Report No. 1 3200-VN Viet Nam Environmental Program and Policy Priorities for a Socialist Economy in Transition (In Two Volumes) Volume Il: The Supporting Annexes February 27, 1995 Agriculture and Environment Operations Division Country Department I East Asia and Pacific Region ..*4~ ~ ~~~~~~~A. : 4 ~ ~ ~ ~ ~ 4 $4~ ~ ~ ~~~~~~~~~~~~~~~4 CURRENCY EOUIVALENTS The Vietnamese currency is the dong (D) Calendar 1993 August 1994 US$1.00 = D10,640 US$1.00 = D11,000 D 1,000 = US $0.09 D 1,000 US$ 0.09 Fiscal Year January 1 - December 31 Weifhts and Measures Metric System ACRONYMS ADB - Asian Development Bank AIDAB - Australian International Development Assistance Bureau ASEAN - Association of South East Asian Nations ASS - Acid Sulphate Soils BAP - Biodiversity Action Plan CIDA - Canadian International Development Agency CEST - Center for Environmental Science and Technology CEMA - Council of Mutual Economic Assistance COM - Council of Ministers DFCS - Department of Fixed Cultivation and Sedenterzation, MOF EA or EIA - Environment Assessment EPZ - Export Processing Zone ESCAP - Economic and Social Council for Asia and the Pacific ESMAP - Energy Sector Management Assistance Program FAO - Food and Agriculture Organization FINNIDA - Finnish International Development Agency FIPI - Forest Inventory and Planning Institute GDLA - General Department for Land Administration GDP - Gross Domestic Product GOV - Government of Viet Nam HCMC - Ho Chi Minh City IDA - International Development Association IPM - Integrated Pest Management ACRONYMS (continued) TUCN - International Union for Conservation and Nature JICA - Japan International Cooperation Agency MAFI - Ministry of Agriculture and Food Industry MDMP - Mekong Delta MFAP - Ministry of Fisheries and Aquatic Products MOC - Ministry of Construction MOE - Ministry of Energy MOF - Ministry of Forestry MOFA - Ministry of Finance MOH - Ministry of Health MOHI - Ministry of Heavy Industry MOLI - Ministry of Light Industry MLISA - Ministry of Labor, Invalids and Social Affairs MOSTE - Ministry of Science, Technology and Environment MWVR - Ministry of Water Resources NEA - National Environment Agency NGO - Non-governmental Organization NIAPP - National Institute for Agricultural Planning and Projections, MAFI NLEP - National Law on Environment Protection NPEB - National Project Evaluation Board NPESD - National Plan for Enviromnent and Sustainable Development NPV - Net Present Value OOG - Office of the Government PPC - Provincial Peoples Committee SCCI - State Commission on Cooperation and Investment SCP - State Commission on Prices SIDA - Swedish International Development Agency SPC - State Planning Committee TA - Technical Assistance UNCED - United Nations Council for Environment and Development UNDP - United Nations Development Program UNEP - United Nations Environment Program VND - Viet Nam Dong (currency) WFP - World Food Program WHO VIET NAM ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION CONTENTS Volume II Page No. Annex 1 Statistical Annex ................................. I Annex 2 Index of Susceptibility to Deterioration ....... .............. 49 Annex 3 Forest Degradation and the Evolution of Barren Lands ................................. 57 Annex 4 Viet Nam War Damnages and the Environment ...... ........... 70 Annex 5 Hill Area Programs with Environmental Implications: A Review .............................. 78 Annex 6 Decree of the Council of Minister - No 327 ....... ........... 86 Annex 7 Watershed Erosion Impact and Costs: The Da Watershed .................................. 92 Annex 8 The Cost of Mangrove Destruction in Viet Nam ..... .......... 103 Annex 9 Law on Environmental Protection ........ ............... 136 Annex 10 Environment-Related Institutional and Regulatory System .153 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 PER SAMPLING UNrr (0.05 M2.11EN ClANG a) 1200 1000 8o0 400 200I 0. IS 22 25 29 22 36 39 43 46 53 57 6064 67 71 74 76 SI 6s m noiameudde,. DOno tnse_ddm. h4h -laSdde treated. nonmal f(rulm fulrm nolms SertuJw NUMBER OF YOUNG BPH/VBPH NYPtHS PER SMtPLtNC UNIT (0.05 MM)N. MEN ClNG ") 4000 3500 3000 2300 1500 1000 500 0 18 2:225 29 32 3839 43 4850 sa3 507 60 64 67 71 7478 81 85 | o n aeCUddes. a no Inccdee. hslh h tmecudde troted. normal (ertdzaer f(lw nren G1eUlzer NUMBER OF OLD BPH/WBPH NYMPHS PER SAMPLING UNrr (0.05 M23. TIEN GlANG C) 1000- 900 soo - 700 500- 400 300 200 0 18 22 25 29 32 36394346 50 53 57 60 64 67 71 74 78 81 85 * InacctAdde. Onno des. high - Wtctdde trated. nora khut=e a norml krdlime Figuze3n a Planthopperdensitl atdaysafte rplanting3tmtmentL Fanret. fields Tien Clang Mekong Deta. Vieman 1991. SOURCE: FAO: InterCountry IPM Progam -2- Annex 1 Figures 1.d - 1.f Page 2 of 48 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. Ono inrsecades. -hraecddce tm.t:d. non-l fetzr high fer,duhz nornal femilzer NUMBER or wATERSuS PER SAMPLING UNrr (0.05 M2). nEN CLANG e) s0 so 40. 30 20 t°o 0 18 22 25 29 32 36 39 43 46 50 53 57 00 64 67 71 74 7861 85 c n stsdes. On snetcdes. ~ Inactdcce tre td norm fel iuer uhih fertlizer normal (raler nalnzect3cd-f. Phor ltnaectiet dea.fe *biaetidde 3 etd TOTAL NU?ABER OFr SPIDERS PER SAMAPLING UNIT (0.05 M21. TIEN IANG S) s0 I 70. s0 so 40 30 20 10 18 222529032 30 39 43 46 50-5357 60 6467 71 74 7881t 85 'no lnaecticlde,. 0 no Insecticide,. .Inaecactde P, ted. norna I farUiljwc high fertlizer normal fertilb Figure 3 d-f. Pmedator Densitas at days after planttng 3 tretuwmes. Farmersa eies Tlen Glang, Mekong Delta, Vietnam 1991. SOURCE: FAO: InterCountry 1PM Program -3- An*ex 1 Table 1 Page 3 of 48 Land Susceptibility Classes (in thousand ha) Province Total Area Class I Class 2 Class 3 Class 4 Clas 5 (least) (most) Ha Giang 739 267 5961 1157 Tuycn Quang 643 241 1828 3737 496 128 Cao Bang 850 593 958 4617 2336 Lang Son 791 503 3070 1592 2388 352 Bac Thai 660 2661 3318 512 113 Lai Chau 1733 4225 11316 1793 Son La 1440 4971 9427 Yen Bai 770 599 3953 2778 374 Lao Cai 690 799 2685 3410 Guang Ninh 516 23 4709 425 Vinh Phu 451 1593 2691 230 Ha Bac 492 1159 3628 130 Ha Noi 99 817 173 i{ai Phong 123 1047 186 Ha Tay 252 1268 1146 110 Hoa Binh 428 733 2022 194 1333 Hai Hung 267 2452 217 Thai Binh 151 1507 Nam fia 186 1540 192 127 Ninh Binh 168 72 1448 154 Thanh l{os 1145 348 2728 4141 3436 800 Nghe An 1684 1095 2950 5372 6393 1027 Hsa linh 607 1973 3660 438 Guang Binh 847 3240 5042 187 Quang Tri 496 1318 1710 1927 Thua Thien-ilue 466 383 596 324 3358 Qang Nam Da-Na 1200 40 1446 7957 2560 Quang Ngai 520 736 2903 387 1172 Binh Dinh 634 249 2871 1187 2035 Phu Yen 521 688 1528 620 2374 Khan lloa 484 1084 765 814 2180 Ninh Thuan 356 2721 843 Binh Thuan 815 7528 620 Gia Lai 1489 8093 6798 I;onTum 1086 944 9911 I)ac Lac 1879 6723 11899 167 Lam Dong 1024 2483 7752 Dong Nai 594 5935 Son Be 936 8828 535 Tay Ninh 400 4004 llo Chi Nlinh 190 1897 Vung Tau- Ba Ri 190 1901 Long An 446 4455 Tien Giang 227 2274 Ben Tre 212 2119 Dong Thap 316 3158 Vinh Long 154 1543 Tra Vinh 202 2017 Can Tho 302 3016 Soc Trang 327 3271 An Giang 331 3305 Kien Giang 582 5824 Minh llai 792 7919 Totals I/ 32903 95918 44711 120857 59933 7590 Notcs: 1/ Area totals not equal to those of the General Department of Land Management Source: Aldrick 1993 Annex I Table 2 Fire Damage 1990-1992 (in ha) Page 4 of 48 Province Natural Forest Planted Forest Naturnl Forest Planted Forest Natural Forest Planted Forest 1990 19 191991 1991 1992 1992 Ha Tuyen 35 Ha GClng Tuyen Quing Cao Bang 0 3 18 Lang Son Bac Thai 0 6 LJi Cbau 1000 73 Son La 134 Hoang Lieng Son 10 Yen Bai Lao Cai Guang Ninh 60 13 220 Vinb Phu 10 6 Ha Brc lis Nol Hai Phong lb Son Binh 0 3 fin Tay Hon Binh 6 4 lIai [lung Thai Binh HIa Nam Ninh 0 Nam fia Ninh Binh Thanh boa 16 Ngbe Tinh 0 420 35 Nghe An 29 fin Tinh lie Binh Tri Thicn Guang Binb Quang Tri 276 6l Thus Thien-llue 5 3 30 43 Qang Nam Da-Ns 0 9 9 379 Quang Binh Quang Ngai 9 47 Binh Dinh Phu Khan 257 21 Phu Yen Khan lIor 34 56 Thuan liii 210 27 244 12 Ninh Thuan Binh Thuen Gin iai-Kon Tum S4 37 483 117 Gin Lai Kon Tum 1700 Dac Lac 70 62 121 Lam Dong 3210 417 1401 647 524 316 Dong Nai 98 1159 IS0 519 Son Be 0 209 Tny Nich 26 53 llo Chli linh Vung Tau- En Rim 57 22 43 Long An 0 543 2300 Tien Giang Ben Tre Dong Thap Cuu Long Vian Long Tra Vinh Ibu Glang Can Tho Soc Trang An Glang 1919 1130 427 Kien Gibng 3561 too 407 1652 Minh Hal 3087 1563 330 2400 Totals 10348 69S2 3379 6531 566s 20S7 Source: FIPI, I992 Abnex 1 Table 3 Page 5 of 46 Total Forest Area (in thousand ha) Province 1943 1973 1985 Ha Giang 730 i18 159 Tuyen Quang 591 161 159 Cao Bang 848 301 46 LAng Son 753 165 146 Bac Thai 543 297 127 LA lChau 1447 111 230 Son La 1407 336 125 Yen Bai 765 388 103 Lao Cai 690 390 75 Guang Ninh 371 239 82 Vinh Phu 122 123 51 Ha Bac 66 138 47 Ha Noi 0 110 I li Phong 0 0 0 Ha Toy 0 11 3 Hoa Binh 197 112 81 Hai Hung 22 4 3 Thai Binh 0 0 0 Nam Ha 0 0 0 Ninb Binb 5 4 0 Thanh Hon 874 582 295 Nghe An 1006 1024 732 Ha Tinh 393 293 272 Guang Binb 537 259 208 Quang Tri 381 210 52 Thus Thien-liuc 333 275 219 Qang Nam Da-Nang 879 707 327 Quang Ngal 170 125 103 Binh Dinh 202 221 157 Phu Yen 402 284 116 Khan Hoa 412 266 13S Ninh Thuan 320 63 124 Binb Thuan 444 209 259 Gin Lai-Kon Tum 2286 1458 1331 Dac LAc 1865 l00l 907 Lam Dong 996 582 755 Dong Nai 378 318 247 Son Be 610 536 226 Tay Ninh 157 126 75 la Chi Iinh 0 35 39 Vung Tau- Ba Rir 119 93 27 Long An 0 0 19 Tien Giang 0 IS 16 Ben Tre 48 12 7 Dong Thap 0 0 0 Vinh Long 0 0 0 Tra Vinb 65 17 18 Can Tho 4 0 0 Soc Trang 41 19 4 An Giang 40 7 0 Kien Giang 288 128 4 Minh lali 437 216 157 Totals 22244 11889 8272 Sources: Niourand, 1943. Forest Inventory and Planning Instiste, 1973, 1987. -6- Annex 1 Table 4 (p.1) Table 6 of 48 Land Use and Land Cover 1985 (in thousand ha) Province Total Agriculture Annual Perennial Pasture Water Total Natural Area Land Agriculture Agriculture Bodies for Forest Forest Land Land Irrigation V Ha Tuyen 1363 145 115 23 6 1 477 426 Cao Bang 844 75 56 6 12 0 209 196 Lang Son 819 96 51 17 27 0 148 115 Bsc Thai 650 88 60 13 12 3 220 207 Lai Chau 1714 108 78 7 22 0 64 61 Son La 1421 143 100 6 37 1 129 122 Hoang LiengSon 1485 187 99 20 52 IS 259 219 Guang Ninh 594 59 34 7 16 2 229 188 Vinh Phu 457 154 117 24 7 5 108 89 Hl Bac 462 155 145 5 0 5 87 70 Ila Noi 215 107 96 2 3 7 8 2 HaiPhong ISO 62 56 1 0 6 5 3 lIkSon Binh 579 149 124 4 15 6 189 176 llai Hung 255 161 148 2 0 11 12 3 Tbai Binh 153 105 98 1 0 6 1 0 Ila Nam Ninh 380 224 199 8 4 13 12 10 Thanh Hon 1114 259 200 16 36 8 308 249 Nghe Tinh 2249 321 252 38 23 8 825 768 Binh Tri Thien 1756 170 154 8 7 1 552 510 Qang Nam Da-Nang 1198 117 107 4 2 4 469 459 Quang Binh 1190 179 168 6 2 3 206 195 Phu Khan 980 120 110 6 2 2 422 418 Thuan lizi 1137 128 114 10 3 1 348 345 Gia Lai-Kon Tum 2560 181 130 21 26 3 1472 1467 Dac Lac 1980 135 86 36 12 0 1294 1284 Lam Dong 1017 61 44 15 0 1 630 621 Dong Nai 759 291 195 95 1 1 267 246 Son Be 955 202 88 112 1 0 255 253 Tay Ninh 403 207 176 11 0 20 65 64 llo Chi Ntinh 206 93 84 8 0 1 32 15 Vung Tau- Ba Ri 24 4 1 1 0 2 2 2 Long An 434 194 188 5 0 1 16 0 Tien Giang 234 169 127 41 0 0 17 0 Ben Tre 225 152 103 46 0 3 3 3 Dong Thap 328 222 210 9 0 2 8 0 Cuu Long 386 277 230 47 0 0 2 0 