world bank vietnam

world bank vietnam links

Progress in the Last Decade

In the last decade, Vietnam has greatly reduced the incidence of poverty – reflected both in rising per capita expenditure and in widespread reports of improvements in broad well-being. The proportion of people with per capita expenditures under the total poverty line dropped dramatically from 58 percent in 1992/93 to 37 percent in 1997/98. The number of people below a "food poverty line", which is lower, declined from 25 percent to 15 percent, indicating that even the very poorest segments of the population experienced improvements in their living standards between 1993 and 1998. While poverty incidence is still quite high in Vietnam, these declines over a period of only five years are very impressive. In recent years, almost no other country has recorded such a sharp decline in poverty in such a short period of time.

Declines in poverty levels in rural and urban areas have been matched with improvements in access to education and in access to infrastructure. Between 1993-1998, net primary school enrollment rates in rural areas have gone up from 85 to 91 percent. For urban areas, the net primary school enrollment rate has remained more or less unchanged at a high level of 96 percent. There has also been improved access to clean water supplies and sanitation facilities in both urban and rural areas. The rural population is less dependent now on river or lake water, with more people relying on water from drilled wells. In urban areas, more than half the population have access to piped water. Over 90 percent of the urban poor and nearly 60 percent of the rural poor have access to electric lighting.

Current Challenges

While the progress achieved over the past decade has been impressive by almost any standards, Vietnam remains a very poor country whose huge development potential is as yet largely untapped. While the share of the population in poverty has been cut in half over the past decade, some 30 million people, or around 37 percent of the population, are estimated to live in poverty. Currently, around 25 million people, accounting for 60 percent of the labor force, are unemployed or underemployed. And each year in the coming decade, over one million people will be added to the workforce.

In the period 2001-2010 Vietnam intends to build on the progress of the past decade to achieve the following quality of life targets, among others:


These are ambitious goals, but appropriate, and can be attained through rapid growth and a change in the structure of the economy to a more modern, industrial and urban one that can create better-paying jobs.

The Government and the international community are agreed on the importance of the six key development 'pillars' that will need to be built if the goals to be reached. These are:

World Bank Assistance to Vietnam

The 'pillars' of development are at the core of the World Bank's work in Vietnam and underpin all we do, in coordination with the Government and other partners, in the fight against poverty . The Country Assistance Strategy (CAS) 1999-2002, developed in partnership with the Government and in consultation with civil society, the private sector and the donor community, is the current framework for fulfilling these goals. It lays out the World Bank program which consists of lending, advisory, and knowledge services.

The priorities set out in the Ten-Year Socio-economic Strategy (2001-2010) for Vietnam and the work on developing a Comprehensive Poverty Reduction Strategy for Vietnam will guide the priorities in the next CAS for Vietnam for 2003-2005. The new CAS will continue to build on the partnership approach which has been evolving in Vietnam over the last years between the Government and the donor community, and which has brought together a broad coalition of partners in attacking poverty

Currently, the World Bank provides primarily two types of assistance to Vietnam:

(1) the design and financing of development projects, and
(2) analytical work, policy advice, and technical assistance.

IDA credits are the primary source for financing development projects in Vietnam – all the credits support projects and programs focused on the key pillars of development. In 2001, IDA Loan commitments in Vietnam total US$629m (including a Poverty Reduction Support Credit), and there are currently 22 active IDA projects. Including six projects that have already closed, and three which have yet to come on stream, to date the World Bank has committed US$3.2bn to Vietnam to date. In addition, co-financing and trust funds provide important mechanisms to advance and implement the strategic agenda shared by the World Bank, the Government and development partners. These funds are the primary source for analytical work, policy advice and technical assistance focused on poverty reduction.






For more information, please contact:

In Hanoi: Andrew Steer, Country Director, or Hoang Thanh Ha, Phone: (84-4) 934-6600;
Fax: (84-4) 934-6597

In Washington, D.C.: Koichi Hasegawa or Hera Sutrisna, Phone: (1-202) 458-7847; Fax: (1-202) 522-1556

The Washington External Affairs Office
Jill Wilkins / Kimberly Versak
Tel: 202-473-1792 / 202-473-4919
Fax: 202-522-3405
Email: jwilkins@worldbank.org / kversak@worldbank.org


The World Bank Vietnam web site: http://www.worldbank.org.vn/ has a wide range of up to date information on both the World Bank's activities in Vietnam and those of the wider development community. Recent World Bank Vietnam documents are available in downloadable format.

The Vietnam Development Information Centre (VDIC), Ground Floor, 63 Ly Thai To, Hanoi, stocks a wide range of development literature on Vietnam. Website: http://www.vdic.org.vn/.

