Public Disclosure Authorized Report No. 13200-VN Viet Nam EnvironmentalProgramand Policy Priorities for a SocialistEconomyin Transition Agricultureand EnvironmentOperationsDivision Country DepartmentI EastAsiaand PacificRegion ~ ~~~~~~~A. .. *4~ : 4~ ~ $4~ Public Disclosure Authorized The Supporting Annexes February27, 1995 Public Disclosure Authorized Public Disclosure Authorized (In Two Volumes) Volume Il: ~ ~ ~ ~ ~~~~~~~~~~~~~~~4 ~ 4 CURRENCY EOUIVALENTS The Vietnamesecurrency is the dong (D) Calendar 1993 August 1994 US$1.00 = D11,000 D 1,000 US$ 0.09 US$1.00 = D10,640 D 1,000 = US $0.09 Fiscal Year January 1 - December 31 Weifhts and Measures Metric System ACRONYMS ADB - Asian Development Bank AIDAB ASEAN - Australian InternationalDevelopmentAssistanceBureau Associationof South East Asian Nations ASS BAP - Acid Sulphate Soils Biodiversity Action Plan CIDA CEST CEMA - Canadian InternationalDevelopmentAgency Center for EnvironmentalScience and Technology Council of Mutual EconomicAssistance COM - Council of Ministers DFCS - Departmentof Fixed Cultivationand Sedenterzation,MOF EA or EIA EPZ - Environment Assessment Export Processing Zone ESCAP ESMAP - Economicand Social Council for Asia and the Pacific Energy Sector ManagementAssistanceProgram FAO - Food and Agriculture Organization FINNIDA FIPI GDLA - Finnish InternationalDevelopmentAgency Forest Inventory and PlanningInstitute General Departmentfor Land Administration GDP GOV HCMC - Gross Domestic Product Government of Viet Nam Ho Chi Minh City IDA - InternationalDevelopmentAssociation IPM - Integrated Pest Management ACRONYMS(continued) TUCN JICA MAFI - InternationalUnion for Conservationand Nature Japan InternationalCooperationAgency Ministry of Agriculture and Food Industry MDMP - Mekong Delta MFAP - Ministry of Fisheries and Aquatic Products MOC MOE MOF MOFA MOH MOHI MOLI - Ministry Ministry Ministry Ministry Ministry Ministry Ministry MLISA MOSTE - Ministry of Labor, Invalidsand Social Affairs Ministry of Science, Technologyand Environment MWVR NEA NGO - Ministry of Water Resources National Environment Agency Non-governmental Organization NIAPP NLEP NPEB NPESD NPV OOG PPC SCCI SCP SIDA - National Institutefor AgriculturalPlanningand Projections,MAFI National Law on EnvironmentProtection National Project EvaluationBoard National Plan for Enviromnentand SustainableDevelopment - Net Present Value Office of the Government Provincial Peoples Committee - State Commissionon Cooperationand Investment - State Commission on Prices - SwedishInternationalDevelopmentAgency SPC TA - State Planning Committee Technical Assistance UNCED UNDP UNEP - United Nations Council for Environmentand Development United Nations DevelopmentProgram United Nations EnvironmentProgram VND - Viet Nam Dong (currency) World Food Program WFP WHO of of of of of of of Construction Energy Forestry Finance Health Heavy Industry Light Industry VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES FOR A SOCIALISTECONOMYIN TRANSITION CONTENTS VolumeII Page No. Annex 1 StatisticalAnnex ................................. Annex 2 Index of Susceptibilityto Deterioration ....... Annex 3 Forest Degradationand the Evolution of Barren Lands ................................. Annex 4 Viet Nam War Damnagesand the Environment ...... Annex 5 Hill Area Programs with Environmental Implications: A Review .............................. Annex 6 Decree of the Council of Minister - No 327 ....... Annex 7 Watershed Erosion Impact and Costs: The Da Watershed .................................. I .............. 49 57 ........... 70 78 ........... 86 Annex 8 The Cost of Mangrove Destructionin Viet Nam ..... Annex 9 Law on EnvironmentalProtection ........ Annex 10 Environment-RelatedInstitutionaland Regulatory System .153 92 .......... ............... 103 136 Annex 1 Figures l.a - l.c Page I of 48 VIET NAM: INTERACTIONS OF INSECTICIDE AND FERTILIZER USE ON PLANTHPPER DENSITIES, TIEN GIANG NUMBER OF BPH/W8PH ECGS UNrr (0.05 M2.11EN PER SAMPLING a) ClANG 1200 1000 8o0 400 200I 0. IS 22 25 29 22 36 39 43 46 DOnotnse_ddm. noiameudde,. m nonmal 53 f(rulm 57 6064 67 71 74 76 SI 6s h4h fulrm -laSdde treated. nolms SertuJw NUMBER OF YOUNG BPH/VBPH NYPtHS PER SMtPLtNC UNIT (0.05MM)N. MEN ClNG ") 4000 3500 3000 2300 1500 1000 500 0 18 | 2:22529 no aeCUddes. normal (ertdzaer 32 3839 43 4850 sa3 ano Inccdee. 507 60 64 hslh h f(lw 67 71 7478 81 85 tmecudde troted. nren G1eUlzer NUMBER OF OLDBPH/WBPH NYMPHS PER SAMPLINGUNrr (0.05 M23.TIENGlANG C) 1000- soo900 700 500400 300 200 0 18 22 25 29 32 36394346 * InacctAdde. nora khut=e Onno 50 53 57 60 64 67 71 74 78 81 85 des. a high - Wtctdde norml trated. krdlime Planthopperdensitl atdaysafte rplanting3tmtmentL Fanret. fields Tien Clang Mekong Deta.Vieman 1991. Figuze3na SOURCE: FAO: InterCountry IPM Progam -2Annex Figures VIET NAM INTERACTIONS OF INSECTICIDE AND FERTILIZER USE ON BPH PREDATOR DENSITIES NUMBER OF CYRrORHINUS PER SAMPUNG UNrr 10.05 M2). TIEN CLANG d) 120 100 so o6 40 20 18 22 25 29 32 36 39 43 46 50 53 57 60 64 67 71 74 78 81 S5 nin ctcides. non-l fetzr Ono inrsecades. -hraecddce high fer,duhz tm.t:d. femilzer nornal NUMBER or wATERSuS PER SAMPLING UNrr (0.05 M2). nEN CLANG e) s0 so 40. 30 20 0 18 22 25 29 32 36 39 43 46 norm fel iuer 50 53 57 0064 67 71 74 7861 normal uhih fertlizer TOTAL NU?ABER OFr SPIDERS PER SAMAPLING UNIT (0.05 M21. TIEN s0 t°o S) 85 (raler IANG I 70. s0 On stsdes. nc so 40 nalnzect3cd-f. Phor snetcdes. ltnaectiet dea.fe ~ Inactdcce tre 3 *biaetidde td etd 30 20 10 18 222529032 30 lnaecticlde,. norna I farUiljwc 'no 39 43 46 50-5357 0 no Insecticide,. high fertlizer 60 6467 85 71 74 7881t .Inaecactde P, normal fertilb ted. at days after planttng 3 tretuwmes. Figure 3 d-f. PmedatorDensitas Vietnam1991. Farmersaeies TlenGlang,Mekong Delta, SOURCE: FAO: InterCountry 1PM Program 1 1.d - 1.f Page 2 of 48 -3An*ex 1 Table 1 Page 3 of 48 Land Susceptibility Classes (in thousand ha) Province Total Area Ha Giang Tuycn Quang Cao Bang Lang Son Bac Thai Lai Chau Son La Yen Bai Lao Cai Guang Ninh Vinh Phu Ha Bac Ha Noi i{ai Phong Ha Tay Hoa Binh Hai Hung Thai Binh Nam fia Ninh Binh Thanh l{os Nghe An Hsalinh Guang Binh Quang Tri Thua Thien-ilue Qang Nam Da-Na Quang Ngai Binh Dinh Phu Yen Khan lloa Ninh Thuan Binh Thuan Gia Lai I;onTum I)ac Lac Lam Dong Dong Nai Son Be Tay Ninh llo Chi Nlinh Vung Tau- Ba Ri Long An Tien Giang Ben Tre Dong Thap Vinh Long Tra Vinh Can Tho Soc Trang An Giang Kien Giang Minh llai Totals I/ Class I (least) 739 643 850 791 660 1733 1440 770 690 516 451 492 99 123 252 428 267 151 186 168 1145 1684 607 847 496 466 1200 520 634 521 484 356 815 1489 1086 1879 1024 594 936 400 190 190 446 227 212 316 154 202 302 327 331 582 792 383 40 736 249 688 1084 2721 7528 8093 944 6723 2483 5935 8828 4004 1897 1901 4455 2274 2119 3158 1543 2017 3016 3271 3305 5824 7919 32903 95918 241 593 503 348 1095 Class2 Class3 Class4 267 1828 958 3070 2661 5961 3737 4617 1592 3318 4225 4971 3953 2685 4709 2691 3628 173 1157 496 2336 2388 512 11316 9427 2778 3410 599 799 23 1593 1159 817 1047 1268 733 2452 1507 1540 72 2728 2950 1973 3240 1318 596 1446 2903 2871 1528 765 1146 2022 217 192 1448 4141 5372 3660 5042 1710 324 7957 387 1187 620 814 843 620 6798 9911 11899 7752 128 352 113 1793 374 425 230 130 194 3436 6393 186 110 1333 127 154 800 1027 438 187 1927 3358 2560 1172 2035 2374 2180 167 535 44711 120857 59933 Notcs:1/ Area totals not equal to those of the General Department of Land Management Source: Aldrick 1993 Clas 5 (most) 7590 Annex I Table 2 Fire Damage 1990-1992 (in ha) Province Ha Tuyen Ha GClng Tuyen Quing Cao Bang Lang Son Bac Thai LJi Cbau Son La Hoang Lieng Son Yen Bai Lao Cai GuangNinh Vinb Phu Ha Brc lis Nol Hai Phong lb SonBinh fin Tay Hon Binh lIai [lung Thai Binh HIa Nam Ninh Nam fia Ninh Binh Thanh boa NgbeTinh NgheAn fin Tinh Binh Tri Thicn Guang Binb Quang Tri Thus Thien-llue Qang Nam Da-Ns Quang Binh Quang Ngai Binh Dinh Phu Khan Phu Yen Khan lIor Thuan liii Ninh Thuan Binh Thuen Gin iai-Kon Tum Gin Lai Kon Tum Dac Lac Lam Dong Dong Nai Son Be Tny Nich llo Chli linh Vung Tau- En Rim Long An Tien Giang BenTre DongThap Cuu Long Vian Long Tra Vinh Ibu Glang Can Tho SocTrang An Glang Kien Gibng Minh Hal Totals Source: FIPI, I992 Page 4 of 48 Natural Forest Planted Forest Naturnl Forest Planted Forest Natural Forest Planted Forest 1992 1992 1991 19 191991 1990 35 0 3 0 6 18 1000 73 6 4 134 10 10 60 6 0 3 13 220 0 0 16 35 420 29 lie 5 0 276 3 9 9 47 30 9 257 21 34 210 56 27 244 12 S4 37 483 117 70 3210 98 0 62 417 1159 209 1401 121 647 IS0 6l 43 379 1700 0 57 543 3561 3087 1919 too 1563 407 330 10348 69S2 3379 524 316 519 26 53 22 2300 43 1130 1652 427 2400 6531 566s 20S7 Abnex 1 Table 3 Page 5 of 46 Total Forest Area (in thousand ha) Province 1943 1973 1985 Ha Giang Tuyen Quang Cao Bang LAng Son Bac Thai LAlChau Son La Yen Bai Lao Cai Guang Ninh Vinh Phu Ha Bac Ha Noi li Phong Ha Toy Hoa Binh Hai Hung Thai Binh Nam Ha Ninb Binb Thanh Hon Nghe An Ha Tinh Guang Binb Quang Tri Thus Thien-liuc Qang Nam Da-Nang Quang Ngal Binh Dinh Phu Yen Khan Hoa Ninh Thuan Binb Thuan Gin Lai-Kon Tum Dac LAc Lam Dong Dong Nai Son Be Tay Ninh la Chi Iinh Vung Tau- Ba Rir Long An Tien Giang Ben Tre Dong Thap Vinh Long Tra Vinb Can Tho SocTrang An Giang Kien Giang Minh lali 730 591 848 753 543 1447 1407 765 690 371 122 66 0 0 0 197 22 0 0 5 874 1006 393 537 381 333 879 170 202 402 412 320 444 2286 1865 996 378 610 157 0 119 0 0 48 0 0 65 4 41 40 288 437 i18 161 301 165 297 111 336 388 390 239 123 138 110 0 11 112 4 0 0 4 582 1024 293 259 210 275 707 125 221 284 266 63 209 1458 l00l 582 318 536 126 35 93 0 IS 12 0 0 17 0 19 7 128 216 159 159 46 146 127 230 125 103 75 82 51 47 I 0 3 81 3 0 0 0 295 732 272 208 52 219 327 103 157 116 13S 124 259 1331 907 755 247 226 75 39 27 19 16 7 0 0 18 0 4 0 4 157 22244 11889 8272 Totals Sources: Niourand, 1943.Forest Inventory and Planning Instiste, 1973, 1987. -6Annex 1 Table 4 (p.1) Table 6 of 48 Land Use and Land Cover 1985 (in thousand ha) Province Total Area Agriculture Land Annual Agriculture Land Perennial Agriculture Land Pasture Water Bodiesfor Irrigation Total Forest 6 12 27 12 22 37 52 16 7 0 3 0 15 0 0 4 36 23 7 2 2 2 3 26 12 0 1 1 0 0 0 0 0 0 0 1 0 0 3 0 1 IS 2 5 5 7 6 6 11 6 13 8 8 1 4 3 2 1 3 0 1 1 0 20 1 2 1 0 3 2 477 209 148 220 64 129 259 229 108 87 8 5 189 12 1 12 308 825 552 469 206 422 348 1472 1294 630 267 255 65 32 2 16 17 3 8 Natural Forest V Ha Tuyen Cao Bang LangSon Bsc Thai LaiChau SonLa HoangLiengSon GuangNinh Vinh Phu Hl Bac Ila Noi HaiPhong lIkSon Binh llai Hung Tbai Binh Ila NamNinh Thanh Hon NgheTinh Binh Tri Thien QangNam Da-Nang QuangBinh PhuKhan Thuan lizi Gia Lai-KonTum DacLac Lam Dong DongNai SonBe Tay Ninh llo Chi Ntinh VungTau- Ba Ri LongAn Tien Giang BenTre DongThap 1363 844 819 650 1714 1421 1485 594 457 462 215 ISO 579 255 153 380 1114 2249 1756 1198 1190 980 1137 2560 1980 1017 759 955 403 206 24 434 234 225 328 145 75 96 88 108 143 187 59 154 155 107 62 149 161 105 224 259 321 170 117 179 120 128 181 135 61 291 202 207 93 4 194 169 152 222 115 56 51 60 78 100 99 34 117 145 96 56 124 148 98 199 200 252 154 107 168 110 114 130 86 44 195 88 176 84 1 188 127 103 210 23 6 17 13 7 6 20 7 24 5 2 1 4 2 1 8 16 38 8 4 6 6 10 21 36 15 95 112 11 8 1 5 41 46 9 Cuu Long 386 277 230 47 0 0 2 0 Hsu Giang As Giang lIen Gisng Nlinh hai 616 342 624 777 491 245 282 404 442 239 251 340 48 3 29 44 0 0 0 0 1 3 2 20 7 16 92 180 4 0 57 176 33034 6919 5616 805 329 170 9642 9022 Totalis Source:GeneralDepartmentof Land Management, 1985. 426 196 115 207 61 122 219 188 89 70 2 3 176 3 0 10 249 768 510 459 195 418 345 1467 1284 621 246 253 64 15 2 0 0 3 0 AnMex I Table 4 (p.2) Page 7 of 48 Land Use and Land Cover 1985 (in thousand ha) Planted Forest Total Unused Land Flat Unused Land Upland Unused Land Other Land Ha Tuyen CaoBang LangSon BacThai LAiCbhu SonLA HoangLlengS GuangNinh Vinh Phu Ha Bac Ha Noi lial Phong Ha SonBinh HliHung ThaiBinh IlaNam Ninh Thanh lion NgheTinh Binh Tri Thien QangNamDaQuangBinh PhuKhan Thuanllai GinLai-Kon T Dae Lac LAm Dong DongNai SonDe Tay Ninh llo Chi IHinh VungTau- Ba LongAn Tien Giang BenTre DongThap Cuu Long llau Giang An Giang Kien Giang hlinh hai 51 12 33 13 4 7 39 41 19 17 6 1 13 9 I 2 59 57 42 10 12 4 3 6 10 9 21 2 1 17 0 16 17 0 8 2 3 16 35 4 534 326 507 233 1452 1086 861 175 113 55 23 3 136 4 I 12 408 863 686 484 686 220 550 827 499 217 122 445 98 10 10 178 13 14 43 20 19 28 201 106 0 0 0 4 0 0 0 11 2 4 4 2 1 1 1 3 11 23 21 10 23 9 47 0 0 0 32 21 53 10 3 178 13 14 43 20 19 27 175 106 534 326 507 229 1452 1086 861 163 111 Sl 20 2 135 2 0 9 397 840 665 474 663 211 503 827 499 217 91 424 45 0 7 0 0 0 0 0 0 1 25 0 208 235 68 110 90 63 179 131 83 165 76 80 106 79 46 132 139 240 349 128 118 219 III 79 52 110 78 52 33 71 8 46 36 56 55 87 100 53 50 87 Totals 619 12266 888 11378 4207 Province Sourcc:GeneralDepartmentof LandNianagemcnt,1985. - 8 - Annex 1 TaIble 5 (p.1 ) Page 8 of 48 LAND USE AND LAND COVER 1991 (IN THOUSAND HA) PROVINCE Totl Area AgEIcuJtuY Land Annal Agriculture LAnd Paddy Rice Perennid Agriculture Pasture Wter Bodies for Irrigation Total Forest Ha Glng Tayen Q g Cao Bag LangSou B cThai LaiCh a Son LA Yen Bal LaoCa Guang Nbh VinhPhu Ha Bac Ha Nol HalPhong Ha Tay Hoa Binh Ha Hung ThI Binh Nmn Ha Ninh Bbinh Thanh Hoa NgheAn Ha Tinh Guang Bbh Quang Tri ThuaThien-Hue Q:2 Nf Da-Nang Qung Ngal Binh Dinh Phu Yen Khan Hoa NinhThum BinhThan Gia Lad-Kon Tun Doc Lsc Lan Dong Dong Na Son Be Tay Nnh Ho Chl Mlnh Vng Tau- BRla Long An TienGlang Ben Tre DongThap Vibh Long Tr Viah CanTho SocTraug An Gbyg KlenGCng Mbh hal 733 530 844 817 650 1714 1421 680 805 594 484 461 92 150 215 461 255 152 242 139 1117 1638 605 793 459 501 1199 S86 608 522 526 343 799 2560 1980 1017 586 955 402 209 1% 434 234 225 328 149 237 305 311 342 624 769 130 90 73 35 75 107 174 71 39 51 146 147 44 68 122 72 160 104 158 64 255 133 106 Ss 51 49 114 37 97 60 52 42 as 197 174 33 228 202 206 93 30 211 166 153 212 115 159 231 214 235 271 493 88 45 56 50 61 81 126 41 60 33 118 137 41 56 110 54 145 96 143 55 197 136 38 47 42 46 97 30 79 53 42 33 79 130 34 42 138 88 174 82 44 205 117 102 193 39 135 197 133 229 216 296 26 30 30 37 49 43 52 24 24 28 96 124 35 54 95 29 134 89 130 49 151 104 74 34 29 34 57 45 55 34 22 15 45 75 33 22 41 43 106 62 15 133 103 36 1U4 K6 126 179 175 208 205 282 a a 6 16 11 6 7 15 5 5 19 5 0 5 3 2 5 1 3 4 16 43 18 5 6 1 15 6 10 3 7 2 7 38 31 39 38 112 32 10 32 6 48 48 16 26 24 34 22 3 50 71 33 35 11 13 0 20 37 21 22 7 2 0 0 0 1 15 0 0 0 2 35 5 0 5 3 1 1 0 5 2 1 1 2 26 8 1 0 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 2 0 1 3 0 4 1 1 6 7 5 3 7 a 2 10 6 11 3 7 3 1 0 1 1 1 1 2 1 2 1 0 3 2 1 2 0 0 2 3 1 1 3 2 0 0 0 4 3 5 126 207 143 1K6 142 196 132 1" 178 124 236 75 75 7 4 9 221 11 1 1 12 297 594 229 309 93 188 4U 63 167 136 154 97 3S4 1472 1227 630 172 235 43 34 37 58 11 a 17 Total 33104 7008 5363 4101 1058 326 256 9617 Source: General Depazunent of Lnd Mmganent, 199l 19 11 5 7 98 108 Annex 1 Table 5 (p. 2 )j Page 9 of 48 LAND USE AND LAND COVER 1991 (IN THOUSAND HA) PROVINCE Planted Forest Nat"lForest Total Unused Flat Unused Lau Upnd Unused Land OtherLd 5 17 0 17 0 0 0 78 108 381 292 326 511 251 1333 970 330 439 93 170 125 3 17 12 113 6 6 6 13 394 716 205 235 259 212 490 279 264 235 212 150 252 313 473 167 36 416 33 10 S0 104 13 12 29 1 14 2 19 54 174 79 1 1 0 0 0 23 9 0 S 11 3 6 1 15 2 0 2 6 5 6 14 17 24 11 4 28 95 16 24 7 14 7 41 7 8 0 22 21 64 10 17 104 18 12 29 1 14 2 19 44 166 79 330 291 326 511 251 1360 961 330 434 31 167 119 2 2 10 113 4 0 2 7 330 699 131 224 254 134 395 263 240 273 199 143 211 311 470 167 64 394 19 0 33 0 0 0 0 0 0 0 0 10 a 0 65 55 260 79 128 91 78 95 103 164 93 115 38 62 72 55 78 28 76 49 170 140 66 196 56 52 111 156 30 42 107 54 105 270 100 137 101 52 71 72 29 61 39 52 69 33 44 62 73 46 82 a 3915 12062 1032 11030 4600 HeGiang TuyenQuang CaoBang Lang Son Bc Thal LeiChau Son La Yen Bai Lao Cai Guang Nibh Vlnh Pbu Ha BaC Ha Noi HaiPhong Ha Tay Hoa Blab Ha Hung Thai Binh NanHa Ninh Binh ThanhHoa Nghe An Ha Tlnh GuangBinh Qung Trl Thua Thlen-Hue Qang Non Da-Nang Quang Ng[ Binh Dinh Phu Yen Khan Hoa NhinlThumn Blnh Thuan Gba Lal-Kon Tum Dac Lac Lam Dong Dong Nal Son Be Toy Nlnh Ho Chi Minh VungTsu-BaRix Long An Tlen Glang Ben Tre Dong Thap Vinh Long Tra Vinh Cm Tho Soc Trang An Gang Kien Glang Minh hal 15 22 7 31 7 S 12 27 7 63 16 16 7 1 7 13 11 1 1 2 55 27 29 28 16 6 25 10 25 2 1 0 1 6 14 9 32 2 2 13 17 48 10 3 0 0 2 11 5 7 20 0 192 121 179 112 190 127 137 150 117 224 S3 58 0 3 2 208 0 0 0 10 242 567 200 281 78 181 459 53 142 134 154 97 353 1467 1213 621 140 2U3 41 16 19 10 Total 702 1 Source: General Deparbment of Land Management 1991 -10- Annex 1 Table 6 (p.1) Page 10 of 48 LAND USE AND LAND COVER 1993 (In Thousand Ha) Province Total Area Ha Giang Tuyen Qug CaoBang Lang Son Bac Tha LaiChan Son LA Yen Ba LAoCai Guang Ninh Vinh Phu Ha Bac Ha Noi Ha Phong Ha Tay Ho Binh Hal Hung Thd Binh Nan Ha Ninh Bbih ThanhHos Nghe An Ha Tinh G'eg Binh Quang TH Thus Tbien-Hue Qng Nam Ds-Nag Q(ungNoa Binh Dinh PhuYen Khan Hoa Ninh Thumn Binh Thuan GiaLal Kon Tmn Doc LAc Lan Dong Doug Nd Son Be Tay Ninh Ho Chi Mitb Vung Tau- B Ris Long An Tien Gang Ben Tre DongThap Vinh Long Tra Vinh CanTho Soc Trang AnGiang Kien Glag Minhhda 783 S8D 344 319 650 1713 1421 631 805 594 483 462 92 IS0 215 461 255 151 249 139 1117 1637 605 798 459 501 1198 S1 607 528 525 343 79g 1621 93 1980 1017 S86 952 402 209 197 434 234 225 327 149 237 296 319 342 624 769 33098 Toetl Annual Agriculture Land Paddy Rice Perennia Agrculture Pasture Water Bodies for Irr4Letion 130 71 73 84 75 109 174 73 31 57 140 147 44 63 174 72 1S3 104 153 64 243 179 105 59 60 47 113 36 98 60 52 35 89 132 108 10 103 258 287 203 92 91 237 169 153 212 117 159 244 241 242 287 536 88 38 56 49 61 84 124 40 54 33 114 136 41 56 109 54 143 96 143 55 192 132 37 48 50 43 96 79 31 53 42 31 79 113 34 91 54 150 37 174 s0 41 231 119 102 193 94 135 216 219 237 243 316 27 26 29 37 49 43 51 24 26 28 94 123 35 54 95 29 133 39 130 49 148 103 74 33 31 32 57 41 54 34 22 15 45 64 23 38 30 46 61 106 61 19 212 104 86 184 91 126 202 175 221 236 305 8 10 6 16 11 6 8 11 4 5 19 5 0 5 6 6 6 1 4 4 16 42 17 5 7 2 16 6 12 4 8 1 8 40 60 80 47 107 199 34 10 45 6 49 48 16 24 24 28 22 2 35 85 33 21 11 13 0 19 37 25 23 7 2 0 0 0 1 10 0 0 0 2 29 2 0 5 2 1 1 0 4 2 1 1 2 21 12 a 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 2 0 1 3 0 4 1 1 12 6 5 3 6 8 1 9 6 11 3 7 3 1 0 0 1 1 1 2 1 2 1 0 6 0 2 1 1 0 0 2 4 1 1 3 2 0 0 0 2 8 135 7393 5520 4250 1247 306 270 Agricultre Land Source: General Departent ofLAnd Mangement, 1991. - 11 - Annex 1 Table 6 (p.2) Page 11 of 48 LAND USE AND LAND COVER 1993 (In Thousand Ha) Province Total Forest Planned Forest Natural Forest Total Unused Land Flat Unused Land Upland Unuted Land Other Land Ha Glang Tuyen Quang Cao Bang Lang Son Bac Thal Lai Chau Son La Yen Bal Lao Cai GuangNinh Vinh Phu Ha Bac Ha Noi HaiPhong Ha Toy Hoa Blnh HaiHung ThalBinh Nam Ha Ninh Binh Thanh Hoa Nghe An Ha Tlnh Guang Blnh Quang Tri Thua Thien-Hue Qang Nan Ds-Nan Quang Ngal Binh Dinh Phu Yen Khan Hos Ninh Thuan Binh Thuan Gin Ld Kon Tum Dac Lac Lam Dong Dong Nai Son Be Tay Nlnh Ho Chi Mlnh Vung Tau- Ba Ra Long An Tlen Glang Ben Tre Dong Thap Vinh Long Tra Vlnh Can Tho SocTrang An Glang Kien Gang Minh hal 212 178 91 151 135 174 152 159 162 153 151 140 7 5 10 148 I1 2 4 14 418 584 187 412 98 170 159 139 181 164 158 181 435 791 671 1268 564 151 250 43 24 59 48 11 3 15 33 2 39 7 6 13 36 10 27 38 29 7 1 8 35 9 2 4 3 66 29 24 24 17 15 16 20 31 6 2 1 1 8 3 15 11 30 10 2 17 14 48 11 3 197 145 89 112 126 168 139 123 152 126 113 111 6 0 0 0 21 9 0 0 13 3 6 1 9 3 0 2 4 14 5 15 17 21 12 22 10 22 15 23 3 15 27 91 368 267 356 504 314 1318 1010 360 412 237 95 53 2 2 7 149 4 2 3 3 9 77 23 2 3 1 9 24 16 0 2 0 55 7 368 273 356 504 314 1339 1019 360 412 250 98 59 3 11 10 149 6 4 16 12 282 738 253 130 274 209 521 244 159 230 196 49 220 540 172 419 262 78 174 32 19 14 aS IS 16 47 1 32 3 23 28 180 124 63 10 9 85 15 16 47 1 32 3 23 28 163 124 17 0 73 58 324 80 128 91 76 34 IS0 134 94 116 38 66 71 92 80 41 71 49 174 136 60 197 27 75 105 49 169 74 119 78 55 108 42 113 38 99 241 70 74 33 64 39 53 68 31 44 46 52 63 30 36 Total 9345 803 8844 11382 1075 10194 4729 4 2 113 2 0 11 352 555 163 388 81 155 443 119 150 158 156 180 434 785 668 1253 553 121 240 41 7 45 0 Source: General Departnent of Land Managemest, 1991. 10 29 27 2 7 267 721 232 118 252 199 499 220 136 222 181 22 29 540 172 409 233 51 174 19 9 5 0 0 0 0 0 0 0 0 - 12- Annex 1 Table 7 Page 12 of 48 LAND UNDERTHE MINISTRY OF FORESTRY1991 (INTHOUSAND HA) PROVINCE Area of Land Land ith Forest Land w/o Forest Production Forest Protection Forest Special Forest Natural Production Foretl Planted Production Forest Ha Tuven CaoBang LangSon BacThai Lai Chou Son La Hoang Lleng Son Guang Ninh Vinh Phu Ha Bac Ha.Nol HadPhong Ha Son Binh Hal Hug Thai Binh Ha Nan Ninh Thanh Ho. N*gheTlnh Guang Bih Quang Ti Thua Thkn-Hue Qang Nwn, De-Nang QungNgd N, Binh Dinh Phu Yen Khan Hoe Thuan Hal Gin Lad-Kon Turn Dac Lac Lam Dong Dong Nai Son Be Tay Nblh Ho Chi Minh Vung Tau- RiaRs11 Long An TienGiang Ben Tre DongThap Cuu Long Hau Glang An Giang Kien Giang NIlnh hal 1004 564 634 404 1509 963 1062 39S 179 152 23 16 309 13 5 28 649 1472 497 308 351 m8 397 413 216 300 774 1953 1384 701 250 454 102 36 350 183 142 196 135 133 223 193 71 75 9 4 151 S 1 13 297 764 309 9° 137 484 117 167 74 219 564 1496 1204 630 217 284 46 20 16 14 12 21 24 22 61 125 192 5 11 3 12 4 7 10 57 1I1 654 331 492 203 1374 325 834 202 108 77 14 12 158 S 4 15 352 708 IS 209 164 404 230 246 142 81 210 457 180 71 33 170 56 16 3 11 3 4 9 20 IS Sl 6S 74 147 103 37 122 52 62 119 148 31 64 6.2 0 62 4.7 0 0.6 192 496 201 55 92 287 77 131 70 174 421 1070 923 411 170 227 24 17 0 4.7 35 7.8 &I 4.3 3.6 10.1 25.5 1O05 1S5 65 49 68 55 61 104 31 27 8 1.7 2.8 76 0 1.4 1.7 32 247 102 42 69 173 40 30 1.7 34 126 302 179 131 7.7 22 13 0.3 1.3 0 2.2 0.1 0 0 3A 0 7.4 4 18 46 7 7 23 14 5 15 13 3 1.3 1.2 13 0.3 0 10.5 23 21 6 2 27 24 0.2 6.5 1.7 12 17 125 102 78 40 36 10 2.7 6.2 0 0 0.4 3.7 0 0 0.1 24.6 6.3 111 97 56 113 47 54 90 106 17 48 -1.8 -1 53 2.7 -1 -I.J 137 454 173 35 76 262 56 106 68 168 419 1059 903 402 113 225 22 -2 -1 -0.3 0.5 0.3 -3.9 0.3 -0.4 1.1 23.5 108.5 36 6 31 9 5 8 29 42 14 16 8 1 9 2 1 2 55 42 28 20 16 25 21 25 2 6 2 11 20 9 52 2 2 19 1 5 S 7 12 4 4 9 2 0 Totals I903 9312 9591 6227.6 2357.2 757.7 5599.6 628 Source: Warfvinge (1992), An Introductory Gulde to Forestry In Viet Nun, Foretry Notes: Negative numbers appear because thisI Production mdnu planted Sector Ravew. Tropcal Forest.) Action Plan, FAO, Rome - 13 - Atnel 1 Table 8 Page 13 of 49 Land Allocated by the Ministry of Forestry 1991 (in thousand ha) Provlce Ha Tuyen Cao Bang Lang Son Bac Thai LaiChau Son La Hloang Lieng Son Gusng Ninh Vinh Phu la Bac Ha Noi Hai Phong Ha Son Binh Hai Hung Thal Binh Ha Nam Ninh Thanh lion Nghe Tnh Guang Binh QuangTri Thua Thien-Hue Qang Nam Da-Nan QuangNgai Blnh Dinh Phu Yen Van lloa Thuan llal Gia Lai-Kon Tum Doc Lac Lam Dong Dong Nai Son Be Tay Nlnh lilo Chl Minh Vung Tau- Ba Ria Long An Tien Glang Ben Tre Dong Thap Cuu Long IlauCGiang An Giang VIenGlang Minh hai Totals Aflocated Land Allocated Land Allocated Land AvailableLnd as of 191 with Forest w/o Forest w/o Forest 261 247 207 235 204 291 155 123 69 74 5 2 106 I 0 I1 313 343 131 67 66 179 169 179 141 153 236 36 48 15 70 102 0 15 0 0 13 0 0 2 0 0 74 44 4392 78 101 83 44 9 31 38 54 29 33 0 2 32 0 0 2 135 157 31 23 44 51 15 14 86 99 89 34 44 4 58 67 0 6 0 0 0 0 1 0 0 0 8 21 151 193 146 124 191 195 260 117 69 40 36 5 0 74 1 0 9 178 186 100 44 22 128 154 165 55 64 147 2 4 11 12 35 0 9 0 0 18 0 -1 2 0 0 66 23 2874 Source: Warfvinge 1992. Notes: Negative numbers appear because this Is Production minus Planted. 471 235 368 17 1179 565 717 133 68 41 9 12 S4 7 4 6 174 522 88 165 142 276 126 S1 87 17 63 455 176 60 21 135 56 7 3 11 -is 4 10 18 15 51 2 51 6717 -14Page NIAPP Estimate of Unused Land 1993 (in thousand ha) Province Ha Giang Tuyen Quang Cao Bang Lang Son Bac Thai Lai Chau Son La Yen Bal Leo Cii Guang Nnh Vinh Phu HaaBac Ha Noi HaiPhong Ha Tay Hoa Binh HalIHung Thai Binh Nam Ha Ninh Binh Thanh lloa Nghe An lla Tinh Quang Binh Quang Tri Thua Thien-Iluc Qang Nam Ds-Nan Quang Ngal Binh Dinh Phu Yen Khan Iloa Ninh Thuan Binh Thuan Gin Lai Kon Tum Dac Lac Lam Dong Dong Nal Son Be Tay Ninh lio Chi Minh Vung Tau- Ba Ra Long An Tien Glang BenTre Dong Thap Vinh Long Tra Vinh CanTho SocTrang AnGlang Kien Gang Minh had Totals Unuwd Land Unused Land with Potentbi with Potential for Agric. Dev. for Forestry Dev. Total Area Unused Land 783 580 845 819 650 1714 1421 663 750 594 457 462 100 IS0 217 470 255 153 242 139 1117 1645 605 794 459 501 1199 585 608 518 463 353 789 1200 1300 1980 1017 759 955 402 203 205 438 234 225 328 149 236 302 314 342 624 767 392 274 431 496 235 1346 1002 431 5S3 206 119 112 10 20 22 143 22 24 39 26 405 792 173 268 290 201 593 251 272 333 217 153 380 604 432 411 250 207 3S6 123 4 16 149 32 17 47 7 11 27 29 18 196 273 62 102 24 76 40 86 75 88 103 11 49 15 0 2 1 14 1 6 7 5 58 81 53 37 51 31 27 4 19 21 13 29 73 323 85 228 72 96 147 66 1 2 77 6 10 39 4 7 15 11 7 89 164 263 149 231 388 178 1202 856 317 406 185 66 88 6 6 12 120 14 15 16 5 276 633 58 32 185 164 553 236 223 215 192 122 263 243 309 180 145 101 209 57 1 14 72 25 7 6 3 4 6 11 8 95 103 13440 2713 9324 33080 Source: National Institute of Agricultural Planning and Projectons 1993. Other Unused Land 67 23 176 32 17 58 71 26 44 10 4 9 4 12 9 9 7 3 16 16 71 78 62 149 54 6 13 11 30 97 12 2 44 38 38 3 33 10 0 0 2 0 0 1 0 2 0 0 6 7 3 12 6 1403 Annex 1 Ta.ble 9 14 of 48 - 15 - Ahnex 1 Table 10 Page 15 of 4B Fuelwood Stock (in thousand steres) Province 1986 1987 1988 1989 1990 1991 Ha Tuyen 1339 1261 1189 1197 1191 1546 CaoBang LangSon BacThai Lai Chau SonLa HoangLiengSon GuangNinh Vinh Phu 2039 1496 434 531 1016 1064 940 618 2918 1721 523 1261 1248 1507 902 450 2166 1838 572 1189 1098 1277 715 700 2299 1541 771 1197 1183 1395 847 960 2054 1376 674 1191 1102 1649 864 990 2173 1585 672 1192 1128 1440 809 883 Ha Bac 650 727 652 573 628 618 137 1219 1187 1184 1125 1165 3454 2570 1407 3071 2320 980 3128 2031 976 2938 3129 3017 3683 3028 2948 296 206 376 1698 566 832 1819 703 337 700 277 201 247 1449 556 868 1554 705 337 721 Ha Noi Hai Phong HaSonfBinh Hal Hung Thai Binh Ha Nam Ninh Thanh Hoa NgheTinh Binh Tri Thien GuangBinh QuangTri Tbus Thien-Hlue QangNamDa-Na Thuanlai Gia Lai-Kon Tum DacLac Lam Dong DongNai SonBe 1243 680 1076 598 581 407 125 1112 417 1076 876 608 496 659 915 577 990 1318 669 497 741 257 197 364 1733 524 783 1525 743 176 722 Tay Ninh 541 364 479 181 293 318 Ho Chi Mlinh LongAn Minh hai Northern Mlountai RedRiver Delta North CentralCo SouthCentral Cos SouthernHighlan North EastMekon MekongDelta 89 48 74 51 50 58 9477 3246 7437 2938 2255 1162 1880 11791 3842 6374 2829 2560 1567 2058 10744 2836 6137 2772 2977 1791 2261 11389 2391 6902 3284 3051 1130 2687 11091 2436 7576 3323 3354 1381 2898 11428 2210 6700 3126 3127 1434 2615 Totals 28395 31021 29518 30833 32059 30640 Source:GovernmentStatisticsOffice, 1992. Notes:Firewodis in thousandsteersandwoodcuttingis in thousandcubicmeters. -16Annox 1 Table tl Page 16 of 48 Wood Cutting Production (in thousand m3) 1991 Province 1986 1987 1988 1989 1990 Ha Tuyen CaoBang LAng Son BacThai LaiChau Son La 200 32 82 62 115 63 228 89 56 60 142 104 162 64 58 87 120 68 149 58 60 91 117 94 175 55 S0 100 115 91 162 59 56 92 117 84 Hoang Lieng Son 192 181 194 143 136 158 GuangNinh 97 94 81 66 69 Vinh Phu 103 70 72 90 81 Ha Bac Ha Noi Hai Phong 91 42 30 105 40 29 101 38 28 61 82 73 42 25 72 43 28 lia Son Binh 85 87 87 79 75 HaiHung 60 53 49 52 65 82 41 27 80 55 Thai Binh Ha Nam Ninh 56 93 30 41 34 25 68 32 71 30 74 ThenhHoe Nghe Tinh 128 131 125 134 101 164 104 294 107 214 Binh Tri Thien Guang Binh Quang Tri Thua Thien-Hue Qang Nam Ds-No 96 106 49 43 18 56 73 37 16 39 128 Thuan lisi 24 31 31 53 70 17 39 107 52 Gia Lai-Kon Tum 94 137 150 176 161 162 DacLac Lam Dong DongNai SonBe 212 120 112 148 .259 131 95 IS0 191 154 87 142 l18 95 77 126 368 187 72 108 247 145 79 125 LongAn Nlinh hai 25 45 243 78 54 82 154 127 145 113 117 107 Northern Mountai 947 1024 904 854 877 878 Red River Delta 545 North Central Co South Central Cox Southern llighlan North East Mekon 489 194 658 357 465 501 496 S00 - 424 397 384 505 423 459 195 745 310 200 695 312 237 648 229 298 716 213 245 704 251 MlekongDelta 203 470 277 474 462 403 Totals 3393 3709 3383 3262 3455 3363 84 115 182 103 70 39 122 Tay Ninh lle Chi Nlinh Source: Government Statistics Office, 1992. Notes: Firewod Is in thousand steers and wood cutting is in thousand eubic meters - 17 Annex 1 Table 12 Page 17 of 48 Vietnam: 1992 Estimated Share of Cooking Services (incl. Boiling Pig Food) Provided by Each Fuel Region Crop Fuelwood Charcoal Coal Kerosene Electricity 48.50% 48.50% 42.00% 60.20% 60.20% 60.20% 22.80% 22.80% 49.10% 49.10% 20.00% 39.80% 39.80% 39.80% 72.70% 72.70% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3.50% 3.50% 2.40% 2.40% 37.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.00% 0.00% 0.00% 0.00% 1.00% 1.00% 17.70% 17.70% 1.90% 17.70% 17.70% 17.70% 0.00% 0.00% 51.00% 51.00% 27.00% 51.00% 51.00% 57.00% 57.00% 57.00% 2.10% 2.10% 0.00% 13.50% 13.50% 13.50% 24.70% 24.70% 25.00% 25.00% 54.10% 13.60% 13.60% 13.60% 0.00% 0.00% 4.20% 4.20% 8.70% 4.20% 4.20% 4.20% 17.10% 17.10% 0.00% 0.00% 8.20% 0.00% 0.00% 0.00% 1.20% 1.20% Residue Rural NorthernHighlands North Midlands Red River Delta North Central SouthernHighlands South Central N.E. of Mekong Delta Mekong Delta Urban Northern Highlands North Midlands Red River Delta North Central SouthernHighlands South Central N.E. of Mekong Delta Mekong Delta Source: 1993UNDP/ESMAPStudy - 18 Mnex 1 Table 13 Page 18 of 48 Vietnam: 1992 Estimated Quantity of Residential Fuel Consumption for Cooking and Boiling Pig Food Region Crop Residue ('000 tons) Fuelwood Charcoal Coal Kerosene Electricity ('000 tons) ('000 tons) ('000 tons) ('000 m3) (GWh) NorthernHighlands North Midlands Red River Delta North Central SouthernHighlands South Central N.E. of Mekong Delta Mekong Delta 6829 1972 2522 6875 2973 4524 1364 3991 4118 1189 1140 2707 1171 1781 2591 7579 0 0 0 0 0 0 45 132 108 31 730 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 48 0 0 0 26 75 Rural Totals 31050 22276 177 869 0 149 Urban NorthernHighlands North Midlands RedRiverDelta North Central SouthernHighlands South Central N.E. of Mekong Delta Mekong Delta 193 54 37 147 96 255 0 0 332 97 313 253 165 438 1142 710 5 1 0 24 16 42 180 112 87 24 336 36 24 63 0 0 5 1 17 4 2 6 59 37 0 0 102 0 0 0 26 16 Urban Totals 782 3450 380 570 131 114 Vietnam Total 31832 25726 557 1439 131 263 Vietnam ('000 tons of Oil Equivalent) 11934 9526 387 767 107 24 Rural Source: 1993UNDP/ESMAPStudy - 19 - Annex I Table 14 Page 19 of 48 Population and Other Variables 1979 Ha Tuyen CaoBang LangSon BacThai Lai Chau SonLa Hoang Lieng Son GuangNinh Vinh Phu Ha Bac Ha Noi Hai Phong Ha SonBinh Hai Hung Thai Binh Ha NamNinh Thanh Hoa NgheTinh Binh Tri Thien QangNamDa-Na QuangBinh Phu Khan Thuanimi Gia Lai-Kon Tum DacLac Lam Dong DongNai SonBe Tay Ninh Ho Chi Minh Population Growth Rate Total Population Total Population Province -- 1989 774 1026 471 478 316 771 809 482 661 1376 1562 2456 1150 1426 1959 1382 2595 2348 2870 1759 1458 1985 1177 917 585 482 388 3293 651 676 1292 565 611 438 1032 1030 682 813 1807 2064 3056 1447 1839 2445 1632 3157 2993 3583 1997 1738 2287 1460 1170 876 976 639 3924 938 793 2007 (population 1979-89 3 . 1.9 2.6 2.6 3.5 3.7 3.1 2.2 2.9 3 2.3 2.4 2.7 2.4 1.8 2.1 2.6 2.4 1.3 1.9 1.6 2.3 2.6 4.3 7.7 5.4 1.9 3.9 1.7 4.7 and area figures in thousands) Rural Population 939 Rural Households 1989 Net Mligration 1939 Non-h inh Percent of Population 1992 930 160 -14 67 509 530 377 861 833 585 454 1583 1937 1960 989 1630 2264 1526 2817 2760 3273 1638 1211 1965 1036 906 695 793 426 764 U87 700 IS26 91 94 56 151 161 87 94 339 423 431 233 346 572 396 699 609 705 343 271 429 204 173 130 156 91 149 181 137 285 -28 -27 *5 -7 .5 -1 3 1 5 -34 -2 20 -1 -30 -67 -22 -44 -28 -16 -40 3 -I 27 116 78 62 41 9 91 96 85 81 55 32 82 11 9 7 1 0.2 25 0.2 0.1 0.5 I5 8 13 4 13 9 12 51 30 24 11 9 2 8 135 4.1 11 2 16 LongAn Tien Giang BenTre DongThap Cuu Long Hau Giang An Giang KienGiang Mlinhhai 949 1173 1475 1258 1034 1497 2226 986 1213 1120 1337 1774 1483 1214 1809 2681 1198 2555 1.8 1.4 2 1.7 1.7 2 2 2.1 2.6 930 1281 1330 1296 1120 1632 2194 941 1226 180 217 236 253 226 312 390 169 218 -8 8 -1 -11 -12 0 -9 10 1 0.3 0.4 6 0.6 0.6 16 16 16 7 Totals 50452 63331 107.9 50266 10402 80 825.9 VungTau- Ba Ria Sources: tealth 92 2 Sector Report, World Bank 1992,Warvinge 1992,Gray 1992,Government Statistics OMce, 1992. - 20 - Annex 1 Table 15 Page 20 of 4- Changes in Crop Area between 1985-90 (in thousand ha) Province He Tnyen Coo8 ang LangSon aeThaI LAIChau So LA HoangLUengSon Gaag Nlnh VlushPu Ha Bac Ha Nol Hal Phong Ha SonBinh Hai Hong Thal Binb Ha NaNlnh ThumhHoz NgheTinb Bih Tri Thlen Qang NamDs-Nang Quang Bibh Phu Khan Thuan Hli GCaLai-Kon Tum DncLae Lam Dong DoagNnl SonBe Tay Ninh lio Cb IMink V.ngTau- BaR Long An Tien Gang BenTre DongThop Cuu Long HsuG Gng An Gang KIen Gibng Minh hal Maize Casavz Tea Coffee Rubber Mulberry -u.1 -4u. -U54 u u u 03 -1 4.1 0.2 1.6 0.3 1 7.5 4.9 11 0.4 2.4 10.1 5.7 6 5 2.2 -0.6 -1 4.1 4.4 -1.3 -1.9 -1.2 -4.5 -6.9 -0.2 -0.4 -1 0 0.09 0.2 -0.3 -0.2 0.5 0 -O0 0 0.2 -0.2 1.1 -0.7 -08 O0 412 -0.2 -4 -2 0 0 -4.1 0 0 0 -6.7 -5.9 4.3 -54.4 2.7 -12.4 -12.2 -7.6 -7.7 -2.3 48S -5.6 -116 -1.1 0 0 0 0 0 0 0 0 0 0 0 -0.06 0.06 0 -0.11 -1.14 0 -1.77 0.58 0 0 -0.03 0 0 0 03S 0.24 0 0 0 0 0 03S 0 336 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -696 0 0 0 0 160 S858 14922 9801 IS338 195 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -39 0 0 77 0 23 1915 257 0 9369 5679 140 -14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 54 -558 -99 0 -251 -36 297 428 -13 14 -11 867 48 -581 70 0 S 4509 202 0 0 0 0 0 O 0 0 0 0 -165 0 0 -156.5 1.29 45578 17407 4514 37.79 - Totals Sources:HealthSectorReport,World Benk 1992,Warvinge1992,Gray 1"2, GovernmentStatisticsOffe. I992. - 21 - Annex 1 Table 16 Page 21 of 48 Shifting Cultivation Area 1990, By Province (in 1000 ha) PROVINCE Ha Tuyen Cao Bang Lang Son Bac Thai Lai Chau Son La Hoang Lieng Son Guang Ninh Vinh Phu Ha Son Binh Thanh Hoa Nghe Tinh Quang Binh Quang Tri Thuan Thien Hue Qang Nam Da-Nang Quang Ngai Binh Dinh Phu Yen Khanh Hoa Thuan Hai Gia Lai-Kon Tum Dac Lac Lam Dong Son Be Totals Shifting 10.4 5.4 1.3 0.7 6.2 3.2 10.6 4.4 0.8 1.9 4.4 2.2 1.1 0.9 1.3 3.2 1.5 1.6 1.8 2 5 52.4 34.8 7.7 12.7 177.5 Source: Forest Inventory and Planning Institute, 1990 - 22 Summaryof Mineral Resourcesin Vietnamr Minerals and Rocks Coal Oil Uranium Black metals Bauxite Chrome Annex 1 Page 22 of 48 EstimatedReserve (tons) Annualoutput (tons) Remarks 3,500 M Peaked 6.9M in 1988, 3,600M tons in Quang Ninh, 80M tons in Thai currently3M Nguyen. Total design capacity 14.5M tons/year. Nearly 10,OOOM 2.7M (1990) In northern lowlands, southern deltas and continentalshelves N.D. none In CaoBang, Lai Chau, Quang Nam Proven 3,OOOM limited 12M limited Good quality (ore content 40-439%) Only in Thanh Hoa, cobalt and nickel exist in ore In Bac Thai, Ha Tuyen, Cao Bang, 700M tons at Thach Khe mine. Also in Quang Ngai. Iron 1,000M 0.5M Manganese 3.5M 1,000 In Cao Bank, Ha Giang, Nghe An, Khanh Hoa Titaniura 7.2M Colored and Precious Metals Antimony not significant N.D. In coastal regions limited Bauxite, laterite Bauxite, sediment Copper 1,OOOM 95M 637,000 limited limited low Chromite Gold 12M 170,000 potential 20,000 limited Molybdenum Mercury Nickel Silver Tin and wolfram N.D. N.D. 158,000 N.D. 225,000 Zinc and lead 2M none none none limited low, 1995 target: 1,000 Limited, by individuals In Tuyen Quang, Quang Ninh, Hoa Binh, Thanh Hoa, Nghe An In the south In Ha Giang, Cao Bang, Lang Son In Lao Cai, Son La, Cao Bang, 550,000 tons of good quality exist at a single mine Relatively low quality, only in Thanh Ho. In 53 areas: Cao Bang, Bac Thai, Lang Son, Quang Ninh, Bong Mieu, Thanh Hoa, Nghe An, Binh Thuan, Lam Dong, Dong Nai... In Lai Chau, Lao Cai, An Giang In Bac Thai, Ha Giang, Ha Ninh Binh In Bong Mieu In Tinh Tuc, Pia Oac, Tam Dao, Quy Hop, Lam Dong, Kontum, Nghe An, Bao Loc Bac Thai, Tuyen Quang, Cao Bang, Ha Giang, Yen Bai, Lai Chau, Nghe An Fertilizers Apatite Barite 2,000-3,OOOM 3M 600,000 limited Limestone Phosphorite Pyrite 41M low 8.7M N.D. 17,800 none Serpentinite 40M none 408M tons in Lao Cai 15 sites in Ha Bac, Bac Thai, Lai Chau, Nghe An In many regions Smal scattered reserves Small scattered reserves in Vinh Phu, Ha Tay, Tuyen Quang, Thua Thien 31M tons in Lao Cai, SM tons in Thanh Ho. -23- Minerals and Rocks Building Materials Cement clay Granite Annex 1 Table 17 (p. 2 ) Page 23 of 48 EstimatedReserve (tons) Annual output (tons) Remarks 290M very large Materials for Pottery and Chinaware 13M Dolomite N.D. limited In Hoang Thach, Co Dam, Ha Tien In Bac Thai, Ha Tay, Thanh Hoa, Binh Dinh, An Giang... rich in varieties N.D. In La Giang (8M tons), Ngoc Long (5M tons) In Vinh Phu, Lao Cai In CaoBang, Lai Chau, Phu Yen In Red River, Bac Thai, Quang Ninh, Da Lat, Dong Nai In KhanlhHoa, Quang Ninh, Quang Nam-Da Nang In coastal areas, high quality Feldspar Fluorite Kaolinite 9.5M 6.2M 196M N.D. N.D. N.D. Sand, quartz 90M N.D. Sand, silicate Precious and SemiPrecious Stones Ruby, sapphire large N.D. N.D. limited N.D. Topaz, beryls, nephrytes, zircon, jadeite, garnet, spinel, amethyst, tournaline.... Note: N.D.: No Data limited In Luc Yen, Quy Chau, Di Linb, Phan Thiet, Xuan Loc. Ruby has high quality In Thanh Hoa, Nghe An, Vinh Phu, Quang Ninh, Cao Bang, Di Linh, Phu Yen... Source: Asian DevelopmentBank, Vietnam EnvironmentSector Study, December 1992. - 24 - Annex 1 Table 18 Page VIETNAM: 1991 PESTICIDK. Quantative (Mt) '000) D-scription 24 of 48 USE Value USS Crop/ P-vte In the North and Center 1. Total of technical arade 1.121.00 - Insecticies ) - Fungicides - Other & solvant & additive 2. Insecticides Fungicides - II. On three main crops: rice, industrial crops and other. 620.90 4.96 495.17 Total of finished groduct - 10,000 3.540.40 EC.D EC Unavailable 2,694.60 706.48 -Herbicides EC 123.91 - Other EC 15.38 * Leaf eating insects, stem borer, sucking insects 0 Sheath blight, rice blast. In the South 1. Total of technical arade 2.741.10 Insecticides - Fungicides - Herbicides - Solvent and additive 1,487.77 14.00 20.24 17.92 1,201.22 Total of finished 4.356.40 - Other - 2. - product Insecticides Fungicides Herbicides Other EC WP EC EC EC WP 13,000 3,406.60 286.59 471.71 185.85 * * * * Leaf eating insects Sucking and stem borer Sheath blight, rice blast Nemathodes TOTAL Technical grade 3 ,8 6 2 . 1 0 a Finished products A/ Source: 7,896.80 Equivalent to about 13,000 Plant Protection tons in finished product Material Supply Companies 23,000 Unavailable equivalent. I and 11and Department of Plant Production and Protection in Viet Nam. Problem Agro-EcologicalZone Soils and Their Development Parent Rock Constraints by Agro-ecological Soils Technical Constraints DevelopmentOptions Zone Main Development Constrafnts Mountain Region and Midland of the North Acid schist, mica schist & Liparitic tuff with limestone outcropping Lithosols,Orthic Acrisols, Ferric AcrisoLs & Limestone based Chromic Luvisols and Calcic Cambisols Sheet erosion with resultantsurface stoniness. Soils derived from acid parent material and the degraded (leached) soils of the midlands and lowlands (176,000 ha), have low pH, CEC and organic matter and in some cases Al toxicity. Soil properties Improve with depth on degraded soils Erosion control through integrated watershed management on sloping land; deep ploughing of degraded soils; imprdved cycifng of organic matter Lack of food security; poor communicationand infrastructure; traditionof shifting cultivation; insufficienttesting of appropriate technology. Red River Delta Riverine, brackish water and marine alluvium Gleylc Acrisols, Eutric Gleysols (inct. saline phase, Eutric Fluvisols and Thiomic Fluvisols Saline soils (350,000 ha), acid sulphate soils (50-60,000ha) and waterloggedpeat soils (10,000 ha) and increasingacidity of alluvial soils Delta master plan to develop saline soils; increasedcropping intensity on alluvial soils; reduction of acidificationprocess; integrated crop/Iivestock/aquacul ture; improvedcycling of organic matter Overpopulation necessitating resettlement;lack of funding for required water control and infrastructure development. Inadequate infrastructure, market opportunities and finance for water ________________________ Northern Central Coast Uplands: Acid and mica schist with limestoneoutcrops. Lowlands: Rivermne, Uplands: Orthic Acrisols, Ferric Acrisols Lowlands: Chronic Luvisols and Sheet erosion, surface stoniness in uplands; low pH, CEC and organic matter in both Integratedwatershed management in uplands. dune stabilizationin lowlands combined with brackishwaterand mrine alluvium EutricRegasols(dune sands) uplandsoilsand coastalsands. Flash floodingin saline lowlands.Dune encroachment improvedsoil organic control. Poor upland mattercontent technology. (particularly to raise soil moisture retention) and I__fertility. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ __ _ __ ___ _ _ _ _ 3 x X o ¢ - _ 00 - Agro-ecological Zones Parent Rock Soils Technical Constraints DevelopmentOptions Main Development Constraints Southern Central Coast Uplands: Acid and mica schist with Limestone outcrops. Lowlands: Riverine, brackish water and marine alluviun Uplands: Orthic and Ferric Acrisols & Chromic Luvisols. Lowlands: Chromic Luvisols, Dystric and Eutric Gleysols, Pellic vertisols and a Eutric Regasols. Sheet erosion, surface stoniness low ph and CEC, Al toxicity in upland soils. Flash flooding in saline lowlands. Dune drift covering 320,000 ha. Low soil organic Integrated watershed managementin uplands. Dune stabilization in lowlands. Lack of finance for water control. Inadequate technical base for upland development. matter Central Highlands Hainly basalt, porphyritic and diabase parent material. Someacidic parent material Rhodic, Orthic and Acidic Ferralsols, Pellic Vertisols and Ferric and Orthic Acrisols. Includes approx. 420,000 ha of degraded soils. content. Deforestation and erosion on steeper slopes; low groundwater reserves; low fertility of some acidic soils. Low organic matter l Agro-forestry; Livestock grazing; resettlement with rainfed agriculture. Uncontrolled economic migration into region; inadequate infrastructure content. Northeast of Mekong Delta Old alluvium MekongDelta Riverine, brackish water and marine altIviun Ferric and Gleyic Acrisols and some Rhodic Ferralsols soil degradation; acidity with associated low CECand high AL; Legacy of chemical defoliation; low fertility (leaching) and soil organic matter. _ Agro-forestry and fruit) (rubber Dystric Gleysols, Saline soils (650,000 Water control. Eutric Fluvisols ha), acid sulphate (alluvial soils) and soils (1.48 mitlion their saline phases ha) and tropical peat (saline soils); soils (170,000 ha) and Dystric Histosols increasing acidity of (peat soils) and river alluvial soils. Thionic Fluvisols (acid sulphate soils) I Source: VIE/86/024 Agriculture Planning and Projection, Back-to-Office report,Dent,F.J.,RAPA,1988. VIET IAM: Proceedings of the National Workshopon Investigations of Lands with Declining and Stagnating Productivity; | Irrigation development (Dau Tieng dam). Legume cover crops. Financing of water control and conservation. Coordination with MekongSecretariat members. FAO,Bangkok, 1986 q - C")x EstimatedSupplyand Demandof RouhangeFeedsby Agro-EcologicalZone and Animal Types Livestock Roughage Requirements LivestockPopulation Agro EcologicalZone Cattle Buffalo DM) l'oOtontes 000 head Sows Fattening Pigs Cattle/I Sulffao/2 Total Ruminants Sow/3 Fattening Plgs/4 Total Pigs Total Roughage Requirements 3758.1 93.2 417 510.2 572 957.7 44.7 230.3 275 1232.7 982.5 1225.8 2208.3 46.4 276.7 324.1 2532.4 1197.2 1302.9 327.6 1630.5 38.7 179.6 218.3 1848.8 93.5 505.3 552.5 134.2 686.7 18.7 75.8 94.5 781.2 138.9 U.3 473.5 311.1 291.5 602.6 13.7 71 84.7 687.3 223.5 251.2 215.4 1521.4 335.3 527.5 862.8 32.3 152.1 184.5 3135.6 2858.6 10618.3 4703.6 289.7 1401.5 1691.3 Northern Mountain and Mkdlands 555.7 1392.6 486 2780 833.8 RedRiver Delta 257.1 272.4 297.7 2303 385.7 Central Coat of Northlands 655 583.7 241.9 1837.9 Central Coast of Southlands 868.6 16 193.5 Centrel Hlghada 368.3 83.9 North-Eastof 207.4 2924.5 4268.3 Southand MekongRivr Deta TOTAL I/ 2/ 3/ 4/ 1576.3 6003.1 10706.7 1047.3 12398 at 1.5 ton DM per year. Cattle roughag rquirtmnl estnimated lull fto rougth go requiernent estimatedat 2.1 ton DU per yner. Sow toughs ge trequkemnt conges forn 0.1 ton OM In dolet zonesto 0.2 ton DM In mountainu zones. Fattenn pig roughs go requirementrangesfront 0.1 ton OM in delta zones to00.1i ton DM In mountainouszones. OQ oq Plot 3 0-hl W cr.OS Ealimeled Supply and nemand of nofucmaij Fpods by Ago-Ecological Zone./I Pasdue Psodadlon Agro-EwobgoglZon ----------------NorCwn Ul'bouhs ondJMdIncs red flv Def Cvio*l Coest of HortsIonos Cent mlCoastd Sou"nas Centoallkjbncb Ntrvh-Easl of Saum3nas ikowinFlvwODef TOTAL. . foareo Rodudlon Aeas Frusl Ba.nLancCweh1Oop%2 P* kra ---p. -------- Parluc - Forest fwenLanc M IonsDX Pasft,e Total (M In-DI Dop - otl Oop fluglvag Total Gati AvestlJb PVo0jDJAn Slov814 (Dmlo) tEXDIonDls(aXflon lobla rtit read rq*tli wuid Okncea5 fr1)l D onL LIO (U Ion D4 7G30 190.6 151Z6 5512.0 67Z. 571.e 065.0 16536 43.6 2874.1 2M7.4 1t57.2 4531.2 42GS2 2ls 2065 Z2L0 7td.3 56.3 61.4 68.4 35.5 241.6 3456.? 