The Impact of Vietnam’s New Rural Development Program on Rural Household Income: Cross-sectional Evidence Covering Communes That Hosted Korea’s Saemaul Undong Program
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The economic and political reform of Vietnam in 1986 (the Doi Moi) has transformed its economy positively and significantly into an open socialist-oriented market economy. This caused a dramatic change of Vietnam’s economy towards modernization. However, the urbanization process created an unbalanced development between the urban and rural regions. To solve the gaps between these regions, the government of Vietnam firstly introduced the New Rural Development (NRD) program in 2006 to encourage and mobilize a revolutionary and campaign to improve local infrastructure, living condition, comprehensive development of related-production activities in rural regions, as well as increase income, and improve physical and mental health of people living in rural communities. One of the main purposes of this research paper is aimed at providing a scientific evidence for justifying whether the NRD implementation could have an impact on rural households’ income, one of the ultimate goals of the NRD, and examining the difference of incomes between Saemaul Undong (SU)-piloted provinces with the other provinces by employing a multiple regression model. The analysis results show that the NRD implementation has shown positive results and significant impacts on increasing rural households’ income and improving living conditions at the communal levels. Criteria such as road development, access to electricity, capacity building, and institutional development have significantly influenced on the households’ income. The regression model also indicates that the communes currently implementing SU pilots have a better annual income of 12 million VND (~US$ 530) or 41.8% higher than the other communes.
Abstract
The economic and political reform of Vietnam in 1986 (the Doi Moi) has transformed its economy positively and significantly into an open socialist-oriented market economy. This caused a dramatic change of Vietnam’s economy towards modernization. However, the urbanization process created an unbalanced development between the urban and rural regions. To solve the gaps between these regions, the government of Vietnam firstly introduced the New Rural Development (NRD) program in 2006 to encourage and mobilize a revolutionary and campaign to improve local infrastructure, living condition, comprehensive development of related-production activities in rural regions, as well as increase income, and improve physical and mental health of people living in rural communities. One of the main purposes of this research paper is aimed at providing a scientific evidence for justifying whether the NRD implementation could have an impact on rural households’ income, one of the ultimate goals of the NRD, and examining the difference of incomes between Saemaul Undong (SU)-piloted provinces with the other provinces by employing a multiple regression model. The analysis results show that the NRD implementation has shown positive results and significant impacts on increasing rural households’ income and improving living conditions at the communal levels. Criteria such as road development, access to electricity, capacity building, and institutional development have significantly influenced on the households’ income. The regression model also indicates that the communes currently implementing SU pilots have a better annual income of 12 million VND (~US$ 530) or 41.8% higher than the other communes.
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