Poverty Alleviation, Rural Development and Social Policy

The average annual per capita income in Vietnam of about US$ 200 is an indication of widespread poverty. However, this average figure conceals major differences in personal and regional income distribution that are not recorded statistically, but are needed if the scale and distribution of absolute poverty are to be determined. The regional differences are very pronounced, as are the differences between urban and rural areas. The high incidence of poverty in rural areas indicates the need for the emphasis to be placed on rural development. The reform of the economy has given rise to sweeping changes in the organization and financing of the education and health systems and of the social safety nets. Labor-intensive and export-oriented investment will probably create many jobs in manufacturing industry in the future and rapidly reduce urban poverty. Absolute poverty in rural areas had obviously been far more common before the reform.