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HCM City is “poorer” than Hanoi
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VietNamNet Bridge – Per capita income in HCM City, Vietnam’s largest city, is higher than the capital city of Hanoi but its poor rate is higher.

The survey of poverty in Hanoi and HCM City in 2009, sponsored by the UNDP, reveals a surprise results: HCM City is “poorer” than Hanoi.

The survey rates the poverty in the two cities not only based on income and spending, but also the people’s approach to social welfares, education and health services, housing, social activities and security.

Based on the national poverty standards, which is mainly measured by income, HCM City’s poverty rate is lower than Hanoi’s, with 0.31 percent and 1.27 percent respectively. According to the survey, Hanoi’s per capita income is VND2.321 million/year and it is VND2.445 million in HCM City.

However, the poverty rates based on other standards of HCM City are higher than those of Hanoi. For instance, HCM City’s ratio of illiteracy, ratio of people without health insurance, the number of people who live in housing space of less than 7 square meters are higher than Hanoi’s.

The new methodology of poverty measurement shows that in both cities, rural mirgrants and immigrants have a more difficult approach to social welfares than urban dwellers and those who are not immigrants.

This methodology also proves that income is not the most important element to measure poverty, but social welfares and people’s participation in social activities.

The survey reveals that the rate of poor people and immigrants who don’t participate in social activities is higher than well-off people and those who are not immigrants. The most popular reasons for this situation are: these people are not allowed to participate, they don’t have family record books, and they think that these activities do not pertain to them.

The survey shows that inequality in having access to social services exists in the two biggest cities in Vietnam, especially between immigrants and those who have family record books.

The survey also points out that poverty eradication policies based on economic standards (income and spending) are insufficient. Vietnam should pay more attention to improve the social welfare system, housing, education and health services, etc. for the people, to facilitate the people, especially immigrants and the poor, to take part in social activities and social organizations.

The survey, carried out by the two cities, is the first of its kind, which approached to poverty in a multi-faceted way and the first source of information about poverty and the life of immigrants in Hanoi and HCM City.

It was implemented in October and November 2009.

After the survey results are made public, the survey organizing board will invite prestigious experts to analyze the relations between poverty situation and hunger eradication and poverty eradication policies to make suggestions to the two cities in amending their policies.

Thuy Chung