[Vnbiz] Vietnam's impressive development rate

Tue Feb 19 14:33:59 PST 2008

Dear Anh Phong and CACC, 

Over the years of working with the World Bank in Vietnam, I can tell one
thing that I have learnt: the need to be extra careful in judging their
compliments. The Bank, in my judgement, has tended to be very sweet to
Vietnam, very often more than it should be. It tends to speak loud lots of
good things and pretty softly or quietly on what works not so well. If you
read the Harvard report on the Vietnam development policy, there is one
footnote saying pretty much the same thing.

I guess it is hard to blame any outsider for speaking well, or too well of
us, for whatever reason. What we need to be alert about is the sense of
complacency an overdose of praise might create. There are a lot of good
reasons to worry about the recent macroeconomic performance, and if I was
the Prime Minister, I would rather hear constructive criticism like the
Harvard report rather than this piece of compliments. 

Have a nice day!

Thanh An

email: thanhan2505 at gmail.com

  _____  

From: vnbiz-bounces at mail.saigon.com [mailto:vnbiz-bounces at mail.saigon.com]
On Behalf Of Hong-Phong_Pho at ita.doc.gov
Sent: 19 February 2008 20:38
To: vnbiz at vietlinks.net
Cc: vnbiz at vietlinks.net; vnbiz-bounces at mail.saigon.com
Subject: Re: [Vnbiz] Vietnam's impressive development rate

Same source in English, with more detail.   HPP 

Vietnam leads the way in tackling poverty 

Ajay Chhibber - World Bankbs country director for Vietnam 
The Banker 
February 04, 2008 

The declining poverty rate in Vietnam is due to the countrybs policy of
inclusive development, writes Ajay Chhibber. 

Over the past 15 years, Vietnam has achieved one of the worldbs fastest
declines in poverty. The countrybs poverty rate b measured as the
percentage of people who live below $1 a day b has declined from about 58%
in 1993 to 16% in 2006, and 34 million people have come out of poverty.
Steady and rapid growth in income, of about 7% to 8% a year, have been a key
factor in this reduction. 

But what marks Vietnam out from other-fast growing economies b such as
China and India b is the combination of spectacular growth with limited
increase in inequality. The Gini coefficient, a measure of income
inequality, has increased from 0.34 in 1993 to 0.36 in 2006 b lower than in
other emerging economies b which helps explain the dramatic poverty
reduction. The depth of poverty, measured by what proportion of the poor are
close to the poverty line, is declining rapidly, so we could expect many
more people to escape poverty in the near future. 

The secret of success 

So how has Vietnam succeeded? First, unlike in many other countries, growth
and poverty reduction has occurred in both rural and urban areas. While
urban poverty is much smaller b about 4% of the urban population in 2006 b
rural areas have also seen rapid poverty reduction. In 1993, two-thirds of
the rural population was considered poor, declining to one-fifth today. 

Second, the reduction in poverty has occurred in all parts of the country.
It is much lower in the Mekong and Red River delta than in other areas, but
the decline in poverty has also been felt in the Northern Mountain and
Central Highlands, where poverty is relatively higher. No region has been
left out. Third, poverty is much lower among the Kinh and Chinese people
compared to other ethnic minorities. But even among ethnic minorities, while
poverty remains high, it has shown a steady decline in the past 15 years, 

Three factors have led to Vietnambs inclusive growth so far b literacy,
trade and infrastructure. Vietnambs drive towards literacy began as early as
1945 and picked up through the 1970s and 1980s. A final major push for
universal literacy was made in the 1990s, when provincial and commune-level
literacy campaigns were launched. Today Vietnam has achieved more than 95%
literacy, higher than China and India, which has been a key factor in
achieving inclusive growth. 

Vietnambs openness to trade b at more than 150% (its trade ratio defined as
exports plus imports over GDP) is one of the highest in the world and has
been another key to inclusive growth. From a food deficit country in the
early 1990s, Vietnam has emerged as a big exporter of agricultural products.
The countrybs far-sighted bilateral and World Trade Organisation trade
agreements have also helped bring in huge levels of foreign direct
investment b almost $16bn, more than 20% of GDP in 2007 b and made it a
major exporter of apparel and light industrial products and wood products
with huge employment benefits to the economy. 

Finally, infrastructure b especially connectivity to rural areas, with one
of the worldbs most impressive rural electrification and rural roads
programmes b has ensured that remote areas are not left behind. Today,
almost 95% of Vietnamese households have electricity connections, compared
to only 50% in the early 1990s, and 90% of the population are within two
kilometres of an all-weather road. This has allowed connectivity between
rural and urban areas, to the major ports and transport networks, and access
to radio and television, even in remote areas. 

As Vietnam races toward an average income of $1000 and middle-income status
by 2009, the big question is whether the inclusive development pattern so
far can be sustained. To do so, Vietnam must help its citizens access higher
education, ensure that rural productivity is lifted as it industrialises
further, and that its ethnic minorities are provided opportunities to
develop so they are not left behind. It must also build modern social safety
nets for those who could be left behind and ensure that its growth does not
come at the cost of its environment. But as it meets these challenges,
Vietnam has left behind a record of inclusive development which others can
learn from. 

