POVERTY REDUCTION IN VIETNAM: LESSONS FOR BANGLADESH

This article provides a comparative analysis of the remarkable success of Vietnam in reducing poverty and draws out potential lessons for Bangladesh. It examines the key elements of Vietnam's development strategy since the launch of its "Doi Moi" reforms, which have led to one of the most dramatic reductions in poverty in modern history. The study analyzes the combination of policies that drove this success, including the promotion of broad-based agricultural growth through land reform, the rapid expansion of labor-intensive, export-oriented industries, and a strong state commitment to investing in human capital, particularly education. The research then contrasts the Vietnamese experience with that of Bangladesh, identifying both similarities and key differences in their development trajectories. The paper argues that while the specific political context of Vietnam is unique, its strategic focus on agricultural productivity and export-oriented industrialization holds valuable lessons. The analysis concludes by identifying key policy priorities for Bangladesh to accelerate its own progress in poverty reduction.

Vietnam's record in poverty reduction since the late 1980s has been nothing short of miraculous. This paper seeks to distill the key lessons from this success story for another populous, agriculture-based country: Bangladesh. The study begins with a comparative statistical overview, which starkly illustrates the much faster rate of poverty reduction achieved by Vietnam. The core of the article is an in-depth analysis of the key pillars of the "Vietnamese model." The first pillar identified is the comprehensive land reform that gave farmers long-term and secure user rights, which unleashed a massive boom in agricultural productivity and rural incomes. The second pillar is the successful strategy of attracting a huge wave of foreign direct investment into labor-intensive, export-oriented manufacturing, which created millions of formal sector jobs. The third, and equally crucial, pillar is the sustained and high level of public investment in education and health, which created a skilled and healthy workforce. The paper then provides a comparative assessment with Bangladesh. It argues that while Bangladesh has also had success, particularly with microcredit and the RMG sector, it has lagged behind Vietnam in the areas of agricultural productivity and attracting diversified FDI. The findings lead to a set of clear policy lessons for Bangladesh. The paper concludes by emphasizing the importance of a strong and effective state that can play a strategic, guiding role in the development process, a key feature of the Vietnamese experience.