Poverty alleviation has consistently been a major policy of the Party and State throughout the country’s renovation process, while also being a pillar of the social security and sustainable development policy system. Reviewing 40 years of poverty alleviation policies is significant both theoretically and practically, providing a scientific basis for proposing strategic directions in the new context.
From initially focusing on addressing hunger and ensuring basic needs, policies have gradually shifted towards creating livelihoods, improving capabilities, reducing multidimensional poverty, and fostering human development. As a result, poverty rates have declined rapidly over successive periods and living standards have steadily improved, contributing to inclusive growth, political stability, and Viet Nam's enhanced international standing.
However, as Viet Nam enters a new stage of development and moves towards the goal of becoming a developed, high-income country by 2045, poverty alleviation can no longer focus solely on income. It is increasingly linked to access to basic social services, improving the quality of human resources, and strengthening resilience to socio-economic risks. This requires the policy system to continue evolving in a modern and inclusive direction, with people at its centre.
The process of thinking development and policies on poverty alleviation
The evolution and poverty alleviation thinking and policies in Viet Nam over 40 years of renovation can be seen through four historic shifts:
The 1986-1995 period: From emergency hunger relief to ensuring food security. At the beginning of the renovation period, Viet Nam was one of the poorest countries in the world, with GDP per capita of only around 95-100 USD, while inflation reached 774% in 1986. Economic reform policies, particularly the “Khoan 10" policy for agriculture under Politburo Resolution No. 10 in 1988 and market mechanism reforms, created an important turning point, transforming Viet Nam from a food-deficient country into a rice-exporting nation from 1989. Food security has been ensured, providing a solid foundation for poverty alleviation. According to the World Bank (WB), Viet Nam’s poverty rate stood at 58.1% in 1993, reflecting its low starting point while also demonstrating the country’s considerable efforts.
The 1996-2010 period: Institutionalising policies and establishing national target programmes. This period marked the institutionalisation of the poverty alleviation policy system through large-scale programmes, including the National Target Programme on Hunger Eradication and Poverty Reduction; Programme 135 to support especially disadvantaged communes in ethnic minority and mountainous areas; Programme 134 to provide support for residential land, production land, housing, and household water; and the establishment of the Viet Nam Bank for Social Policies in 2002 to provide preferential credit. A key feature was the shift from individual supports to an integrated approach combining investment in infrastructure, credit, education, healthcare, and vocational training. The poverty rate fell sharply from 58.1% in 1993 to 14.2% in 2010, making Viet Nam a success story in achieving the Millennium Development Goals (MDGs).
The 2011-2020 period: A strong shift towards sustainable and multidimensional poverty alleviation. Resolution No. 80/NQ-CP in 2011 established the viewpoint of sustainable poverty alleviation, shifting the focus from income support towards creating opportunities to access basic social services. In 2016, Viet Nam officially adopted multidimensional poverty standards, adding criteria relating to education, healthcare, housing, clean water, sanitation, and information. The rate of poor households under the national poverty standard fell from 14.2% in 2010 to 2.75% in 2020. Under the poverty standard for lower-middle-income countries (3.2 USD PPP per day), the poverty rate fell from 16.8% to 5.0%, lifting more than 10 million people out of poverty during the decade.
The 2021-2026 period: Multidimensional, inclusive poverty alleviation adapted to the new context. Amid the impacts of the pandemic, digital transformation, climate change, and population ageing, poverty alleviation policies have continued to evolve with a people-centred approach. The focus has been on the coordinated implementation of three National Target Programmes: Sustainable Poverty Reduction, New Rural Development, and Socio-economic Development in Ethnic Minority and Mountainous Areas. Resolution No. 42-NQ/TW in 2023 established a direction towards building a comprehensive, modern, and inclusive social policy system, marking a shift from “poverty alleviation” to “human development”. During the 2021-2025 period, the multidimensional poverty rate fell by an average of 1.03%/year, while the rate of poor districts fell by 6.7%/year. By the end of 2024, the national poor household rate stood at 1.93%, falling to around 1.3% in 2025.
