microfinance industry report - Vietnam - Banking with the Poor Network

Table 1. Population and Demographic Data, Viet Nam, 2000-08
2000 2005 2006 2007 2008
Total Population (WDI/CIA 2008) 77.64m 83.10m 84.11m 85.2m 86.1m
Population growth (WDI/CIA 2008) 0.2 1.3 1.2 1.2 0.99%
Economically Active Population 69% 68.6% 68.6%
Adult literacy rates (HDR 2007) (1995-2005) 90.3% 90.3% .. .. ..
Life expectancy (WDI, 2008) 69 71 71 .. ..
% of population below the national poverty line 19.5% .. 16% 14.2% ..
Population density (ADB 2007) 236 252 254 257 ..
% of population in rural areas (ADB 2007/GSO) 75.8 73.1 72.88 70% ..
Human Development Index .. .. .. 0.733 ..
Human Development Ranking (out of 177) .. .. .. 105 ..
Sources: World Development Indicators (2008), Asian Development Bank (2007), Human Development Report (2007); GSO: Statistical Year Book of
Viet Nam, 2007.
Most low-income households are in rural areas 7 and
are predominantly engaged in agricultural crop
production and raising of small livestock, selling
any surplus produce at the local markets. Most of
these households 8 (86%) have access to land. In
addition to farming, at least 35% operate non-farm
household businesses 9 . The improvement of physical
infrastructure has contributed to the reduction of
poverty. Similarly, access to irrigation, high-value
crops (such as coffee, spices, shellfish or fish in
addition to rice) and to a local market positively
impacts income generation from both farm and
non-farm activities.
7 IMF: Country Report 07/386 Viet Nam, Statistical Appendix,
December 2007.
8 As microfinance is normally serving only one member of the
household, but benefiting the entire family, the market size is
often given in number of households.
9 World Bank: Viet Nam Development Report, 2004: Poverty.
The GDP per capita income has risen over the past few
years, from $410 in 2004 to $835 in 2007. However,
there is a large difference between the average per
capita incomes of $793/year for urban residents and
the rural average per capita income of $374/year
(2006). Poverty is more strongly related to ethnicity
than to geography and remoteness. In 2006, only 10%
of Kinh and Chinese were poor, while 52% of ethnic
minorities lived below the poverty line. Poverty is
vastly more persistent in the northern mountains,
Central Highlands, and along the flood-prone delta
coastlines where ethnic minority residents live.
For the first time in 13 years, urban poverty is
not declining. Currently, migrant workers receive
lower wages, lack access to social protections such
as health care, and their children cannot access
education without resident certificates.
Banking With The Poor Network 7
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