2419.7 266.3 U1226 1549.5 2024.0 556.7 162.5 619.6 607.2 27.t 1417.3 2010.5 1206.3 2M1.6 2St23 1406.0 1903.0 4706 2J3 5CZ4 570.9 23.5 1179.1 2027.3 12164 23D 5 1o84U eS6/ 39.0 3306.o 14561 2494 1t7.0 13232 439.7 125 12.4 C06.9 3X4.1 2256.6 71.1 14/54 2.6 510Q 672.4 509.7 7.0 200.6 201.7 25.5 4350 105G.7 634.0 Ioc0.0 6613 318e 0.0 241.5 497.2 1909.6 0.0 96.6 149.2 06.5 344.3 10464.0 7324.6 7XG91 04r.2 5J19.0 936.8 -83.7 2199.5 650 14266 91.3 I 6.9 320.8 867211I1234 3489.2 30.7 267.0 14622.5 2JQet2 I CQII IMY2S 123976 1i PaltsuenrrdopreslllWa podrdonbksnedon esIhuabduUlratp ForoCC rI endmclle. aopb wLsownsr tdombwUla 2/ Cwam aI G6$of anvaoptaepea Urdeswaeled 3J Prostra be"Cn aop 1a muev use of aop slow. aspedalyas a fuel hInhe dere Donw. 41 No aoavenc aon fir hUsaonly ions lssizus pastue. fnodcalead quay. Theceu*lVlSh 6t feed sutfus s " -3 20 0 I- I Annex 1 Table 22 Page 29 of 48 -29- Projected Production and Demand Balance for Mleat Region Northern Mountain Category 1995 2000 ( 000 rnt! (t00Omt) Production 141.7 162.7 205.1 Domestic demand Meat exoorti 146.4 174.3 233.0 2.7 Borcer trade (7~.4) SurokmW"efidt Red River Delta 2005 1992 ( OCOmt) 3.1 (14.7) (000 m:U 255.7 311.6 4.0 5.1 (31.!n :57.9. Prooucuon 157.8 186.7 248.3 331.7 Domesuc demand Meat exoorts 129.0 6.4 153.1 6.4 203.6 6.4 270.9 6.4 si 5lusdeflct 2.4 27.2 38.3 54.4 Proucuton 97.9 112.5 142.0 179.5 Domestic demand 83.4 90.7 130.7 173.0 Bofder trade North CenitralCoast Meat exoorts Border wade South Central Coast 0.8 0.9 1.2 1.5 SlAw"elltl 13.7 12.9 10.2 5.0 Procuction 70.3 81.0 102.5 130.4 Domestic demand 50.9 5.0 60.1 5.0 79.2 5.0 104.3 5.0 14.3 15.9 1t6 Production 27.5 32.3 42.1 55.2 Domestic demand 39.4 51.9 81.0 126.4 (12.3) (19.7) (369) (712 Meat exOorts Border trade Sulua_ Central Hightands eliil <21.1 Meat exnorts Borger trade 9 S&,pl Southeast ieI Production Domestic demand Meat egoorts 54.0 67.0 96.0 141.0 135.0 162.6 221.7 302.3 5.0 5.0 5.0 5.0 Border tade S Mekong River Delta Vietnam (6OI0) ~ 9rPAd (100.6 (129) (166.2 Production 171.9 211.3 296.8 423.5 Domestic demand 113.1 133.4 175.a 231.6 5.0 (2.2) 5.0 (2.81 Meat export5 Borcertfade 5.0 (1.5) 5.0 (1.7) Surpkad Illeflt 55.3 74.6 120.2 1a8.7 Producuon 721.1 653.6 1.136.0 1.519.9 Domestlc demand Meat exports Bodrertrade 697.6 21.4 2.0 a34.1 21.4 2.3 1,125.0 21.4 10 1.520.0 21.4 (13.4) (25.2 Sia:Me~ 0.D (4.3) 3.8 Source: Draft FmnalReport, Vietnam Meat Industry Market Development Study, Lincoln International Ltd. - 30 - Annex 1 Table 24 Page 30 of 48 Officially SponsoredMigration (1,000 Persons) 1981-89 Total Migration Within Province North South Outside Province North to North North to South South to South 1990 1981-90 2253 1662 521 1141 591 14 441 136 168 151 n.a. n.a. 17 1 8 8 2421 1813 n.a. n.a. 608 15 449 144 Midlands and Mountains Within Province Outside Province (N-S) 200 194 6 15 15 215 209 6 Red River Delta Within Province Outside Province (N-N) (N-S) 356 88 268 14 254 11 6 5 367 94 273 North Central Coast Within Province Outside Province (N-SO 420 238 182 29 n.a. n.a. 449 n.a. n.a. South Central Coast Within Province Outside Province (S-S) 320 220 100 9 n.a n.a 329 n.a. n.a. Central Highlands Within Province Outside Province 164 164 3 3 167 167 Northeast of Mekong Within Province Outside Province (S-S) 343 309 34 9 n.a. n.a. 352 n.a. n.a. Mekong Delta Within Province Outside Province (S-S) 450 448 2 91 n.a. n.a. 541 n.a. n.a. Source: Center For Population and Human ResourceStudies - 31 - Annex VILLAGE PROFILE I Table 25 Page 31 of 48 VILLAGE NAME Po Nhang PROVINCE Son La DATE VISITED 31/3/93 No. PEOPLE 600 No. HOUSES 80 YEAR ESTABLISHED 1954 CROP AREA (Ha.) 60 No. MOTORCYCLES 15 REPLANTING PROGRAM ? No EXTENSION PROGRAM ? No TYPICAL HOUSE DATA ( 9 persons) AND VILLAGE (80 households) AGGREGATION: YIELD (t/Ha) --- ------ --- -----VALUE OF ON-FARM PRODUCTION: PADDY RICE 1.20 UPLAND RICE 0.75 MAIZE 2.00 GRAZING/FALLOW CATTLE CHICKEN PIGS Sub-totals: ITEM No. Ha. ---…--- --- 0.21 1.00 0.50 1.29 * DOLLAR I HOUSEHOLDBUDGET I WHOLE VILLAGE HARVEST VALUE I-------------------I---------------(Kg.) / UNIT ICONSUMEDI CASH ICONSUMEDI CASH --- ------ --- I______ I---------I--------I------I I I I 252 0.25 I 63.00 I 1 5,040 750 0.25 I 187.50 I I 15,000 1000 0.25 1 25Q.00 I I 20,000 I I l 1 30.0 I 30.00 I I 1,200 15 1.50 I 22.50 i I 1,800 4 20.0 1 80.00 1 I 4,000 I 633.00 I I 50,640 I ~ VALUE OF OFF-FARM PRODUCTION: OPIUM 0.01 0.30 FIREWOOD 60 Days 4 Bun/Day FOREST FOOD (3-6 mth) 150 day @ 5 Kg/day Sub-totals: 3 240 750 OFF FARM INCOME: OPIUM 0.01 0.20 FIREWOOD 30 Days 4 Bun/Day LABOUR CHICKEN CATTLE Sub-totals: ----------------------- ----------- e _ 2 120 6 1 5 Kg/day _---- 750 ----- ~l ~ l ~l ~ ~~~~~~I I l 1 1 I l 3,600 4,800 1 I 6,000 I 14,400 I 11,128.00 1 I 65,040 1 l l I I l l l l 120 I 0.25 1 0.1 I I TOTAL VALUE OF HOUSEHOLD PRODUCTION: OFF FARM COSTS: RICE (for 3-6 months) 150 day OIL, CLOTHES, SALT, ASPRIN OTHER (incl. savings) Sub-totals: ~ l 120 I 0.25 I I 1.5I 30 I 360.00 60.00 75.00 495.00 I I I I 240.00 I I 20,400 I I 1 I 30.00 0.00 1 9.00 I 30.00 I 309.00 I I I I 2,400 50 I 720 I 1,200 I 24,770 I l I I l l 0.25 1 I I I I I X I ----------------------- I l 187.50 1 100.00 I 21.50 I 309.00 I ---------------------- l 1 15,000 I 8,000 I 1,770 I 24,770 Priorities for Action In Major Forest Reserves of Vietnam . Name Province . I Biodiv value:. Mgmt Plan ..(Year) . Year NR 1986 Status Infrastructure Buffer JZone(hal | Tourism Potential Scaleof Urgency of Action THREATS threat Survey Priority FH High HF Medium x H High x HL M High x HE Medium HL Low HP Medium High H EF High 10,000 High HL High HLS Medium HL C Medium HP Hioh x H Low x H LF High F Low HL M High EH Medium LH High H Medium None 100,000 None 10.000 x MuongNhe Lai Chau B 1993 TrungKhanh Cao Bang B - Na Hang Tuyen Ouano B . . None PuMat NgheAn A 1993 - None 20,000 HoangLienSon YenBal/LaoCal A Pan NR 1986 None 20,000 HuuLien LangSon a 1991 NR 1986 None 5,000 BaBe Cao Bang A 1991 NP 1986 Little 2.000 High Ba Vi Ha Tay C 1991 NP 1986 Yes 4,000 Tam Dao Vinh Phu/BacThai/ a 1993 NP 1986 Yes . V Scientific V - x Tuyen Ouang Cat 8a Haiphong A 1991 NP 1986 Yes 4,000 High Cuc Phuong Ninh BinhlThanh B 1991 NP 1962 Yes * 5.000 High x Hoa/Hoa Binih Thanh Hoa C 1991 NP 1986 Little 5,000 Vu Ouang Ha Tinh A 1993 NP 1986 None 15,000 Ho Ke Go Ha Tinh A - - None 10,000 Phong Nha Ouang Binh 8 1993 NR 1986 None 5,000 High BachMa ThuaThien-Hue A 1992 NP 1986 Yes 20,000 High NgocLUnh KonTum B 1994 NR 1986 None 5.000 MomRay Kon Tum C Prov. NR 1986 None 5S000 Kon Cha Rang Kon Tum B - NR 1986 None 2,000 ulFor acronyms and source informnation,see page 2 of this table. . . Ben En Scientific - _ . x x _ . _ _ . -d.,..it oI- W | Kon Tum Kon Ka Kinh | B | NR 1986 | J 2,0001 - Uttle 5,000 . None | j | H _ Medium x H High x H High Medium x FH Low 2000 . x 7 Low Nonre 5.000 Medium V x EH Medium NP 1986 None 5,000 . V LC High 1993 NP 1986 Yes EH L High C 1991 NP 1986 None 5,000 Medium EH M High Kien Giang B Prov. NR 1986 None 5,000 . E Medium Tram Chim Dong Thap B - Yes ED Medium U Minh Kien Giang B NR 1986 Yes F Medium Minh Hal Mangroves Minh Hal B1 NR 1986 None EH L C D High Nam Ka Dac Lac A 1991 Thuong Dong Nal Lam Dong B - - None 5,000 Yok Don Dac Lac A 1992 NP 1986 Yes 5,000 Chu Yang Sinh Dac Lac A 1994 NR 1986 None Bl Dup Lam Dong A 1994 . Bien Lac Nul Ong Binh Thuan B Cat Tien Dong Nai A Con Dao Ba RiaNung Tau Phu Quoc Threats: C D E F H L M S Cutting fuel Drainage Encroachment Fishing Hunting Logging Mining Sedimentation Source: Biodiversity Action Plan, 1994. Biodiversity value: (Bio-value) A = 8 C- x High 10000 _ - V Scientific - x very Important important low value 11* a. 'N ~~~~~~~~~~ w Reviewof WetlandsSitesin Viet Nam Name Province j Type j Area (hal Location J Speclal features Raserve Survey Threat [ Bio J Recommendutions Only large montane lake in N Vietnam NP _ P A L Strengthen protection of 21°32'N.106°34'E Local fish and some wintering birds NR PH C L Maintain as nature reserve 21-35'N,105°42'E 10 spp of fish and wintering birds NR PH C M Extend to include catchment forest 21 42'-22°05'N, 104°45'-10503'E Waterfowl in winter NR PH 8 M Relforest islets and surrounding hills 300 21°36'N.104054'E Freshwater vegetation and waterfowl RH 8 H Survey to assess protection needs 72.800 20-48'-21 45N. 104005'-105015'E Long deep lake in valley. PC 8 H Survey to assess protection needs 400 21 31'N.10505'E Fish, waterfowl and freshwatervegetion RH B H Should be given local protection FL 2 22025'N,105"35'E Several small ponds with endemic newt D C L Apply better protection to ponds Vinh Phu FS 250 21018'N.105038'E Swamp vegetion R C H Give local protection Suol Hal Lake Ha Tay R 700 21 010'N,105025'E Reservoir lotus beds D H C H Survey for assessment Dong Mo Lake Ha Tay R 700 21003'N.105050'E Reservoir with birds 0 H C H Survey for assessment West Lake Hanoi FL 413 21803'N.105050'E Reservoir fish and I migrant waterfowl RDH P A L Clean up pollution, ban reclaimation Ouang Ha Saids Ouang Ninh S 4.000 21 20'N.107052'E Coastal sandllats D H C M Survey to assess needs 0 450 22 45'N.105037'E __________________ __________ Ba Be Laka Cao Bang FL Cam Son Reservolr Ha Bac R 2,620 Nul Coc Reservoir Thai Nguyen R 2.580 Thac Ba Reservolr Yen Bai R 23.400 Chu Lake Vinh Phu FL Hoa Blnh Reservoir Hoa Binh, Son La R Chinh Cong Vinh Phu FL Tam Dao Ponds Vinh Phu Vac Swanp fish NP N.R. w a/For acronymsandsourceinformation,seepage5of thistable. 10 0 . Name Cai Rau Province Type Location Area (hal Haiphong/Cat Ba Recommendations M 500 0 21 10'N,107°25'E Best example of northen mangroves C H 8 M Protect as example of provincial reserve Ouang Ninh R 600 0 21 0 05'N,106 50'E 8rackish reservoir H C H Survey 6 ban hunting Mangroves and mudllats HC C L Try to protect example Haiphong M 0 20050'N,106 52'E 2,300 Small lake and fauna NP D C L Protect fragile site Mangrove, mudliats, wintering birds PR HC A L Protect fragile site _ Coastal mud and sand H A L Combine into RAMSAR Swamp vegetation in limestone area FD B H Should be given local protection 0 19059'N,105 28'E Freshwater swamp veetation R C H Survey to assess protiection needs 0 19 42'N,105033'E Orioinal lake enlarged as reservoir FP a M Control destructive fshingmethods 19030'N,105041'E Reservoir wilt fish and birds D C H Survey to assess protection needs 2.500 18°13'N.105°55'E Fish and waterfowl Duckl (White-winged H B L Include reservoir in nature reserve 8,000 1635'N,10730E Large coastal lagoon llish and migrant birds H F B H Manaoe with Dam Cau Largest coastal lagoon fish and'migrant birds H F B H Protect part as reserve and apply no-hunting M Stricter protection of coastline needed 20 0 45'N,107 2 0 00'E Cat Ba Lake Haiphong FL Xuan Thuy Delta Ha Nam Ninh SM Cue Day Flats Ha Nam Ninh S 1,000 0 19055'N,106 05'E Hoe Lu Swamp Ninh Binh FS 1,000 20018'N.105 8a Thuang Swamp Thanh Hoa FS 200 Song Muc Lake IBanEn) Thanh Hoa R 700 Yen My Reservoir Thanh Hoa R 300 Ke Go Reservoir Nghe An R Phe Tem Giang Lagoon Thua Thien-Hue L 0 20010'N,106 35'E 4,000 0 55'E I 12,000 Thua Thien-Hue L Son Tra Ouang NamDanang Ro 200 Cu Lao Chem ON-Danang Ro 50 Phu Nlnh Lake ON-Danang R Dam Cau Hal Survey RIo Threat Ouang Ninh Mangroves Yen Lap Lake Reserve Special features 16°20'N,107 0 50'E Lagoon 1.000 _ NP 16°05'N,106°15'E Reserve has marine sector with rocky coast NR DH C 0 15S57'N,106 30'E Rocky shoreline NR H C 15026'N,108°30'E neservoir and waterfowl H C IL M Hai Ban hunting Assess protection _needs _ IP V.o w Name Type Province Dam Tra 0 Binh Dinh L Vinh Nuoc Ngol Binh Dinh L 2,000 Bien Lake Kon Tum Gia Lai _____ ______________ _______ Nul Mot Reservoir Binh Dinh 2,000 Binh Dinh 1,000 R 600 VL 1,500 R Phu Yen 5,000 PhiuYen 2,000 L C HF C 0 140 03'N.108 01'E Volcanic lake.3 endemic spp of F A Assess protection M ~~~~~~~~~~~~~~~~~needs Should be nature M fish reserve F Smaller Reservoir _ _ bird ____________ FH __ _ ________ __________________ _________ 13035'N.109°15'E _ _ _ _ _ _ _ _ _ _ _ M B H Survey to assessim- portannccerta Survey to assess _ __ F Brackish water fowl lagoon 13°34'N,109015'E C _________ ________ Brackish water tidal lagoon fish, 13052'N,109°15'E _ ___ __ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _ _ __ __ __ Survey to assessImM ____ _ portance __________ f ____________ 0 13°45'N.10 59'E ______ 3,000 L HF Reservoir In Mekong drainage _______ ________ _ Xuan Del Lagoon Recommendations Assess protection __________ _ _ _ _ _ _ _ _ _ ______________________ ____________ ______ Cu Mong Lagoon Survey M C 13059'N,107'35'E _______ _____ L Brackish lagoon, birds 14°10'N,109°10'E ____________ ___________________ Ouy Nhon Lagoon HF Brackish lagoon, birds 14°20'N.109007'E Blo needs __________________ Ye Li Reservoir Threat Resarve Special teatures Location Area (hal _ _ H 7 H Saltwater lagoon M C _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ needs Survey to assess needs _________________protection _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ protection Assess importance or n protectiono B H Survey to assessimpoftance HF P B M Establish small provincial reservoir Small lagoon, migratino waterfowl 0 Loan Lagoon Phu Yen L 1,500 13°17'N.109°17'E Be River Estuary Phu Yen E 1,000 1305'N,100 0 20'E Most important estuary on easten seaboard Tay Son Phu Yen FL 80 1303'N.108 0 41'E Oxbow lake with crocodile and waterfowl Pr F C H Improve reserve managment 8uon Me Thuot Dac Lac FL 100 12°40'N.108°01'E Small lake with crocodite and NR H EC M Make no hunting area Ninh Hoe Ninh Thuan S 11 037'N.101 °02'E Salt pans waders C M Seasonal ban on hun- M Redesign Reserveto South 1/3 of lake H Add these lakes to unit save management 1,000 waterfowl + H lagoon used by Leh Lake Dac Lac FL 500 12°25'N,108011'E Scenic lake with fish, birds and crocodiles Nam KaC Dac Lac FL 1,000 12°20'N,107°58'E Lakes and swimps with valuable fauna and flora on smalllake ____ting NR F A FH A _ ed M °Q 04 I.- t°o 1 Name Dan Kia Lake Don Duong Lake Province 200 R Lam Dong 1,000 R Lam Dong Location Area (hal Type 0 12 00'N.108022'E 0 11 50'N,108°35'E Cam Ranh Bay Khanh Hoa L 3,000 1 150'N,109 0 Dam Ninh Bay Ninh Thuan L 2,000 11°30'N.109 0 Cat Tian Dong Nai FS 2,500 11°30'N.107°20'E Dau Tieng Reservoir Tay Ninh R 5,000 Bien Lac Swamp Binh Thuan FS 2,000 10'E 02'E 1,000 Binh Thuan S Phan Thiet Binh Thuan Sa Tri An Dong Nai R Duymn Hal Ho Chi Minh M Mekong Estuary Ben Tre Vinh U Minh D C L Preserveas scenic area Scenic lake In pine forest D C L Preserveas scenic area Extensive brackish lagoon, waterlowl H C H Make no hunting area on small lake Small brackish lagoon, salt flats, waterfowl H C M Seasonal no hunting area on lagoon NP H A M Routine monitoring 1 1°15'-11 32'N, 0 1060lO'E-106 30'E Large reservoir close to Carnbodian wetland - HI F C H Survey to assess importance for waterfowl 11°10'N.107040'E Lake and seasonal CB B L Improve protection of 0 0 11 00N, 108 25'E NR reserve swamp forest + 0 11°OO'N.108 25'E Minh Hai Seasonal no hunting PF B _ L Conlrol lishing levels 2,000 100 20'N,106°55'E Dong Nai Estuary and mangroves SC B H Create reserve on seaward edge 300,000 10035'. 1 °OO'N. 105020'-106°00'E Peaty Swamp. flain of Reeds, rare birds Pr DR A L Limit replantino. avoid draining, ban hunting mnaintaintprotection - HC B M Seasonalno hunting area A L Maintain fire protection rigorously _ PS Seasonal no hunting - -~~~~~~~~~~~~~~~~~~~~~~~~~~~~area I Large reservoir, fish, some waterlowl 20,000 E M C H Sandy shiorelinelwaders 11i10'NN,1070 10'E 10,000 FS Tra M B HD Sandy shore linelwaders _area I Dong Thap Recommandatlons Scenic lake in pine forest I Tram Chim Survey Blo Threat Fresh water swamps and takes, white wing duck and watertowl ._____________________ Mu( Ne/Mul Gle Reserve Special feettures 4,000 0 9°25'-10 30'N, 0 106°25'-106 30'E Nipa palm estuary water birds 0 9015-N,104 55'E Peaty swamp best malaleuca in Vietnam _ Pr B rD1. .0 ,,o t _ mD Naern Area Ihal Type Provcea Bird Sanctuary Minh Hai F 180 Ca Mau Minh Hai M 4,000 Con Dao Oa RiaNung Tau AS = Bio - Biodiversity rating A - very imponant B - important C - minor value 100 I Reserve: : Location Specidl features Reserve Threat Bb Reommendatlons Survey 11 °5'-1 132'N. 106tm10'-106030'E Waterfowl colony in Phoenix mangrove NR DH B H Routine maintenance & protection 0 8 0 35'N,104 41'E Best Mangrove in Viet Nam NR C A H Find new location for representative reserve 8°40'N.106038'E Sea bird breeding colonies NP D B H Routine maintenance & protection Threat: P = pollution or poisoning of fish NP - National Park H - hunting NA = Nature Reserve land reclaimation R Provincial Reserve Prov C a cutting D = disturbance of wildlife S - shrimp ponds F - overfishing F overfishing Survey: H = high M = medium L = low Type: FL = freshwater lake FS = freshwater swamp R = reservoir M - mangroves L - lagoon Ro = rocky coast ~~~~~~~~~~~~~~~SaVL volcanic salt panslake co Source: Biodiversity Action Plan, 1994. tD zD 0, 0 Wlr^ ° o1;¢ Annex 1 Table 28 Page 39 of 48 - 39 - GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN AT MARKET PRICES, 1989-1993 (Billions of Dong) 1989 1990 1991 1992 Rev. 1993 (in 1989 Prices) Goods AgricultureandForesry Industry Construction Other Production Scrvices Transport andCommunications Trade Finance, Inurance, andBanklng State Sector Oher Services ) ) ) 11471 5366 1077 347 11641 5499 1128 360 11894 6042 1186 370 12751 6925 1317 381 13235 7766 1558 399 709 3311 743 3485 368 2627 3667 792 3654 448 2841 4059 842 3877 496 3040 4362 897 4109 578 3322 4871 29529 5.0% 31286 6.0% 33991 8.6% 36735 8.1% 5855 28135 8.0% Grou Domestic Product GrowthRate (Billions of Current Dong) Goods Agriculturc and Forestry Industry Construction Other Production Services Transport and Communications Trade Finance, Insurance, and Banking State Sector Other Services GrossDomesic Product ) ) ) 11471 5366 1077 347 16589 9183 2534 385 30314 15193 3059 744 36468 23956 6179 1045 39998 29371 9423 1476 709 3311 1434 6149 766 4389 4732 2860 9742 1108 6807 6880 4662 15281 1567 9718 11659 6036 17549 2318 14402 15998 45969 63.4% 76707 66.9% 110535 44.1% 136571 23.6% .. 5855 .. 28133 Note: In 1919,theGearl Statisticsl Offie (GSO)instiuzsed the UnitedNatio' System of NationalAccoutu (SNA). TheSNAseies prewnted he amr baed Onthemostcurrentofficislversion.Sincethem cries crenew, they have beengoingthrughscveal etimates andare still being revisedand improved. This is theeries asof Msy 12, 1994 Source: OGaeralStatisical Office andBnk Staff estimates. - 40 Annex 1 Table 29 Page 40 of 48 POPULATION,1975-93 Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Population ('000; mid-year) 48,030 49,158 50,295 51,436 52,574 53,700 54,722 55,687 56,655 57,692 58,868 60,249 61,750 63,263 64,774 66,233 67,774 69,405 70,918 GrowthRate (°/O) 2.57 2.35 2.31 2.27 2.21 2.14 1.90 1.76 1.74 1.83 2.04 2.35 2.49 2.45 2.39 2.25 2.33 2.41 2.18 Source: WorldBank, Populationand HealthDcpartment Revisedbased on the 1988/89Ccnsusand most recentdata General StatisticalOffice, StatisticalData of the SocialistRepublic of Viet Nam, 1986-1991,StatisticalPublishingHouse,1992. General StatisticalOffice,Economyand Financeof Viet Nam, 1986-92, StatisticalPublishingHousc, 1994. - 41 - Page Annex 1 Table 30 41 of 48 TOTAL EMPLOYMNT BY SECTOR, 1986-92 (Thousands of Persons) Total Employed Labor Force State Sector Cooperatives Private State Sector Employment (by unit) Govemment Central Local State Enterprises Central Local Employment by Sector Productive Sector Industry Construction Agriculture Forestry Transportation Telecommunications TradeandSupply Olher Non-Productive Sector of which: Science Education Arts and Culture Public Health State Management Note: Figures are rounded. Source: General Statistical Office. 1986 1987 1988 1989 1990 1991 Rev. 1992 27,399 4,028 19,730 3,641 27,968 4,091 20,283 3,594 28,477 4,052 20,658 3,768 28,940 3,801 19,750 5,389 30,286 3,419 20,414 6,453 30,974 3,144 18,071 9,759 31,815 2,975 18,629 10,211 4,028 4,091 4,052 3,801 3,419 3,144 2,975 1,369 343 1,026 2,659 1,278 1,380 1,383 337 1,046 2,708 1,226 1,482 1,359 327 1032 2,693 1236 1457 1,455 1,341 1,296 1,242 2,346 2,078 1,848 1,733 25,553 2,918 883 19,798 178 450 38 1,259 31 26,054 3,047 825 20,246 173 429 42 1,268 24 26,497 3,150 856 20,446 211 443 40 1,331 21 27,061 3,241 795 20,698 197 455 40 1,606 29 28,320 3,392 818 21,683 206 476 35 1,681 30 28,972 3,394 820 22,276 207 480 46 1,719 30 29,780 3,450 826 22,998 210 484 47 1,735 30 1,846 1,915 1,980 1,880 1,966 2,001 2,036 64 706 38 300 273 57 750 46 297 289 60 830 45 305 247 60 768 43 288 233 51 803 45 303 240 49 804 46 309 240 48 825 46 318 240 .. .. -42- Annex Page Table 31 42 of 48 Proposed modified land use criterion (Shanna 1990) Soil Depth (cM) Slope (Percent Degree) Land Use Class m la lb 0-3.5 3.5-12 12-27 0-2 2-7 >90 Ag 35-90 20-35 IV v IVa NVb 27-33 33-47 47-65 >65 7-15 15-18 18-25 25-35 >35 Agc Agbc Agic Agic or P or FT or CC/IP CF+P/C PF Ag Agc Agbc Agic Agic or P or FT or CC/IP CF+P/C PF P,PT CF+P CF+P/C CF+P/C CF+PIC CF+P/C PF PF PF PF PF PF PF +IP <20 Legend: PF Ag Agc Agbc Agic P FT CC IP CF PIC PP 1 Agriculturewith life fence or boundaryplantation Agricultureon irrigatedbasinpaddy terracesor rainfedagriculturewithminorconservationworks like graded channelterracesor grass strips interspacedat 0.75-1m verticalinterval (approx) Agriculturewith basin terracesor alley croppingor benchterraces Agriculturewith intensiveconservationmeasureslike reverse slopingbench terraces withgrassed raisers and trees on raisers, or alley cropping with nitrogen fixing trees but knittedon base by branches for soil conservationor hedge row cropping with base knittedby branches of nitrogen fixing trees for soil conservation Pasture mixedwith leguminousshrubsand nitrogenfixingbushes Fruit trees withappropriatesoil conservationmethods Cash crops with nitrogenfixingtrees, grsses Multi-storiedmixedindustrialplantationand grasseson the base for soil conservation Conmmunity forestryfor local needs(fast growingnitrogenfixingtrees preferred with mixedbroad leaf multi-storiedtrees) Pasture mixedwith leguminouscover crops Completelyprotectedforestwith naturalregenerationof all flora Annex 1 Figure 2 43 Page 43 of 48 Figure3.: MajorFishingGrounds Haiphoni Bach N1i I \~VS Vn |I fCe| vi Haman Central HoFi Gio - Thuan An Hae - Danang Afajor fishing grounds Offshzore Fish _ Sea mo-nu- . Shr-imnp II QtIy NThon;~'Cu Lao Xanh Nhatrang' Ho Chi FPhu Chuoi -Phu Quoc - _ MBinh JI Quy ~~~~~~~~~Islc~ands CLU Son ~~~Con P(1 1.I S&eOVIR: Phom nThatC(1.985; - 44& - Annex 1 Table 32 Page 44 of 48 FDEDINVESMENT. 1986-92 19S6 19t7 GrourFixedIvastmnent (Pecent of NationI Income) 20.56 12.1 16.02 9.2 By Typc of Mangement A. Central B. Local 12.10 3.46 By Type of Outlay A. ContructionAssmbly Works B. Machinery& Equipenent C. Other By Sector A. ProductiveSector a. ndwustry - HeavyIndustry -Light Industry b. Agriculture& Forestry c. Transprttion & Commeunicat d. Other B. Non-Productive Sector a. Housing nd CommunityServi b. Science,Education,PublicHealth and SocialWelfare c. Other 1939 1990 1991 1992 16.30 9.1 17.53 9.0 19.60 9.9 21.76 30.46 9.40 6.62 10.30 6.00 12.31 5.22 11.60 6.50 13.07 8.69 19.96 10.50 14.98 2.96 2.62 11.97 2.43 1.62 12.59 2.60 1.60 12.19 3.04 2.31 14.32 2.3S 1.90 14.53 5.51 1.72 21.69 5.76 3.01 16.70 7.34 5.47 14.33 7.77 14.32 1.30 15.36 7.53 13.06 9.57 25.73 14.67 .. .. .. .. 5.03 3.32 1.01 3.36 1.76 12.79 6.93 5.25 1.72 3.21 1.35 0.75 3.23 1.32 3.32 2.27 0.52 2.41 0.95 2.73 2.30 0.49 2.71 1.10 3.35 3.92 0.57 5.63 1.68 3.41 4.47 0.61 3.71 1.03 3.36 6.77 0.43 4.73 1.33 1.32 0.79 1.29 0.62 1.24 0.22 1.32 0.28 Z12 0.44 2.04 0.59 0.96 2.44 1.86 1933 (Billionsof Dong) (Percentage) Grou Fixed Investment 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By Typeof Management: A. Central B. Local 53.9 41.1 53.7 41.3 64.3 35.7 70.2 29.3 59.2 33.2 60.1 39.9 65.5 34.5 By Type of Outlay: A. ConstructionAssemblyWorks B.MachineryAEquipment C. Other 72.9 14.4 12.8 74.7 15.1 10.1 75.0 15.5 9.5 69.5 17.3 13.2 75.6 14.7 9.7 66.3 25.3 7.9 71.2 1I.9 9.9 35.7 26.6 9.1 24.5 16.2 4.9 43.5 32.3 .. 10.3 20.1 11.6 4.7 46.3 50.2 33.4 44.0 43.2 By Sector: A. ProductiveSector. a. Industry: - HcavyIndustry - Light Indutry b. Agriculture& Forestry c. Transportation & Communiect d. Other B. Non-Productive Sector: a. Housingand ConmunitySevi b. Scienee,Education,PublicHealth and SocialWelfare c. Other .. .. .. 2238 13.5 3.1 15.6 16.0 2.3 17.1 20.0 2.9 15.6 20.5 2.8 12.7 22.2 1.4 3.5 8.2 5.7 6.3 3.6 5.0 4.4 6.4 3.3 3.1 3.9 7.4 1.3 7.5 1.6 10.3 2.2 9.4 2.7 3.2 3.0 Note: a/ Offieial pricesat which investment expceditures arecalculated.Thescarcsomewhat higherthanthe 1932fixed priesr. but do notfully reflectpricedevelopments in theeconomy.Figures re rounded. Source:GeneralStatisticalOffice andGSO,Statitical Dataof theSocialistRqcpblicof Victnam,1976-1990,1991,1992. STATE INVESTMENTOUTLAYS IN AGRICULTURE,1976-91 - 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 (Billions ofDong at 1982 Prices) Gross Fixed Investment 2.857 4.301 4.560 3.919 3.478 3.253 2.622 3.548 5.121 5.395 4.533 3.213 3.823 2.734 3.352 3.406 Detailed Composition Agriculture Irrigation Forestry 1.360 1.736 1.956 1.885 1.814 1.699 1.278 1.591 2.341 2.325 1.535 1.574 1.595 2.176 2.966 2.974 .. .. 1.202 2.056 2.015 1.548 1.224 1.240 1.112 1.510 2.086 2.284 2.515 1.346 1.631 0.295 0.508 0.588 0.485 0.439 0.314 0.232 0.447 0.694 0.786 0.483 0.293 0.597 0.559 0.386 0.432 1 Note: For 1988 and 1989, there is no data in 1982prices, so shares from current price data are used. Sourcc: Gcncral Statistical Office and Statistical Data of thc Socialist Republicof Victnam, 1976-1990,1991, and 1992. .~~~~~~~~~~~~~~~ 0 m oo 0 & COI- - 46 - Annex 1 Table 34 Page 46 of 48 AGRICULTURAL PRODUCTION, 1986-93. 1986 < 1987 - 1988 1989 1990 1991 (Millionsof Dongat 1982prices) <-(1989 Prel. 1993 1992 MillionDong)-> 96,044 96,383 96,383 96,383 96,383 15,358,792 1,560,475 17,059,197 CropCultivation FoodCrops IndustrialCrops 72,342 49,702 22,640 70,628 47,701 22,927 70,628 50,890 19,738 70,628 52,047 18,581 70,628 11,511,701 12,331,464 12,597,516 .. 7,541,957 8,280,914 .. 1,913,293 1,903,383 AnimalHusbandry of which: Livestocka/ 23,702 25,755 25,755 25,755 25,755 3,847,091 4,276,311 14,067 15,420 13,879 13,976 - 2,000,186 2,261,195 GrossOutput 4,461,681 (Thousandsofmetrictons) 18,379 16,003 2,376 17,529 15,103 2,426 19,583 17,000 2,583 21,516 18,996 2,519 21,488 19,225 2,263 ArcaCultivatcd(000ha) c/ 6,812 6,710 6,968 7,090 7,111 Fcrtilizcr Availability (000 tons) 1,631 1,542 1,833 1,985 .. Foodgrain OutputperCapita(kg 301 281 307 332 323 Foodgrainsb/ Paddy Other * 21,989 19,622 2,367 24,214 212,590 2,624 25,000 22,300 2,700 7,448 7,707 7,692 323 346 357 Mcmorandum Itcms: Notc: a/ Excluding poultry. b/ Paddyequivalcnt. c/ Foodgrains. Source:GeneralStatistical Office. - 47 - Annex 1 Table 35 Page 47 of 48 INDUSTRiML CROP PRODUCTION AND YIELDS, 1986-93 1987 1988 1989 1990 1991 1992 Prel. 1993 54.5 57.5 36.8 97.5 104.2 83.7 34.3 81.2 29.0 78.0 25.2 54.0 25.6 77.0 28.0 75.0 1986 Production (000 metic tons) lute Rush Mulberry Sugarcane Peanuts 56.9 53.9 45.7 56.9 99.0 103.0 143.0 160.0 4964.6 5470.3 5700.4 5344.6 5400.0 6130.9 6437.0 6656.0 211.1 231.6 213.9 205.8 218.0 234.8 226.7 240.3 Soybeans 84.7 95.8 85.3 82.0 85.0 80.1 80.0 81.3 Tobacco 33.4 33.4 35.5 23.9 17.6 40.4 27.0 32.0 Tea Coffee 30.1 18.8 29.0 20.5 29.7 31.3 30.2 40.8 30.9 45.2 33.1 67.0 36.2 71.8 39.0 73.5 Rubber 50.1 51.7 49.7 50.6 52.0 64.6 67.0 70.0 1207.0 12.0 10.4 711.4 790.9 856.5 922.1 894.4 1052.5 1139.8 Jute 26.1 32.0 17.1 Rush 16.9 17.0 17.5 15.7 14.4 13.0 11.4 10.4 9.4 11.6 11.0 Coconut Area Cultivated (000 ha) Mulberry 6.7 6.7 5.7 6.5 11.0 13.9 20.2 22.0 Sugarcane 125.2 136.9 142.1 131.3 135.0 141.1 146.5 149.0 Peanuts 224.5 237.8 224.4 208.6 210.0 196.2 217.3 224.0 Soybeans 106.5 118.1, 103.0 100.2 105.0 115.4 97.3 98.5 Tobacco 36.2 38.8 39.5 28.0 22.0 30.8 31.4 36.0 Tea 58.1 59.2 59.1 58.3 60.0 60.0 62.9 Coffee Rubber 65.6 202.0 92.3 203.7 111.9 210.5 123.1 215.6 119.3 221.7 115.0 220.6 103.7 212.4 Coconut 157.7 199.3 210.6 206.3 212.3 214.2 204.1 2.1 5.8 8.5 39.7 0.9 0.8 0.9 0.5 0.3 0.2 4.5 1.8 6.1 8.0 40.0 1.0 0.8 0.9 0.5 0.2 0.3 4.0 2.2 4.8 8.0 40.1 1.0 0.8 0.9 0.5 0.3 0.2 4.1 2.2 5.6 8.8 40.7 1.0 0.8 0.9 0.5 0.3 0.2 4.5 2.2 2.4 5.7 7.4 43.5 1.2 0.7 1.3 0.6 0.6 0.3 4.9 2.2 7.0 7.0 43.9 1.0 0.8 0.9 0.6 0.7 0.3 5.6 Averaie Yield (Metric ton/Ha) Jute Rush Mulberry Sugarcane Peanuts Soybeans Tobacco Tea Coffee Rubber Coconut .. 9.0 40.0 1.0 0.8 0.8 .. .. .. .. Source; General Statistical Office, Statistical Data of the Socialist Republic of Vietnam, 1991. 2.3 7.2 7.3 44.7 1.1 0.8 0.9 Annex 1 -48- Tabl e 36 FOODGRAIN 1986 PRODUCTION AND YIELDS, 1987 1988 1989 1986-93 1990 Page 1991 1992 48 of 48 Est. 1993 Production (000 metic tons) 18,379 17,529 19,583 21,516 21,488 21,989 24,214 25,000 By Product Paddy Spring and Summer Crop Winter Crop Subsidiary Crops al 16,003 9,127 6,876 2,376 15,103 8,029 7,074 2,426 17,000 10,353 6,647 2,583 18,996 11,603 7,394 2,519 19,225 11,956 7,269 2,263 19,622 11,506 8,116 2,367 21,590 14,063 7,527 2,624 22,300 14,272 8,028 2,700 By Region North b/ South Mekong Delta 7,688 10,691 8,203 7,620 9,909 6,576 8,369 11,214 7,743 8,955 12,561 9,024 8,448 13,040 9,608 7,835 14,154 10,464 9,701 14,513 11,067 10,640 14,360 10,840 Area Cultivated (000 ha) 6,812 6,709 6,968 7,090 7,111 7448 7,707 7,692 By Product Paddy c/ Spring and Summer Crop Winter Crop Subsidiary Crops a/ 5,689 2,743 2,946 1,123 5,588 2,732 2,856 1,121 5,726 2,876 2,850 1,241 5,896 3,133 2,763 1,194 6,028 3,290 2,738 1,083 6,303 3,543 - 2,760 1,145 6,475 3,727 2,748 1,232 6,466 3,896 2,660 1,226 By Region North b/ South Mekong Delta 2,442 3,247 2,291 3,170 3,540 2,254 2,465 3,262 2,314 2,481 3,415 2,445 3,224 3,887 2,625 3,301 4,147 2,846 3,398 4,309 2,966 3,390 4,302 2,962 Average Yield (Metric ton/Ha) 2.70 2.61 2.81 3.03 3.02 2.95 3.14 3.25 By Product Paddy Spring and Summer Crop Winter Crop Subsidiary Crops a/ 2.81 3.33 2.33 2.12 2.70 2.94 2.48 2.16 2.97 3.60 2.33 2.08 3.22 3.70 2.68 2.11 3.19 3.63 2.65 2.09 3.11 3.25 2.94 2.07 3.33 3.77 2.74 2.13 3.45 3.66 3.02 2.20 By Region North b/ South Mekong Delta 3.15 3.29 3.58 2.40 2.80 2.92 3.40 3.44 3.35 3.61 3.68 3.69 2.62 3.35 3.66 2.37 3.41 3.68 2.85 3.37 3.73 3.14 3.34 3.66 Fcrtilizer Availability d/ Quantity (000metric tons) Average per Ha (Kg/Ha) 1631 239 1542 230 1833 263 1985 280 2511 3026 3089 3100 Note: a/ b/ c/ d/ .. In paddy equivalent. The North is defined as comprising the 17 provinces north of Da-Nang. Pertaining to "sown' area, taking into account multiple cropping. Nitrogenous fertilizer, ammonium sulphate (SA) equivalent. Not all the available fertilizer is used for foodgrain production. For 1990, figures include nitrogenous and phosphatic fertilizers. Sourcc: General Statistical Office, Statistical Data of the Socialist Republic of Vietnam, 1976-90, 1991. -49 - Annex 2 Page 1 of 8 VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES FOR A SOCIALIST ECONOMYIN TRANSITION Index of Susceptibilityto Deterioration Introduction 1. To increasethe understandingof the process of land degradationand facilitatedevelopment planning, it is helpful to identify areas potentially susceptible to degradation. For this purpose a "pronenessto erosion" indexfor land in Viet Nam was developed.Ideally, a GIS approachwould be used in the compilation of this index. This would allow periodic updatingof the result as new information becomesavailable.However, much of the requiredinput data (especiallythe soils data) are only presently available in hard copy at about 1:3,000,000 scale. Consequently,a decision was made to prepare an initial document from whateverinformationwas available by manual means. 2. The susceptibilitymap was prepared as an overlay to allow comparisonsand conclusions on a per-provincebasis. Thus the "basemap"was a transparencyshowingonly the coastlineof Viet Nam; all other input data were superimposedmanuallyupon this and the resultant boundarieswere rationalized as necessary afterwards. Indicatorsof Instability 3. The inherent stability of an area is best measured by its susceptibilityto deterioration if disturbed. Highly susceptible areas will show evidence of deterioration following relatively minor impacts, but less susceptibleones will not. 4. No direct measurementof an area's susceptibilityto deterioration is availableand evidence must be sought from a range of indicators. These include climaticand seismic factors, slope, and the intrinsic susceptibilityof the soil and geologicalmaterialsto erosion or structural failure. 5. In the first stage of this classificationthe land is divided into two categories: (a) areas that are inherentlystable, and (b) areas that have a relativelyhigh rate of natural baselineerosion. Slope, soil and geologicalcategories were considered. 6. Slope. No slope class map for Viet Nam is yet available. As an interim measure a topographic map at 1:1,000,000 scale obtainedfrom the HydrometeorologicalService of Viet Nam was used. Based upon geomorphologicaland climaticdata plus informationprovided by FIPI, NIAPP, the GeologicalSurvey of Viet Nam, and personalobservationsit was concludedthat most land above 500m elevationwould be sloping, much of it relatively steeplysloping. The steeper slopes would occur in the mountains,but even at 500m many areas were finely dissectedwith steep (but shorter) slopes. 7. Thus two categoriesof slope (relatively steep and relativelygentle) were derived from the -50 - Annex 2 Page 2 of 8 topographic map, and transferred photographicallyto the basemap. The resultant categories accorded well with those presented in an "EcologicalAnd TopographicZoning Map Of Viet Nam" obtained from NIAPP, except for an area between 12.5 and 14degrees north which comprisesthe catchmentsof the Da Rang River (which flowseast) and two tributariesof the Mekong;the Xre Poc and Tong Le Cong Rivers. They also align with Sharma's (1990) estimatethat about 70% of the country is steeply sloping. Geoloay. Geologicalmaps at 1:1,000,000 scale (GeologicalSurvey Of Viet Nam, 1991), 8. and at 1:1,500,000 scale (United Nations, 1990) plus their respectiveexplanatorynotes, in addition to information provided by the Geological Survey Of Viet Nam were used to identify weak geological formations. These were considered likely to be relatively erodible, subject to structural failure, or to produce deep clay regoliths subject to landslide activity. Based on the United Nations (1990) map the followingstructures were classifiedas being within these categories: * * * * UpperNeorne.Quasenry b4lt. pwvd. day; Mildle Trianic manme, skaleiem; sluek-cosl, I m_; Carbnifraus.-Prin Caeoc Gsbbro.nrte, pbbro.olerie 9. Soils. The interim soils map provided by NIAPP was a 1:3,000,000 scale photocopyof a reducedversion of the 1:1,000,000scale soils map of Viet Nam. Thi; map was initiallycompiledin two parts: one for Northern Viet Nam at 1:500,000scale by the RussianDr. Friedland,and one for Southern Viet Nam at the same scale by the Dutchman Dr. Mockman. Different approaches and methods were used. After 1975NIAPP recompiledand combinedthese maps, but the result is acknowledgedby NIAPP as not entirely satisfactory. 10. Using information provided by NIAPP the following soils were identified as relatively susceptible to erosion: Grey DegradedSoils: * Greyderadedsoib * Grey ndeed sail an ad atkivm rachs * Gteydegraded sibsan _smam Red And Yellow Soils: * Brwnor prpc soil annmeunl mWng * Brown-red soisannoArilnugs * Bmwnyellow Sl aSneMAl aga * Riddsh soilson hinesre * Red ad yellow sagsan tlmepllthic * Ydkwuh red soils on cWimagm * Ug& yelow sis an mAtAa * Ydlow4rown oils an oldalkuviwn Humus Red And Yellow Soils On Mountains 11. As a second step in deriving the susceptibilityindex, seismicand climaticfactors were taken into account. These factors impinge very broadly upon the land rather than in the site-specific way that slope, soil and geology do, and should be seen as erosion-precipitatingagents rather than aspects of inherent susceptibility. Where seismic and/or climatic impacts are relatively strong, the inherent susceptibilitiesof the land are more likely to be enabled. 12. Seismicity. Most of Viet Nam is formed on the Indo-Chinacrustal plate, but the portion North of the Red River Valley is on the South China crustal plate and an area in the North-west is on the Burmese-Thaicrustal plate (United Nations, 1990). The GeologicalSurvey Of Viet Nam has detailed, but so far unpublished, information on the activity of the plate boundaries and the location of other fracture zones in Viet Nam. - 51 - Annex 2 Page 3 of 8 Published informationis in the explanatorybrochures for the Atlas Of Mineral Resources 13. Of The ESCAP Region (United Nations, 1990), The Geology Of Cambodia, Laos And Viet Nam (Geological Survey Of Viet Nam, 1991), and the Proceedings Of The Regional Seminar On EnvironmentalGeology(GeologicalAssociationOf Viet Nam, 1992).In the latterof these, NguyenDinh Uy and Dam Ngoc, both of the GeologicalSurvey Of Viet Nam, present a map showing earthquake zonation for the north-west of Northern Viet Nam. A map showingareas of relativelyhigh and relativelylow seismicactivityhas beenprepared 14. from these data taking intoaccount the dip of the activezone (whichdetermineswhich side of it will have the most severe earth tremors), and the depth at which most activity takes place (deeper activitysuch as under the Red River Delta has less effect at the surface). Climate. A total of 121 rain-gaugestationshave been placed across Viet Nam, 93 or 77% 15. of them north of the 17th parallel. Only seven occur in the upland areas in Southern Viet Nam. A map of these and average monthlyand annual rainfallfigures for 119 of them over varying recordingperiods up to 1984 were obtainedfrom the HydrometeorologyService for Viet Nam. Many stationshave 30 or 40 years of records, but some have only about 10. The rainfall records have not been translated into isohyets by the HydrometeorologicalService and a map of average annual rainfall is not yet available from Hanoi. Sargent (1991) has includedan annual rainfall map in her review. Her map shows annual 16. rainfalls in excess of 3000mm in the Central Highlands and around Lam Dong province. This appears plausible because in highlandareas near a coast with a landwardwet season, windsare likely to receive orographic rainfall. Sargent's map was not sourced and its accuracy cannotbe ascertained. However, for the purposesof land susceptibilityassessment,especiallywith respect to soil 17. erosion, rainfall intensity figures are more important than annual rainfall. The Hydrometeorological Service of Viet Nam has daily rainfall intensity figures for all 121 rainfall stations and have now processed them to give an average daily intensity, a maximum value, and probability of occurrence figures on a 1, 5, 10, 20, and 50 percentile basis. Sharma(1990)records that intensitiesof 200 - 400mm per hour are common in some areas, which are very high figures. has been used as a 18. In this assessment, a 20% probabilitydaily rainfall intensityof 150mmn threshold in identifyingstationswith rainfallintensitieslikely to be significantlyerosive. All such stations were enclosed in a hand-drawn isopleth. Most of them occur in coastal areas, but this may be a biased result because of the scarcity of recording stations in upland areas. However, typhoons and tropical depressions commonly affect coastal areas and bring high intensityrains. Relative SusceptibilityTo Deterioration In this section the evidence from all indicators of the susceptibility of the land to 19. deterioration is drawn together, and the mappingunits are classifiedas having either a relatively high or a relatively low degree of susceptibility. Initially, the inherent susceptibilityfactor (derivedfrom assessmentsof slope, geologyand 20. soils) was weighted as doubly important. Next, rainfall intensity and seismic activity were considered. Three susceptibilityzones were then generated: one with a relativelyerosive climate or a relatively high seismic activity (consideredto be roughly equal in terms of their contributionto susceptibility),one with both factors present together, and one with neither factor. These factors are recorded in Table 1. -52 Annex 2 Page 4 of8 - 21. Of the three factors included in Table 1, the inherent susceptibility one represents a predisposingcondition, residual in the nature of the land. The other two (seismicityand rainfall intensity) are the executing agents of erosion, and could be regardedas an index of the likelihoodthat degradation of the land will occur, or as a "probability" factor. 22. Thus five classes of susceptibilityto deterioration were derived, and these are shown in Table 2 and the accompanyingsusceptibilitymap. Table 1: Deriasi Map of acdbiy y IbIl (eubility Inhm snceptbility of lad systenmw deweroratimn(hiSh-jlow-) Dqreeci of amnic atvity (h-, low-) Erosivity of dinme (Io-. low-) 2 2 3 3 4 * S. 4 M: I -km t S cibl 5 (mns sabc) and 5- most ccptilc. 23. Results. A list of the regions most likely to be severely degraded was compiled by overlaying the susceptibility map on the provinces map. Regions containing significant areas with susceptibility rating four or five and only very small areas (if any) with a rating less than three were consideredto be highly susceptibleto deterioration. Other regionspredominantlyrating three were likely to be in a degraded conditionand considered if medium susceptibility.These are shown in Table 2 Table2: Percena of lan uuAepAdbiiy by clas Region Cba 2 Clm 3 clan 4 Cis 5 291 14% 371 15% 2% 2% 10% 41% 44% 3% IS 26S 55S IIS iS 0 75S 201 0 5% NanhCm uzuCeaza 4% 25% 39S 29% 4% Smdt Cetral Coasu 29% 21 27S 23% 0% S9admnH 33S 0S 66S 0% 0% 98% 0 2S 0% 0% 01 0S 0 0 Css Toml Nard,e Mountain Nrdiem Midlimds Red River Dela _baad Nah EmuMebang Meklg Deks NOa: I - eambl (nmt Yabk) a I I00% 5-mast .sweuIbc. 24. A list of the most importantprovincesfor watershedprotectionwas providedby FIPI. Most of these were also selected by the susceptibilitymapping and these ones are identified in Table 3 by underlining. Provinces identified by Mr. Phuong that were not selected by the susceptibilitymapping include Lang Son (because of low overall topographyand low rainfall intensity)and Dong Nai (because of low topography, rainfall intensity and seismic activity). - Map Land C>'SS X Susceptibility 53 Annex 2 Page 5 of 8 - Classes (LEAST) *Cn -mE' P Cl~~~~~~ X jfj '- . 0 20Km 0 10oo 00o 54 Annex 2 Page 6 of 8 25. In a study of sediment problems in Viet Nam, Cao Dang Du (1992) produced a map of suspendedsediment yield which also supports the susceptibilitymapping. A 'forest types' map of Viet Nam produced by FIPI at 1:1,000,000 scale also supportsthe mapping. Tablc3: Provinces minstsueptible to deterioraiion Highly msuceptibleprovirces Mediumaipt Nhe , Yen Bai.CaoBmg. HacD Binh.Lai Chau.SonLa. HaGims,,Thril ioa, Ninh Binh, Lao Cai Notes:wuderlind provnces alsoxdelired by [RIl provkbe use Q Nirh Vin Ph. ujte Quaq TriLBidhDind. KanhHoa.KoaTum, &m Dea.1 ThiesaHue. DacLac,Qw4 Nam-DaNai 26. Sharma (1990) identifiedsix priority watershedsfor urgent action due to their "immediate effect on nationalwell being". Thesesix were chosen becausethey all had large dams or large dams were plannedfor them, and becausethe dam catchmentswere in a degradedconditionand siltationof the dams was likely to be serious. Sharma acknowledgesthat "there are many other watersheds in the country which are also in similar conditionsas far as their status in uplandconservation is concerned". Of Sharma's six catchments, the Da, Chay, and Chu River catchments lie within areas 27. mapped as highly susceptible to deterioration, and the Da Nhim / Dong Nai catchment is moderately susceptible. The Tra Khuc River is in Quang Ngai province, which has mainly susceptibilitycategories one and two, and hence was not selectedas being (overall) susceptible.However, the outer parts of the province have susceptibilityratings three and four which agrees with Sharna's assessment. The Saigon River watershed (Tay Ninh and Song Be provinces) has been mapped as 28. category one, because of low relief, low seismicactivity, and low rainfall intensity. Sharmaverifies the relief category (he cites maximumslopes of four to seven degrees). However, this area was very heavily disturbed by bombing (5 - 10 bomb holes per ha), and also large areas of forest have been destroyedby "uncontrolledagricultural expansion". 29. Other areas close to major towns and cities may also be in a badly degradedcondition due to population pressure, which has not been included as a factor in the susceptibilitymapping. This anthropogenic factor may cause land degradation even in areas not classified as susceptible to deterioration. The area close to the edges of the Red River Delta is an example(IIED, 1991)but in that case the land is very susceptible to deterioration. Issues to be resolved 30. The land susceptibilitymap accompanyingthis report is a first approximationonly, based on whatever infornation was available at the time. A revised map needs to be producedin GIS format. The existing soils map at 1:1,000,000 scale could be used as a basis once it is converted to FAO standards (see Sehgal, 1989) and digitized. Until then, it is not entirely reliable. A better choice would be the new integrated, ecosystem- based land resources maps at 1:250,000 scalethat are currently being produced by NIAPP. 31. Other input data also need to be revised, for example, a map of slope class at 1:1,000,000 scale or better needs to be prepared and digitized, and there is a need for a more precise definitionof seismically active areas, geologicalformations susceptibleto failure, climatic factors, and soils that are erodible. In the case of climate, rainfall amountand seasonalityneed to be incorporatedwith the intensity data to produce an overall index of erosivityof climate. In the longer term, these data could be updated if more climate recording stations were placed in the upland areas, especiallyin Southern Viet Nam. - 5 Annex 2 Page 7 of 8 Proximity to large centers of population could also be includedas a factor threateningthe stability of land. 32. Another issue is forms of land degradationother than soil erosion. Nutrient depletion,soil structure decline and other impacts result from repeated cycles of shifting cultivation, but also from continueduse of good quality agricultural land. In recent years with increasedpopulationpressure these soils are being used more and more intensively.It is very importantthat the productivityof these better soils be at least maintainedso that the nationas a whole maintainsfood security. The same could be said for the nation's water resources and reserves of biodiversity. 