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Very low electricity price set for basic need: new research


shutterstock 211130215Ha Noi 10 January 2017 – “For the first 30kWh per month, a minimal price should be set for all electricity users per month and cash transfer should be eliminated”, recommends a policy discussion paper launched today by the Centre for Analysis and Forecasting of Viet Nam Academy of Social Sciences (CAF/VASS) in collaboration with the United Nations Development Programme in Viet Nam (UNDP) and the British Embassy in Ha Noi.

The paper also recommends another option for the concessional first 30 kWh per month, a freezing of the current tariff and a radical simplification of the cash transfer – merging it into other transfers – and abolishing the usage requirement.

The paper, “Ensuring social equity in Viet Nam’s power sector reforms”, argues that an increase in power tariffs in 2017 and later seems inevitable but current mitigation measures to protect low-income groups against these rises cannot be justified on both efficiency and equity grounds. It points out a number of shortcomings of the current measures and suggests a new mechanism of mitigation measures to ensure social equity in the transition toward a full retail power market and low carbon economy.

According to UNDP Deputy Country Director in Viet Nam Akiko Fujii, today’s workshop presents the fourth and final research outputs of a joint programme between UNDP and a host of national partners  that started in 2010 to support the Government in reforming fossil fuel fiscal policies in Viet Nam.

“The measures proposed today for changes to the tariff structure and electricity cash transfer, do not re-impose a social responsibility on the Electricity of Viet Nam (EVN) but rather they re-shape the charging system to maximize welfare and redistribute costs between users,” Ms Akiko Fujii emphasized. “They offer the basis of a socioeconomically and environmentally sustainable charging system – both protecting the poor and incentivizing energy efficiency”.  

For small and medium enterprises, the paper urges Government to assist and incentivize firms to adopt energy efficient practices and new technologies, so that they can benefit rapidly from tariff changes and ease the transition.

‘’Price changes should be carefully discussed with stakeholders and effectively communicated with enterprises and households in a timely manner to reach consensus in the society’’, said VASS Vice President Phạm Văn Đức.

The paper also highlights the need to explore the possibility of scaling up the production of alternative forms of energy such as wind and solar power. “Technological breakthroughs have led to low cost power plans and the possibility of ‘distributed’ (local) power production through which consumers can reduce their electricity bills and local mini-grids can help remote communities and islands access energy,” the paper says.

“The future will be low carbon,” said Ambassador Giles Lever of the British Embassy in Viet Nam. “The Paris Agreement sent a clear signal on this. The UK has already reduced its emissions by 29% compared with 1990 and we will have reduced our emissions by 52% by 2028. In Vietnam, we are committed to working, along with other international partners, to show that cleaner, lower-carbon growth is not just technically possible, but can lead to a more prosperous and sustainable future”.  

The paper is based on two major research studies – quantitative and qualitative – by the CAF/VASS and the Central Institute for Economic Management with support from UNDP; the UK Foreign and Commonwealth Office and the British Embassy in Viet Nam.

For more information, please read UNDP speech; Policy Brief; the discussion paper

Media contacts
Ms Vu Thi Van Ngoc, VASS Center for Analysis and Forecasting. Tel: 84-4-62730475. Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ; or
Nguyen Viet Lan, UNDP Communication. Tel: 84-4-38500158. Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it.



New Year Greetings from the United Nations Resident Coordinator a.i. in Viet Nam


On the occasion of New Year 2017, on behalf of the United Nations family in Viet Nam I wish to reiterate our appreciation and express our warmest wishes to our partners and friends throughout the country. We wish our partners and their families in Viet Nam peace, prosperity, good health and happiness in the coming year.

As we enter the second year of the Sustainable Development Goals era, we look forward to continuing our close cooperation for the sake of Viet Nam’s future development; one which is inclusive, equitable and sustainable, with no one left behind.

Youssouf Abdel-Jelil
United Nations Resident Coordinator a.i. in Viet Nam


UN Secretary-General Ban Ki-moon’s message for World AIDS Day, observed on 1 December


Thirty-five years since the emergence of AIDS, the international community can look back with some pride.  But we must also look ahead with resolve and commitment to reach our goal of ending the AIDS epidemic by 2030.

There has been real progress in tackling the disease. More people than ever are on treatment.  Since 2010, the number of children infected through mother to child transmission has dropped by half. Fewer people die of AIDS related causes each year.  And people living with HIV are living longer lives.

The number of people with access to life-saving medicines has doubled over the past five years, now topping 18 million. With the right investments, the world can get on the fast-track to achieve our target of 30 million people on treatment by 2030.  Access to HIV medicines to prevent mother to child transmission is now available to more than 75 per cent of those in need.


The secretary-general's message for the International Day to End Violence against Women and Girls


25 November 2016 - At long last, there is growing global recognition that violence against women and girls is a human rights violation, public health pandemic and serious obstacle to sustainable development.  Yet there is still much more we can and must do to turn this awareness into meaningful prevention and response.


UNIDO Director General's Op-Ed Article to media on the occasion of UNIDO's 50th anniversary


Did you know that in Viet Nam, the net flow of foreign direct investment increased from USD1billion in 2003 to USD10 billion in 2008, and that by 2015 reached USD23 billion?  Or that the total value of exports rose from USD2 billion in 1990 to USD72 billion in 2010, to reach USD162 billion in 2015? These impressive figures highlight the country’s robust economic success, providing a boost to the economy and employment.

These accomplishments are largely due to the reforms undertaken by Viet Nam since Doi Moi in 1986 which liberalized the economy, attracted foreign investment, fostered exports and reduced poverty. To prepare for reform, Viet Nam received extensive technical assistance from the international community, including from the United Nations Industrial Development Organization (UNIDO), well before 1986 and, more precisely, since 1978.

For more than 35 years, UNIDO has been sharing international best practices to help Viet Nam develop inclusive and sustainable industry. With more than USD100 million in expenditure, UNIDO’s technical cooperation activities have been carried out across a broad range of fields, including support to the private sector and technical and industrial research organizations, facilitation of technology transfer, trade capacity-building, human resource development, environmental protection, energy efficiency, investment promotion and responsible business practices.


Call for participation - Volunteering for SDGs – UNV Vietnam Facebook Photo Contest

Volunteering for Sustainable Development Goals – UNV Vietnam Facebook Photo Contest

On the occasion of International Youth Day (IYD) celebration event organized by the UN in Vietnam "Vietnamese Youth: Partners in achieving the Sustainable Development Goals", the UNV Field Unit (FU) in Vietnam is thrilled to launch its Facebook Photo Contest – "Volunteering for Sustainable Development Goals". Vietnamese Youth is a driving force of Volunteerism and has an important role to play in achieving SDGs, including through Volunteer activities. Show the world how you contribute to achieving the SDGs by Volunteering! Either you are a young volunteer or any other kind of volunteer, you are welcome to join the contest!

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