Poverty Assessment of Ethnic Minorities in Vietnam

Ethnic minorities in Vietnam have experienced high income fluctuation over time. This study aims to examine why a number of households experienced an income increase while others experienced an income decrease in poor areas with high density of ethnic minorities in Vietnam. It shows that the increase in household income results from an increase in average income per working hour. That is, the number of working hours did not change significantly but the increase in productivity per working hour helps households to increase their household income. In addition, the increase in number of working hour and increase in income transfers also contribute to the income increase. Our study also indicates that the increase in labor productivity mostly comes from agricultural sector but not from non-agricultural sector. For households with falling income, the major reasons for the income decrease are decreasing labor productivity, especially in agricultural sector.