Major achievements and limitations, challenges
Major achievements:
First, a sharp reduction in poverty rate and a clear improvement in people’s living standards. The poverty rate fell from 58.1% in 1993 to around 1.3% in 2025. GDP per capita increased from around 100 USD in the 1980s to 5,026 USD in 2025. Tens of millions of people have sustainably escaped poverty.
Second, a shift from direct assistance towards sustainable livelihood development. Policy-based credit and vocational training have gradually replaced passive welfare support. During the 2021-2025 period, the Viet Nam Bank for Social Policies provided loans to more than 10.6 million poor households and policy beneficiaries, with total lending exceeding 517 trillion VND, helping to create jobs and strengthen self-reliance.
Third, narrowing regional development gaps and improving security infrastructure. Prioritised resources have been given to areas at the “core” of poverty, ethnic minority, and mountainous areas. In particular, the campaign “The Whole Nation Joins Hands to Eliminate Temporary and Dilapidated Houses”, together with national target programmes, has fundamentally improved transport infrastructure, electricity, schools, healthcare facilities, and clean water.
Fourth, strengthening socio-political stability and national unity bloc. Poverty alleviation has contributed to improving people’s living standards, strengthening public confidence in the Party and State, and maintaining political security and social order and safety.
Fifth, enhancing Viet Nam’s international position and prestige. The WB and UNDP have recognised Viet Nam as a successful model of poverty alleviation and a pioneering nation in applying multidimensional poverty standards, contributing to improvements in the Human Development Index (HDI).
Limitations and challenges: The risk of falling back into poverty remains high in the face of natural disasters and climate change; gaps between rich and poor regions remain significant; poor people face barriers to digital skills; rapid population ageing is creating additional pressure; and some people still have a mindset of relying on and expecting support policies.
Lessons learned from practice
First, it is necessary to ensure unified Party leadership and the State’s development-oriented role, considering poverty alleviation a central and overarching political task.
Second, shift from a mindset of providing support to developing people’s capacity for self-reliance, moving from “giving people what they need” to empowering them and creating opportunities for sustainable livelihoods.
Third, it is necessary to integrate policies, diversify resources, and combine state budget funding with contributions from businesses, communities, and international organisations.
Fourth, poverty standards should be renewed and governance methods modernised through digital transformation and national population data to ensure accuracy, publicity, and transparency.
Fifth, poverty alleviation should be linked to human development, ensuring inclusive social security, and leaving no one behind.
Directions for renewing poverty alleviation policies in the new context
Towards the goal of becoming a developed, high-income country by 2045, poverty alleviation efforts should focus on the following strategic directions:
First, improve institutions and renew poverty alleviation thinking towards inclusive development. Shift strongly from passive support towards creating a development-enabling environment, making people the key actors, and encouraging self-reliant spirit and efforts to improve their own circumstances. Integrate poverty alleviation policies into overall socio-economic development strategies.
Second, renew poverty alleviation governance methods through digital technology. Continue to improve multidimensional poverty standards while enhancing the quality of basic social services. Strengthen the application of information technology and digitise social security data to manage and allocate resources accurately and effectively.
Third, prioritise resources for areas at the “core” of poverty and develop green and sustainable livelihoods. Focus investment on connectivity infrastructure, education, healthcare, vocational training, and policy-based credit for ethnic minority, mountainous, border, and island areas; and support the transfer of livelihood technologies adapted to climate change.
Fourth, mobilise the participation of the entire society and strengthen international cooperation. Promote the role of the Viet Nam Fatherland Front, businesses, and social organisations; expand international cooperation to learn from experience and mobilise resources for the effective implementation of the Sustainable Development Goals (SDGs).
The 40-year renovation journey (1986-2026) has witnessed a historic transformation in Viet Nam’s hunger eradication and poverty reduction policy — from emergency relief to capacity development, and from single-dimensional poverty reduction to multidimensional poverty alleviation and inclusive social security. As Viet Nam enters a new era of development, with the poverty rate having fallen to a low level, the policy focus should shift strongly from “reducing the rate of poor households” to “improving the quality of poverty escape and preventing people from falling back into poverty.” Placing human development at the centre, harmoniously combining economic growth with social progress and equity is the key for Viet Nam to sustain its poverty reduction achievements, move towards rapid and sustainable development, and build a prosperous and happy nation.
