The Analyze of the Human Development Index

Expected years of schooling (years)

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Vietnam

Diagram 2: Vietnam’s Income index
Dimension: Demography

Expected years of schooling (years)
Mean years of schooling (years)
1990	7,8	3,9
1995	9,3	4,6
2000	10,6	5,4
2005	11,3	6,4
2010	12,0	7,5
2011	12,5	7,6
2012	12,6	7,8
2013	12,6	7,9
2014	12,7	7,8
2015	12,7	8,0
2016	12,7	8,1
2017	12,7	8,2
2018	12,7	8,2

Table A: Vietnam’s HDI trends

Dimension: Income/composition of resources
Gross national income (GNI) per capita (2011 PPP $)
Definition: Aggregate income of an economy generated by its production and its ownership of factors of production, less the incomes paid for the use of factors of production owned by the rest of the world, converted to international dollars using PPP rates, divided by midyear population.

Diagram 1: Vietnam’s Gross national income (GNI) per capita (2011 PPP $)

Income index

Definition: GNI per capita (2011 PPP International $, using natural logarithm) expressed as an index using a minimum value of $100 and a maximum value $75,000.

Diagram 2: Vietnam’s Income index

1.4 Dynamics of the human development index

Vietnam’s HDI value for 2018 is 0.693 — which put the country in the medium human development category—positioning it at 118 out of 189 countries and territories. Between 1990 and 2018, Vietnam’s HDI value increased from 0.475 to 0.693, an increase of 45.9 percent.

Figure 1: Trend in Vietnam’s HDI value 1990 – 2018

Indicators characterizing other aspects of human development
1. Dimension: Demography

Total population (millions)

Definition: De facto population in a country, area or region as of 1 July.

Year	Total population (millions)	Median age (years)	Urban population (%)
1990	68.0	21.1	20.3
1995	74.9	22.3	22.2
2000	79.9	24.2	24.4
2005	83.8	26.4	27.3
2010	88.0	28.5	30.4
2015	92.7	30.5	33.8
2018	95.5	32.5	35.9

Table B: Vietnam’s demography trends

Labor resources, employment, unemployment

Year	Labor force	Employment (%)	Unemployment (%)
1991	33782813	75,663	1,962
1995	37169638	75,371	1,943
2000	41816352	74,747	2,26
2005	46516141	74,422	2,225
2010	51185007	75,338	1,114
2015	55529723	76,398	1,859
2016	55772086	75,957	1,851
2017	56376121	76,035	1,886
2018	56830826	75,961	1,891
2019	57249411	75,828	1,894

Table C: Labor resources of Vietnam in the given period

Investment in the social sector, aid flows, inflows of resources

Foreign direct investment, net inflows (% of GDP) – sum of equity capital, reinvestment of earnings, other long-term capital and short-term capital, expressed as a percentage of GDP.

Net official development assistance received (% of GNI) – disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies to promote economic development and welfare in countries and territories on the Development Assistance Committee list of aid recipients, expressed as a percentage of the recipient country’s gross national income (GNI).
Remittances, inflows (% of GDP) – earnings and material resources transferred by international migrants or refugees to recipients in their country of origin or countries in which the migrant formerly resided.

Figure 2: Trends in Vietnam’s Foreign direct investment, net inflows (% of GDP); Net official development assistance received (% of GNI); Remittances, inflows (% of GDP)

Conclusion.

