Modified
  May 07, 2001


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Viet Nam  -  Ho Chi Minh City

 

At the present, in Viet Nam there are 15 million people (20% of the national population) living in urban centers, of which the majority reside in HCM city and Ha Noi.  In the past 5 years, Vietnam has really succeeded in joining economic globalization process, especially cooperating with other Southeast Asian countries. HCM city has been leading in the high rate of economic growth, about 13 –15% per year. Official reports state that the average per capita income of Vietnamese increased from 182 US dollars to 350 US dollars between 1992 and 1997. The average income per capita of HCM city is three times higher than that of the all country.

 During this period the rate of poverty significantly decreased from 3.8 millions households (about 30% the total households in Viet Nam) to 2.4 millions (about 15.2%) in the end of 1998 according to the latest statistics. 90% of them are living in the rural areas.

Ho Chi Minh city, the largest and fastest developing city with the highest per capita income still has around 600,000 people (about 12% of the total population) classified as poor.  Although, this rate is the lowest compared to any other city in the country, the gap between the rich and poor is widest in the city. According to several social surveys, the majority of poor families still lag behind. In HCM city, only 25% have improved their situation and 50% have been worse during the past 5 years.

 Despite the great efforts of mass government program called Hunger Eradication and Poverty Reduction (HEPR) programme, which was first launched in 1992 at Ho Chi Minh city, many poor families living in critical situation have  still far reached by any government support. The first participatory poverty assessment supported by the World Bank and just completed last month shows that only few poor families even know about HEPR programme.  Moreover, because of its procedures and regulation itself the poorest families have often been excluded from HEPR. Local authorities give loan to only those who has legal registration papers (ho khau). For many reason, a majority of the poor families has no such legal papers, even though many have lived in the city for more than 15 – 20 years.

 On the other hand, to deal with urban poverty, city authorities mainly focus on distributing loans for income generating activities through mass organizations such as Women Union and Youth Union, whereas others needs of poor communities are neglected. There is no government program to support slum communities to improve the living conditions, since they all are under threat of eviction planning.  Slum is considered an eyesore to city authorities and target cleanup by the year 2020. The conventional housing approach in which the state companies demolish slum areas and build up low-cost public buildings is still dominant in the big cities of Vietnam.

 According to the HCM city official reports, in 1994 the number of slum units is 67,000 divided into two categories: slums on land and slums along canals.  However, these numbers are much lower than realistic numbers. Between these two slum areas, living conditions of families are more severe along the canals.  The fisrt large-scale survey of 25,945 slum households living along canals in 1995 shows that 95% of total units are seen as low-grade, in need of to be reconstruction. More than 62% of total households have no private latrines; more than 59 % have no directly access to piped-water supply and about 52% have no electric-meter.  Obviously, the poor families living along canals have been suffering from environmental degradation and they are also blamed for the cause of pollution.  Their houses obstruct the city’s natural waterway and are responsible for thousands kilograms of solid waste dumped per day into the canals. These indicators are drawn government’s intervention.

 The Nhieu Loc-Thi Nghe canals clearance project (NL-TN), the biggest on-going relocation program in HCM city, started in 1994.  This project has relocated more than 13,000 households with around 60,000 people aiming at three main objectives: city mordernization or beautification; environmental improvement and upgrading living conditions of poor families by moving them into the new high-rise public buildings.

 It is likely that the two first objectives are partly achieved and are requiring another millions dollars to invest in physical construction and technical treatment, which are waiting for the international donors like World Bank.  The third objective has obviously failed since most poor families have got little from government support.  Less than 40% of total households are legitimated to buy the flats in the public housing.  Many of them have finally sold out to the better off families and moved elsewhere.  This story is exactly the same that happened in low-income housing programmes in other Asian cities in the 1970s –1980s.

 The rest of the population, who are often the poorest groups get compensation in cash and resettle themselves.  Since the compensation were calculated by the housing situation and legacy, the amount were often very little, which made difficult for the poor families to move into decent houses. It is alarmed that they are creating the new slums in the suburban districts. Their living conditions now are even worst than before. Some are struggling to squatter the vacant lands nearby the new buildings in the center to sustain their daily incomes.  Therefore, to some extent, the urban master plan with physical biases has eventually ruined the poor communities and their social networks. The poor families end up with tragedy or even are more vulnerable in urban development projects. Then, the government’s good intention and objectives seem to be lip-services for the poor groups.

 Moreover, moving toward the market-oriented development, government has liberated several public services to private sectors like education and health.  It is likely that these cutbacks in public expenditures have made more difficult for the poor households. It is found that the majority of poor families cannot afford to send their children to school.  Especially for the parents have more than one child in school-age, often one child has to drop out of school to let another one in.  Therefore, the rate of dropping out of school is high. In the age group 15 to 19, less than 40% of the children in the urban centers in Vietnam have participated in school, in the rural areas this rate is even lower. The cycle of poverty seem not to end and the children of poor families will be caught in the same poverty trap in the future. Moreover, the number of children drop out of school and unemployed people prone easily to gambling, drugs and crimes.

 Associated with economic growth, the gap between rich and poor has widened and social problems become obvious in the recent years.  The city authorities call for mobilization of all the society to deal with these problems.  However, a lack of an integrated program for urban development, social issues are left in hands of the mass organizations, who has a little influence in the decision making process in urban management and development.  The community participation often employed in international non-government organization in the last decades is still at the experimental level.  This methodology seems to be accepted more openly in the rural areas than in the urban areas.

 In 1998, the government has launched a grass-root democracy decree, which aims at encouraging people participation in a range of management activities at the local level from controlling local budget to making implementation planning related to their life of community.  However, it depends on local authorities willingness and capacity. There is a long way from the national good intentions and decrees to the implementation in the real life.

 

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Send mail to Maurice Leonhardt    achr@loxinfo.co.th  with questions or comments about this web site.
Last modified: May 07, 2001