Social Cohesion Policy Review of Viet Nam

This report examines the effects of recent economic growth in Viet Nam on social cohesion. It finds that recent rapid economic growth in Viet Nam has not resulted in an increase in overall inequality, but the level of inequality was already high. Growth was not particularly inclusive, benefiting mos...

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Bibliographic Details
Corporate Author: Organisation for Economic Co-operation and Development
Format: eBook
Language:English
Published: Paris OECD Publishing 2014
Series:Development Centre Studies
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
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505 0 |a Introduction -- Executive summary -- Foreword and Acknowledgements -- Fiscal policy and the social contract -- Improving social cohesion through employment-friendly policies -- Social cohesion at a crossroads in Viet Nam -- Assessment and recommendations -- Acronyms and abbreviations -- Building an inclusive social protection system 
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520 |a This report examines the effects of recent economic growth in Viet Nam on social cohesion. It finds that recent rapid economic growth in Viet Nam has not resulted in an increase in overall inequality, but the level of inequality was already high. Growth was not particularly inclusive, benefiting most the middle class and the richest households, and favouring less households in the bottom 20th percentile. Income mobility was also high, and while a majority of households experienced upward income mobility, downward absolute income mobility affected one in five households. Economic growth was not particularly job rich with employment growth lagging behind economic expansion. In particular, important challenges were identified in the area of education and skills policies relating to fast-changing labour market needs. Minimum wage policies had a small but positive effect on employment, but concerns were highlighted over partial coverage and weak compliance. Tax policy and specifically personal income tax had only a small impact on reducing inequality, but transfers from central to local governments produced an equalising effect, albeit with mixed results in terms of satisfaction with public services. Finally, social protection systems have been extended, but important coverage gaps remain among the poor and ethnic minority groups, and informality remains a key challenge for universal extension