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Vietnam

This is a short presentation of the Vietnam context, and in particular the areas where we operate, as well as the situation of the people, to help understand how relevant the programs are.

The context of Vietnam

Significant improvement after "Doi Moi"

Since the set of reforms called doi moi (1987), namely the opening up to the market economy, the economy of Vietnam has made substantial improvements: the inflation rate is under control (4% in 97, 9% in 98, 5% in 99, 3-5% since), and the GDP has more than doubled since 1990.

More data on http://www.undp.org.vn/undp/fact/base.htm

GDP growth rate

Despite a number of problems faced by a country in transition, Vietnam has received substantial foreign assistance and attracted large amounts of investments. Among others, it has become the world's second largest rice exporter. In regards to this astonishing progress, Vietnam has been too hastily nick-named the "new Asian tiger" by some observers, in reference to the four Asian dragons: Taiwan, Hong Kong, Singapore and South Korea.

Vietnam is still a poor country, with a large population

But the rapid economic growth has left part of the population on the side, not everyone has benefited.

Vietnam is among the world's top twenty largest countries in terms of population.

The economic progress slowed down due to the Asian recession

Vietnam was confronted by the "Asian crisis" in 1997. However, being less open than other countries, it was also less vulnerable to outside factors, and managed its way through better than others, mainly by limiting imports. It did resist the "advice" of the IMF and other international institutions, and was... congratulated for its good management afterwards.

Other countries have devalued their currency and have thus become more aggressive competitors; China, on the other hand, by the size of its internal market is attracting more investors. Bureaucracy and red-tape in Vietnam is still worrying foreign companies.

Vietnam ranks 101st in the Human Development Index of the United Nations, just after Algeria but ahead of other countries with a much larger GDP, Morocco (UN 2001, 1999). Other indicators are:

Comparative Economic Situation 1999 France Vietnam South-East Asia Low-income countries
Population (million)
~ Worldwide rank (210 countries)
Population growth
58.8
21st
0.5 %
77.5
13th
1,6 %
1,837
-
1.2 %
2,417
-
1.9 %
GNP per capita (US$)
~ Worldwide rank (210 countries)
GDP growth
23,480
15è
2.4 %
370
186th
4%
1,000
-
4 %
410
-
5.8 %

Sources: 2000 World Development Indicators, World bank

See basic facts about Vietnam: http://www.undp.org.vn/undp/fact/stat/index.htm

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Background of the Programs

Poverty is still prevalent in remote areas

With a 62% of population increase since 1975, there have been large internal migrations namely from the North and the Center to the South, but also to the forests. Ethnic minorities are under constant pressure and sometimes they surrender their land.

Remote areas sometimes lack the most basic facilities, like roads, drinking water, health centers, schools...

This population needs more support in its struggle to survive
Monthly interest rates of 10% or more
Farmers or fishermen need capital for seeds, fertilizer, pesticide or for fishing equipment. This capital they need at specific moments; when the season comes, they cannot wait otherwise their efforts and investments might be lost.

Some do not have access to bank loans due to insufficient collateral. Or the banks are too far away, or the procedures are deterrent. The Vietnam Bank of Agriculture has, in many regions, has made substantial progress; still, the moneylenders charge exorbitant interest rates from 60% to 500% yearly when they can. The daily income per capita of poor villagers often does not exceed 0.3 €.

Nonexistent fundamentals: water, health, schools

Rural people often raise some livestock. But in remote areas, vaccines and animal feed are expensive. Animals are free to wander around and thus exposed without any protection to epidemics. It is estimated that in remote places 1/3 pigs or chicken die of epidemics and diseases.

More than 40% of Vietnamese people do not have access to drinkable water. During the dry season, water supply does not match the needs and water from wells is often very polluted.

Hygiene conditions are poor, people are affected by malaria and malnutrition especially near the forests; the education of the children is better than in other poor countries, but too many drop out in secondary level for economic reasons.

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Situation of Beneficiaries

People with 0,3 - 0,5 €/day as only income
The poverty line is around 200 €/year. In general, 17% of the Vietnamese people are considered as poor according to the World Bank criteria. Almost all the poor live in the countryside.
Priority target group : women

The beneficiaries of the Saving-Credits programs are the poor households, the housewives are invited to join. After a few weeks they become less shy, more confident, and they have a better say in the development of the community, they have more options for themselves too.

In Vietnam as in many other countries, the women are the key element in the household. They have the determination to improve the condition of their family and of their children. They do the homework, take care of the children but also of the fields and of the livestock. The men are comparatively better off, and too often they spend much on smoking and drinking, and relatively less on useful investments.

The new program for the extremely poor focuses on the poorest 2% households. In 70% cases the man has either abandoned wife and children, or is not contributing at all, most often because of heavy drinking.

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last update of this page on December 14th, 2005