Hsu Giang 616 491 442 48 0 1 7 4 As Giang 342 245 239 3 0 3 16 0 lIen Gisng 624 282 251 29 0 2 92 57 Nlinh hai 777 404 340 44 0 20 180 176 Totalis 33034 6919 5616 805 329 170 9642 9022 Source: General Department of Land Management, 1985. AnMex I Table 4 (p.2) Page 7 of 48 Land Use and Land Cover 1985 (in thousand ha) Province Planted Total Flat Upland Other Forest Unused Unused Unused Land Land Land Land Ha Tuyen 51 534 0 534 208 Cao Bang 12 326 0 326 235 Lang Son 33 507 0 507 68 BacThai 13 233 4 229 110 LAi Cbhu 4 1452 0 1452 90 Son LA 7 1086 0 1086 63 Hoang Lleng S 39 861 0 861 179 GuangNinh 41 175 11 163 131 Vinh Phu 19 113 2 111 83 Ha Bac 17 55 4 Sl 165 Ha Noi 6 23 4 20 76 lial Phong 1 3 2 2 80 Ha Son Binh 13 136 1 135 106 Hli Hung 9 4 1 2 79 Thai Binh I I 1 0 46 Ila Nam Ninh 2 12 3 9 132 Thanh lion 59 408 11 397 139 Nghe Tinh 57 863 23 840 240 Binh Tri Thien 42 686 21 665 349 Qang Nam Da- 10 484 10 474 128 Quang Binh 12 686 23 663 118 Phu Khan 4 220 9 211 219 Thuan llai 3 550 47 503 III Gin Lai-Kon T 6 827 0 827 79 Dae Lac 10 499 0 499 52 LAm Dong 9 217 0 217 110 Dong Nai 21 122 32 91 78 Son De 2 445 21 424 52 Tay Ninh 1 98 53 45 33 llo Chi IHinh 17 10 10 0 71 Vung Tau- Ba 0 10 3 7 8 Long An 16 178 178 0 46 Tien Giang 17 13 13 0 36 Ben Tre 0 14 14 0 56 Dong Thap 8 43 43 0 55 Cuu Long 2 20 20 0 87 llau Giang 3 19 19 0 100 An Giang 16 28 27 1 53 Kien Giang 35 201 175 25 50 hlinh hai 4 106 106 0 87 Totals 619 12266 888 11378 4207 Sourcc: General Department of Land Nianagemcnt, 1985. - 8 - Annex 1 TaIble 5 (p.1 ) Page 8 of 48 LAND USE AND LAND COVER 1991 (IN THOUSAND HA) PROVINCE Totl AgEIcuJtuY Annal Paddy Rice Perennid Pasture Wter Bodies Total Forest Area Land Agriculture Agriculture for Irrigation LAnd Ha Glng 733 130 88 26 a 33 1 207 Tayen Q g 530 90 45 30 a 35 2 143 Cao B ag 844 73 56 30 6 11 0 1K6 LangSou 817 35 50 37 16 13 1 142 B cThai 650 75 61 49 11 0 3 196 LaiCh a 1714 107 81 43 6 20 0 132 Son LA 1421 174 126 52 7 37 4 1" Yen Bal 680 71 41 24 15 21 1 178 La oCa 805 39 60 24 5 22 1 124 Guang Nbh 594 51 33 28 5 7 6 236 VinhPhu 484 146 118 96 19 2 7 75 Ha Bac 461 147 137 124 5 0 5 75 Ha Nol 92 44 41 35 0 0 3 7 HalPhong 150 68 56 54 5 0 7 4 Ha Tay 215 122 110 95 3 1 a 9 Hoa Binh 461 72 54 29 2 15 2 221 Ha Hung 255 160 145 134 5 0 10 11 ThI Binh 152 104 96 89 1 0 6 1 Nmn Ha 242 158 143 130 3 0 11 1 Ninh Bbinh 139 64 55 49 4 2 3 12 Thanh Hoa 1117 255 197 151 16 35 7 297 NgheAn 1638 133 136 104 43 5 3 594 Ha Tinh 605 106 38 74 18 0 1 229 Guang Bbh 793 Ss 47 34 5 5 0 309 Quang Tri 459 51 42 29 6 3 1 93 ThuaThien-Hue 501 49 46 34 1 1 1 188 Q:2 Nf Da-Nang 1199 114 97 57 15 1 1 4U Qung Ngal S86 37 30 45 6 0 1 63 Binh Dinh 608 97 79 55 10 5 2 167 Phu Yen 522 60 53 34 3 2 1 136 Khan Hoa 526 52 42 22 7 1 2 154 NinhThum 343 42 33 15 2 1 1 97 BinhThan 799 as 79 45 7 2 0 3S4 Gia Lad-Kon Tun 2560 197 130 75 38 26 3 1472 Doc Lsc 1980 174 34 33 31 8 2 1227 Lan Dong 1017 33 42 22 39 1 1 630 Dong Na 586 228 138 41 38 0 2 172 Son Be 955 202 88 43 112 1 0 235 Tay Nnh 402 206 174 106 32 0 0 43 Ho Chl Mlnh 209 93 82 62 10 0 2 34 Vng Tau- BRla 1% 30 44 15 32 1 3 37 Long An 434 211 205 133 6 0 1 58 TienGlang 234 166 117 103 48 0 1 11 Ben Tre 225 153 102 36 48 0 3 a DongThap 328 212 193 1U4 16 1 2 17 Vibh Long 149 115 39 K6 26 0 0 Tr Viah 237 159 135 126 24 0 0 19 CanTho 305 231 197 179 34 0 0 11 SocTraug 311 214 133 175 22 0 4 5 An Gbyg 342 235 229 208 3 0 3 7 KlenG Cng 624 271 216 205 50 0 5 98 Mbh hal 769 493 296 282 71 0 126 108 Total 33104 7008 5363 4101 1058 326 256 9617 Source: General Depazunent of Lnd Mmganent, 199l Annex 1 Table 5 (p.2)j Page 9 of 48 LAND USE AND LAND COVER 1991 (IN THOUSAND HA) PROVINCE Planted Nat"lForest Total Flat Unused Lau Upnd Unused OtherLd Forest Unused Land HeGiang 15 192 381 1 330 65 TuyenQuang 22 121 292 1 291 55 CaoBang 7 179 326 0 326 260 Lang Son 31 112 511 0 511 79 Bc Thal 7 190 251 0 251 128 LeiChau S 127 1333 23 1360 91 Son La 12 137 970 9 961 78 Yen Bai 27 150 330 0 330 95 Lao Cai 7 117 439 S 434 103 Guang Nibh 63 224 93 11 31 164 Vlnh Pbu 16 S3 170 3 167 93 Ha BaC 16 58 125 6 119 115 Ha Noi 7 0 3 1 2 38 HaiPhong 1 3 17 15 2 62 Ha Tay 7 2 12 2 10 72 Hoa Blab 13 208 113 0 113 55 Ha Hung 11 0 6 2 4 78 Thai Binh 1 0 6 6 0 28 NanHa 1 0 6 5 2 76 Ninh Binh 2 10 13 6 7 49 ThanhHoa 55 242 394 14 330 170 Nghe An 27 567 716 17 699 140 Ha Tlnh 29 200 205 24 131 66 GuangBinh 28 281 235 11 224 196 Qung Trl 16 78 259 4 254 56 Thua Thlen-Hue 6 181 212 28 134 52 Qang Non Da-Nang 25 459 490 95 395 111 Quang Ng[ 10 53 279 16 263 156 Binh Dinh 25 142 264 24 240 30 Phu Yen 2 134 235 7 273 42 Khan Hoa 1 154 212 14 199 107 NhinlThumn 0 97 150 7 143 54 Blnh Thuan 1 353 252 41 211 105 Gba Lal-Kon Tum 6 1467 313 7 311 270 Dac Lac 14 1213 473 8 470 100 Lam Dong 9 621 167 0 167 137 Dong Nal 32 140 36 22 64 101 Son Be 2 2U3 416 21 394 52 Toy Nlnh 2 41 33 64 19 71 Ho Chi Minh 13 16 10 10 0 72 VungTsu-BaRix 17 19 S0 17 33 29 Long An 48 10 104 104 0 61 Tlen Glang 10 1 13 18 0 39 Ben Tre 3 5 12 12 0 52 Dong Thap 0 17 29 29 0 69 Vinh Long 0 0 1 1 0 33 Tra Vinh 2 17 14 14 0 44 Cm Tho 11 0 2 2 0 62 Soc Trang 5 0 19 19 0 73 An Gang 7 0 54 44 10 46 Kien Glang 20 78 174 166 a 82 Minh hal 0 108 79 79 0 a Total 702 3915 12062 1032 11030 4600 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 Agricultre Annual Paddy Perennia Pasture Water Area Land Agriculture Rice Agrculture Bodies for Land Irr4Letion Ha Giang 783 130 88 27 8 33 1 Tuyen Qug S8D 71 38 26 10 21 2 CaoBang 344 73 56 29 6 11 0 Lang Son 319 84 49 37 16 13 1 Bac Tha 650 75 61 49 11 0 3 LaiChan 1713 109 84 43 6 19 0 Son LA 1421 174 124 51 8 37 4 Yen Ba 631 73 40 24 11 25 1 LAoCai 805 31 54 26 4 23 1 Guang Ninh 594 57 33 28 5 7 12 Vinh Phu 483 140 114 94 19 2 6 Ha Bac 462 147 136 123 5 0 5 Ha Noi 92 44 41 35 0 0 3 Ha Phong IS0 63 56 54 5 0 6 Ha Tay 215 174 109 95 6 1 8 Ho Binh 461 72 54 29 6 10 1 Hal Hung 255 1S3 143 133 6 0 9 Thd Binh 151 104 96 39 1 0 6 Nan Ha 249 153 143 130 4 0 11 Ninh Bbih 139 64 55 49 4 2 3 ThanhHos 1117 243 192 148 16 29 7 Nghe An 1637 179 132 103 42 2 3 Ha Tinh 605 105 37 74 17 0 1 G'eg Binh 798 59 48 33 5 5 0 Quang TH 459 60 50 31 7 2 0 Thus Tbien-Hue 501 47 43 32 2 1 1 Qng Nam Ds-Nag 1198 113 96 57 16 1 1 Q(ungNoa S1 36 79 41 6 0 1 Binh Dinh 607 98 31 54 12 4 2 PhuYen 528 60 53 34 4 2 1 Khan Hoa 525 52 42 22 8 1 2 Ninh Thumn 343 35 31 15 1 1 1 Binh Thuan 79g 89 79 45 8 2 0 GiaLal 1621 132 113 64 40 21 6 Kon Tmn 93 108 34 23 60 12 0 Doc LAc 1980 10 91 38 80 a 2 Lan Dong 1017 103 54 30 47 1 1 Doug Nd S86 258 150 46 107 0 1 Son Be 952 287 37 61 199 1 0 Tay Ninh 402 203 174 106 34 0 0 Ho Chi Mitb 209 92 s0 61 10 0 2 Vung Tau- B Ris 197 91 41 19 45 0 4 Long An 434 237 231 212 6 0 1 Tien Gang 234 169 119 104 49 0 1 Ben Tre 225 153 102 86 48 0 3 Dong Thap 327 212 193 184 16 1 2 Vinh Long 149 117 94 91 24 0 0 Tra Vinh 237 159 135 126 24 0 0 CanTho 296 244 216 202 28 0 0 Soc Trang 319 241 219 175 22 0 AnGiang 342 242 237 221 2 0 2 Kien Glag 624 287 243 236 35 0 8 Minhhda 769 536 316 305 85 0 135 Toetl 33098 7393 5520 4250 1247 306 270 Source: General Departent of LAnd Mangement, 1991. - 11 - Annex 1 Table 6 (p.2) Page 11 of 48 LAND USE AND LAND COVER 1993 (In Thousand Ha) Province Total Planned Natural Total Flat Upland Other Forest Forest Forest Unused Unused Unuted Land Land Land Land Ha Glang 212 15 197 368 - 368 73 Tuyen Quang 178 33 145 273 6 267 58 Cao Bang 91 2 89 356 0 356 324 Lang Son 151 39 112 504 0 504 80 Bac Thal 135 7 126 314 0 314 128 Lai Chau 174 6 168 1339 21 1318 91 Son La 152 13 139 1019 9 1010 76 Yen Bal 159 36 123 360 0 360 34 Lao Cai 162 10 152 412 0 412 IS0 GuangNinh 153 27 126 250 13 237 134 Vinh Phu 151 38 113 98 3 95 94 Ha Bac 140 29 111 59 6 53 116 Ha Noi 7 7 3 1 2 38 Hai Phong 5 1 4 11 9 2 66 Ha Toy 10 8 2 10 3 7 71 Hoa Blnh 148 35 113 149 0 149 92 Hai Hung I1 9 2 6 2 4 80 Thal Binh 2 2 4 4 41 Nam Ha 4 4 0 16 14 2 71 Ninh Binh 14 3 11 12 5 7 49 Thanh Hoa 418 66 352 282 15 267 174 Nghe An 584 29 555 738 17 721 136 Ha Tlnh 187 24 163 253 21 232 60 Guang Blnh 412 24 388 130 12 118 197 Quang Tri 98 17 81 274 22 252 27 Thua Thien-Hue 170 15 155 209 10 199 75 Qang Nan Ds-Nan 159 16 443 521 22 499 105 Quang Ngal 139 20 119 244 15 220 49 Binh Dinh 181 31 150 159 23 136 169 Phu Yen 164 6 158 230 3 222 74 Khan Hos 158 2 156 196 15 181 119 Ninh Thuan 181 1 180 49 27 22 78 Binh Thuan 435 1 434 220 91 29 55 Gin Ld 791 8 785 540 540 108 Kon Tum 671 3 668 172 172 42 Dac Lac 1268 15 1253 419 10 409 113 Lam Dong 564 11 553 262 29 233 38 Dong Nai 151 30 121 78 27 51 99 Son Be 250 10 240 174 174 241 Tay Nlnh 43 2 41 32 63 19 70 Ho Chi Mlnh 24 17 7 19 10 9 74 Vung Tau- Ba Ra 59 14 45 14 9 5 33 Long An 48 48 aS 85 0 64 Tlen Glang 11 11 IS 15 0 39 Ben Tre 3 3 16 16 0 53 Dong Thap 47 47 0 68 Vinh Long 0 1 1 0 31 Tra Vlnh 2 2 32 32 0 44 Can Tho 3 3 0 3 3 0 46 Soc Trang 3 1 2 23 23 0 52 An Glang 9 9 0 28 28 63 Kien Gang 77 24 55 180 163 17 30 Minh hal 23 16 7 124 124 0 36 Total 9345 803 8844 11382 1075 10194 4729 Source: General Departnent of Land Managemest, 1991. - 12- Annex 1 Table 7 Page 12 of 48 LAND UNDER THE MINISTRY OF FORESTRY 1991 (IN THOUSAND HA) PROVINCE Area of Land Land ith Land w/o Production Protection Special Forest Natural Planted Forest Forest Forest Forest Production Production Forest Foretl Ha Tuven 1004 350 654 147 1S5 18 111 36 CaoBang 564 183 331 103 65 46 97 6 LangSon 634 142 492 37 49 7 56 31 BacThai 404 196 203 122 68 7 113 9 Lai Chou 1509 135 1374 52 55 23 47 5 Son La 963 133 325 62 61 14 54 8 Hoang Lleng Son 1062 223 834 119 104 5 90 29 Guang Ninh 39S 193 202 148 31 15 106 42 Vinh Phu 179 71 108 31 27 13 17 14 Ha Bac 152 75 77 64 8 3 48 16 Ha.Nol 23 9 14 6.2 1.7 1.3 -1.8 8 HadPhong 16 4 12 0 2.8 1.2 -1 1 Ha Son Binh 309 151 158 62 76 13 53 9 Hal Hug 13 S S 4.7 0 0.3 2.7 2 Thai Binh 5 1 4 0 1.4 0 -1 1 Ha Nan Ninh 28 13 15 0.6 1.7 10.5 -I.J 2 Thanh Ho. 649 297 352 192 32 23 137 55 N*ghe Tlnh 1472 764 708 496 247 21 454 42 Guang Bih 497 309 IS 201 102 6 173 28 Quang Ti 308 9° 209 55 42 2 35 20 Thua Thkn-Hue 351 137 164 92 69 27 76 16 Qang Nwn, De-Nang m8 484 404 287 173 24 262 25 QungNgd N, 397 117 230 77 40 0.2 56 21 Binh Dinh 413 167 246 131 30 6.5 106 25 Phu Yen 216 74 142 70 1.7 1.7 68 2 Khan Hoe 300 219 81 174 34 12 168 6 Thuan Hal 774 564 210 421 126 17 419 2 Gin Lad-Kon Turn 1953 1496 457 1070 302 125 1059 11 Dac Lac 1384 1204 180 923 179 102 903 20 Lam Dong 701 630 71 411 131 78 402 9 Dong Nai 250 217 33 170 7.7 40 113 52 Son Be 454 284 170 227 22 36 225 2 Tay Nblh 102 46 56 24 13 10 22 2 Ho Chi Minh 36 20 16 17 0.3 2.7 -2 19 Vung Tau- Ria Rs11 3 0 1.3 6.2 -1 1 Long An 16 5 11 4.7 0 0 -0.3 5 TienGiang 14 11 3 35 2.2 0 0.5 S Ben Tre 12 3 4 7.8 0.1 0.4 0.3 7 DongThap 21 12 9 &I 0 3.7 -3.9 12 Cuu Long 24 4 20 4.3 0 0 0.3 4 Hau Glang 22 7 IS 3.6 3A 0 -0.4 4 An Giang 61 10 Sl 10.1 0 0.1 1.1 9 Kien Giang 125 57 6S 25.5 7.4 24.6 23.5 2 NIlnh hal 192 1I1 74 1O05 4 6.3 108.5 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 Sector Ravew. Tropcal Forest.) Action Plan, FAO, Rome Notes: Negative numbers appear because this I Production mdnu planted - 13 - Atnel 1 Table 8 Page 13 of 49 Land Allocated by the Ministry of Forestry 1991 (in thousand ha) Provlce Aflocated Land Allocated Land