Research On Economic Growth And Poverty Alleviation In Vietnam

Economic growth and poverty reduction in the market economy is the basic problem of all countries in the development process. High economic growth is fundamental factor to reduce poverty and to develop. Poverty reduction is a factor for ensuring sustainable economic growth. In fact, in the market economy, if we are only interested in fast economic growth, it will lead to disparities in levels of development and income between regions and population groups,thereby leading to an inequality situation, increasing wealth gap and to a certain extent, it will be one of the causes of social instability.Over the past 30 years of "Doi moi" renovation, thanks to sustained high economic growth, Vietnam has achieved outstanding successes in poverty reduction. However,the work of poverty reduction in Vietnam is not sustainable,in the context of international economic integration, many challenges are posed requiring appropriate policies to promote economic growth and promote the achievements of poverty reduction.The Doi Moi (Doi Moi) renovation, which began in 1986, has generated enormous success in Vietnam's socio-economic development. In order to address the harmonious relationship between economic growth and social justice, to ensure sustainable development, poverty reduction, since 1998, hunger eradication and poverty reduction has become a national target program and included in the five-year plan of the Government and localities, has gone through 3 stages (1998-2002, 2001-2005, 2006-2010). Addressing the problem of poverty is also a strong demonstration of the commitment of the Party and State of Vietnam to the international community in the achievement of the Millennium Development Goals (MDGs). . The Government of Vietnam has focused on directing and prioritizing resources for the implementation of hunger eradication and poverty reduction.Each phase has different contents and solutions, but it is aimed at the common goal of sustainable economic growth, raising the living standard of the people and quickly reducing the rate of poor households. Thanks to economic growth, the Government has the material strength to form and implement material and financial support programs for poorregions and localities, to develop economic and social infrastructure. Education, health.High economic growth has facilitated the development of rural occupations and the development of enterprises to create more off-farm employment and income generation for the poor. Since 1991, Vietnam has achieved an average annual GDP growth rate of 7.5%.Vietnam's economic growth and economic development have improved the quality of life for the people. Vietnam's per capita income has increased from $ 140 in 1989 to over$ 2,000 in 2015. The human development index of Vietnam has also increased, reflecting economic growth, hunger eradication and poverty reduction and inequality in the market economy of Vietnam. The human development index has increased from 0.590 in 1985 to 0.666 in 2015. High economic growth has brought a lot of advantages,increasing government revenues to increase government investment for education, health, social security,poverty reduction. Rapid growth benefiting the poor has been an important milestone in Vietnam's poverty reduction achievements for the last 30 years. Poverty rate has decreased continuously over the years, the quality of life of people, especially the poor has been improved. The average income of the 20% of the poorest has increased significantly. This shows that the poor benefits the achievements of economic growth-However,besides the achievements,Vietnam still has many difficulties. Economic growth is fast and high, but the quality of growth and efficiency is low. Economic efficiency is expressed through the efficient use of inputs such as capital, labor and resources. Capital factor accounting for 56% and labor factor comprising 15%, are still key contributors to economic growth, with only a small proportion of science and technology.That shows that exploiting factors into Vietnam's growth is not effective. Low growth efficiency is also reflected in high ICOR compared to other countries in the region. Poverty reduction in Vietnam is not sustainable and the risk of falling into poverty is high The achievements of poverty reduction is mainly to eliminate poverty in food and those who escape poverty are close to the poverty line,so they are at high risk of poverty,in the face of natural disasters, change of the policy and the impact of economic integration, the likelihood of falling back into poverty is enormous. The rate of poverty reduction in Vietnam tends to slow down and the rate of poor households is high. Income disparities tend to increase.This dissertation studies three main issues including economic growth, poverty reduction and the impact of economic growth in reducing poverty in Vietnam. Also,through previous studies and the experiences of some countries in the world,this thesis gives proposals and solutions to help Vietnam have the right direction for growth and poverty reduction. This minimizes the negative aspects that economic growth affect poverty reduction in Vietnam. Through analysis,it can be seen that, over the years,Vietnam has not stopped focusing on socio-economic development, and implementation of poverty reduction. For almost three decades, the growth of the Vietnam economy has changed people's lives positively. The innovation has not only attained successful achievements on economic growth, but also brought an impressive record of poverty reduction. Vietnam has been internationally appreciated for the success achieved in economic growth and poverty reduction. However, poverty reduction in Vietnam is still an important issue necessary to be resolved. Wealth disparity and uneven development between regions are increasing, they can cause negative social consequences.