33. Other importantissues includethe need to re-assessland suitabilityfor use based on the new land resources mapping that is being done, and to use the results for improved land use planning (long term), to upgrade the existing soils map and convert it to FAO format (shorter termn),and to progressively implementthe research needs describedby Sargent (in IIED, 1991). - 56 2 -Aex Page 8 of 8 Land Susceptibility Classes, By Provinces (in ha) Province Name Total Area HaGlang Tuyen Quang Cao Bang Lang Son Sac Thai Lal Chau Son La Yen Sal Lao Cal 7385 6430 8S04 7905 6604 17334 14398 7704 6894 Class I (least) Class2 241 693 603 267 1628 958 3070 2661 S9 799 Class 3 6961 3737 4617 1592 3318 4225 4971 3953 2685 Guang Nlnh 5167 23 4709 Vlnh Phu HaBac 4514 4917 1593 1169 2691 3628 Ha Nol Hal Phong 990 1233 817 1047 173 Ha Tay Hoa Blnh HalHung 2524 4282 2669 1268 733 2452 1146 2022 217 Thai Blnh 1507 1607 1859 1674 11453 16837 6071 8469 49SS 1540 72 2728 2960 1973 3240 1318 Nam Ha NlnhBlnh Thanh Hoa Nghe An HaTnh Guang Blnh QuangTrl Thua Thlen-Hue 348 1015 4661 383 596 12003 6198 6342 6210 4843 40 736 249 688 1084 1446 2303 2671 1628 768 3564 2721 Gla Lal Kon Tum 8148 14891 10855 7528 8093 944 D.c Lac 179 6723 Lam Dong 10235 2483 Qang NamDa-Na QuangNgal Binh Dlnh Phu Yen Khan Hoa Nlnh Thuan Binh Thusn , Dong nal 5935 8935 Son Be 9363 8828 Tay Nlnh Ho Chi Minh Vung Tau- Ba RI Long An TienGlang Ben Tre Dong Thap Vlnh Long Tra Vinh Can Tho Soc Trang An Glang Kien Glang Mlnh hal 4004 1897 1901 4004 1897 1901 4455 2274 2119 31S8 1643 2017 3016 3271 Totalsil 4456 2274 2119 3168 1643 2017 3016 3271 3306 5824 7919 329009 192 1448 4141 6372 360 6042 1710 Class 4 1157 496 2336 2388 512 11316 9427 2778 3410 Class 5 (most) 128 352 113 1793 374 425 230 130 194 3436 6393 196 110 1333 127 164 800 1027 438 187 1927 324 33S8 7967 387 1187 620 814 843 620 6798 9911 1189 7762 2560 1172 2035 2374 2180 167 635 3306 5824 7919 95918 Notes: 11 Area totals not equal to those of the General Department of Land Management Source: Aldrick 1993 44711 120867 59933 7590 Annex 3 Page 1 of 13 57 VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES FOR A SOCIALIST ECONOMYIN TRANSITION Forest Degradationand the Evolutionof Barren Lands 1. This annexanalyzesthe changesin forest landuse in Viet Nam, reconcilingoften conflicting land use and forestry statistics. It then analyzesthe sourcesof deforestationand their relativecontribution to land degradation, and concludeswith the resultingphysicalimpactof upland forest areas degradation. A. DeforestationTrends and Changes in Land Use 2. Forest cover I/ in Viet Nam decreased from 67 percent of total land area to 29 percent between 1943 and 1991 (Table 1). This includesthe loss of at least 12.6 millionha of forest, of which 8.0 million ha were in NorthemViet Nam and 4.6 millionha were in SouthernViet Nain. The Northern Mountainsexperiencedthe greatest decline, with forest cover dropping from 95 percent to 17 percent in 48 years. The decrease in this region was caused by the rapidlygrowing population's demand for forest products and agricultural land. The result was the formation of large areas of unproductivebarren land. The remaining forests in the Northern Mountains are degraded, poorly stocked, and scattered in small non-contiguousplots. Table 1: Forest Cover, Deforestation,and Unused Land Region Land Area (1000 ha) Forest cover (% of land area) 1991 1943 Barren land (% of area) 1991 1943-73 1973-85 1985-91 1993 1) Northem Mountains 7645 95% 17% 2.4% 3.9% (0.3%) 60%-65% 2) Northem Midlands 3982 55% 29% 1.0% 4.5% (0.3%) 27%-33% 3) Red River Delta 1030 3% 3% 0.9% 6.7% 0.2% 5%-14% 4) North Central Coast 4002 66% 35% 0.7% 2.3% (0.4%) 40%-44% 5) South Central Coast 4582 62% 32% 1.4% 2.3% (0.1%) 42%-49% 6) Central Highlands 5557 93% 60% 1.4% 0.1% 0.3% 25%-32% 7) N.E. of Mekong 2348 54% 24% 0.4% 3.7% 1.4% 23%-34% 8) Mekong Delta 3957 23% 9% 1.8% 3.0% (0.1%) 12%-21% Totals 33104 67% 29% 1.6% 2.5% 0.0% 35%-42% Note: Numbers in parentheses indicate net reforestation. Source: Annex 1. I/ Annual Rate of deforestation (% of total forest cover per year) Forest cover includes both natural and planted forest. - 58 - Annex 3 Page 2 of 13 3. Fuelwoodspresently constituteover a third of all traded energy, two-thirdsof household cooking energy use (including straw, and are estimated to account for 87 percent of all wood demand (which includes non-energyuse). 4. The overall rate of net deforestation(deforestationlessafforestation)in VietNam from 1943 to 1973 was equivalent to 1.6 percent per year. Uncontrolled logging in the Northern Mountains and extensive conversion of forest to coffee, rubber and banana plantations in the Mekong delta and North East of Mekong regions were the primary contributorsto forest loss. The annual rate of deforestation increased by a third from 1973to 1985, with the highest rates of loss occurring in the Red River Delta, Northern Midlands, Northern Mountains,and North East of Mekong. Increaseddeforestationwas driven by the high demand for timber necessaryfor the post-war reconstructionof the country, and an exportdriven expansion in logging to raise foreign exchange. 5. Duringthe six years from 1985to 1991, deforestationpersisted in the North East of Mekong and Central Highlands regions as GOV continued logging and encouraged settlement. In five other regions, official statistics indicatethat the 42 year deforestationtrend has been reversed. This reversal may, however, be regarded with skepticism for two reasons: (a) the forest cover figures mask the replacementof natural forest with planted forest, and (b) during the mid-eighties the GOV redefined natural forests from being areas with over 30 percent crown cover to areas with over 10 percent crown cover. Disaggregatingforest cover into natural and planted forest indicatesthat, whilenatural forest area decreased by 0.1 million ha between 1985 and 1991, planted forest increasedby about 80 thousand ha (Table 2). The redefinition,which is particularlyrelevantfor the Northern Mountainsand North Central Coast, combined marginally forested (formerly defined) "barren land" with "natural forest" to produce an increase (or smaller decline) in the natural forest category. Table 2: Change in Land Use 1985 to 1991 (in 1,000 ha) Region Name Change in Natural Forest Change in Planted Forest Change in Barren Lands Change in Annual Agriculture Change in Perennial Agriculture 1985-1991 1985-1991 1985-1991 1985-1991 1985-1991 2 16 40 27 (7) 3) Red River Delta (5) 4 8 (60) 6 4) North Central Coast 29 7 78 (46) 26 5) South Central Coast (25) 36 (7) (30) 26 6) Central Highlands (71) 5 (80) (4) 86 7) North East Mekong (80) 30 (42) (18) 47 (3) 5 (116) (164) 75 (108) 83 (204) (248) 253 2) Northem Midlands 8) Mekong Delta Totals Notes: Numbers in parenthesis indicate a decrease. Source: Annex 1. 59 - Annex 3 Page 3 of 13 6. Despite the abovedata bias, an analysisof the reduction in natural forest at the provincial level in Northern Viet Nam (see para 9 below) reveals that it has come largely at the expenseof annual crop expansion. Another effect of the redefinitionwas to understate the true rate of deforestationin the Central Highlandsand North East of Mekongregions between 1985and 1991, where there was pressure by loggers and settlers who planted mainly tree crops (coffee, cashew nuts etc.). By re-categorizing barren lands as natural forest though, GOV is implicitly increasing its emphasis to protect critical watersheds from degradation. However, it is questionableto what degree the barren lands will be able to recover their natural form or become productivewithoutthe support of protection and replenishment programs. 7. Barren land, also referred to as the 'bare hills' or 'unused land' in . , , ,.niui *&1 .*.~ " various hz'other' pgj Figure 1: Change in land cover from 1985 to 1990 (units in 1,000 ha). statistical sources, is characterizedas grass or shrub covered hills of generally low agricultural productivity. The majority of barren land existed as far back as 1960, when the FAO identified 9.3 million ha of land in Viet Nam. In 1993, GOV classified between 35 percent and 42 percent of the country,approximately12 to 13 imillion ha, as barren land 2/. Barren land formation is closely linked to deforestation. From sub-provincial observations,correlation analysis of the change in land use and land cover from 1985 to 1990 indicates there is a 1 t ines relatisheteen significant inverse relationship between barren land and natural forest (Figure 1). In this relationship most of the observationsare clustered about the origin, suggestingthat there has been little overall change in area of barren land and natural forest. Barren land formation is closely linked to natural forest patterns because agricultural activity on forest soils is responsiblefor depletion of soil nutrients, decline in soil organic matter and structure, soil erosion, weed invasion,and hydrologicalchangesthat result in serious off-site impacts. 8. The physical process of degradationstarts with clear-cut logging. The cleared land, made accessibleto farmers as a result of logging, is cultivateduntil soil fertility is exhausted. The exhausted land is then abandonedto extendedperiods of fallow, interruptedby occasionalcropping, grazing, and fuelwood collection. These extensive activities, combined with a fire prone regime, prevent forest regeneration. Soil erosion and weed invasionare part of the process of land degradation. Most of the logging and subsequentagricultural production, especiallyin recent years, is on steep slopes which are highly susceptibleto erosion once the protectivevegetativecover has been removed. In terms of weed invasion,up to 200 speciesof weeds can be found on barren land, especiallyEchinonchloaand Imperata, which competedirectly with crops for soil nutrients. In this way barren land is created. The extent of barren land in the upland areas is also relatedto the practice of shiftingcultivation. Thus a substantial 2/ This estimateof barren land includesonly the areas that can be developedfor agricultureor forestry. Other estimates of barren land are larger (13-14 millionha) becausethey includerockymountains,riverbanks, waterways,and marshes. -60- Annex 3 Page 4 of 13 portion of barren or idle land may be consideredto be utilized within traditional, extensive agricultural production systems and may thus not be readily "available." 9. As shown in Table 1, regions with large areas of barren land include the Northern Mountains (60-65 percent), the North Central Coast (40-44percent), and the South Central Coast (42-49 percent). The critical dynamics of barren land evolution involve human pressure on land that is inherentlysusceptibleto deterioration. In areas of high populationdensity, there is relatively less barren land, reflecting the presence of property rights and active competitionfor available resources. In areas of low populationdensity there is usually plenty of barren land, revealingthe open access nature of the resource. The northern half of the country, specificallythe Northern Midlands, contains the highest proportion of highly susceptible land. By comparisonthe Southern part of the country, excluding the Central Highlands, is relativelystable in terms of erosion prone characteristics. Regionswith large areas of degraded barren land are the Northern Mountain and Northem Midlands. (See Annex 2 for an analysis of the factors contributingto erosion proneness by regions and for the construction of a land susceptibilityindex.) 10. A closer look at the regionaldifferencesin the factorsaccountingfor changesin barren land areas reveals a number of noteworthyimplications. From 1985to 1990, four of the six provinces with an increase in over 27,000 ha of barren land and 11 of the 19 provinces which experienced an increase in over 2,000 ha of barren land were in the Northern Mountains, Northern Midlands, and North Central Coast. In all of these provincesthere was a decrease in natural forest and an increase in annual crops. This is explainedby a large populationtrying to subsist on severely degraded land. Thus, withoutother sources of income improvement,the people are being forced into the remainingforest to produce food crops 3/. 11. In the SouthCentral Coast and the Central highlands,barren land increasedwhere perennial crops increased. The GOV resettlement programnhas been encouraging cash cropping (coffee, tea, rubber) by providing subsidies to immigrants primarily from the Red River Delta. While lower population density and longer crop rotations slow the process of degradation, perennial agriculture is leading directly to the loss of old growth forest in the provincesof Gia Lai and Dac Lac. 12. The Mekong Delta provinces of Tien Giang and Hau Giang, where barren land has increased, are characterized as having acid sulphate and/or saline soils. These soils were probably disturbed by agricultural expansion in response to increased demand by Ho Chi Minh City. Eventually the soils become unproductiveand were abandoned. B. Sources of Forest Loss 13. There are many causes of deforestationin Viet Nam, the most imnportantof which include arable land expansion, fuelwood consumption,logging, shiftingcultivation, and fire damage. If data on these variables were to be converted to area equivalents,there is an estimated loss of 131 million ha of forest per year (Table 3). This number is much higher than the government-reportedtotal loss of 184 million ha over six years. This difference is explainedby: (a) overlap and double-countingin attributing the causes of forest loss, and (b) the previouslymentionedredefinitionof natural forests. Despite these shortcomings the informationis useful in illustrating the relative importanceof the different sources of degradation. 31 On a regionallevel this trend is masked by the large increase in natural forest in Son La and Lai Chauprovinces. This increase is due to a GOV redefinitionof what constitutesnaturalforest. - 61 - Annex 3 Page 5 of 13 14. Sourcesof forest degradationare discussedbelow under the followingsub-headings: (a) (b) (c) (d) (e) (f) Arable Land Expansion FuelwoodConsumption Logging Fire Damage ShiftingAgriculture Other Causes Table 3: ImputedAnnual Deforestation(in 1,000 ha) Region Name Fire Damage Itinerant Shifting CultivationfV Fuelwood Logging Total w/o fuelwood 1990-' 1991,' 1992-' 1) Northem Mountains 0 35 115 17 52 2) Northem Midlands 0 10 11 23 33 3) Red River Delta 0 0 33 5 5 4) North Central Coast 1 7 96 4 12 5) South Central Coast 0 15 46 4 19 6) Central Highlands 4 95 69 8 107 7) North East Mekong 2 15 78 4 21 8) Mekong Delta 11 3 32 13 27 Totals 18 180 480 78 276 1991k- Note: a/ Data on sedentaryshiftingcultivation(estimatedat up to one millionha) is not availableby region. b/ Year of estirmate. Sources: FIPI 1990, 1991. TFAP 1991..WorldBankestimates1992. Arable Land Expansion 15. Expansionof agricultureintoforest areashas both direct and indirectenvironmentalimpacts. Direct environmentalimpactsinclude erosion, loss of topsoil, watersheddegradation,and changes in the distribution of both plant and animal species. The indirect environmental effects include the sedimentationof rivers, lakes, dams and harbors as well as the loss of the carbon sequestrationfunctions of the forest. In Viet Nam there was less than a one percent increase in agriculturalland from 1985 to 1991. Closer examination reveals that overall the area of annual crops contracted while the area of perennial crops expanded (Table 2). The expansionof perennials was largely at the expense of annuals (especiallymaize) in the central coastal regions, but at the expenseof natural forests and barren lands in the Central Highlands and the North East of Mekong regions. Available statistics do not, however, permit an assessment of the extent to which arable land expansionhas directly reduced forest areas or reduced the extent of barren lands countrywide. The poorest (food deficit) provinces in the Northem Mountains and Northem Midlandssaw an attemptedexpansionof annual cropping even at the expense of perennialcrops. The areas sufferingthe most chronicmalnutrition(NorthemMidlandsand Mountains) are also the poorest in the country, and in these areas the expansionof arable land for food subsistence (often as shifting agriculture) is an important source of degradation pressure. Crop expansion and replacement are closely linked to the evolution of barren lands (paras. 6-8 above). Annex 3 - 62 - Page 6 of 13 16. Sixty-six percent of the 250,000 ha decline in the annual crop area from 1985 to 1991 occurred in the Mekong Delta. This decrease, withouta comparabledrop in rice production, signals an increase in productivity. The increase in productivitymay be attributed to the initial backyard private plot/responsibility system and later to the freeing of prices and the shift to private production systems allowed under further liberalizationin 1989. The expansionof annual crops (primarilyat the expense of barren land) in the Northern Mountainshas largely been driven by the allocationof land rights to the barren lands. Table 4: 1992 PercentageShare of Primary Cooking Fuel North" Red River Delta Hanoi' Central" Mekong Delta Leaves, Straw, etc. 49.1 98.5 70.0 60.2 7.8 Wood 49.7 1.0 8.7 39.8 90.7 Primary Cooking Fuel Ho Chi Minh City Rural: 1.0 Charcoal Coal (3) 1.2 0.5 20.7 Kerosene 0.5 Electricity 0.7 Urban: Leaves, Straw, etc. 17.7 3.3 Wood 51.0 38.3 17.7 12.5 51.0 Charcoal 3.1 Coal (3) 25.0 55.0 53.1 13.6 Kerosene 4.2 3.3 15.6 4.2 Electricity 98.4 13.5 18.8 30.2 40.6 28.1 1.6 1.0 Notes: a/ Comprising the Northem Midlands and Highlands. b/ Comprising Hanoi Province and adjacent communes. c/ Comprising North and South Central and Central Highlands. Source: UNDP/ESMAP (World Bank) Report, Viet Nam: Rural and Household Energy Issues and Options, September 1993, Table 2.2. 17. The remaining areas of robust contiguousold growth forest are rapidly being converted to perennial crops and planted forests. Over 90 percent of the increase in perennial crops occurred in the southern half of the country, particularlythe Central Highlands. This is the only region with a plentiful supply of unclaimed, relatively stable productive land. The availabilityof this resource has encouraged high rates of GOV-sponsored(and in recent years, spontaneous)immigrationfrom the Red River Delta and the North Central coast 4/. Immigrationwill continue while available land can be claimed (see Annex 5). 4/ Until 1989 all migration and agricultural expansion was under the direction of the central and provincial governments. - 63 - Annex 3 Page 7 of 13 FuelwoodConsumption 18. Fuelwooddemandrepresentsan importantburdenon VietNam's remainingforest resources. If converted to area equivalents, the demand for fuelwood would have accounted for 6 times as much forest destruction as commerciallogging(Table 3). However, this does not mean that the degradation effects are equivalent since a significantportion of fuelwood needs are derived from scattered trees (estimatesrange from 4.5 to 8 million tons/year) which are also included in the estimate. In agrarian areas, wood is the fuel of choice for householduse. Wood also provides heat for formal and infomial rural industries. However, in rural areas of high populationdensityand where wood is relativelyscarce, such as the Red River Deltaand the coastal central regions, rice straw and other crop residuesare critical substitutes. Recent analysis,5/ based on the 1992 situation abstracted from the living standards measurementstudy (LSMS), are summarizedbelow for sources of cooking fuel by regions. 19. Locallycollectedbiomass residues(leaves, straw, etc.) appear to be the primary household fuel source in rural areas except for the Mekong Delta, where wood predominates. Wood is also important in the Northem Uplands (i.e. both the Midlandsand Mountainareas). In urban areas, wood is important for the Mekong Delta (especiallyNortheastMekong Delta subregion), Northem Uplands, and the Central region (including the Central Highland). 20. An examinationof the supply/demandbalanceprepared by the 1993 UNDP/ESMAPstudy (see Table 5 below) gives a picture of fuelwood supply shortages by regions and an indicationof the pressure on existing forest resources. The estimatefor wood-relatedbiomass excludes those for straw, leaves, and grass which are highlylocalized and effectivelyuntransportableand thus unmarketable. The nationalconsumptionestimateof about 28 milliontons closelymatches equivalentestimatesof about 31 milliontons of the Tropical Forestry ActionPlan (TFAP). The study shows that present supplyof wood biomassfor fuel (about 38 milliontons) gives a surplus for the countryas a whole, but identifiestwo sets of regions which are experiencinglarge deficits: (a) the North Midlandsand Red River Delta regions, and (b) the Mekong Delta and N.E. of Mekong regions. These areas would presumablyexperiencethe greatest stress on their forest resources. If, however, the TFAP estimate of sustainablesupply of 25 million tons (not available by region) were to be used, the relative fuelwooddeficit situation would be even more serious. 21. A number of implicationsare worth noting. First, although the fuelwood depleted North Midlandsand the Red River Delta are substantiallydeficit, becausethe fuelwoodmarketingzone extends to the surplus Northern Highlands,part of the latter's surplus can be (and is) used to fulfill the formers' needs. This means that fuelwood in the more accessibleareas of the Northern Highlands provides an importantsource of cash incomefor the inhabitants,mitigatingthe food productiondeficitproblem there. However, this also means that the forest capital in the Northern mountain areas could come under even greater depletionthreat if the market for commercialfuelwood continuesto expand. Second, part of the deficit of the Mekong Delta/N.E. of Mekongregions can similarlybe mitigatedby the surplus Central Highlands (and to a lesser extent the South Central region). However, because these regions are relatively inaccessible,they are not likely to be under as muchpressure as the remainingwetland forests in the Mekong Delta where transport is facilitatedby barges in the densely inter-connectedwaterways. In the Mekong Delta, particularly in the coastal mangrove and Melaleucaforests, extensive areas are being cut over to meet commercialurban and rural fuelwood demands, and (to a much smaller extent) industrial raw material (pulp and paper) export demand. 5/ UNDP/ESMAP,Viet Nam: Rural and HouseholdEnerpv Issues and Options. September1993 (henceforthcalled the UNDP/ESMAPstudy). - 64 - Annex 3 Page 8 of 13 Table 5: Demand, Supply and Balancefor Fuelwoodand Charcoal, 1992 (in 1000 tons, air dry wood equivalent) Region 1) Northern Highlands 2) North Midlands 3) Red River Delta 4) North Central 5) Central Highlands 6) South Central 7) N.E. of Mekong 8) Mekong Delta Totals Demand Supply Surplus Urban Rural Total Total (Deficit) 357 4,118 4,474 9,166 4,692 97 313 373 245 1,189 1,140 2,707 1,171 1,286 1,453 3,080 1,416 747 424 6,079 8,807 (539) (1,029) 2,999 7,391 648 2,042 1,270 5,345 1,781 2,816 8,239 23,161 2,429 4,858 9,509 28,505 5,457 3,546 4,114 38,340 3,028 (1,312) (5,395) 9,834 Source: UNDP/ESMAPStudy, Table 4.4. GOV has had an ambitious tree planting program in place since 1975 to attenuate the 22. fuelwood shortage situation, particularly in the South Central Coast, North East Mekong, and Northern Mountains regions. However, the success rate in the upland areas has been reported to be between 30 percent and 60 percent of total seedlingsplanted. One of the main reasons is that, in their current state, fuelwood plantationsare uneconomical--havingto competedirectly with an open access forest resource. Other reasons for failure are poor soils, lack of skills and motivation, and inappropriatetree species choice. The need is to improve and extend areas of fuelwood or mixed forest plantationsand encourage more economical and ecologicallymore sustainablealternatives, taking into account the problems and constraintsthat have to be addressedand the need for farmingsystemsthat are consistentwith the farming family profile. This is needed despite medium term trends which point to a possible decline (or at least a reduction in the increase) in the demand for fuelwood 6/. 23. While tree planting efforts are important,a case can be made for continuedemphasison the standing stock in terms of improved management of existing forests, plantations plus scattered tree resources, and ensuring that there is or will be a market for the trees that have been planted already. The TFAP states that pure fuelwood plantationsare uneconomicalbecause they are competing with a free wood resource which is collected from the natural forests, degradedforest land, and miscellaneousareas. While this statementis true for plantationwoodfrom the same area where open accessopportunitiesexist, it may not hold if plantationsare grown closer to market compared with sources of collected wood in natural forests. In the latter case, plantationwood couldcompetewith a "free" remote resource. As has been pointed out in the UNDP/ESMAPstudy, possible savings in transport costs could well be invested 6/ Such trends project that as fuelwoodsources get more scarce, its price differential vis-a-visother sources like coal is expected to worsen. Also. as kerosene (a conveniencefuel for urban cooking)becomesmore affordableand available, the share of fuelwood(includingcharcoal) is expected to decline further. - 65 - Annex 3 Page 9 of 13 in a fuelwoodplantation and be competitivewith "free firewood" 7/. The need is therefore to find land with limited alternative use near fuelwood demand centers for concentration of plantation efforts. However, the problem may well be that even for barren lands in such locations,alternativeuses may be more profitable (e.g., for industrial estates). 24. Another need is the reduction of demand for fuelwoodsthrough the improvementof cook stoves. Substantialdevelopmentand demonstrationwork has been undertaken in Viet Nam. The need is to focus the Government's ImprovedCook Stoves Program in resource stressed areas. Another issue on the demand for fuelwood is the situationwith respect to inter-fuelsubstitutionand the extent relative price incentives affected by Government policy play a role in increasing fuelwood demand and consequentlyforest degradation. Commercial Loggin, 25. Historic accounts show the role of forest degradation from logging followed from the collectivizationof land resources in the 1950s. State organizations,in particular the forest enterprises, were given the mandateto intensifyloggingof valuabletimber from the hills. Prices set by the state for the timber covered little more than logging and transportationcosts and recurrent expenditure. Little direct reinvestmentin reforestationtook place. This establisheda pattern of extractionto meet external needs, after which many communesseeminglylost their traditionalcollectivemechanismsfor protecting and managing the forests. The absence of any effective property rights to hill land led to a situation where land becameliableto short-termexploitativepracticesand randomclearance of the remainingtrees for fuel or construction purposesand agricultural cultivationthen occurred 8/. This process was aided by the fact that many enterprises had control over areas of land that were too large for them to manage effectively. 26. From 1986to 1991,GOVreported thatforest industriesharvestedapproximately3.5 million 3 m of wood annually(with an additional30 percent to 50 percent be added for illegal logging). The total standingvolume is 525 million m3. Conversionto area equivalentsindicatesthat legal loggingaccounted for the loss of perhaps 80,000 ha of forest in 1991 (Table 3.3). Although extraction is highest in the Central Highlands, the higher natural stockof these forestsmeansthat proportionatelyless area is affected than in the Northern Mountains. However, it is in the Central Highlandsthat large quantitiesof logs are smuggled across Laos and Cambodia to Thailand 9/. This illegal trade explains the disproportionate loss of forest land comparedto official log extractionfigures in the region. Demandfor paper, of which less than 100,000 tons is produced annually, may appear not to contributeto substantialdeforestationas plantation grown wood and bamboo are its main sources of raw materials. However, in localized hill areas within the zone of influence of the pulp and paper mills, growth of fast growing species on 7/ For example,if the distancebetweena naturalforest and a plantationlocatedat the point of demandis 80 km and transportcostsequalDong 1,000per ton per km (USS0.1 per ton/km),then(all elseequal)plantationwoodcanbe grownat a costof upto Dong80,000per ton(USS8/ton)andstill compete with a 'free' (openaccess) supplyof wood that is 80 km or furtherfrom the market. If the modeof transportis by boatthenthis break-even distancewouldbe about240 km, due to boattransportcostsbeingroughlyone-thirdof truckingcostsper ton/km. 8/ A. Forde,'Cooperatives, FamiliesandDevelopment in NorthernViet Nam- someexperiences from theForest,Trees and PeopleProject,1989". 9/ Thereis alsoconsiderable smugglingof LaotianandCambodian logs into Viet Nam. Since1991,with theban of log and lumberexportsfrom Viet Nam,'inward flows" (includinglocal 'leakages')havebeenreportedto haveincreased substantially. - 66 - Annex 3 Page 10 of 13 commercial plantationshas displaced traditional sources and may thus have increased the degradation pressure on forests. 27. Official logging occurs in natural production forest, but unofficiallyit also takes place in protectedand special use forest, albeitat a much smaller scale. Until 1991, the volumeof logs extracted from natural forest for the wood industrieshas been estimatedto have surpassedthe sustainable yield. Since the ban on the export of logs and lumber in 1991, loggingactivities by the state enterprises have been substantiallyreduceddue to depressed log prices and a processingbottleneck. Depressedprices are a consequenceof log exportrestrictions.The bottleneckis the underdevelopedprocessing industry, which consists of a few hundred small mechanicalmills and a few thousand manual shops. Fire Damage 28. Fire damage is both natural and anthropogenic. Nearly half of Viet Nain's 9 million ha of forests are regarded as fire prone in the dry season when the hot west winds are the strongest. Before planting each crop, itinerant and sedentary farmers use fire as a tool for clearing and claiming land, controlling weeds and insects, and producingash that acts as fertilizer. Also, the initial regrowth after burning woody grasses makessuitable grazing. Uncontrolledfires often burn 10 to 20 twentytimes the intended area. The result is not only the destruction of protectivevegetative cover, but also the loss of soil organic matter and associated soil structure decline. 29. The incidenceof officiallyreported forest fires has declined from about 20 thousand ha in 1990 to 8 thousand ha in 1992. This figure does not include unreported fires or fires on unused land. The greatest forest losses occur in the Mekong Delta because the lower rainfall, the distinct dry season, and the peat conditionsof the soil in SouthernViet Nam makes the vegetationreadily combustible. The impactof forest fires on forest ecosystemshas not been measured,but knowledgeableexperts suggestthat the system under greatest threat is the lower-montagneevergreen forests of the central highlands. ShiftingCultivation Damage 30. In Viet Nam shifting cultivators can be divided into two groups, itinerant and sedentary. The itinerant (swidden) cultivators, numbering slightly less than a million people (about 120,000 households), are made up almost exclusivelyof members of a few ethnic minorities. Their land use is extensive, covering large areas although actual cultivationat any one time may be just a fraction of the "used" area. Families live away from each other, each clearingplots around their homes and cultivating them for a number of years, until fertilitybecomestoo lowor weed growth becomestoo vigorous. When the distance to the plots becomes too long, they move to a new site. This kind of shifting cultivationis responsiblefor some loss of forest in the highlands.Given the fast regrowthof the vegetationand if given enough fallow time, there is usually relatively little erosion resultingfrom this activity. Becauseof their nomadic nature there is little informationavailableabouttheir farming systems. In 1990, their cultivated holdings were estimatedto cover about 180,000ha, the majorityoccurring in the Central Highlandsand the Northern Mountains, where the minority populationsare concentrated. 31. The sedentary shifting cultivatorsincludemost of the rural population outside of the deltas (mission estimate is perhaps 15-16millionpeople or nearly 70 percent of non-itinerantpopulation in the hill/mountain areas). They have fixed households and shift cultivation sites. Some members of this group have access to small lowlandpaddy holdings. Cultivationgenerallyincludes portions of the open access barren lands. Probably relativelylittle direct loss of natural forest can be attributedto this activity. However, it has caused serious land degradationproblems due to over-cultivation,and is the primary factor preventing regeneration of natural forest on the barren lands. Over-cultivationis a particularly - 67 - Annex 3 Page 11 of 13 acute problem in the Northern Highlands, Northern Midlands, and North Central Coast becauseof the high percentage of unstable land. The extent of sedentary shifting cultivationis estimatedto cover as much as one million ha (i.e., one million ha/year is abandonedby shiftingcultivatorswith a comparable area of fallow land being brought back into production) 10/. 32. Crop husbandrypracticesused by the itinerantshiftingcultivatorsand by sedentaryshifting cultivators are similar: both use hoe cultivationand plant in jab holes without use of fertilizers. The difference lies in their respective areas of concentration, with itinerant shifting cultivators linked to commerciallylogged areas and sedentary shiftingcultivatorsutilizing so-calledbarren (degradedforest) land. Crops grown on hill-sides include primarily upland rice, maize, and cassava with some soybean and peanut, mainly in the central uplandplateau. While shiftingcultivationusing a 5-6 year crop cycle followed by around 10 years of fallow may represent the primary use of barren land, the mission observed that along most major and some minor roads and close to rural towns, much hill-side farming had changedto continuouscroppingsystems due to populationpressure on the land resource. In several relatively isolated areas of Northwesternand Central Viet Nam, villagers reported that a day's trek was needed to reach land spare for shiftingcultivation. 33. It is unclear to what extent the itinerantshiftingcultivatorsare the victims of deforestation rather than the culprits because they lack the technology and therefore the option to change what they have been doing for generations. Sedentary shifting cultivators are in effect behaving rationally in 'mining' the abundant open access barren lands. In general, both methods of shifting cultivation are deemed sustainable at population densities below 50-70 persons per km2 . This threshold depends on factors such as the susceptibilityof the land to deterioration,previous farming history, crops grown, and population density. Once the population densitygrows beyond the threshold level it will be necessary to modify one of these factors determiningsustainability. It is therefore in the Northern Highlands and Midlands and the North Central Coast that sedentary shifting cultivatorscause the most extensive land degradation. Other Causes 34. Other causes of upland forest degradation have been attributed to over-grazing, the construction of dams, and war damages. Over-grazing is not critical except in localized sites. Constructionof dams results in the floodingof large areas of forest. It has been estimatedthat as much as 30,000 ha of forest is lost per year due to the creation of reservoirs. (This estimate is not included in the calculation of deforestation because reservoirs are usually logged before they are flooded.) However, no new large reservoirs are currently filling up. To a lesser extent, flooding increases deforestationby creating new navigablewaterways for transporting logs. The effects of the war on upland forest, as elaborated in Annex 4, have been largely mitigatedover time and are not considered to be so serious as to warrant priority consideration. 10/ See Bo Ohisson, Forestry and Rural Development,TFAP, 1990; and J. Aldrick, Land Use Assessments(mission background paper), 1993. This one million ha/year of degradationcannot be interpretedas one million ha of forest loss/year as some fallow land brought to such use are not classifiedas forests. 68 - Annex 3 Page 12 of 13 C. The PhysicalImpactof Upland Forest and Land Degradation Erosion Effects 35. The net effect of the sources of degradation/erosion(as reflectedin the resulting loss of agriculturalproductivity,reductionof waterquality, and sedimentationof streams, lakesand reservoirs) is of increasingconcern in Viet Nam. Deforestationalone, as the discussionabove makes clear, does not necessarilyresult in severeerosion problems. The causeof erosionis deforestationcloselyfollowed by cultivation of soils that are inherently susceptible to deterioration. Natural factors facilitating deteriorationinclude climaticand seismicfactors, slope, and the inherentsusceptibilityof the soils and geologicmaterialsto structural failure. A more detailedexplanationof these relationshipsis provided in Annex 2, which attempts to set up an index of susceptibility. This section summarizesthe data availableon erosion impact. 36. In terms of on-siteeffects,the multi-storiedcanopyof uplandforest interceptsrainfalland reduceserosion. Under closed canopy(70-80percent)conditionsestimatesof natural soil loss are 1.0 tons/ha/year. When the forest canopy is completelyremoved, and the land is cultivated, this loss increases to 100-150tons/ha/yr on slopesof 5-6 percent, and up to 350 tons/ha/yr on over 30 percent slope. Soil loss is generallyhighestin the first year and then declinesat a decliningrate in following years. Agriculturalyields mirror this trend. Among annual crops, cultivationof cassavaand maize results in the greatest soil loss. Perennialcrops cause less erosion than annual crops becausethe soil surfacein not disturbedas frequentlyin the cultivationprocess. Geographically,soil loss is most acute in the Northern Mountainswhere a high degreeof inherentsusceptibilityto erosion is combinedwith the productionof annual crops such as uplandrice, maize, and cassava. Land productivitystudies of Son La Province, for example, show that upland rice yields on barren land can decline on average by 50 percent per year. The farmer can only cultivatethe land for three years before the yield drops so low that they no longer warrantthe effort put into plantingand weeding.(See Annex2 for further details.) 37. In terms of off-site effects, under natural conditions,the soil fertility that is lost in the erosion process runs-off into the rivers and eventuallymakes its way down to the deltas where it is distributedby floods. The sedimentload in the 40 main rivers in Viet Nam is high, starting at 0.2-0.4 kg/im up-stream,and reaching 1-3 kg/m3 of run-offin the middleand downstreamsectionsof the rivers. Eighty to ninety percent of this sediment load occurs during the rainy season. The constructionof reservoirs, dams, and flood control systemshas resulted in the trappingof this fertile sediment,which essentiallymeans a loss of contributionto agriculturalproductivity. Increasedfloodingand bed buildup has led to the requirementof continuallyraising downstreamline banks and increasingthe risk of widespreadfloodingeven more should the leveesburst. 38. lands". A more dramaticoff-siteeffect is the floodingand landslidesresultingfrom bare "barren "Nature has wreakeda fierce revengefor the wholesaledestructionof forests in NorthernViet Nam, devastatingan entire valley with a sudden flood that surged down the barren hills. Accordingto officialaccounts, 80 people were drownedor are missingafter a wall of water smashedthrough MuongLay, about 300 km northwestof Hanoi on an upper tributary of the Red River. The delugesweptaway four of the town's fivebridges and flattenedhomes,schools and offices. Fourteendays after the tragedy, roads throughthe barren hills, which lost tonnes of topsoil, were still blockedand authoritieswere unable to deliver 50,000 tonnes of rice to hungry survivors,despite army help" (BangkokPost, July 16, 1990). "The provincesof Quang Binh, Ha Tinh, and Quang Tri, all in the NorthCentral Coast, were recentlyhit by the worstfloods in 42 years--withhundredsof personsreported deador missing Annex 3 Page 13of13 - 69 - and damage to property estimatedat over 70 million dong. Quang Ninh alone had more than 30 dead and 12,000 houses destroyedor damaged. In particular, two of its villages, Truong Xuan and Truong Son, were completelydevastatedand more than 4,000 villagers had to take refuge. Most observers believethat it was mainly due to the deforestationat the headwatersof the Gianh River" (Viet Nam News, December 13, 1992). 39. The most critical watershedsare characterizedby a high rate of sedimentation,a torrential flow due to high elevationand short course, and the occurrenceof intensiveagriculturalactivities. These circumstancesare found in the Red and Da rivers in Northern Viet Nam, the main rivers in Central Viet Nam, and the Dong Nai river in Southern Viet Nam. On the basis of silt load per km2 , the relative importancein soil erosion of the main river systemsmay be summarizedas follows (in tons/km2 /year): * * * * Red River and Da River Thao River Ngan San, Ngan Pho Dong Nai, Da Nhim, Tra Khu 450 300 200-300 150-200 The 40 main river systems are estimatedto transport about one million tons of nitrogen and about half a million tons of phosphorusper year. The Da river watershedis estimatedto have an average soil loss rate of 50 tons/ha/year. The estimatedsilt load being depositedin the Hoa Binh power station reservoir (one of the Da River dams) is 40-50 million m3 (or about 110 million tons) per year. Accordingto the National Institute of Energy, despite an original capacity of 20 billion ml the power station's effective life has been re-estimated at between 50 and 70 years comparedto the planned 250 years. 40. Sedimentationis also a problem in port cities in the deltas. Remote sensing data indicates that the deltas are extendinginto the sea at a rate of about 50 m per year. The most pressing issue is the port of Hai Phong, which is seriously threateneddue to the high cost of frequent dredging,and plans are being consideredto construct a new port about 70 km north of the city. Loss of BiologicalDiversity 41. Deforestationmay be the most importantcontributorto the loss of biodiversity in Vietnam today, both at the ecosystem-and species-levels. However, the precise rate and magnitudeof the loss of biodiversity is difficult to ascertaingiven the patchinessof data collection, some of which have been disrupted by the war, and the lack of time-seriesdata. In more qualitativeor non-valueterms, experts indicate that forest fires and human settlement have seriously degraded the lower-montagneevergreen forests of the central highland. In addition, coastal marine ecosystemshave been seriously threatened by municipal and industrial wastewater, over-fishing,and the use of dynamiteto extract coral for lime manufacturing. 42. Current rates of extinctionamongboth flora and fauna in Viet Nam are estimatedto be 100 to 1,000 times what they would be under natural conditions. It is widely believedthat Pongo pygmaeus was the first speciesto have becomeextinctsincethe PleistoceneEra. In 1904, Dicerorhinussumatrensis vanished. Since then four other species of ungulate (Cervis nippon pseudaxis, C. eldi, Bos sauveli and Bubalus arnee have followedthe path to extinction. In addition, at least five species of large waterbird have become extinct as breeding species while one species, Lophura edwarsi, is believed to be extinct. With a present populationbelievedto be fewer than 50, Bos bantenRand Rhinocerossondaicus(the latter is estimated to have only ten survivors) are the next two species of large mammalsto become extinct. In time, these species will be followedby Panthera tigris and Elaphasmaximus. - 70 - Annex 4 Page 1 of 8 VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES FOR A SOCIALISTECONOMYIN TRANSITION Viet Nam War Damagesand the Environment Overview 1. Environmental damage was an important tactic used against Viet Nam in the Second Indochina War of 1961 to 1975. The strategy involved the destruction of the natural resource base essential to the agrarian society of Viet Nam. The theater of these operationswas mainly Southern Viet Nam. The result was not only heavydirect casualtiesand continuingmedicalcomplications,but also the widespread disruption and degradationof productive ecosystems. 