Subsidies and taxes in Viet Nam’s energy sector, and their effects on economic development and income distribution in the context of responding to climate change

Viet Nam is capping electricity and fossil fuel prices, which amounts to very substantial indirect government subsidies to energy prices. These policies are not sustainable, are benefiting the better off more than the poor, and are counter-productive for future growth and modernisation, whilst also contributing to climate change. Fossil fuel fiscal reform may have economic, social and environmental benefits, as has been shown in many other countries. The G-20 and APEC leaders, including the Vietnamese president, agreed in 2009 to phase out ‘inefficient fossil fuel subsidies’, and this may also be addressed at the Rio+20 conference in June 2012. Such reform is also in line with the objectives of the forthcoming national Green Growth Strategy, and requires strengthening of the ongoing energy markets reform and of state owned energy enterprise reform.

Measuring citizens’ experiences

“People know, people discuss, people do and people verify” is a Vietnamese phrase that perhaps best summarizes the goals of the Provincial Governance and Public Administration Performance Index (PAPI). PAPI provides objective information about citizens’ experiences and interactions with local authorities, thus “people know”. It provides a means for the discussion and validation of findings at central and local levels in order for people to discuss. PAPI illuminates the collective experience of what citizens do, enabling policy makers to act in their interests, thereby fulfilling the precept that “people do”. Finally, PAPI provides a tool to assess actual administrative performance allowing people to verify.

Findings and recommendations from a three province pilot

This paper outlines an experimental research study aiming to measure justice in Viet Nam from citizen’s experience and perception. It illustrates the survey methodology and instrument used in ascertaining respondents’ reaction to justice through case study on environmental and land disputes. As an outcome, the study sheds light on the reality of huge gap between law and practice, the existence of a legal pluralism system where formal, informal and customary institutions are found synergy.

This set of five comparative studies gives an insightful and comprehensive assessment of the justice system in five countries -- China, Indonesia, Japan, Republic of Korea and Russian Federation -- which have been selected on the basis of their interest for Viet Nam having regard to their socio-economic development, political system, history and culture. While giving prominence to the court system as a core part of the inquiry, the reports examine other related institutions in the justice system and provide a broad base for comparing judicial reforms in the respective countries and Viet Nam. It is expected that this volume will facilitate the work of policy makers in advancing the domestic judicial reform agenda.

Click here to download the Russia, Korea, Japan, Indonesia and China reports

Viet Nam Human Development Report 2011

This national Human Development Report provides an evidence-based analysis of Viet Nam's human development progress at the sub-national level, focusing specifically on issues around health and education. It looks at the challenges many Vietnamese face in accessing basic social services. The report shows how rising economic inequality is accompanied by persistent disparities in key education and health indicators. It concludes that if Viet Nam is to continue moving to higher levels of human development, ensuring universal, equitable access to health and education is essential.