Allocated Land AvailableLnd as of 191 with Forest w/o Forest w/o Forest Ha Tuyen 261 78 193 471 Cao Bang 247 101 146 235 Lang Son 207 83 124 368 Bac Thai 235 44 191 17 LaiChau 204 9 195 1179 Son La 291 31 260 565 Hloang Lieng Son 155 38 117 717 Gusng Ninh 123 54 69 133 Vinh Phu 69 29 40 68 la Bac 74 33 36 41 Ha Noi 5 0 5 9 Hai Phong 2 2 0 12 Ha Son Binh 106 32 74 S4 Hai Hung I 0 1 7 Thal Binh 0 0 0 4 Ha Nam Ninh I 1 2 9 6 Thanh lion 313 135 178 174 Nghe Tnh 343 157 186 522 Guang Binh 131 31 100 88 QuangTri 67 23 44 165 Thua Thien-Hue 66 44 22 142 Qang Nam Da-Nan 179 51 128 276 QuangNgai 169 15 154 126 Blnh Dinh 179 14 165 S1 Phu Yen 141 86 55 87 Van lloa 153 99 64 17 Thuan llal 236 89 147 63 Gia Lai-Kon Tum 36 34 2 455 Doc Lac 48 44 4 176 Lam Dong 15 4 11 60 Dong Nai 70 58 12 21 Son Be 102 67 35 135 Tay Nlnh 0 0 0 56 lilo Chl Minh 15 6 9 7 Vung Tau- Ba Ria 0 0 0 3 Long An 0 0 0 11 Tien Glang 13 0 18 -is Ben Tre 0 0 0 4 Dong Thap 0 1 -1 10 Cuu Long 2 0 2 18 IlauCGiang 0 0 0 15 An Giang 0 0 0 51 VIenGlang 74 8 66 2 Minh hai 44 21 23 51 Totals 4392 151 2874 6717 Source: Warfvinge 1992. Notes: Negative numbers appear because this Is Production minus Planted. -14- Annex 1 Ta.ble 9 Page 14 of 48 NIAPP Estimate of Unused Land 1993 (in thousand ha) Province Total Unused Unuwd Land Unused Land Other Area Land with Potentbi with Potential Unused for Agric. Dev. for Forestry Land Dev. Ha Giang 783 392 62 263 67 Tuyen Quang 580 274 102 149 23 Cao Bang 845 431 24 231 176 Lang Son 819 496 76 388 32 Bac Thai 650 235 40 178 17 Lai Chau 1714 1346 86 1202 58 Son La 1421 1002 75 856 71 Yen Bal 663 431 88 317 26 Leo Cii 750 5S3 103 406 44 Guang Nnh 594 206 11 185 10 Vinh Phu 457 119 49 66 4 HaaBac 462 112 15 88 9 Ha Noi 100 10 0 6 4 HaiPhong IS0 20 2 6 12 Ha Tay 217 22 1 12 9 Hoa Binh 470 143 14 120 9 Hal IHung 255 22 1 14 7 Thai Binh 153 24 6 15 3 Nam Ha 242 39 7 16 16 Ninh Binh 139 26 5 5 16 Thanh lloa 1117 405 58 276 71 Nghe An 1645 792 81 633 78 lla Tinh 605 173 53 58 62 Quang Binh 794 268 37 32 149 Quang Tri 459 290 51 185 54 Thua Thien-Iluc 501 201 31 164 6 Qang Nam Ds-Nan 1199 593 27 553 13 Quang Ngal 585 251 4 236 11 Binh Dinh 608 272 19 223 30 Phu Yen 518 333 21 215 97 Khan Iloa 463 217 13 192 12 Ninh Thuan 353 153 29 122 2 Binh Thuan 789 380 73 263 44 Gin Lai 1200 604 323 243 38 Kon Tum 1300 432 85 309 38 Dac Lac 1980 411 228 180 3 Lam Dong 1017 250 72 145 33 Dong Nal 759 207 96 101 10 Son Be 955 3S6 147 209 0 Tay Ninh 402 123 66 57 0 lio Chi Minh 203 4 1 1 2 Vung Tau- Ba Ra 205 16 2 14 0 Long An 438 149 77 72 0 Tien Glang 234 32 6 25 1 BenTre 225 17 10 7 0 Dong Thap 328 47 39 6 2 Vinh Long 149 7 4 3 0 Tra Vinh 236 11 7 4 0 CanTho 302 27 15 6 6 SocTrang 314 29 11 11 7 An Glang 342 18 7 8 3 Kien Gang 624 196 89 95 12 Minh had 767 273 164 103 6 Totals 33080 13440 2713 9324 1403 Source: National Institute of Agricultural Planning and Projectons 1993. - 15 - A hnex 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 Cao Bang 2039 2918 2166 2299 2054 2173 Lang Son 1496 1721 1838 1541 1376 1585 Bac Thai 434 523 572 771 674 672 Lai Chau 531 1261 1189 1197 1191 1192 Son La 1016 1248 1098 1183 1102 1128 Hoang Lieng Son 1064 1507 1277 1395 1649 1440 Guang Ninh 940 902 715 847 864 809 Vinh Phu 618 450 700 960 990 883 Ha Bac 650 727 652 573 628 618 Ha Noi Hai Phong HaSonfBinh 137 1219 1187 1184 1125 1165 Hal Hung Thai Binh Ha Nam Ninh Thanh Hoa 3454 3071 3128 2938 3017 3028 Nghe Tinh 2570 2320 2031 3129 3683 2948 Binh Tri Thien 1407 980 976 Guang Binh 257 296 277 Quang Tri 197 206 201 Tbus Thien-Hlue 364 376 247 QangNam Da-Na 1243 1112 915 1733 1698 1449 Thuan lai 680 417 577 524 566 556 Gia Lai-Kon Tum 1076 1076 990 783 832 868 Dac Lac 598 876 1318 1525 1819 1554 Lam Dong 581 608 669 743 703 705 Dong Nai 407 496 497 176 337 337 Son Be 125 659 741 722 700 721 Tay Ninh 541 364 479 181 293 318 Ho Chi Mlinh 89 48 74 51 50 58 Long An Minh hai Northern Mlountai 9477 11791 10744 11389 11091 11428 Red River Delta 3246 3842 2836 2391 2436 2210 North Central Co 7437 6374 6137 6902 7576 6700 South Central Cos 2938 2829 2772 3284 3323 3126 Southern Highlan 2255 2560 2977 3051 3354 3127 North East Mekon 1162 1567 1791 1130 1381 1434 Mekong Delta 1880 2058 2261 2687 2898 2615 Totals 28395 31021 29518 30833 32059 30640 Source: Government Statistics Office, 1992. Notes: Firewod is in thousand steers and wood cutting is in thousand cubic meters. -16- Annox 1 Table tl Page 16 of 48 Wood Cutting Production (in thousand m3) Province 1986 1987 1988 1989 1990 1991 Ha Tuyen 200 228 162 149 175 162 Cao Bang 32 89 64 58 55 59 LAng Son 82 56 58 60 S0 56 Bac Thai 62 60 87 91 100 92 LaiChau 115 142 120 117 115 117 Son La 63 104 68 94 91 84 Hoang Lieng Son 192 181 194 143 136 158 Guang Ninh 97 94 81 61 66 69 Vinh Phu 103 70 72 82 90 81 Ha Bac 91 105 101 73 72 82 Ha Noi 42 40 38 42 43 41 Hai Phong 30 29 28 25 28 27 lia Son Binh 85 87 87 79 75 80 Hai Hung 60 53 49 52 65 55 Thai Binh 56 30 34 25 32 30 Ha Nam Ninh 93 41 84 68 71 74 Thenh Hoe 128 125 115 101 104 107 Nghe Tinh 131 134 182 164 294 214 Binh Tri Thien 96 106 103 Guang Binh 37 49 43 Quang Tri 16 18 17 Thua Thien-Hue 39 39 39 Qang Nam Ds-No 56 73 70 128 122 107 Thuan lisi 24 31 31 53 70 52 Gia Lai-Kon Tum 94 137 150 176 161 162 Dac Lac 212 .259 191 l18 368 247 Lam Dong 120 131 154 95 187 145 Dong Nai 112 95 87 77 72 79 Son Be 148 IS0 142 126 108 125 Tay Ninh lle Chi Nlinh LongAn 25 243 54 154 145 117 Nlinh hai 45 78 82 127 113 107 Northern Mountai 947 1024 904 854 877 878 Red River Delta 545 465 496 424 384 423 North Central Co 489 501 S00 - 397 505 459 South Central Cox 194 195 200 237 298 245 Southern llighlan 658 745 695 648 716 704 North East Mekon 357 310 312 229 213 251 Mlekong Delta 203 470 277 474 462 403 Totals 3393 3709 3383 3262 3455 3363 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 Residue Rural Northern Highlands 48.50% 49.10% 0.00% 2.40% 0.00% 0.00% North Midlands 48.50% 49.10% 0.00% 2.40% 0.00% 0.00% Red River Delta 42.00% 20.00% 0.00% 37.00% 0.00% 1.00% North Central 60.20% 39.80% 0.00% 0.00% 0.00% 0.00% Southern Highlands 60.20% 39.80% 0.00% 0.00% 0.00% 0.00% South Central 60.20% 39.80% 0.00% 0.00% 0.00% 0.00% N.E. of Mekong Delta 22.80% 72.70% 3.50% 0.00% 0.00% 1.00% Mekong Delta 22.80% 72.70% 3.50% 0.00% 0.00% 1.00% Urban Northern Highlands 17.70% 51.00% 2.10% 25.00% 4.20% 0.00% North Midlands 17.70% 51.00% 2.10% 25.00% 4.20% 0.00% Red River Delta 1.90% 27.00% 0.00% 54.10% 8.70% 8.20% North Central 17.70% 51.00% 13.50% 13.60% 4.20% 0.00% Southern Highlands 17.70% 51.00% 13.50% 13.60% 4.20% 0.00% South Central 17.70% 57.00% 13.50% 13.60% 4.20% 0.00% N.E. of Mekong Delta 0.00% 57.00% 24.70% 0.00% 17.10% 1.20% Mekong Delta 0.00% 57.00% 24.70% 0.00% 17.10% 1.20% Source: 1993 UNDP/ESMAP Study - 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 Fuelwood Charcoal Coal Kerosene Electricity Residue ('000 tons) ('000 tons) ('000 tons) ('000 tons) ('000 m3) (GWh) Rural Northern Highlands 6829 4118 0 108 0 0 North Midlands 1972 1189 0 31 0 0 Red River Delta 2522 1140 0 730 0 48 North Central 6875 2707 0 0 0 0 Southern Highlands 2973 1171 0 0 0 0 South Central 4524 1781 0 0 0 0 N.E. of Mekong Delta 1364 2591 45 0 0 26 Mekong Delta 3991 7579 132 0 0 75 Rural Totals 31050 22276 177 869 0 149 Urban Northern Highlands 193 332 5 87 5 0 North Midlands 54 97 1 24 1 0 RedRiverDelta 37 313 0 336 17 102 North Central 147 253 24 36 4 0 Southern Highlands 96 165 16 24 2 0 South Central 255 438 42 63 6 0 N.E. of Mekong Delta 0 1142 180 0 59 26 Mekong Delta 0 710 112 0 37 16 Urban Totals 782 3450 380 570 131 114 Vietnam Total 31832 25726 557 1439 131 263 Vietnam ('000 tons 11934 9526 387 767 107 24 of Oil Equivalent) Source: 1993 UNDP/ESMAP Study - 19 - Annex I Table 14 Page 19 of 48 Population and Other Variables (population and area figures in thousands) Province Total Total Population Rural Rural Net Non-h inh Population Population Growth Rate Population Households Mligration Percent of Population 1979 -- 1989 1979-89 939 1989 1939 1992 Ha Tuyen 774 1026 3 930 160 -14 67 Cao Bang 471 565 1.9 509 91 -28 96 Lang Son 478 611 2.6 530 94 -27 85 Bac Thai 316 438 2.6 377 56 *5 81 Lai Chau 771 1032 3.5 861 151 -7 55 Son La 809 1030 3.7 833 161 .5 32 Hoang Lieng Son 482 682 3.1 585 87 -1 82 Guang Ninh 661 813 2.2 454 94 3 11 Vinh Phu 1376 1807 2.9 1583 339 1 9 Ha Bac 1562 2064 3 1937 423 5 7 Ha Noi 2456 3056 2.3 1960 431 -34 1 Hai Phong 1150 1447 2.4 989 233 -2 0.2 Ha Son Binh 1426 1839 2.7 1630 346 20 25 Hai Hung 1959 2445 2.4 2264 572 -1 0.2 Thai Binh 1382 1632 1.8 1526 396 -30 0.1 Ha Nam Ninh 2595 3157 2.1 2817 699 -67 0.5 Thanh Hoa 2348 2993 2.6 2760 609 -22 I5 Nghe Tinh 2870 3583 2.4 3273 705 -44 8 Binh Tri Thien 1759 1997 1.3 1638 343 -28 13 Qang Nam Da-Na 1458 1738 1.9 1211 271 -16 4 Quang Binh 1985 2287 1.6 1965 429 -40 13 Phu Khan 1177 1460 2.3 1036 204 3 9 Thuan imi 917 1170 2.6 906 173 -I 12 Gia Lai-Kon Tum 585 876 . 4.3 695 130 27 51 Dac Lac 482 976 7.7 793 156 116 30 Lam Dong 388 639 5.4 426 91 78 24 Dong Nai 3293 3924 1.9 764 149 62 11 Son Be 651 938 3.9 U87 181 41 9 Tay Ninh 676 793 1.7 700 137 9 2 Ho Chi Minh 1292 2007 4.7 IS26 285 91 8 VungTau- Ba Ria 92 135 4.1 11 2 16 2 Long An 949 1120 1.8 930 180 -8 0.3 Tien Giang 1173 1337 1.4 1281 217 8 0.4 Ben Tre 1475 1774 2 1330 236 -1 6 Dong Thap 1258 1483 1.7 1296 253 -11 0.6 Cuu Long 1034 1214 1.7 1120 226 -12 0.6 Hau Giang 1497 1809 2 1632 312 0 16 An Giang 2226 2681 2 2194 390 -9 16 Kien Giang 986 1198 2.1 941 169 10 16 Mlinh hai 1213 2555 2.6 1226 218 1 7 Totals 50452 63331 107.9 50266 10402 80 825.9 Sources: tealth 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 Maize Casavz Tea Coffee Rubber Mulberry -u.1 -4u. -U54 u u u He Tnyen 03 -0.2 0 0 0 0 Coo8 ang -1 1.1 -0.06 0 0 0 LangSon 4.1 -0.7 0.06 0 0 0 a eThaI 0.2 -08 0 0 0 0 LAIChau 1.6 O0 -0.11 0 0 0 So LA 0.3 412 -1.14 0 0 0 HoangLUengSon 1 -0.2 0 0 0 0 Gaag Nlnh 7.5 -4 -1.77 0 0 54 Vlush Pu 4.9 -2 0.58 0 0 -558 Ha Bac 11 0 0 0 0 -99 Ha Nol 0.4 0 0 0 0 0 Hal Phong 2.4 -4.1 -0.03 0 0 -251 Ha Son Binh 10.1 0 0 0 0 -36 Hai Hong 5.7 0 0 0 0 297 Thal Binb 6 0 0 0 0 428 Ha NaNlnh 5 -6.7 03S 0 0 -13 Thumh Hoz 2.2 -5.9 0.24 -696 -39 14 Nghe Tinb -0.6 4.3 0 0 0 -11 Bih Tri Thlen -1 -54.4 0 0 0 867 Qang Nam Ds-Nang 4.1 2.7 0 0 77 48 Quang Bibh 4.4 -12.4 0 0 0 -581 Phu Khan -1.3 -12.2 0 160 23 70 Thuan Hli -1.9 -7.6 03S S858 1915 0 GCa Lai-Kon Tum -1.2 -7.7 0 14922 257 S Dnc Lae -4.5 -2.3 336 9801 0 4509 Lam Dong -6.9 48S 0 IS338 9369 202 Doag Nnl -0.2 - -5.6 0 195 5679 0 Son Be -0.4 -116 0 0 140 0 Tay Ninh -1 -1.1 0 0 -14 0 lio Cb IMink 0 0 0 0 0 0 V.ngTau- Ba R 0.09 0 0 0 0 0 Long An 0.2 0 0 0 0 O Tien Gang -0.3 0 0 0 0 0 Ben Tre -0.2 0 0 0 0 0 Dong Thop 0.5 0 0 0 0 0 Cuu Long 0 0 0 0 0 0 HsuG Gng -O0 0 0 0 0 -165 An Gang 0 0 0 0 0 0 KIen Gibng 0.2 0 0 0 0 0 Minh hal 37.79 -156.5 1.29 45578 17407 4514 Totals Sources: Health Sector Report, World Benk 1992, Warvinge 1992, Gray 1"2, Government Statistics Offe. I992. - 21 - Annex 1 Table 16 Page 21 of 48 Shifting Cultivation Area 1990, By Province (in 1000 ha) PROVINCE Shifting Ha Tuyen 10.4 Cao Bang 5.4 Lang Son 1.3 Bac Thai 0.7 Lai Chau 6.2 Son La 3.2 Hoang Lieng Son 10.6 Guang Ninh 4.4 Vinh Phu 0.8 Ha Son Binh 1.9 