ABSTRACT
With an estimated population of 80 million and an active labour force of approximately 38 million, Vietnam is the world's fortieth-largest economy, just after Hong Kong (World Bank 2003). Between 1991 and 2001, Vietnam's economy grew at an average annual rate of 7.7 per cent, making it one of the world's fastest-growing economies. Child malnutrition and the incidence of poverty have declined rapidly, while rising labour force participation rates (Haughton 2000) have led to relatively broad-based improvements in welfare (Glewwe et al. 2002). Persistent extreme poverty is rare (Baulch and Masset 2003). These trends have made Vietnam a focal point for those interested in growth with equity. Nevertheless, Vietnam remains one of the poorer countries in the world, with approximately half of its population living in poverty at any one time, and a (constant 1995 dollar) per capita gross domestic product of $390 (World Bank 2003).
