Vietnam's 'poverty trap': Medical costs push families into destitution despite high insurance coverage

Thousands of families in Vietnam are being pushed into poverty, caught in a 'poverty trap' stemming from high medical costs associated with prolonged illnesses. This situation persists even as the country boasts near-universal health insurance coverage, with a roadmap for free basic healthcare for all citizens having been established starting in 2026.

The paradox lies in the fact that despite the high insurance penetration rate, the financial strain of continuous medical treatment for chronic or long-term conditions remains overwhelming for many households. These escalating expenses often deplete savings and force families into debt, creating a cycle of poverty that is difficult to escape.

The government's initiative to build a roadmap for universal free basic healthcare, beginning in 2026, aims to address this critical issue. However, the immediate reality for numerous families is the ongoing struggle against debilitating sickness and the crippling costs it entails. The effectiveness and timeline of the new healthcare strategy's impact on alleviating these financial burdens are yet to be fully realized.