SHOWCASE: Ethnic women in Quảng Ngãi Province and their traditional handloom weaving fabrics. Essential infrastructure investments in remote, mountainous and other disadvantaged areas are helping lay the foundation for socio-economic development. VNA/VNS Photo Khoa Chương

Since the launch of wide-ranging economic reforms in 1986, Việt Nam has achieved a miracle in poverty reduction, lifting tens of millions out of hunger and helping them secure stable livelihoods. This success reflects a strategic vision, methodical policies and concerted efforts by the entire society.

1993–2000: Laying the foundation

After national reunification on April 30, 1975, Việt Nam faced an underdeveloped agricultural economy, with more than 70 per cent of households living in poverty. A historic turning point came with the 1986 Đổi mới (Renewal) policy, which shifted the country from a centrally planned economy to a socialist-oriented market economy, opening a path out of poverty for millions.

In 1993, Việt Nam introduced its first national poverty line based on income, laying the groundwork for future poverty reduction policies. That same year, the Government launched the national programme on hunger eradication and poverty reduction, focusing on production support, infrastructure development, and concessional credit for the poor.

A landmark initiative came in 1998 when the Government approved the programme on socio-economic development in mountainous and remote communes with special difficulties.

The programme invested in essential infrastructure, improved production conditions and enhanced the capacity of communities and local officials. Thousands of kilometres of rural roads, hundreds of schools, health stations and bridges were constructed, creating a breakthrough in rural infrastructure.

According to the World Bank, Việt Nam’s poverty rate fell from 58 per cent in 1993 to around 37 per cent in 1998, making it one of the fastest poverty reduction success stories in the world at that time.

2001–2010: Early achievements

Entering the 21st century, Việt Nam advanced to a new development phase, pursuing industrialisation and modernisation alongside sustainable development.

Poverty reduction was identified as a top priority, implemented through national target programmes during the decade, with a focus on supporting livelihoods, building infrastructure, developing human resources, and expanding basic social services.

A notable development during this period was that assistance was extended to near-poor households and vulnerable groups affected by natural disasters, unemployment or illness.

Breakthrough policies included measures on land, housing and clean water support for ethnic minority households facing hardship, and housing support for the poor. Also significant was legislation that supported fast and sustainable poverty elimination in more than 60 poor districts. Concessional loans through the Vietnam Bank for Social Policies also helped millions of households secure production funding and stable livelihoods.

Thanks to the strong leadership of the Việt Nam Communist Party and State, and the engagement of the entire society, the household poverty rate again dropped sharply from 37.4 per cent in 1998 to 9.45 per cent in 2010 (according to the standards of the time).

Notably, in 2008, Việt Nam achieved the UN Millennium Development Goal on poverty reduction seven years ahead of the 2015 deadline. This achievement was hailed internationally as one of the most successful examples in the Asia-Pacific region.

Progress was also made in education, health care, gender equality and social security, with essential infrastructure investments in remote, mountainous and disadvantaged areas laying the foundation for later socio-economic development.

2011–2020: Poverty alleviation

Việt Nam entered a new decade with a higher aim: not only reducing poverty but also ensuring quality and sustainability. The Government launched the Sustainable Development Strategy of Việt Nam for 2011–2020 and national target programmes for sustainable poverty reduction across the decade. These initiatives aimed both to lower poverty rates and to narrow development gaps among regions.

FOR THE FUTURE: Việt Nam is improving the livelihoods of its population, contributing to hunger eradication and poverty reduction. VNA/VNS Illustrative Photo

Notable measures included concessional credit for poor, near-poor and ethnic minority households, housing support for contributors to the revolution and low-income earners in rural areas, the new-style rural area development programme, and directives issued in 2011 on sustainable poverty reduction, emphasising a human-rights-based and comprehensive development-based approach.

In 2016, Việt Nam was among the first countries globally to adopt a multidimensional poverty standard, defining poverty not only by income but also by access to health care, education, clean water, information, and social insurance. The move marked a great stride in the modern social policy.

As a result, in this decade, the household poverty rate nationwide fell by 1–1.5 per cent per year, standing at around 2.75 per cent in 2020 under the multidimensional poverty standard.

Average incomes of poor households increased by more than 1.6 times compared to 2015. Previously impoverished provinces, including Hà Giang, Điện Biên, Quảng Bình, and Kon Tum, made significant progress in infrastructure and living standards.

The UN and World Bank recognised Việt Nam as one of the few countries maintaining sustainable poverty elimination amid global economic crises, pandemics and climate change, demonstrating the effectiveness of a people-centred approach with active facilitation by the State and broad societal participation.

2021–Present: Inclusive reductions

The 13th National Party Congress emphasised continuing multidimensional, inclusive and sustainable poverty reduction, aiming for an annual 1–1.5 per cent reduction in multidimensional poverty. In 2021, the Party Central Committee’s Secretariat issued Directive 05 to strengthen the Party's leadership over sustainable poverty reduction through 2030.

Since 2021, in addition to the continued implementation of the sustainable poverty reduction initiatives and new-style rural area development, the National Assembly approved a plan on socio-economic development in ethnic minority and mountainous areas towards 2030.

The Politburo also issued six resolutions outlining socio-economic development directions, as well as national defence and security objectives for six regions across the country through to 2030, with a vision towards 2045. Each resolution sets specific targets for sustainable poverty reduction in its respective region.

The Government has also rolled out a range of key policies, including a preferential credit scheme for poor and near-poor households, livelihood support for ethnic minority and mountainous areas, and an initiative for one million social housing units, alongside other national plans on social welfare and rural development.

Thanks to these moves, encouraging results have been recorded. By the end of 2024, multidimensional poverty, including poor and near-poor households, had fallen to around 4.06 per cent nationwide. Disadvantaged districts saw an average annual poverty decline of over 6 per cent, exceeding the target of 4–5 per cent.

Millions of households have also gained access to concessional loans, health care, education, housing, clean water, and information.

Beyond material support, current poverty reduction efforts also focus on human development and enhancing low-income earners' self-reliance. Livelihood models adapted to climate change in the Mekong Delta, crop and livestock diversification in the Central Highlands, and community-based tourism in northern mountainous provinces have created jobs, increased incomes, and contributed to sustainable poverty reduction.

Over the past four decades, Việt Nam has achieved humane, effective poverty reduction, combining sound policies, political will and community strength. From a nation struggling with hunger, it has become a global model for poverty reduction.

Yet the journey continues. In the new context, poverty encompasses not only a lack of material resources but also limited opportunities and access to knowledge.

Việt Nam will continue to innovate and act boldly, thereby ensuring no one is left behind on the path to development. VNA/VNS