Countries and Regions

	Table of Contents
p. 3 of 10 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program A. Progress in Poverty Reduction B. Progress in the Country Strategy and Program Focus Areas C. Highlights in Coordination of External Funding and Partnership Arrangements III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2006-2008: Viet Nam, Socialist Republic of : II. Implementation of the Country Strategy and Program

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A. Progress in Poverty Reduction

6. The Government is preparing new cycles of targeted poverty reduction programs such as hunger eradication and poverty reduction, and support to poor communes⁵. The SEDP aims to reduce the poverty rate to 15–18%,⁶ and increase the average per capita income to reach about $970 (at current price) by 2010. To achieve this, the SEDP has a target investment level of about 37.6% of GDP annually. The Government wants to ensure the target investment level, improve the productivity of capital, and make economic growth socially inclusive and environmentally sustainable. The Viet Nam Household and Living Standard Survey 2004 data is currently being processed; new poverty data will be available at year-end.

7. The country has made good progress in the social sectors, including the MDGs but more is desired. While education enrollment rates have increased, and three-shift classrooms largely eliminated, many deficiencies in the quality of education are apparent at all levels, particularly in upper secondary education. The Government is implementing a health care fund for the poor covering nearly 14 million people, administered either in a decentralized manner by the provinces or through the Social Insurance Agency. Measures were taken to contain HIV/AIDS and recurrence of avian flu. Rural infrastructure has been provided to more than 2,300 of the poorest communes included in the Government’s targeted poverty reduction program 135. The 2001–2005 Public Investment Program has increased the public investment capital allocated to the northern mountains, northern central region, and central highlands provinces to 24.3% of the total, up from 20.3% during 1996–2000; and budget allocations to the Government’s five targeted programs more closely associated with poverty reduction were increased. As for governance and public administration reform (PAR), civil servants’ salaries have been increased; and nationwide replication of a one-stop shop for administrative services delivery and lump-sum allocations to local governments for better expenditure management were announced. The Government’s progress report also noted

1. modest progress in implementing reforms in state-owned enterprises and commercial banks
2. a wider development gap between regions (with the central highlands and north central region falling behind)
3. continuing low quality of education
4. social issues such as drug addiction and low compliance with traffic law resulting in a high accident rate
5. still weak managerial capacity in public administration, particularly at local levels
6. an incomplete monitoring and evaluation system of public investment and reform implementation

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