Vietnam has been substantial improvements in terms of alleviating poverty throughout the country. According to the latest data available from the Government Statistics Office, the national poverty rate fell to 24.1% in 2003-04 from 28.9% in 2001-02, based on a poverty line that would allow a household to buy 2,100 calories worth of food per person daily and provide for basic needs such as shelter and clothing. With that being said, Vietnam still has quite a bit to go with combating the growing inequalities in this arena.
According to the EIU, Although income levels are rising, there is a fairly high degree of income inequality, and poverty will remain a serious problem in many parts of the country. According to the General Statistics Office, the percentage of people living in poverty (the poverty line is based on the cost of purchasing 2,100 calories of food per person per day, plus a modest quantity of non-food items) stood at about 24% in 2004. This was down from 28.9% in 2001-02. However, some areas suffer a much higher rate of poverty than the national average. In the north-west, for example, the poverty rate stood at 54% in 2004, and in the Central Highlands it was 32.7%, whereas in the south-east region it was only 6.7%.
The government will make progress in reducing the incidence of poverty. However, in most parts of the country market opportunities will still mainly be limited to the lower end of the market. Opportunities at the higher end of the market will be limited to the main urban areas, particularly the capital, Hanoi, and in Ho Chi Minh City, which is significantly richer than the rest of the country.
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