GENERAL STATISTICS OFFICETHE TREND OF INEQUALITY IN INCOME DISTRIBUTION IN VIETNAM 2016-2020 PERIODIn the period 2016-2020, Vietnam’s economy grew at an average rate of 6.78% in the period 2016-2019 and 2020 due to the impact of the covid-19 pandemic negatively affecting the economic sectors. Socio-economic, our country still achieved the highest growth rate in the world with an increase of 2.91%. Economic achievements have spread to the lives of all classes of people in society. The income of population groups increased from 3.1 million VND/month/person in 2016 to 4.2 million in 2020, but the income growth rate of the poorest group is always lower than that of the richest group, so the gap between rich and poor increasingly increasing. However, income inequality among classes of the population is decreasing as the GINI coefficient decreases from 0.431 in 2016 to 0.373 in 2020.
Through the GINI coefficient in the period 2016-2020, it shows that income inequality in our country does not fluctuate much, decreasing from 0.431 to 0.373 and is within a safe, efficient and suitable threshold for high growth. In urban, people are more equal and easier to access development opportunities in terms of education and work skills through education, so income inequality is always lower than in rural.
This Southeast Asian country is set to see the sharpest spike in wealth growth over the next decadehttps://www.cnbc.com/2024/02/21/vietnam-to-see-highest-increase-in-wealth-growth-over-the-next-decade.html#:~:text=Vietn"Vietnam is set to see the sharpest spike in wealth growth over the next decade as it cements its status as a global manufacturing hub, according to a report by global wealth intelligence firm New World Wealth and investment migration advisors Henley & Partners.
The Southeast Asian country is forecast to see a 125% increase in wealth over the next 10 years, Andrew Amoils, New World Wealth’s analyst, told CNBC. This would be the largest expansion in wealth of any country in terms of GDP per capita and number of millionaires, according to the firm’s analysis.
https://vietnam.gov.vn/economy-68968Việt Nam's renovation cause has been carried out for nearly 20 years. During this period, the country has obtained many considerable achievements in different aspects, improving the country's situation and people's life.
* Việt Nam has got out of its crisis, the economic growth rate constantly increases by years:
- Agro-forestry-fishery sector has risen up by 5.5% per year on average; food production increased fast from 19.5 million tons in 1988 to 21.7 million in 1991, 32.1 million in 2001 and 39.2 million in 2005. After 19 years, the country produced 20 million tons of food to feed nearly 84 million people and 5 million tons of rice for national reserve. Việt Nam ranks second in exporting rice, cashew nut and coffee, fourth in rubber and first in cashew nuts;
- Industry and construction have continuously gained a high growth rate. The production structure, product quality and competitiveness have been improved; industrial production value has gone up by 15% per year and the surplus value by 10%. Some products can compete on domestic and foreign markets;
- Services have been developed in scope, branches and market. Their efficiency has been raised, attracting the participation of different economic sectors. The sector's production value has increased by over 7.5% per year. In 2005, the surplus value reached 8.5%, higher than GDP (8.4%);
* Economic structure has been actively shifted to industrialization and modernization; production compatible to market;
- Agro-forestry-fishery's proportion was reduced from 46.3% in 1988 to 20.9% in 2005;
- Proportion of industry and construction rose rapidly and constantly from 21.6% in 1988 to 41% in 2005. For the first time, in 2005, 20 million tons of crude oil were exploited. Processing industry accounts for 80% of the industrial yield;
- Proportion of the service sector went up from 33.1% in 1988 to 38.1% in 2005. Tourism, post and telecommunication, banking, finance and currency, legal consultancy have developed fast;
- Labor structure has been changed. Labor force in agro-forestry-fishery decreased from 73% in 1990 to 56.8% in 2000 but increased from 12.1% to 17.9% and from 19.7% to 25.3% in the same duration in industry-construction and services respectively. The number of trained laborers also rose from 20% in 2000 to 25% in 2005;
* The guideline to develop a multi-sector economy has been carried out effectively; potential of different economic sectors have been brought into play:
- State-run economy has been restructured; the management method renewed to improve business quality and efficiency; key branches and fields of the economy focused. In 1990, the number of State-run enterprises was 12,084. After ten years of restructuring (1995-2005), there remained 2,980 enterprises with 100% of State capital and 670 joint-stock companies in which the State holds 51% of the charter capital. In 2005, State-run enterprises contributed 38.5% GDP and about 50% of the total State budget;
- Non-State economy has developed quick. By the early 2006, Việt Nam had 170,000 non-State enterprises. In 2005, this sector accounted for 46% GDP, in which cooperative economy contributed 87% and private economy 38%;
- FDI economy, with a high growth rate, has become an important component of the national economy. Per capita FDI in Việt Nam is higher than in China and India (according to the Sun Times in Hong Kong, 28-29 April 2006). FDI is the important bridge to the world in the fields of technological transfer and international exchange. In 2005 only, this sector contributed 15.5% GDP, over 7.5% of the total State budget, over 17.1% of the total social investment capital, over 23% of export turnover (excluding oil and gas), achieving over 35% of the industrial production value and attracting over 900,00 direct laborers and millions of indirect employees;
* Socialist-oriented market economy has been formed and macro economy stabilized:
- Over the past 20 years, the system of laws, policies and regime of a socialist-oriented market economy have been set up. Operations of different kinds of enterprises in the multi-sector economy and the State management apparatus have been renovated. The State has gradually separated the State management function over economy from the business function of enterprises, shifting from direct intervention into the economy and enterprises' activities to indirect intervention through laws, plans, regimes, policies and other macro regulating instruments;
- Fundamental kinds of markets have been developed and controlled properly under a new mechanism. The commodity market has developed in a large scale and at high rate. The markets of services, labor, science and technology, and fixed asset have been formed;
- The economy's macro balances have been stabilized, creating a favorable environment and conditions for economic development;
- Financial potential has been strengthened, budget collection increased by 18% per year and the average expense for development investment reached about 30% of the total budget expenditure. The commodity-currency is proper, ensuring primary goods for production and life. The average increase of consumption prices increases is lower than the growth of GDP.
* International and regional integration and external economy have achieved considerable results:
- Việt Nam has joined the ASEAN, fulfilling her commitments on AFTA;
- In 1990, bilateral trade agreements were signed with many countries;
- The Việt Nam-EU Trade Agreement was signed in 1995;
- In 1998, Việt Nam was one of the initiators and first members of APEC;
- In 2001, the Việt Nam-US Trade Agreement made;
- By 2005, Việt Nam established commercial relations with 221 countries and territories;
- In November 2006, Việt Nam became a full member of WTO;
- Export and import have increased rapidly in scope and rate. The total export turnover reached US$ 25 billion in 2005 against US$ 1 billion per year before 1986;
- In the period 2000-2005, import increased by 19% annually; excess of imports over exports is now US$ 4 billion per year.
* Soundly developing economy and dealing with social issues, so the life of the majority of people has been improved:
- The relationship between economic growth and cultural development has been effectively dealt with; social progress and equality realized; opportunities for development broadened to different economic sectors and social strata; citizen's creativity and initiative raised;
- Job generation and poverty reduction has achieved promising results, surpassing the millennium development targets set by the UN. During 2000-2005, 7.5 million jobs were created. By 2005, unemployment in urban areas remained 5.3%. The proportion of time spent by peasants on farm work in rural areas reached 80%. Poverty rate was reduced from 50% in 1990 to 7% in 2005 (the criteria for poverty has been raised from US$ 1/person/day to US$ 2/person/day).