2. Almost two decades have elapsed since the end of the Second Indochina War. The Vietnamesehave put the war behind them and are eagerly rebuildingtheir country. At the same time, various estimates have been made conceming the extent of land damaged by the war, ranging from 100,000 ha to 2 million ha. The environment has not completely recovered from these damages. However, with the passage of time it is becoming more difficult to separate war damages from the pressures of population expansionand rapid development. This annex quantifies the extent of damage to inland forest, mangroves, and agricultural land caused by the war, and evaluates its long term ecological effects. In doing so it attemptsto rationalizedivergent estimatesof the damage. It concludes that the environmentaldamages caused by the war are often sensationalizedand sometimesmistakenly identifiedas the current cause of ecosystemdegradation. 3. Bombs,herbicides, and heavymachinerywere responsiblefor the majorityof environmental damage caused by the war. These means of damage were targeted against upland forest, mangrove forest, and agricultural land. Areas that warrant further investigation into the costs and benefits of reclamationare bomb damaged agricultural land, the 51,000 ha of upland forest that were defoliated 4 or more times, and the 27,000 ha of Melaluca dominatedmangrovethat were completelydestroyed. One of the least understood and potentially most detrimentalaspects of the war is how the modification in species distribution that it caused may have permanentlychanged the biodiversity of Viet Nam. 4. The health consequencesof the war include the increase in mosquitos from bomb craters, which is partially responsiblefor preventablemalaria, encephalitis,and dengue fever, and has led to the very high levels of DDT measured in humans. Medical complications include the likely increase in dioxins in Southern Vietnamesewhich will probably lead, on a population basis, to increased rates of cancer, immune deficiency, congenital malformations,and neurologicaldamage including IQ reduction and endocrine disorders. Weapons Used Against the Environment 5. Beginning in 1965 and ending in 1973, Viet Nam was bombed on an almost daily basis. The most severe damage was caused by B-52 Stratofortresses. For each flight, these planes usually - 71 Annex 4 - Page 2 of 8 released 108 five hundred pound bombs, which scattered over an area of 55 ha. Each bomb created a crater roughly 10 m in diameter and 5 m deep.' The UnitedStatedexpendedsome 14 milliontonnes of bombs, shells, and the like in its war 6. in Indochina.2 The result was 25 million bomb craters displacing 3 billion m3 of earth and topsoil, causing health hazards, disruptingwater flow, and increasingerosion.3 Seventy-onepercent of the highexplosive munitions were targeted against former South Viet Nam.4 The bombingeffort was directed against the forests that sheltered both the Ho Chi Minh trail and the armed forces of the National Front. 7. Three major herbicides were employed during the war. These agents were color coded "Orange", "White", and "Blue" (Table 1). Agents "Orange" and "White" killed plants by interfering with their metabolism. Agent "Blue" killed by desiccating. Dioxin contaminationin Agent "Orange" was about 3.83 mg/I, leadingto an estimated170 kg dioxin(2,3,7,8-tetrachloro-p-dioxin)being deposited in the environment.5 Table 1: Major herbicidesused in the Second IndochinaWar Name (byweight) Composition Application Orange A 1.124:1mixtureof the n-butylesters of 2,4,5trichlorophenoxyacetic acid (2,4,5-T)and 2,4dichlorophenoxyacetic acid(2,4-D). Also containing 2,3,7,8 - tetrachloro-p-dioxin. Appliedundilutedat 28.06 lhectare,thereby supplying15.31 kglhectare of 2,4,5-T and 13.61 kg/hectare of 2,4-D in terTns of acidequivalent; alsoanestimated107mglhectareof dioxin. White Appliedundilutedat 28.06 IJhectare,thereby saltsof A 3.882:1 mixtureof tri-iso-propanolamine 2,4-dichlorophenoxy-acetic acid(2,4-D)and4-amino- supplying 6.73 kglhectare of 2,4-Dand 1.82 3,5,6-trichloropicolinic acid(picloram) kg/hectare of picloramin termsof acidequivalent. Blue (Na A 2.663:1mixtureof Nadimethylarsenate cacodylate) anddimethylarsinic(cacodylic)acid. Appliedundilutedat 28.06Lihectare,thereby supplying10.42kg/hectare in termns of acid is elemental (of which5.66kg/hectarc equivalent arsenic). source: SIPRI,1984 Ninetyfive percent of the defoliantswere dispensedfrom C-123 transport aircraftequipped 8. to deliver 3,000 L onto 130 ha. A mission usuallyconsistedof three-to-fiveaircraft flying side by side, with one aircraft spraying a strip roughly 150 m wide and 8.7 km long (Vietnamesesources estimate an average contaminated strip at 300 m wide6 , while US sources estimate it at 100 m wide7 ). Drift occurred at wind speeds greater than 5 m/s. KnownherbicideexpendituresagainstSouthViet Nam from 1961to 1971were 70.72 million L (discrepanciesin total herbicidequantitydiffer betweensources based on the assumptions used in calculating herbicide volume), of which approximately 60% was agent "Orange"8 9. Agents "Orange" and "White" were used primarily for forest destruction, whereas agent "Blue" was used mostly for crop destruction. About 86% of the missions were targetedagainst forest and woody vegetation and 14% against agricultural crops.9 Roughly 34% of the target areas were attacked more than once."' Defoliationmissions were restrictedalmost entirely to the Southern part of the country. For example, many roadsideareas in Dac Lac Province(especiallyalong segments in the old Highway 14) were defoliated in 1,000 meter-widestrips on either side of the road. Some of these strips have yet to fully recover from the chemicaldamage. 10. Fire was used to keep defoliatedareas clear of vegetation. There is no record available of the volume or type of incendiarydevices used during the war. Amongthe targets were the roadsteads and riverbanks of the routes frequently travelled by US forces. Another tactic to increase the - 72 - Annex 4 Page 3 of 8 effectivenessof incendiarydevices is to "seed" vast areas with imperatacylindricaso that more effective burning could take place. If this is true, the indirect impact of this tactic (given the persistency of rhizome roots of this grass which proliferates after fire) may well constitutethe most persistent negative effect on crop productivity. Quantitativeestimatesof the impactof imperatagrass ranges from 1.0-1.5 million hectares. 11. The US forces began employing200 twentyton D7E caterpillartractors to clear forest and level paddy fields in 1965." The purpose of this activity was to deny the oppositioncover and food. Typically these vehicles were outfitted with a 2'h ton "Rome Plough" blade and a one meter "treesplitter". These tractors levelled 325,000 ha of forest.'2 The locations of this destruction are not well documented. Ecological Effects on Inland Forest 12. The Inland forests most often hit by bombingand munitionswere the stands in Tay Ninh, Song Be, and Dong Nai provinces." If the craters that evidence farmer forest were added up, they would cover an area of perhaps 104,000 ha. About 4.9 million ha of forest were subject to shrapnel damage.'4 It is estimated that 19% of the total or 1.1 million ha of dense inland forest was sprayed at least once.'5 This activitywas most intensein the provincesof Tay Ninh, Song Be, and the Ma Da forest in Dong Nai. Upland forest tree mortality increasedexponentiallywith each repeatedspraying. About 51,000 ha of upland forest were sprayed 4 or more times and experienced80-100%tree mortality. The remaining 1.05 million ha of uplandforest was sprayed one to three times and experienced 10-50%tree mortality. 13. The abundanceof craters in the forest makes loggingmore difficultthan normal. The logs must be cut shorter for maneuverabilityduring skidding. Shrapneldamaged trees are unlikely to have maintainedany commercialvalue. Managementof bomb damaged forest costs about twice as much as undamaged forest. Rehabilitation,which involvesopening the canopy for young trees and re-seeding valuable timber species, costs about US$ 100 per hectare'6 . The spraying of Viet Namn'sdense inland forest, which supports over 200 conmmercialtree species of which a dozen are high quality timber, resulted in a one time loss of 20 million m3 of merchantabletimber, equivalentto a financialloss of US$ 8.0 billion at 1993 prices." 14. Inland forest recovery from herbicide damage is estimated at 40 years, not taking into account the areas taken over semi-perrnanentlyby grasses. The 51,000 ha where vegetation was completely destroyed rapidly became occupied with pioneer woody (Bambusa, Thyrsostachys, and Oxytenanthera)and herbaceousgrasses (Imperatacylindrica). The tenure of these species is prolonged by fire. Recovery of grass infested lands by harrowing or disking followedby planting with Acacia or Eucalyptus costs about US$ 500 per hectare in 1992." At the Ma Da Forest Enterprise in Dong Nai province, natural re-invasionby native tree species is encouragedby first establishingplantationsof fast growing trees to provide a shade canopy. It is unknown how long these disturbed forests take to reestablish their former species diversity, if they do at all. Mixed planting of Acacia or Eucalyptus and Dipterocarps costs US$ 1,000 to 1,500 per hectare in 1992, including the cost of clearing unexploded bombs and land leveling."' - 73 Annex 4 Page 4 of 8 EcologicalEffects on Terrestrial Animal Ecology For wildlife, the principal impactof bombingand spraying was the destruction of the food 15. and cover provided by the forest. Many animals probablymigrated to eastern Cambodiain response to the military activity. However, these areas were most likely already populatedto carrying capacity, and thus were unable to provide substantialrefuge. In 1968, five animalspecies were listed as being on the verge of extinction in Southern Viet Nam: a tapir (Tapirusindicus), a bear (Ursus tibetanus), a gibbon (Hylobatespileatus), a pheasant (Lophura imperialis),and the kouprey (Bos sauveli).3' These species were probablyalready endangereddue to the extensiveloggingactivitiesthat took place in the 1940's and 1950's. Wildlife re-colonizationof damaged areas after the war was slowed by the change in habitat. There was a modestlevel of direct damage to wildlife from the toxic effect of herbicides16. particularly in the bird population. Pfeiffer(1970)describestouringdefoliatedmangrovesin Duyen Hai district for 2'/2 hours without observing a single species of insectivorousor frugivorous bird.2 ' From 1985 to 1987elevated levels of dioxin were measured in food and wildlife samples collectedat markets in Southern Viet Nam.22 Overall, it appears that the war was only a minor factor in the degradation of biodiversity when comparedto the prolongedimpactsof logging,hunting, and agriculturalexpansion. EcologicalEffects on Coastal, Aquatic and Marine Ecologv Bombingand herbicide attacks on mangrove forest were concentratedon the delta of the 17. Saigon River. The river channels were cleared of vegetationto facilitate supply ships entering Ho Chi Minh City. The second most severely damaged areas were the U-Minh forest and the Cau Mau peninsula. There is no record of the extent of bomb damage directly incurred by the mangrove ecosystem. The bomb craters disruptedwater flow and filled permanentlywith water, becomingbreeding grounds for malaria bearing mosquitoes. The mangrove ecosystem is particularly susceptible to defoliants, with a single spraying 18. destroying the entire plant community. Destructionwas exacerbatedby salvage harvesting of the dead trees and/or application of incendiarydevices. About 124,000 ha of true mangrove and 27,000 ha of Melaluca mangrove forest were completelydestroyed;' representing about 30% of all mangroves in Viet Nam. Mangrovesgrow along deltasand in estuariesand are a pioneer species on newly accreted 19. coastline. The first species to colonizean area are Sonneratiaand Avicennia, followedby Rhizophora, and then later by Bruguiera. Over time, as the soil builds and the land grows out of reach of the high tide, the forest becomes dominatedby trees of the speciesMelaleuca. 20. Natural regenerationof mangrovesis related to the accessibilityof seed bearing tidal waters to damaged areas. In the early 1980s, 5-10% of the mangroves were still barren, the rest had either regeneratedwith a compositionof 10% Rhizophora(the economicallymost importantof the species)and 85% other species, or had been converted to agriculture and aquaculture. Where mangrovespecies are established, a crop of firewoodcan be harvestedin 5 years. Officialsat the Duyen Hai Forest Enterprise cite that in 1992, costs of replantingRhizophorawere about US$ 70 per hectare, excludingbomb crater reclamation. 24 The mangrove and wetland ecosystem support a rich variety of aquatic and avian fauna. 21. The latter were decimated with the loss of the forest, and are only just beginning to recover through 74 Annex 4 Page 5 of 8 efforts such as the establishment of the Tram Chin Reserve in the Plain of Reeds, to which the endangered Eastern Sarus Crane (Grus antigonesharpii) recently returned. 22. There appears to be a decline in Southern Viet Nam's offshore fisheries due to the loss of estuary habitat as a breeding and nursery ground. Hong (1986)estimatesthat between2.7 to 4.5 million kg of shrimp per year have been lost due to the defoliation of the Ca Mau peninsula.' At a conservativeprice of US$ 1/kg (1993constantprice terms), the cost of wetlanddeforestationmay be very roughly estimated at US$ 2.7-4.5 million per year or US$ 162-270per ha/year from the approximately 150,000 ha destroyed over 9 years (16,700 ha/yr). However, despite the 74,000 ha of forest that were replanted after the war, an additional 100,000ha were subsequentlycut for fuelwood, and cleared for agriculture and shrimp farming.2 6 Ecological Effects on Agriculture 23. The exact locationof the agriculturalareas targeted by US bombingactivities has not been released. However, extensive damage exists in selected areas of Quang Tri, Tay Ninh, and Gia Lai provinces. The persistent damage consists of unexplodedmines and bombs and bomb craters. It was estimated in 1976 that some 400,000 unexplodedbombs and 2 millionunexplodedshells remain buried just below the surface of Indochina.27 24. The process of land recovery involves clearing the land of unexploded munitions and levelling the bomb craters. It can take up to 500 hours of labor to fill a typical crater created by a 500 pound bomb.28 Disrupted irrigation systems and bomb destroyed sea-walls also necessitate reconstructionand soil reclamation. In Ben Hai district, QuangTri province, the removal of unexploded bombs and levelling of craters cost US$ 1,000per hectare in 1990.29 25. Fourteen percent of the herbicidemissionswere directedagainst cropland. These missions targeted the area between Ho Chi Minh City and Hui, concentratingon the provinces of Quang Tri, Quang Ngai, and Kon Tum. A single applicationusually resulted in completecrop failure. A total of 177,000 ha of upland crops and 59,000 ha of paddy rice were sprayed once or more.' In addition, perhaps 30% of Viet Nam's rubber plantationswere damaged by herbicides. 26. Longer term considerationin herbicideeffect on agricultureis its persistenceand mobility in the soil. Environmental insignificance (lack of effect on all but the most highly sensitive of subsequentlyplanted subspecies)was reached within2 months for the active ingredients in all herbicides used during the war." 27. There are several examples of completedestruction of agricultural lands and communities with land clearing tractors, althoughthere is no inventoryof the extent and locationof this land clearing. Specific examples can be found in the areas around Duc Hue (Long An province), Ben Suc (Binh Duong province), and also in the provincesof DongThap and Vinh Long. The current conditionof these areas is unknown. However, it is assumed that any regrowth is dominatedby Imperata cylindricaand, on higher ground, Pennesitum. Effects on Human Health 28. The wholesale bombingof the countrysidecaused many casualtiesand deaths. Long-term effects include loss of limbs and psychologicalcomplications. The most important and destructive herbicidal effect may have come from the occasionaldumping of entire payloads of herbicides, which - 75 Annex 4 Page 6 of 8 exposed limited areas to high dosages. This occurred some 50 times during the war, about 30 of which would have been agent "Orange".32 Vietnamesesources estimate that close to 2 million people were 33 Bomb and herbicide damage also led to a marked contaminated during the spraying operations. decrease in food resulting in increasedmalnutrition. Agent "Orange" accountedfor 60% of the wartimeherbicide spray operations. Its dioxin 29. content averaged 3.83 g/m3 , althoughcertainlots containedbetween 10 and 20 times this amount.4 The dioxin was more persistent than its carrier, having a half life of at least 3.5 years. If 170 kg of dioxir?' were introduced into former South Viet Nam in 1968, 1 kg of it would have been present in 1990(US estimatesof the volume of dioxin released over Viet Nam are range from 100 to 136 kg36). Dioxin can be conveyedto the food chain in other chemicals,through water, and through the air. The action of wind and water is expandingthe area of contamination. However, the severity of contaminationis declining through scatteringand decomposition. Elevatedlevels of dioxin are still measured in the Ailtin Southern Viet Nam. Persons exposed to agent "Orange" are thought to be at higher risk of cancer, adverse 30. reproductive outcome, immune deficiency,endocrine disorders of several types, neurologicaldamage, skin disease, and other health damage.3 ' Although there is documentedevidence of increased dioxin levels in Vietnamesefrom many parts of the country, no definitiveassociationhas been shown with the wartime application of herbicides. The process of testing human blood or milk for dioxin costs US$ 1,000 to 2,000 per analysis in 1993, making research prohibitivelyexpensive. In addition to cost, less than 15 laboratories worldwide have demonstratedability to perform dioxin analyses in human tissue. Unfortunately, as of yet, there is no clinical means for reducingbody burden of dioxins. Other than continuing to support research, there is little that can be done specificallyfor this problem. - 76 Annex 4 - Page 7 of 8 Endnotes: 1. Pfeiffer, E.W. Degreening Viet Nam. Natural History. November 1990. p. 38. 2. Warfare in a Fragile World. Military Impact on the Human Environment. SIPRI 1980.p. 79. 3. Dr. Vo Quy. CRES/FAO.March/April1992. 4. Warfare in a Fragile World. MilitaryImpacton the HumanEnvironment.SIPRI 1980.p.79 5. Westing,A. Herbicidesin War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 7. 6. Mr. Boi, SilviculturalExpert. Forest Inventoryand PlanningInstitute.Personalcommunication.Dec. 1993. 7. Harrigan,E.T. CalibrationTestof the UC-123MA/A45Y-1 SparySystem.TechnicalReportADTC-TR70-36. ArmamentDevelopmentand Test Center, Eglin AFB, Florida.p. 160. 8. Westing,A. Herbicidesin War, The Long-termEcologicaland HumanConsequences.SIPRI 1984. p. 5. The most commonlyquotedfigure is 72 mil. L, which includesCambodianand Laos missions. 9. Westing,A. Herbicidesin War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 6. 10. Westing,A. Herbicidesin War, The Long-termEcologicaland HumanConsequences.SIPRI 1984. p. 6. 11. Kemf, E. The Monthof Pure Light, The Regreeningof Viet Nam. London. 1990.p. 81. 12. Kemf, E. The Monthof Pure Light, The Regreeningof Viet Nam. London. 1990.p. 81. 13. Warfare in a FragileWorld. MilitaryImpacton the HumanEnvironment.SIPRI 1980.p. 79. 14. Warfare in a FragileWorld. MilitaryImpacton the HumanEnvironment.SIPRI 1980.p. 80. 15. Westing,A. Herbicidesin War, The Long-termEcologicaland HumanConsequences.SIPRI 1984. p. 9. 16. Dr. Khai, Vice Director of Ma Da Forest Enterprise.Personalcommunication.December1993. 17. Warfare in a Fragile World. Military Impacton the HumanEnvironment.SIPRI 19 8 0.p. 82. 18. Dr. Khai, Vice Director of Ma Da Forest Enterprise.Personalcommunication.December1993. 19. Dr. Khai, Vice Directorof Ma Da Forest Enterprise.Personalconmmunication. December1993. 20. Nghan,PhungTrung, 1968.Statusof Conservationin SouthViet Nan. In: Talbot, L.M. and Talbot, M.H. (eds), Conservationin TropicalSE Asia. (InternationalUnionof ConservationNatureand Natural ResourcesPublicationN.S. No. 10, Morges,Switz.), 550 pp. 2 pl.:pp. 519-522. 21. Pfeiffer,E.W. EcologicalEffectsof the Warin VietNam. Science, Vol. 168. May 1970.p. 518. - 77 - Annex 4 Page 8 of 8 22. Schecter et al. ChlorinatedDioxin and DibenzofuranLevels in Food and Wildlife Samples in the North and South of Viet Nam. Chemosphere,Vol. 19, Nos.1-6, pp 493-496, 1989. 23. Westing, A. Herbicides in War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 11. 24. Hoang Dung. Forestry Ecology and Planning Expert. FIPI-HCMC. Personal commnunication. December 1993. 25. Hong, Phan Nguyen. Effects of Herbicides on Mangrove Forests in the Ca Mau peninsula. Conmmittee10-80. Proceedingsof the Ilnd NationalSymposium.April 1986. p. 88. 26. O'Neill, T. The Mekong. National Geographic.Vol. 183, No.2. February 1993.p. 34. 27. Warfare in a Fragile World. Military Impact on the Human Environment.SIPRI 1980, p. 96. 28. Times, New York, 1972. Text of intelligencereport on bombingof dikes in North Viet Nam issued by State Department. New York Times (29 July 1972),p. 2. 29. Mr. Ha. National Institute of Agricultural Planning and Projections. Personal communication. December 1993. 30. Westing, A. Herbicidesin War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 11. 31. Westing, A. Herbicidesin War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 16. 32. Westing, A. Herbicidesin War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 15. 33. Dr. Dinh Quang Minh. Committee 10-80. Personal communication,December 1993. 34. Westing, A. Herbicides in War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 14. 35. Westing, A. Herbicidesin War, The Long-termEcologicaland Human Consequences.SIPRI 1984. p. 16. 36. Conmmitteeon the Effects of Herbicides in South Viet Nam. Part A. Summary and conclusions. National Academy of Science, Washington,D.C. 1974. p. 398. 37. Dr. Arnold Schecter. Personal communication.February 1993. Annex 5 - 78 - Page 1 of 8 VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES FOR A SOCIALISTECONOMYIN TRANSITION Hill Area Programs with EnvironmentalIMplications:A Review 1. The governmentof Vietnam (GOV) has been implementinga number of programs in the Hill areas of Viet Nam. Theseprograms were designedto address GOV's concern for land degradation in the Highlands, the poverty level of ethnic minoritypopulationslocatedin this region, and the security status of inhabitants bordering Cambodia, Laos, and China. This annex reviews the following three interrelatedprograms which have importantimplicationsfor the government: (a) (b) (c) Governmentsponsoredresettlement; Reforestation; Developmentof "barren hills." The lessons learned would be important for the design of projects to ameliorate the severe land degradationsituation in susceptiblehill areas. A: GovernmentSponsoredSettlementPrograms Background 2. Since 1961, GOV has encouraged the official resettlementof 4.8 million persons. This population redistributionprogram has four objectives: (a) to match human resources with agricultural resources, (b) to develop the agricultural sector of the economy, (c) to create opportunities for employmentin the agriculturalsector, and (d) to strengthennationaldefense. In the 1960sthe Democratic Republicof Viet Nam encouragedapproximately1.0 millionpeople to migrate from the Red River Delta to the Northern Midlandsand Highlands. Inexperiencecoupledwith inadequatepreparationforced many of the migrants to return to their former areas of residence. After reunification in 1975, and up until 1989, all migration was controlled by the GOV. The GOV population redistributionprogram can be separated into three distinctphases that met with varyingsuccess in comparisonwith its expressedtargets (see Table 1). Table 1: OfficiallySponsoredPopulation Redistribution- Planned and Actual Planned Actual (millions) (millions) Area Settled (1,000 ha) 1976-1990 6.6 3.9 752 1976-1980 4.0 1.5 709 1981-1985 1.0 1.3 6 1986-1990 1.6 1.1 38 Year Source: Center for Populationand HumanResourceStudies. - 79 - Annex 5 Page 2 of 8 3. Of the 2.4 millionpeople who were officiallyresettledfrom 1981through 1990, about 75 percent moved within their own provinces. Of the approximately590,000 people who moved outside their provinces(1981-89), 75 percent moved from the North to the South. The origin of this North-South sponsoredprovincial out-migrationwere essentiallyfrom two population-surplusregions: (a) Red River Delta Region (accountingfor about 58 percent), and (b) the North Central CoastalRegion (41 percent). For the former region, the primary destinationswere the Central Highland Provinces of Gia-Lai Kon Tum, Dac Lac and LamnDong; for the latter primary destinationsincludedGia-Lai Kon Tum, Dak Lac, (Central Highlands Region) and Song Be (Northeast of Mekong Region). The Northern Midland Mountain Regions, the Central Highlands, and the Mekong Delta had sponsored settlements almost exclusivelywithin their own provinces(see Table 2). Table 2: OfficiallySponsoredSettlement, 1981-89('000 Persons) Region of Origin Total North: Midlands and Mountains Within Province Outside Province 200 194 6 Red River Delta 356 88 268a/ North Central Coast 420 238 182a/ North Subtotal 976 520 456 South: South Central Coast 320 220 lOOb/ Central Highlands 164 164 Northeast of Mekong 343 309 34b/ Mekong Delta 450 448 2b/ South Subtotal 1,277 1,141 136 Viet Nam Totals 2,253 1,661 592 a/ Predominantly North-South. b/ Predominantly South-South. Source: Annex 1, Table 24. 4. In terms of balancinggrowth and envirornental impact, controlled migrationcan be said to have been quite successful. Pressure in the overcrowdedprovinces in the North was partly relieved; new settlers, especiallythose who movedto the agriculturallywell-endowedCentral Highlands, improved their standard of living; and the production of exportabletree-crop products (tea, coffee, cashew nuts) increased. On the other side of the balance sheet was the destruction of forests. During this period, however, most of the forest destruction was in better, level or less-sloped, hill areas which are suitable for agriculture. With the liberalizationof controlledmigrationsince 1988, however, the situation could change drastically. 5. Of the 3.92 millionofficiallyresettledVietnamesebetween 1976-90,about 46,000 families (207,000people) migrated "spontaneously". Sincepopulationmovementhad beentightly controlledprior to Doi Moi, most of this spontaneousmigration took place after 1988. This meant that perhaps about - 80- Annex 5 Page 3 of 8 20 percent of the resettlementwhich took place at the end of the decade of the 1980swas not officially sanctioned. These involvedprimarilythe movementof ethnicminoritiesfrom the Northem Midlandsand MountainRegion to the Central HighlandRegion. 6. From 1986through 1992,about 13,000primarilyethnicfamilies(65,000 people)comprising mainly Tay, Nung, and Yao from the North, illegallysettled onto about 13,000 ha in Dac Lac Province. According to provincial authorities, 6,000 ha of forests were destroyed for settlement in 1992 alone. Although the destruction of protection forests was quite limited, such trends clearly cannot continue withoutadverse environmentaleffects. Such movement,while uncontrolled,is usually not spontaneous. Most are relativesor friends from the home villages of existing residentsin the destructionareas. These residents either migrated formally in the past or, more commonly, came as laborers of state enterprises, in road construction, or through military postings. As word is sent back on "land availability" in these relatively more favorable areas, more unofficialmigrants are thus encouraged. The able bodied adults stake a claim by starting to cultivate "unused" land by gradually cutting down existing trees and, if possible, manuallyconstructingsmall irrigationworks. These activitiesare, in effect, undertakenby tacit agreement of the local authorities. If such a trend were therefore to continue, the pressures of deforestationon the remainingbiologicalresources would be devastating. Delineatingpriority areas for demarcation and protectionmust begin immediatelyand settlementin theseareas will have to be carefully planned to ensure that both developmentand joint protectionmeasuresare implemented. The Programs 7. Among the programs or sub-programsin support of Government'sresettlementpolicy, the one with the largest implicationfor forest degradationand soil erosion is GOV's Fixed Cultivationand Sedentarization Program. This program, administered by a Department for Fixed Cultivation and Sedentarization (DFCS) in the Ministry of Forestry [established in 1968 under Council of Ministers (COM) Decree 38/CP], is essentiallyreflected in the intra-provincialmigration given in Table 2 above. This is one of the most important programs targeted towards assisting the approximatelythree million population of shifting cultivators in the hill and mountain areas. The main objective of the program, which began in 1968, is to stabilize("fix" in one place) the cultivationof ethnic minoritiesand encourage socio-economicdevelopmentand improvedincomeactivities(includingthe provision of education,water supply, and health support services). 8. Other parallel sub-programsadministeredthrough the Provinces, state enterprises, and the Ministry of Labor, Invalids and Social Affairs pertain to the North-Southsponsoredresettlementto the plateaus of the Central Highland Region (given in Table 2 above). These are primarily the result of a "guided migration" drive which began in 1977 (COM Decree 272/CP) and were intended primarily to promote the establishmentof "new economiczones" for permanentsettlement of householdsfrom labor surplus provinces in the Northern Regionand provide financialsupport for cooperativesand state farms to invest in infrastructureconstructionand productionservices. The programalso providedopportunities for ethnic minorities to adopt permnanentsettlement, and additionalfinancial support was provided for their productive agricultural activities. The approach adopted was for GOV to first identify the low population density areas with good potential agricultural land (mainly in the plateaus of the Central Highlands) and target populationsurplus areas for promotionof resettlement. Mass media and notices at the provincial and district offices of the Ministry of Labor, Invalids, and Social Affairs set out the requirementsin terms of types of settlers needed. Preferencewas givento younger, able-bodiedmarried couples that: (a) were willing to face the difficultfrontier life, (b) had the backgroundor training which could fit the agricultural enterprisesthat were to be promoted, and (c) had some of their own savings to start a new life. Selectedfamiliesare given a payment for moving their household, a lot at the reception - 81 - Annex 5 Page 4 of 8 site and supervision to establish their agricultural enterprise 1/. In the earlier years (prior to the 1980's), return rates to the cities and as a proportionof refugee outflow was reported to be as high as 50%. 9. Elementsof the settlementprograms were modifiedas Governmentpolicy evolvedover the years--firstin 1982(COM Decree 184/HDBT)and especiallyafter 1989(COD Decree No. 72/HDBT)-when the program introduced land allocation to the population (usuallystarting with workers of state enterprises). They were given long term use rights (30-50 years) for agro-forestry and were also provided initial exemptionfrom agricultural taxes if they were practicing agro-forestry. Grants were given for up to two thirds of the cost of developinga new blockof land (up to a maximumof one million dong/settler family). Half of this cash grant must be used to purchase nursery items, tree seedlings,and "technical services" from the enterprise. The Results 10. Data for 1981-89 indicated that, with assistance from GOV, about 380,000 people voluntarily moved from the Red River Delta and Central CoastalRegions and 111,000 from Northeast of Mekong Region to the new economiczones in the high plateauof the Central Highlands2/. Forest, much of which is suitable for agriculture, was destroyed to grow cash crops (tea, coffee, pepper, sericulture/mulberry)and some subsistencecrops like rice and vegetables. Many settlers to Lam Dong province, for example, were chosen from the Red River Delta Provincesbecauseof their backgroundin sericulture. A numberupon resettlement,however, chose to grow coffee(which was less labor intensive and thus able to be tended by the women and children) while the able-bodiedmale members of the household made charcoal from nearby natural forests for more lucrative cash incomes. By and large, however, cash cropping in the settlementsin the Central Highlandplateaus took place on agriculturally suitable land and improved the livelihoodof the settlers. However, in the Northem hill areas, where natural forest areas are limitedand holdingsare more steeplyslopedand relativelysmaller in size because of populationpressure, commercialsuccesshas beenencounteredonly in some settlementareas (primarily the more accessibleNorthern Midlands)with the cultivationof trees yielding valuablenon-woodproducts (includingshellac, cinnamon,gum resins). Overall, based on the assessmentof the fixed cultivationand sedentarizationprograms, the predominiantproblem existing in the Northern hill areas continues to be unsustainableland use/farming practices. 11. From more than 20 years of implementationof the Fixed Cultivation and Sedentarization Program, 66 percent (1.9 million persons)of the original resettlementtarget (2.9 million)have adopted permanentsettlement,of which: (a) 30 percent (nearly0.6 million)may be consideredto be "successful" in that they are sedentarizedand cultivatingpermanentcash crops with "stable" income and little need for Governmentsupport, (b) 40 percent (about0.8 million)maybe consideredto be marginallysuccessful in that Government support for productionactivities is still needed, and (c) the remainderhave proved to be unsustainableeven with Governmentsupport (i.e., they continue to destroy the forest and practice slash-and-burnagriculture)3/. The unsustainableones tendedto be in the Northern Midlands/Mountain 1/ See Do Dinh Sam, NationalBackgroundPaperon ShiftingAgriculturein VietNam presentedat a workshopon 'Shifting Agriculture in Laos and Viet Nam, its social, economicand environmentalvalues to AlternativeLand Uses", Chiang Mai (Thailand),August 1992. 2/ Caroline Sargent, Land Use Issues, TechnicalReport No. 1 of the TFAP, Viet Nam (VIE/881037)1991. 3/ Do Dinh Sam, (or cit); 1992. - 82 - Annex 5 Page 5 of 8 region, while the "successful"ones tended to be in the "basaltic soil" areas of the Central Highlands where production conditionsare more favorable. The main lesson is that new settlementscannot be started in productivelyunsustainableareas. Choice of areas with good chances of success and careful planning for the developmentof prospectiveenterprisesmust first be undertaken. B: ReforestationPrograms The Vinh Phu Pulp and Paper Mill 12. Externally assisted forest development programs began in the late 1970s with the construction of the large Vinh Phu Pulp and Paper mill in Bai Bang, Northern Viet Nam under SIDA assistance. The mill initiallyused standingstocks of raw material includingbamboofrom home gardens and plantationsof "quick" growing trees (Stvrax and Mangletiaspps.) harvested from the mountainous areas fringing the Red River Delta. Since the early 1980s,however, the state enterprise responsiblefor procuring raw materials for the mill began establishingnew plantationsin the more accessiblelowlands and along transport arteries to ensure future supplies close to the mill 4/. The conflict in land use resulting from this move reduced the area of open access firewood gathering areas in the midlands, increased the pressure on more vulnerablehill land, and resulted in the illicit cutting of trees in the newly reforested plantations. Thus, trade-offs between industrial developmentand household use have to be taken into account in designingany commnercial reforestationprogram. Allocationshould be given to the loss of use of what is ostensibly "unused" barren land; otherwise, the success of the commercial reforestationprogram would be compromised. 13. SIDA's mill support program included the establishment of a Plantation and Soil Conservation(PSC) Project and, withinit, an FAO-assistedsubprojecton Forest, Trees and People(FTP) to focus on the socio-economicforestry aspects with greater emphasison the role of rural households. 14. Evaluationsin the late 1980sfound that the PSC project was still biasedtowards maximizing production from intensive forest plantationsto the detriment of the restorationof longer term fertility of the soil 51. The PSC project succeeded, however, in providing tree seedlings over and above the industrial program requirementsto enable the populace in need of tree products to grow their own trees instead of "plundering"the industrial plantations,but the concerns of the affected householdswere not fully taken into account. The promotion of reforestation remained focused on a specific technology transfer approach (monocroppingwith primarily Eucalyptusand Acacia spps.) on specific sites ("barren hills" on the lower Midlands)rather than on identifyingand helping farmer groupsto tackletheir problem of fuelwood shortages. This rather modest impact in successfullyreaching rural householdsstems from the close association of social forestry activities with the large scale industrial program and the rigidity of planting guidelines set at central, provincial,and project level. Without a program that explicitlytakes into account the interest of affectedstakeholders,commercialagroforestrymay not be sustainablein these resource-poor areas. 15. Unrealistictechnologyrigidities in the system are also counterproductive. The FTP project for reforestation of denuded high areas worked essentially with cooperatives. Despite the potential 4/ See Julian GayfarandEdwinShanks,'Northem Viet Nam Farmers, Collectivesand the Rehabilitationof Recently ReallocatedHill Land", ODI Social Forestry Network Paper No. 12a, Summer/Winter1991. 5/ See SEFDA, Viet Nam - Plantation and Soil ConservationProject, Review Mission Report, November 1988. - 83 - Annex 5 Page 6 of 8 opportunityfor a diversity of farmer actions, uniformityby and large prevailed--determinedprimarilyby the interest of the cooperatives. Besides the required mono-croppedtree species (eucalyptus), guinea grass was planted by all farmers (even those withoutcattle). It tested modelson agro-forestry and soil conservation (e.g., Fanya Juu from East Africa) which required terrace run-off construction involving substantial earth moving. The FTP project experienced difficulties in implementationbecause the approach was totally new, highly managementintensive(by local standards)and, where successful, has proved to be difficult to sustain. Also, local innovationswhich could be more successful(e.g., based on elephant grass and other vegetative stabilizationtechniquewith bamboo run-offs, the excess being channeledto fishponds)were not adequatelyexploited. Furthermore, the extensionsupport and training to be provided by Governmentwere insufficientwith project tasks added on to district staffs' regular duties. 16. While it was not possibleto far exceed its original mandateunder limitedbudgetconstraints, SIDA has, since 1989, been movingin the right directionwith focus on land use/land management,farrn level forestry support and improved forestry research and training (including the training of extension workers in participatory rural appraisal, which permits the project to better appreciate the different conditions faced or enunciated by the farmers). Land allocation, security of tenure, and appropriate technology transfer remain the primary challengesto be faced in these projects. The World Food Program Hill Area ReforestationProjects 17. The project activitiesof the World Food Program (WFP) in the hill areas, which beganin 1976, (a US$ 17.1 million project) faced similar logisticaland farm level difficulties which have been taken into account in its present phase which began in 1989. The project's primary objective is to establish 70,000 ha of concentrated forest plantationsand 11,000 ha of dispersed plantations in the midland areas of Bac Thai, Hanoi, Ha Son Binh, and Vin Phu provinceswhere, in general, the ethnic minoritiesare integratedwith the Kinhs. It is essentiallya reforestation/afforestationproject emphasizing the replantation of eucalyptus, acacia, manglieta, melia, styrax, and bambooon severely eroded areas to provide additionalfuel and pole wood, reduce the stress on natural forests, and providefor subsistence and local market needs. It's main advantageis that it is being implementedin an environmentthat will facilitate the reallocationof forestry land from state entitiesto individualfarmers. In principle, this type of land allocation should address one of the most important constraints to successful reforestation programs--thelack of incentivesto increase efficiencyand to protect and adequatelymanage established plantations. Project participantsobtain long-term leaseholdswhich are officiallyrecorded as land tenure deeds. Some problems have been encountered with these issues, especially with respect to ethnic minorities. Because of the chronic structural food deficitsituation in the project areas, and with project beneficiaries comprising poor householdswith very limited capacity to buy additional food, WFP food distribution is a key ingredient for project success. Project proponents contend that the WFP food distributed would not only have little effect on food productionincentives,but would providethe stability which would enable the household to take the risk of adopting the cash cropping systems or erosion control measures being promoted. 18. A number of local governmentinitiated programs have also been implementedin parallel with foreign assisted programs, often in the same villages and in a number of instances covering duplicating beneficiaries. Households were often confused by the differences in obligations and conditionsrequired by each of the projects. Provincialauthoritiesshouldensure consistencyin programs, especially if they are being implementedin the same villages or districts. - 84 - Annex 5 Page 7 of 8 The "Barren Lands" Regreenin, (Decree 327) Program 19. A reflection of the high priority accorded to the developmentof barren lands in Viet Nam is the promulgation by the Council of Ministers, of a Decree (COM Decree 327) in September 1992 which sets out "Major Guidelinesand PoliciesTo UtilizeUnoccupiedLand, Barren Hilly Areas, Forests, Denuded Beaches and Waterfronts". A ten year program, coordinatedby the State PlanningCommittee (SPC), was launchedin 1993to implementthis decree. The provinces,oftenjointly with centralagencies (essentiallyfrom the Ministriesof Agricultureand Food Industries, Forestry, and AquaticProducts)have proposed about 1,800 projects for implementation. 20. The primary goals of the highland portion of the Decree 327 program are to "stabilize" settlement villages and sedentarize itinerant shifting agricultural population by developing the underutilized barren uplands throughoutthe country with emphasison linking agriculture, livestock, and forestry and on increasing the protection of reserved forests and head watersheds. The focus would be on households as the basic production units with particular emphasis to be given to production technologiesor products for manufacturingindustries,and on environmentalprotection. Guidelineswere given for size of projects and plots to be allocatedto householdsby subsector (e.g., industrial tree crops, agro-forestry enterprise, livestockenterprises),investmentfunding,and organizationalstructure, including the role of the key agenciesto plan, approveand implementprojectsto be supported. Annual commercial timber production quotas/targetswere reduced from about 1.0-1.3 million m3 /year to 800,000 m3 . (See Annex 6 which sets out the decree). 21. From initial observationsof this program in mid-1993, a number of concerns are worth noting. The first relates to the appropriatenessof the stated goal of increasing 'the production of raw materials and commoditiesfor industries' in an environmentwith inadequate infrastructure and which presently provides, at best, marginal food security for a still rapidly growing population. This, in turn, raises the questionof land suitability,and more importantly,land availabilityfor the envisagedexpansion of industrial cropping. With planners working from clearly inadequateland resource data bases it is possible, even probable, that the assumed barren land resource is already extensively utilized within traditional agricultural production systems for which few alternativeshave been successfullydeveloped, at least within Viet Nam. A clearef understandingof the constraintsto successfulimplementationat both the program administrationand affected household levels should first be sought before technology or investmentmeasures are contemplated. 