Chapter 1
Introduction and Summary
Giang Thanh Long and Duong Kim Hong

After twenty years of reform, Vietnam has changed significantly.
From a backward, centrally-planned and subsidized economy, it is now in theprocess of becoming an open, active, and market economy. Grasping the golden
opportunity of global integration, Vietnam is trying to use its advantages andresources to develop and make further reforms. Currently, Vietnam is regarded
as one of the best performers among developing countries.
However, fast growth and integration have also intensified certainsocial problems and created new ones. Some problems have become more visible, especially in rapidly urbanizing areas. The problems of street children,prostitution, and HIV/AIDS epidemic transmission are just some of the examples. At the national level, problems in the education system and social welfare,rising inequality, and problems in the life of the elderly population are all pressing questions. With a relatively young population, Vietnam also has to secure
job opportunities and quality of labor for the youth. Apart from these, like anyother country in socio-economic transformation, Vietnam has to cope withincreasing corruption, environmental pollution, a land bubble, and the declineof cultural and spiritual values.
It can be said that Vietnam will not grow and develop sustainably if it
does not squarely address these issues which emerge as a consequence of economic development and social reforms. In this context, conducting studies andproposing policy actions for these social issues is a very urgent task. This book,
among many others in Vietnam, is published for these purposes. It contains six
papers or chapters, each addressing a different topic on the social issues in Vietnam under economic transformation and integration. These papers were revised
in light of comments made at numerous workshops and conferences held inside1Giang Thanh Long and Duong Kim Hongand outside Vietnam. It is the hope of the editors that the contents of this bookwill extend beyond those directly involved in the related field of research, andthat the book will provide crucial information about the current development ofVietnam’s social sector. Following are summaries of these chapters.
The contribution by Duong Kim Hong and Kenichi Ohno in Chapter
2 aims to analyze the problem of street children in Vietnam, which arises fromboth traditional causes such as the loss and divorce of parents, as well as newcauses such as economic incentives. The paper first reviews the existing studies
with different definitions and classifications of street children. Then, it uses
data collected from different sources, including the surveys by Terre deshommes Foundation in 1992 and 2002 in Hanoi and Ho Chi Minh City, the survey by Nguyen Van Buom and Jonathan Caseley in 1995 in Hanoi, and the survey by the Vietnam Development Forum in 2004 in Hanoi, to compare street
children in both cities over time in terms of number, hometown, and types ofwork.
Going further to see the root causes for such situations, the authors
propose a new typology of street children based on causes (broken family,mindset problem, and economic migration) and situations (current protectionand future investment). The results indicate that the broken family group ismost difficult to assist, while the economic migration group often shows strong
desire for study and better life. Moreover, street children are not a homogenous
group, and their aspiration is frequently interrupted by various setbacks. It isthus suggested that intervention policies be diversified according to the needs ofeach type of children. To illustrate in detail, six case studies are presented toshow how these causes and situations interact with each other. Although it isadmitted that the reality of street children is far more complex than the current
analysis, the authors suggest that it is necessary to provide counseling and continuous support to guide children to the right path, and help them to apply theiracquired knowledge from education and training to the real situation. Moreover,incentive and assistance to secure a stable job and build a family for each childare much more important tools in policy consideration.
Chapter 3 of the book, written by Nguyen Thi Minh Tam and Le Thi
Ha, focuses on one of the most popular and hidden channels for the expanding
HIV/AIDS problem in Vietnameae aex workers and waitresses at high risk for2

Introduction and Summary

prostitution to analyze their awareness of HIV/AIDS risk, and to propose anintervention model of HIV/AIDS protection for these workers, which in turnhelps to mitigate the problem. The paper uses data from a survey in 2005 with150 sex workers and waitresses, 12 local authority officers, and 18 managers orowners of restaurants and hotels in Quang Ninh province, where the HIV/AIDSproblem is extremely serious, and where the highest number of HIV/AIDSinfected people in the country has been recorded. The characteristics of theseworkers are investigated in terms of age, educational level, hometown, and marital status. It is shown that these workers are young; the majority of them arefrom rural areas and have only secondary or high school education.
Though HIV/AIDS causes and consequences seem to be well-understood by the respondents, the results ironically reveal that sex workers and waitresses at high risk for prostitution are not well aware of methods to prevent
HIV, and managers or owners of restaurants and hotels as well as local authority officers do not pay enough attention to the transmission of the dangerous
virus that causes AIDS. For instance, about 70 percent of the workers do notwant or like to use condom, though most of them know that it is an effective
tool of safe sex to prevent HIV/AID transmission. Exploring in detail with age
and educational level, the paper shows that activities outside working hours andpriorities in lives of these workers vary significantly. Also, they have several
choices when facing difficulties, but relying on family is difficult as they feelashamed to talk about their job.
From these analyses, the authors suggest that peer clubs, skill-trainingclasses, and personal counseling are crucial to change attitudes and create good
habits and behaviors of safe sex for sex workers. For the policy implications, itis recommended that improvements be made in the health care service network,
the condom providing network, and the consulting network for women in difficulties, especially for those who are sex workers and waitresses working at
high-risk locations. Equally important, local government officials must have theright attitude towards HIV/AIDS prevention and protection, in which theyshould apply a more realistic plan to apply HIV/AIDS prevention methods for
waitresses and sex workers, and also work closely with managers and owners oftourism services and entertainment centers.
Also addressing the economic and social problems of the young pop-3

