents, in
order to make ends meet. Furthermore, various challenges exist in raising indigenous peoples'
knowledge and intellectual level about the need of education. Lastly, social policies in some areas
of country still prioritize permanent residents, making it difficult for immigrant children to enroll
in regular and public schools since they are not exempted from paying tuition.

Another factor leading to penury is lack of healthcare services among ethnic groups. The
government has made efforts to improve access to health care for low-income people, ethnic
minorities, and children, but these groups continue to face numerous barriers in obtaining and
using medical care. According to “Thực trạng sử dụng dịch vụ y tế của một số nhóm dân cư và
các rào cản trong tiếp cận dịch vụ y tế”, published in Journal of Practical Medicine by the
Ministry of Public Health in 2013, the study's findings show that a number of barriers prevent
the poor and children from accessing and using health services, namely geographical barriers,
financial barriers based on economic conditions, socio-cultural barriers, and service provider.
Another cause that prevents the poor and ethnic minorities from accessing health care is
affordability. In both urban and rural areas, economic hardship has always been the leading cause
of untreated poor people. Poor people's access to health care is hampered by financial factors
such as direct out-of-pocket payments or inability to pay. A shortage of healthcare professionals,
equipment, and pharmaceuticals, as well as specialized information to assist therapeutic activities,
is another difficulty for healthcare providers. These concerns have a considerable impact on
health-care activities, especially for vulnerable groups such as mothers and children.
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Thirdly is the shortcomings in providing the basic living conditions to the local inhabitants in
isolated areas and disadvantaged region. The study results showed that the overall prevalence of
ethnic minority households who had access to improved water sources only was 64.6%, to
improved sanitation only was 61%, and to both improved water sources and sanitation was 43% .
All these figures indicated that even 4 years after the National Target Program for Rural Water
and Sanitation ended, the ethnic communities still had lower access to improved water sources
and improved sanitation than expected. This imposes significant health risks to this vulnerable
group due to poor water and sanitation.

Figure 2: The rates of improved drinking water and sanitation in various areas of Vietnam

Finally, in terms of social protection, there are a few poor households that live below the poverty
line and are not covered by the government's social security program. Only slightly more than
half of poor households are formally covered by the social safety net, and the allowance is
insufficient to get by. As a result, households are extremely risk averse. They are not entitled to
many social security or employment benefits such as health insurance and pensions. Welfare of

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many migrants is very poor. They can hardly access the official welfare system as well as the
basic public services in the urban areas such as health and education.

