The Borgen Project of the US has just stated that economic growth in Vietnam has helped millions of people escape poverty for decades. As household income increases and the country's middle class expands, the demand for goods and services continues to increase.
These changes are creating new opportunities for international trade and investment, including US companies seeking to access one of the fastest growing markets in Southeast Asia.
The Borgen Project is a US non-profit organization operating to alleviate extreme poverty globally.
According to The Borgen Project, Vietnam has reduced the proportion of the population living in difficult circumstances from over 70% in the early 1990s to below 1% in recent years. This achievement is widely recognized as one of the world's "development miracles".
In addition, strong export growth, industrial development and investment in education have contributed to improving living standards across the country. As more and more Vietnamese households have higher purchasing power, businesses around the world are also benefiting from a larger consumer market.
Notably, Vietnam's middle class has developed rapidly along with the country's economic development. High income growth in Vietnam has increased demand for consumer goods, healthcare services, technology products and educational opportunities. As a result, Vietnam is shifting from a low-income economy to an increasingly important consumer market.
According to The Borgen Project's assessment, the development of the middle class also contributes to supporting broader economic stability. Increased consumer spending helps create jobs, encourage entrepreneurship and strengthen the domestic market. These trends contribute to further poverty reduction, while attracting foreign investment.
From a broader perspective, Vietnam's progress in poverty reduction shows that economic development can create common benefits for countries around the world. Increased income has improved the living standards of millions of Vietnamese people, while opening up new markets for international businesses.
The fact that Vietnam has recently been upgraded to the group of high-middle-income countries also reflects this significant transformation, and also shows that income in Vietnam is increasing.
