ADB Further Aids Poverty Reduction in Vietnam

The Asian Development Bank (ADB) and the Government of Vietnam recently signed a US$24.8 million loan agreement to support policy reforms needed for fostering the country’s inclusive growth and ensuring further poverty reduction.

 

This programme provides parallel financing to the Poverty Reduction Support Credit framework supported by a number of development partners, helping Vietnam carry out a wide range of policy reforms in the areas of business development, social inclusion, natural resource management, and governance to ensure successful implementation of the 10-year Socioeconomic Development Strategy 2011-2020, and the Socioeconomic Development Plan 2011-2015.

 

Mr Tomoyuki Kimura, ADB Country Director for Vietnam, said: “Poverty reduction cannot be sustained without inclusive economic growth. Further efforts should be made to accelerate reforms to strengthen institutional and human capacity, governance, and policies to address the development challenges and to promote economic growth.”

Vietnam's poverty rate declined significantly from 15.5 percent in 2006 to 9.5 percent in 2010 as a result of the country's rapid economic growth and improved social protection programmes. However, selected groups remain vulnerable to poverty. The poverty incidence among ethnic minority groups remains very high at more than 50 percent in 2009.

 

High inflation due to the macroeconomic imbalances in Vietnam has eroded some progress in poverty reduction that the country has made in recent years. To overcome the macroeconomic difficulties and mitigate the adverse impacts of the global economic crisis, the Government committed to continue implementing reforms with a focus on macroeconomic stabilization and economic restructuring.