Aspirations of those with less opportunities cannot be ignored

Thứ Sáu, 06/04/2018, 11:30

This was the assertion of Mr. Ousmane Dione, World Bank Country Director for Vietnam at the workshop “Climbing the Ladder: Poverty Reduction and Shared Prosperity in Vietnam” which took place on April 5, in Hanoi by the Ministry of Planning and Investment of Vietnam and World Bank. 

Mr Ousmane Dione, World Bank Country Director for Vietnam speaking at the workshop

Poverty in Vietnam continues to fall

The report “Climbing the Ladder: Poverty Reduction and Shared Prosperity in Vietnam” mentioned that poverty in Vietnam continues to fall, particularly amongst ethnic minorities, who saw their rate of poverty decline significantly by 13%, the largest decline in the past decade.

According to the General Statistics Office Of Vietnam, ethnic minorities – many of them living in highland areas – account for 72% of Vietnam’s poor. Improving income from highland agriculture can help Vietnam further reduce poverty, which has fallen by almost 4% since 2014, to 9.8% in 2016. In particular, the rate of 13% reflected the positive results of encouraging them to grow more profitable industrial crops may improve their earnings.

“Vietnam has achieved tremendous results in reducing poverty and improving the quality of life foir millions. The decline in poverty amongst ethnic minorities is encouraging, and more focused efforts on improving their incomes can further broaden their opportunities and reduce persistent inequalities. The aspirations of those with less opportunities cannot be ignored,” said Ousmane Dione.

Mr. Vu Thanh Liem, Deputy Director of General Statistics Office of Vietnam citing positive data regarding poverty reduction in Vietnam.  

Outlining recent trends and patterns of poverty in Vietnam, the report proposes solutions for that untapped agriculture potential in highland areas where the poor are concentrated. Land use and cropping decisions. 

For example, contribute more to agriculture income differences between households. Low-income families in highland areas use their land to grow basic crops such as rice or maize instead of raising more profitable crops such as coffee, black pepper or rubber.

Improving access to credit may help highland farmers make the necessary investments for higher-earning agricultural production. Strengthening earning capacity can help narrow inequalities between groups. The average per capita consumption of ethnic minorities, for example, remains less than 45 percent of the Kinh and Hoa. Moreover, the poor faces a widening gap in terms of access to upper secondary education and improved water and sanitation.

Expanding economic opportunities for people in lagging areas

At the same time, the report recognizes that 70 percent of Vietnam’s population is now classified as economically secure, including the 13 percent who are now part of the global middle-class. These income classes are growing rapidly, rising by over 20 percentage points between 2010 and 2017.

Many experts participating in the workshop. 

An average of 1.5 million Vietnamese joined the global middle class each year since 2014, confirming that households continue to climb the economic ladder after escaping poverty. The rise of the consumer class changes society’s aspirations and the focus on the poverty and shared prosperity agenda shifts from combating extreme poverty to effecting broad improvements in the quality of life and supporting the further expansion of the middle class. Rapid job creation and an ongoing transition to wage employment are driving gains in poverty reduction and shared prosperity.

The report suggests several areas of strategic priorities to further reduce poverty and promote shared prosperity, including: Boosting labor productivity and investing in infrastructure to sustain job creation and wage growth without losing competitiveness; Implementing education reforms designed to equalize opportunities and develop workforce skills; Spurring agriculture structural transformation through changing farmland use patterns, strengthening land user rights, and improving skills of the poor farmers.

One of the prioritized areas under the new World Bank Group Country Partnership Framework with Vietnam for the period from FY18 – FY22 is inclusive growth, with a specific objective for the “economic integration of the poor and vulnerable groups” under which the Bank will provide support for targeted interventions to expand economic opportunities for people in lagging areas.

By Linh Bui