Regarding income, the new poverty line of VND 700,000 (US$33) per person per month was set for rural areas and that of VND900,000 (US$42) per person per month for urban areas. The near-poor lines are VND 1,000,000 (US$47) and VND 1,300,000 (US$62) per person per month for rural and urban areas, respectively.

The new decision also stipulates levels of access to basic social services, including healthcare, education, housing, clean water and sanitation, and information.

The lack of basic social services will be judged through ten indicators, including healthcare services; medical insurance; education of adults; school attendance of children; housing quality; average housing area per capita; water resources; hygiene latrines and toilets; telecom services; and assets to serve information access.

Poverty lines in 2016-2020

Poor households in rural areas must meet one of the two following conditions: (1) earning under VND 700,000 in average income per person; (2) earning between VND 700,000 and VND 1,000,000 in average income per capita and lack of at least three basic services access indicators.

Poor households in urban areas are required to satisfy one of the two criteria including (1) earning under VND 900,000 in average income per capita; (2) earning between VND 900,000 and VND 1,300,000 in average income per capita and lack of at least three basic service access indicators.

Near-poor households in rural areas are those with an average income per capita of VND 700,000-1,000,000 and lack of less than three basic service access indicators.  

Near-poor households in urban areas are those with an average income per capita of VND 900,000-1,300,000 and lack of less than three basic service access indicators.  

Households with average living standards in rural areas earn an average income per capita of  between VND 1,000,000 and VND 1,500,000 (US$71).

Households with average living standards in urban areas have an income per capita of between VND 1,300,000 and VND 1,950,000(US$92).  

The new multi-dimensional poverty index is expected to measure and supervise the shortage of income and access to basic social services of people; assist the ongoing poverty reduction efforts and the implementation of social welfare policies and policy making from 2016-2020./.

By Huong Giang