The report concludes with policy suggestions following the Last Mile to Next Mile framework
Last Mile Chronic Challenges: The concentration of poverty among geographically disadvantaged regions calls for strengthening of area-based anti-poverty intervention, modernization of the agricultural sector, and improving education for disadvantaged students.
- Analysis suggests that past NTPs helped improve access to services and achieved some positive impacts on improving welfare, but gaps were also identified.
- Boosting agricultural productivity is key to maintaining livelihoods for those remaining in the rural economic system in the face of significant structural change.
- Access to new knowledge and innovations, including application of appropriate digital technologies, would support productivity growth by substituting for labor intensity.
- Moreover, the social protection system can play a larger role (discussed as part of the Next Mile agenda).
- To improve the participation of ethnic minorities in the labor market, laws protecting the rights of ethnic minorities can be further strengthened.
Reaching Next Mile aspirations: The millions who have escaped poverty over the last decade now need to continue climbing up to higher economic classes.
- Continuing improvements in higher education access and quality will be needed.
- Improving the relevance and quality of tertiary education curriculum and staffing can help reduce skill gaps and alleviate difficulties in recruiting for certain skills.
- More effective social assistance should be provided to poorer households, with increased coverage and benefit levels to achieve greater poverty and inequality reduction. This will require greater overall spending while consolidating the currently fragmented mix of programs to achieve greater efficiency.
- To finance the public investments needed to eliminate poverty and grow the economically secure and middle classes, Vietnam can broaden its tax revenue base (personal income tax, property tax), and explore the use of new taxes which both raise revenue and address negative externalities.