Vietnam ranks 118 out of 189 countries on the 2019 UN Human Development Index. Figure 1 illustrates Vietnam’s steady progress on the Human Development Index from 1990-2018. The country has achieved the MDG goals in the areas of poverty reduction, education, gender equality and maternal health and has partially achieved the remainder . Rising levels of education and diversification into off-farm activities, such as working in construction sites, factories or domestic work have also contributed to reducing poverty in the country. National poverty rates have fallen consistently from 58% in 1993 to 13% in 2017 . These development gains, however, remain vulnerable to reversal. The context for poverty reduction in Vietnam is changing, with the rate of poverty reduction slowing down and inequality on the rise. Some 12 million people still remain in chronic poverty and below the official poverty line (living on less than $1.25 a day) with a further 7 million people estimated to be ‘near poor’ (living on less than $2.25 a day). Furthermore, the nutritional status of children is poor and the rates of child malnutrition in predominantly ethnic minority districts remain considerably higher than the national average (+20 per cent). Economic growth is not benefiting the population equally, with progress uneven between groups and between regions. The poverty rate in rural areas is considerably higher than that of the urban areas. Almost 87% of Vietnam’s population lists their ethnicity as Kinh (or Viet). However, ethnic minority groups (54 different ethnic minority groups live in Vietnam) have been among the last to reap the rewards of Vietnam’s prosperity. The remaining poor are harder to reach; they face challenges of isolation, limited assets, vulnerability to shocks, low levels of education and poor health conditions. The Government of Vietnam has made some significant strides in advancing gender equality. The National Policy Framework for Gender Equality was approved for the period 2011-2020 with the goal of highlighting the importance of gender equality for the socio-economic development of the country. Although there is strong commitment from the Government, gender inequality remains a determinant of poverty in Vietnam. Despite having one of the highest labor force participation rates of women over 15 (72.6% in 2011), women continue to earn less than men across economic sectors. While this differential has improved from an average male to female wage ratio of 115% in 2011 to 107% in 2014, the average masks disparities by region and by education level . Violence against women and girls is a serious issue in Vietnam. The Government released a ‘Study on Domestic Violence against Women in Viet Nam’, which indicates that women are three times more likely to be abused by a husband than by any other person. It is estimated that 34% of Vietnamese women experienced at least one or all types of domestic violence during their lifetime. Vietnam is becoming increasingly vulnerable to economic and climatic shocks. This is as a result of the global economic volatility that has affected the country since around 2007, as well as the effects of increased climate variability resulting from climate change. Such economic and climatic shocks disproportionately affect those groups in Vietnam already living in vulnerable situations. These changes and emerging challenges are taking place within a context of increasing resource scarcity for the Government of Vietnam, with declining state revenues. At the same time, funds available for poverty reduction from Development Partners are also reduced, partly as a result of changing aid budgets and priorities. Over the past two decades, basic literacy and numeracy skills have helped Vietnamese workers move from low productivity agriculture into higher productivity non-farm jobs. This has promoted rapid economic growth and poverty reduction. Today, Vietnamese workers perform better in reading than workers in other countries, including wealthier ones. Looking ahead, continued strong economic growth will require increased labor productivity and a workforce with the skills to match the job market. Despite impressive literacy and numeracy achievements among Vietnamese workers, many Vietnamese firms report a shortage of workers with the right skills. The skills gap is particularly acute among applicants for jobs in technical, professional and managerial positions, while a shortage in applicants is common among more elementary occupations. Employers identify job-specific technical skills as the most important skill. But they are equally looking for cognitive skills, such as problem-solving and critical thinking, and behavioral skills, such as team work and communication. Cognitive and behavioral skills are formed in early years in life and continue through later stages. Technical skills are acquired later through technical and vocational education and training, higher education and on the job training.

References

http://hdr.undp.org/en/countries/profiles/VNM#
https://data.worldbank.org/indicator
UNDESA (2019b). World Population Prospects: The 2019 Revision. New York. https://population.un.org/wpp/. Accessed 19 June 2019
HDRO calculations based on life expectancy values from UNDESA (2017a). World Population Prospects database. Accessed 10 May 2018
UNESCO Institute for Statistics (2019), ICF Macro Demographic and Health Surveys, UNICEF Multiple Indicator Cluster Surveys and OECD (2018)
UNESCO Institute for Statistics (2019), Barro and Lee (2018), ICF Macro Demographic and Health Surveys, UNICEF Multiple Indicator Cluster Surveys and OECD (2018)
World Bank (2019a), IMF (2019) and United Nations Statistics Division (2019b)
HDRO calculations based on GNI per capita (2011 PPP International $) from World Bank (2018b), World Development Indicators database. Accessed on 28 July 2018
UNDESA (2019b). World Population Prospects: The 2019 Revision. New York. https://population.un.org/wpp/. Accessed 19 June 2019
World Bank (2019a). World Development Indicators database. Washington, DC. http://data.worldbank.org. Accessed 15 July 2019
World Bank (2019a). World Development Indicators database. Washington, DC. http://data.worldbank.org. Accessed 15 July 2019
World Bank (2019a). World Development Indicators database. Washington, DC. http://data.worldbank.org. Accessed 15 July 2019.

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The Analyze of the Human Development Index

Expected years of schooling (years)