Page 212 - AJWEP-v22i3

Hung and Nghiem

nations due to higher baseline exposure, greater The strong urbanization-pollution relationship highlights
population vulnerability, and limited healthcare access. the critical importance of environmental considerations
The fact that IV estimates are somewhat lower in urban planning processes. Vietnam’s continued rapid
than OLS results (2.315 vs. 2.98) suggests that simple urbanization – projected to reach 50% of the total
correlations may overstate pollution’s health impact population by 2030 – makes the integration of urban
due to confounding factors. Cities with higher pollution planning into sustainability policies essential. Cities
levels might also have other characteristics – such as should prioritize compact, transit-oriented development
industrial composition, population density, or healthcare over sprawling, car-dependent growth patterns.
infrastructure – that independently affect health
outcomes. Our IV approach helps isolate pollution’s 5.2.2. Transportation sector transformation
causal impact by leveraging variation in industrial Given transportation’s substantial contribution to urban
composition that affects pollution but not health through air pollution, particularly NO2 and PM2.5 from vehicle
other channels. exhaust, transforming Vietnam’s transportation system
These health impacts translate into substantial represents a critical policy priority. This transformation
economic and social costs. Respiratory disease should encompass both regulatory and investment
episodes generate direct medical costs, productivity approaches.
losses from work absences, and reduced quality of Vehicle emission standards require immediate
life. For Vietnam’s urban population of approximately strengthening and enforcement. Vietnam should
35 million, even small changes in disease rates imply accelerate the adoption of Euro 5 and eventually Euro
thousands of additional cases annually, representing 6 fuel and vehicle standards, following successful
significant burdens on healthcare systems and economic implementations in European and other Asian countries.
productivity. Stricter inspection and maintenance programs can
The policy analysis yields mixed but informative ensure existing vehicles meet emission requirements.
results. Environmental policies implemented since 2017 Electric vehicle promotion offers longer-term
achieved statistically significant but modest pollution pollution reduction potential. Vietnam’s government
reductions of approximately 1.5 μg/m . While this has announced targets for electric vehicle adoption,
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represents progress, it falls far short of the reductions but implementation requires supportive infrastructure
needed to meet air quality standards. Vietnam’s cities still including charging networks, financial incentives for
exceed national ambient air quality standards (25 μg/m consumers, and regulatory frameworks to encourage
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annual average for PM2.5) by substantial margins, and domestic manufacturing.
remain far above WHO guidelines (5 μg/m ).
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However, the fact that policies generated measurable 5.2.3. Industrial emission control
improvements demonstrates that interventions can succeed Our IV analysis demonstrates that industrial composition
even in rapidly growing economies. This finding provides significantly affects urban air quality, suggesting that
hope that scaled-up and strengthened policies could industrial emission control represents a crucial policy
achieve more substantial improvements. International lever. This requires both regulatory strengthening and
experience, particularly from China’s aggressive pollution economic incentives for cleaner production.
control efforts in the 2010s, demonstrates that rapid air Emission standards for industrial facilities need
quality improvements are possible with sufficient political regular updating and rigorous enforcement. Vietnam
commitment and policy implementation. should consider adopting international best practice
standards for major industrial sources, including power
5.2. Policy implications plants, cement factories, steel mills, and chemical
Our findings carry important implications for facilities. Regular monitoring and meaningful penalties
policymakers in Vietnam and other rapidly urbanizing for violations are essential for effective implementation.
developing countries. The established causal chain Economic incentives can complement regulatory
from urbanization through pollution to health outcomes approaches. Pollution pricing through taxes or cap-
underscores the urgent need for integrated urban and-trade systems can provide market-based incentives
planning that considers environmental and health for emission reductions while generating revenue for
consequences alongside economic development. environmental improvements. Several Vietnamese
provinces have experimented with environmental taxes,
5.2.1. Sustainable urban planning integration and expanding these approaches could prove effective.

Volume 22 Issue 3 (2025) 206 doi: 10.36922/AJWEP025130088