The effects of urbanization on air pollution and public health in Vietnam: An empirical analysis

Vietnam’s rapid urbanization presents a critical challenge at the intersection of economic development and environmental health. This study examines the causal relationships between urbanization, air pollution, and public health outcomes across Vietnam’s major urban centers. Using a comprehensive panel dataset spanning 2013 – 2022 for 10 Vietnamese cities, we employed instrumental variable (IV) techniques to address endogeneity concerns and establish robust causal inference. Our findings revealed that urbanization significantly exacerbates fine particulate matter (PM2.5) air pollution levels, with each percentage point increase in urbanization rate associated with a 0.54 μg/m3 rise in PM2.5 concentration. Across IV analysis using industrial output share as an instrument, we demonstrated that PM2.5 pollution substantially impacts respiratory health outcomes, with each 1 μg/m3 increase leading to approximately 2.5 additional respiratory disease cases per 1,000 population. Environmental policies implemented across Vietnamese cities since 2017 have achieved modest but measurable success in mitigating pollution levels. These results underscore the urgent necessity for integrated sustainable urban planning and robust environmental governance to safeguard public health in Vietnam’s rapidly transforming urban landscape.