The Influence of Inter-Provincial Migration and Remittance Flows on Poverty Reduction in Vietnam

Scott R. Sanders, Cornell University

In the 1980’s Vietnam was one of the poorest countries in the world and suffered from a poverty rate of over 75%. In an attempt to combat poverty and stimulate the economy, the Vietnamese government introduced Đổi mới (renovation) polices which led to rapid economic growth and poverty reduction. However, recent studies show that while some areas reduced the number of people living in poverty and benefited from new economic growth under Đổi mới, others continue to report high levels of persistent poverty. Because of the dramatic and spatially uneven decrease in poverty, Vietnam is an important and interesting case study in the geography of poverty. This research addresses the question of what spatial and socio-economic factors account for inter-provincial variance in the rates of poverty and poverty reduction in Vietnam between 1999 and 2006? In particular, what is the role of inter-provincial migration and remittance flows on poverty rates and poverty reduction in Vietnam?