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VIETNAM

Last updated: 02 May 2004

DFID's development role in Vietnam is managed by DFID Vietnam (Hanoi)

Vietnam has made extraordinary progress in reducing poverty and increasing economic growth during the last 10 years. In 1992, 58% of the population had an income of less than $1 a day. By 2002, the number had halved to 29%. This is due to the commitment of the Government and people of Vietnam to develop their country, and the support of international donors.

However, that still leaves some 23 million Vietnamese people living in poverty today, and around 11% living in hunger. There is an increasing gap between rich and poor, and some areas of the country and groups of society, particularly ethnic minority people, are being left behind. The challenge now is a continued and sustainable reduction in poverty and increase in economic growth, and to ensure that everyone benefits.

DFID's programme in Vietnam supports the Government of Vietnam's own poverty reduction and economic growth strategy. Our programme is set out in our Country Assistance Plan 2004-06, which has three key objectives:

Objective (i): Promote the efficient, effective and equitable use of public financial resources, eg. by strengthening Government budgeting and planning processes and by supporting improvements in public financial management and efforts to tackle corruption.

Objective (ii): Strengthen the Government's efforts to achieve socially inclusive development and accountability to citizens, eg. by improving the quality and reach of education and transport services for poor people, by improving the Government's systems for gathering data about poverty and using it in policy making, and by supporting the Government's own programmes to help the poor.

Objective (iii): Support the process of economic and social change in Vietnam, eg. by supporting a wide range of economic and social reforms, providing our funds directly to the Government of Vietnam's budget, and helping the Government reform State Owned Enterprises and develop the private sector, which will create more jobs, including for poor people.

An objective which runs throughout our programme is helping to make the overall development effort in Vietnam (from Government, bilateral and multilateral donors and NGOs) coherent and well coordinated so that it will be as effective as possible. We do this by working where we can through the Government of Vietnam's own systems (and contribute to strengthening them) rather than creating new systems; and by financing our activities where possible with other donors to reduce the time Government officials have to spend dealing with donors.

As a result of Vietnam's rapid progress and the remaining need to reduce poverty and further increase growth, DFID is increasing its funding to Vietnam from £24 million in financial year 2003/04, to £60 million in financial year 2005/06.

Additional Information about DFID's involvement in Vietnam can be found in the current edition of Statistics on International Development and in the current DFID Departmental Report

The Vietnam Country Assistance Plan, available here in PDF, contains more detailed information about DFID's development objectives and commitments.

The Foreign & Commonwealth Office website here holds detailed information in its Country Profiles section. The 'World Factbook', accessible here, covers the following issues: Geography, Population, Government, Economy, Communications, Transportation, Military, and Transnational Issues.

Detailed statistical information, including indicators of social and economic development over the past thirty years, gender, health, nutrition and population statistics, is available from the World Bank Group at www.worldbank.org/data/countrydata/countrydata.html

For further information about DFID's development priorities and activity, contact: DFID Vietnam