22. The second major concerninvolvesthe level of farmerparticipationin resourceuse planning under the decree. While such intent is indicated in the decree, particularly Articles 2 and 3, it is contradicted by Article 7 which states that "in the immediatefuture, projects of this kind (i.e. agroforestry) should be based on agro-forestry services directed by the state", and by Article 12, which intimates that the program (now being finalizedby SPC and planned largely withoutfarmer participation) would be "from now to the Year 2000... to plant and reforest the unoccupiedcoastal lands, hilly areas and mountains", which may leave little scope for additional investment planned by and with rural communities. 23. These perceived "hooks" in the programwere bome out to a considerabledegree by mission discussions with provincial staff and national planners. Although a detailed breakdown of the 1993 Decree 327 program was not available to the mission, infornation collected from a variety of sources indicates that the projects, apart from those involvingNew EconomicZones, are: - 85 - Annex 5 Page 8 of8 * typically linked to state enterprise managed programs with rural families mainly working under share farming agreements; * directed to a considerable degree toward the refinancing of ongoing, though possibly reoriented, state enterprise projects; * focused mainly on production investment(70 percent in the case of MOF projects and possibly more with MAFI livestock projects) with only limited investment in rural infrastructure; * managed largely by state enterprise employees transferred to Decree 327 project managementwith its associated incentivepaymentsand performance bonuses. A "zero-based" budgeting approach, whereby all projects have to be rejustified on the basis of clear criteria for selectionand adequatejudgment on feasibility,should be introduced. 24. The 1993 Decree 327 investmentprogram was budgeted at US$ 68 million with US$ 45 million allocated as of May 1993, and approximatelyUS$ 7 million disbursed across the countries 53 provinces. The budget is about 8 percent of governments' greatly expanded 1993 budget deficit, estimated at US$ 857 million. The 1993 Decree 327 program budget allocationto the three principally concerned Ministries, namely Agricultureand Food Industry, Forestry, and Fisheries (AquaticProducts) representsabout40 percent of their total annual budget. The other principalparticipantis the Committee for Ethnic Affairs and Mountain People, working through the Department of Fixed Cultivation and Settlement(DFCS). DFCS has already settled 500 of the estimated2000 itinerant communitiesinvolved in shifting cultivation and had planned to commencesettlementof 400 additionalcommunitiesin 1993. Their 1993 Decree 327 budget allocation of D 100 billion (US$ 9.5 million)provides around 6 percent of their estimated requirementof US$ 2,000 per familyfor effectivesettlement. While full details of the investmentprogram were not availableto the mission, it was evident from discussionswith DFCS and provincial authorities that budget allocations fell well short of estimated requirements without correspondingreductions in planned outputs. By the end of 1993, however, about D 520 billion (nearly US$ 50 million)were spent as follows: (a) roughly D400billion on capitalinvestment--for1122projects comprising400 projects (about D130billion) in forestry, 258 projects (aboutD 90 billion) in agriculture, 30 projects (D 40 billion) in fisheries,434 projects (about D 90 billion) in sedentarizationand settlement support; and (b) D 120 billion on administrativeand operating costs. 25. In summary,these projects, mostlyplanned withoutsufficientinformationfor prioritization on the basis of land use and capabilityclassificationor enterpriseprofitability,are typicallyongoing ones that had completiondates set years ahead. Eventhen, with widespreadcoverageto virtuallyall provinces and insufficientresources (both financialand human), a lot of the critical input deliveries(e.g., seedlings for trees) were short and initial investmentsremain uncompleted. Becauseimplementationhad not been linked to priority needs and to fulfillingprerequisitesfor success(both technicaland organizational)there is a risk of resource wastage as resources are spread too thinly to achievethe stated objectives. There is a very real risk that the 1993and 1994ongoingprograms will absorb a growingamount of Decree 327 finances in coming years, thereby reducingopportunitiesfor financingnew and better plannedprograms. - 86 - VIET NAM Annex 6 Page 1 of 6 ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES A SOCIALIST ECONOMY IN TRANSITION DECREE OF THE COUNCIL OF MINISTERS . No 327 Master guidelines and policies to utilize unoccupied land, "barren" hilly areas, forests, denuded, Beaches and Waterfront PRESIDENT OF THE COUNCIL OF MINISTERS With reference to the laws to form the Council of Ministers, dated July 4, 1981 The plan for the next 10-15 years lays the groundwork to restore denuded or "barren" hills and mountains, to protect the environment and forests and to exploit the potential of unoccupied land in the hilly regions, denuded beaches and waterfronts in order to increase the production of raw materials and commodities for industries. It will also lay the groundwork to divide the land, settle the population, link social and economic needs, as well as stabilize and raise the material and spiritual standard of living in the new economic zones, in order to stimulate the residents to increase their production efforts and consolidate the national security. HEREBY DECIDED: Master Guidelines: Article 1. According to the strategy for economic and social development to the year 2000, all government levels and branches must mobilize their efforts and financial resources to participate in the projects using the unoccupied lands, denuded hills and mountains, forests, beaches and waterfronts. The provinces in which these are found must develop projects to fully utilize the land within their territories;s the others must mobilize their inhabitants to participate in the projects in the neighboring provinces. Article 2. Projects must correspond to the investment capacity of the people and must be related to dividing the land and settling the population in the frontiers. These must have priority, along with those that can have an impact in the near future. Projects for existing forests and farmlands, including those of the military, must be of a scope similar to that of the undeveloped areas. The forest, livestock and agriculture projects must include a production structure and be closely linked to the forest, agriculture, industrial and service sectors, as well as to commodity production, the processing industries and domestic and external markets. Further, it is necessary to increase the area of protected and reserved forests and head watersheds, and to clearly define where exploitation of lumber, firewood, or other forest products is prohibited or permitted. - 87 - 87 ~~~~~~~Annex 6 Page2 of6 Article 3. Households are considered the basic production units; state enterprises or collective economic units are supports on which to build; the "garden economy" must be developed for households. Close links must be made between households and the community, as well as between collective and state-run enterprises so as to expand production, protect the interests of each household; the Government and collective units must carry out their obligations; economic development must be linked to expanding social welfare; national defense and security must be ensured; and rural areas must be developed. Article 4. It is important to stabilize villages where the land has been divided and the population settled as well as to undertake this process where it has not yet occurred. Where the populations are still nomadic and burn and destroy the forests for cultivation, they must be encouraged to develop farming settlements, plant trees, raise cash and food crops and livestock. Article 5. The design and implementation of projects that focus on production should incorporate technical advances with manufacturing industries, consumption (of the products manufactured) and environmental protection. POLICIES A. Land and forests Policy to hand over the land and forest Article 6. Afforestation schemes: These are designed to preserve and exploit (for production) the hilly areas, mountains and beaches, and protect, care for and replant forests of all types. Each household (including those already settled) will be given a certain area of land/forest to replant, protect and tend. This will occur according to priority orders, on the funding available for land, on the capacity of each household to work the land, on local living conditions (including those of newly settled families), on the investment capacity of the State, and on the labor and capital available from the economic entities. The total area for each project is 5,000-10,000 hectares, depending on the type of project envisioned, and will be equal to a commune or village in the highlands, in order to form the basic administrative, economic, social and national defense unit that would be suited to the investment capability of the Government and people. With regard to projects to extract resin from pine forests (both from forest and industrial trees), each should be 3,500 hectares. Each household will be given a certain area of land (according to its capacity to work it and the availability of investment capital) to replant, manage, protect, and prepare for productive use. In addition to these areas, each household (according to its labor potential) will be given additional arable land on which to plant short and long-tern -88- Annex Page3 of6 industrial crops, as well as food crops, out of which each household is allowed to farm up to 5,000m2 for its own use and a piece of pasture land for breeding purposes. Article 7 With regard to the projects to plant industrial crops such as rubber, mulberry (for silk), and fruit trees, as well as coffee, tea, sugar cane and cotton, the size of each project will be based on the size of the new commune. Each household will be given areas to plant the crops (mentioned above), the size of which will depend on its capabilitiesand the availability of investment capital. Households will have the use of these areas for a long period and can appropriate 3000m2 for their own agriculturaluse. In the immediate future, projects of this kind should be based on agro-forestry services directed by the State . In unoccupiedbarren, land, there is potential to expand such projects, but they should first be carefully formulated and prepared. Article 8 Within the livestockbreeding projects developed at the commune level, each household will be given land to plant fodder or to raise animals. At the same time, each household will be given land on which to develop short- and long-term industrial crops, food crops and to cultivate a garden. Article 9 For projects involving the use of barren beaches and those devoted to fish farming in areas of about 700 hectares (which could hold a commune), each household is given some land to raise shrimp, crabs and seaweed and 700m2 to cultivate. The State will invest in and assist the building of infrastructure, and will be reimbursed in discounted installments . Each household will finance the infrastructure for the fish farming through its savings or with bank loans. The investment needed to reclaim small beaches and waterfronts of less than 700 hectares will come from the local authorities or be given to households. Investment Policy Article 10 The investment capital provided by the Government to develop vacant beaches and hilly areas (forafforestation,farming,human settlementsand development of new economic zones) is from the following sources: (a) the Government budget, (b) forest resource taxes, foreign aid and loans, and private investment from entities and individuals.In particular, the forest resource tax will be targeted for investment in forestry programs. Of the total funds provided, 60% will be spent for the construction of infrastructure, for scientific and technical facilities, for public welfare services, for afforestation,for the planting of the reserve and special use forests, for the national genetic gardens, for resettlement of original residents, and for the first six months after land clearing.This capital will be directly invested with the project recipients and need not be reimbursed. The remaining 40% will be loaned to households without interest. Households will be expected to begin -89- Annex 6 Page 4 of 6 repaying the loans when the items are produced; terms of the loans will be defined according to the type of crops being produced. Households entering new economic zones will be allowed to transfer the rights to the cultivated land and the residences being left behind in order to accumulate more capital to invest in the new locale. The works of the new projects will not be obligated to keep aside 10% of the investment capital (for use by Government) . However Ministries managing the projects will be allowed to take 5t-6t of the total investment capital to use for extension services, technology transfers and management efforts. Article 11 The Government strongly encourages the development of commercial businesses, stockholding companies, corporations and private companies including joint ventures between companies or individuals and foreign entities, to invest in agricultural cultivation and livestock breeding in newly developed lands. These economic units will use undeveloped lands, hilly areas, beaches and waterfronts in a manner that is suitable to the land in each area and the investment capacity of each business (whether plantations, farms, etc.). Organizing, carrying out: Article 12 From now until the year 2000, the Government has reserved a certain amount of capital to be invested each year for a program to plant and reforest the unoccupied coastal land, hilly areas and mountains. The program will begin in 1993, so as to actively prepare for 1994. SPC will determine in the near future the investment level for this program and will submit it to the Council of Ministers and National Assembly by the end of 1992. Article 13 The Ministry of Labor and the Ministry of Social Affairs are assigned the task of studying and making an early report to the President of the COM on the subsidy policies for transporting the households to be moved, temporary lodging, food and the cost of clearing the land in the first six months, to encourage the process (moving the households) and build the new economic zone. The policy to cut or exempt taxes must be carried out according to existing laws. The Ministry of Finance will prepare the necessary amendments and additions to the draft version of the Agricultural Tax Laws to be submitted to the douncil of Ministers and the Congress. Article 14 Scientific and technical cadres, as well as managerial cadres who execute the projects, extension services and technology transfers will be given incentive salaries, especially if located in the highlands. If the projects are effective, they will be awarded bonuses. The Ministry of Labor and the Ministry of Social Welfare are mandated to meet with other ministries to report to the Chairman of the Council of Ministers this matter. -90- Annex6 Page5 of6 Article 15 The primary ministries, in conjunction with the related ministries and agencies, must complete by the end of January, 1993 the organization plan up to the year 2000 for the agricultural, forest and maritime programs that will be the basis of the development plan of the projects described above. These ministries will also directly assist the provinces, districts and forest and farm camps to develop a number of pilot projects related to agriculture and forests by the end of 1992, so as to be ready to invest in 1993. The projects described above must be considered carefully and be economic. But projects with an-Qfficial plan and those that entail simple repairs under the technical cadres approval authority need not be designed again. Article 16. The Ministries of Agriculture, Forestry and Aquatic Products, along with the Provincial People's Committees and Central Cities' People's Committees should select the project directors and managers and transfer some existing agriculture and forest camps to the nationalized businesses based on Decree NO. 388-HDBT of the Council of Ministers. This task must be completed in the first quarter of 1993 so it can be used as a guide for the family units' production efforts. Article 17. examine the projects. The following authorities have the responsibility to The chairman of the Council of Ministers will evaluate and approve largescale projects in many provinces. Ministers of authorized ministries will evaluate and approve projects related to their ministries, and the projects to raise the marine products in the areas of over 700 hectares. The chairman of the Provincial People's Committee will be responsible for examining the important aspects of the projects. - The chairman of the People's Committee of Provinces and Cities that belong to the central authority will be responsible for approving the project (in that province) and the projects related to the existing agricultural and forest camps which are under the provincial management. The chairman will also assume the management of all projects to be carried out within the province. - Two national science centers and the State Science Committee are responsible for inspecting the details of the projects that relate to science. Article 18 The State Planning Committee(SPC) will coordinate with the Ministry of Finance to examine the projects that need to be approved by the president of the Council of Ministers and to inspect the important aspects of some projects to be examined by the ministries and the People's Committee of provinces and cities. SPC will put together all policies and investment plans of the projects for 1993 to be submitted to the COM. It will also prepare the plan for 1994. Once the plans are approved, the responsible ministries and localities will distribute the funds for the projects. The Ministry of Finance will inform - 91 - Annex 6 Page 6 of 6 the treasury to issue the funds directly to the project managers and to provide loans to the project managers and households, based on the plan for each project. Article 19 In order to meet the needs of the projects, The Ministry of Labor, Veterans and Social Affairs is responsible for developing the policy to move workers and the population, for the policy with regard to the cadre and for the policy to manage and distribute the investment capital, in order to meet the needs of the projects. Article 20 The ministries and Government committees that are related to the projects are responsible for selecting the expert cadres to undertake the projects, to promulgate (on time) the policies and guidance and give orders to agencies and those who work under them, The Comrade Special Correspondent to the Council of Ministers is responsible for helping the Council and the President coordinate the effort between the branches and localities to inspect, direct and suggest the measures to carry out this resolution. - 92 - Annex 7 Page 1 of 11 VIET NAM ENVIRONMENTALPROGRAMAND POLICYPRIORITIES FOR A SOCIALISTECONOMYIN TRANSITION WatershedErosionImpact and Costs:The Da Watershed Summary 1. This analysis examinespotentialsoil conservationprojects in the Da watershedof Northem Viet Nam. The Government of Viet Nam (GOV) is eagerly promoting soil conservation projects for two reasons: (a) there is an abundanceof degradedland in the watershed,and (b) there is mountingconcem about the high sedimentationrate of the Hoa Binh reservoirat the base of the watershed.The economic impact of introducing four soil conservation measures (grass strips, earth bunds, agroforestry, and terracing)is simulatedwith a computermodel.Results indicatethat over the next 30 years, erosion from upland farming activities will imposecosts of about 70 milliondollars on lowlandfarmers and reservoir users. All of these conservationmeasures increasetotal net benefits of the affected parties. Because of their high initial cost, it is unlikelythat any of these soil conservationinitiatives-with the exceptionof possibly vegetativemeasures--willbe adoptedwhilethere is an abundantsupply of 'openaccess' land. Introduction 2. Investmentsin soil conservationare particularly importantin the context of the GOV's recently promulgateddecree 327. The decree sets out "MajorGuidelinesAnd PoliciesTo UtilizeUnoccupiedLand, Barren HillyAreas, Forests,DenudedBeaches,and Waterfronts."The State PlanningCommittee(SPC) is coordinatinga 10 year program to implementdecree 327. The budget allocation, although equivalentto nearly 40% of the total budgets of the Ministryof Agricultureand Food Industries(MAFI), Ministry Of Forestry (MOF), and the Ministry of Aquatic Products, amountsto only US$ 70 million.About 1,800 projects have been proposed for implementation.Given the financial constraints currently faced by the GOV, cost effectivepoliciesand projectsfor supportmust be identified. Background& Methods 3. The computermodelused to examinethe soil conservationmeasuresin the Da watershedhas three interlinkedmodules:(a) a core which simulatesuplandagriculture,(b) a lowlandmodulewhich simulates runoff damages, and (c) a reservoir module which simulates sedimentation.Constructionof an erosion simulation model requires extensive specific informationabout the relationshipand interaction of the system's components. For Viet Nam, much of this information is either unavailable or inaccessible. Thereforethe modelis createdfrom missionobservationand secondarydata. Where necessary,'best guess' estimatesare made. 4. The core of the modelis based on upland croppingpatterns in the Da watershed,which includes2 millionhectares of fallow,250 thousandhectares of upland rice, 150thousand hectares of maize, and 100 thousand hectares of cassava. The croppingrotation is typically 8 years of fallowfollowedby three years of upland rice, and then 3 years of maize or cassava. Fallow land is an importantsource of pasture and fuelwood.Initial yieldsaverage 1000 kilogramsper hectarefor rice, 850 kilogramsper hectare for maize, and 12 tons per hectare for cassava. Yields decline by roughly a third with each successive year of - 932 93 Annex 7 Page2 of II cultivation.Upland rice cultivationexpands at the rate of populationgrowth. Erosion in rice and maize fieldsis 100 tons of soil per hectareper year,and 200 tons of soil per hectareper year for cassava. 5. Runoff feeds into the lowland component of the model. Lowland farmers control runoff by constructingsilt traps at the foot of slopes (Truc, 1990).In narrow valleysthe upper most paddy is left to impoundrunoffand sediments.The accumulatedsedimentsare dug out and carried back uphill in shoulder basketsto spread on the fields.This is done,despitethe heavyhumanlabor involved,becausethe mud adds fertilityto the depleteduplandsoils. Since littlegeneralizableinformationis availableabout the amount of lowlandcrops destroyedby waterrunoff or the volumeof soil that is capturedin silt traps and carriedback uphill, two assumptionsare made: (a) one hectareof lowlandrice is destroyedfor every 5,000 tons of soil eroded,(b) silt traps capture 10% of the soil lossesand one manday of labor is requiredto dig up one ton of sedimentand carry it back uphill.The opportunitycost of one hectareof lowlandpaddy is US$ 200 per year. 6. Sedimentationoccurs when runoff reaches the Hoa Binh reservoir. The reservoir has three purposes: (a) flood control, (b) electricityproduction,and (c) irrigation.The major benefitsfrom the Hoa Binh hydroelectricfacility are an increase in downstreamwater flows in the dry season and a decreasein them in the wet season. Prior to dam completion,floodingdestroyed 1,800 hectares of lowland crops annually. The Hoa Binh hydroelectricplant is expectedto have a capacity of 1,920 megawatts upon completionat the end of 1993.Annual power productionis 8,402 gigawatt hours and the load factor is 50% (The World Bank, 1993). The cost of electricityis US$ 0.06 per kilowatt hour (The World Bank, 1993). Forecasts indicatepower demand for the regionwill increase 1% to 2% per year. The command area irrigatedby the reservoiris estimatedto be 1000hectares. 7. Identificationof the precisesource of sedimentis impossiblebecauseapproximately45% of the Da wvatershed is in China.Studiesshow that 70 to 80% of the total sedimentflow originateswithinChina(The WorldBank, 1993).The averagesedimentdeliveryratio in Viet Nam is 20%, meaningthat out of 100tons of eroded soil, 20 tons makes it into the river system. Reservoircapacityis 9 billion m3 and the trapping efficiency is 80%. Sediment deposition into the reservoir is 42 million m3 annually. This estimate, althoughcrudc, providesa baseline for calculatingthe volume of sedimententeringthe reservoir due to barren landagriculturalactivities. 8. A general lack of informationabout the reservoirmakes it is necessaryto assume a relationship between reservoirbenefitsand reservoircapacity. This relationshippresumesthat a decrease in reservoir capacity leads to an equivalentdecrease in reservoirbenefits.This assumptioncan be changed as more informationis gatheredabout the designand shape of the reservoir. 9. Each componentof the model has a cash flow modulethat is discountedat 10% over 30 years. Crop budgets for uplandrice, maize,and cassavawere preparedon a per hectare basis (Table I). The cost of unskilledlabor in Hanoi is about US$ 0.75 per day. Althougha near zero shadowpricefor labor may be justified in the typical upland areas of the Da watershed,the opportunitycost of labor in Son La and Lai Chau is assumed to be US$ 0.25. Labor utilization rates are a function of yields and declineas yields decline.Crop expensesare assumedto remainfixedthroughoutthe croppingcycle. Pricesare US$ 0.1 1/kg for uplandrice, US$ 0.I0/kg for maize, US$ 0.034/kgfor fresh cassava(NIAPP, 1993). - 94 Annex 7 - Page3 of 11 The cash flow modulestake the followingform for the status quo situation: (a)Farmnernet benefits =30 1=I Rie zc. =l t=l 11 .=, 30 (b)Lowland farmer benefits= E t,, (revenues- expenses) (where d = discount rate, t = periods) (1 + d) (soil x %trapped x wage) + ( soil ) x avg darnaged production tons / ha (1+ d)' (C)Reservoiruser benefits E (hpower.+irrigation+fld. control)x (-(factorx(l-rsvr. ,-I capacity))) (I +d) These results are used to calculatetotal net benefitswiththe followingequation:1 (d) Total net benefits= Farmernet benefits+ Lowlandfarmerbenefits+ Reservoiruser benefits) 10. In terms of mitigationmeasuresat the upland farmer level,this analysis restricts itself to four soil conservationalternatives:(a) grass strips with mulching,(b) earth bunds, (c) terraces, and (d) agroforestry. Since no informationwas available at the time of this study on the impact of conservationmeasureson erosion rates and yield levels in Viet Nam, a literaturereviewwas conductedto identifyresearch findings from other countries with similar climates and soil conditions.The results from the review are used to estimatebaselineparametersfor the impactof conservationmeasureson soil loss and agriculturalyields. 11. When compared to clean cultivation,grass strips with mulching reduces erosion rates anywhere from 8-96%, dependingon slope and land use. In additionto reducingerosion, mulching increases crop yields from 24-31% for upland rice, 10-188%for corn, 33% for cassava. Vegetativestrips and mulching are almostas effectiveas structural approachesin controllingerosion.A conscrvativeestimatefor the Da is that vegetativestrips and mulchingreduceerosionrates by 20%, and increaseyields35%. 12. Earthen bundshavconly a limitedlifcspan of 3 to 5 years (Humi, 1982 and Marston, 1983).They decreasesedimentyields46% on wcll-structuredsoils in comparisonto un-bundedplots (Sheng, 1981)and have been shown to decrease erosion rates 32% in Indonesia.Constructionof banks alone has failed to show any significantor stable increase in yieldsat ICRISAT,however,at other locationsin India yieldsof com increased65%. As a base case for the Da, earth bunds are assumed to reduce erosion rates by 30% and to increaseyieldsby 25%. 13. Terraces havebeen foundto decreaseerosionrates on slopesfrom 9% to 25% anywherefrom 20% to 91%. In Indonesiaterraces have been found to increase corn yields 34-38% and rice yields 18%. The base case assumptionsfor the Da are that terracesdecreaseerosionrates 40% and increaseyields 15%. 14. Agroforestryexperimentsin VietNam have shownthat this measureincreasesyields in coffeeand tea plantationsan average of 18-25%.Agroforestryis excellentat reducingerosion with field experiments in Vietnamshowinga decreaseof soil loss of 62-77%under coffeeand tea. For the purposesof the model, it was assumedthat this measureincreasesyieldsby 20% and reducederosion60%. l Pleasenotethat incremental benefitof a conservation measureis the totalnet benefitwiththe releventmeasure minus total net benefits of the status quo situtation(see table 3). 95 Annex 7 Page4 of 11 15. Soil conservationcost estimates are presented in Table 2 These estimates are separated into constructioncosts and labor costs. Grass strips and mulching,with an initial cost of US$ 88, are less expensivethan the structural measures.Expensesincludethe additionallabor spent cutting the grass strips and using them for mulching.In the initial year, constructionand labor costs are high for both earth bunds and terracing because of the need to build the retainingstructures. Outlays range around US$ 300 per hectare for bunding, US$ 375 for agroforestry,and US$ 500 per hectare for terracing. These figures accord well with the costs of these measures in World Bank projects. Mulchingand grass strips require US$ 15, and earth bunds,which are unstable,requireUS$ 25 in annualmaintenanceand replacementevery 5 years. Terraces requireUS$ 50 and agroforestryUS$ 40 in annualmaintenance. Results and discussion 16. The modelis most sensitiveto changesin the assumptionof the wage rate. The residentsof the Da are subsistencefarmers and have little opportunityto eam cash wages. The greatest uncertainties in assessing reservoir user costs are sediment yield, bulk density, and suspendedsediment trapped by the reservoir.Since the capacity of the reservoiris large comparedto the rate of sedimentation,sedimentation has a relativelysmall overall effect on reservoirbenefits.This findingis inconsistentwith the alarm being soundedby GOV officials. 17. All of the conservationaltemativesincreasestotal net benefitsof the parties using the watershed. Of the four management altematives modeled, agroforestry provides the greatest benefits to lowland farmers and reservoirusers. Grass strips and mulchingprovide the greatest benefitsto upland farmers. Results (in millions of 1994 US$) from three simulationsof the managementaltematives are presented below: AffectedParties ExistingCasc .____________ Incremental Ou comcof anaeententAltemniatives GrassStrips EarthBunds Terraces and Mulchine FarmersNet Bcncfias LowlandFarmerBenefit RcscrvoirUsersBcnefits 695 -66 -t.6 131 8 0.2 93 12 0.3 56 16 0-.3 TotalNetBcncfits 629 139 105 72 Sourcc:Table3. Conclusions 18. The introductionof soil conservationtechniquesto the upland famers of the Da watershed is a 'win-win'policy because all three of the affected parties benefit.The greatest benefitscome from the grass strips and mulchingaltemative.This is also the most likelyaltemativeto be adoptedby the uplandfarmers because it has the lowest initialstart-up costs. 19. The lowlandfarmersand the reservoirusers are inequitablybearingthe costs of erosion.Therefore they should, in theory, be compensatedby the perpetrators of the damage. However,since the farmers do not bear the costs of the damage, they have little incentiveto take them into account in decidingerosion controlmeasures.The lack of informationon the source of erosionand the distance sedimenttravels means that it is unlikelythe perpetratorsof the damagecan be identifiedin practical or operationalterms. - 96 - Annex 7 Page5 of 11 20. An analysis of soil conservationalternativesis not completewithouta discussionof land tenure and property rights. Land tenure issues are of concern for three reasons: (a) tenure effects technology adoption rates and profitability,and consequentlythe impact of the policy or project; (b) introductionof specifictechnologiesmay affect land tenure pattems;(c) failure to understandexistingtenure systemsmay leadplannersto overlookpromisingopportunitiesto developlands underparticulartenure arrangements. 21. Comprehensiveevaluation of the soil and water conservationmeasures for the Da watershed shouldnot proceed withoutidentificationof the full range of tenure types and the characteristicsof tenure that affect the adoption of the proposedtechnologies.Of particular interest is the possibilitythat there might be common property management schemes already in place for the barren lands. Since this informationis not readily available,two assumptionneedto be made: (a) cultivatorswill be less likelyto adopt technologiesthat have a long time-lagbeforethey beginto generatebenefits;and (b) where tenure status is weak the most appropriate technologiesto promote should be those with quick returns and minimumlevelsof investment. 22. In the Da, wherelarge tracts designatedas state forest land have beenconvertedto barren land for extended periods, there is a need to increase tenure security.This could be through formal land titling, granting of limited use certificatesin state forest lands, and formalizationof customary land rights. The only in-depthstudy of the impact of land titlingon soil and water conservationin Asia was undertakenin NortheasternThailand (Feder, 1988).The study comparedthe productivityof farmers with land titles and those with certificates of occupancy, and concludedthat titles had a significant impact on technology adoption becauseof their value as collateralfor loans. This study suggeststhat soil and water conservation projects in areas without clearlydefinedpropertyrights should includetitlingcomponents.Titles will give cultivatorsaccessto capital and enablethemto transferimprovementsto their heirs. 23. The issue of population growth and the availabilityof barren land deserves further attention. Althoughthere is a plentifulsupply of barren land onto whichthe rapidly growingpopulationcan expand, cventually it will becomescarce. Fertilityand crop yieldswill declineas rotation get shorter. Low yields mcan low productivity.Low productivityland requiresa largc labor forcc which indircctlyencouragesa largc family sizc. The shortageof land and low productivitywill lead to an impoverishedpopulationand a weak labor force. The labor force will suffer from bad health and low skills and be unablc to accumulate any savings due to their marginalexistence.Thus a viciouscycle of povertywill be perpetuated.Therefore any strategy to promote conscrvationin the barren lands should include componentsthat focus on: (a) increasingproductivity,and (b) promotingfamilyplanning. 24. Ten to 20% of total sediment depositionin the reservoir comes from Vietnamesebarren lands. Investing in soil conservationstrictly for the purpose of limitingsedimentationis not worthwhileunless sediment entering the reservoir from other sources is controlled.This requires evaluation of sediment enteringthe rcservoirfrom non-barrenland and close cooperationwith the Chinesegovernment,which will be extremely difficult to achieve. An alternativeapproach to maintainingreservoir capacity would be to dredgcthe sediment.The viability of this propositionis unclear because of the large volumesof sediment involved,and the cost of sedimentremovalis little known. - 97 Annex 7 - Page 6 of 11 Table 1: Crop Budgets on a Per Hectacre Basis Qty. Units UplandRice Unit Total Cost Cost Uss Crop Expenses Seeds Fertilizer Pesticides kg kg kg 100 0 0 0.11 Subtotal inputs LAbor Landpreparation Fertilizing Cultivation Harvsting Transplantation Qty. Uss Maize Unit Toual Cost Cost USS II t 0 100 0 0 0.11 I Md Md Md Md Md 15 0 9 10 5 0.25 0.25 0.25 0.25 0.25 4 0 2.5 2.5 2.5 Qty. Uss 11 a| 0 Ca va Unit Total Cost Cost USS 150 0 0 0.03 11 15 0 8 10 5 0.25 0.25 0.25 0.25 0.25 4 0 2 2.5 1.5 15 0 3 15 10 0.25 0.25 0.25 0.25 0.25 USS USS USS 5 0 0 0 0 0 0 5 0 0 4 0 1 4 2.5 0 0 0 25 0 0.25 0.25 0.25 0.25 0.25 0 0 25 1 1.00 2.50 25 3 Subtotal labor 10 9.5 11 Total Crop Exnensc 21 20.5 16 Revenues Crop harvest Animal husbandry Fallow Unit Total Cost Cost Qty. 0 0 I Kg lia Total Revenue Retums Net return to land and mnaagement 1000 0.11 I11 11 90 S50 0.11 94 1,200 0.03 41 9 41 28 73.5 25 21 98 - Annex 7 - Page7 of 11 Table 2: Per Ha Cost of Soil ConservationTechnologies Grass Stripsand Mulch Units Qty. Unit Total Cost Cost Construction Costs Seed material kg Fertilizer kg Pesticides kg Earth moving hrs Subtotal Inputs Labor Land Md Preparation Fertilizing Md Planting Md Mulching Md Qty. Terracing Unit Cost Total Cost Us$ US$ n/a n/a n/a 20 n/a n/a rna 25.00 n/a n/a n/a 500 500 25 200 0.25 50 0 n/a n/a 0 n/a n/a 0.25 n/a n/a 0 n/a n/a 25 15 15 0 0.50 2.00 2.00 25.00 13 30 30 0 73 n/a n/a n/a 15 n/a n/a n/a 25.00 n/a n/a n/a 275 275 20 0.25 5 100 0.25 10 10 20 0.25 0.25 0.25 2.5 2.5 5 0 n/a n/a 0.25 n/a n/a otal Conservation 25 88 _ _ _ _ _ _ _ Unit Total Cost Cost Uss US$ 15 Qty. UsS US$ Subtotal Labor Expenscs Earth Bunds 50 300 _ _ _ _ __ _ _ _ _ 550 _ _ _ _ _ _ _ _ _ .__ - 99 - Annex 7 Page 8 of 11 Table 3: Net Benefits from Soil Conservation Technologies for the Da Watershed (US$Million) Net Benefitsof Affected Party Crop Status Quo Upland Farmers Fallow Rice Maize Cassava 411 172 89 23 695 Labor CropDamage -8 -56 -64 1 7 8 1 ll 12 2 14 16 Hydopower Irrigation Crop Flooding 0 -1.3 -0.6 -1.9 0 0.1 0.1 0.2 0 0.2 0.1 0.3 0 0.2 0.1 0.3 629.1 139.2 105.3 72.3 Sub-Total Lowland Farmers Sub-Total ResevoirUsers Sub-Total Totals a/ Measured as incremcntalnet valucsto thc status quo. IncremcnlalOutcomeof Manam Grass Strips EarthBunds and Mulching 0 0 77 55 40 28 14 10 131 93 Alternatives al Terraces 0 33 17 6 56 100- Annex 7 Page9 of 11 References Abujamin,S. Abdurachman,A. and Suwardjo.1985.Contourgrass strips as a low cost conservationpractice.ASPAC ExtensionBull.No. 2 21 .pp 1-7. Bouveyron,Catherine.Personalcommunicationfromthe Instituteof Geographyand Natural Resources,Hanoi. In: Reporton WorldBankmissionin VietNam on environmental issues from March 27 to April 24, 1993. Boyce,Stephen,G. 1992.ModelsFor Managersin Natural Resources. Textbookfor FES-302. Modelsin Forestryand EnvironmentalManagement.DukeUniversity. Schoolof the Environment.Publishedby StephenG. Boyce.Brevard,NC. Clark, E. II, J. Haverkanp, and W. Chapman.1985.Eroding Soils: The Off-FarmImpacts (Washington,D.C., The ConservationFoundation) Crosson, P. 1986."Soil Erosionand PolicyIssues,"in T. Phipps,P. Crosson,and K. Price, eds., Agricultureand the Environment(Washington,D.C., Resourcesfor the Future). Cuc, Le Trong. 1990. Agroecosystemsof the Midlandsof NorthernVietNam: A reporton a preliminaryhumanecologyfield studyof threedistricts in VinhPhu Province.Eds: Le Trong Cuc, KathleenGillogly,and Terry Rambo.OccasionalPaper No. 12. Environmentand PolicyInstitute.EastWest Center.Honolulu,Hawaii. Feder, G. TongrojOnchan,YongyuthClamawong,and ChiraHongladaron.1988. LandPolicies and Farm Productivityin Thailand.(WorldBank ResearchPublication).Johns Hopkins UnivcrsityPress:Baltimorc. Figueroa,J.F.L. and M.A. Garduno. 1981.Evaluacionde cincotipos dc terrazas cn suclosdc ladcra de la cuenca del rio Tczcoco. Filipovic. 1968.Erosion of arabIc landin the upperJasenicawatershedand its influenceon winterwheatyield. Arh. Polypr.Nauke. 2?1(74)16-17. Humi. H. 1982. Soil Erosion in Huai Thung Choa - NorthemThailand:Concemsand constraints. MountainResearchand Development.2(2):141-151. Kampen,J. 1979.Watershedmanagementand technologytransfer in the semi-aridtropics. In: Developmentand Transferof Technologyfor RainfedAgricultureand the SAT Farmer, Proc. of the InauguralSymp.at ICRISAT.ICRISAT,Andra Pradesh,India.pp.1 1-119. Khan, A.D. 1962. Measurementof increasein productivityby adoptingsoil and water conservationpractices.J. Soil Water Consv.India. 10(1&2):25-33. Kumia, U and R. L. Watung. 1985. PengaruhPengolahanTanah dan Mulsa Sisa Tanaman Terhadap ProduktivitasTanah LatosolKadipaten.AkalahLokakaryaHasil Penelitian PengelolaanDAS san DampakPemanfaatanSumberAlamTerhadap Lingkungan. Cisarua. Bogor9-10 Maret 1985. - 101 - Annex 7 Page 10of 11 Lal, R. 1987. Effectsof soil erosionon crop productivity.In: CRC Critical Reviewsin Plant Science.Vol 5, Issue4. Pg. 303-367. Lukito,H. 5. 1984.PengaruhJenis TanamanTerhadapErosi dan LimpasanPermukaandi Desa Gubug Klakah,KecarnantanPoncokusumo,Malang.Thesis FakultasPertanian. UniversitasBrawajaya,Malang. Marsh B. 1971.Immediateand longterm effectsof soil loss. Proc. AustralianSoil Conservation Conf.- 1971. Marston, D., Anecksamphantand R. Chirasathawom.1983.Soil Conservationand land developmentin Thailand.In: Soil Erosionand Conservation.Eds. S.A. El-Swaify,W.C. Moldenhauerand A. Lo. Soil Conservation.Societyof America.Ankeny,Iowa. pp.634641. Murad, A. 1985.PenilaianTindakanPengawetanTanah DenganTehnik SipilDalamUsahatani lahan Kerinjgdi JampangTengah,Sukambui.Thesis FakultasKehutanan.Institut PertanianBogor. Phong,A.T., et al. 1993.Bare Lands in VietNam (The existingsituationand the improvingand using orientationup to the year 2000).Ministryof Agricultureand Food Industryand the NationalInstitutefor AgriculturalPlanningand Projections.Hanoi. Sembiring,H. and A.M. Fagi. 1989.PaketUsahatanidalarnMengatasiErosi di Das Brantas, Jawa Timur. P3HTA Malang. Sheng,T.C., Jackson,J.K., Kraayenhagen,J., Nakasthin,N. and P. Watnaprateep.1981.Thc effectsof differentstructureson erosionand runoff.In: South East Asian Regional Symposiumin Problemsof Soil Erosionand Sedimentation.pp. 301-310. Sheng,T.C., Jackson,J.K., Kraayenhagen,J., Nakasthin,N. and P. Watnapratccp.1981.Thc effectsof differentstructureson erosionand runoff.In: South East Asian Regional Symposiumin Problemsof Soil Erosionand Sedimentation.pp. 301-310. Stevens,Jonathanand PeterCook. 1993.The ServiceLevelApproachto MeasuringAssct Pcrformance.In: Toward ImprovedAccountingfor the Environment.Eds. Ernst Lutz. UNSTAT-WorldBank. Washington,D.C.pp 246-266 Sub Proyek BantuanTeknikUNDPSolo. 1979.EvaluasiPenelitianErosi Pada Plot Pcrcibaan ProyekTA IN5/72/006.Kerjasamaantara Sub ProyekBantuanTeknikUNDPSolo/TA IN5/72/006. SurakartadenganFakultasKehutananUGMYogyakarta.Surakarta. Subagyono,K. 1988.PengaruhPenanamanBerbagaitannamanPenututpTanah Secara Strip Terhadap Erosi dan LimpasanPernukaan pada MediteranDesa JatikertaSumberpucung Maland.Thesis FakultasPertanianUniversitasBrawijaya. Malang. Sunardi, M. 1989.PenggunaantanamanStrip untuk PengendalianErosi dan LimpasnPermukaan pada TanamanTumpangsariJagungsan Ubikayutanpa teras. Thesis. FakultasPertanian UniversitasBrawijaya.Malang. - 102 - Annex 7 Page 11of 11 Sutrisno. 1987.Pengaruh PemberianJeramidan Sifat-sifatTerhadapErosi dan Aliran Permukaan.Thesis Jerusan Tana FkultasPertanian. InstitutPertanianBogor.Bogor. Suwardjoand SofijahAbujamin.1983.Crop residuemulch for conservingsoil in uplands of Indonesia.Soil and Conservation.Eds. S.A. El-Swaify,W.C. Moldenhauerand A. Lo. Soil ConservationSocietyof America.Ankeny,Iowa. pp.607-614. Suwito,H. 1984.PengaruhPengelolaanTanah dan TanamanTerhadap Erosi dan Limpasan Permukaandi DaerahAliranWadukKarangkates.Thesis. FakultasPertanianUniversitas Brawijaya.Maland.Table 4 page 14 of 16. Team KonservasiTanah dan Air. 1980d. PengaruhMulsaSisa Tanamansan PengelolaanTanan Terhadap Erosi. Sifat-sifatTanahdan PetembuhanTanamanpada Tanah Latosoldi Citayamdan pada Tanah Podsolik.Di Pekalongandan laporan Progres.Penelititan KonservasiTanah dan air 1979/1980ProyekPenelitanTanah. Lembagatanah. Bogor. Hal. IX.I -IX.13.v The World Bank. 1992.Viet Nam: Population,Healthand NutritionSector Review.Report No. 10289-VN. The World Bank. 1993.VietNarn: EnergySectorInvestmentand PolicyReview.ReportNo. 19842-VN Utumo,T.W. 1986.PengaruhPenutupanMulsa JcramiPadi Terhadap Sifat FisikTanah dan Pada LatosolDarmagayang DitanamiPadi GogoSelamaSatu MusimTanam. Tcsis Jurusan Tanah FakultasPertanian.Institut PertanianBogor.Bogor. Widajati. 1989.Kajian PengaruhSistemPcnanamandan PemberianMulsa Terhadap Aliran Pcrmukaandan Erosi Pada LahanTegalnanDacrahHulu. Thesis FakulatasKehutanan. UnivcrsitasGaja Mada. Yogyakarta. - 103 - Annex8 Page 1 of 31 VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES A SOCIALIST ECONOMY IN TRANSITION The Cost of MangroveDestructionin Viet Nam A. Introduction Coastal mangroveforestshave increasinglydisappearedduring the past few decadesin Viet 1. Nam. During the last years, this historical trend has been acceleratedby direct human pressure on the mangrove ecosystemsand the impact of other developmentactivitieslocated in the coastal zone and its catchmentarea. Mangrovetrees are cut by local people collectingfirewood and poles for both domestic and commercial use. Shrimp farm developmenthas led to the conversion of thousands of hectares of mangrove forests and some rice paddies to extensive shrimp culture. Agricultural activities affect mangrove ecosystems through their reclamation for agricultural production and other more indirect effects, such as changesin the hydrologicalregime, pollutionwith agrochemicalsand nutrientsand water acidification. Water resources developmentand other up-streamactivities, includingurban and industrial pollution, can also change crucialparameters in the growth of mangrove forests. 