In 2006, only about 46% of Viet Nam’s rural population had access to clean water, and water was not available throughout the year. About 83% had latrines, but only 48% of these were hygienic, by government standards. Knowledge of individual sanitation remained poor.
Accounting for 30% of Viet Nam’s natural forest area in 2005, the Central Highlands Region is a biodiversity hotspot and the watershed of several important rivers. However, it was also the country’s second poorest region at the time, with poverty levels as high as 57% among the ethnic minority groups that made up 23% of its population.
Over 2003–2008, Viet Nam’s gross domestic product (GDP) grew at an average of 7.7% per year. While agriculture’s GDP share declined from 22.5% in 2003 to 20.4% in 2008, the country’s agricultural products achieved greater competitiveness and their exports expanded significantly.
Viet Nam’s gross domestic product (GDP) had grown at an average of 7.5% per annum over 1996–2006 and reached 8.2% in 2006. Building on this remarkable performance, the government was determined to maintain a high economic growth of 8.0%–8.5% in 2006–2010 to reduce poverty to 11%–15% by 2010.
The project appraisal in 2010 saw the North–South Economic Corridor (NSEC), which connects Greater Mekong Subregion countries and southeastern People’s Republic of China (PRC), as a dynamic area of development. Its eastern branch, which links Kunming and Nanning in the PRC to Ha Noi and northern Viet Nam, was experiencing rapid growth due to increasing investments, cross-border trade, and flow
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