This report analyzes equity and financial protection in the health sector of Vietnam. In particular, it examines inequalities in health outcomes, health behavior and health care utilization
benefit incidence analysis
financial protection
and the progressivity of health care financing. Data are drawn from the 1992-93 and 1997-98 Vietnam living standards survey, the 2002, 2004, 2006, and 2008 Vietnam household and living standards survey, the 2002 Vietnam demographic and health survey, the 2002 Vietnam world health survey, the 2006 Vietnam multiple indicator cluster survey and the 2006 Vietnam national health accounts. All analyses are conducted using original survey data and employ the health modules of the ADePT software. Overall, health care financing in Vietnam in 2006 was fairly progressive, i.e. the better-off spent a larger fraction of their consumption on health care than the poor. The financing sources that contribute to the overall progressivity of health care finance are general taxation, which finances 27 per cent of domestic spending on health, and out-of-pocket payments, which finance 55 per cent of spending. The most progressive source of health finance is actually Social Health Insurance (SHI) contributions, which is unsurprising given that they are paid largely by formal sector workers who are among the better-off
however, SHI contributions finance just 13 per cent of health spending. Voluntary insurance is mildly regressive, but this finances an even smaller share of total health spending.