Giang Thanh Long and Duong Kim Hongulation, Chapter 4 by Dang Nguyen Anh analyzes one of the most important
issues for the youth in rapid economic transition: work and employment. This
paper utilizes the data from the Survey Assessment of Vietnamese Youth(SAVY) in 2003, which was the first nationwide baseline survey of youth
undertaken by the Ministry of Health, Vietnam in collaboration with the General Statistics Office of Vietnam, the World Health Organization, and the UnitedNations Children’s Fund. Exploring various characteristics of youth work andemployment, the paper shows that different individual and family conditions
lead to different work and health-related outcomes among Vietnamese youth.
Gender, age, education, and ethnicity are some of the strong determinants of youth employment. Of greater importance, family characteristics,
including paternal occupation, parental availability, and family economic status,
serve as crucial factors in determining the youth employment experience.
Detailed bivariate and multivariate analyses also indicate that risk-takingbehavior of young people is also associated closely with their work status. For
instance, out-of-school youth, migrant youth, and those who are unemployed or
are job-seekers are most likely to be exposed to health risk behaviors, including
smoking and alcoholic drinking. One of the most striking findings of the paper
is that about one-third of youth with college/university degrees were looking for
employment at the time of SAVY. Among numerous possible factors causing
this situation, the author comments that skills taught and knowledge learned aremismatched with those needed by employers in the labor market; in otherwords, there is weak linkage between the education system and the labor market. Based on these analyses, the author asserts that the conventional understanding of youth as a homogenous group is no longer relevant because theyouth is a diverse social demographic group with different characteristics; thus,
it is required that policy makers avoid making their decisions on such a misunderstanding, and that policies be specific enough to meet the needs of each ofthese groups.
Among many policy implications for improving work and employability for the Vietnamese youth, the author emphasizes that policy efforts aimed
at poverty reduction, employment promotion, and income generation for families are a need. More importantly, strengthening the linkages between the education system and the labor market to minimize skill mismatches and to match4

Introduction and Summaryskills to demand are key conditions to improve youth employability. As such, it
is necessary to build capacity and accountability of employment services andjob counseling. In addition to work and employment, it is also necessary to deal
with the issues related to vulnerability and health of unemployed, migrant, orout-of-school youth. As well as family supports, other specific supports fromthe whole society are essential for such disadvantaged groups.
The striking finding from the previous paper about limited employability of the youth with college/university degree indicates that comprehensive
reforms the tertiary education are a must, and several tasks need to be implemented in order to accomplish these reforms. Dealing with one of the mostimportant issues in reforming the tertiary education, i.e., training of trainers,
Nguyen Thi Phuong Hoa presents her analysis in the Chapter 5 of the book.
Beginning with an overview of the role of education under globalization andscientific development as a crucial task in developing tertiary education, theauthor discusses the current situation of the education system in Vietnam ingeneral and tertiary education in particular under different reforms over time.
The statistical data show that the whole system has been significantly
diversified; achievements are remarkable, given several difficulties that Vietnam has faced in economic transition. However, the author also points out someserious weaknesses of the system, especially in tertiary education. The drawbacks, including poor research and studying conditions, relatively low qualifications of university teaching staff, low education quality, and weak research
capacity, are posing serious social and economic problems as many young people, who compose of an important part of the country’s labor force, are unemployed due to the above mentioned mismatches between their acquired knowledge from tertiary education and the required skills of the labor market. Forinstance, 80 percent of the graduates are working in professions different fromthe subjects they studied at university (Ho Chi Minh City [HCMC] NationalUniversity, 2006).
To contend with this situation, the author presents the theory of action
research for sustainable reform of the education system, in which six steps need
to be exercised thoroughly in different designs of the education system and policy-making processes. More particularly, the author proposes five steps toreform teaching and learning methods in teacher training, in which the quality

