Vietnam Poverty And Shared Prosperity Update - Better Opportunities for All - June 2019

Jul 19, 2026

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Vietnam poverty began to decline more broadly, supported by fast-growing middle-class demand and favorable labor-market conditions that drove poverty reduction. The report focuses on better economic opportunities for all by tracing the evolution of rural incomes, including non-agricultural wage job creation, income diversification, and persistent gaps for disadvantaged groups. It analyzes where off-farm employment is determined by market access, economic distance, location, and individual attributes, and highlights entrenched disadvantages for ethnic minorities while proposing ways to enhance opportunities in agriculture.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages62

Reading Time2 h 36 min

Executive Summary

Background and Context

Recent Progress Retold

Poverty in Vietnam has started to decline more broadly

The middle class is growing fast

Favorable labor market conditions have been the key driver of poverty reduction

In Focus – Better Economic Opportunities for All

Evolution of Rural Incomes

Non-Agriculture Job Creation Has Transformed the Rural Economy

Income Diversification as a Winning Strategy

Disadvantaged Groups Lag in this Transformation

Enhancing Opportunities in Agriculture

Unlocking Untapped Agricultural Potential for the Poor

Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized BETTER OPPORTUNITIES FOR ALL VIETNAM POVERTY AND SHARED PROSPERITY UPDATE THE WORLD BANK June 2019 Regional Vice President : Victoria Kwakwa Country Director : Ousmane Dione Senior Practice Director : Carolina Sanchez-Paramo Practice Manager : Salman Zaidi Task Team Leader : Obert Pimhidzai BETTER OPPORTUNITIES FOR ALL Vietnam Poverty And Shared Prosperity Update THE WORLD BANK ACKNOWLEDGEMENTS This poverty and shared prosperity update report was prepared by Obert Pimhidzai (Senior Economist, GPV02) and Chiyu Niu (Economist, GPV02), with contributions from Tran Cong Thang (Vice Director General, IPSARD), Lan Vu Thi (Researcher, IPSARD), Hardwick Tchale (Senior Economist, GFA02) and Diji Chandrasekharan Behr (Senior Natural Resources Economist, GENE2) . The report was prepared with guidance from Salman Zaidi (Practice Manager, GPV02) . Peter Kjaer Milne (Consultant) edited the report. ii Better Opportunities for All TABLE OF CONTENTS ACKNOWLEDGEMENTS ............................................................................................................................................... ii EXECUTIVE SUMMARY................................................................................................................................................2 BACKGROUND AND CONTEXT.....................................................................................................................................5 RECENT PROGRESS RETOLD ......................................................................................................................... 6 Poverty in Vietnam has started to decline more broadly ..................................................................................6 The middle class is growing fast.....................................................................................................................6 Favorable labor market conditions have been the key driver of poverty reduction.............................................7 IN FOCUS – BETTER ECONOMIC OPPORTUNITIES FOR ALL .......................................................................... 7 EVOLUTION OF RURAL INCOMES ...............................................................................................................................9 NON-AGRICULTURE JOB CREATION HAS TRANSFORMED THE RURAL ECONOMY ...................................... 10 Vietnam is turning into a non-agricultural wage-based economy ...................................................................10 The rural labor force has peaked and income per worker is rising fast...........................................................10 Reallocation of rural labor from agricultural to non-agricultural activities in rural areas...................................11 The rise of rural wage work ..........................................................................................................................12 Overall dominance of non-agricultural incomes among rural households ......................................................13 INCOME DIVERSIFICATION AS A WINNING STRATEGY ................................................................................ 13 DISADVANTAGED GROUPS LAG IN THIS TRANSFORMATION ...................................................................... 15 Economic participation and earnings remain uneven ................................................................................. 15 SUMMARY ................................................................................................................................................... 16 DETERMINANTS OF OFF-FARM LABOR PARTICIPATION – LOCATION VS INDIVIDUAL ATTRIBUTES? ..................17 THE CONFLATION OF DETERMINANTS OF OFF-FARM EMPLOYMENT.......................................................... 18 Determinants

FAQs

What drove poverty reduction in Vietnam according to the report?

The report highlights favorable labor market conditions as a key driver, alongside broad declines in poverty and a rapidly growing middle class.

How has rural employment changed in Vietnam?

Non-agricultural wage-based jobs have transformed the rural economy, with rural labor reallocated from agricultural to non-agricultural activities and rural wage work rising.

What determines access to off-farm jobs?

The report states that market access and economic distance are primary determinants of job access, with location shaping opportunities, while individual characteristics determine who gets the jobs where opportunities exist.

Jul 19, 2026

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