Viet Nam’s progress on economic growth and poverty reduction

Type Report
Title Viet Nam’s progress on economic growth and poverty reduction
Publication (Day/Month/Year) 2011
Publisher Overseas Development Institut
City London
Country/State UK
Viet Nam has exhibited one of the highest rates of economic growth and poverty reduction in the world, albeit one accompanied by higher inequality. Several factors underpinned these improvements. First was pragmatic party leadership, which encouraged both internal debate and policy innovations based on a trial-and-error approach. Second were strong governing and market institutions. Third was a wide-reaching network of infrastructure that enabled efficient and effective implementation of economic reform policies. Fourth was equitable initial investment in human development, which meant the populace was primed to take advantage of economic opportunities. Fourth, equitable land reform with targeted investment in agriculture brought significant increases in agricultural yields and poverty reduction in rural areas. Viet Nam has been able to sustain this progress for two decades, thanks to the effective adoption and implementation of Doi Moi; continued equitable land reform; pragmatic, careful and sequenced liberalisation; and macroeconomic reforms and the ability to consistently attract foreign investment. A strong sense of social solidarity and equity has also contributed to effective policy and implementation, as well as to continued investment in human development (albeit not benefiting all), leading to significant improvements in human capital, thus enabling people to take advantage of market opportunities. Remaining challenges include rising inequality, environmental degradation and corruptio

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