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Last updated: 04/3/2024

Electricity and fuel subsidies (cash transfer)

Basic Information

Country
Geographic area
East Asia & Pacific
Programme type
Population group
Poor households

Programme Details

Programme objectives

To provide price protection from increasing electricity costs to poor/social policy households (under Decision 28/2014 and Decision 60/2014).

References
NDP 2017. ‘Ensuring Social Equity in Viet Nam’s Power Sector Reforms’, UNDP, <http://www.vn.undp.org/content/dam/vietnam/docs/Publications/Policy discussion paper.pdf?download> (accessed 22 May 2018). Personal communication
Programme components
On-grid households receive a cash transfer covering the cost of the first 30 kWh per month (provided that they keep their electricity consumption up to 50 kWh per month); Off-grid households receive an annual cash transfer for fuels. Furthermore, electricity prices are based on usage, with lower prices per unit of electricity for those who use less.
References
UNDP 2017. ‘Ensuring Social Equity in Viet Nam’s Power Sector Reforms’, UNDP, <http://www.vn.undp.org/content/dam/vietnam/docs/Publications/Policy discussion paper.pdf?download> (accessed 22 May 2018). UNDP 2016. ‘Social Assistance in Viet Nam: Review and Proposals for Reform’, UNDP, <http://www.vn.undp.org/content/vietnam/en/home/library/poverty/social-assistance-in-viet-nam.html> (accessed 22 May 2018).
Start date
2011
References
The programme was revised in 2014. Personal communication
Coverage
60% of households recongized as poor by the government.
References
Do, L. and Le, T.-H. (2023), "On the welfare effect of retail electricity subsidy in Vietnam", Journal of Economics and Development, Vol. 25 No. 4, pp. 286-301. https://doi.org/10.1108/JED-02-2023-0034.
Programme expenditure
VND 272 billion, or 0.02% of GDP (2013).
References
UNDP 2016. ‘Social Assistance in Viet Nam: Review and Proposals for Reform’, UNDP, <http://www.vn.undp.org/content/vietnam/en/home/library/poverty/social-assistance-in-viet-nam.html> (accessed 22 May 2018).

Targeting and eligiblity

Targeting methods
Proxy Means Test
Categorical Targeting
References
UNDP 2016. ‘Social Assistance in Viet Nam: Review and Proposals for Reform’, UNDP, <http://www.vn.undp.org/content/vietnam/en/home/library/poverty/social-assistance-in-viet-nam.html> (accessed 22 May 2018). Cuong, N.V. and Duc, L.T. 2016. Testing Proxy Means Tests in the Field: Evidence from Vietnam. < https://mpra.ub.uni-muenchen.de/80002/1/MPRA_paper_80002.pdf >(accessed 22 May 2018).
Targeted areas
Nationwide.
References
UNDP 2016. ‘Social Assistance in Viet Nam: Review and Proposals for Reform’, UNDP, <http://www.vn.undp.org/content/vietnam/en/home/library/poverty/social-assistance-in-viet-nam.html> (accessed 22 May 2018).
Target groups
Low income households.
References
UNDP 2016. ‘Social Assistance in Viet Nam: Review and Proposals for Reform’, UNDP, <http://www.vn.undp.org/content/vietnam/en/home/library/poverty/social-assistance-in-viet-nam.html> (accessed 22 May 2018).
Eligibility criteria
Registered poor households with a monthly income below VND 1,100,000 in rural areas, and VND 1,300,000 in urban areas. On-grid households registered in the poor list must keep their electricity consumption up to 50 kWh per month. Local authorities collect beneficiaries' electricity bills as documentation for providing the payments.
References
Do, L. and Le, T.-H. (2023), "On the welfare effect of retail electricity subsidy in Vietnam", Journal of Economics and Development, Vol. 25 No. 4, pp. 286-301. https://doi.org/10.1108/JED-02-2023-0034

Coverage and other information

Type of benefits
Subsidies.
References
UNDP 2016. ‘Social Assistance in Viet Nam: Review and Proposals for Reform’, UNDP, <http://www.vn.undp.org/content/vietnam/en/home/library/poverty/social-assistance-in-viet-nam.html> (accessed 22 May 2018).
Amount of benefits
VND 50 000 per month.
References
Do, L. and Le, T.-H. (2023), "On the welfare effect of retail electricity subsidy in Vietnam", Journal of Economics and Development, Vol. 25 No. 4, pp. 286-301. https://doi.org/10.1108/JED-02-2023-0034
Payment/delivery frequency
Monthly
References
Do, L. and Le, T.-H. (2023), "On the welfare effect of retail electricity subsidy in Vietnam", Journal of Economics and Development, Vol. 25 No. 4, pp. 286-301. https://doi.org/10.1108/JED-02-2023-0034.
Benefit delivery mechanism
Local authorities distribute the benefits.
References
UNDP 2017. ‘Ensuring Social Equity in Viet Nam’s Power Sector Reforms’, UNDP, <http://www.vn.undp.org/content/dam/vietnam/docs/Publications/Policy discussion paper.pdf?download> (accessed 22 May 2018).

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