CHAPTER 2: POLICY OBJECTIVES AND POLICY SOLUTIONS


I. Policy objectives to poverty alleviation
Taking effort to minimize the rate of poverty among ethnic minorities and disadvantaged regions,
the Vietnamese government has established various policy objectives, which are categorized into
two main sections: Overall agendas and Detailed goals.
1. Overall agendas:
In terms of the overall direction of Vietnam's multidimensional poverty reduction policy, the
government has established two key objectives. In order to improve and gradually raise the living
conditions of the poor in a sustainable way, first of all in mountainous areas and ethnic minority
areas; to create strong and comprehensive changes in poor areas, narrowing the gap between
regions, regions, ethnic groups, etc., creating conditions for the poor to rise out of poverty.
Secondly, implement sustainable poverty reduction, limit falling back into poverty, contribute to
economic growth, ensure social security, improve material and spiritual life, increase the income
of the poor.
2. Detailed goals:
Facing with numerous problems in reducing poverty among ethnic minority communities in
particular and the country as a whole, the government has announced a number of specific policy
initiatives. Firstly is improving and gradually raise the living conditions of the poor in a
sustainable way, especially in mountainous areas and ethnic minority areas; Create strong and
comprehensive changes in poor areas; narrow the gap between urban and rural areas. Second,
implement sustainable poverty reduction, limit re-poverty; contribute to economic growth,
ensure social security, improve material and spiritual life, and increase the income of the poor.
With the aim of achieving National Target Program for Sustainable Poverty Reduction (2021-
2025), the government has set out the following main content/activities: (i) improve critical
infrastructure to serve production and people’s livelihoods in rural areas (ii) support for product
development, -livelihoods diversification, and upscaling of poverty reduction models, (iii)
support for workers of poor, near-poor and ethnic minority households long-term work (iv)
communications and poverty reduction information and (v) improvements to capacity,
monitoring, and evaluation of the program’s implementation.
The program sets a specific target for the percentage of poor households according to the
"multidimensional poverty" standard to be maintained at 1%-1.5%/year; the rate of poor
households of ethnic minorities decreased by over 3%/year; 30% of poor districts, 30% of
extremely difficult communes in the lowlands, coastal areas and islands have escaped poverty,
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especially difficult situations. The goal is to strive to reduce the number of poor and near-poor
households by 50% by 2025 compared with the beginning of the period according to the national
multidimensional poverty line.
II. Policy solutions to reduce destitution in Vietnam
As previously stated, there are four major reasons of poverty that persist and have far-
reaching consequences for ethnic minorities as well as people living in isolated and
circumscribed places. geographically. In this section, the study aims to discuss four major
solutions that may be adopted to eradicate hunger and alleviate poverty, which correspond to
the four causes mentioned above.
1. Increase investment resources that meet the most basic needs.
a. Housing support:
Principally, the governments as well as local authorities has conntinued to implement housing
support policies for poor households in rural and mountainous areas to improve housing,
giving priority to poor households.
b. Health and nutrition support:
Effectively implementing the policy of granting health insurance cards to the poor, supporting
the purchase of health insurance cards for people from near-poor households; paying special
attention to women and children such as building nutrition programs for children, taking care
of reproductive health for women are all considered as suitable resolutions to reduce penury
for inhabitants who live in disadvantaged regions. Moreover, the government should have
and enact adequate policies to encourage doctors to work in special difficulties areas like
ethnic minorities. Supporting the poor to enjoy culture, information, and legal aid services is
also significant, namely well organize the program to bring culture and information to the
grassroots; diversify communication activities, help the poor access poverty reduction
policies, popularize effective poverty reduction models, and model poverty exits.
c. Improve the quality of education:
Practice shows that the cause of poverty is not only due to the environment and geographical
conditions but also to the circumstances and characteristics of individuals and households, in
which the key is knowledge. Therefore, it is necessary to develop a program "Eliminate
knowledge poverty for poor ethnic minorities". Implement universalization of lower

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secondary education for 100% of children. Applying free 9-year compulsory education for
poor students, free textbooks and notebooks, monthly rice allowance, and free tuition. It will
be much more effective when the education level and cognitive thinking of children are raised,
they will work with the community to change the thinking of adults who are grandparents and
parents.

2. Solutions to support livelihoods, vocational training, job creation, labor export to


increase incomes for the poor.
It’s essential for the authorities to support the ethnic poor to know how to get out of poverty
by themselves and avoid falling back into poverty when facing risks, such as direct material
support in unexpected risks due to natural disasters, epidemics..., partial support helping the
poor to participate in economic activities: plant varieties, animal breeds, materials, fertilizers,
pesticides... along with material support on the basis of guiding the poor to produce according
to their conditions family.
Arrange grassroots agricultural extension staff to help people apply scientific and technical
advances and select appropriate plant varieties, animals and production models. Step by step
guide the poor to produce concentrated goods and access the market to have high-value
products in the market.
Regularly survey vocational training needs for training direction. Linking vocational training
schools and enterprises with the function of labor export to form a chain of "survey-training
and export". Doing this is a huge push to change the practice and thinking of the ethnic
minorities here.

3. Gender equality and promoting the role of women in household economic


development, hunger eradication, and poverty reduction.
Derived from the characteristics of gender division of labor (burden of housework, child care,
barriers to the ability to use common languages , and other prejudices). Therefore, women
choose to be associated with agricultural production at the household level. Although they
are the main subjects participating in product development models and replicating poverty
reduction models, in reality, ethnic minority women have not yet promoted their role in
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deciding on livelihood options as well as using income from livelihoods. The reason is the
lack of concretization into specific mechanisms in the Program The National Target for
Sustainable Poverty Reduction in the 2016-2020 period so it's difficult to organize in practice
and easy to overlook.

4. Promote propaganda on poverty reduction, and strictly handle cases of policy


profiteering and law violations.
It falls within the government’s scope of responsibilities to ưenovate the content of
information, and propaganda, ensuring practicality and effectiveness so that people can
clearly understand the purpose, meaning and believe in implementing the poverty reduction
policy; arousing the tradition of solidarity and mutual help in the community to support the
poor to lift themselves out of poverty sustainably. strictly sanction acts of profiteering from
the poverty reduction policy, chasing achievements, in order to be rewarded, but complaining
of difficulty and suffering.

