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Ministry proposes increasing poverty line nationwide

The Ministry of Labour, Invalids and Social Affairs is proposing to raise the poverty line in both urban and rural areas.
The Ministry of Labour, Invalids and Social Affairs is proposing to raise the poverty line in both urban and rural areas.

According to a proposal that has been submitted to the Prime Minister,the new poverty line for people in urban areas would be a monthlyincome of 500,000 VND (26 USD)) and for rural areas 400,000 VND (21USD)). The current poverty line is at VND260,000 (13.6 USD)) in urbanareas and 200,000 VND (10.5 USD)) in rural areas.

Ngo Truong Thi, deputy director of the Social Protection Department ofthe Ministry of Labour, Invalids and Social Affairs, said the povertyline had to be regularly readjusted.

Every year, theministry re-evaluates the poverty threshold, said Thi. Adjustments tothe poverty line can change the number of people eligible for thegovernment's social welfare policies.

Thi said thenation's poverty reduction programmes had gained positive results, butkeeping people out of poverty was difficult.

The newpoverty line, if applied, would increase the number of poor householdsin the country from 11 percent to 15 percent, rising to about 3.3million households.

The proposed change to thepoverty line has taken into account people's basic spending needs,prioritise poor people in remote and mountainous areas and be comparablewith poverty lines across the region and around the world.

Thi said budget allocations for poverty reduction programmes, based onthe new poverty line, would be increased by 5.7 trillion VND (300million USD) from next year. Funds allocated for the programme from 2006to 2010 totalled at 43 trillion VND (2.3 billion USD)).

The proposed poverty line, if approved by the Government, will beconsidered the minimum level. Localities can adjust their own figure to ahigher level in a way that suits the local conditions.

Currently, there are nine provinces and cities applying a poverty linethat is higher than the national standard. These provinces and cities,which enjoy higher living standards than in other parts of the country,include Binh Duong, Da Nang , Dong Nai, Khanh Hoa, Vung Tau, BinhPhuoc, Long An provinces and HCM City and Hanoi .

Deputy Prime Minister Nguyen Sinh Hung said the poverty reductionprogramme must help poor families to secure good jobs rather than simplyhanding out welfare payments.

Deputy Minister ofLabour, Invalids and Social Affairs Nguyen Trong Dam affirmed that theprogramme would not only ensure poor households of both basic spendingon foods but also accommodation, health care and education./.

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