Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

Participatory poverty monitoring in rural communities in Viet Nam
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or drug users. Assistance should concentrate on mitigating specific risks and
supporting sustainable livelihoods.
• The near-poor include also the households who have just escaped from
poverty, and their living standards are not much higher than those actually in
poverty. The near-poor also tend to lack savings. As a group they require a
system of support policies similar to the temporarily poor in a certain period (2-3
years) for sustainable poverty reduction.
Poverty reviews conducted at the end of the year excludes households who
fall into poverty at other times of the year. Near-poor and vulnerable households
can easily fall into poverty at any time of the year. In principle, the list of poor households
can be updated during the year, but because of complicated procedures and paper
work, this is not done at all monitoring points. The current policy on support for people
who face unanticipated difficulties is also weak in terms of its coverage and funding.
Other limitations in targeting groups
The target-oriented mechanism is too complicated, creating a management
burden. The group of cadres in Vi Xuyen district-Ha Giang commented “Mechanisms
and policies should be synchronised. There are too many policy documents, for example
those relating to tuition fee exemptions and reductions for poor students in Category III
communes under Decree 49. The files of beneficiaries are too thick”.
“Cash transfer (conditional or unconditional)” programmes based on targets
are not available. In Viet Nam, there is direct cash support for education expenses for
poor students, orphans and students living in border, highland, and island areas and in
specially disadvantaged communes under Decree 49. However, the level of support
under Decree 49 is too low, and has limited impact. Other possible recipients
include the mother and child healthcare which currently has no cash support policy.
Although conditional cash transfers have proved successful in other countries they can
be difficult to manage and monitor.
3.2. Social assistance
In general, social assistance has been duly provided to the right beneficiaries
already listed at the monitoring points. Households in difficult circumstances reported in
interview that they were happy to receive regular assistance under Decree 67, helping
them to partially cover their daily expenses. In addition, the Government has also
provided ad hoc support to people and households who have suffered natural disasters
or food shortages.
The level and coverage of social assistance policies has been increased. Decree
13 (effective 13 April 2010, and which revises and supplements Decree 67) has:
• Increased the basic level of assistance from 120,000 VND per month to
180,000 VND per month
• Removed the requirement that disabled people who are no longer able to work
or look after themselves must be a “a member of a poor household”
• Lowered certain requirements for people with mental health problems
• Provided tuition and education materials to social assistance recipients who
are attending school.
According to the Law on the Elderly, starting in early 2011, people over the age of
80 (previously 85) are entitled to social assistance. This is a step forward in social
assistance policy. However, the level of basic assistance of 180,000 VND/month
is too low compared to the cost of living at present.