Thanh Hoa 4.4 Nghe Tinh 2.2 Quang Binh 1.1 Quang Tri 0.9 Thuan Thien Hue 1.3 Qang Nam Da-Nang 3.2 Quang Ngai 1.5 Binh Dinh 1.6 Phu Yen 1.8 Khanh Hoa 2 Thuan Hai 5 Gia Lai-Kon Tum 52.4 Dac Lac 34.8 Lam Dong 7.7 Son Be 12.7 Totals 177.5 Source: Forest Inventory and Planning Institute, 1990 - 22 - Annex 1 Summary of Mineral Resources in Vietnamr Page 22 of 48 Estimated Reserve Minerals and Rocks (tons) Annual output (tons) Remarks Coal 3,500 M Peaked 6.9M in 1988, 3,600M tons in Quang Ninh, 80M tons in Thai currently 3M Nguyen. Total design capacity 14.5M tons/year. Oil Nearly 10,OOOM 2.7M (1990) In northern lowlands, southern deltas and continental shelves Uranium N.D. none In Cao Bang, Lai Chau, Quang Nam Black metals Bauxite Proven 3,OOOM limited Good quality (ore content 40-439%) Chrome 12M limited Only in Thanh Hoa, cobalt and nickel exist in ore Iron 1,000M 0.5M In Bac Thai, Ha Tuyen, Cao Bang, 700M tons at Thach Khe mine. Also in Quang Ngai. Manganese 3.5M 1,000 In Cao Bank, Ha Giang, Nghe An, Khanh Hoa Titaniura 7.2M N.D. In coastal regions Colored and Precious Metals Antimony not significant limited In Tuyen Quang, Quang Ninh, Hoa Binh, Thanh Hoa, Nghe An Bauxite, laterite 1,OOOM limited In the south Bauxite, sediment 95M limited In Ha Giang, Cao Bang, Lang Son Copper 637,000 low In Lao Cai, Son La, Cao Bang, 550,000 tons of good quality exist at a single mine Chromite 12M potential 20,000 Relatively low quality, only in Thanh Ho. Gold 170,000 limited In 53 areas: Cao Bang, Bac Thai, Lang Son, Quang Ninh, Bong Mieu, Thanh Hoa, Nghe An, Binh Molybdenum N.D. none Thuan, Lam Dong, Dong Nai... Mercury N.D. none In Lai Chau, Lao Cai, An Giang Nickel 158,000 none In Bac Thai, Ha Giang, Ha Ninh Binh Silver N.D. limited In Bong Mieu Tin and wolfram 225,000 low, 1995 target: In Tinh Tuc, Pia Oac, Tam Dao, Quy Hop, 1,000 Lam Dong, Kontum, Nghe An, Bao Loc Zinc and lead 2M Limited, by Bac Thai, Tuyen Quang, Cao Bang, Ha Giang, individuals Yen Bai, Lai Chau, Nghe An Fertilizers Apatite 2,000-3,OOOM 600,000 408M tons in Lao Cai Barite 3M limited 15 sites in Ha Bac, Bac Thai, Lai Chau, Nghe An Limestone 41M N.D. In many regions Phosphorite low 17,800 Smal scattered reserves Pyrite 8.7M none Small scattered reserves in Vinh Phu, Ha Tay, Tuyen Quang, Thua Thien Serpentinite 40M none 31M tons in Lao Cai, SM tons in Thanh Ho. -23- Annex 1 Table 17 (p.2) Page 23 of 48 Estimated Reserve Minerals and Rocks (tons) Annual output (tons) Remarks Building Materials Cement clay 290M N.D. In Hoang Thach, Co Dam, Ha Tien Granite very large limited In Bac Thai, Ha Tay, Thanh Hoa, Binh Dinh, An Giang... rich in varieties Materials for Pottery and Chinaware Dolomite 13M N.D. In La Giang (8M tons), Ngoc Long (5M tons) Feldspar 9.5M N.D. In Vinh Phu, Lao Cai Fluorite 6.2M N.D. In Cao Bang, Lai Chau, Phu Yen Kaolinite 196M N.D. In Red River, Bac Thai, Quang Ninh, Da Lat, Dong Nai Sand, quartz 90M N.D. In Khanlh Hoa, Quang Ninh, Quang Nam-Da Nang Sand, silicate large N.D. In coastal areas, high quality Precious and Semi- Precious Stones Ruby, sapphire N.D. limited In Luc Yen, Quy Chau, Di Linb, Phan Thiet, Xuan Loc. Ruby has high quality Topaz, beryls, N.D. limited In Thanh Hoa, Nghe An, Vinh Phu, Quang nephrytes, zircon, Ninh, Cao Bang, Di Linh, Phu Yen... jadeite, garnet, spinel, amethyst, tournaline.... Note: N.D.: No Data Source: Asian Development Bank, Vietnam Environment Sector Study, December 1992. - 24 - Annex 1 Table 18 Page 24 of 48 VIETNAM: 1991 PESTICIDK. USE Quantative (Mt) Value Crop/ D-scription '000) USS P-vte In the North and Center 1. Total of technical arade 1.121.00 10,000 On three main crops: rice, industrial crops and other. - Insecticies ) 620.90 - Fungicides 4.96 - Other & solvant & 495.17 additive 2. Total of finished groduct 3.540.40 Unavailable - Insecticides EC.D 2,694.60 - Fungicides EC 706.48 * Leaf eating insects, stem borer, sucking insects 0 Sheath blight, rice blast. -Herbicides EC 123.91 - Other EC 15.38 II. In the South 1. Total of technical arade 2.741.10 13,000 - Insecticides 1,487.77 - Fungicides 14.00 - Herbicides 20.24 - Other 17.92 - Solvent and additive 1,201.22 2. Total of finished product 4.356.40 - Insecticides EC WP 3,406.60 * Leaf eating insects - Fungicides EC 286.59 * Sucking and stem borer - Herbicides EC 471.71 * Sheath blight, rice blast - Other EC WP 185.85 * Nemathodes TOTAL Technical grade 3,862.10a 23,000 Finished products 7,896.80 Unavailable A/ Equivalent to about 13,000 tons in finished product equivalent. Source: Plant Protection Material Supply Companies I and 11 and Department of Plant Production and Protection in Viet Nam. Problem Soils and Their Development Constraints by Agro-ecological Zone Agro-Ecological Zone Parent Rock Soils Technical Constraints Development Options Main Development Constrafnts Mountain Region and Acid schist, mica Lithosols, Orthic Sheet erosion with Erosion control Lack of food Midland of the North schist & Liparitic Acrisols, Ferric resultant surface through integrated security; poor tuff with limestone AcrisoLs & Limestone stoniness. Soils watershed management communication and outcropping based Chromic Luvisols derived from acid on sloping land; deep infrastructure; and Calcic Cambisols parent material and ploughing of degraded tradition of shifting the degraded (leached) soils; imprdved cultivation; soils of the midlands cycifng of organic insufficient testing and lowlands (176,000 matter of appropriate ha), have low pH, CEC technology. and organic matter and in some cases Al toxicity. Soil properties Improve with depth on degraded soils Red River Delta Riverine, brackish Gleylc Acrisols, Saline soils (350,000 Delta master plan to Overpopulation water and marine Eutric Gleysols (inct. ha), acid sulphate develop saline soils; necessitating alluvium saline phase, Eutric soils (50-60,000 ha) increased cropping resettlement; lack of Fluvisols and Thiomic and waterlogged peat intensity on alluvial funding for required Fluvisols soils (10,000 ha) and soils; reduction of water control and increasing acidity of acidification process; infrastructure alluvial soils integrated development. crop/Iivestock/aquacul ture; improved cycling ________________________ of organic matter Northern Central Uplands: Acid and Uplands: Orthic Sheet erosion, surface Integrated watershed Inadequate Coast mica schist with Acrisols, Ferric stoniness in uplands; management in uplands. infrastructure, limestone outcrops. Acrisols Lowlands: low pH, CEC and dune stabilization in market opportunities Lowlands: Rivermne, Chronic Luvisols and organic matter in both lowlands combined with and finance for water brackish water and Eutric Regasols (dune upland soils and improved soil organic control. Poor upland 3 mrine alluvium sands) coastal sands. Flash matter content technology. x flooding in saline (particularly to raise X lowlands. Dune soil moisture o ¢ encroachment retention) and - I__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ fertility. _ _ _ _ _ _ _ _ _ 00 - Agro-ecological Zones Parent Rock Soils Technical Constraints Development Options Main Development Constraints Southern Central Uplands: Acid and Uplands: Orthic and Sheet erosion, surface Integrated watershed Lack of finance for Coast mica schist with Ferric Acrisols & stoniness low ph and management in uplands. water control. Limestone outcrops. Chromic Luvisols. CEC, Al toxicity in Dune stabilization in Inadequate technical Lowlands: Riverine, Lowlands: Chromic upland soils. Flash lowlands. base for upland brackish water and Luvisols, Dystric and flooding in saline development. marine alluviun Eutric Gleysols, lowlands. Dune drift Pellic vertisols and a covering 320,000 ha. Eutric Regasols. Low soil organic matter content. l Central Highlands Hainly basalt, Rhodic, Orthic and Deforestation and Agro-forestry; Uncontrolled economic porphyritic and Acidic Ferralsols, erosion on steeper Livestock grazing; migration into diabase parent Pellic Vertisols and slopes; low resettlement with region; inadequate material. Some acidic Ferric and Orthic groundwater reserves; rainfed agriculture. infrastructure parent material Acrisols. Includes low fertility of some approx. 420,000 ha of acidic soils. Low degraded soils. organic matter content. | _ Northeast of Mekong Old alluvium Ferric and Gleyic soil degradation; Agro-forestry (rubber Irrigation Delta Acrisols and some acidity with and fruit) development (Dau Rhodic Ferralsols associated low CEC and Tieng dam). Legume high AL; Legacy of cover crops. chemical defoliation; low fertility (leaching) and soil organic matter. Mekong Delta Riverine, brackish Dystric Gleysols, Saline soils (650,000 Water control. Financing of water water and marine Eutric Fluvisols ha), acid sulphate control and altIviun (alluvial soils) and soils (1.48 mitlion conservation. their saline phases ha) and tropical peat Coordination with (saline soils); soils (170,000 ha) and Mekong Secretariat Dystric Histosols increasing acidity of members. (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 Workshop on Investigations of Lands with Declining and Stagnating Productivity; FAO, Bangkok, 1986 q - C") x Estimated Supply and Demand of Rouhange Feeds by Agro-Ecological Zone and Animal Types Livestock Population Livestock Roughage Requirements 000 head l'oOtontes DM) Fattening Total Fattening Total Total Rougha ge Agro Ecological Zone Cattle Buffalo Sows Pigs Cattle/I Sulffao/2 Ruminants Sow/3 Plgs/4 Pigs Requirements Northern Mountain 555.7 1392.6 486 2780 833.8 2924.5 3758.1 93.2 417 510.2 4268.3 and Mkdlands Red River Delta 257.1 272.4 297.7 2303 385.7 572 957.7 44.7 230.3 275 1232.7 Central Coat of 655 583.7 241.9 1837.9 982.5 1225.8 2208.3 46.4 276.7 324.1 2532.4 Northlands Central Coast of 868.6 16 193.5 1197.2 1302.9 327.6 1630.5 38.7 179.6 218.3 1848.8 Southlands Centrel Hlghada 368.3 83.9 93.5 505.3 552.5 134.2 686.7 18.7 75.8 94.5 781.2 North-East of 207.4 138.9 U.3 473.5 311.1 291.5 602.6 13.7 71 84.7 687.3 Southand Mekong Rivr Deta 223.5 251.2 215.4 1521.4 335.3 527.5 862.8 32.3 152.1 184.5 1047.3 TOTAL 3135.6 2858.6 1576.3 10618.3 4703.6 6003.1 10706.7 289.7 1401.5 1691.3 12398 I/ Cattle rough ag rquirtmnl estnimated at 1.5 ton DM per year. 2/ lull fto rougth go requiernent estimated at 2.1 ton DU per yner. 3/ Sow toughs ge trequkemnt conges forn 0.1 ton OM In dolet zones to 0.2 ton DM In mountainu zones. 4/ Fattenn pig roughs go requirement ranges front 0.1 ton OM in delta zones to 00.1i ton DM In mountainous zones. OQ ot 3 oq Pl- 0-hl W cr.OS Ealimeled Supply and nemand of nofucmaij Fpods by Ago-Ecological Zone./I Pasdue Psodadlon otl lobla foareo Rodudlon Aeas Pasft,e Total Gati Oop fluglvag rtit read Agro-EwobgoglZon . P* kra Frusl Ba.nLancCweh1Oop%2 Parluc Forest fwenLanc Dop Total PVo0jDJAn Slov814 AvestlJb rq*tli wuid Okncea5 ----------------- -------- p. ---- - M Ions DX - (M In -DI (Dm lo) tEXDIonDls (aXflon fr1)l onL D LIO (U Ion D4 NorCwn Ul'bouhs ondJMdIncs 190.6 151Z6 5512.0 67Z. 571.e 065.0 16536 43.6 2874.1 2M7.4 1t57.2 4531.2 42GS2 7G30 red flv Def 2ls 2065 Z2L0 7td.3 56.3 61.4 68.4 35.5 241.6 3456.? 