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CHAPTER 3: POLICY INSTRUMENTS
Policy instruments are the tactics employed by governing authorities (either government or
public) to support specific policies in order to attain a stated set of goals. Supportive instruments,
economic instruments, direct government's action instruments, and legal instruments are the four
primary kinds of policy instruments mentioned in the Introduction to Public Policy. Each
instrument contributes to the achievement of national policy objectives.

1. Supportive instrument
There have been supportive or advocacy instruments that aimed to achieve national policy goals
in specific fields such as educational support, vocational training, and so on. The Ministry of
Labor, Invalids and Social Affairs is developing a draft Circular guiding a variety of contents to
diversify livelihoods, develop financial condition reduction models, offer education and support
employees to work overseas beneath a contract under the National computer programme for
property financial condition Reduction within the 2021-2025 period. Accordingly, there'll be five
activities to support career development for sustainable poverty reduction, including: Support for
investment in facilities, equipment, and training facilities for vocational education establishments
in the province and poor district. Support investment in construction and repair of workshops,
classrooms, dormitories and auxiliary works for about forty colleges and intermediate schools
within the province with poor districts. Support investment in procurement of machinery,
instrumentality and training facilities for regarding a hundred and fifty education institutions. In
particular, priority is going to be given to colleges that select key and spearhead professions in
the province with poor districts to serve the socio-economic development of the region and
locality. Activities of developing standards will be promoted as developing programs and
learning materials; develop lecturers and directors appropriate to subjects and levels of socio-
economic development in poor and deprived areas. Accordingly, it'll build to modify and
supplement about a hundred sets of standards and standards for regarding a hundred professions
and occupations serving training in education in poor and deprived areas. Moreover, some
support in the aspect of education will be applied such as developing a national line skills
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certification assessment system to make sure the standard of vocational education, develop and
standardize the contingent of lecturers and vocational education administrators in programs,
curricula, documents, training materials.

2. Economic instrument
Economic instruments incorporated with
fiscal policy or public spending, taxation
to influence business behavior,
consumption are fiscal incentives and
disincentives to incorporate environmental
costs and benefits into the budgets of
households and enterprises. The
government closely coordinated with all-
level Party Committees, local authorities,
and political-social organizations to synchronously roll out solutions to consolidate and improve
credit quality like concessionary credit for poor households. Nearly 6.4 million poor and near-
poor households had access to loans from the Vietnam Bank for Social Policies (VBSP) as of
December 31, 2021. Total outstanding loans reached 247.97 trillion VND (10.83 billion USD),
up 9.6 percent compared to the end of 2020. It has rolled out effective measures to meet
preferential capital demand of social policy beneficiaries. The need to do better is in mobilizing
capital and collecting overdue debts, and ensuring the liquidity of the social policy banking
system.

3. Direct actions of government


Various poverty reduction programmes were implemented such as Hunger and Poverty
Eradication, National Targeted Program for Poverty Reduction, 30a Programmes, Programmes
132 and 134. Such programs impact many facets of households, including infrastructure
investment like roads, irrigation, schools, health clinics, electricity, capacity building, skills
upgrading, ensuring access to basic social services such as clean water and latrines, health
services, primary and secondary enrolment.

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a. 30a Programmes
The program to support fast and
property poorness reduction could be
a socio-economic development
program of the government enforced
beneath Resolution 30a to make rapid
changes in material and religious life
for poor households. Ethnic minorities
so by 2020 they'll get on par with
different districts within the region.
The central government centered on
mobilizing resources to speculate and support rapid and sustainable poverty reduction for sixty
one poor districts. Supporting the spirit of this Resolution, the provinces and cities directly under
the Central Government choose a variety of other poor districts in the area, particularly the
districts with ethnic minorities living in concentration to mobilize resources of the people. Native
investment supports these districts to scale back poorness quickly and develop sustainably. The
target of the program is to develop synchronously rural socio-economic infrastructure equivalent
to making certain irrigation system.

