Development Challenge The USAID Program Other Program Elements Other Donors Program Data Sheets Summary Tables USAID Search: Vietnam Previous Years' Activities 2002, 2001 Last updated: Wednesday, 29-May-2002 18:51:25 EDT

THE DEVELOPMENT CHALLENGE: U.S. national interests in Vietnam are to gain Vietnamese cooperation on POW/MIA accounting and freedom of emigration; encourage compliance with international standards of human rights and the rule of law; support economic reform and opportunities for U.S. companies; and promote regional stability. Economic and social development will help create a more prosperous and confident Vietnam that is prepared to play an increasing role in the regional and international community.

Vietnam is now undergoing its transition from a centrally planned to a market oriented economy. Since beginning a

Vietnam ranks 101st (out of 162) in terms of the Human Development Index. GDP per capita is less than $400. Ninety percent of the poor live in rural areas. Under-five children mortality is 42 per 1,000; 34% of the children under-five are malnourished.

reform and adjustment initiative in 1986, Vietnam has made remarkable progress across a broad range of socioeconomic development measures. Life expectancy has increased to nearly 68 years and adult literacy has been maintained at over 90%. Vietnam ranks 101 out of 163 countries in the Human Development Index. Its current level of gross domestic product (GDP) per capita is less that $400.

Though poverty was reduced by 33% over the past 10 years, poverty reduction is still at the forefront of the Government of Vietnam’s (GOV’s) agenda for the coming decade. The gap between urban and rural areas has been increasing; so has the differentiation between the rich and the poor. Nearly 90% of the poor live in rural areas, are often farmers with low levels of education, and have limited access to land, capital, technology, information, and basic social services. They are also particularly vulnerable to natural disasters, which frequently occur in Vietnam. Malnutrition and micronutrition deficiencies are serious problems and significant causes of maternal, child, and infant mortality. HIV is found in all 61 provinces, and the conditions exist for the expansion of the epidemic.

THE USAID PROGRAM: USAID will spend $11,056,000 in Vietnam in FY 2002 and requests $12,456,000 for FY 2003. USAID provides assistance to Vietnam to enhance the environment for trade and investment. The objectives of this program are to strengthen the Vietnamese private sector, and to help the GOV to deepen trade and investment related reforms consistent with its commitments in the Bilateral Trade Agreement. Successful implementation of these reforms will also help Vietnam meet some of the requirements for accession into the World Trade Organization (WTO).

ONGOING PROGRAMS FOR WHICH NO FY 2002 OR FY 2003 FUNDING IS REQUESTED: None.

OTHER PROGRAM ELEMENTS: USAID’s Bureau for Global Health provides assistance to improve access to services for vulnerable groups through the Leahy War Victims Fund and the Displaced Children and Orphan Fund. The HIV/AIDS program helps Vietnam control the spread of HIV/AIDS by improving surveillance capacity and prevention interventions, and assisting people living with AIDS. The Office of Foreign Disaster Assistance helps Vietnam improve its disaster preparedness capacity, focusing on flood forecasting and mitigation. The United States-Asia Environmental Partnership (US-AEP) improves Vietnam’s overall environmental financing and regulatory framework and develops decentralized approaches to urban and natural resource management through partnerships between U.S. and Vietnamese cities. Finally, USAID provides assistance to women and children rescued from trafficking.

OTHER DONORS: Japan, the largest donor to Vietnam, is investing in large-scale infrastructure projects, technology training, transportation, and health. The Asian Development Bank and the World Bank focus on modernizing the banking system and reform of state-owned enterprises. The United Nations Children’s Fund (UNICEF), United Nations Development Programme (UNDP), United Nations Fund for Population Activities (UNFPA), and the World Health Organization (WHO) support health activities, disaster preparedness, institutional development, education, and rural development. Other major bilateral donors include France, Denmark, Sweden, the Netherlands, Australia, Canada, and Germany. Major donors involved in the health sector include UNAIDS, the Asian Development Bank, Glaxo Wellcome, Ford Foundation, Germany, the European Union, Australia, and the Netherlands.

Program Data Sheets

• 440-006  Enhanced Environment for Trade and Investment
• 440-007  Improved Access to Services for Selected Vulnerable Groups

	Country Background Information Resources
	CIA Factbook Library of Congress	National Geographic Country Maps State Dept. Country Information