§ Mr. Ben ChapmanTo ask the Secretary of State for International Development if he will make a statement on development in Vietnam. [172694]
Mr. Gareth ThomasThe Government of Vietnam has made rapid progress in reducing poverty in recent years and in maintaining a high rate of economic growth. The number of people living in poverty halved from 58 per cent. in 1993 to 29 per cent. in 2002 and economic growth has averaged at approximately 7 per cent. over the last 10 years. Despite this, approximately 23 million people still live below the poverty line and an estimated 8.8 million live in hunger. However, health and education indicators are at similar levels to those normally seen in a country with a per capita income two or three times higher than Vietnam's.
This progress is a result of the Government of Vietnam's sustained commitment to development and poverty reduction. Recognising this, DFID has rapidly increased it's programme in Vietnam from £19 million in 2002–03 to an expected spend of up to £60 million by 2005–06. The programme supports the Government of Vietnam's own poverty reduction and growth strategy, and DFID works very closely with the Government and other donors to ensure that we achieve the maximum impact of our resources. Copies of DFID's new Country Assistance Plan for Vietnam have been placed in the House Library.
689WDFID also supports poverty reduction in Vietnam through our contributions to the European Commission development budget (currently approximately 18 per cent. of the total budget). The EC spent 22.7 million Euros in Vietnam in 2002 (UK contribution: 4.1 million Euros), and is likely to spend 101 million Euros between 2002 and 2004 (UK contribution: 18.2 million Euros).