2419.7 266.3 U1226 14266 Cvio*l Coest of HortsIonos 650 1549.5 2024.0 556.7 162.5 619.6 607.2 27.t 1417.3 2010.5 1206.3 2M1.6 2St23 91.3 Cent ml Coast d I Sou"nas 6.9 1406.0 1903.0 4706 2J3 5CZ4 570.9 23.5 1179.1 2027.3 1216 4 23D 5 1o84U eS6/ I Centoallkjbncb 39.0 3306.o 14561 2494 1t7.0 13232 439.7 125 12.4 C06.9 3X4.1 2256.6 71.1 14/54 I Ntrvh-Easl of Saum3nas 2.6 510Q 672.4 509.7 7.0 200.6 201.7 25.5 4350 105G.7 634.0 Ioc0.0 6613 318e ikowinFlvwODef 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 CQII TOTAL. 320.8 867211 I1234 5J19.0 936.8 3489.2 30.7 267.0 -83.7 2199.5 14622.5 2JQet2 123976 IMY2S 1i PaltsuenrrdopreslllWa podrdonbksnedon esIhuabduUlratp ForoCC 2/ Cwam aopb wLsownsr tdombwUla rI endmclle. 3J Prostra be"Cn aop Urdeswaeled aI G6$ of anvaoptaepea 41 No aoavenc aon fir 1a muev use of aop slow. aspedaly as a fuel hIn he dere Donw. 6t feed sutfus s fnodcalead quay. The ceu*lVlSh h Usa only ions lssizus pastue. " -3 20 0 I- -29- Annex 1 Table 22 Page 29 of 48 Projected Production and Demand Balance for Mleat Region Category 1992 1995 2000 2005 ( OCO mt) ( 000 rnt! (t00O mt) (000 m:U Northern Mountain Production 141.7 162.7 205.1 255.7 Domestic demand 146.4 174.3 233.0 311.6 Meat exoorti Borcer trade 2.7 3.1 4.0 5.1 SurokmW"efidt (7~.4) (14.7) (31.!n :57.9. Red River Delta Prooucuon 157.8 186.7 248.3 331.7 Domesuc demand 129.0 153.1 203.6 270.9 Meat exoorts 6.4 6.4 6.4 6.4 Bofder trade si 5lusdeflct 2.4 27.2 38.3 54.4 North Cenitral Coast Proucuton 97.9 112.5 142.0 179.5 Domestic demand 83.4 90.7 130.7 173.0 Meat exoorts Border wade 0.8 0.9 1.2 1.5 SlAw"elltl 13.7 12.9 10.2 5.0 South Central Coast Procuction 70.3 81.0 102.5 130.4 Domestic demand 50.9 60.1 79.2 104.3 Meat exOorts 5.0 5.0 5.0 5.0 Border trade Sulua_ eliil 14.3 15.9 1 t6 <21.1 Central Hightands Production 27.5 32.3 42.1 55.2 Domestic demand 39.4 51.9 81.0 126.4 Meat exnorts Borger trade S&,pl 9 ieI (12.3) (19.7) (369) (712 Southeast Production 54.0 67.0 96.0 141.0 Domestic demand 135.0 162.6 221.7 302.3 Meat egoorts 5.0 5.0 5.0 5.0 Border tade S 9rPAd ~ (6OI0) (100.6 (129) (166.2 Mekong River Delta Production 171.9 211.3 296.8 423.5 Domestic demand 113.1 133.4 175.a 231.6 Meat export5 5.0 5.0 5.0 5.0 Borcer tfade (1.5) (1.7) (2.2) (2.81 Surpkad Illeflt 55.3 74.6 120.2 1a8.7 Vietnam Producuon 721.1 653.6 1.136.0 1.519.9 Domestlc demand 697.6 a34.1 1,125.0 1.520.0 Meat exports 21.4 21.4 21.4 21.4 Bodrer trade 2.0 2.3 10 3.8 Sia:Me~ 0.D (4.3) (13.4) (25.2 Source: Draft Fmnal Report, Vietnam Meat Industry Market Development Study, Lincoln International Ltd. - 30 - Annex 1 Table 24 Page 30 of 48 Officially Sponsored Migration (1,000 Persons) 1981-89 1990 1981-90 Total Migration 2253 168 2421 Within Province 1662 151 1813 North 521 n.a. n.a. South 1141 n.a. n.a. Outside Province 591 17 608 North to North 14 1 15 North to South 441 8 449 South to South 136 8 144 Midlands and Mountains 200 15 215 Within Province 194 15 209 Outside Province (N-S) 6 6 Red River Delta 356 11 367 Within Province 88 6 94 Outside Province 268 5 273 (N-N) 14 (N-S) 254 North Central Coast 420 29 449 Within Province 238 n.a. n.a. Outside Province (N-SO 182 n.a. n.a. South Central Coast 320 9 329 Within Province 220 n.a n.a. Outside Province (S-S) 100 n.a n.a. Central Highlands 164 3 167 Within Province 164 3 167 Outside Province Northeast of Mekong 343 9 352 Within Province 309 n.a. n.a. Outside Province (S-S) 34 n.a. n.a. Mekong Delta 450 91 541 Within Province 448 n.a. n.a. Outside Province (S-S) 2 n.a. n.a. Source: Center For Population and Human Resource Studies - 31 - VILLAGE PROFILE Annex 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: DOLLAR I HOUSEHOLD BUDGET I WHOLE VILLAGE ITEM YIELD No. Ha. HARVEST VALUE I-------------------I---------------- (t/Ha) (Kg.) / UNIT ICONSUMED I CASH ICONSUMEDI CASH …--- --- ---- --- --- ---- --- ---- --- --- ---- --- --- I______ I---------I--------I------- VALUE OF ON-FARM PRODUCTION: I I I I PADDY RICE 1.20 0.21 252 0.25 I 63.00 I 1 5,040 UPLAND RICE 0.75 1.00 750 0.25 I 187.50 I I 15,000 MAIZE 2.00 0.50 1000 0.25 1 25Q.00 I I 20,000 I GRAZING/FALLOW 1.29 I l CATTLE 1 30.0 I 30.00 I I 1,200 CHICKEN 15 1.50 I 22.50 i I 1,800 PIGS 4 20.0 1 80.00 1 I 4,000 Sub-totals: I 633.00 I I 50,640 I * ~ ~ ~ ~ ~ ~ ~~~~~~I l l I VALUE OF OFF-FARM PRODUCTION: l l l l OPIUM 0.01 0.30 3 120 I 360.00 I 1 3,600 FIREWOOD 60 Days 4 Bun/Day 240 0.25 1 60.00 I 1 4,800 1 FOREST FOOD (3-6 mth) 150 day @ 5 Kg/day 750 0.1 I 75.00 I I 6,000 Sub-totals: I 495.00 I I 14,400 I TOTAL VALUE OF HOUSEHOLD PRODUCTION: 11,128.00 1 I 65,040 1 l l I I OFF FARM INCOME: l l l l OPIUM 0.01 0.20 2 120 I I 240.00 I I 20,400 FIREWOOD 30 Days 4 Bun/Day 120 0.25 I I 30.00 I 1 2,400 LABOUR I I 0.00 I I 50 CHICKEN 6 1.5I 1 9.00 I I 720 CATTLE 1 30 I 30.00 I I 1,200 Sub-totals: I I 309.00 I I 24,770 I l I I OFF FARM COSTS: l l l l RICE (for 3-6 months) 150 day e 5 Kg/day 750 0.25 1 I 187.50 1 1 15,000 OIL, CLOTHES, SALT, ASPRIN I I 100.00 I I 8,000 OTHER (incl. savings) I I 21.50 I I 1,770 Sub-totals: X I 309.00 I I 24,770 ----------------------- -----------_ ----_ ----- ----------------------- ---------------------- Priorities for Action In Major Forest Reserves of Vietnam . I Biodiv Mgmt Plan Status Infra- Buffer | Tourism Survey Urgency Scale of Name Province . value:. ..(Year) . Year structure J Zone (hal Potential Priority of Action THREATS threat Muong Nhe Lai Chau B 1993 NR 1986 None 100,000 x F H High Trung Khanh Cao Bang B - None 10.000 V . H F Medium Na Hang Tuyen Ouano B . . None Scientific V x H High Pu Mat Nghe An A 1993 - None 20,000 - x H L M High Hoang Lien Son Yen Bal/Lao Cal A Pan NR 1986 None 20,000 x H E Medium Huu Lien Lang Son a 1991 NR 1986 None 5,000 H L Low Ba Be Cao Bang A 1991 NP 1986 Little 2.000 High x H P Medium Ba Vi Ha Tay C 1991 NP 1986 Yes 4,000 High H E F High Tam Dao Vinh Phu/Bac Thai/ a 1993 NP 1986 Yes 10,000 High H L High Tuyen Ouang Cat 8a Haiphong A 1991 NP 1986 Yes 4,000 High H L S Medium W Cuc Phuong Ninh BinhlThanh B 1991 NP 1962 Yes * 5.000 High x H L C Medium Hoa/Hoa Binih Ben En Thanh Hoa C 1991 NP 1986 Little 5,000 . . _ H P Hioh Vu Ouang Ha Tinh A 1993 NP 1986 None 15,000 Scientific x H Low Ho Ke Go Ha Tinh A - - None 10,000 - x H L F High Phong Nha Ouang Binh 8 1993 NR 1986 None 5,000 High _ . F Low Bach Ma Thua Thien-Hue A 1992 NP 1986 Yes 20,000 High x H L M High Ngoc LUnh Kon Tum B 1994 NR 1986 None 5.000 E H Medium Mom Ray Kon Tum C Prov. NR 1986 None 5S000 _ x L H High Kon Cha Rang Kon Tum B - NR 1986 None 2,000 . _ H Medium ul For acronyms and source informnation, see page 2 of this table. . -d.,..it oI- Kon Ka Kinh | Kon Tum | B | | NR 1986 J None | 2,0001 - j _ | H Medium Nam Ka Dac Lac A 1991 Uttle 5,000 . x H High Thuong Dong Nal Lam Dong B - - None 5,000 V x H High Yok Don Dac Lac A 1992 NP 1986 Yes 5,000 Medium x F H Low Chu Yang Sinh Dac Lac A 1994 NR 1986 None 2000 . x 7 Low Bl Dup Lam Dong A 1994 . Nonre 5.000 Medium V x E H Medium Bien Lac Nul Ong Binh Thuan B NP 1986 None 5,000 . V L C High Cat Tien Dong Nai A 1993 NP 1986 Yes 10000 High x E H L High Con Dao Ba RiaNung Tau C 1991 NP 1986 None 5,000 Medium E H M High Phu Quoc Kien Giang B Prov. NR 1986 None 5,000 . E Medium _ ~~~~~~~~~~~~w Tram Chim Dong Thap B - Yes - Scientific E D Medium w U Minh Kien Giang B NR 1986 Yes F Medium Minh Hal Mangroves Minh Hal B1 NR 1986 None - x E H L C D High Threats: C Cutting fuel Biodiversity value: A = very Important D Drainage (Bio-value) 8 - important E Encroachment C - low value F Fishing H Hunting L Logging M Mining S Sedimentation Source: Biodiversity Action Plan, 1994. 11* a. 'N Review of Wetlands Sites in Viet Nam Name Province j Type j Area (hal Location J Speclal features Raserve Threat [ Bio Survey J Recommendutions Ba Be Laka Cao Bang FL 450 22045'N.105037'E Only large montane lake NP P A L Strengthen protection of __________ __________________ in N Vietnam _ N.R. Cam Son Reservolr Ha Bac R 2,620 21°32'N.106°34'E Local fish and some NR P H C L Maintain as nature wintering birds reserve Nul Coc Reservoir Thai Nguyen R 2.580 21-35'N,105°42'E 10 spp of fish and NR P H C M Extend to include wintering birds catchment forest Thac Ba Reservolr Yen Bai R 23.400 21 42'-22°05'N, Waterfowl in winter NR P H 8 M Relforest islets and sur- 104°45'-10503'E rounding hills Chu Lake Vinh Phu FL 300 21°36'N.104054'E Freshwater vegetation R H 8 H Survey to assess and waterfowl protection needs w Hoa Blnh Reservoir Hoa Binh, R 72.800 20-48'-21 45N. Long deep lake in valley. P C 8 H Survey to assess Son La 104005'-105015'E fish protection needs Chinh Cong Vinh Phu FL 400 21 31'N.10505'E Fish, waterfowl and R H B H Should be given local freshwater vegetion protection Tam Dao Ponds Vinh Phu FL 2 22025'N,105"35'E Several small ponds NP D C L Apply better protection with endemic newt to ponds Vac Swanp 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 R D H P A L Clean up pollution, ban I migrant waterfowl reclaimation Ouang Ha Saids Ouang Ninh S 4.000 21 20'N.107052'E Coastal sandllats D H C M Survey to assess needs a/ For acronyms and source information, see page 5 of this table. 10 0 . Name Province Type Area (hal Location Special features Reserve Threat RIo Survey Recommendations Cai Rau Ouang Ninh M 500 21010'N,107°25'E Best example of northen C H 8 M Protect as example of Mangroves mangroves provincial reserve Yen Lap Lake Ouang Ninh R 600 21005'N,106050'E 8rackish reservoir H C H Survey 6 ban hunting Haiphong/Cat Ba Haiphong M 2,300 20050'N,106052'E Mangroves and mudllats H C C L Try to protect example Cat Ba Lake Haiphong FL 2 20045'N,107000'E Small lake and fauna NP D C L Protect fragile site Xuan Thuy Delta Ha Nam Ninh SM 4,000 20010'N,106035'E Mangrove, mudliats, PR H C A L Protect fragile site wintering birds _ Cue Day Flats Ha Nam Ninh S 1,000 19055'N,106005'E Coastal mud and sand H A L Combine into RAMSAR Hoe Lu Swamp Ninh Binh FS 1,000 20018'N.105055'E Swamp vegetation in F D B H Should be given local limestone area protection 8a Thuang Thanh Hoa FS 200 19059'N,105028'E Freshwater swamp R C H Survey to assess Swamp veetation _ protiection needs Song Muc Lake Thanh Hoa R 700 19042'N,105033'E Orioinal lake enlarged as NP F P a M Control destructive w IBan En) I reservoir fshing methods Yen My Reservoir Thanh Hoa R 300 19030'N,105041'E Reservoir wilt fish and D C H Survey to assess birds protection needs Ke Go Reservoir Nghe An R 2.500 18°13'N.105°55'E Fish and waterfowl H B L Include reservoir in (White-winged Duckl nature reserve Phe Tem Giang Thua Thien-Hue L 8,000 1635'N,10730E Large coastal lagoon H F B H Manaoe with Dam Cau Lagoon l lish and migrant birds Hai Dam Cau Hal Thua Thien-Hue L 12,000 16°20'N,107050'E Largest coastal lagoon H F B H Protect part as reserve Lagoon fish and' migrant birds and apply no-hunting Son Tra Ouang Nam- Ro 200 16°05'N,106°15'E Reserve has marine NR D H C M Stricter protection of Danang sector with rocky coast coastline needed Cu Lao Chem ON-Danang Ro 50 15S57'N,106030'E Rocky shoreline NR H C IL Ban hunting Phu Nlnh Lake ON-Danang R 1.000 15026'N,108°30'E neservoir and waterfowl H C M Assess protection _ _ needs I P V.o Name Province Type Area (hal Location Special teatures Resarve Threat Blo