VNMOD – simulating tax and benefit policies for development in Viet Nam
VNMOD model itself is freely accessible for non-commercial research use but input data has to be manually constructed. Access to the model and the Stata do-files necessary to produce the underpinning data set that corresponds to the model can be requested here.
VNMOD, the tax-benefit microsimulation model for Viet Nam, is a highly versatile yet easy to use tool for policymakers and researchers alike. It allows the user to analyse and compare the effects of different benefit policy scenarios on poverty, inequality, and government revenues. The model applies user-defined tax and benefit policy rules to micro-data on individuals and households and calculates the effects of these rules on household income.
With VNMOD, users can simulate hypothetical reforms of the tax-and-benefit system. They can estimate, for example, the number of beneficiaries and analyse the characteristics of the prospective recipients of a hypothetical benefit. VNMOD also allows users to implement hypothetical income tax and social security reforms and calculate their effects on the government budget.
VNMOD can answer for example following questions:
- 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?
Possible policy reform simulations in VNMOD include for example:
- Amendment of personal income tax and contributions to social insurance by employers and/or employees.
VNMOD has been developed in cooperation with the Central Institute for Economic Management (CIEM) and KU Leuven. The model has been developed further with the support from Southern African Social Policy Research Insights (SASPRI). The latest version of VNMOD is based on the Viet Nam Household Living Standard Survey (VHLSS) 2016, allowing for representative results on the national and sub-national level. Policies are simulated for 2012 through 2019.
VNMOD was launched in November 2017. The first training course took place back to back with the launch event in Hanoi, Viet Nam. The second training course was organized in 2018. Altogether around 90 participants including government officials, researchers, and other stakeholders have enrolled in the VNMOD training events.