How would cash transfers improve child welfare in Viet Nam?

This paper was aimed to estimate how cash transfer to children could help increase access to education and health services as well as to reduce their poverty. To pursue these objectives, we first applied fixed-effect regression models with a panel data from Vietnam Household Living Standard Survey (VHLSS) in 2010 and 2012, and then used the predicted results to simulate how welfare indicators would have been changed if children were provided benefits at different levels. We found that cash transfers would have a positive effect on school enrolment and poverty. However, cash transfers would have no significant effects on both impatient admissions and outpatient visits as well as out-of-pocket spending on health care, but a significant effect on the probability of having health insurance. From these findings, we proposed some policy recommendations such as promoting cash transfer program for more vulnerable groups of children would provide opportunities for them to further reduce poverty and increase access to education and health. More importantly, the research emphasized that quality of services to be provided along with cash transfers should also be guaranteed, so as to make sure that the current benefits will be fully translated into socio-economic development of Viet Nam.