b. Decision No. 132 and 134 of Vietnamese government


The pilot ventures on forest allocation and forest safety contracts for families and groups in
villages and hamlets of ethnic minorities in the Central Highlands provinces on agreement of
residential and manufacturing land for the neighborhood people. ethnic minorities within the
Central Highlands and some of regulations to aid land for production of residential land, houses,
and home water for bad ethnic minorities, with tough lives, and to protect, repair and broaden
forests in rural areas. the Central Highlands province in a sustainable manner and boost up the
implementation of forest socialization in order that forests and wooded area land have to have
actual owners. The goal of choices 132 and 134 is to create situations to stabilize and enhance

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the lives of neighborhood ethnic minorities within the Central Highlands provinces, with
precedence given to ethnic minorities.
c. National Target Program on Sustainable Poverty Reduction 2021-2025
The program sets the most target to be
achieved by 2025, that is to cut back by
the amount of poor and near-poor
households compared to the start of the
amount consistent with the national
dimensional poorness line; one
hundred pc of poor districts and
communes with special difficulties
within the lowlands, coastal areas and
islands are supported to speculate in the event of regional socio-economic infrastructure, serving
the people' livelihood, production and trade, flow into product and supply basic social services.
Support to create and replicate over 1,000 poverty reduction models and comes to support the
development of production, business, services, tourism, start-ups, and business start-ups to form
livelihoods, jobs, and property incomes. Steady. try to support poor households and near-poor
households with a minimum of one member of operating age who features a stable job; the speed
of youngsters from poor and near-poor households getting to faculty at the correct age reaches
90%...
The program has 7 component projects including 7 main projects respectively: (1) Support
investment in development of socio-economic infrastructure in poor districts and communes with
special difficulties in the lowlands, coastal areas and islands, (2) Diversification of livelihoods,
development of poverty reduction models, (3) Support to develop production, improve nutrition,
(4) Developing vocational education and sustainable jobs, (5) Housing support for poor and near-
poor households in poor districts, (6) Communication and poverty alleviation of information and
(7)Capacity building and program monitoring and evaluation.

d. Legal instruments

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Legal instrument is a legal term of art that is used for any formally executed document that may
be formally attributed to its author, records and formally expresses a lawfully enforceable act,
process, or written agreement duty, obligation, or right, and thus evidence that act, process, or
agreement. In Vietnam, the government's responsibility for legal activities is acknowledged
within the Law on Legal Aid. This regulation demonstrates the government’s' commitment to
the party' and the Vietnamese government' vital welfare policies in alleviating poverty in terms
of legislation for people who cannot afford legal services in the market. The government fulfills
its responsibilities through: (1) establishing a system of State legal aid organizations to make
sure the initiative in meeting people' legal aid needs, (2) ensure funding for legal aid activities,
(3) support, encourage, recognize and honor agencies, organizations and people taking part and
tributary to legal aid activities. In addition, variety of legal documents among the framework of
implementing the impoverishment reduction policy are issued, like the guarantee of absolute
right is that the right to measure in peace and higher meet the requirements of the people, that is
effectively implementing the work of hunger obliteration and financial condition alleviation,
could be a nice action of the Vietnamese government. The Vietnamese people, especially the
poor, should be given job opportunities to improve labor productivity, thereby contributing to
increasing incomes and serving to get the poor out of poverty. Local authorities make sure the
edges of growth and access to services in an objective and even handed manner.

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CHAPTER 4: POLICY ACTORS
I. Domestic actors
1. State actors
a. Management group
The Party has led the State to concretize and institutionalize a legal system, mechanisms,
policies, programs for socio-economic development and hunger eradication and poverty
reduction in each period. The issue of poverty reduction is included in the content of many
laws[2]. At the same time, the issue of hunger eradication and poverty alleviation by the
approach of single programs and policies, since 1998 has been integrated into the "National
Program for hunger eradication and poverty reduction" for the period 1998-2000. passed by
Parliament. Along with that, in order to ensure more appropriate and effective hunger
eradication and poverty reduction for specific regions, especially ethnic minority areas, the
Government has approved important programs[3]. The focus is on developing essential
infrastructure and services, promoting production, and increasing incomes for poor districts,
poor households and the poor (where the poverty rate is 3.5 times higher than the national
average). with a population of over 2.4 million people, of which 90% are ethnic minorities);
Program to support infrastructure investment in communes with special difficulties in coastal
and island areas; projects to replicate effective poverty reduction models; along with many
mechanisms and policies to promote poverty reduction.
During the process of leading and directing the implementation of the National Target
Program on Sustainable Poverty Reduction and 15 other national target programs in the
period 2012 - 2016, although many important results have been achieved, the implementation
many national target programs with related content, also revealed significant shortcomings,
such as: the organization of a cumbersome and multi-layered management apparatus;
promulgating many overlapping policies, sometimes contradicting each other; resources are
scattered... leading to a reduction in the effectiveness and efficiency of hunger eradication
and poverty reduction.