2. This analysis focuses on two activities which rank among the main causes of the rapid destruction and degradationof mangroveecosystemsin Viet Nam. It illustratesin the forn of two case studies the impactof (a) the conversionof vast mangroveareas to shrimp ponds in Minh Hai province; and (b) the clearing of mangrove belts along sea dikes in central Viet Nam. After estimatingthe costs of mangrove destruction in each case, the results of the two case studies are extrapolated to the whole coastal zone of Viet Nam in order to understand the orders of magnitudeof the costs connected to mangrove destruction. The goal of this analysis is, however, not only to estimate the costs of the uneconomical management of mangrove ecosystems, but to provide a broad framework for the role of mangroves in coastal zone managemehtand indicatethe value of mangrove forests of the very diverse products and services provided by mangroveforests. 3. Mangrove ecosystems have been destroyed and transformedin a rapid pace all over the world. This process is drivenby the belief that mangroveforests are foul, ill smelling, insect-riddenand difficult zones and produce little economic value. However, the literature on mangrove management supports the hypothesis that mangrove ecosystemsprovide a variety of importantproducts and services to humans. For instance, nutrient supply to coastal fisheries and the provision of spawning and feeding grounds for immaturefish and shrimp are attributed to mangroves. Shore protection, the prevention of coastal abrasion and the support of accretion are some other important functions that affect human settlementsand agriculture. 4. As figure 1 illustrates,most of the servicesand productsconnectedto mangroveecosystems are off-siteand/or non-marketed. The off-sitecharacterof very importantmangroveservices impliesthat very valuable benefitsbrought by investmentsinto mangrovescannot be capturedby the investorand are provided for "free" to others. The absence of market prices makes the quantificationand economic valuationof the ummarketedproducts and services very difficult. 5. Althoughthis analysisattemptsto quantifyand value some of the off-site and non-marketed goods and services providedby mangrove forests, it is not possibleto capture all the benefits brought by mangrovepreservation. For this reason, the numbers given for the value of mangrove ecosystemshave to be consideredas conservativeestimates. The economicanalysisis based on actual market prices and - 104- Annex 8 Page 2 of 31 wages in Viet Nam. For the calculationof the Internal Rates of Return (IRR) and Net Present Values (NPV) a discount rate of 10% was used. Since family labor was not included in the analysis (i.e., implicitly costed at zero) the valuation (NPV) should be interpreted only as net returns to the farm enterprise family. Figure 1: RelationBetweenLocationand Type of MangroveGoodsand Servicesand EconomicAnalysis. Type Marketed Non-marketed Locationof Goodsand Services On-site Off-site Usuallyincludedin aneconomicanalysis(e.g., poles, charcoal,woodchips,mangrovecrabs) Maybe included(e.g., fish or shellfishcaught in adjacentwaters) Seldomincluded(e.g., medicinalusesof mangroves,domesticfuelwood,food in times of famine, nurseryarea for juvenile fish, feedingground for estuarinefish and shrimp, Usuallyignored(e.g.,nutrientflowsto estuaries,buffer to stormdamage) viewing and studying wildlife) Source: LawrenceS. Hamiltonand SamuelC. Snedaker,eds., Handbookfor MangroveArea Management(Honolulu:East-West Center, 1984), fig. 42, p. 110. B.Case Study I: The Impact of UncontrolledShrimp Farm Developmentin Minh Hai Province 6. Mangrove areas are being transformed to shrimp pond culture all over Viet Nam. The situation in Minh Hai province, which accounts for some 50% of all mangrovesin Viet Nam and is the area most beset by acid sulphatesoil problems, illustratesthe destructivehuman pressure on mangroves in Viet Nam. To determine the economic impact of this large-scale transformation of mangrove ecosystems, this analysis (a) presents shrimp farming models based upon different management options (both existing and proposed); (b) describesa model for mangrove forestry management;(c) estimatesthe contributionof mangrovesto coastal shore protection and fisheries; and (d) determinescurrent land use patterns and alternativescenario implicationsfor Minh Hai province. It concludes that the uncontrolled development of extensive shrimp farming has not been beneficial to Minh Hai province resulting in foregone benefits of US$ 140 million (NPV 1984) over the last ten years, compared with an improved extensive shrimp-mnangrove managementmodel which would not only be more economic in the longer term but would be environmentallysustainable. Intensive shrimp farming has played a minor role. Analysisalso shows that the scope for implementingthe proposedcombinedshrimp mangrove modelhas been drastically reducedwith only 45,000 ha of mangroveforest left in 1993. ShouldMinh Hai continue along current trends, the province will incur further foregone benefits of US$ 249 million over the next ten years. ShrimDFarming and Forestry Models 7. ShrimD Farming Models (models A-E). Three different types of shrimp farming technologies are identified. While traditional extensive and semi-intensivemanagementpractices have long been practiced in Viet Nam, extensiveshrimp farmers have only recently started to intensify their management regimes to the improved extensive model which is the model advocated for future developmentas it is both economicallyviable and preserves the mangrove ecosystem. Based upon field observationsin Minh Hai, the different technologiesare briefly described as follows: - 105 - Annex 8 Page 3 of 31 Extensive Models (ModelsA and B, see tables I and 2): Ponds, which wouldusuallybe either 2-3 ha, or 10-20 ha are generallysited in coastal low-lyingbarren land close to mangroveswith earthendikes excavatedfrom the swamp(no heavyearthworks)and some fellingof mangrovetreesto improvewatercirculation. Thesepondsare filled withbrackish water at high tide, usuallyat the beginningof the dry season. Canal shrimps(and other forms of fishery) enter the ponds with the water and are permittedto grow. No feed is applied and harvest takesplace aboutevery two months. Averageproductionis 150-200 kg/ha/yror about30-60kg/ha/crop. Yieldsdeterioratesharplywithinfour years depending on the build up of soil acidity. Acidificationtakesplace when the pyrites in acid sulphate. soils that were dug up from the swamps (to build the dikes) become oxidized and are washed by rain into the ponds as sulfuric acid. Furthermore,as mangroveforests in surroundingareas are cleared,the extensivesystem, in any case, becomesunsustainableas the nursinggroundsfor shrimp progressivelydecline." Underpressureto be more "semiintensive,"shrimpfarmerswhocan affordit (veryfew)beganto buy culturedshrimp larvae (producedin NhaTrang, CentralRegion)and a numberbegansupplementaryfeeding. The situation did not improvebecauseof the poor viabilityof the purchasedlarvae compared to collectedwildstockand the increasingeffectsof pollutionon the system These factors cannot be easily mitigatedwithoutfurther investment(improvedpumpingand drainage). Finally as greater acidificationsets in, the system collapsedand farmnershad to abandon their ponds pursuingless remunerativeactivities. From the above, two extensivemodels are presented. The first, correspondingto low-inputmanagement,yieldsare low with 150 kg of shrimp and 200 kg of fish per year in 4-7 crops , but pondconstructionand resource conditionsare favorable(modelA). The second, approximately30% of extensiveshrimp farming is not sustainable and abandoned after 4 years due to inappropriate pond construction (problems with water exchange) and water acidificationcaused by the excavationof acid sulphatesoils for dikes (modelB). The shrimp culturedin the extensive model (P. merguensis)receives a low price on the market (US$ 1.50/kg). Farmers complementtheir on-farmincomewith fish and shellfish(200 kg equivalentper hectare) caught in adjacentwaters which is sold for an average price of US$ 1.00/kg. - - Semi-intensive Models (ModelsC and D, see tables 3 and 4): In this type of farm, investment into shrimp pond construction is much higher reaching US$ 2,500. For operation, stocking is done with purchased fries (P. monodon), feed is added, water exchangeis regulatedby permanentpumpingand waterhas to be treated. Moreand better qualifiedpersonnelis.neededfor pumping,quality control, feeding, predatorcontrol and management. Due to its higher quality (larger size), shrimp is sold for a higher per kg price in the market (US$ 3.00/kg) than in the extensivemodel. However, experiencein Viet Nam has shownthat half of semi-intensiveshrimpfarmingis abandonedafter 4 years (model D) and the other half after 8 years (model C) due to managementproblems, the occurrenceof acid sulphatesoils and pollutionproblems. - Improved Extensive Model (Model E, see table 5): This model is hardly practiced but representsa viable alternativeto the present traditionalextensive("shifting aquaculture") model. It would focus on improvingthe present extensivesystem. The typical farmers would havea 10-20ha plot in barrenlandsor mangroveareas. Dikesmaybe relocatedand built in well-selectedzones that take advantageof the natural topography. The farmer would build a woodengate and clear limitedareas of mangrovefor a channelto improve water exchange;but would also replant mangrovesto protect the dike against erosion. Wateringwouldbe done after preparingthe soil and destroyingthe existingpredators(sun 1/ Overall for the MekongDeltaaverageyield of shrimpcultureddeclinedfrom 297 kg/hain 1986to 153kg/ha in 1988. - 106 Annex 8 Page 4 of 31 drying and use of Rotenone,Saponine,Tea Seed Cakeof Derisroot extract, includingfine mesh to be placed in the gate grid for preventingpredators entrance). Fry of highly commercialspeciessuch as P. monodonwould be introducedat a rate of 5,000 to 8,000 larvae/ha complimentarywith the natural seedlingsfrom the local estuaries during the wateringoperation. Fertilizationwithanimalmanureand or chemicalfertilizerswouldalso be required. Water quality (planktondensity) is controlledregularly(with a secchi disc) and some fertilizersmay be addedwhen necessary. From the 90th day to the 120thday, some feedingis done to complementany deficiencyin the naturalproductionof plankton. Feed could consist of a mixture of trash fish and rice bran and some concentrate(fresh protein plus vitaminsand minerals). Harvestingat the 110thto 130thday could give 250 to 300 kg per crop of highly commercialshrimps of medium to large sizes. (With the possibilityof 2 crops/year, annualyieldsof 500-600kg is feasible.) Althoughhigher cost than the extensivemodel, this technologywould have the advantageof a low investment ranging from US$ 500-600/ha(substantiallylower than the semi-intensivemodels), low input, limitedeutrophication,good returns, and it utilizesan approachwhich is recognized and replicableto traditionalfarmers. The shrimp output(P. monodonand P. merguensis) receives a good price in the market(USS 3.00/kg). Intermediateto improved-extensiveand the semi-intensivemodelsis the IntearatedShrimp-MangroveManagementModel, as exemplifiedby the systempracticedby theTam GiangForestEnterprise,but with improvementsin the shrimp pond:forest(or reforested)area ratio. Presentlymangrove forests are retainedor replantedon 50 percent of the land with the remainderto be devotedto shrimpfeeding. The areas retainedas mangroveforestsneed to be expandedthroughreforestationand shouldbe exploitedin a long term sustainablesystem in the 50-100 ha blocks that have already been allocated. The Stateenterprise developsthe channelson about 10-15 percent of the area and provides for reforestation(if necessary)of the remainingparts of the block. Familiesare then allowedto make gates at canal heads (a dual gates system of intake and drainage is used) and to use the canals for shrimp breeding(natural shrimp seed and some food supply) for a period of 5 years, when the closed canopystage is reached. Thereafter,the familieswillbe responsiblefor the managementand protectionof the forest. Some2,000 ha are presentlybeing workedunder this systemin the Tam GiangForest Enterprise. Total investments for shrimp breeding amount to US$410-450/ha,average yields are 150-200kg/ha/yr. This is not modelledhere as a proper evaluationof cost and returns has yet to be undertaken. 8. Mangrove Forestry Model (Model F. see table 6). This model is based on field data for mangroveforestry on a mean annualincrementbasis. The existingstandsare cut every eightyears with an average outputof 10 steres3 ' of poles, which sell for US$ 10, and of 5 steres of firewood(US$ 5). Cutting fees amountto US$ 30/ha. 9. The Costs of IncreasedShore Erosion. During the period 1984-1993,coastal mangrove deforestationis estimatedto contribute15 meters/yearto coastalabrasionalongthe easterncoastof Minh Hai province'. With a shore lengthof approximately200 km, coastalerosion results in an annual loss of 300 ha of productiveland. Sinceno landprices exist in Viet Nam, the value of lost land is estimated at US$ 2,000 per hectare which correspondsclosely to the Net Present Value of one hectare in the sustainable extensive shrimp farming model (model A). This results in a potentialannual benefit of 2V See MekongDeltaMasterPlan, nnematic Studyon Environmental Impacts,Volume1, November1992. 3/ 1 stere = 0.65 m' 41 Thisobservation is reported in theMekongDeltaMasterPlan,Thematic Studyon Environmental Impacts,Vol. I: p. 19 . -107- Annex8 Page 5 of 31 mangroveconservationof US$600,000duringthe period1984-1993.Thereafter,preservingmangroves is assumed to result in an annual benefit of US$ 150,000due to the small size of the remaining mangroves. 10. Contributionto Local Fisheries. MinhHai coastalfisheriesare assumedto catch 60% of the natural aquaticbiomassfound in coastalwaters around mangroveforests (300 kg fish and shellfish per hectareof mangroveforest). Aftermangrovedestruction,naturalproductivityis assumedto decline by 60% leading to a loss in annualcatchesof 180 kg fish per hectareof clearedmangrove. With an average market price of US$ 1/kg for fish and shellfish,this results in an annualloss of US$ 180 per hectare mangrovedestroyed. This estimate is in line with figures obtained for the value lost from defoliationof the Cau Mau Peninsula(derivedfrom Hong)duringthe SecondIndochinaWar (see Annex 4 para. 22). CurrentLand Use and AlternativeDevelopmentScenarios 11. Current LandUse (see table 7.1). Basedon Maraund(1943),the originalarea coveredby mangrovewetlandsin Minh Hai provinceis estimatedto have been 218,500 ha (equivalentto 50% of total forest area). Sincemost reclamationoperationsof wetlandsfor agriculturalproductionprimarily has convertedinlandmarshes(melaleucaforests)but not mangrovewetlands,the total mangrovewetland area can be assumed to have been 200,000 ha in 1985. For 1985, the year when shrimp farm developmentbecamesignificantfor Minh Hai's development(i.e., it exceeded20,000 ha), a baseline scenariofor the situationof mangroveforestscan be constructed,based on data publishedby FIPI and GDLM (1985). Assuminga ratio of mangroveto back mangroveforests(melaleuca)of 5:3, Minh Hai had 110,000ha of mangroveforests, 10,000ha of shrimp farmingarea and 80,000 ha of barren lands in 1985. The baseline scenariofor changesin land use for the period 1985-1993is developedusing numbersprovidedby SouthernFIPI and the ProvincialForestryand Fishery Servicesof Minh Hai for 1988, 1992 and 1993. 12. For the years 1994-2003, current trends are assumed to continue until major abandonment of extensiveshrimp farmingsets in due to pollutionand managementproblemscausedby the destruction of the supportingmangroveforests, acidificationof pondsand over-crowding. Duringthis period, an increasingnumberof farmersexperiencedecliningyieldsresultingin low incomesand evenlossesbefore they drop out of business. Abandonmentalready sets in 1991, three years after the overall shrimp 5 farmingarea equalledthe area coveredby mangroveforests e. Our extrapolationthrough 1999indicates that abandonmentwill continuouslyincreaseleavingonly 23,300 ha of shrimp farms whichbe matched by an approximatelyequal amountof remainingmangroveforests(22,000 ha). 13. AlternativeDevelopmentScenarios(see tables 8 and 9). In order to assess the economic impactof mangroveconversiontwo alternativescenariosfor coastalzone managementin Minh Hai are developed in tables 8 and 9. Both developmentscenariosare based on integratedmangrove-shrimp culture (see model E) which requires a ratio of 80% mangrovearea to 20% shrimp pond area to be environmentallysustainable. The first scenario(table 8) is based on the assumptionthat model E had been practiced from 1984. It assesses the costs incurred under current trends by not adopting the appropriatemodel. The secondscenario(table9) assumesa drasticchangein currenttrendsby switching to the appropriateintegratedmodel in 1994. In this scenario,the area on which shrimp culturecan be practicedis limitedby the smallsize of remainingmangroveforests(45,000ha). 5/ In the context of this analysis,abandonmentfor the smallfarmersituationdoes not meanmoving out of the farm: it means that the original productive activity (shrimp culture)has effectively ceased. For example, the fanner might continue to keepducks in ponds. - 108- Annex 8 Page 6 of 31 The OverallCost of UncontrolledMangroveConversionin Minh Hai Province 14. To estimatethe value of protectingmangrovesin Minh Hai province, the net benefitsof both the scenario based on the actual developmentas well as the scenarioassumingrationalmangrove utilization(i.e. adoptionof the environmentallysustainablemodelE) are calculated(see tables 7.3, 8.2 and 9.2). In addition to overall net benefitsof each developmentmodel, net benefits attributableto differentmangroveservicesand products(shoreprotection,supportof local fisheries,woodand shrimp production)are given. Fish caught by shrimpfarmnersaround their pondswhich were includedin the extensive shrimp farming models as other outputs (see para. 7 - extensive model) are considered separately(see columnson fisheriesvaluesin tables7-9) to make this importantmangroveservicemore explicit. 15. For the period 1984-1993(see table7.3), actualdevelopmentresultedin netbenefitsof US$ 116million(NPV in 1994dollars). However,if MinhHai had followedthe alternative,moreappropriate developmentpath (see table 8.2) it couldhavegeneratednet benefitsof US$ 256 million(NPV in 1994 dollars). The opportunitycost foregone would , therefore, have been US$ 140 million. For the followingperiod 1994-2003,continuingcurrent trends (see table 7.3) are estimatedto result in net benefitsof US$ 39 million(NPVin 1994dollars)whichare far outweighedby the US$288 million(NPV in 1994dollars)obtainedfrom switchingto the alternativesustainabledevelopmentmodel(see table 8.2). 16. In summary,the costs incurredby the un-economicaluse of mangroveecosystemsin Minh Hai provinceresultfrom the differencein netbenefitsbetweenthe modelbasedon currenttrendsand the alternativescenario. For the period 1984-1993,uncontrolledshrimpfarminghas already resultedin the "loss" (or foregonebenefits)of US$ 140million(NPV in 1994dollars). This trend willcontinueuntil 2003 if the Minh Hai aquaculturesectordoes not take any drasticmeasuresto switchto moresustainable managementfor the coastalzone. The costs(or foregonebenefits)of continuingalongcurrenttrendsare estimatedto sum up to another US$ 288 minus US$ 39 or US$ 249 million(NPV in 1994dollars) through the year 2003. C. Case StudyII: Mangrovesfor Sea Dike ProtectionIn Central Vietnam 17. Although mangrove forests are not abundant in central Viet Nam they fulfill a very importantrole in the protectionof sea dikes, preventionof coastalabrasion,as buffersagainsttyphoons, as wood reservesand as fishery habitats. This sectionattemptsto illustratethe valueof mangrovebelts along sea dikes by providingrough estimatesfor some of the benefits of preservingmangroves:the supplyof poles and fire wood, the supportof local fisheriesand reducedmaintenancecosts of sea dikes (see table 10). The calculationsare done for the case of new mangroveplantings. The Model 18. MangroveForestry. Due to their protectivefunction,mangroveforestsare managedin a more conservativeway thanproductionplantations. For the purposeof this analysis,it is assumedthat mangrovesare managedon a 30 year rotation cycle with initial high planting density and selective thinningoperationsafter 9 and 22 years. Outputlevelsreach20 steres of fire woodat the first thinning, 20 steres of poles and 50 steres of firewoodat the secondthinningand 40 steres of poles and 100 steres at the final cut. Poles are sold for US$ 10/stere,fire woodhas a value of US$ 5/stere. 19. Contributionto Local Fisheries. Fouryearsafter establishment,mangrovesalreadyprovide a habitatfor surroundingfisheries,includingspecieswith a high economicvalue such as the mangrove crab (Scylla). With increasingmangrovedensity,fish and shellfishoutputreaches50kga year from year 10 onwardand is sold for an average price of US$ 1.00/kg. Annex 8 109 Page 7 of 31 20. SavedCosts of Dike Maintenance. Averageannualdike repaircosts are 314,350 persondays in Viet Name'for 100 km of sea dikes. Assumingthat protectivemangrovebelts allowsavings of 20% of annual repair costs, annual savingsfrom preserving/plantingmangrovesalong sea dikes amountto US$ 62,870 at an averagewage of US$ 1 per person-day. The Cost of ClearingProtectiveMangroveBeltsalon,eSea Dikes: 21. The value of preservingmangrovesalongsea dikes in central Viet Nam is calculatedin Table 10 Analysisrevealstheimportantrole of mangrovefor sea dikeprotectionwhich is complemented by the supportof local fisheriesand the productionof wood. For 100kmnof sea dikescorrespondingto 500 ha of mangroves, protective mangrovebelts generate economicvalue of US$ 533,000 (NPV) calculatedover a thirty year period. D. An Extrapolation:The EstimatedCost of MangroveDestructionin Viet Nam 22. This sectionprovidesan estimateof the costs incurredin Viet Nam by the un-economical use of mangroveecosystems. It extrapolatesthe costsof mangrovedestructionfound in aboveanalysis for uncontrolledshrimp farm developmentin Minh Hai province and for the absence of protective mangrovebelts along sea dikes in centralViet Nam. However,it is importantto emphasizethat the results of this sectionshould be interpretedon a roughorder of magnitudebasis, as this analysisonly captures a few causes (and consequences)of mangrove destructionand has had to rely on field extrapolationsand thejudgementof localexpertsin theabsenceof comprehensivereliableempiricaldata. 23. ShrimpFarm DeveloDment.By 1993,only 38% of the mangroveforestswhichhad existed in Minh Hai province10 years ago had remainedintactfrom the onslaughtof shrimpponddevelopment. Assumingthat this ratio appliesto mangrovewetlandsin thewholeMekorngDelta, in the Red RiverDelta and the North-East,shrimpfarmdevelopmenthas led to thedestructionof some 148,000ha of mangrove forests in Viet Nam during the last decade. This impliesa economicloss of US$ 277 million(NPV in 1984dollars) over the last ten years with Minhhai accountingfor about US$ 140million. Even if the loss is attributedto only half of the non-MekongDeltamangroveareas becausetheir problemsoils are muchless, the total economicloss of US$ 209 millionis still considerable. 24. ManRroveBeltsAlongSea Dikes:It is assumedthat 860 km out of an estimated2,000 km of sea dikes in central Viet Nam either possessprotectivemangrovebelts or are suitablelocationsfor mangroveplantations'. If humanpressure has removedor preventedmangrovesat half of these sea dikes, the costsincurreddue to increasedsea dike maintenancecostsand theabsenceof woodsupplyand fish wouldamountto USS 1.7 million(NPV in 1984dollars)for centralViet Nam. 25. Adding the costs of mangrovedestructionas found in the previous sections, the uneconomicaluse of mangrove ecosystemsin Viet Nam can be estimatedto have accumulatedcosts amountingto US$ 279 millionover the last 10 years. - 6/ World Food Programme, Appraisalof ProjectViet Nam 4617 'Rehabilitationand Upgradingof Sea Dikes." 7/ This assumptionis basedon the WFP 4617 report whichstates that in the NorthernCentralprovinces l,l OOkm of sea dikes exist and out of 454 km which need to be rehabilitatedonly 195 km are suitable for prolective mangrove planuations. Model A: Extensive Shrimp Farming (Sustainable) - Basic Data Source: Serene, basic model 11 Basic data: Land allocation for ponds (hectares): Investment Costs (per hectare): Total: soil preparation: canal construction: gate: equipment: Operating Costs (per hectare): Total: labor: . Remarks: 4 $370 $70 low, small dikes (1.5 m3/ m length); low pond water level $250 $20 wooden sluice gate $30 includes small boat and casting net $169 $139 250 persondays @ $1.00/day (4 ha) guard: feeding: harvesting: maintenance: purchase charges: fries: feed: machine hire, fuel: other inputs (pestic.,etc.): $63 $0 $16 $60 $30 $0 $0 $25 $5 shrimp: fish: 150 average yield in Minh Hai (Fishery Dept) 200 (7 crops) 7 harvests of 6 persondays @$1.50/day (4 ha) 1 0% of investment natural stocking water exchange at 50% every 15 days Output (kg per hectare): 200 fisheries harvest outside holding; no over-exploitation assumed Other output (kg per hectare equivalent): Output prices (per kg): ___________________________________ Discount Rate: Investment Life: shrimp fish: (P.merguensis): other: _ soil and canal works: Igates and equipment: $1.50 prices (in USS)are assumed to be constant $0.20 $1.00 10% 11 years 5/6 years _ ____ Ow. ID W ooD Model A: Extensive Shrimp Farming (Sustainable)- NPV and IRR Analyses 1 ________-_______ 2 3 4 5 6 7 9 8 12 11 10 Investment Costs: Canal construction: Labor: 556 Purchase charges: 120 Subtotel: 676 Shrimp: 556 120 556 120 556 120 556 120 556 120 556 120 556 120 556 120 556 556 556 556 556 556 556 120 120 120 120 120 120 120 120 120 120 676 676 676 676 676 676 676 900 900 9900 900 900 900 900 900 160 160 160 160 800 800 1184 1184 1184 384 384 676 676 676 676 876 676 676 676 676 o900 900 900 900 900 900 900 900 900 900 900 160 160 160 160 Other: 800 800 800 800 -1480 556 556 676 2156 Fishes: Balance 11lother output excluded): 22 556 Output: -1480 21 I I I l: Balance 20 120 120 120 Subtotal: 16 80_ 8 _ _ 80 80_ Instruments: Operating Costs: 15 1000 1000 Gate: 14 280 280 Soil preparation: 13 1860 1860 1860 1860 1184 1184 1184 384 384 384 160 800 160 B00 1860 1860 160 160 160 160 B00 800 800 800 800 1860 1860 1860 1860 1860 1184 1184 984 1184 384 184 384 384 160 1184 1184 384 384 1184 1184 384 160 160 160 160 800 800 800 800 1860 1860 1860 1860 -296 1184 384 -1096 384 800 800 1860 1860 1860 1860 1184 1184 1184 384 384 384 384 _ BalanceI (NPV:, S8.28 1 BalanceII (NPVB: $1,264.23 __ __ IRR1(22 years): 80% IRR 11122yrs.l: 23% = = ===_ aq Wn 0 I-' _ 9 co - BasicData ModelB: ExtensiveShrimpFraming(Unsustainable) _ Source: Serene, basic model 11 Investment costs Remarks: _ Basic data: Land allocation for ponds (hectares): 4_ (perhectare): $370 Total: (perhectare): $169 Total: labor: 250 persondays _ maintenance: purchasecharges: _S30X $16 7 harv. of 6 persondays $60 10% of investment $0 year 1: Output (kg per hectare): 80 shrimp: fish: Other output (kg per hectare equivalent): _______ _____exploitation ,____________ shrimp fish: other: (P.merguensisl: _ ' _ water exchange at 50% every 15 days $25 $5 machine hire, fuel: other inputs (pestic., etc.): _ _ year 4: year 2: year 3: 50 decline due to acidification of site 80 150 200 150 200 200 ______ ______ 100 100 and inappropriate pond construction 200 200 fisheries harvest outside holding; no overassumed ________________ prices (in US$) are assumed to be constant $1.50 $0.20 $1.00 10% 4 years @ $1.50/day(4 hal natural stocking SO fries: feed: Output prices (per kg): @$1.00/day(4 hal _ S ~~~~~feeding: :harvesting: _________________________________ _ _ S139_ ' S63 a____________________guard: . Discount Rate: Life Cycle: low, small dikes (1.5 m3/m length); low pond water, level wooden sluice gate includes small boat and casting net $70 $250 $20 $30 soil preparation: canal construction: gate: equipment: Operating costs _- _ a) XQ _ _ _ _____ o X0x t4.C Slrimp Famiing(Unsuslaintible)- NPV and IRR Analysis ModelB: Extensive 1 2 3 4 Labor: 556 556 556 556 Purchasecharges: 120 120 120 120 676 676 676 676 900 120 Boo 480 300 Investment Costs: Soil preparation: Canal construction: _ Gate: ___ _____ 280 1000 80 120 Instruments: OperatinG Costs: Subtotal: Output: -_ =_= 480 160 _ Shrimp: Fishes: Other: 800 80 80 Boo800 I 1440 1820 1360 1180 Subtotal: Balance1: Balance11(otheroutputexcluded): _ -1480 -1480 764 1144 684 -36 504w -296 -116 344 *1018 ($1.518) 41% BalanceI (NPV): Balanca11INPV1: IRR114yrs\: ________ _ . h<> _____________ _i _ 0 ErIX Model C: Semi-Intensive Shrimp Farming (Abandonedafter 8 yrs.J - Basic Data _ Basic data: _ Land allocation Iliectares): $2,500 Investment Costs (perhectare): Total: _____________________________ Operating Costs (perlhectare): sluice gales from brick or concrete boats includes pump, housing, $24 $125 pump repair, fuel,etc.: other inputs /pestic., etc.): administration/ management: $50 shrimp (P.monodon): fish: guard is included into labor chargesfor feeding 500 persondays@ $1.00/day(2 ha) 2 harv.of 16 persondays@$1.50/day (2 hal 5% of investment $250 maintenance: purchase clharges: fries: feed: shrimp: fish: - Life cycle: pond water level 11-1.2 ml hiigh $399 Output (kg per hectare): Rate: Discount high dikes for $1,249 Total: labor: harvesting: _ ________ $560 soil preparation: $1,100 construction: dike and canal $200 gate: equipment: $640 guard: feeding: kg):Output prices (per Remarks: 4 ponds with 2 lia water surface 2 _ $750 _ $400 $250 $50 I_ @ @ 000 fries per harvest $S10/1 20,000 fries/ha 5 kg trash fish/kg shrimp $50/ton11ton of shrimp) water exchangeat 5-10% per day lime, fertilizer _ $100 year 1-2: year 3-4: year 5-6: year 7: year 8: 500 1000 800 1200 600 O_O O _O O crops) l~~~~~~~~~~~~~~~~~~~~~~~~2 $3.00 prices (in US$) are assumedto be constant $0.30 10% 8 years OQ 0 (s3 o: Semi-IntensiveSlhrimpFarming (Abandoned after 8 yrs.) - NPV and IRR Analysis I I 2 3 4 5 7 6 8 Investment Costs: Soil preparation: 1120 Canal construction: 2200 400 400 1280_ 1280 Gate: Instiuments: _. Operating Costs: Labor: Purchase charges: 798 798 798 798 798 798 798 798 1500 1500 1500 1500 1500 1500 1500 1500 200 200 200 200 200 200 200 200 2498 4178 2498 2498 Adrrinisiration: 2498 2498 2498 2498 Shrimpr 3600 3600 7200 7200 6000 6000 4800 3000 Fishes: Subtotal: 0 0 0 0 3600 3600 7200 7200 0 6000 0 6000 0 4800 0 3000 1102 1102 4702 4702 3502 1822 2302 502 Subtotal: Output: -5000 Balance: 1n Balance(NPVI: 18.275 IRR l6 yars): - - 43% ID m> W X D.t ModelD: Semi-IntensiveShrimpFarming(Abandonedafter 4 yrs.) - BasicData _ Basic data: Remarks: Investment Costs 4 pondswith 2 ha water surface 2 Land allocation(hectares): $2,500 (perhectare):Total: high dikes for higihpond water level (1-1.2 m) _ soil preparation: $560 _ canal construction: $1,100 gate: $200 equipment: $640 ___________ Operating Costs (perbectare): sluice gates from brick or concrete includes pump, housing,boats $1,249 Total: labor: $399 guard is included into labor charges for feeding 500 persondays @ $1.00/day (2 ha) 2 harv. of 16 persondays @$1.50/day (2 hal 5% of investment guard: feeding: $250 $24 _harvesting: $125 maintenance: charges: purchase fries: feed: pump repair, fuel, etc.: etc.): other inputs (pestic., administration/ management: Output (kg per hectare): shrimp: fish: Output (perkgi): prices Discount Rate: Life Cycle: shrimp (P. monodonls fish: . $750 $400 . 20,000 fries/ha per liarvest @$10/1,000fries 5 kg trash fish/kgshrimp@ $50/ton 11ton of shrimp) $250 $50 water exchange at 5-10% per day lime, fertilizer $50 $100 _ _ ear 1: year 2: year 3: year 4: 500 decline in output due to management problems, poor 800 500 1,000 0 acid sulphate soils and pollution problems 0 0 0 crops) (2 prices (in US$) are assumed to be constant $3.00 $0.30 10% 4 years _ -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' * I- Ir 0 4 '.9 ( Model D: Semi-intensiveShrimpFarming|Abandonedafter 4 years)- NPV and IRRAnalysis 1 4 3 2 Investnient Costa: Soil preparftion: 1120 Canal construction: 2200 400 Gate: _ _ 1280 Instruments: = Operating Costs: Labor: Purchasecharges: Adrnristration: Subtotal: 798 798 798 798 1500 1500 1500 1500 200 200 200 200 2498 2;498 2498 2498 3000 6000 4800 3000 0 0 0 0 3000 6000 4800 3000 502 3502 2302 502 Output: Shrimp: Fishes: Subtotal: .5000 Balance: _ .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. Balance(NPVI $423__ IRR (4 yrsl: 14% , _ p1 tD C X Ft'.0 w 00 Model E: Improved Extensive Shrimp Farming - Basic Data and Ngoc Hieniand Tarn Giaig in Minhi iai province Source: Being implemented in Duyen I lai (H-ICMC) Remarks: 10 2 ponds with 10 ha water surfacc Basic data: Land allocation (hectares1: Investment Costs (per hectare): $800 Total: soil preparation: canal construction: gate: equipment: Operating Costs (per hectarel: $150 $450 .. $100 2 wooden sluice gates $100 -$412 Total: $137 labor: 2 guards ____________________________guard: feeding: harvesting: maintenance: areincluded into labor charges for feeding $50 500 persondays@ $1.00/day S7 2 harv. of 24 persondays @ $1.50/day (10ha) $80 10% of investnment $275 purchase clharges: fries: feed: pump hire,fuel, etc.: otller inputs Ipestic., etc.) $50 5.000 friesAia@$10/1,000fries $50ltoii (2.5tonsperlhectarel $125 5 kg/kgshrimp $ $50 oo $50 4 administration/ management; $0 shrimp: 550 Output (kg per hectarel: 0 fish: Outptit prices (per kg): sshrimp: fish: 10% Discount Rate: investment Cycle: $3.00 prices (in US$) are assumedto be constant $0.30 _____________ soil and canal works: gateand equipment: 11 years 5/6 years ___ oa,__ o x tm oo Model E: ImprovedExtensiveShrimp Farmind - NPV and IRR Analysis I 1 _____________ 2 4 3 7 0 5 0 9 10 11 12 13 15 14 10 17 20 19 _a 21 Investmelnt Costs: Soil preparation: 1500 1500 Canialconstruction: 4500 4500 Gate: 1000 1000 1000 1000 _ 1370 1370 Instruments: 1000 1000 1000 1000 Operating Costs: 1370 tabor: 1370 1370 1370 1370 1370 1370 13/0 1370 1370 1370 1370 1370 1370 1370 1370 1370 1370 1370 2750 2750 2750 2750 2750 2750 2750 2750 2750 2 750 2750 2750 4120 4120 12120 4120 4120 4120 4120 6120 4120 4120 4120 4120 10500 10500 0500 I 10500 t1500 16500 10500 0 0 0 0 0 r'urchase cliaiges: 2750 2750 2750 2750 2750 2750 2750 2750 2750 Subtotal: 4120 4120 4120 4120 4120 0120 4120 4120 4 120 1G500 10500 16500 10500 105001 Shrinmp: 0 0 10500 10500 I ishies: Subtotal: *n000 12300 nalarnce: INP'V): Ilalance 600.510 _ I __.__ Outptut: 0 1ns1O 12300 12300 o 10500 1G500 10G500 10500 0 0 0 0 0 1G500 10500 0 0 0 0 10500 10500 10500 10500 10500 16500 10500 10500 10500 10500 10500 10500 10500 10500 1500 10500 10500 10500 12380 12300 10300 12300 12300 12380 12300 12300 4380 12300 12380 12380 10380 123uo 12380 12380 12380 12380 I______ __ __ _ __ ___ 10500 0 0 0 0 1000 XX inn: 08 l_b o to1 - I Model F: MangroveForestry on Mean Annual Increment Basis Province) Source: Serene(fasedon DuyenHai, l-ICMC 13asicdata: Land allocation(hectares): OperatingCosts Iper hectarei: _ cutting fees: Output Istere per hectare): poles: fire wood: sterel: prices (per Output Rate: Oiscotint ._ . . _._._ . rcmarks: 120 harvestingfollows a 8 year cycle 114 la cut per year) S30 10 yield estimatesare very conservative 5 _ poles: fire wood: $10 prices(in US$)are assumedto beconstant $5 10% l~~~~~~~~~~~~~~~~ CD OQ ovo O (D :j Cax 0wX Model F: Mangrove Forestry on MoanAnnual Increment13asis area: 120hactar.s 2 I 3 4 5 6 7 8 9 l0 I11 12 _3 i tOpueating Costs: ctiting fuas: Sub-toinl: Wood atUS$ 10/sI. Wood ar US5 5/sie 16 17 8 19 20 21 22 I 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 1500- 1500 1500 1500 I1500 1500 1500 I S00 1500 1500 1500 1500 1500 1500 1500 1500 1500 375 1500 1500 375 1500 375 375 1500 375 1500 375 375 375 375 375 375 375 375 375 375 375 375 1875 375 375 1875 1875 375 1875 375 375 1875 1875 1075 1875 1875 1875 1875 1875 1875 1875 1875 1875 1875 1875 1875 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 Sililgotal: 1875 Balance: 15 1425 1875 1425 1875 1426 1425 1425 Balance INPVI$ 12.499 Balance (NPVI the: $104…= 82 t o n2 Fh .- co Mangrove Wetlands in Minh Hai - Area Performance and Continuing Trends for 1984 - 2003 (Scenario l) angrove MArea Wetlands Mangrove Forest (1,000 a (1.000 ha) Total year 1984 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 200/a 200/a 200/a 200/a 110.0 100.0/a 90.0 75.0 Replanting Total annual 0.8/a 1.3/a 1.1 /a 1.1/a of Barren Lands (1,000 ha) Area of Shrimp Farming (1.000 ha) 10.8 20.0/a 33.2 49.3 Extens. Semi-int. 10.8 22.1 33.2 49.3 62.0 0.9/a 61.6/a 60.0/a 200/a 74.1 74.1 0.5/a 60.0 200/a 88.5 88.6 2.9/a 55.0 200/a 96.4 96.6 0.0/a 55.0 200/a 2.9/a 106.5/a 106.0 1/ 200/a 2/ 50.0/a 1.5 119.0/a 118.0 45.0 200/a 1.5 125.5 124.0 30.0 200/a 1.5 122.0 120.0 20.0 200/a 1.0 103.3 100.3 20.0 200/a 81.3 83.3 1.0 21.0 200/a 52.3 53.3 0.5 21.5 200/a 22.3 23.3 0.5 22.0 200/a 22.3 23.3 0.0 22.0 200/a 22.3 23.3 0.0 22.0 200/a 22.3 23.3 0.0 22.0 200/a 22.3 23.3 0.0 22.0 200/a 1/ Back Mangrove Wetlands is probably another 100,000 2/ Back Mangroves is an addition 25,000 ha 0.0/a 0.0/a 0.0/a 0.0/a 0.0/a 0.0/a 0.1/a 0.2/a 0.5/a 1.0 1.5 2.0 3.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 Abandonment Development original total extens. Semi-in annual cumul. total total annual cumul. annual annual 79.2 79.2 0.0 0.0 0.0 10.8 10.8 10.8 77.9 0.0 77.9/a 0.0 0.0 11.3 11.3 22.1 76.8 76.8 0.0 0.0 0.0 11.1 11.1 33.2 75.7 75.7 0.0 0.0 0.0 16.1 16.1 49.3 15.9 15.5 17.9 15.0 17.9 21.5 16.5 11.5 1.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 65.2 80.7 98.6 113.6 131.5 153.0 169.5 181.0 182.3 182.3 182.3 182.3 182.3 182.3 182.3 182.3 15.9 15.5 17.8 14.9 17.6 21.0 16.0 10.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 o.0 0.0 0.0 0.1 0.1 0.3 0.5 0.6 0.6 1.3 0.0 0.0 0.0 0.0 0.0 0.0 3.2 3.4 3.3 7.0 8.0 9.0 10.0 15.0 20.0 20.0 30.0 30.0 0.0 0.0 0.0 0.0 0.0 3.2 6.6 10.0 17.0 25.0 34.0 44.0 59.0 79.0 99.0 129.0 159.0 159.0 159.0 159.0 159.0 78.0/a 65.9 56.4 48.4 43.5 36.0 44.5 58.0 75.7 95.7 125.2 154.7 154.7 154.7 154.7 154.7 74.8 59.3 46.4 31.4 18.5 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 Remark: All numbersare given in 1,000 ha. Numbersmarked with "/a" are basedon existing official data, others are imputed or projected. 0 m0 H O (D a .~ Mangrove Wetlands in Minh Hai - Current Trends: Background Data and Basic Assumptions Basic Data and Assumptions: Total Wetlands (originalIlV: Mangrove: Back Mangrove: Baseline (1985): Mangrove wetlands: Source: 437 Maurand 1943 Assumptions: 1 1) ratio of mangrove to back mangrove land is I1/ __218.5 218.5 total: 200 forested: 100 FIPI 2) most land reclamation on original back manigrove lands ( estimate from WPNoS ._________ barren: shrimp farming: Reclaimed land: Mangrove wetlands 1988: total: forested: shrimp farming: barren: 200 60 Southern FIPI 60 Prv. Fish. Serv. 80 Mangrove wetlands 1992: total: forested: 200 50 Prv. For. Serv. shrimp 100 Prv. For. Serv. farming: barren: Shrimp farming Replanting area activities: 50 119 1993: isee table) I I __ 4) all aquaculture is shrimp farning 110 60 FIPI 50 GDLM 1985 127 forested: barren: |__ jratio taken from FIPtI quoted by Prov. Forest Serv.; _( 80 GDLM 1985 20 GDLM 1985 Back mangrove wetlands: (pp. 23-24)) 3) ratio of mangrove to back mangrove forests is equal to 5/3 l l see 3) see 2) _ s0 = =- from Prov. Fish. Serv.. 20 from forest enterprise l Prv. For. Serv. Prv. For. Serv. l Further assumptions: 1) 30% of extensive shrimp farms are abandoned after four years due to improper site selection and pond layout; 70% are sustainable 2) 50% of intensive shrimp farms are abandonedafter 3 years due to management problems. 50% after 6 years e 31Beginning 1991. 3 years alter the year in which shrimp form area equalled the remaining mangrove forest area, crowding effects load to n slight increase in abandonment. Abandonnmentrates increase gradually until 1999. when most of the shrimp farms have given up shrimp production. rs c 41 The only significant cause of mangrove deforestation is shrimp farm development. -t 0 oo t- J 00 Mangrove Wetlands in Minh Hai - Imputed Value Performanceand Continuing Trends (1984-2003) Forestry (US| Foetr) Fisheries (USS 1,000) Shrimp Farming (USS 1,000) Intensive Extensive Total Total (USS 1,000) year 1984 1985 1986 1987 _1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1,320 1,200 1,080 900 720 720 660 660 600 540 360 240 240 252 258 264 264 264 264 264 3,521 4,688 5,301 7,428 8,564 -220 3,464 2,085 3,051 2,522 2,644 2,833 2,008 2,650 601 17 2,007 2,007 2,007 2,007 3,521 4,688 5,301 7,428 8,564 -220 3,614 2,120 3,210 2,621 2,150 1,700 1,250 800 350 17 2,007 2,007 2,007 2,007 0 0 0 0 0 0 -150 -35 -160 -99 494 1,133 758 1,850 251 0 0 0 0 0 19,800 18,000 16,200 13,500 10,800 10,800 9,900 9,900 9,000 8,100 5,400 3,600 3,600 3,780 3,870 3,960 3,960 3,960 3,960 3,960 24,641 23,888 22,581 21,828 20,084 11,300 14,024 12,645 12,651 11,162 8,404 6,673 5,848 6,682 4,729 4,241 6,231 6,231 6,231 6,231 NPV (1984-2003): 6,220 30,983 29,881 1,102 93,307 130,510 NPV (1984-1993): NPV (1994-2003): 5,581 1,660 26,342 12,037 26,541 8,663 -199 3,374 83,709 24,895 115,631 38,592 Remark: The extensive shrimp farming column does not include other outputs which are included in the extensive shrimp farming models A and B. Instead, the impact of mangrove deforestation on surrounding fisheries is captured by the column on fisheries to make this impact more explicit. X , 0 4 ,- rD Mangrove Wetlands in Minh Hai - Contintiition of Table 7.3 Explanations: I Forestry Model (Mean Annual Increment Basis, profits per hecta e) $12 Eannual rev.: Extensive Shrimp Farming (profitsper hectare) -unsustainable: sustainable: $326 year 1: I st year: year 2-5: year 6, 1 7: year 7-1 1, 13year 12: Intensive Shrimp remarks: $96 $0-600 ($9) from shrimp farming $0-600from wood cutting 1$370) $96 year 2: $46 year 3: $96 year 4: ($274) ($370) investment cost $86 ($291 ($74) _ Farming(profitsper h ctare): ._ remarks: total $251 from shrimp farming $600 from wood cutting ($2,500) investment cost 3 yrs. cycle: 6 yrs. c cle:: 1$1,3491 1styear: l st year: ($1,649) $551 $600 I($2,500) year year year year year year 2: 3-4: 5: 6: 7: 8: $551 year 2: $1,751 $2,351 year 3: $1,151 $1,751 year 4: $251 $911 $1,151_ $251 Crowding effect (forextensive): yield reduction 50% revenue: 25% From wood cutting g year 1: $600 $326 1984-7, 95-9 $400 $126 1988, 94: $200 ($74) 1990, 92-93: $0 ($274) 1989, 91: lexpl.: In the first year, profits froin shrimp farming depends on the amount of wood cut and sold during constru tion _ _ ; ($9) 3-2 yrs. before aband. 1 yr. before aband. ($74) __ _ _ _ ____ Contribution to Fisheries (annual,per ha): Discount Rate: $180 10% . ____ _ _ w_ 10m Annex 8 -126- 126 Table - 8.1 Page 24 of 31 Mangrove Wetlands in Minh Hai - Area Performance assuming Best Practice (Scenario 2) Mangrove Area of Shrimp Farming Mangrove Wetlands Forest (1,000 ha) (1,00h)(000 ha) (100h)(1,000 ha) Total year I'1] 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 110.0 100.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 95.0 [2] lAnnualDev. 1 10.01 20.01 25.01 25.01 25.01 25.01 25.01 25.01 25.01 25.0 25.01 25.01 25.01 25.01 25.01 25.01 25.01 25.01 25.01 25.01 10.0 10.0 5.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 TtlAe Area of Barren Lands 1Total Area (1,000 ha) _ [3] [1 + 2 + 3] 80.0 200.0 200.0 80.0_ 80.01 200.0 200.0 80.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 200.0 80.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 80.0 200.0 Explanation: Shrimp farming development occurs at the same rate as in the baseline model, but it is stopped in 1986 at the sustainability limit (80% mangrove forest area to 20% shrimp farming area). Thereafter mangrove forests are effectively protected land shrimp farms are managed according to the improved extensive model. Annex 8 Table 8.2 -127Mangrove Wetlands in Minh Hai - Area Performanceassuming Best Practice (Scenario2) Forestry (US$1,000) year Shrimp Farming (US$ 1,000) _ (USS1,000) 1,320 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Fisheries (US$1,000) (US100 l _ _ __ 1984 Shore Protection Page 25 of.31 _ _ _ _ _ _ _ __ _ _ _ _ _ jiTotal: 2,8801 600 19,8001 24,600 1,200 1,140 1,140 1,140 1,140 1,140 1,1401 1,140 1,140 1,140 1,140 1,140 1,140 1,140 1,140 10,7601 21,700 28,700 30,950 28,950 28,950 29,950 30,950 30,950 30,950 22,950 22,950 26,950 30,950 30,9501 600 600 600 600 600 600 600 600 600 600 600 600 600 600 600 18,000j 17,1001 17,1001 17,100 17,100 17,100 17,100 17,100 17,100 17; 100 17,100 17,100 17,100 17,100 17,100 30,560 40,540 47,540 49,790 47,790 47,790 48,790 49,790 49,790 49,790 41,790 41,790 45,790 49,790 49,790 2000 2001 1,140 1,140 28,9501 28,950 600 600 17,100 17,100 47,790 47,790 2002 1,140 29,950 600 17,100 48,790 2003 1,140 30,950 600 17,100 49,790 NPV (84-03): 9,919_ 203,344 5,108 148,780 367,151 NPV (84-93): NPV (94-03): 7,218 7,005 136,862 172,437 3,687 3,687 108,270 105,072 256,037 288,200 -128, Annex 8 Table 9.3 Page 29 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Explanations: I______ Forestry Model (MeanAnnual Increment Basis, profits per hectare): $12 _annual: Improved Extensive Shrimp Farming (profits per hectare): year: |____________ ($312) _1st | total $488 from shrimp farming $0 income from wood cutting costs ($800) investment __________ 7year 2: _ $788 year 3-5, 7-11, 13vear 6, 17: year 12: Shore Erosion (value of lost land): lannual average: ______ _____ Contribution .Discount to Fisheries annual: Rate: __ . _ $1,238 $1,038 $438____ $150,000 (per hectare): $180 10% _ _ _ _ _ _ _ _ _ -129- Annex Page 8 Table 9.2 28 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Forestry (US$1,000) Shrimp Farming (USS 1,000) year Shore . CUSS1,000) Fisheries (USS 1.000) l 7 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 NPV (1994-2003) 7 ~~~~~~~~~~~~~~~~~~~~~~Tot | 540 -3,432 150 8,100 5,358 540 8,668 150 8,100 17,458 540 540 540 540 540 540 540 540 13,618 13,618 13,618 11,418 13,618 13,618 13,618 13,618 150 150 150 150 150 150 150 150 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 22,408 22,408 22,408 20,208 22,408 22,408 22,408 22,408 3,3181 62,844 922 49,771 116,855 -130- Annex 8 Table 9.1 Page 27 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Mangrove Wetlands (1,000 ha) Year Mangrove Forest (1,000 ha) Annual Dev. Total Total Total Area Area of Barren Lands (1,000 ha) (1,000 ha) Area of Shrimp Farming hrm Areaof ( ha) 1994 200 45 11 11 1995 200 45 11 0 1996 200 45 11 200 200 200 200 200 200 200 45 45 45 45 45 45 45 11 11 11 11 11 11 11 1997 1998 1999 2000, 2001 2002 2003 144 [1 + 2 + 31 200.0 144 200.0 144 200,0 144 144 144 144 144 144 144 200.0 200.0 200.0 200.0 200.0 200.0 200.0 t3] (2] [1] _ 0 0 0 0 0 0 0 - 131 Annex 8 - Table 8.3 Page 26 of 31 , Mangrove Wetlands in Minh Hai - Area Performance assuming Best Practice (Scenario2) Exolanations: Forestry Model (Mean Annual Increment Basis, profits per hectare): lannual: T12 = Improved Extensive Shrimo Farming (profits per hectare): $288 total 1st year: $488 from shrimp farming $600 from wood cutting ($800) investment costs .