5Giang Thanh Long and Duong Kim Hongof teaching and research is frequently evaluated and adjusted with new objectives.
Along with the economic transformation and integration process ofthe country, the Vietnamese households have also been influenced by rapidchanges in social and economic structure. A research topic of interest for many
researchers is to analyze the impact of such changes on poverty, inequality, andwelfare of the households. Chapter 6 in the book, contributed by Tran Duy
Dong, responds to this research need by utilizing the data from the Vietnam
Living Standard Surveys in 1992/93 and 1997/98 and the Vietnam HouseholdLiving Standards Survey in 2002 to identify the micro-determinants of household welfare and inequality in Vietnam. In this paper, the author uses the dataon per capita real expenditure and per capita real income to pursue his analysis.
For the former set of data, the paper applies the methodology of Wodon (1999)
to identify the determinants of changes in per capita real expenditure. Six possible factors are examined, including gender and education of household headand region.
The estimated results show that poverty incidence is diverse, depending on household characteristics. For example, communal facilities, such as
market availability and electricity, are important in determining living standardsof poor households, but they are not determinants of living standards of richhouseholds. Using panel data to explore who gains from economic growth, theauthor finds that both rural and urban households particularly gained from tradeliberalization during the last decade, though their benefits varied by their own
characteristics. For the latter data set, the author examines income distribution
in Vietnam through growth of real income by constructing ordinary Lorenz andgeneralized Lorenz curves. The findings indicate that social welfare absolutelyincreased during 1993–2002 despite the fact that inequality, measured by Gini
coefficient, increased in 1993–1998 and decreased in 1998–2002. Going further
with the sources of welfare changes, the paper finds that income increase during
1993–1998 outpaced that of 1998–2002, but negative impact of higher inequality in the former period led to an increase in total social welfare only relatively
the same as that of the latter period. From these investigations, the author suggests some policy directions in which improvement of communal facilities,building professional skills, and employment services will help Vietnamese

6

Introduction and Summarypeople, particularly the poor, get out of poverty, and will mitigate inequality
between regions and areas.
Focusing on another part of the population, Chapter 7 by Giang
Thanh Long and Wade Donald Pfau provides general information about theVietnamese elderly with different aspects on age, gender, marital status, living
arrangements, and poverty status. This paper uses the data from the Vietnam
Living Standard Surveys in 1992/93, 1997/98 and the Vietnam Household Living Standards Survey in 2002 and 2004 to show the trend of these indicators
over time. The estimated results show that the aging of the Vietnamese population could be observed, as the percentage of the elderly people (who are 60years old and older) in the total population increased during the past decade.
The rate was even higher that the projected rate of the United Nations (2005).
The data also show that the urbanization process in Vietnam has continued: the proportion of rural people decreased from more than 80 percent in
1992/93 to about 73 percent in 2004. More importantly, most of the elderly areliving in the Red River Delta and Mekong River Delta. In terms of educational
level, the estimates show that females of all age ranges generally have disadvantages in comparison with males, and this situation can be seen clearly withdecomposition of area (urban and rural) or marital status. Going further withdetailed analysis on the elderly households’ living arrangements, the paper
shows that the traditional (or multi-generational) family structure has beenstrongly maintained in Vietnam. Elderly people play important role in thehouseholds as many of them are heads of the households. This comment is also
supported by fact that many elderly people are still working and doing housework for the households. Among elderly dependents of the households, manyare living with their married son, and this situation is prevalent in rural areas.
One concern pointed out in the paper is that the percentage of elderly living as
dependents declined by about 10 percentage points, while the corresponding
elderly living in only elderly households increased at the same rate during
1992/93–2004; particularly the percentage of one-elderly households also
increased by 3 percentage points in this period. The data of the surveys also
indicate that housing conditions, particularly lighting and hygiene, of the elderly households have improved significantly over time.
The last part of this paper presents the estimates of poverty rates

7

Giang Thanh Long and Duong Kim Hongacross the population by gender and age. In agreement with information indicated elsewhere in the book, the results show that the overall poverty rate in Vietnam decreased rapidly during the past decade, from about 58 percent in
1992/93 to about 19 percent in 2004. Poverty rates are then decomposed bygender and age in order to see the detailed poverty incidence of different groupsof the population. Although it is admitted that the estimates might be biased due
to several possibilities, they still indicate that the hardship tends to occur mostly
at very later ages. Based on these general results, the authors recommend thatsocial welfare policies need to be specific enough with careful consideration ofsocial and economic factors, so as to protect the elderly from risks under swift
economic transformation and integration.

References

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Nguyen, V. B; and J. Caseley. 1996. Survey on the Situation of Street Children in Hanoi.
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Terre des hommes Foundation. 1992. Children of the Dust in Ho Chi Minh City. Geneva: Terre des hommes Foundation.
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Introduction and Summaryty in Bangladesh.” Policy Research Working Paper No. 2076 Washington, D.C.:World Bank.
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