Several of the U.S. government’s development priorities in Vietnam can be traced back to events that damaged relations between the two countries during the Vietnam War. But the U.S. Agency for International Development is now also looking ahead to what’s next, such as an innovative finance mechanism for forest protection, and supporting the country in adopting a more inclusive, modern health system post-PEPFAR procurement.
Over the past 25 years, Vietnam has undergone a dramatic economic transformation to become a lower-middle-income country, and is lauded worldwide for its remarkable development record. Per capita income has risen from around $100 in the 1980s to about $2,100 in 2015, according to World Bank data. The number of people living in extreme poverty has dropped from about 50 percent in the early 1990s to 3 percent in 2012.
A variety of challenges still threaten the country’s potential for inclusive growth, including corruption and lack of government transparency. Vietnam is an important player in the Global Health Security Agenda given the prevalence of diseases such as rabies and SARS. Climate change, too, poses a threat to the agriculture-dependent country, which is currently recovering from its worst drought in nearly 100 years that affected the livelihoods of nearly 2 million smallholder farmers,