__________ Shore Erosion vear year year year 2: 3-5, 7-11, 136, 1 7: 12: $788 _ $1,238 $1,038 $438 (valueof lost land): lannual average: $600,000_ Contribution to Fisheries (per hectare)l annual: Discount Rate: $180 10 % -132- Annex 8 TableT9. 3 Page 29 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Explanations: Forestry Model (MeanAnnual Increment Basis, profits per hectare): J12 2 1 annual: Improved Extensive Shrimp Farming (profits per hectare): 1st year: ($312) total $488 from shrimp farming $0 income from wood cutti n ________ Shore Erosion year year year year 2: 3-5, 7-11, 136, 17: 12: (valueof ($800) $788 $1,238 $1,038 $438 lost land): lannualaverage: $150,000 Contribution to Fisheries (per hectare) . Discount Rate:_~annual: Discs Rte c $180 10 °6 investment costs _ . - MangrovePlantationfor Sea Dike Protection Savethe Child en/UK; WFP4617 Source:Serene,basic model 11with adjustments; Basic data: Landallocation Ihectares): remarks: 100kmlengtli, 50m averagevwth 500 InvestmentCost (perhectare) Total: seed: planting: administration: $55 OperatingCosts (perhectarel: maintenance/guard: 1st cutting: 2nd cutting: final cutting: $20 $31 $60 Output (stere per hectare): poles: fire wood: $15 . $20 $20 first three years 9 Year y year 22 year 30 $135 1st cutting: 2nd cutting: final cutting: 40 output levels are conservativeestimates 20 0 100 50 20 I w store): Output prices (per poles: fire wood: Saved Costs of Dike Maintenance: $10 $5 prices (in US$)are assumedto be constant annual savingsfor 100km seadikes, averageannualdike repair 4617: pp. 31, 871;assume costs: 314,350 persondays (WFP 1 pers. day - US$ 1 and 20% of repair costs due to absence $62,870 starting year 10 ________l_ wm of mangovecover; full protectionfunction achievedin year G wh~~~~~~~~~~~~~~~~vlen mangrovemoredeveloped _ $0 year 1-4 $31,435year 5-9 2 Contributionto FisheriesIS per hectarel: $0 year 10-30: year 5-9: $50 averageprice of fishl/shellfisihoutput is assumedto be US$ 1 $25 10% DiscountRate: RotationCycle: year 1-4: _30 years I. w °3 H o I-. 0- MangrovePlantationfor SeaDike Protection (US 1,000i o Investment Cost, seed: planinng: 2 1 7.5 10 10 edmnistfetlion: 3 4 5 6 7 8 10 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 28 29 30 o o 0 68 0 0 68 ___ = _ = = - - _ _ - - Operating Costs: maintenance/ guard: 10 10 10 _ 0 0 0 0 cutting: 0 0 Sub-total: 28 10 10 10 0 0 0 0 ……… Wood at USS 10/ste Wood at USS 5/ste Fish Subtotal: 0 0 0 0 0 0 0 0 13 13 13 13 13 13 Dike Maintenance: 0 0 0 31 31 63 -10 -10 -10 31 44 75 Output: Bnlance: -28 Balance INPV): 0 - - 0 0 0 ol 0 o 0 16 - 1 - 0 0 _ 0 - 0 0 0 0 0 0 0 _ 0 0 0 o 0 01 30 o0 o 0 30 =_… … … … 0 0 … 0 o … 0 - 0 0 25 25 _ 25 25 25 25 25 25 25 25 25 25 25 25 25 25 200 250 25 25 25 475 63 63 63 631 63 63 63 63 63 0 -……… 13 13 0 s50 o_ 13 25 63 25 251 25 251 25 25 25 25 25 25 25 25 25 25 25 25 25 100 125 25 25 25 250 63 63 63 63 63 63 63 63 63 63 63 63 63 75 75 110 88 88 88 88 88 88 88 88 88 88 283 63 888 88 88 BB 8888 88 88 63 88 470 ____ S532,563 Balance NPVIIhNPV _ __h; #1.065 IRR:45% |Balance 1984-1993 (NPVI: _ ………_ 09 013 I-i D 0 t-h -l tox - 135 - ANNEX Page 1 of 9 18 VIET NAM ENVIRONMENTAL PROGRAM AND PROLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION SOCIALIST RSPUBLIC Independence - Freedom NATIONAL THM SOCIALIST OF VIETNAM - Happiness ASSEMBLY OF REPUBLIC 0P VIlTNAM IX Legislature, 4th Session (from 06 to 30 December 1993) LAW ON ENVIRONMENTALPROTECTION The environmentis of special importanceto the life of humans and other living creatures as well as to the economic, cultural and social development of the country, the nation and mankind as a whole. In order to raise the effectiveness of state management and the responsibiities of the administration at all levels, of state agencies, economic and social organizations, units of the People's Armed Forces and all individualswith respect to environmentalprotection with a view to protecting the health of the people, ensuring the right of everyone to live in a healthy environmentand serving the cause of sustainabledevelopmentof the country, thus contributing to the protection of regional and global enviromnent; Pursuant to Article 29 and Article 84 of the 1992 Constitutionof the SocialistRepublic of Vietnam; This law provides for the protection of the envirorunent. - 136 - Page ANNEX 9 2 of 18 Chapter I GENERAL PROVISIONS Article 1 The enviromnent comprises closely inter-related natural factors and man-made material factors that surround human beings and affect life, production, the existence and development of man and nature. Environmental protection as stipulated in this law includes activities aimed at preserving a healthy, clean and beautiful environment, improving the environment, ensuring ecological balance, preventing and overcoming adverse impacts of man and nature on the environment, making a rational and economicalexploitation and utilizationof natural resources. Article 2 In this law the below-citedterms shall have the following meanings: 1- Componentsof the environmentmean factors that constitutethe environment:air, water, soil, sound, light, the earth's interior, mountains, forests, rivers, lakes, sea, living organisms, ecosystems, population areas, production centers, nature reserves, natural landscapes, famed beauty spots, historical vestiges and other physical forms. 2- Wastes mean substances discharged from daily life, production processes or other activities. Wastes may take a solid, gaseous, liquid or other forms. 3- Pollutants mean factors that render the environmentnoxious. 4- Environmentalpollutionmeans alternationin the propertiesof the environment,violating environmental standards. 5- Environmentaldegradationmeans qualitativeand qualitativealteration in the components of the environment, adversely affecting man's life and nature. 6- Environmental incidents mean events or mishaps occurring in the process of human activities, or abnormal changes of nature causing serious environmental degradation. EnvironmnentalIncidentsmay be caused by: - 137 - Page ANNEX 9 3 of 18 a) Storms, floods, droughts, earth cracks, earthquakes, landslides, ground subsidence, volcanic eruptions, acid rain, hails, climaticchanges and other natural calamities; b) Fires, forest fires, technical failures at production or business establishments or in economic, scientific, technical, cultural, social, security or defence facilities, causing damage to the enviromnent; c) Accidents in the prospection, exploration, exploitationor transportation of minerals or oil and gas, pit collapse, oil spouts and spills, pipeline breaks, shipwrecks, accidents at oil refineries and other industrialestablishments; d) Accidents in nuclear reactors, atomic power plants, nuclear fuel producing or reprocessing plants or radioactive material storages. 7- Environmentalstandardsmean norms and permissiblelimits set forth to serve as a basis for the management of the environment. 8- Clean technologymeans a technologicalprocess or technical solution either causing no environmentalpollution or generatingpollutants at the lowest level. 9- Ecosystemmeans a systemof groups of living organismsexistingand developingtogether in a given environment, interacting with one another and with that environment. 10- Biodiversity means the abundance in gene pools, species and varieties of living organisms and ecosystemsin nature. 11- Environmentalimpactassessment(E.I.A) means the process of analyzing,evaluatingand forecasting the effects on the environmentby socioeconomicdevelopmentprojects and plans, by production and businessestablishments,and economic,scientific,technical,medical, cultural, social, security, defence or other facilities, and proposing appropriate solutions to protect the environment. Article 3 The State shall exercise unified management of environmentalprotection throughout the country, draw up plans for environmentalprotection, build up capabilities for environmental protection activities at the central and local levels. The State shall adopt investmentpoliciesto encourageorganizationsand individualsat home and abroad to invest under different forms in, and apply scientificand technologicaladvances to, environmental protection, and protect their lawful interests therein. - 138 - MONEX 9 Page 4 of 18 Article 4 The State shall be responsible for organizing the implementationof education, training, scientific and technological research activities and the dissemination of scientific and legal knowledge on environmentalprotection. Organizationsand individualsshall be liable for participatingin the activities mentioned in this Article. Article 5 The State shall protect national interests with regard natural resources and the environment. The State of Vietnam shall broaden cooperativerelationswith other countries in the world, with foreign organizationsan individualsin the field of environmentalprotection. Article 6 Environmentalprotection is the common cause of the entire population. All organizations and individualsshall have the responsibilityto protect the environment, observe the environmental protection legislation, have the right and obligation to detect and denounce any act in breach of the environmentalprotection legislation. All foreign organizations and individualsoperating on Vietnamese territory shall abide by Vietnam's environmentalprotection legislation. Article 7 Organizationsand individualsmaking use of componentsof the environmentfor production or business purposes shall, if necessary, contribute financially to environmentalprotection. The Government shall regulate the circumstances, levels and modalities for the financial contribution mentioned in this Article. Any Organizationor individualwhose activitiescause damage to the environmentshall make compensation therefor according to regulationsby the law. - 139 - ANNEX 9 Page 5 of 18 Article 8 The National Assembly, the People's Councils, the Vietnam Fatherland Front and its member organizations, within the scope of their tasks and powers, shall be responsible for the control and supervision of the implementationof the environmentalprotection legislation. The Govermnent and the People's Committees at all levels shall be responsible for organizing the implementationof the environmentalprotection legislation. Article 9 All acts causing environmentaldegradation, environmentalpollution or environmental incidents, are strictly prohibited. Chapter n PREVENTIONAND COMBATAGAINST ENVIRONMENTALDEGRADATION ENVIRONMENTALPOLLUTIONAND ENVIRONMENTALINCIDENTS Article 10 The State offices, within the scope of their functionsand tasks, shall be responsible for organizing the investigation,study and evaluationof the existingconditionsof the environment, periodically reporting to the National Assembly on the current status of the environment; for identifyingareas of environmentalpollutionand notifyingthe public thereof and for drawing up plans for the prevention and combat againstenvironmentaldegradation,environmentalpollution and environmental incidents. Organizationsand individuals shall have the responsibility to engage in the prevention and combat againstenvironmentaldegradation,environmentalpollution and environmental incidents. Article 11 The State encourages, and shall create favorable conditions for all organizations and individualsin the rationaluse and exploitationof componentsof the environment,the application of advanced technologyand clean technology,the exhaustive use of wastes, the economicaluse of raw materials and the utilization of renewable energy and biological products in scientific research, production and consumption. - 140 - Page ANNEX 9 6 of 18 Article 12 Organizations and individuals shall have the responsibility to protect all varieties and species of wild plants and animals, maintain biodiversity and protect forests, seas and all ecosystems. The exploitation of biological resources must observe their prescribed seasonal characteristics and areas, using proper methodsand permittedtools and means in order to ensure their restoration in terms of density, varietiesand species, thus preventingecological imbalance. The exploitationof forests must complystrictly with plans and specific stipulationsof the Law on Forest Protection and Development. The State shall adopt plans to involve organizations and individualsin afforestationand greening of waste lands and denuded hills and mountainsto quickly expand the forest cover and protect catchment regions of watercourses. Article 13 The use and exploitation of nature reserves and natural landscapes must be subject to permission by the sectoral management authority concerned and the State management agency for environmentalprotectionand must be registered with the local People's Committeesentrusted with the administrative management of these conservation sites. Article 14 The exploitationof agricultural land, forest land, and land for aquaculturemust comply with land use plans, land improvement plans and ensure ecological balance. The use of chemicals, chemical fertilizers, pesticides and other biological products must comply with stipulations by law. In carrying out production and business activities or constructionworks, measures must be taken to restrict, prevent and combat soil erosion, land subsidence, landslide, soil salination or sulphatation, uncontrolled desalination, laterisation and desertification of land, or its transformation into swamps. Article 15 Organizations and individuals must protect water sources, water supply and drainage systems, vegetation, sanitation facilities, and observe the regulationson public hygiene in cities, urban areas, countryside, populationcenters, tourism centers and production areas. - 141 - ANNEX Page 7 of 9 18 Article 16 In carrying out production, businessand other activities,all organizationsand individuals must implement measures for environmentalsanitation and have appropriate waste treatment equipment to ensure compliance with environmental standards and to prevent and combat environmentaldegradation, environmentalpollution and environmentalincidents. The 'Govermment shall stipulate the nomenclature of environmental standards and delegate the authority at different levels for promulgatingand supervising the implementation of such standards. Article 17 Organizations and individuals in charge of the management of economic, scientific, technical, health, cultural, social, securityand defence establishmentsthat have begun operation prior to the promulgation of this law must submit an E.I.A. report on their respective establishmentsfor appraisal by the State managementagency for environmentalprotection. In case of failure to meet environmental standards, the organizations or individuals concerned must take remedial measures within a given period of time as stipulatedby the State managementagency for environmentalprotection. Upon expiry of the stipulated time limit, if they still fail to meet the requirements of the State management agency for environmental protection, the latter shall report to the higher State authority at the next level to consider and decide on the suspension of operation or other penalizingmeasures. Article 18 Organizations, individualswhen constructing, renovating production areas, population centers or economic, scientific,technical, health, cultural, social, security and defence facilities; owners of foreign investment or joint venture projects, and owners of other socio-economic development projects, must submit E.I.A reports, to the State management agency for environmentalprotection for appraisal. The result of the appraisalof E.I.A reports shall constituteone of the bases for competent authorities to approve the projects or authorize their implementation. The Government shall stipulate in detail the formats for the preparation and appraisal of E.I.A reports and shall issue specific regulations with regard to special security and defence establishments mentioned in Article 17 and in this article. - 142 - ANNEX Page 8 of 9 18 The National Assembly shall consider and make decision on projects with major environmentalimpacts. A scheduleof suchtypes of projects shall be determinedby the Standing Committeeof the National Assembly. Article 19 The importation and exportation of technologies, machinery, equipment, biological or chemical products, toxic substances, radioactivematerials, various species of animals, plants, gene sources and microorganismsrelating to the protectionof the environmentmust be subject to approval by the sectoral managementagencyconcerned and the State managementagency for environmental protection. The Governmentshall stipulate a schedule for each domain and each category referred to in this Article. Article 20 While searching, exploring, exploiting, transporting, processing, storing minerals and mineral products, including underground water, organizations and individuals must apply appropriate technology and implement environmental protection measures to ensure that environmental standards are met. Article 21 While searching, exploring, exploiting, transporting, processing, storing oil and gas, organizations and individuals must apply appropriate technology, implement environmental protection measures, develop preventive plans against oil leakage, oil spills, oil fires and explosions and dispose necessary facilities to response timely to those incidents. The use of toxic chemicals in the process of searching, exploration, exploitation, and processing of oil and gas must be guaranteed by technical certificates and be subject to the control and supervisionby the State management agency for environmentalprotection. Article 22 Organizations, individualsoperating means of water, air, road and rail transports must observe environmental standards and be subject to the supervision and periodic inspection for compliance with environmental standards by the relevant sectoral management agency and the State managementagencyfor environmentalprotection. The operationof transport means failing to meet stipulated environmental standards shall not be permitted. - 143 - ANNEX Page 9 of 9 18 Article 23 Organizations, individualsproducing, transporting, trading using, storing or disposing of toxic substances, inflammableor explosivesubstances,must complywith regulationson safety for human and other living beings and must avoid causingenvironmentaldegradation,pollution or incidents. The Government shall stipulate a list of toxic, inflammable or explosive substances mentioned in this Article. Article 24 The siting, design, constructionand operationof plants in the nuclear industry, of nuclear reactors, facilities for nuclear research, for the production,transportation,utilizationand storage of radioactivematerials, for the disposalof radioactivewastesmust comply with legal provisions on nuclear safety and radiation safety and with regulationsby the State managementagency for environmental protection. Article 25 Organizations, individualsmaking use of machinery,equipment, materials with harmful electro-magnetic radiation or ionizingradiation must comply with legal provisions on radiation safety and must carry out regular check and environmentalimpact assessmentof their facilities and report periodically to the State managementagency for environmentalprotection. Article 26 The choice of sites for collecting, dumping and treating refuse or pollutants and their transportation must comply with regulationsby the State managementagency for environmental protection and by the local authorities concerned. Waste water, refuse containing toxic substances, pathogenetic agents, inflammableor explosive substances, non-degradablewastes, must be properly treated before discharge. The State management agency for environmentalprotectionshall stipulate a schedule of waste water and refuse mentioned in this Article and supervise their treatmentprocess before discharge. Article 27 The burial, lying in state, embalment, interring, cremation and transport of corpses or remains of the dead must utilize progressivemethods and means and comply with provisions of the Law on Protection of Public Health to ensure environmentalhygiene. - 144 - Page ANNEX 9 10 of 18 The Administrationat all levels must plan for burial, cremation sites and guide people to gradually abandon backward practices. Cemeteries, crematoria must be located far away from population areas and sources of water. Article 28 Organizations, individuals in the course of their activities must not cause noises or vibrationsthat exceedpermissiblelimits, harming the healthof surroundingpeople and adversely affecting their life. The People's Committeesat all levels shall be responsiblefor the implementationof noise control measures in areas of hospitals, schools, public offices, and residential quarters. The Governmentshall promulgateregulationsto restrict, and to proceed towards the strict prohibition of the production and firing of firecrackers. Article 29 The following activities are strictly prohibited: 1- Burning and destruction of forests, uncontrolled exploitationof minerals leading to environmental damage, destroying ecological balance; 2- Discharge of smoke, dust, noxious gas, bad odors causing harm to the atmosphere; emission of radiation, radioactivity exceeding permissible limits into the surrounding environment; 3- Discharge of grease or oil, toxic chemicals, radioactive substances exceeding permissible limits, wastes, dead animalsor plants, harmful and infectivebacteria and viruses into water sources. 4- Burial, discharge of toxic substancesexceedingpermissible limits into the soil; 5- Exploitation, trading in precious or rare species of plants and animals identified in the schedule stipulated by the Government; 6- Importation of technology and equipment not meeting environmental standards; importation, exportation of wastes; 7- Use of methods, means, instruments causing massive destruction in exploiting or harvesting animal and plant resources. - 145 - ANNEX 9 Page 11 of 18 Chapter III REMEDY OF ENVIRONMENTALDEGRADATION, ENVIRONMENTALPOLLUTION, ENVIRONMENTALINCIDENTS Article 30 Organizations, individualsengaged in production, business and other activities that cause environmental degradation, environmentalpollution, environmentalincidents must implement remedial measures as specifiedby the local People's Committeesand by the State management agency for environmentalprotection, and shall be liable for damages according to regulations by the law. Article 31 Organizations, individuals allowing radioactivity, electro-magnetic radiation, ionizing radiation to exceed permissible limits must take immediatemeasures to control and remedy the consequences, timely report to the relevant sectoral management agency and to the State management agency for environmentalprotection, as well as to the local People's Committee to resolve the problem. Article 32 The remedy of an environmentalincidentincludes: eliminatingthe cause of the incident; rescuing people and property; assisting, stabilizingthe life of the people; repairing damaged facilities; restoring production;sanitizingthe environment,preventingand combattingepidemics; investigating, collecting statistics on damages, monitoring changes to the environment; rehabilitating the environmentof the affected area. Article 33 Persons who detect signs of an environmentalincident must immediatelynotify the local People's Committee, the nearest agency or Organizationfor timely action: Organizations,individualsat the site of the environmentalincidentmust take appropriate measures to timely remedy it and immediatelyreport to the superior administrative authority, the nearest People's Committeeand the State managementagencyfor environmentalprotection. - 146 - ANNEX 9 Page 12 of 18 Article 34 The chairman of the People's Committeeof the localitywhere the environmentalincident occurs is empowered to order an emergency mobilizationof man power, materials and other means for remedial actions. If the environmental incidentoccurs.in an area covering several localities, the Chairmen of the respective local People's Committeesshall cooperate to take remedial actions. In case the incident is beyond local remedy capability, the Minister of Science, Technology and Environment in conjunction with the heads of the agencies concerned shall determine the applicationof remedial measures and report to the Prime Minister. Article 35 In case the environmental incident is of special severity, the Prime Minister shall determine the application of urgent remedial measures. When such incident has been brought under control the Prime Minister shall determine the revocation of the application of the urgent remedial measures. Article 36 The agencies which are empoweredto mobilize manpower, materials, and other means to remedy environmentalincidents must reimburse the mobilized organizations, individualsfor their expenses according to regulationsby the law. Chapter IV STATE MANAGEMENTOF ENVIRONMENTAL PROTECTION Article 37 The scope of State management of environmentalprotection includes: 1- Promulgating, and organizing the implementation of, statutory instruments on environmental protection; promulgating systems of environmentalstandards; - 147 - ANNEX 9 Page 13 of 18 2- Developing, and guiding the implementation of, strategies and policies of environmental protection, plans to prevent, control and remedy environmental degradation, environmental pollution, environmentalincidents; 3- Establishing and managing environmentalprotection facilities, and facilities relating to environmentalprotection; 4- Organizing, establishingand managingmonitoringsystems, periodicallyassessing the current state of the environment, forecastingenvironmentalchanges; 5- AppraisingE.I.A. reports on projects and on production or business establishments; 6- Issuing, revoking certificatesof compliancewith environmentalstandards; 7- Supervising, inspecting, checking the observance of environmental protection legislation;settling disputes, appealsor complaintsconcerningenvironmentalprotection; dealing with breaches of environmentalprotectionlegislation; 8- Training personnel in environmental science and management; educating, propagandizing, disseminating knowledgeand legislationin environmentalprotection; 9- Organizing research and development activities and application of scientific and technological advances in the field of environmentalprotection. 10- Developing internationalrelations in the field of environmentalprotection. Article 38 The Government shall, pursuant to its power and responsibility,exercise unified State management of environmentalprotection throughout the country. The Ministry of Science, Technology and Environment shall be responsible to the Government for exercising the function of State management of environmentalprotection. All ministries, ministry-level agencies and other Government bodies shall, within the scope of their respective functions, powers and responsibilities,cooperate with the Ministry of Science, Technology and Environment in carrying out environmental protection within their sectors and in establishmentsunder their direct supervision. The People's Committeesof provinces and cities directly under the Central Govermnent shall exercise their State managementfunction for environmentalprotection at the local level. - 148 - ANNEX 9 Page 14 of 18 The Services of Science, Technology and Environment shall be responsible to the People's Committees of provinces and cities directly under the Central Government, for environmentalprotection in their localities. Artide 39 The system of organization, functions, responsibilities and powers of the State management agency for environmentalprotection shall be determined by the Government. Artide 40 The State managementagency for environmentalprotection shall carry out its function of specialized inspection on environmental protection and be responsible to coordinate with specialized inspectors of the ministries and sectors concerned in the protection of the environment. The Organization, obligations, powers, activities and coordination of specialized inspectors in the protection of the environmentshall be determined by the Government. Article 41 During the inspection process, the Inspection Team or Inspector is empowered to: 1- Require the organizations, individualsconcerned to provide documents and reply to questions on matters necessary for inspection; 2- Conduct technical control measures on site; 3- Decide to temporarily suspend, in case of emergency, activities which threaten to cause serious environmental incidentsand be responsible for such decision before the law, and at the same time, immediately report the case to the competent State agency for decision or recommend the latter to suspend activities likely to cause environmentalincidents. 4- Deal within their competenceor recommendthe competent State agency to deal with breaches of the law. Article 42 Organizations, individualsmust create favorable conditions for the Inspection Team or the Inspector to carry out their functions and must observe the decisions of the InspectionTeam or the Inspector. - 149 ANNEX 9 Page 15 of 18 Artide 43 Organizations,individualsare entitledto appeal to the Head of the agency which decides the inspections against the conclusions and decisions adopted by the Inspection Team or the Inspector with regard to their establishments. Organizations, individualshave the right to complain,denounceto the State management agency for environmentalprotectionor other competentState agenciesabout activitiesin breach of environmentalprotection legislation. Agencies receiving complaints, denunciationsshall be responsible for their examination and resolution in accordance with regulationsby the law. Article 44 In case there are several organizations, individuals operating within an area where environmentalincidents,environmentalpollutionor environmentaldegradationoccur, the power to determinethe responsibilityassignedto those organizations,individualsfor remedial measures is defined as follows. 1- For environmental incidents, environmentalpollution or environmental degradation occurring within a province or a city directly under the Central Government, the responsible parties shall be determined by the specialized environmental protection inspector of that province, city, or proposedand reported by the latter to the Chairmanof the People's Committee of that province or city for considerationand decision. If one or more parties disagree with that decision, they shall be entitled to appeal to the Minister of Science, Technology and Environment. The decision of the Minister of Science, Technology and Environment shall prevail. 2- For environmental incidents, environmentalpollution or environmental degradation occurring in two or more provinces, or cities directly under the Central Government, the responsible parties shall be determined by the specializedenvironmentalprotection inspectorof the Ministry of Science, Technologyand Environmentor proposed and reported by the latter to t Minister of Science, Technology and Environmentfor considerationand decision. If one or more parties disagree with the decisionof the Ministerof Science, Technologyand Environment, they shall be entitled to appeal to the Prime Minister for decision. - 150 - ANNEX 9 Page 16 of 18 Chapter V INTERNATIONALRELATIONSWITH RESPECT TO ENVIRONMENTALPROTECTION Article 45 The Government of Vietnam shall implementall internationaltreaties and conventions relating to the environment which it has signed or participated in, honor all international treaties and conventionson environmentalprotection on the basis of mutual respect for each other's independence,sovereignty, territorial integrity and interests. Article 46 The Government of Vietnam adopts priority policies toward countries, international organizations, foreign organizationsan individualswith respect to environmentalmanpower training, environmentalscientific research, clean technology application, developmentand implementationof projects for environmentalimprovement, control of environmental incidents, environmental pollution, environmentaldegradation, and projects for wastes treatment, in Vietnam. Article 47 Organizations, individualsand owners of transportationmeans which, in transit through the Vietnameseterritory, carry potential sources of environmental incidents or environmental pollution must apply for permission, declare and submit to the control and supervision by the State managementagency for environmentalprotection of Vietnam. Any breach of Vietnamese environmentalprotection legislation shall, depending on the extent of the infringement, be dealt with according to Vietnamese law. Article 48 Any dispute concerning environmentalprotection on the Vietnamese territory in which one or all parties are foreigners shall be settled according to Vietnameselaw, taking into account internationallaws and practices. Any dispute between Vietnam and other countries in the field of environmental protection shall be settled on the basis of negotiation, taking into account internationallaws and practices. - 151 - ANNEX 9 Page 17 of 18 Chapter VI REWARDS AND DEALINGWITH BREACHES Article 49 Organizations, individualshaving good records in environmentalprotection activities, in the early detection and timely report of signs of enviromnentalincidents, in the remedy of environmental incidents, environmentalpollution, environmentaldegradation, in the prevention of acts, which damage the environment, shall be rewarded. Those who suffer damage to their property, health or life, while participatingin the protectionof the environment, in the remedy of environmentalincidents, environmentalpollution, environmental degradation and in the combat against activitiesviolating environmental protection legislation, shall be compensatedaccording to regulationsby the law. Artide 50 Those who commit acts of destruction or cause damage to the environment, who disregard the order of mobilizationby the competent State agency upon the occurrence of environmental incidents, who fail to implementregulationson environmentalimpact assessment, or infringe other legal provisions for environmentalprotection shall be dealt with administrativelyor be criminally prosecuted, depending on the nature and extent of the infringement and the consequences. Article 51 Those who take advantageof their positionsand powers to infringe environmental protection legislation, to protect persons infringingthe environmentalprotection legislation, whose lack of responsibilityallows environmentalincidentsor environmentalpollution to occur, shall be disciplinedor be criminally prosecuted, depending on the nature and extent of the infringementand the consequences. Article 52 Organizations, individualsthat commit acts of violationagainst the environmental protection legislation, causing damage to the State, to other organizationsor individuals, shall, in addition to the penalties specified in Article 50 and 51, of this Law, compensate for the damages and costs of remedying the consequences,according to regulations by the law. - 152 - Page ANNEX 9 18 of 18 Chapter VII IMPLEMENTATION PROVISIONS Article 53 Domestic or foreign organizations, individuals that have caused serious damage to the enviromnent prior to the promulgation of this Law, with long-term adverse impacts on the environment and the health of the people shall, depending on the extent of the consequences, be liable for the damages and the rehabilitation of the enviromnent, according to regulations by the Government. Article 54 This Law shall take effect from the date of its promulgation. All previous stipulations which contradict this Law are revoked. Article 55 The Government shall regulate in detail the implementation of this Law. This Law was passed on 27 December 1993 by the National Assembly of the SocialistRepublic of Vietnam, 9th Legislature, at its 4th Session. CHAIRMAN OF THE NATIONAL ASSEMBLY Signed: Nong Duc Manh - 153 - Annex 10 Page I of 15 VIET NAM ENVIRONMENTALPROGRAMAND POLICY PRIORITIES FOR AN ECONOMYIN TRANSITION Environment-RelatedInstitutionaland RegulatorySystem Institutional Framework 1. The inter-relationshipbetweenmanagementof environmentalconcernsand developmentof a sound institutionalframeworkis centralto addressingthe environmentalissue. Developmentof a sound institutional framework is essential to effective environmental management. Environmental and development objectives have to be pursued within a strong institutional context, reflecting wellorchestrated policies, priorities and investment decisions, at a pace accommodativeof growth. In Vietnam, the impacts of economic and social policy have not always been conducive to sound environmentalmanagement. While there is generalawarenessof the need to adoptenvironmentallysound strategies among policy makers and planners, such awareness is not adequatelybacked by supportive institutionsor enabling legislationfor conductingreviews, impactassessments,interagencycoordination or monitoring. Environmentallysustainableprinciples have not been adequatelyincorporatedinto the overall developmentprocess, and institutions have not been appropriately restructured to meet new challenges. 2. Institutionalframeworkat the National(Center),Provincial, Districtand local level reflects the predominance of the Communist Party within the legislative, the executive and the technical Ministries/Departmentsof Government. 3. The constitutionof Viet Nam states that the National Assemblyis the highest legislative body and the council of ministers is the highest executive body of the state. The constitutionalso recognizes the leading role played by the party in the developmentof the state and Vietnamesesociety. The National Assemblymeets twice a year for about one week and when it is not in session the Council of Ministers assumes it's responsibilities. The fifteen membersof the Councilof Ministers includingthe Chairman are elected by the National Assemblyfrom among the AssemblyMembers. The Chairmanof the Council acts as the President of the country. The Council of Ministers supervisesthe activities of the provincialPeople's committeesrescindingor amendingthe decisionsof the Committeesif the decision is deemed to be detrimentalto the interest of the people. 4. Below the Central governmentapparatusthere are three levels of administration. The first level is that of the provinces includingthe three cities of Hanoi, Haiphong and HCMC, and the special zone of Vung Tau-Con Dao. The second level is that of the urban quartersand rural districts. The last administrativelevel is the urban blocks and rural communes. 5. At each level of the administrationthere are directlyelected People's Councilswhich in turn appoint the People's Commnittees.The People's Commnitteeis responsibleto the electors and.to higher - 154 - Annex10 Page 2 of 15 administrativeauthoritieswho have the mandateto rescind their decisions. The provincialgovernnents represent an importantpower block withinViet Nam and they play a major role in formulatingregional developmentstrategies. 6. The technicalor line Ministriesof Governmentare generallyheadedby a Minister and two Vice Ministers who direct the work of the Ministriesand their departments. The Ministriesare assigned functions by the Council of Ministers, which in turn is responsible to it, through the Minister. All Ministries have staff at the provincialand district levels, being located in sub departments. These staff have dual responsibility,and are accountableto their departmentalsuperiors for technical work, and to the People's Committeefor administrativematters and implementationof the developmentplans. In most cases, the Ministriesalso overseethe functioningof several institutesand researchunits, and are assigned functionsthrough sectoral laws or Governmentdecrees. At the provincial level, operating departments assist the Peoples Commnittee in carrying out administrativeand operationalfunctions. Enterprises and factories under provincial authoritiesare managed through these authorities, through groupings called Unions. 7. The State Committee for Sciences (SCS) was restructured in October 1992 to form the Ministry of Science, Technologyand Enviromnent(MOSTE). The national EnvironmentalProtection Law (NLEP), approvedby the NationalAssemblyin December 1993, and the implementingregulations to it (Decree 175/CP), promulgated in October 1994, sets out the functions of MOSTE as follows: management of research issues relating to science, technology and environment; preparation of environment assessment of the economy and of environmental action plans; implementing the environmentalprotection law and its implementingdecree; codification of regulation and standards; evaluatingenvironmentimpactassessmentsand coordinationwith the StatePlanningCommitteeand other sectoral Ministries. MOSTE's Departmentof Environmentand Natural Resources, which became the National Environment Agency (NEA) in 1994, has the responsibility of undertaking the public administrationof environmentalprotection on behalf of the Minister of MOSTE. Sectoral Organizationswith EnvironmentalPlannine and AssessmentFunctions 8. The Governmenthas enjoinedthe sectoral ministries to includeenvironmentalprotectionin the mandates of their Science and TechnologyDepartments. Exceptfor MOSTE, sectoral ministrieshave direct technical links with the Provincial services for their respective sectors. Although the sectoral ministries play an important role in establishingpolicies, programs guidelines for investment, they are not directly in control of implementationat the field level, except for enterprises run by the Central Government. Much of the implementation responsibility rests with the provinces, and district governments. 9. The Ministry of Agriculture and Food Industries (MAFI) has yet to establish an exclusive unit focusing on environmentalissues. Instead, subject matter specialistsorganize special programs on livestock management, tree cropping, pesticide usage, sericulture and reclamationof bare land, as an effort not only for increasing income and productivity, but also conserving and protecting the environment. One of the most importantprograms undertaken by Government is under Decree 327, which covers land management issues, especiallyof bare hills and coastal areas. Schemesunder this program aim at stabilizingand restoringthe ecologicalbalanceof fragile zones and "sedentarizing"ethnic minorities. MAFI shares responsibilityfor implementationwith the Ministry of Forestry and the Ministry of Fisheries and Aquatic Resources. - 155 - Annex 10 Page 3 of 15 10. Besides implementationof these special programs, the Ministry carries responsibilityfor policy matters, preparation of annual and 5 year plans, scientific research, transfer of technology and marketingof products, through state run enterprises. Increasingly,state run enterprisesare being handed over for private managementin sectors of food processing, plant protection, fertilizer production and animal feed. At the provincial and district level there has been a merger of the Department of Agricultureand Forestry in many provinceswith two-waycontrolof its performanceand activities. One channel of control is through the People's Committee(for day to day operations),and the other through the MAFI for technical monitoringand nationalproject support. 11. The Ministryof Water Resources(MWR)has nationwideresponsibilityfor managementand developmentof Water Resources. At the nationallevel the Ministry is structured into the Division of Management,Research and Trainingand Engineering. The Divisionof Managementhas ten Departments looking after planning, finance, construction, irrigation/drainage,flood control and dike management. The Division relating to research, training and engineeringhas several institutionalenterprisesunder its supervision. MWR deals mainly with the design and construction of irrigation projects, and is only marginally involved in the water supply sector. MWR has an advisory role assisting the Council of Ministers in matters concerningconflicts of interestsin the use of surface water resources, and it has to be consulted in all matters related to the two main delta rivers, the Mekong and the Song Hong (Red River). A number of factors which affect the quantity and quality of water are outsideMWR's control. These include, among others, the deforestationand subsequent flooding, water quality deterioration, sedimentationand siltation. Effectivewater quality managementprograms will depend on an overall environmentalpolicy in other relevantsectors (agriculture, forestry, industry, etc.). 