In 2020, the Prime Minister Nguyễn Xuân Phúc said that the Party and State’s devotion over the past 30 years has paid off and Việt Nam is recognized by the world as a model of poverty reduction and an inspirational success story. He emphasized the importance of fine-tuning policies to help the poor, prioritize children, the elderly, and ethnic minorities, and ensure that no one is left behind.
Việt Nam remains a one-party socialist state run by the Communist Party but embracing free-market policies.
It is hard to ignore the growth of Việt Nam while discussing the fall of poverty that has marked the last three decades. Poverty reduction has played a critical part in the country’s change during the last 30 years. According to the World Bank, “the poverty rate in Việt Nam has dropped from roughly 60% to 20.7 percent in the last 20 years.”
Việt Nam has also achieved several milestones concerning the United Nations’ Sustainable Development Goals. The nation has expanded health insurance coverage to over 80% of the population, increased access to safe drinking water to over 90% of the population, and achieved nearly universal access to electricity in Vietnamese households. Per capita income in Việt Nam has gone from around $100 in the 1980s to about $2300 in 2017, but the problem is far from solved.
The rise of Việt Nam has not left the nation in perfect condition. As the economy has expanded, new challenges have arisen, particularly in addressing high poverty levels that still exist among Việt Nam’s ethnic minority population.
In terms of access to upper secondary education and improved water and sanitation, the poor face a widening divide. According to a World Bank estimate, nine million Vietnamese people are still living in extreme poverty.
In Việt Nam, poor people are defined as those who earn up to VND700,000 ($31) a month in rural areas and VND900,000 ($40) in cities.
According to the World Bank report, ethnic minorities make up 72 percent of the poor in Việt Nam, with many of them residing in mountainous areas. According to the research, the poor face a growing gap in access to upper secondary education, as well as improved water and sanitation. Moreover, the report said, suggesting that education in Việt Nam remains a vital area in battling poverty, and the government may increase educational opportunities for children from all backgrounds to ensure that all children have an equal opportunity of succeeding.