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Available. Open Access. Open Access
Article
Publication date: 27 November 2020

Huong Thi Lan Huynh, Lieu Nguyen Thi and Nguyen Dinh Hoang

This study aims to evaluate the impact of climate change on some specific areas of agricultural production in Quang Nam Province, including assessing the possibility of losing…

4603

Abstract

Purpose

This study aims to evaluate the impact of climate change on some specific areas of agricultural production in Quang Nam Province, including assessing the possibility of losing agricultural land owing to sea level rise; assessing the impact on rice productivity; and, assessing the impact on crop water demand.

Design/methodology/approach

This study used the method of collecting and processing statistics data; method of analysis, comparison and evaluation; method of geographic information system; method of using mathematical model; and method of professional solution, to assess the impacts of climate change.

Findings

Evaluation results in Quang Nam Province show that, by the end of the 21st century, winter–spring rice productivity may decrease by 33%, while summer–autumn rice productivity may decrease by 49%. Under representative concentration pathway (RCP) 4.5 scenario, water demand increases by 31.1% compared to the baseline period, of which the winter–spring crop increases by 28.4%, and the summer–autumn crop increased by 34.3%. Under RCP 8.5 scenario, water demand increases by 54.1% compared to the baseline period, of which the winter–spring crop increases by 46.7%, and the summer–autumn crop increased by 63.1%. The area of agricultural land likely to be inundated by sea level rise at 50 cm is 418.32 ha, and at 80 cm, it is 637.07 ha.

Originality/value

To propose adaptation solution to avoid the impacts of climate change on agriculture, it is necessary to consider about the impact on losing land for agriculture, the impact on rice productivity, assess the impact on crop water demand and other. The result of this assessment is useful for policymakers for forming the agriculture development plan.

Details

International Journal of Climate Change Strategies and Management, vol. 12 no. 5
Type: Research Article
ISSN: 1756-8692

Keywords

Available. Open Access. Open Access
Article
Publication date: 12 September 2023

Mai-Huong Vo, Ngoc-Anh Nguyen, Estelle Dauchy and Nuong Nguyen

This study aims to estimate the pass-through rate of the increases in the excise tax and TCF tax on tobacco in Vietnam. This study seeks to shed light on how the tax burden is…

1337

Abstract

Purpose

This study aims to estimate the pass-through rate of the increases in the excise tax and TCF tax on tobacco in Vietnam. This study seeks to shed light on how the tax burden is split between consumers and producers and inform policy discussions in the country. Using panel micro-level data collected from three waves of a nationwide retailer's survey, this study provides an evidence-based pass-through estimation for tobacco tax in Vietnam and contributes to the understanding of tax policy on smoking and smoking-related issues.

Design/methodology/approach

Following increases in the excise tax and TCF tax on tobacco in 2019, the differential effect of the tax hike on the “treatment group” (domestic cigarettes) versus the “control group” (illicit cigarettes) using a difference-in-difference (DID) analysis has been studied. The study utilized unique longitudinal retailers’ data on cigarettes prices in Vietnam from 2018 to 2019 to estimate the tax pass-through rate for some of the most popular factory-made cigarette brands.

Findings

This study found evidence of an over-shifting of cigarette taxes on smokers. Specifically, it discovered that the tax increase is absorbed more by low-priced brand smokers compared to premium brand users due to (1) the limited increase in prices under a pure ad valorem system and (2) the way the Vietnamese currency is denominated. Additionally, there is evidence of cushioning to mitigate price shock on consumers as the real prices increase gradually over the period of one year after the tax change.

Originality/value

To the best of the authors’ knowledge, this study is the first to collect and analyze a unique panel micro-level data from three waves of a nationwide retailers’ survey, which captures the changes in marketing and pricing strategies of the tobacco industry in Vietnam before and after an increase in excise tax in 2019. The results of this study could be used as a reference for future policymakers in considering increasing taxes on tobacco.

Details

Fulbright Review of Economics and Policy, vol. 3 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Available. Open Access. Open Access
Article
Publication date: 13 August 2024

Dao Van Le and Tuyen Quang Tran

This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.