12. The Institute of Water Resource Planning and Management bears responsibility for conductingenvironmentalimpactassessmentstudies, includingissues of erosion, siltationsalinity, water quality and pollution standards. The existing institutionalstructure for handling environmentalrelated issues is weak, and the process of Environmentalimpactassessmenthas just been introduced. The Water Law, for regulatingwater use has been drafted and is expectedto be submittedto the NationalAssembly this year. 13. The Ministry of Fisheries and AquaticProducts (MFAP) is separate from agriculture. Its main responsibilitiesinclude fish processing, import and export of fishes and overall control of fishing resources. The Ministryof Fisheries overseesa numberof research institutes(primarybeing the research institutes of Aquaculture, the hatcheriestraining centers), and state enterprises(aquaculturefarms, feed processing mills and fish meal plants). An importantaspect of fisheries developmentin Vietnam is its intricate link with mangrove areas and wetlands, which are ideal for shrimp breeding. As clearing of mangroves and wetlands are found lucrative for shrimp cultivation, large-scale encroachments are occurring on thesesensitiveeco-zones. Thus, programsfor forestryprotectionand fisheriesdevelopment, within these areas may have competingobjectives. It is only recentlythat a carcians effort is being made to combinemangroveprotectionwith shrimp productionand maintaina balancebetweenforest and water cores. 14. Prior permissionof the Ministry of Science Technologyand Environmentis not taken for degradativeaquacultureand forest exploitation.Neitherare impactassessmentstudies conducted. There are no environmentalunits to assess impacts or take mitigatorymeasures. Pollution control at the ports and fishing centers is the responsibilityof the inspection teams of the Fisheries Ministry itself. The Banking network is well integrated into the activities of the Ministry of Fisheries at the national, provincial, district and communelevel for credit disbursementand loan payback. The National Fishery Companyunder the Ministry of Fisheries caters to the needs of the domesticmarket. Seaprodex(a state - 156 - Annex 10 Page 4 of 15 enterprise) processes and exports fish and fish products from 3 regional offices and 18 factories within 9 provinces. It has joint venture trading companies with district governments, and shrimp agriculture joint ventures with local cooperatives,provincialgovernmentsand foreign firms. 15. At the provincial level, the Fisheries Departmentoperates enterprises in 27 provinces, to sell goods and servicesto fishermen. These firms can exportand import independentlyand manypossess large brackishwater aquacultureponds. Though subjectto the managementof the Ministry of Fisheries, for purposes of strategy directionthese units are under the control of the ProvincialPeoples Committee, which has its own fisheries technical service. Hence provincial policies, programs and strategies may sometimesdiverge from those of the central ministry. 16. At the district level, almost every district in Vietnam operates a fresh water fish hatchery, not all through the Fisheries Department. Joint venturesare being encouragedby the Ministry between provincial and district enterprises. In such cases the local governmentprovides the land for the project, as well as the capital investmentand infrastructure. 17. The Ministry of Forestrv (MOF) is responsiblefor protectionof forest resources and forest ecosystems, including wildlife and endangered plant species. It comprises of 10 Departments and 100 staff officers with functions of Planning, Finance, Research, Forest Management and Protection, Sericulture, Silviculture, Forestry Industry, Resettlementand inspection. The Department of Forest Managementand Protection and the Departmentof Human SettlementFixed cultivation have staff at the provincial, district level located in sub-departments. These staff are accountable to their department superiors for their technical work and from them they receive technical guidance, information and support. Their answerability to the People's Committee on administrativeand general issues is also integral to decision making and implementation. The Ministry also oversees the functioning of nine research and scientific institutes, the major ones being the Forest Inventoryand Planning Institute, the Forest Science Institute and the Forestry Colleges. 18. The managementof 75 centralstate enterprisesalso rests directlywith the ministrycovering 1 million hectares of forest land. These enterprises are engaged in commercialproduction of wood, export and import of wood products and other forest produce. The Enterprises are engaged in noncommercialactivities like establishmentof schools, health care centers for the populationof the forested area within their jurisdiction. There is a strong move to divest the enterprisesof their non-commercial responsibilities, by entrusting the schools, and health clinics to the concerned line Ministries, and to ensure that the enterprises functionon conmnercialprinciples of non subsidizationand profitability. 19. At the provinciallevel, the Departmentof Forestry assiststhe Peoplescommitteein carrying out state administrativedutiesand conductingproductionoperations. There are about 300 enterprisesand factories under provincial authorities, which are grouped into union, with 30 enterprises to a union. In the mountainous and heavily forested provinces, districts have forest offices of 10 to 15 staff assisting the District Peoples Committee in forestry matters. In districts with limited forest cover, forestry staff are fewer in number and attachedto the Economicbranch of the Peoples District Committee. The forest cadres extend up to the village and commune levels for organizingactivities of forest protection, wood production and reforestation, through brigades. 20. The sedentarizationprograms for the minority population in the mountainousregions are conducted by the Department of Resettlement,under the direction of a Board of Management. The Departmenthas sub-departmentsin 26 provinces. - 157 - Annex 10 Page 5 of 15 21. The Ministry of Labor. Invalidsand Social Affairs (MLISA) is entrusted with the task of reallocation and resettlement of manpower. The Ministry has until now resettled/rehabilitated4.95 millionpeople. Around6-7% of the populationare reportedlyunemployed. Consequently,Government of Vietnam promulgatedDecree 116, under which surplus labor force will be deployed on unutilized land. A number of institutesalong with the Ministryare engaged in a planning exercise, for delineating land use patterns for unutilized land againstunemployedhuman resource. To date, 130 projects have been identifiedunder this program. 22. The Ministry of Construction(MOC) plays a leading role and is often the implementing agencyfor planning, design and constructionof utilities such as water supplyand waste disposalsystems. It has provincial units which take primary responsibilityfor their local tasks. MOC is in the process of revising their norms of construction, to which environmentalnorms must be associated. Its National Institute for Urban and Industrial Projects (NIUIP) is in the process of being restructured and strengthened so as to play a major role in the implementationof the NPESD in the areas of pollution prevention. MOC expects NIUIP to become the enforcementauthority to stop operationswhere strong controls are needed to deal with pollutionproblems. 23. The health sector is organizedas a pyramidof preventativeand curativenetworksunder the Ministry of Health (MOH). Prevention is mainly the responsibilityof the hygiene and epidemiological systems, while treatment and some aspects of preventionand promotion are the responsibilitiesof the medico-healthsystem. The tasks of the Ministry related to water supply and sanitation are health education,promotion of appropriatewater supply and sanitationpractices, implementationof sanitation programs in rural areas and water qualitymonitoring. MOH currently has about 300 staff. The Ministry is also in charge of four research institutes:the Institutesof Hygieneand Epidemiologyin Hanoi, Nha Trang, and Trai Nguyen, and the Institute of Hygieneand PublicHealth in HCMC. MOH has provincial units which take primary responsibilityfor their local tasks. 24. MOH considers itself responsiblefor several priority programs: (a) Environmentalhealth, including (i) environmentalprotection (especiallythe development of strategy and programs to cope with the ever growing pollution problems in the air, water, and land); and (ii) water supply and sanitation(especiallythe improvementof the water supplyand basic facilitiesthroughapplicationof improvedtechnologiesand provision of essential constructionmaterial). (b) Family planning, where MOH has a key role in that it managesall of the funds intended for birth control activities in the provinces. 25. The main functionsof the GeneralDepartmentof Mines and Geologv(GDMG)are: (a) the collection and compilation of data and the executionof general and applied hydrogeologicalresearch, including field surveys and exploratory drilling; (b) the approval and issuance of permits for the use groundwaterby major projects. GDMG has provincialunits which take primary responsibilityfor local tasks. 26. The focal point for studies and researchon environmentfor the Ministry of Energy (MOE) is the Institute of Energy. The Institute has 180 people, out of which 149 are engineers. Seventy percent are graduates from abroad. In 1992one-thirdof the resources of the Institutewere provided for by the Ministry of Energy and two-thirds by consultancywork for the Government, districts, - 158 - Annex 10 Page 6 of 15 communities,and other enterprises. Within the Institute, four servicesare concernedwith environmental issues: (a) Department 12, which is concerned with thermal power stations (emissionsmeasurement and standards, improved technology and efficiency) with Power DevelopmentCompany (PDC1) and the Mining Institute. (b) Department 13, which is concerned with hydroelectric stations(hydropower siting, water quality, soil and erosion effects. in relation with PDC1 and PDC2. (c) DepartmentT16, which is concernedwith new energy sources (research on clean energies like solar energy, wind, biomass, to improve efficiency of households and supervise introduction of improved cooking stoves), undertakes propaganda campaigns against deforestation. (d) DepartmentP6, which is concernedwith environmentalpolicies. They collect information on standards and want to expandtheir capacity in environmentalcollection and monitoring and in training. The Ministry of Heavy Industry (MOHI) is vested with the function of state management 27. of the branches of mechanical engineering, metallurgy, electronics, mining, geology and chemical industry. There are nine corporations and one general department under direct managementof MHI. Each corporation covers a specific branch of the nationaleconomy. These corporations are financially autonomous. The Ministry of Light Industry (MOLI) has state management for the remaining manufacturingsectors which are generallyless polluting. EnvironmentLegislationand Standards Decree 175/CPhas the status of a governmentregulatory order under the legal framework 28. of the NLEP. It regularizesthe structure of administrativeresponsibilityfor environmentalmanagement at the Stateand local governmentlevels, consistentwith administrativemechanismsin other line agencies. This means that local environmentalmanagementauthority is delegatedto the provincialDepartmentsof Science, Technologyand Environment(DOSTEs)in parallelwith that of MOSTEat the State level. They are entitled to governmentbudgetary funds for the staffing of these agencies. This is a generally positive step, formalizinga new administrativeresponsibilityin a field 29. importantto local developmentefforts. However, there are some implementationconcernsin those large cities which had already organized their own EnvironmentCommittees(ECs). The ECs had no legal powers, but they were typically chaired by the Vice-Chairmanof the People's Committeeand reported directly to the PPC. This structure gave them a high political profile and direct access to decisionmakers, while enabling flexiblestaffingfrom other relevantprovincialbureaus. Under the new DOSTE, the EnvironmentServicemay be somewhatisolated from decision-makingin a relativelyminor provincial department, facing new bureaucraticapproval proceduresto its decision-makingproposals. Of the four cities which previouslyhad ECs, only Ho Chi Minh City preserves the structure, which is now chaired formally by the Director of DOSTE. It remains to be seen whether new informal structures for coordinationand managementwill arise at the local level to replacethe ECs. - 159 - Annex 10 Page 7 of 15 30. The recent approval of Decree 175/CPhad therefore reduced some concerns but increased others. The decree represents a clear expressionof governmentpolicy and introduces some significant changesin administrativerequirement. While there may be a need to gain some experiencewith the new system before changingit again, there shouldbe an opportunityfor various affectedparties, stakeholders and regulators to provide a feedback on the gaps and the clarification needs for future refinement, particularly with respect to pollution control and standard (para 31 below); and environment impact assessment (para. 44 below). 31. At the national level, the NLEP and its implementingdecree (175/CP) also provide for: (a) prohibitions against dischargesinto the atmosphereand waterwaysbeyond unspecified "permissible limits" which has yet to be elaboratedas it is not clear to what extent the environmentalstandards cited (Article 22 of Decree 175/CP) have been prepared; (b) waste managementand treatment of hazardous wastes under implementingregulationsfor which further clarificationwill be needed; and (c) allocation of pollution control responsibilitiesbetween the central state environmentagency (the NEA) and the provincialDOSTEsor ECs, but are unclear with regard to allocationsbetweenNEA and the other central Agencies/Ministries. 32. The absence of adequatenational standardslimiting industrialemissions is currently being addressed by the exhaustive review of many internationalpollution standards for both ambient air and water quality as well as emissions of selectedpollutants. Standards will include technicalguidelinesfor sampling, measurementand analysis of air and water quality. Existing standards will be updated and ISO/WHO standards adapted for Viet Nam. The first set of new standards were expected to be ready by January 1993, and others by June 1995. Also important is the question of the allocation of responsibilitiesfor which agency to monitor and enforce the implementationof these standards. This is still unclear. Furthermore, unless it is easy to show that standardsare not beingmet, and there are strong penalties for not meeting them, they are unlikely to have any effect. 33. At the provincial level, Hanoi has had environmentalregulations since 1991; HCMC's Environmental Committee has drafted environmentalregulations and the Ministry of Environmentof Singaporeto assist in developingmoie effectivelocal environmentalstandards and a local environmental review process. At least three other local DOSTEs (Dong Nai, Tay Ninh and Vung Tau) have promulgatedlocal environmentalregulationsand standards. Hanoi's regulations, which were issued in 1991: (a) set ambientstandards for 95 air pollutants, 177 liquid pollutantsand work place standards for 140 air pollutants, 15 particulates,and noise; (b) require approvalof investmentapplicationsthrough the local DOSTE or Environment Committee; and (c) establish detailed environmental inspection requirements. Under the regulation,a Board of Inspectorsunder the DOSTEmust carry out semi-annual air quality inspectionsof plantsproducingfertilizers,toxins, batteriesand other electricalproducts, active chemicalsand pesticides;annual inspectionsof all other enterprises;and spot checksof previous violators of air and water quality standards. Positiveaspects of HCMC's standards include: (a) the manageably small number of parameterscovered; (b) their distinctionbetween new and existingfacilities, with more stringent limits for new facilities;and (c) their classificationsof water bodies by use, with more stringent limits for waters used for drinking and domestic purposes, than for other surface waters. Local regulations and standards are presently being reviewed for consistencywith the NLEP and 175/CP. InstitutionalCapacitv for EnvironmentalPlanningand Review 34. The State Planning Committee is the focal point for appraising investmentprojects and setting the guidelines for social development. As a member of the State Committeeon Cooperation and - 160 - Annex 10 Page 8 of 15 Investment(SCCI), a body used for approvingnon-governmental,foreign-assistedprojects, MOSTEhas formal authority to commenton enviromnentalaspectsof investmentapplications. In practice, NEA (on behalf of MOSTE) currently provides comments on environmental aspects of some of the larger investmentproposals in the industrialand energy sectors, but lacks capacity to carry out systematicand in-depth environmentalreview of these investmentapplications. 35. During the preparationof the National Plan for Environmentand SustainableDevelopment which predated the establishmentof MOSTEn October 1992, the Ministry of Construction(MOC) took the lead on urban and industrial pollution issues. MOC offered broad proposals for the developmentof urban and industrial pollution control activities and regulatory capacity but these proposals emphasized urban planning and waste managementinfrastructureover industrialpollution control. MOSTE (through the NEA), under NLEP, now officially takes over the responsibilitiesfor the planning and review of urban and industrial pollution issues and is thus in a positionto provide a balancein emphasis. 36. At the provinciallevel, the DOSTEs or EnvironmentCommitteeshave formal authority to review and commenton environmentalaspectsof investmentapplicationsand to resolvepollution related disputes on behalf of the Peoples Committees. However, they generally lack trained staff, knowledge of clean technologyand financial resources. 37. Fledgling environmentalagencies in developing countries are typically small in size and underfunded, and may become repositories for personnel with unfavorable career prospects in other departments. Yet environmentalagencies are ordinarily expected to provide a broad monitoring and enforcement responsibilitiesat the local level. MOSTEs and DOSTEs are expanding their staff (the NEA, for example, has three times the staff it had two years ago as the Departmentof Natural Resources and Environment). But without careful planningand training, MOSTEand the DOSTEs will experience a growing gap between limited existing institutionalcapacity and expectationsof immediateand visible improvementsin environmentalquality. The result could well be that their credibility and effectiveness will be impaired. The Japaneseexperienceis instructivehere. The Japan environmentAgency was able to avoid the gap between capacity and expectations,because technical expertise in environmentrelated disciplineswas readily availableat the time the EnvironmentAgencywas established,and highly qualified technical personnel were seconded from line and local agencies to the local Environment Protection Bureaus and the national environmentagency. 38. Any discussion of the issues of central versus local powers on environmentalmanagement has to recognizethat some issues are really of local concern and are within local competenceto resolve. Other matters, even though they occur within a province, are of national importance and require State intervention (e.g. large-scale development programs such as the Mekong River system). Without adequate local staff able to respond to environmentalmanagementproblems, complaintsare now going directly to members of the National Assemblyand on to the Officeof Governmentand to MOSTE. But MOSTE itself does not have the time or staff to respond to all local issues. Therefore the most useful principle seemed to be to enhance the capacity of local governmentsso they could handle as many of these issues as their capacity to respond to them grows. Local agencies have requested technical guidelines and clearer implementationprocedures from MOSTE for such matters as EA, industrial pollution audits, monitoring procedures, etc. The process of gradual developmentof local authority would be enhanced by continuing consultationand coordinationbetween MOSTE and the provinces. - 161- Annex 10 Page 9 of 15 39. The lack of informationabout new environmentalsector guidelinesand responsibilitieswas perceived to be a problem constrainingeffective responsesto issues in this sector. There appear to be few mechanisms for sharing informationbetweenagencies active in this sector. SequencingCoverage of the Regulatory System 40. Given (i) the financialdifficultiesof many polluting firms (which have obsolete equipment and an uncertain future in light of recent trends in the industrial sector), (ii) the employmentconcerns of the municipalgovernment,and (iii) the lack of incrementalresourcesfor pollutioncontrol, manyplants that are in violation of environmentalstandards can do little more than make small improvementsin housekeeping;and the DOSTEs or EnvironmentCommitteesgenerallydo not press them. 41. Under these circumstances,it is essentialthat the DOSTEs/ECstarget a limited number of pollutants and industriesthat are within its monitoringand enforcementcapacity. One way to do this is to focus initially on the regulationof a limited number of parameters related to human health impacts, (e.g. sulphur dioxide, particulates, carbon monoxidefor air; and heavy metals like lead, mercury, and chromiumfor water), leaving regulationof environmentalquality parametersthat are less closely linked to human health for a later stage in the developmentof the regulatory system. 42. The advantageof initially targetinga few parametersand structuringthe entire regulatory strategy (includingrealistic standards,regulations, incentives,researchand development,monitoringand enforcement)around those parameters, is that the environmentalagencyhas a better chance of achieving early successes, and thereby strengtheningits credibility. Then, it will be better prepared to address future issues, than if it had allowed its limited resources to be spread too thinly in the initial stages. Japan's priority focus during the 1970's was reductionof SO2 and toxic emissions,and its successin this campaign contributedsignificantlyto the technical credibilityof its pollution control effort. EnvironmentalImpact Assessment 43. In terms of environmental (impact) assessments (EA), the NLEP and Decree 175/CP includes definitionof broad provisional guidelines and allocation of responsibilitiesbetween local and State (central) authorities,and betweenMOSTEand the centralline agencies. The guidelinesensure that the agencies cannot review their own EAs, and formalizethe EA review committeeprocedure (through EvaluationCouncils)which includesexpertsfrom State agencies,provincialgovernmentand local public organizationsas appropriate. The broad representationof membershipon EA reviewcommittees(which are required under the new regulationsto includenational,provincial,and sectoralexpert representatives) should improvefamiliaritywith the process in manygovernmentagenciesand help link it with established planning procedures. Also there are specific time requirementsfor the review of the environmentimpact assessment reports, including the review of challenges to the EA decision. Overall, proposals for environmentimpact assessmentsare sound; and SPC and SCCI have indicatedtheir endorsementof the formal EA review procedures for all investmentprojects. Now it remains to be seen whether project review procedures can capture an assessmentof potential environmentalconcerns at an early stage to enable effective response. - 162 - Annex 10 Page 10 of 15 44. Early feedback indicatesthe need for improvements/clarificationsin the areas given below: First, the central law/regulationsdo not contain any reference to public participation'. Although an Evaluation Council may be established to evaluate project environmental impact, public participationin this Council is optional. Today, most countries' EA statutes expressly provide a right of public participationeither in the EA law or through associatedlegislation. (For exarnple, in Germany and the United States,public participationis providedfor in administrativeprocedure law). In addition, internationallending agencies like the World Bank will not finance projects which require an environmentalassessmentunless there has been adequatepublic participation. Thus, the regulation should be supplementedby MOSTE instructions which establishesa clear right for the public and other interestedand involved entities(physicaland legal) to issue written comments on projects. There should also be a right to a public hearing to discuss the project before the EA is prepared, and then to commenton a draft before the EA is final, includingthe right to question the experts who prepared the EA. Second, no mention is made concerning the funding of EAs, especiallyfor government owned projects. Similarly, it is not clear how governmentalreviewcosts (e.g., evaluationcouncil) would be covered. Third, the jurisdiction of evaluation responsibilitiesis unclear (particularly MOSTE vis-a-vis central implementingMinistries)as are the conditionswhich require an EvaluationCouncil to be created (Article 14) and the meaning of "accountabilityof DOSTEs" (Article 6). Fourth, jurisdictional responsibilities among the "state agencies in charge of environmental protection" (Article 15, 1) are still unclear. In particular, who would be in charge of enforcing the EA evaluationdecisions(Article 20)? The above gaps may well need to be remedied by SPC MOSTE perhaps in the form of Ministerial Instructions for EnvironmentalImpact Assessment. 45. Furthermore, the Ministrieswithinthe Natural ResourcesSector have no separate units for conducting environmental impact assessments. While granting that much of this work could be subcontractedto various professionalinstitutesor private consultants, a nucleuswould still be necessary within the sectoral Ministries, to prepare the TORs, provide relevant information for facilitating assessments and oversee the preparation of assessments. 46. To date the EA process has been used mainly to assess pollution impactsof some industrial projects, and projects pertaining to offshore oil drilling and hydro power. EA's have not usually been used to assess conversion of land to agricultural use, soil erosion, catchment area treatment, or the impacts of deforestationand sedentarization. A numberof priority projects are in the immediateagenda of the Government such as under Decree 327, Decree 72, sedentarizationof minority groups, etc, which may cumulatively have significant impacts on the environment. It will be necessary to carry out assessmentsof cumulative impacts of such programs. I At the local level, Hanoi, and Ho Chi Minh City's regulations require local DOSTEs or Environment Committees to investigate pollution complaintsbrought by affected people. There is no provision, however, for ex-ante consultationduring project preparation. - 163- Annex 10 Page 11 of 15 47. EAs have considerable potential for improving design of projects within the natural resources sector, if done at an early stage. Initial action is to deternine the degree of environmental impactand levels of compliancewith environmentallaws and regulations. Basedon this early evaluation of environmentaleffects, subsequentaction couldbe categorized. A program, project or an action which does not individuallyor cumulativelyhave a significanteffect on the environmentcould be placed in an "exclusion" category, waving, thereby, the requirement of a detailed environment assessment or an environmentimpact statement2 . Sinceprovincialand district governmentsare primarily responsiblefor agriculture, forestry, and other natural resource projects, attention shouldbe paid to strengtheningtheir capacities to do EAs. Some arrangementsused in other East Asian countries might be useful for considerationin Viet Nam. 48. In China, environmental considerations are integrated into projects and development planning through the process known as "three simultaneoussteps." This involves incorporation of environmentalsafeguardsintodesign, constructionand operationof facilitiesand through the requirement of environmental impact assessments(EA's) on new renovationand expansionprojects. As noticeably EA's were often performed too late in the project cycle to influenceapproval of locations, designs, or other alternates, regulationswere recentlymodifiedto requiretheir preparationeasily in the project cycle. The EnvironmentalProtectionLaw promulgatedin 1979but fully effectivesince 1989spells out the need for environmentalimpactassessmentsto be done for most developmentprojects, and all projectsreceiving external financing. The enterprise or agency responsiblefor the project, commissionsthe EA and the National EnvironmentalProtection Agency(NEPA). NEPA or its provincialarm must approve for the project to proceed. Most assessmentsare carried out by research institutes,universitiesor other technical agencies. The EA process has been used so far to assess the pollutionimpacts of industrial projects and it is only in the past two years that it has been used for agriculturalprojects. The EA's completedso far typically cover pollution from agro-processingplants and agricultural chemicals, implications of large scale water transfers, protectionof historic sites and similar issues. 49. Procedural guidance on EA is provided through two supportingadministrativedocuments, the first is the ManagementGuideline on EnvironmentalProtection of ConstructionProjects issued in March 1986, and the second is the Managementprocedure for environmentalprotectionof construction projects issued in June 1990. NEPA has overall legal responsibility for implementation of EA requirementsat the nationallevel in China. However, as most developmentactivityoccurs at the regional level, NEPA has assigned responsibilityto its provincialoffices, or EnvironmentalProtection Bureaus (EPB's). The 1986 guidelinesprovides the basis for sharing of responsibilitybetween NEPA and EPB's. It requires NEPA to approve EA's for projects which (a) cross provincial borders; (b) are special in nature; (c) are large in size ; and(d) are controversialin its content. Though the provincial and sub2 The only exclusion category is given in a 1994 list of "projects that are not required to submit environmental impact assessment report when applying for investment license". This list includes: consultant offices; offices; banks; financialoffices; communicationsand related services; educationand training; publicationdistribution agencies;schools; hotels of less than 50 rooms; trade centers an super markets; projects for installation/assemblyof electronic and mechanic equipment; business services; garment sewing; food processing with productivity of under 100,000 tons per year production of constructionmaterials with small capacity (bricks: less than 2 million per year quarried stones: less than 100,000tons per year); spinning/weaving(excludingdyeing, bleachingor design printing); commodity making (makingshoes, office tools);woodenproduction(excludingwoodprocessing);eating and drinking services; temporary living area of less than 500 families; and water supply in district towns. The implicationis that all other projects (irrespectiveof their size) would need to submitenvironmentimpact assessment reports. It may be preferable to have a "positive" list of projects which require EAs. - 164 - Annex 10 Page 12 of 15 provincial EPB's are organizationallyattached to NEPA, they receive their budget from the municipal governmentsand in practice operate relatively independentlyof NEPA. 50. In Korea, environmental impact assessment is utilized as an important mechanism for preventing possible environmentaldisruption, as caused by developmentprojects. Environmentimpact assessment was first introduced to Korea in 1981, but its effectiveness was limited as govermment ministries and large agencies undertaking major projects, such as multi-purposedams, large housing projects, highways, industrial complexes were able to influencegovernmentdecision makingprocesses and dilute the magnum of the environmentalimpact. In 1986, the EnvironmentalPreservationAct was amended to expand the application of the EA process to non-governmentalprojects. A further improvement has been introduced through the Basic Environmental Policy Act which brought Environmental Impact Statements(EISs) to public notice and even public hearings in some cases. The EnvironmentalAdministrationwhich was elevatedto the status of a full ministry with necessarypowers is now in a position to request other agencies to take remedial measures, or even stop construction of projects violatingthe EIS. 51. In Thailand, the National EnvironmentalQuality Act, as amended in 1978, requires state enterprises or private organizationsto submit a report on the measures for prevention and remedy of adverse environmentaleffects to the office of the National EnvironmentalBoard for considerationand approval of the project. The ONEB has authority and responsibilityto review environmental impact assessment reports, for approval, before development projects can be implemented. The initial notification enlisting categories or projects, both public and private requiring EA was issued in 1981, which includedprojects with dams, irrigationschemes,airports, hotel and resort facilities, thermalpower plants, industrial estates, ports and harbors, etc. Registrationof EA experts and consultantshave been made obligatory through a ministerial decree in 1984and EA's submittedto ONEBhave to be prepared by registered parties. The functionalorganizationsinvolved in the EA process in Thailand are (a) the project proponent which will be implementing the project is responsible for preparing the EA report;(b) the registered consultantrequiredby law, to perform the EA;(c) the project approvingagency; and(d) the reviewing agency, which is the Environmental Impact Evaluation division of ONEB, responsiblefor the review process. Tight time scheduleshavebeen prescribed for grantingapprovalsby ONEB, but which is extendable in case further information/datais required for consideration of the environmental impacts of the project. Non-GovernmentalOrganizations 52. A diligent effort needs to be made to involve the public and the NGO's in preparation and review of EA's. The participationof the public has to be encouraged, and they should be present at important scoping meetings, public hearings etc., to provide informationconcerning project objectives associated with proposed development. In Vietnam the presence of strong quasi-politicalbodies (such as the peoplescommittee,which also functionsas the local governmentbureaucracy)inhibits spontaneous participationof non-governmentalgroups, or even by the general public. There are no "true" NGOs in Viet Nam - defined as those organizationswhich do not receivegrant funding from GOV. Typicallythe likes of NGO's are youth associationsand Professionalgroups sponsoredeither by the political party or by Government. Recently there is a trend for formation of group organizations,many of them handling social and environmental themes with nominal Government funds but are beginning to provide independentviews on key issues. A premier non governmentorganizationis the Vietnam Resourcesand EnvironmentAssociation, which concerns itself with ecologicalproblems within fragile ecozones of the uplands and coastal areas. Its secretariat is the Institute of EcologicalEconomy, which manned by six - 165 - Annex 10 Page 13 of 15 full time professionals. Specialists are enlisted when necessary. At present, it still functions as an environmentallyaware consultingagency. 53. Another organizationwhich has a countrywide network is the YouthOrganizationhaving a membership of 21 million youth: A very large cadre among these membersparticipate in social and environmentalprograms on a voluntarybasis, spreadingfrom the provincialto the local level, and within 27 Departmentsof the Central Government. The associationis involvedin multifariousprograms within the areas of health, education, population, employment, welfare, forestry, minority group support, tourism, and mass media programs. 54. Sectors like agricultureespeciallyencouragethe formationof women groupsfor furtherance of their activities in special programs like the greening of the bare hills (under Decree 327), rice production,processing of agriculturalproducts, fisheriesdevelopment,and fruit cropping. Thesegroups are spread across central to sub-provincial levels and are engaged in training programs, transfer of technology and disbursementof credit. 55. A strong public education,mass media programhas been launchedby several organizations to encourage environmentallyconscious and law abiding behaviors among adults and children. This effort could be further strengthenedthrough additionalfundingand scientificresearch. While a number of Universities and Institutes of higher learning in Vietnam are actively pursuing scientific research in environmentalrelated disciplines,more cohesionand directionis necessaryto lend contentto their efforts. Several environmentrelated newspapersand journals, with substantialannual circulationare published in Vietnam. 56. Government policy on resettlementof populationsdisplaced by developmentprojects are implementedby sectoral Ministries responsiblefor the implementationof the project. Resettlementis done on the basis of resettlementprograms prepared after obtainingthe options of the local people. It is not clear whether Vietnam has specific ResettlementActs guaranteeingentitlementto the displaced persons, but resettlementprograms are being implementedon the basis of executiveinstruction. 3 Conclusionand Recommendations 57. Much has been accomplishedby the Governmentof Viet Nam in the past year: enabling legislation has been passed; MOSTE has introducedprovisional EA guidelines and is close to a set of pollution standards for a large number of environmentalpollutants. Staff size of NEA has doubled. Every province and municipality now has a functioning Department of Science, Technology, and Environment. More than 800 EAs have been completed, and a functioning EA review process is in place. There is good reason to be proud of these accomplishmentsand optimisticabout the future, with donor support for capacity-buildiiug for MOSTEand provincialagenciesnow firmingup. Nevertheless, Viet Nam faces a number of interestingchallengesand needs with respect to institutionaldevelopment for environmentalaction. 58. The Direction of Institutional Change. Investment in and technical assistance to the environmentsector in Viet Nam is increasingvery quickly. Various issues,such as institutionalcapacity, coordination, and integration, become increasinglyimportantwith this rapidly growing activity in the I The discussion given below is largely taken from the IDRC/MOSTE, "Report of a National Workshop on EnvironmentPolicy and Program Priorities for Viet Nam, Hanoi, November 3-4, 1994". - 166 - Annex 10 Page 14 of 15 environmentsector. Many of the institutionalstructures being developed in Viet Nam to respond to environmentalmanagementare new. There is limitedexperiencewith these issuesand, besides, different government units sometimes have different views on how they ought to operate. Such differences of opinion should be expected in a time of rapid transition. But in order to avoid conflicts which reduce effectivenessand coordination,institutionalchangesshouldbe introducedin consultationbetweenthe key technical and implementingagencies, in a processwhich is transparent(participantscan understandwhat is happening), accountable (participants know who is responsible) and responsive (problems are understood and responded to). This procedure will help to rapidly build the confidenceof participants as their technical knowledgeand capacity to act also increase. 59. Appropriate institutional capacity is one of the factors most important to the success of environmentalmanagementand protection. Clearly defined tasks, suitable authority levels, and flexible coordinationof different agenciesare all importantaspectsof developingnew environmentalmanagement institutions. To this end, MOSTEshould play a crucial role in environmentalmanagementat the State level, but this requires recognitionthat most implementationof environmentalregulations and planning will be done through other agencies. This will require consensusbetweenagencieson goals, procedures and structures for action. 60. In the introductionof new methodsand techniques,new terminologywill be required. Use of standard international definitions for terms would reduce confusion to Vietnamese agencies just learning these terms and to foreign investorstrying to understandVietnameserequirements. An example is the frequent use of the term "EIA" to refer to industrial pollutionaudits (which are not intended to be environmental assessments, but only audits of emissions and technologies used). When adopting procedures which are derived from internationalpractice, it is advisable to preserve international terminology and meaning closely to avoid confusion and to more rapidly train Vietnamese technical specialists (who then do not have to un-learn mistakes). 61. The Need for Monitorina and AdaptiveResponsesfor EnvironmentalInvestments. There is urgency with respect to a number of the environmentalissues facing Viet Nam, such as mangrove degradation, barren lands, and increasingurban pollution. This meansthat investmentprojects for these issuescould proceed relatively rapidly. This is good, but it also means that these environmentalprojects will be implementedwith incompleteknowledge. We believethat environmental,social, and institutional uncertainties in these investment projects should generally not be a problem, if and only if the Government of Viet Nam and its partners recognizethese uncertaintiesand incompleteknowledgeand form appropriateresponses. These responseshould consistof two elements. First, environmental,social, financial, and institutionaleffects of the investmentprojects should be closelymonitored as a part of the project itself to detect unexpected project results, both positive and negative. Second, projects should be designed to adapt to the results of this monitoring, as well as to changing social and economic conditions. This will demand flexible project delivery mechanisms which can make use of new knowledge and information gained from monitoring project results. This feedback from project implementationto monitoringto project re-designwill be particularly critical to the long term success of environmentalinvestmentprojects in Viet Nam. 62. EnvironmentalProgram Deliverv: The Need for Integrationand Coordination. The delivery mechanismwill almost certainly vary with the environmentalproject being contemplated. For example, in the natural resources sector, it may be best for line agencies to implementprojects through selected provincial departments and services at priority sites. For urban and industrial problems, which are still concentrated in a relatively small number of locations, implementingaction will be the responsibilityof local governments. Viet Nam has relatively little experience in implementinglarge, multidisciplinary - 167 - Annex 10 Page 15 of 15 projects and the best program delivery mechanismswill likely evolve through experimentation. Again, monitoring of projects will be crucial to understandingwhat delivery mechanisms are most suitable. Becauseof the direct involvementof line agencies and local governments,strengtheningthe capacity of these agencies to manage environmentalissues will be importantto success of such projects. 63. An environmentalproject is not an infrastructureproject such as a road, where relatively few institutionsneed to be involved. Environmentalmanagementand protectionrequiresthe involvement of a great many disciplines and therefore, the involvementof many institutions.Therefore, the need for integrationand coordinationof efforts can not be overemphasized. The fact that line agency institutions are generally not suited at the present time for this integrationand coordinationfunctionmeans that the responsibilityfor integrationand coordinationwill likely fall to managementand planning institutions, such as SPC, provincial/municipalPlanningDepartments,MOSTE,and DOSTE. Appropriatetechnical assistance in project integraiionand coordinationwill likely be required. 64. Environmental Training of National Management Institutions. The role of national management institutions is vital to the successful implementationof any formal action plan. These institutions, such as the SPC, are currently best positioned institutionallyto provide integration and coordination, and are the institutionswith which the intemationalaid agencies will be working for the foreseeable future. All parties would therefore benefit from technical assistance to these national management institutions in basic project planning and internationalproject approachesand procedures. This shouldbe accompaniedby assistanceto these institutionsin implementationof any formal action plan that is produced, so that Viet Nam can become more proactive in ongoing development,management, and review of its environmentalproject portfolio.