INCLUSIVE ECONOMIC GROWTH AND THE POVERTY TRAP IN VIETNAM
DOI:
https://doi.org/10.54163/ncdt/318Abstract
This article focuses on analyzing the relationship between economic growth model and poverty situation in Vietnam. Through a synthesis of fundamental theories of inclusive growth and empirical evidence on poverty traps, the research shows that: (i) Despite achieving high and impressive growth rates, the inclusiveness of Vietnam's growth model is still limited, as shown by the fact that a segment of the population is still left behind; (ii) The persistence of poverty and inequality of opportunity is a significant challenge, with the risk of creating “poverty traps” that make it difficult for the poor to escape poverty sustainably; (iii) To fully address this issue, there needs to be a strong shift to a more inclusive growth model, focusing on creating good jobs, improving access to basic social services and strengthening the social security system for the poor, alongside policies to promote productivity growth. From there, the research also proposes some specific policy recommendations to realize inclusive growth and sustainable poverty reduction.
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