VNMOD – simulating tax and benefit policies for development in Viet Nam
VNMOD, the tax-benefit microsimulation model for Viet Nam, has been developed in cooperation with the Central Institute for Economic Management (CIEM) and KU Leuven. The newest version of VNMOD is based on the Viet Nam Household Living Standard Survey (VHLSS) 2012, allowing for representative results on the national and sub-national level. Policies are simulated for 2012 through 2016 (based on updated household level data from 2012).
VNMOD is a highly versatile yet easy to use tool for policymakers and researchers alike. Possible policy reform simulations in VNMOD include, for example, amendment of personal income tax and contributions to social insurance by employers and/or employees. With VNMOD, simulations are currently viable for selected tax instruments. Accordingly, the impacts on state budget revenues can be simulated to answer different policy questions. For example, would the value of tax deduction for dependents be larger in urban or rural areas? What is the revenue implication from switching toward a household-based tax unit, compared to the current setting of individual-based tax unit?, etc.
VNMOD was launched in November 2017. The first training course took place back to back with the launch event in Hanoi, Viet Nam.