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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

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.
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| 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.
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| 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.
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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
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...
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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 €.
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| 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.
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| 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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