Survey Recommendations Dam Tra 0 Binh Dinh L 2,000 14°20'N.109007'E Brackish lagoon, birds H F C M Assess protection needs Vinh Nuoc Ngol Binh Dinh L 2,000 14°10'N,109°10'E Brackish lagoon, birds H F C M Assess protection __________________ ____________ __________ ~~~~~~~~~~~~~~~~~needs Ye Li Reservoir Kon Tum R 1,000 13059'N,107'35'E Reservoir In Mekong drainage H F C M Survey to assess Im- __________ ____ _ portance Bien Lake Gia Lai VL 600 14003'N.108001'E Volcanic lake.3 endemic spp of F A M Should be nature ______________ _____ _______ _____ _______ ____________ f fish reserve Nul Mot Reservoir Binh Dinh R 1,500 13°45'N.10059'E Smaller Reservoir F C M Survey to assess im- ___________________ _ _ _ _ _ _ _ _ _ _ _ _ ________ _____________________ _________ p orta n certa n c Ouy Nhon Lagoon Binh Dinh L 5,000 13052'N,109°15'E Brackish water tidal lagoon fish, F H B H Survey to assess ____________ ______ ______ ____________ bird __ _ _ _ __ _ _ _ protection needs Cu Mong Lagoon Phu Yen L 3,000 13°34'N,109015'E Brackish water fowl lagoon F 7 H Survey to assess _______ _ ________ _________ ________ _________ _________ _________________protection needs Xuan Del Lagoon Phiu Yen L 2,000 13035'N.109°15'E Saltwater lagoon H C M Assess importance or _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ prote ctio no n 0 Loan Lagoon Phu Yen L 1,500 13°17'N.109°17'E Small lagoon, migratino B H Survey to assess im- waterfowl pof tance Be River Estuary Phu Yen E 1,000 1305'N,100020'E Most important estuary on eas- H F P B M Establish small provin- ten seaboard cial reservoir Tay Son Phu Yen FL 80 1303'N.108041'E Oxbow lake with crocodile and Pr F C H Improve reserve waterfowl managment 8uon Me Thuot Dac Lac FL 100 12°40'N.108°01'E Small lake with crocodite and NR H E C M Make no hunting area waterfowl on small lake Ninh Hoe Ninh Thuan S 1,000 11 037'N.101 °02'E Salt pans + lagoon used by H C M Seasonal ban on hun- waders ____ting Leh Lake Dac Lac FL 500 12°25'N,108011'E Scenic lake with fish, birds and NR F A M Redesign Reserve to crocodiles South 1/3 of lake Nam KaC Dac Lac FL 1,000 12°20'N,107°58'E Lakes and swimps with F H A H Add these lakes to valuable fauna and flora _ save management unit ed M 04 °Q I.- t°o 1 Name Province Type Area (hal Location Special feettures Reserve Threat Blo Survey Recommandatlons Dan Kia Lake Lam Dong R 200 12000'N.108022'E Scenic lake in pine forest D C L Preserve as scenic area Don Duong Lake Lam Dong R 1,000 11 050'N,108°35'E Scenic lake In pine forest D C L Preserve as scenic area Cam Ranh Bay Khanh Hoa L 3,000 1 150'N,109010'E Extensive brackish H C H Make no hunting area on lagoon, waterlowl small lake Dam Ninh Bay Ninh Thuan L 2,000 11 °30'N.109002'E Small brackish lagoon, H C M Seasonal no hunting salt flats, waterfowl area on lagoon Cat Tian Dong Nai FS 2,500 11°30'N.107°20'E Fresh water swamps and NP H A M Routine monitoring takes, white wing duck and watertowl Dau Tieng Tay Ninh R 5,000 1 1°15'-11032'N, Large reservoir close to - HI F C H Survey to assess impor- Reservoir 1060 lO'E-106030'E Carnbodian wetland tance for waterfowl Bien Lac Swamp Binh Thuan FS 2,000 11 °10'N.107040'E Lake and seasonal NR C B B L Improve protection of ._____________________ swamp forest reserve Mu( Ne/Mul Gle Binh Thuan S 1,000 11 000N, 108 25'E Sandy shore linelwaders H D B M Seasonal no hunting _area Phan Thiet Binh Thuan Sa 11°OO'N.108025'E Sandy shiore linelwaders H C M Seasonal no hunting I I - -~~~~~~~~~~~~~~~~~~~~~~~~~~~~area Tri An Dong Nai R 10,000 11 i10'NN,1070 10'E Large reservoir, fish, P F B L Conlrol lishing levels some waterlowl _ Duymn Hal Ho Chi Minh M 2,000 10020'N,106°55'E Dong Nai Estuary and S C B H Create reserve on I mangroves seaward edge Tram Chim Dong Thap FS 300,000 10035'. 1 °OO'N. Peaty Swamp. flain of Pr D R A L Limit replantino. avoid 105020'-106°00'E Reeds, rare birds draining, ban hunting mnaintaint protection Mekong Estuary Ben Tre + Tra E 20,000 9°25'-10030'N, Nipa palm estuary water - H C B M Seasonal no hunting Vinh _ 106°25'-106030'E birds _ area U Minh Minh Hai PS 4,000 9015-N,104055'E Peaty swamp best Pr B A L Maintain fire protection malaleuca in Vietnam rigorously .0 _ rD1. mD ,,o t Naern Provcea Type Area Ihal : Location Specidl features Reserve Threat Bb Survey Reommendatlons Bird Sanctuary Minh Hai F 180 11 °5'-1 132'N. Waterfowl colony in NR D H B H Routine maintenance & 106tm 10'-106030'E Phoenix mangrove protection Ca Mau Minh Hai M 4,000 8035'N,104041'E Best Mangrove in Viet NR C A H Find new location for Nam representative reserve Con Dao Oa RiaNung AS 100 8°40'N.106038'E Sea bird breeding NP D B H Routine maintenance & Tau = I colonies protection Bio - Biodiversity rating Reserve: NP - National Park Threat: P = pollution or poisoning of fish Survey: H = high Type: FL = freshwater lake A - very imponant NA = Nature Reserve H - hunting M = medium FS = freshwater swamp B - important Prov Provincial Reserve R land reclaimation L = low R = reservoir C - minor value C a cutting M - mangroves D = disturbance of wildlife L - lagoon S - shrimp ponds Ro = rocky coast F - overfishing VL volcanic lake F overfishing ~~~~~~~~~~~~~~~Sa salt pans co Source: Biodiversity Action Plan, 1994. tD zD 0, 0 Wl r^ ° o1;¢ - 39 - Annex 1 Table 28 Page 39 of 48 GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN AT MARKET PRICES, 1989-1993 (Billions of Dong) Rev. 1989 1990 1991 1992 1993 (in 1989 Prices) Goods AgricultureandForesry 11471 11641 11894 12751 13235 Industry 5366 5499 6042 6925 7766 Construction 1077 1128 1186 1317 1558 Other Production 347 360 370 381 399 Scrvices Transport and Communications 709 743 792 842 897 Trade 3311 3485 3654 3877 4109 Finance, Inurance, and Banklng ) 368 448 496 578 State Sector ) 5855 2627 2841 3040 3322 Oher Services ) 3667 4059 4362 4871 Grou Domestic Product 28135 29529 31286 33991 36735 Growth Rate 8.0% 5.0% 6.0% 8.6% 8.1% (Billions of Current Dong) Goods Agriculturc and Forestry 11471 16589 30314 36468 39998 Industry 5366 9183 15193 23956 29371 Construction 1077 2534 3059 6179 9423 Other Production 347 385 744 1045 1476 Services Transport and Communications 709 1434 2860 4662 6036 Trade 3311 6149 9742 15281 17549 Finance, Insurance, and Banking ) .. 766 1108 1567 2318 State Sector ) 5855 4389 6807 9718 14402 Other Services ) .. 4732 6880 11659 15998 Gross Domesic Product 28133 45969 76707 110535 136571 63.4% 66.9% 44.1% 23.6% Note: In 1919, the Gearl Statisticsl Offie (GSO) instiuzsed the United Natio' System of National Accoutu (SNA). The SNA seies prewnted he amr baed On the most current officisl version. Since them cries cre new, they have been going thrugh scveal etimates and are still being revised and improved. This is the eries as of Msy 12, 1994 Source: OGaeral Statisical Office and Bnk Staff estimates. - 40 - Annex 1 Table 29 Page 40 of 48 POPULATION, 1975-93 Year Population Growth Rate ('000; mid-year) (°/O) 1975 48,030 2.57 1976 49,158 2.35 1977 50,295 2.31 1978 51,436 2.27 1979 52,574 2.21 1980 53,700 2.14 1981 54,722 1.90 1982 55,687 1.76 1983 56,655 1.74 1984 57,692 1.83 1985 58,868 2.04 1986 60,249 2.35 1987 61,750 2.49 1988 63,263 2.45 1989 64,774 2.39 1990 66,233 2.25 1991 67,774 2.33 1992 69,405 2.41 1993 70,918 2.18 Source: World Bank, Population and Health Dcpartment Revised based on the 1988/89 Ccnsus and most recent data General Statistical Office, Statistical Data of the Socialist Republic of Viet Nam, 1986-1991, Statistical Publishing House, 1992. General Statistical Office, Economy and Finance of Viet Nam, 1986-92, Statistical Publishing Housc, 1994. - 41 - Annex 1 Table 30 Page 41 of 48 TOTAL EMPLOYMNT BY SECTOR, 1986-92 (Thousands of Persons) Rev. 1986 1987 1988 1989 1990 1991 1992 Total Employed Labor Force 27,399 27,968 28,477 28,940 30,286 30,974 31,815 State Sector 4,028 4,091 4,052 3,801 3,419 3,144 2,975 Cooperatives 19,730 20,283 20,658 19,750 20,414 18,071 18,629 Private 3,641 3,594 3,768 5,389 6,453 9,759 10,211 State Sector Employment 4,028 4,091 4,052 3,801 3,419 3,144 2,975 (by unit) Govemment 1,369 1,383 1,359 1,455 1,341 1,296 1,242 Central 343 337 327 .. Local 1,026 1,046 1032 .. State Enterprises 2,659 2,708 2,693 2,346 2,078 1,848 1,733 Central 1,278 1,226 1236 Local 1,380 1,482 1457 Employment by Sector Productive Sector 25,553 26,054 26,497 27,061 28,320 28,972 29,780 Industry 2,918 3,047 3,150 3,241 3,392 3,394 3,450 Construction 883 825 856 795 818 820 826 Agriculture 19,798 20,246 20,446 20,698 21,683 22,276 22,998 Forestry 178 173 211 197 206 207 210 Transportation 450 429 443 455 476 480 484 Telecommunications 38 42 40 40 35 46 47 TradeandSupply 1,259 1,268 1,331 1,606 1,681 1,719 1,735 Olher 31 24 21 29 30 30 30 Non-Productive Sector 1,846 1,915 1,980 1,880 1,966 2,001 2,036 of which: Science 64 57 60 60 51 49 48 Education 706 750 830 768 803 804 825 Arts and Culture 38 46 45 43 45 46 46 Public Health 300 297 305 288 303 309 318 State Management 273 289 247 233 240 240 240 Note: Figures are rounded. Source: General Statistical Office. -42- Annex 1 Table 31 Page 42 of 48 Proposed modified land use criterion (Shanna 1990) Soil Slope Depth (Percent Land Use Class (cM) Degree) m IV v la lb IVa NVb 0-3.5 3.5-12 12-27 27-33 33-47 47-65 >65 0-2 2-7 7-15 15-18 18-25 25-35 >35 >90 Ag Agc Agbc Agic Agic or CF+P/C PF P or FT or CC/IP 35-90 Ag Agc Agbc Agic Agic or P CF+P/C PF or FT or CC/IP 20-35 P,PT CF+P CF+P/C CF+P/C CF+PIC CF+P/C PF +IP <20 PF PF PF PF PF PF PF Legend: Ag Agriculture with life fence or boundary plantation Agc Agriculture on irrigated basin paddy terraces or rainfed agriculture with minor conservation works like graded channel terraces or grass strips interspaced at 0.75-1 m vertical interval (approx) Agbc Agriculture with basin terraces or alley cropping or bench terraces Agic Agriculture with intensive conservation measures like reverse sloping bench terraces with grassed raisers and trees on raisers, or alley cropping with nitrogen fixing trees but knitted on base by branches for soil conservation or hedge row cropping with base knitted by branches of nitrogen fixing trees for soil conservation P Pasture mixed with leguminous shrubs and nitrogen fixing bushes FT Fruit trees with appropriate soil conservation methods CC Cash crops with nitrogen fixing trees, grsses IP Multi-storied mixed industrial plantation and grasses on the base for soil conservation CF Conmmunity forestry for local needs (fast growing nitrogen fixing trees preferred with mixed broad leaf multi-storied trees) PIC Pasture mixed with leguminous cover crops PP Completely protected forest with natural regeneration of all flora 4 3 Annex 1 Figure 2 Figure 3.: Major Fishing Grounds Page 43 of 48 Haiphoni I \~VS N 1 i Bach vi Vn fCe| | I Central Haman 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 MBinh JI FPhu -Phu Quy Quoc - CLU ~~~~~~~~~Islc~ands Chuoi P(1 _ ~~~Con Son 1.I S&eOVIR: Phom nThatC (1.985; - 44& - Annex 1 Table 32 Page 44 of 48 FDED INVESMENT. 