"Tran Dinh Hoanh" <tdhoanh at gmail.com> 
Sent by: vnbiz-bounces at mail.saigon.com 

02/16/2008 01:33 PM 

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[Vnbiz] Vietnam's impressive development rate

[ Vietnam Business Forum ]

Dear CACC, 

FYI, the following VNExpress article is quoting Ajay Chhibber, Worldbank
Representative in Vietnam, about Vietnam's impressive rate of development. 
Have a great day! 

Hoanh 
_____________ 

http://vnexpress.net/Vietnam/Kinh-doanh/2008/02/3B9FF4F9/ 

Tha;) ba:#y, 16/2/2008, 10:30 GMT+7 

Da; ma;- ca;-a thF0F!ng ma:!i VN thua;c hC ng cao nha:%t tha:? gia;i 

Trong ma;t bC i via:?t DD 

  _____  

ng trC*n ta:!p chC- The Banker (ca;'a Anh) ma;i DC"y, GiC!m Da;c NgC"n hC
ng tha:? gia;i (WB) ta:!i VN Ajay Chhibber cho hay, Da; ma;- ca;-a ca;'a
thF0F!ng ma:!i VN lC*n ta;i 150%. DC"y chC-nh lC chC,a khC3a da:+n ta;i thC
nh cC4ng va; tD 
  _____  

ng trF0a;-ng trong hF!n ma;t tha:-p ka;7 qua.   

Theo C4ng Ajay, ta;+ ma;t nF0a;c pha:#i nha:-p kha:)u lF0F!ng tha;1c Da:?n
ta:-n Da:'u nha;/ng nD 

  _____  

m 90, Via;t Nam DC# na;i lC*n lC ma;t nF0a;c xua:%t kha:)u nC4ng sa:#n
la;n. Nha;/ng hia;p Da;
nh thF0F!ng ma:!i song phF0F!ng, vC via;c gia nha:-p WTO DC# Dem la:!i
ngua;n Da:'u tF0 tra;1c tia:?p nF0a;c ngoC i la;n - khoa:#ng 16 ta;7 USD,
hF!n 20% GDP nD 
  _____  

m 2007. Via;t Nam DC# tra;- thC nh ma;t nhC xua:%t kha:)u cC!c sa:#n pha:)m
may ma:7c, cC4ng nghia;p nha:9 vC ga; la;n trC*n tha:? gia;i va;i nhia;u
la;#i C-ch va; cC4ng D 
  _____  

n via;c lC m cho na;n kinh ta:?. 

Trong bC i via:?t ca;'a mC,nh, C4ng Ajay DC!nh giC!, trong 15 nD 

  _____  

m qua, Via;t Nam DC# lC ma;t trong nha;/ng nF0a;c Da:!t DF0a;#c ta;c
Da; gia:#m nghC(o nhanh nha:%t trC*n tha:? gia;i. Ta;7 la; nghC(o DC3i
DC# gia:#m ta;+ 58% nD 
  _____  

m 1993 xua;ng 16% nD 
  _____  

m 2006, va;i khoa:#ng 34 tria;u ngF0a;i DC# thoC!t kha;i nghC(o DC3i. "TD 
  _____  

ng trF0a;-ng nhanh vC liC*n ta;%c, va;i ta;c Da; khoa:#ng 7% Da:?n 8%
ma;i nD 
  _____  

m, lC ma;t ya:?u ta; quan tra;ng trong via;c gia:#m nghC(o", C4ng nha:-n
Da;
nh. 

VN DF0a;#c xem lC nF0a;c thC nh cC4ng trong via;c xC3a DC3i gia:#m nghC(o.

a:"nh: HoC ng HC .

NhF0ng Dia;u lC m cho Via;t Nam khC!c va;i nha;/ng na;n kinh ta:? ma;i
na;i khC!c, nhF0 Trung Qua;c hay a:$n Da;, theo GiC!m Da;c WB - lC via;c
tD 

  _____  

ng trF0a;-ng kinh ta:? nhanh nhF0ng cE)ng ha:!n cha:? DF0a;#c ta;c Da;
gia tD 
  _____  

ng ba:%t bC,nh Da:3ng. Ha; sa; Gini, ma;t cha; sa; xem xC)t ba:%t bC,nh
Da:3ng thu nha:-p, cha; tD 
  _____  

ng ta;+ 0,34 nD 
  _____  

m 1993 lC*n 0,36 nD 
  _____  

m 2006 b tha:%p hF!n cC!c na;n kinh ta:? ma;i na;i khC!c. 

KhC4ng gia;ng nhF0 cC!c nF0a;c Dang phC!t tria; 

  _____  

n khC!c, tD 
  _____  

ng trF0a;-ng vC gia:#m nghC(o ca;'a Via;t Nam DC# dia;n ra Da;ng Da;u
ca:# a;- khu va;1c thC nh tha;
 vC nC4ng thC4n. Trong khi ta;7 la; nghC(o DC4 tha;
 tha:%p, khoa:#ng 4% ta;ng sa; dC"n DC4 tha;
 nD 
  _____  

m 2006, thC, ta;7 la; nC y a;- khu va;1c nC4ng thC4n cE)ng Dang gia:#m
nhanh. ND 
  _____  

m 1993, khoa:#ng 2/3 dC"n sa; nC4ng thC4n ba;
 coi lC nghC(o, nay con sa; nC y xua;ng cC2n 1/5. 

HC Vy

-- 
Tran Dinh Hoanh, Esq., LLB, JD
Washington DC _______________________________________________
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