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b. Beneficiaries
In the process of hunger eradication and poverty reduction, together with concern at the
general level, special attention is paid to the disadvantaged groups, ethnic minority areas,
areas with special difficulties, and vulnerable groups. social incentives (such as people with
meritorious services, children, the disabled...). Furthermore, there are several programs that
support deeper localities
Support poor districts and communes, including: Investment in production and daily-life
infrastructure; supporting production and diversifying livelihoods of the poor in poor districts
and communes; improve the quality of human resources in poor districts and communes
participating in labor export in order to increase income and reduce poverty[10].
The poor, ethnic minorities and disadvantaged people with extremely difficult circumstances
are granted health insurance cards with sources from the state budget. By the end of 2019,
the whole country will have 85.39 million people participating in health insurance, an
increase of 44.81% compared to 2012, accounting for 90.0% of the population and is expected
to reach 90.7% by 2020, exceeding 90.7% of the population. 4 years ahead of the Resolution
target (80%).

c. Implementation group
Implementation group can refer to those who intend, sometimes unintentionally, to take part
in the creation of policy. It usually refers to local, state, federal government, and other interest
groups (infrastructure builders, food providers,..). In the concept of Vietnam poverty
alleviation, the implementation group includes local authorities, donors, INGO (international
nongovernmental organization), and others. The Vietnamese government plays a prominent
role in this policy, however.

d. Affected group ( tax payers)


Under the current income tax—that is, many poor families did not owe federal income taxes
(i.e., had zero tax liability), and a significant proportion received a net benefit from refund
credits (i.e., had a negative tax liability) that pushed them above the poverty line. Most of the

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anti poverty impact of the income tax was concentrated among families with children and
workers, who are the major recipients of refundable tax credits.
For low-income people, other than wages, they have no source of income from any other
assets. Therefore, salary is a saving tool of the State to effectively support the life of the poor
and low-income people.
Personal income tax is a tax amount that income earners must deduct part of their salary or
other revenues into the state budget after deductions have been calculated. Accordingly, PIT
is built on the principles of fairness and ability to pay taxes. Personal income tax is not levied
on low-income individuals, just enough to support themselves and their families at the
necessary level. Therefore, the payment of personal income tax also contributes to reasonably
reducing the gap between the population classes.

II. International actors


1. Multilateral cooperation
Through multilateral cooperation mechanisms with ASEAN at the center, Vietnam’s interests
have become increasingly intertwined with those of major countries with great influence in
the region and the world. The effective use of multilateral diplomacy within the ASEAN has
raised Vietnam’s strategic value and role in powerful countries’ policy towards the region,
increasing capital and investment to poverty reduction policies.

2. Bilateral cooperation
The Vietnamese Government will strengthen bilateral/multilateral cooperation with
international partners to realize multidimensional, inclusive, and sustainable poverty
reduction. Through technical assistance, the poverty reduction program in the next period will
be developed in many innovative ways that are suitable to the requirements of the current
context, creating a more open mechanism for local authorities and people to promote the
internal resources of the community.
Recently, The Vietnamese Government will strengthen bilateral/multilateral cooperation with
international partners to realize multidimensional, inclusive, and sustainable poverty
reduction. At the event, Le Van Than, Deputy Minister of Labor, highly appreciated the
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cooperation between the Australian Department of Foreign Affairs and Trade (DFAT), the
UNDP, and the National Office for Poverty Reduction. As one of the activities to concretize
the agreement, the UNDP-MoLISA-DFAT project, themed “Building programs and policy
consultation on multi-dimensional and sustainable poverty reduction, in 2021-2023”, has
provided technical support to the MoLISA for researching ad proposing a number of contents
of the National Target Program for Sustainable Poverty Reduction in the 2021-25 period.
Through technical assistance, the poverty reduction program in the next period will be
developed in many innovative ways that are suitable to the requirements of the current context,
creating a more open mechanism for local authorities and people to promote the internal
resources of the community.
The program also applies innovative solutions that have been successfully tested to bring
efficiency for projects that support livelihood development, generate income and mobilize
businesses to participate in value chain development, accompanying people to provide
technical assistance to improve income.
Vietnam's government puts a great effort into promoting cooperation at multilateral forums,
considering it as a place for our country to improve its position, contribute to the world,
promote bilateral relations, and take advantage of resources for the country.

