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Urban Poverty in Vietnam: Determinants and Policy Implications

Nguyen Viet, Cuong and Vu Hoang, Linh and Nguyen, Thang (2010): Urban Poverty in Vietnam: Determinants and Policy Implications.

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Abstract

This study examines the profile and determinants of poverty in the two largest cities in Vietnam – Hanoi and Ho Chi Minh. Data used in this study are from the 2009 Urban Poverty Survey. Using the poverty line of 12,000 thousand VND/year, the poverty incidence is estimated at 17.4 percent for Hanoi and 12.5 percent for Ho Chi Minh (HCM) city. There is a large proportion of the poor who are found stochastically poor. Hanoi has higher rates of structurally poverty than HCM city. The proportion of structurally poor and stochastically non-poor is rather small. Overall, the poor have fewer assets than the non-poor. The poor also have poorer housing conditions, especially they have much lower access to tap water than the non-poor. Heads of the poor households tend to have lower education and unskilled works than the heads of the non-poor households.

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