Electricity and fuel subsidies (cash transfer)
Basic Information
Country
Geographic area
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).
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.
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
The programme was revised in 2014.
Personal communication
Coverage
2 million recipients (2014).
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).
Programme expenditure
VND 272 billion, or 0.02% of GDP (2013).
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
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.
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.
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
Ethnic minority households and households on the poor list living in off-grid areas, poor households are entitled electricity subsidies. 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.
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).
Personal communication
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).
Coverage and other information
Type of benefits
Subsidies.
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 49.000 per month (2014).
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).
Payment/delivery frequency
Quarterly.
World Bank 2014. ‘Restructuring Paper on a Proposed Project Restructuring of Social Assistance System Strengthening Project Approved on January 22, 2014 to Socialist Republic of Vietnam’, World Bank, <http://documents.worldbank.org/curated/en/132371504598077189/pdf/IL-FRESDATA-EXT-P123960-09-05-2017-1504598067891.pdf> (accessed 22 May 2018).
Benefit delivery mechanism
Local authorities distribute the benefits.
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).
