The Role of Irrigation Investment in Poverty Reduction in the Mekong Delta

The Mekong Delta (MD) is a key agricultural region in Vietnam, yet poverty remains a challenge due to climate change, natural disasters, and inadequate infrastructure. Among policy interventions, irrigation investment is considered crucial for enhancing agricultural productivity and improving rural livelihoods. This study employs the Pooled Mean Group (PMG) estimation method on panel data from 2009 to 2023 to assess the impact of irrigation investment on poverty reduction in the MD. The results confirm that irrigation investment significantly lowers poverty rates, with long-term effects being more pronounced. Additionally, macroeconomic factors such as GDP growth, education expenditure, and overall investment contribute to poverty alleviation, while unemployment has a negative impact. The findings emphasize the need for sustained and strategic irrigation investments to ensure economic resilience and long-term poverty reduction in the MD.