One of the top 38 countries pursuing the United Nations Food and Agriculture Organisation’s millennium development goals (MDGs), Vietnam has recently received a certificate of merit for having early fulfilled MDG1 of cutting half of its poor population by 2015.
Escaping poverty
Economists warn that in its poverty reduction efforts Vietnam is destined to face a host of challenges arising from regional socio-economic realities and global economic fluctuations.
Development Strategy Institute Director Bui Tat Thang says the rapid rate of poverty reduction, although impressive, is not sustainable as maintaining high rates of economic growth and macroeconomic stability will be all the more difficult.
World Bank Vietnam Expert Vu Hoang Linh says economically he is very concerned about the plight of disadvantaged ethnic minority people.
According to WB statistics from 2010, 66 percent of ethnic minority people live under the poverty line, compared to 13 percent of the ethnic Kinh majority. They often have to seek credit to cover production costs and daily living expenses.
A WB survey reveals most of Ma ethnic minority residents in Dak Nong province borrowed a dozen million Vietnam dong from banks to grow maize and coffee or to buy rice seeds, fertiliser, and essential commodity goods. High inflation, price hikes, unfavourable weather, and insect plagues put them in a difficult position to recuperate the money needed to pay off their debts and escape from the curse of poverty.
Insufficient knowledge and skills
The United Nations lists Vietnam 6th among the countries which have made considerable progress in fulfilling MDGs.
WB Expert Valeria Kozel says wealth disparities between disadvantaged communities like small ethnic minority groups and large sections of urban population are exacerbated by the former’s isolation and low levels of property, health, nutrition, and education.
Labour Science and Social Affairs Institute Director Nguyen Thi Lan Huong says poverty reduction efforts will require coordinated efforts from the government and all sections of society, including the poor themselves.
As Kozel argues capital growth is a decisive factor behind poverty reduction so Vietnam needs to ensure macroeconomic stability and curb inflation for benefit of sustainable growth in the future.
She insists on increasing investment in rural areas, improving agricultural productivity, and supporting small-and medium-sized businesses which employ local labourers and realise the importance of equipping them with adequate knowledge and skills to work.