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CHAPTER 5: POLICY IMPLEMENTATION
The implementation mechanism of the National object program on property poverty
alleviation for the 2021-2025 amount is enforced in accordance with the Government' rules
on the mechanism for management and implementation of the national target programs as
follows:
Firstly, it is the government’s responsibility to implement a money package support
mechanism, increase the participation of individuals within the method of developing and
implementing the Program. Encourage and expand activities to form public jobs for laborers
of poor households, near-poor households, households that are simply at large poverty, and
other people in poor areas through building infrastructure and diversifying livelihoods,
poverty reduction model and production development support project.
Secondly, the government has implemented the mechanism of bidding, ordering and
distribution tasks within the content of education development, job creation, support for
employees to figure abroad underneath contracts, poor reduction in data and communication.
information on multidimensional poverty reduction; training, consulting on technology
transfer, management of keep models and comes; an immediate support mechanism for
workers operating abroad under contracts and apprentices under the Program.
Thirdly, harmonizing mechanisms and processes for uniform application in the Program'
projects and sub-projects; grade the choice of investment contents with higher norms for the
implementation of the beneficiaries; making certain the principle of non-duplication between
activities and investment contents of comes and sub-projects underneath the Program for an
equivalent space and also the same beneficiaries.
Moreover, implement the strategy of empowerment, establish a money investment support
mechanism consistent with the 5-year and annual plans; On the idea of the overall allocated
resources, the locality can proactively assign budget, develop a 5-year and annual Program
implementation commit to solve pressing wants within the locality according to the objectives
and tasks. of the Program proposed.
Integrate the implementation of the 5-year and annual Program implementation coming up
with the annual and socio-economic development planning method at the commune level and
with the participation of skilled officers at the commune level, native organizations and
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individuals. organizations, associations and communities. group action market factors, gender
equality, disaster risk reduction and global climate change adaptation within the planning
process is also regarded as effective implementation of the government.
Finally, promote the spirit of independence and self-reliance of individuals and communities
in poverty reduction; apply a community-based poverty reduction approach; expand and build
conditions to reinforce people' participation in the Program' activities; make sure the
promotional material and transparency in the implementation of the Program.

CHAPTER 6: POLICY EVALUATION


I. Merits:
The outcomes of the effective implementation of the National Target Program on Sustainable
Poverty Reduction for the years 2011-2015 and 2016-2020 have contributed to social security
stabilization and assurance, economic growth and sustainable development, and poverty
reduction, particularly in ethnic minority and mountainous areas.The poor have better living
conditions, better access to state and community support policies and resources for economic
development, job creation, and income growth; basic social needs of the poor are met (health
care, education, housing, clean water and sanitation, access to information...); and the
opportunity to lift themselves out of poverty sustainably, without relying on community and
state support.
Vietnam's poverty reduction achievements demonstrate the Party and State's high
determination to realize the Sustainable Development Goals (SDGs) and end all forms of
poverty all across; recognized and appreciated by the international community as one of the
countries with the fastest poverty reduction rates in the world, making the most impressive
progress in the sustainable development goals that Vietnam commits to.
Sustainable poverty reduction has become a priority task and goal in the process of directing
and administering Party committees and authorities at all levels, from central to local; the
Government, ministries, branches, and localities have supplemented and modified new
antipoverty policies and mechanisms to be more and more appropriate. The program's
investment capital is guaranteed by the Law on Public Investment and is allocated in the
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medium term, creating circumstances for localities to take the initiative and allocate cash in
accordance with the locality's features and needs.
In the entire period 2011-2020, the poverty rate, whether calculated using old or new
standards, decreased sharply; expenditure growth of low-income families was higher than the
national average in the period 2010-2016; the rate of spending on food and food has decreased
to 51 percent; expenditure on non-food needs has increased to 49 percent; After 5 years, the
poor's wealth has increased and their quality of life has improved.
Provinces and cities have strongly responded to the initiative "The entire country joins hands
for the needy, leaving no one behind," which aims to decrease poverty swiftly and sustainably
through a variety of local specific programs

