Publication: Viet Nam - Bi-Annual Poverty and Equity Update: Towards More Inclusive Cities
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2024-08-27
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2024-08-27
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Recent poverty and equity dynamics in Viet Nam can be described across three distinct phases. First, at the start of the decade, there was rapid poverty reduction accompanied by declining inequality. From 2010-14, both poverty and inequality fell due to large shifts in labor from agriculture into manufacturing and services jobs. Most of these non-farm jobs were still low-skilled, and agricultural laborers could easily shift into these new jobs. This was followed by a period of poverty reduction but accompanied by slightly rising inequality from 2014-20. During this period, structural transformation continued, but as non-farm wages increased rapidly, farming income did not rise as quickly and more recently has even declined. Lastly, in 2022, after extended adverse impacts related to the COVID-19 pandemic, household consumption growth declined compared to 2020, and income growth slowed. Dynamics during this distinctive and short period from 2020 to 2022 is the focus of analysis in Part 1 of this report. Preserving gains and developing opportunities in urban areas are important for Viet Nam’s Next Mile to upper middle and high-income country status. Over the last decade, rapid economic growth was broadly inclusive and livelihoods in Viet Nam improved dramatically and in a progressive manner. Given the substantial success in poverty reduction, the poverty and equity agenda in Viet Nam today is no longer only about raising minimum living standards and tackling extreme poverty. It is also about creating new and sustainable economic pathways for a more aspirational population. Development and economic opportunities in urban areas are key to sustaining upwards economic mobility for the millions who have left poverty and now seek even higher economic gains.
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“World Bank. 2024. Viet Nam - Bi-Annual Poverty and Equity Update: Towards More Inclusive Cities. © World Bank. http://hdl.handle.net/10986/42101 License: CC BY 3.0 IGO.”
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