The criteria to define poor households, near poor households for the period of 2016 – 2020

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The Prime Minister signed the Decision No. 1614/QD-TTg approving scheme for “conversion of uni-dimensional poverty measure into multi-dimensional poverty measure for the period of 2016 – 2020” on September 15, 2015, within that the Decision emphasizes that the poverty line for the period of 2016 – 2020 shall be built as combine income-based poverty line and the lack of access to basic services; establish minimum income standard to ensure social security for the people, and apply policy poverty line to classify poor households in accordance with government budget.

In particular, poor households  is a household whose per capita income does not exceed the policy poverty line or exceeds the policy poverty line but lower than the minimum income standard  and it is deprived in a third or more of ten indicators of basic services. Near poor household is a household whose per capita income exceeds the policy poverty line but does not exceed the minimum living standard and it is deprived in a third or more of ten indicators of basic services. Household without complete access to basic services is a household whose per capita income exceeds the minimum income standard and it is deprived in a third or more of ten indicators of basic services.

Similarly, household with below median living standard is a household whose per capita income is lower than the median living standard but exceeds the minimum living standard.

This Decision takes effect on the signing date.

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