1986-92 19S6 19t7 1933 1939 1990 1991 1992 (Billions of Dong) Grour Fixed Ivastmnent 20.56 16.02 16.30 17.53 19.60 21.76 30.46 (Pecent of NationI Income) 12.1 9.2 9.1 9.0 9.9 By Typc of Mangement A. Central 12.10 9.40 10.30 12.31 11.60 13.07 19.96 B. Local 3.46 6.62 6.00 5.22 6.50 8.69 10.50 By Type of Outlay A. Contruction Assmbly Works 14.98 11.97 12.59 12.19 14.32 14.53 21.69 B. Machinery & Equipenent 2.96 2.43 2.60 3.04 2.3S 5.51 5.76 C. Other 2.62 1.62 1.60 2.31 1.90 1.72 3.01 By Sector A. Productive Sector 16.70 12.79 14.33 14.32 15.36 13.06 25.73 a. ndwustry 7.34 6.93 7.77 1.30 7.53 9.57 14.67 - Heavy Industry 5.47 5.25 .. .. -Light Industry 1.86 1.72 .. .. b. Agriculture & Forestry 5.03 3.21 3.32 2.73 3.35 3.41 3.36 c. Transprttion & Commeunicat 3.32 1.35 2.27 2.30 3.92 4.47 6.77 d. Other 1.01 0.75 0.52 0.49 0.57 0.61 0.43 B. Non-Productive Sector 3.36 3.23 2.41 2.71 5.63 3.71 4.73 a. Housing nd Community Servi 1.76 1.32 0.95 1.10 1.68 1.03 1.33 b. Science, Education, Public Health and Social Welfare 1.32 1.29 1.24 1.32 Z12 2.04 0.96 c. Other 0.79 0.62 0.22 0.28 0.44 0.59 2.44 (Percentage) Grou Fixed Investment 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By Type of Management: A. Central 53.9 53.7 64.3 70.2 59.2 60.1 65.5 B. Local 41.1 41.3 35.7 29.3 33.2 39.9 34.5 By Type of Outlay: A. Construction Assembly Works 72.9 74.7 75.0 69.5 75.6 66.3 71.2 B.MachineryAEquipment 14.4 15.1 15.5 17.3 14.7 25.3 1I.9 C. Other 12.8 10.1 9.5 13.2 9.7 7.9 9.9 By Sector: A. Productive Sector. a. Industry: 35.7 43.5 46.3 50.2 33.4 44.0 43.2 - Hcavy Industry 26.6 32.3 .. .. - Light Indutry 9.1 10.3 .. .. b. Agriculture & Forestry 24.5 20.1 2238 15.6 17.1 15.6 12.7 c. Transportation & Communiect 16.2 11.6 13.5 16.0 20.0 20.5 22.2 d. Other 4.9 4.7 3.1 2.3 2.9 2.8 1.4 B. Non-Productive Sector: a. Housing and Conmunity Sevi 3.5 8.2 5.7 6.3 3.6 5.0 4.4 b. Scienee, Education, Public Health and Social Welfare 6.4 3.1 7.4 7.5 10.3 9.4 3.2 c. Other 3.3 3.9 1.3 1.6 2.2 2.7 3.0 Note: a/ Offieial prices at which investment expceditures are calculated. Thesc arc somewhat higher than the 1932 fixed priesr. but do not fully reflect price developments in the economy. Figures re rounded. Source: General Statistical Office and GSO, Statitical Data of the Socialist Rqcpblic of Victnam, 1976-1990, 1991, 1992. STATE INVESTMENT OUTLAYS IN AGRICULTURE, 1976-91 - 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 (Billions of Dong 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 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 Irrigation 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 .. .. Forestry 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 1982 prices, so shares from current price data are used. Sourcc: Gcncral Statistical Office and Statistical Data of thc Socialist Republic of Victnam, 1976-1990, 1991, and 1992. .~~~~~~~~~~~~~~~ 0 m oo 0 & CO I- - 46 - Annex 1 Table 34 Page 46 of 48 AGRICULTURAL PRODUCTION, 1986-93. Prel. 1986 1987 1988 1989 1990 1991 1992 1993 < - (Millions of Dong at 1982 prices) <-(1989 Million Dong) -> Gross Output 96,044 96,383 96,383 96,383 96,383 15,358,792 1,560,475 17,059,197 CropCultivation 72,342 70,628 70,628 70,628 70,628 11,511,701 12,331,464 12,597,516 Food Crops 49,702 47,701 50,890 52,047 .. 7,541,957 8,280,914 Industrial Crops 22,640 22,927 19,738 18,581 .. 1,913,293 1,903,383 Animal Husbandry 23,702 25,755 25,755 25,755 25,755 3,847,091 4,276,311 4,461,681 of which: Livestock a/ 14,067 15,420 13,879 13,976 - 2,000,186 2,261,195 (Thousands of metric tons) Foodgrains b/ 18,379 17,529 19,583 21,516 21,488 21,989 24,214 25,000 Paddy 16,003 15,103 17,000 18,996 19,225 * 19,622 212,590 22,300 Other 2,376 2,426 2,583 2,519 2,263 2,367 2,624 2,700 Mcmorandum Itcms: Arca Cultivatcd (000 ha) c/ 6,812 6,710 6,968 7,090 7,111 7,448 7,707 7,692 Fcrtilizcr Availability (000 tons) 1,631 1,542 1,833 1,985 .. Foodgrain Output per Capita (kg 301 281 307 332 323 323 346 357 Notc: a/ Excluding poultry. b/ Paddy equivalcnt. c/ Foodgrains. Source: General Statistical Office. - 47 - Annex 1 Table 35 Page 47 of 48 INDUSTRiML CROP PRODUCTION AND YIELDS, 1986-93 Prel. 1986 1987 1988 1989 1990 1991 1992 1993 Production (000 metic tons) lute 54.5 57.5 36.8 34.3 29.0 25.2 25.6 28.0 Rush 97.5 104.2 83.7 81.2 78.0 54.0 77.0 75.0 Mulberry 56.9 53.9 45.7 56.9 99.0 103.0 143.0 160.0 Sugarcane 4964.6 5470.3 5700.4 5344.6 5400.0 6130.9 6437.0 6656.0 Peanuts 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 30.1 29.0 29.7 30.2 30.9 33.1 36.2 39.0 Coffee 18.8 20.5 31.3 40.8 45.2 67.0 71.8 73.5 Rubber 50.1 51.7 49.7 50.6 52.0 64.6 67.0 70.0 Coconut 711.4 790.9 856.5 922.1 894.4 1052.5 1139.8 1207.0 Area Cultivated (000 ha) Jute 26.1 32.0 17.1 15.7 13.0 10.4 11.6 12.0 Rush 16.9 17.0 17.5 14.4 11.4 9.4 11.0 10.4 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 65.6 92.3 111.9 123.1 119.3 115.0 103.7 Rubber 202.0 203.7 210.5 215.6 221.7 220.6 212.4 Coconut 157.7 199.3 210.6 206.3 212.3 214.2 204.1 Averaie Yield (Metric ton/Ha) Jute 2.1 1.8 2.2 2.2 2.2 2.4 2.2 2.3 Rush 5.8 6.1 4.8 5.6 .. 5.7 7.0 7.2 Mulberry 8.5 8.0 8.0 8.8 9.0 7.4 7.0 7.3 Sugarcane 39.7 40.0 40.1 40.7 40.0 43.5 43.9 44.7 Peanuts 0.9 1.0 1.0 1.0 1.0 1.2 1.0 1.1 Soybeans 0.8 0.8 0.8 0.8 0.8 0.7 0.8 0.8 Tobacco 0.9 0.9 0.9 0.9 0.8 1.3 0.9 0.9 Tea 0.5 0.5 0.5 0.5 .. 0.6 0.6 Coffee 0.3 0.2 0.3 0.3 .. 0.6 0.7 Rubber 0.2 0.3 0.2 0.2 .. 0.3 0.3 Coconut 4.5 4.0 4.1 4.5 .. 4.9 5.6 Source; General Statistical Office, Statistical Data of the Socialist Republic of Vietnam, 1991. -48- Annex 1 Tabl e 36 FOODGRAIN PRODUCTION AND YIELDS, 1986-93 Page 48 of 48 Est. 1986 1987 1988 1989 1990 1991 1992 1993 Production (000 metic tons) 18,379 17,529 19,583 21,516 21,488 21,989 24,214 25,000 By Product Paddy 16,003 15,103 17,000 18,996 19,225 19,622 21,590 22,300 Spring and Summer Crop 9,127 8,029 10,353 11,603 11,956 11,506 14,063 14,272 Winter Crop 6,876 7,074 6,647 7,394 7,269 8,116 7,527 8,028 Subsidiary Crops al 2,376 2,426 2,583 2,519 2,263 2,367 2,624 2,700 By Region North b/ 7,688 7,620 8,369 8,955 8,448 7,835 9,701 10,640 South 10,691 9,909 11,214 12,561 13,040 14,154 14,513 14,360 Mekong Delta 8,203 6,576 7,743 9,024 9,608 10,464 11,067 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/ 5,689 5,588 5,726 5,896 6,028 6,303 6,475 6,466 Spring and Summer Crop 2,743 2,732 2,876 3,133 3,290 3,543 3,727 3,896 Winter Crop 2,946 2,856 2,850 2,763 2,738 - 2,760 2,748 2,660 Subsidiary Crops a/ 1,123 1,121 1,241 1,194 1,083 1,145 1,232 1,226 By Region North b/ 2,442 3,170 2,465 2,481 3,224 3,301 3,398 3,390 South 3,247 3,540 3,262 3,415 3,887 4,147 4,309 4,302 Mekong Delta 2,291 2,254 2,314 2,445 2,625 2,846 2,966 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 2.81 2.70 2.97 3.22 3.19 3.11 3.33 3.45 Spring and Summer Crop 3.33 2.94 3.60 3.70 3.63 3.25 3.77 3.66 Winter Crop 2.33 2.48 2.33 2.68 2.65 2.94 2.74 3.02 Subsidiary Crops a/ 2.12 2.16 2.08 2.11 2.09 2.07 2.13 2.20 By Region North b/ 3.15 2.40 3.40 3.61 2.62 2.37 2.85 3.14 South 3.29 2.80 3.44 3.68 3.35 3.41 3.37 3.34 Mekong Delta 3.58 2.92 3.35 3.69 3.66 3.68 3.73 3.66 Fcrtilizer Availability d/ Quantity (000 metric tons) 1631 1542 1833 1985 2511 3026 3089 3100 Average per Ha (Kg/Ha) 239 230 263 280 .. Note: a/ In paddy equivalent. b/ The North is defined as comprising the 17 provinces north of Da-Nang. c/ Pertaining to "sown' area, taking into account multiple cropping. d/ 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 ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION Index of Susceptibility to Deterioration Introduction 1. To increase the understanding of the process of land degradation and facilitate development planning, it is helpful to identify areas potentially susceptible to degradation. For this purpose a "proneness to erosion" index for land in Viet Nam was developed. Ideally, a GIS approach would be used in the compilation of this index. This would allow periodic updating of the result as new information becomes available. However, much of the required input data (especially the 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 whatever information was available by manual means. 2. The susceptibility map was prepared as an overlay to allow comparisons and conclusions on a per-province basis. Thus the "basemap" was a transparency showing only the coastline of Viet Nam; all other input data were superimposed manually upon this and the resultant boundaries were rationalized as necessary afterwards. Indicators of Instability 3. The inherent stability of an area is best measured by its susceptibility to deterioration if disturbed. Highly susceptible areas will show evidence of deterioration following relatively minor impacts, but less susceptible ones will not. 4. No direct measurement of an area's susceptibility to deterioration is available and evidence must be sought from a range of indicators. These include climatic and seismic factors, slope, and the intrinsic susceptibility of the soil and geological materials to erosion or structural failure. 5. In the first stage of this classification the land is divided into two categories: (a) areas that are inherently stable, and (b) areas that have a relatively high rate of natural baseline erosion. Slope, soil and geological categories 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 obtained from the Hydrometeorological Service of Viet Nam was used. Based upon geomorphological and climatic data plus information provided by FIPI, NIAPP, the Geological Survey of Viet Nam, and personal observations it was concluded that most land above 500m elevation would be sloping, much of it relatively steeply sloping. The steeper slopes would occur in the mountains, but even at 500m many areas were finely dissected with steep (but shorter) slopes. 7. Thus two categories of slope (relatively steep and relatively gentle) were derived from the -50 - Annex 2 Page 2 of 8 topographic map, and transferred photographically to the basemap. The resultant categories accorded well with those presented in an "Ecological And Topographic Zoning Map Of Viet Nam" obtained from NIAPP, except for an area between 12.5 and 14 degrees north which comprises the catchments of the Da Rang River (which flows east) and two tributaries of the Mekong; the Xre Poc and Tong Le Cong Rivers. They also align with Sharma's (1990) estimate that about 70% of the country is steeply sloping. 8. Geoloay. Geological maps at 1:1,000,000 scale (Geological Survey Of Viet Nam, 1991), and at 1:1,500,000 scale (United Nations, 1990) plus their respective explanatory notes, 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 following structures were classified as being within these categories: * Upper Neorne.Quasenry b4lt. pwvd. day; * Mildle Trianic manme, skaleiem; * Carbnifraus.-Prin sluek-cosl, I m_; * Caeoc Gsbbro.nrte, pbbro.olerie 9. Soils. The interim soils map provided by NIAPP was a 1:3,000,000 scale photocopy of a reduced version of the 1: 1,000,000 scale soils map of Viet Nam. Thi; map was initially compiled in two parts: one for Northern Viet Nam at 1:500,000 scale by the Russian Dr. Friedland, and one for Southern Viet Nam at the same scale by the Dutchman Dr. Mockman. Different approaches and methods were used. After 1975 NIAPP recompiled and combined these maps, but the result is acknowledged by NIAPP as not entirely satisfactory. 