II. Emerging shortcomings


The effects of poverty alleviation are not long-term and uneven. Poverty is mostly
concentrated in disadvantaged, hilly, isolated, coastal areas, and islands, where a large
number of ethnic minorities dwell, and the poverty rate remains above 50% in many places,
particularly 60-70 percent.In the four years 2016-2019, the rate of re-entry into poverty
averaged 4.09 percent per year as compared to the total number of households escaping
poverty.The rate of poor households arising is relatively high, with an average of 21.8 percent
from 2016 to 2019 compared to the total number of poor households.
The rate of poverty reduction among ethnic minority groups is less than the overall rate of
poverty reduction. The average income of ethnic minority households is barely one-sixth of
the national average, and the rich-poor divide across regions and population groupings has
not lessened especially in the mountainous areas in the North and Central Highlands.
The educational attainment and the number of ethnic minorities who have access to education
remain significantly lower than that of the Kinh and Hoa people.The dropout rate among
children, particularly ethnic minority pupils in really challenging locations, remains high; the
percentage of ethnic minority children attending school is lower than the national average at
all educational levels. In comparison to actual needs, the degree of support for students,
especially those who belong to ethnic minorities, as well as several other groups, remains
inadequate.
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There are still 4,800 households without homes and 1.4 million households living under basic
housing; There are about 375 thousand ethnic minority houses that have not yet used clean
water, with 11 ethnic groups having less than 50% of households using sanitary water on a
daily basis.
The strategy of ensuring information for the poor and poor areas has recently been halted at
the level of short-term initiatives (3-5 years), limited resources, and delayed implementation.

III. Recommendation: Guidelines and solutions to emerging challenges


To put the Party's and the State's perspectives on long-term poverty reduction into action; the
entire country joins hands for the poor, leaving no one behind. Developing and implementing
the National Target Program on Poverty Reduction and Sustainable Social Security must be
a comprehensive and inclusive way,multifaceted and long-term approach particularly in
ethnic minority communities for the period 2021-2030. Facing these challenges, the
governments has set out some effective solutions, in order to lessen the rate of destitution
among ethnic minorities:
In the first place, strengthening the leadership of Party committees at all levels; improving
state management capability and efficiency; fostering change and consensus throughout
society in policy implementation; and increasing people's initiative in becoming wealthy are
all regarded as key determinants to poverty alleviation.
Secondly is enhancing information, propaganda, and education efforts, as well as raising
awareness and sense of responsibility among all authorities and citizens in the implementation
of the Party's guidelines and lines, as well as the State's policies and laws on long-term poverty
reduction.
To meet the demands of the current setting, a comprehensive, inclusive, and long-term social
security plan must be installed. Designing assistance programs with flexibility, timely
adjustment, meeting the needs of people and communities after natural disasters,epidemic,...
timely support for disadvantaged people to overcome risks.
In the long run, supporting people in obtaining sustainable livelihoods through training and
career modifications; providing agricultural insurance to compensate people for losses caused
by natural disasters, epidemics, and market fluctuations as well as assessing, updating the legal
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system; analyze policies in each field to provide a foundation for proposing new policies to
supplement, alter, or replace existing ones are considered as efficacious ways to cope with
obstacles, in terms of poverty reduction in Vietnam.

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CONCLUSION

In drawing things to a close, although the multi-dimensional poverty reduction strategy in


Vietnam is currently facing numerous impediments, the extraordinary achievements after
more than ten years of Vietnam implementing two phases of the poverty reduction program
cannot be disputed. reducing poverty, since it has contributed to stability, ensured social
security, encouraged economic progress, and fostered long-term development, particularly in
ethnic minority and mountainous areas. Poverty is nevertheless an unavoidable component
of every national and society, regardless of its growth.Nevertheless, poverty reduction may
always be achieved by promulgating sensible policies, effective and defined goals, and the
determination to implement of the government in particular as well as the entire people in
general.

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