2. Brief history of Vietnam
In the late 19th century Vietnam became a French colony. Finally in 1883 North and Central Vietnam was
forced to become a French protectorate.
The French built infrastructure in Vietnam such as the Saigon to Hanoi railway. They also built roads and
bridges. However the building was funded by heavy taxation. The Vietnamese wanted independence. The
Communists spearheaded the struggle for independence. Ho Chi Minh founded the Revolutionary Youth
League from the safety of China in 1925. In 1930 it became the Vietnamese Communist party.
In 1940 the Germans defeated France.
The Japanese took over most of Vietnam in the wake of the French defeat.
Japan surrendered on 15 August 1945 after being defeated by the communist party
On 2 September 1945 Ho Chi Minh declared Vietnam independent.
For eight years the Viet Minh fought a guerrilla war against the French. Finally in 1954 they surrounded a
French army at Dien Bien Phu. After a siege lasting 57 days the French were forced to surrender.
In 1959 the North Vietnamese began a long guerrilla war to reunite Vietnam under Communist rule. The
Northern Guerrillas were known as the Vietcong.
Gradually the USA became involved in the Vietnam War. As early as 1950 the US sent military advisers to
South Vietnam. Financially they supported the French and later the South Vietnamese government.
In January 1973 they signed a ceasefire and the remaining American troops withdrew.
The South Vietnamese continued to fight the Vietcong alone
1975 South Vietnamese resistance collapsed and on 30 April 1975 the North Vietnamese captured Saigon
3. Facts
Life expectancy: 75
Literacy rate: 90%
Infant mortality rate: 17.8 deaths/1,000 live births
Rural areas with an access to clean water is 67%.In 2009, 75% of
households in provincial towns were not connected to a sewer, only
23% of Vietnamese had a tap in their home.
1.2 doctors per 1000 people
Corruption perception index: 31/100
GDP/C
1990 –98$
2013 – 1,910$
Until the 1980s, most of
the Vietnamese population
still lived under
the poverty line. However,
thanks to the political and
economic reform in 1986
and the government’s
commitment, the status of
poverty and hunger in
Vietnam has been
significantly improved.
4. Who are more likely to live in poverty?
The majority of the poor live in rural, isolated, mountainous
or disaster prone areas, where physical infrastructure and
public service are relatively undeveloped.
Rural households consisting of only women and children
are particularly vulnerable to poverty because the number
of dependents is relatively high compared with the available
labour force.
As a result of the war, many lost husbands and
fathers who were skilled workers contributing to
the workforce.
The poor are disproportionately likely to be from an
ethnic minority.
5. Causes of poverty
Loss of labour force after the war.
Loss of limb or life is still a worry as many active land mines
have never been found.
Monsoon seasons make it difficult for rural farmers to work
and grow crops.
Mass unemployment and migration towards the CBD has left
rural villages in decline.
Trade restrictions and communist rule until 1989 meant that
Vietnam's growth was hindered.
Growing gap in income inequality in the urban to rural areas,
with high levels of government corruption.
Discrimination of ethnic minorities from Bangladesh, India
and Burma mean that they face unemployment.
Golden Triangle of drug trafficking in Vietnam and
neighbouring Thailand and Burma means many are exploited
and perhaps heavily involved in drug taking.
6. Poverty Changes
the poverty rate decreases gradually from 58% in 1993
to 28.9% in 2002, 14.5% in 2008 and 12% in 2011.
About 28 million people are estimated to have been
lifted out of poverty over approximately two decades.
The 2014 Global Hunger Index (GHI) Report ranked
Vietnam 15th amongst 81 nations suffering from
hunger, with a GHI of 7.5 compared with 27.7 in 1990.
7. Tackling Poverty
The high political determination and commitment of the government in fighting against poverty and
hunger play a critical role. In the two last decades, many policies have been promulgated with huge
governmental funds. The most prominent program is the socio-economic development program for the
most vulnerable communes in ethnic minority and mountainous areas, also shortly referred to as the
135 program. The program’s target is to:
Promote production and increase living – standard for ethnic minority
households
Develop infrastructure and develop public essential public service in the
localities such as electricity, schools, health clinics, small irrigation system,
roads, clean water providing systems.
Enhance the people's awareness for better living standards and quality of life.
In the phase I (1998 – 2005), the program invested VND 9142 billion (US 571 million) from the
governmental fund for 1870 extremely difficult communes. The program’s phase II (2006 – 2010)
continued to cover 1879 communes with a total budget of US $1 billion:
Develop productive partnerships (PP) between farmer groups and
agribusinesses
Simple access roads, terracing, irrigation and improved water supply
Finance sub-projects for the repair, operation, and maintenance of
infrastructure
Vietnam has incorporated new laws to help prevent corruption by making it a legal requirement for the
government and businesses to publically publish reports on agreements and spending.