374

Abstract

Purpose

This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.

Design/methodology/approach

The study employs a two-system generalized method of moments (GMM) estimator and data from 2012 to 2019 across all 63 provinces/cities of Vietnam.

Findings

The study finds that local budget retention rates significantly influence public investment, affecting scale and allocation efficiency. The reallocation of budgets between regions and from the central government to local levels incurs certain costs, often resulting in economically robust provinces experiencing reductions in their retention rates.

Practical implications

Recognizing the challenges of immediate structural budget changes due to cultural and historical factors, the study suggests a more gradual policy approach. It emphasizes the importance of policy predictability, as abrupt reductions in the retention rate lead to higher costs than gradual reductions, thus implementing budget policies with a clearer timeline. This study provides insight into local budget allocation regimes and their impact on productivity in transitioning countries.

Originality/value

First, the study provides fresh evidence of the impact of retention rate changes on TFP and its components in Vietnam. Second, the study provides insights into the mechanisms of the nexus of increased budget spending, capital efficiency and, most importantly, attaining improvement in education. We also offer further insights into inefficient budget allocation agents in Vietnam, especially in large cities, which should alert scholars to explore this topic further in the future.

Available. Open Access. Open Access
Article
Publication date: 14 November 2023

Cuong Le-Van, Ngoc-Anh Nguyen, Ngoc-Minh Nguyen and Phu Nguyen-Van

The authors estimated the hidden overhead (capital diversion or wasteful use of capital) of Vietnam state-owned enterprises (SOEs).

652

Abstract

Purpose

The authors estimated the hidden overhead (capital diversion or wasteful use of capital) of Vietnam state-owned enterprises (SOEs).

Design/methodology/approach

The authors used a panel data set of 10,200 Vietnam SOEs observed over the period 2010–2018. The authors modeled and estimated the hidden overhead by using a stochastic production frontier. The hidden overhead parameter is modelled as the technical inefficiency in the production function.

Findings

Vietnam SOEs are very capital intensive. The hidden overhead (or the wasteful use of capital) is very high with an average rate of 69%.

Research limitations/implications

Alternative estimation methods should be used to account for endogeneity in production inputs. Lack of comparison with the Vietnam private firms.

Originality/value

The paper proposes an original way to quantify hidden overhead (or capital diversion) in the Vietnam SOEs. The finding (a capital diversion rate of 69% on average) is astonishing. It calls for an urgent and profound reform of the Vietnam SOEs.

Details

Fulbright Review of Economics and Policy, vol. 3 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Available. Open Access. Open Access
Article
Publication date: 1 August 2023

Lam Do and Thai-Ha Le

This research investigates how subsidy programs in Vietnam's residential electricity market affect consumers' well-being.

1174

Abstract

Purpose

This research investigates how subsidy programs in Vietnam's residential electricity market affect consumers' well-being.

Design/methodology/approach

Two perspectives are employed: cash transfer and quantity-based subsidy. The effectiveness of cash transfer is measured in three ways: benefit incidence, beneficiary incidence and materiality. The quantity-based subsidy is established under the increasing block rate pricing, with the first two block rates being lower than the marginal cost. To improve the quantity-based subsidy, the research examines the consumer surplus under four proposals.

Findings

The results show that both types of subsidies are ineffective in supporting the poor.

Research limitations/implications

In order to achieve a more equal distribution among households, the subsidy program should remove all subsidized blocks and reflect the full marginal cost. Changes should be made to the price structure regarding both marginal price and intervals.

Practical implications

To mitigate the impact of the quantity-based subsidy, the government should improve the cash transfer by reducing extortion and improving targeting efficiency, especially for poor households living in rented houses.

Originality/value

This paper is the first to discuss the welfare effect of the electricity subsidy in Vietnam. First, it comprehensively evaluates the cash transfer subsidy in Vietnam. Second, it suggests a modification in the residential electricity tariff.

Details

Journal of Economics and Development, vol. 25 no. 4
Type: Research Article
ISSN: 1859-0020

Keywords

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