Vietnam to Allocate $3.3B for Poverty Reduction in 2016

Vietnam’s Prime Minister Nguyen Xuan Phuc has okayed to allocate an estimated VND73.3 trillion ($3.3 billion) to poverty reduction programs in 2016, state media reported. The total amount will include VND59 trillion to be spent on agriculture and livelihood projects managed by central agencies and ministries and the remaining will be given to localities for communication projects on poverty reduction. The Ministry of Finance needs to assume responsibilities for the accuracy of the reports submitted by state agencies and local authorities on expenses for the programs. The PM also highlighted the effective use of the money. Last year, the National Assembly (NA), the country’s highest legislative body, adopted two National Target Programs with the focus on sustainable poverty reduction and rural development for the 2016-2020 at a cost of VND240 trillion ($10.76 billion). Vietnam said that it spent an estimated VND864 trillion ($41.14 billion) on fighting against poverty during 2005-2012. The programs over the years benefit 531,000 poor households, reducing the poverty rate to 7.8% in 2013 from 22% in 2005. But it is believed that a large amount of the annual spending has gone to feed the administration system instead. Meanwhile, the number of ultra high-net-worth individuals (UHNWIs) – who own at least $30 million each – in Vietnam was 168 in 2015, rising 12 from a year earlier, according to Knight Frank’s Annual Wealth Report 2016. But, local observers believed that the number of millionaires in Vietnam is much more than the surveys by foreign organization as the majority of rich people in the country are state officials or those backed by authorities in the country, where corruption perception index remained low at 31 out of 100 scores for the past four years. (Nongnghiep.vn Aug 9, www.baonghean.vn Aug 7)