Economic reforms, household expenditures and poverty in the Mekong River Delta, Vietnam: The economic transition period of 1986-2006

Abstract

This study is to provide an overview of the economic renovation process started in 1986 in Vietnam and its impact on household expenditures and poverty in the Mekong River Delta, Vietnam using data over a thirteen-year period from 1993 to 2006. A number of results emerges from this study. Firstly, results show that between 1993 and 2006, while the PCE for each household group increases sharply. Especially, this pattern of increasing growth in PCE for non-farming households begins emerging in 1998 and by 2006 their PCEs are higher than that of farming households. Besides, the sharper decline in poverty of non-farm manual work group suggests that the returns to such activities are higher than returns from farm work. Finally, another important result from this analysis is that over this period there has been a sharp reduction in poverty which has not been accompanied by sharp increases in inequality.