Progress in the Last Decade

In the last decade, Vietnam has greatly reduced the incidence of poverty – reflected both in rising per capita expenditure and in widespread reports of improvements in broad well-being. The proportion of people with per capita expenditures under the total poverty line dropped dramatically from 58 percent in 1992/93 to 37 percent in 1997/98. The number of people below a "food poverty line", which is lower, declined from 25 percent to 15 percent, indicating that even the very poorest segments of the population experienced improvements in their living standards between 1993 and 1998. While poverty incidence is still quite high in Vietnam, these declines over a period of only five years are very impressive. In recent years, almost no other country has recorded such a sharp decline in poverty in such a short period of time.

Declines in poverty levels in rural and urban areas have been matched with improvements in access to education and in access to infrastructure. Between 1993-1998, net primary school enrollment rates in rural areas have gone up from 85 to 91 percent. For urban areas, the net primary school enrollment rate has remained more or less unchanged at a high level of 96 percent. There has also been improved access to clean water supplies and sanitation facilities in both urban and rural areas. The rural population is less dependent now on river or lake water, with more people relying on water from drilled wells. In urban areas, more than half the population have access to piped water. Over 90 percent of the urban poor and nearly 60 percent of the rural poor have access to electric lighting.

Current Challenges

While the progress achieved over the past decade has been impressive by almost any standards, Vietnam remains a very poor country whose huge development potential is as yet largely untapped. While the share of the population in poverty has been cut in half over the past decade, some 30 million people, or around 37 percent of the population, are estimated to live in poverty. Currently, around 25 million people, accounting for 60 percent of the labor force, are unemployed or underemployed. And each year in the coming decade, over one million people will be added to the workforce.

In the period 2001-2010 Vietnam intends to build on the progress of the past decade to achieve the following quality of life targets, among others:


These are ambitious goals, but appropriate, and can be attained through rapid growth and a change in the structure of the economy to a more modern, industrial and urban one that can create better-paying jobs.

The Government and the international community are agreed on the importance of the six key development 'pillars' that will need to be built if the goals to be reached. These are:

World Bank Assistance to Vietnam

The 'pillars' of development are at the core of the World Bank's work in Vietnam and underpin all we do, in coordination with the Government and other partners, in the fight against poverty . The Country Assistance Strategy (CAS) 1999-2002, developed in partnership with the Government and in consultation with civil society, the private sector and the donor community, is the current framework for fulfilling these goals. It lays out the World Bank program which consists of lending, advisory, and knowledge services.

The priorities set out in the Ten-Year Socio-economic Strategy (2001-2010) for Vietnam and the work on developing a Comprehensive Poverty Reduction Strategy for Vietnam will guide the priorities in the next CAS for Vietnam for 2003-2005. The new CAS will continue to build on the partnership approach which has been evolving in Vietnam over the last years between the Government and the donor community, and which has brought together a broad coalition of partners in attacking poverty

Currently, the World Bank provides primarily two types of assistance to Vietnam:

(1) the design and financing of development projects, and
(2) analytical work, policy advice, and technical assistance.

IDA credits are the primary source for financing development projects in Vietnam – all the credits support projects and programs focused on the key pillars of development. In 2001, IDA Loan commitments in Vietnam total US$629m (including a Poverty Reduction Support Credit), and there are currently 22 active IDA projects. Including six projects that have already closed, and three which have yet to come on stream, to date the World Bank has committed US$3.2bn to Vietnam to date. In addition, co-financing and trust funds provide important mechanisms to advance and implement the strategic agenda shared by the World Bank, the Government and development partners. These funds are the primary source for analytical work, policy advice and technical assistance focused on poverty reduction.






For more information, please contact:

In Hanoi: Andrew Steer, Country Director, or Hoang Thanh Ha, Phone: (84-4) 934-6600;
Fax: (84-4) 934-6597

In Washington, D.C.: Koichi Hasegawa or Hera Sutrisna, Phone: (1-202) 458-7847; Fax: (1-202) 522-1556

The Washington External Affairs Office
Jill Wilkins / Kimberly Versak
Tel: 202-473-1792 / 202-473-4919
Fax: 202-522-3405
Email: jwilkins@worldbank.org / kversak@worldbank.org


The World Bank Vietnam web site: http://www.worldbank.org.vn/ has a wide range of up to date information on both the World Bank's activities in Vietnam and those of the wider development community. Recent World Bank Vietnam documents are available in downloadable format.

The Vietnam Development Information Centre (VDIC), Ground Floor, 63 Ly Thai To, Hanoi, stocks a wide range of development literature on Vietnam. Website: http://www.vdic.org.vn/.