Poverty line should reflect inflation
VietNamNet
Jun 15, 2009
The official poverty line should be raised to respond to higher rates of inflation, according to a recent report from ActionAid Viet Nam and Oxfam.
The Government should adjust assistance programmes and welfare policies for the poor, especially for migrant families, the report said.
The current poverty line of VND200,000 for rural residents and VND260,000 per month for city dwellers is considered too low, given the rate of inflation over the last two years.
Figures on the number of poor households in major cities have not reflected the real numbers.
In Hai Phong city’s Lam Ha ward, for example, 25 out of 2,800 households are listed on the ward’s official list of poor households.
But the ward authorities said the real number of poor families could rise to more than 200 if migrant households were included.
Poverty reduction programmes in urban areas will be ineffective if authorities do not develop policies to support poor migrants working and living in urban places, according to the report.
Migrants, who do not have registered permanent residences, remain excluded from reviews and surveys on poor household.
Because of this, they cannot benefit from programmes intended to support the poor and near-poor.
Many migrants are not considered poor, according to the official poverty line.
A migrant worker can earn an average of a VND800,000 (US$50) a month. Other casual workers can earn about VND40,000-50,000 a day.
But after paying for rent, electricity and water fees, the workers have little left, usually about VND400,000-600,000 ($24-$36) a month.
That amount is used to cover food and other essential personal expenditures including school expenses.
In the city, landlords often overcharge migrant workers for water and electricity fees, up to four times as much, according to the report.
With wages increasing less than the price of food, migrant workers are having difficulty meeting living expenses.
The average monthly income has increased by 10-20 per cent, less than the 30-50 per cent rise of many products, according to the report.
One worker said he was paying double for a bowl of noodles and cutting down on meat.
The report also recommends that the Government allow children of migrants to attend public high-school and post-secondary education.
Currently, people who do not have permanent locality residency, like many migrants, cannot attend public primary schools.
Many of them are forced to attend private schools or take courses in the evening at training centers.
