Multi-dimensional energy poverty and inequality in Vietnam

Mỹ Huyền Trần
Oct 3, 2025
2 min read

Updated: Oct 6, 2025

Latest research article by Dr. Nguyen Phuc Canh, HAPRI's Senior Researcher.

This study presents a comprehensive analysis of energy poverty and associated inequalities in Vietnam from 2004 to 2020, emphasizing the multidimensional nature of the issue. It proposes a novel strategy for measuring energy poverty in a developing country context and calls for targeted action to alleviate energy poverty and promote equitable energy access.

This research contributes by employing a multidimensional framework to assess energy poverty in Vietnam during the 2004–2020 period. Traditional indicators typically focus on access (in low-income countries) or affordability (in developed nations). The study introduces four core metrics to construct the Multidimensional Energy Poverty Index (MEPI), capturing diverse aspects such as income, expenditure, affordability, and access to modern technologies:

TPR - Ten-percent indicator
LIHC - Low-income high-cost
M2 - Half-median spending
MOT - Limited modern appliances

Depicts Vietnam’s economic trajectory from 1986 to 2023, highlighting a threefold increase in GDP per capita and growth rates surpassing global averages.

Key Findings

MEPI values are highest in economically underdeveloped and infrastructure-deficient regions, notably the Northwest, Northeast, North Central Coast, and Central Highlands. In contrast, coastal provinces and economically advanced areas such as the Red River Delta and Southeast region exhibit lower energy poverty, likely due to greater globalization opportunities and improved household incomes.

Temporal Trends: Between 2004 and 2020, income-related energy poverty indicators (TPR and LIHC) increased, indicating a growing burden of energy costs on household incomes. Conversely, the MOT index (access to modern appliances) declined, reflecting improved living standards.

Vulnerable Groups and Inequality: The study identifies significant disparities in energy poverty levels across socioeconomic and demographic groups.

Policy Implications

The findings highlight that multidimensional energy poverty requires more than a “one-size-fits-all” solution. While electricity access has improved, many households still face energy poverty due to income burdens, expenditure constraints, or lack of modern appliances.

Targeted Policies and Programs: Government efforts should prioritize transforming lives rather than merely increasing megawatt capacity.
Subsidies: Implement targeted subsidy programs for vulnerable households.
Rural Infrastructure Investment: Enhance infrastructure to support energy access in rural areas.
Technology Access: Improve access to modern energy technologies.
Role of Education: Education is implied to be a critical tool in combating energy poverty.
Prioritizing the Disadvantaged: Policies should address the root causes of energy poverty, especially among the most disadvantaged groups, including the elderly, rural residents, and low-income households.