Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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Participatory poverty monitoring in rural communities in Viet Nam 26 The Government’s national income poverty line Poverty in rural Viet Nam fell in the 2004-2010 period, according to the Government’s 2006-2010 income poverty line. At the end of 2010 the Government adopted a new poverty line for the 2011-2015 period, according to which rural households and urban households with an income per capita less than or equal to 400,000 VND and 500,000 VND per month respectively are considered poor. Raising the income poverty line increases the rural household poverty rate by four percentage points (Table 1.2). TABLE 1.2. Poor household rates in Viet Nam using the Government’s income poverty line, in the period 2004-2010 (%) Old income poverty line New income poverty line 2004 2006 2008 2010 2010 All of Viet Nam 18.1 15,5 13,4 10.7 14.2 Urban 8.6 7.7 6.7 5.1 6.9 Rural 21.2 17.0 16.1 13.2 17.4 Source: GSO, “Key results from Viet Nam Household Living Standards Survey 2010”, June 2011 Note: • The income poverty line for the period 2006-2010 was set at an average income of 200,000 VND person month in rural areas and 260,000 VND /person/month in urban areas. The poverty rate in 2004, 2006, 2008 and 2010 was measured by GSO using the poverty line for 2006-2010 with some adjustment due to price changes in the corresponding year. • The Government’s income poverty line for the 2011-2015 period is set at an average income of up to 400,000 VND/person/month in rural areas and 500,000 VND/person/month in urban areas (Decision No. 09/2011/QD-TTg dated 30/1/2011 of the Prime Minister). Poverty reduction was uneven in the 2006-2010 period. Poverty rates fell most rapidly (4-5% annually) in areas with diverse livelihoods, favourable conditions for commodity production, migrant labour and local casual jobs. Poverty rates remain high among ethnic minority groups living in remote mountainous areas. According to the new poverty line the poverty rate at the monitoring points in late 2010 rose sharply. Figure 1.1 shows the proportion of poor households in some villages of the Kh’Mu, H’Mong, Thai, Raglai, and Van Kieu in northern mountainous and central provinces is more than seventy percent. These villages are far from socioeconomic centres, main roads, schools, commune health stations and markets. Most have an unstable agricultural model, are prone to natural disasters and disease and have few sources of non-agricultural employment. Ensuring basic food security remains a challenge for local people. Villages face unique difficulties such as no access to the national grid or problems with illegal drugs. Perception of life changes The proportion of people who feel their lives have improved over the last five years is high in most monitoring points (Table 1.3). Four reported reasons are: availability of labour, favourable market prices, improved access to loans, and the introduction of new seed varieties. Only a small proportion of respondents felt their lives had got “worse” in the last five years (nine percent of the 600 households). The four most reported reasons for a decline in living standards were: labour shortage (household members are elderly, disabled or ill), natural disasters, a shortage of capital, and unfavourable prices. Price volatility improved the lives of some households (higher sale prices for produce), and hurt others (the price of inputs and essentials rose faster than produced outputs).
Five-year Synthesis Report Part 1: Poverty Trends and Key Themes of Rural Poverty Reduction TABLE 1.3. Feelings about life changes, 2007 - 2011 Commune Life over the last Reasons for improvement (%) five years (%) Better Same Worse Do not Access Having Having Knowledge Favourable Good Less Less Others know to capital man new of farming prices irrigation affected epidemics sources power suitable varieties technique system by disasters and pests Thuan Hoa 68 28 3 0 27 54 66 44 27 2 12 15 0 Ban Lien 68 28 3 0 54 56 41 22 66 7 7 5 5 27 Thanh Xuong 75 18 7 0 40 80 31 31 31 4 20 22 2 Luong Minh 73 17 10 0 36 45 45 36 25 7 9 5 27 Duc Huong 73 17 10 0 36 45 45 36 25 7 9 5 27 Xy 85 15 0 0 6 69 12 18 47 0 65 33 0 Cu Hue 52 45 3 0 29 48 26 39 65 0 39 13 3 Phuoc Dai 38 53 7 2 52 48 26 17 30 30 43 9 0 Phuoc Thanh 27 45 22 7 44 94 0 0 19 19 44 0 0 Thuan Hoa 52 38 10 0 13 90 19 16 26 6 23 10 0 Average 55 34 9 2 33 64 32 26 40 6 27 14 7 SOURCE: Household interviews 1.2. Household poverty reduction strategies at the monitoring points Poverty trends at the monitoring points are linked to labour division strategies. Macro level factors have affected all households. These include improved infrastructure, increased economic opportunities, FIGURE 1.1. Poverty rates in 20 surveyed more non-agricultural jobs and villages according to new poverty line, 2010 better educational, health and agricultural extension services. At the household level, effective labour division strategies are of decisive significance. Household labour division strategies vary between communes, villages and households, and often involve a combination of agricultural and non-agricultural jobs and study depending on the age of household members (Figure 1.2). • Agricultural employment: Diversification and intensive farming in agricultural production and making use of land advantages (Thuan Hoa- Ha Giang, Ban Lien-Lao Cai, Thanh Xuong-Dien Bien, and Cu Hue- Dak Lak). Increasing income from agriculture remains a popular strategy in mountainous areas, particularly among middle-aged and elderly people. • Non-agricultural employment: SOURCE: Poverty statistics provided by communes
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Part 3 Toward Sustainable Rural Pov
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