10. Using information provided by NIAPP the following soils were identified as relatively susceptible to erosion: Grey Degraded Soils: * Grey deraded soib * Grey ndeed sail an ad atkivm * Gtey degraded sibs an _smam rachs Red And Yellow Soils: * Brwn or prpc soil an nmeunl mWng * Brown-red sois an noAril nugs * Bmwnyellow Sl aS neMAl aga * Riddsh soils on hinesre * Red ad yellow sags an tlmepllthic * Ydkwuh red soils on cWi magm * Ug& yelow sis an mAtAa * Ydlow4rown oils an old alkuviwn Humus Red And Yellow Soils On Mountains 11. As a second step in deriving the susceptibility index, seismic and climatic factors 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-precipitating agents rather than aspects of inherent susceptibility. Where seismic and/or climatic impacts are relatively strong, the inherent susceptibilities of the land are more likely to be enabled. 12. Seismicity. Most of Viet Nam is formed on the Indo-China crustal 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-Thai crustal plate (United Nations, 1990). The Geological Survey 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 13. Published information is in the explanatory brochures for the Atlas Of Mineral Resources 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 Environmental Geology (Geological Association Of Viet Nam, 1992). In the latter of these, Nguyen Dinh Uy and Dam Ngoc, both of the Geological Survey Of Viet Nam, present a map showing earthquake zonation for the north-west of Northern Viet Nam. 14. A map showing areas of relatively high and relatively low seismic activity has been prepared from these data taking into account the dip of the active zone (which determines which side of it will have the most severe earth tremors), and the depth at which most activity takes place (deeper activity such as under the Red River Delta has less effect at the surface). 15. Climate. A total of 121 rain-gauge stations have been placed across Viet Nam, 93 or 77% of them north of the 17th parallel. Only seven occur in the upland areas in Southern Viet Nam. A map of these and average monthly and annual rainfall figures for 119 of them over varying recording periods up to 1984 were obtained from the Hydrometeorology Service for Viet Nam. Many stations have 30 or 40 years of records, but some have only about 10. The rainfall records have not been translated into isohyets by the Hydrometeorological Service and a map of average annual rainfall is not yet available from Hanoi. 16. Sargent (1991) has included an annual rainfall map in her review. Her map shows annual rainfalls in excess of 3000mm in the Central Highlands and around Lam Dong province. This appears plausible because in highland areas near a coast with a landward wet season, winds are likely to receive orographic rainfall. Sargent's map was not sourced and its accuracy cannot be ascertained. 17. However, for the purposes of land susceptibility assessment, especially with respect to soil 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 intensities of 200 - 400mm per hour are common in some areas, which are very high figures. 18. In this assessment, a 20% probability daily rainfall intensity of 150mmn has been used as a threshold in identifying stations with rainfall intensities likely to be significantly erosive. 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 intensity rains. Relative Susceptibility To Deterioration 19. In this section the evidence from all indicators of the susceptibility of the land to deterioration is drawn together, and the mapping units are classified as having either a relatively high or a relatively low degree of susceptibility. 20. Initially, the inherent susceptibility factor (derived from assessments of slope, geology and soils) was weighted as doubly important. Next, rainfall intensity and seismic activity were considered. Three susceptibility zones were then generated: one with a relatively erosive climate or a relatively high seismic activity (considered to be roughly equal in terms of their contribution to susceptibility), one with both factors present together, and one with neither factor. These factors are recorded in Table 1. -52 - Annex 2 Page 4 of 8 21. Of the three factors included in Table 1, the inherent susceptibility one represents a predisposing condition, residual in the nature of the land. The other two (seismicity and rainfall intensity) are the executing agents of erosion, and could be regarded as an index of the likelihood that degradation of the land will occur, or as a "probability" factor. 22. Thus five classes of susceptibility to deterioration were derived, and these are shown in Table 2 and the accompanying susceptibility map. Table 1: Deriasi of acdbiy y Map IbIl (eubility Inhm snceptbility of lad systenm w Dqreeci of amnic atvity (h-, Erosivity of dinme (Io-. deweroratimn (hiSh-jlow-) low-) low-) 2 2 3 3 4 S. * 4 S 5 M: I -km t cibl (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 considered to be highly susceptible to deterioration. Other regions predominantly rating three were likely to be in a degraded condition and considered if medium susceptibility. These are shown in Table 2 Table 2: Percena of lan uuAepAdbiiy by clas Region Css I Cba 2 Clm 3 clan 4 Cis 5 Toml 291 14% 371 15% 2% Nard,e Mountain 2% 10% 41% 44% 3% Nrdiem Midlimds IS 26S 55S IIS iS Red River Dela 0 75S 201 0 5% NanhCm uzuCeaza 4% 25% 39S 29% 4% Smdt Cetral Coasu 29% 21 27S 23% 0% S9admn H _baad 33S 0S 66S 0% 0% Nah Emu Mebang 98% 0 2S 0% 0% Meklg Deks I00% 01 0S 0 0 NOa: I - eambl (nmt Yabk) a 5-mast .sweuIbc. 24. A list of the most important provinces for watershed protection was provided by FIPI. Most of these were also selected by the susceptibility mapping and these ones are identified in Table 3 by underlining. Provinces identified by Mr. Phuong that were not selected by the susceptibility mapping include Lang Son (because of low overall topography and low rainfall intensity) and Dong Nai (because of low topography, rainfall intensity and seismic activity). - 53 - Annex 2 Page 5 of 8 Map Land Susceptibility Classes X C>'SS (LEAST) *Cn X '- Cl~~~~~~ -mE' P jfj . 0 20Km 0 10 oo 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 suspended sediment yield which also supports the susceptibility mapping. A 'forest types' map of Viet Nam produced by FIPI at 1: 1,000,000 scale also supports the mapping. Tablc 3: Provinces minst sueptible to deterioraiion Highly msuceptible provirces Medium aipt use provkbe Nhe , Yen Bai. Cao Bmg. HacD Binh.Lai Chau. Son La. Ha Gims,, Thril Q Nirh Vin Ph. ujte Quaq TriLBidh Dind. Kanh Hoa.Koa Tum, ioa, Ninh Binh, Lao Cai &m Dea.1 ThiesaHue. Dac Lac,Qw4 Nam-Da Nai Notes: wuderlind provnces also xdelired by [RIl 26. Sharma (1990) identified six priority watersheds for urgent action due to their "immediate effect on national well being". These six were chosen because they all had large dams or large dams were planned for them, and because the dam catchments were in a degraded condition and siltation of the dams was likely to be serious. Sharma acknowledges that "there are many other watersheds in the country which are also in similar conditions as far as their status in upland conservation is concerned". 27. Of Sharma's six catchments, the Da, Chay, and Chu River catchments lie within areas 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 susceptibility categories one and two, and hence was not selected as being (overall) susceptible. However, the outer parts of the province have susceptibility ratings three and four which agrees with Sharna's assessment. 28. The Saigon River watershed (Tay Ninh and Song Be provinces) has been mapped as category one, because of low relief, low seismic activity, and low rainfall intensity. Sharma verifies the relief category (he cites maximum slopes 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 destroyed by "uncontrolled agricultural expansion". 29. Other areas close to major towns and cities may also be in a badly degraded condition due to population pressure, which has not been included as a factor in the susceptibility mapping. 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 susceptibility map accompanying this report is a first approximation only, based on whatever infornation was available at the time. A revised map needs to be produced in 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 scale that 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 definition of seismically active areas, geological formations susceptible to failure, climatic factors, and soils that are erodible. In the case of climate, rainfall amount and seasonality need to be incorporated with the intensity data to produce an overall index of erosivity of climate. In the longer term, these data could be updated if more climate recording stations were placed in the upland areas, especially in Southern Viet Nam. - 5 Annex 2 Page 7 of 8 Proximity to large centers of population could also be included as a factor threatening the stability of land. 32. Another issue is forms of land degradation other than soil erosion. Nutrient depletion, soil structure decline and other impacts result from repeated cycles of shifting cultivation, but also from continued use of good quality agricultural land. In recent years with increased population pressure these soils are being used more and more intensively. It is very important that the productivity of these better soils be at least maintained so that the nation as a whole maintains food security. The same could be said for the nation's water resources and reserves of biodiversity. 33. Other important issues include the need to re-assess land suitability for 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 implement the research needs described by Sargent (in IIED, 1991). - 56 -Aex 2 Page 8 of 8 Land Susceptibility Classes, By Provinces (in ha) Province Name Total Area Class I Class 2 Class 3 Class 4 Class 5 (least) (most) Ha Glang 7385 267 6961 1157 Tuyen Quang 6430 241 1628 3737 496 128 Cao Bang 8S04 693 958 4617 2336 Lang Son 7905 603 3070 1592 2388 352 Sac Thai 6604 2661 3318 512 113 Lal Chau 17334 4225 11316 1793 Son La 14398 4971 9427 Yen Sal 7704 S9 3953 2778 374 Lao Cal 6894 799 2685 3410 Guang Nlnh 5167 23 4709 425 Vlnh Phu 4514 1593 2691 230 Ha Bac 4917 1169 3628 130 Ha Nol 990 817 173 Hal Phong 1233 1047 196 Ha Tay 2524 1268 1146 110 Hoa Blnh 4282 733 2022 194 1333 Hal Hung 2669 2452 217 Thai Blnh 1507 1607 Nam Ha 1859 1540 192 127 Nlnh Blnh 1674 72 1448 164 Thanh Hoa 11453 348 2728 4141 3436 800 Nghe An 16837 1015 2960 6372 6393 1027 Ha Tnh 6071 1973 360 438 Guang Blnh 8469 3240 6042 187 Quang Trl 49SS 1318 1710 1927 Thua Thlen-Hue 4661 383 596 324 33S8 Qang Nam Da-Na 12003 40 1446 7967 2560 Quang Ngal 6198 736 2303 387 1172 Binh Dlnh 6342 249 2671 1187 2035 Phu Yen 6210 688 1628 620 2374 Khan Hoa 4843 1084 768 814 2180 Nlnh Thuan 3564 2721 843 Binh Thusn , 8148 7528 620 Gla Lal 14891 8093 6798 Kon Tum 10855 944 9911 D.c Lac 179 6723 1189 167 Lam Dong 10235 2483 7762 Dong nal 5935 8935 Son Be 9363 8828 635 Tay Nlnh 4004 4004 Ho Chi Minh 1897 1897 Vung Tau- Ba RI 1901 1901 Long An 4456 4455 Tien Glang 2274 2274 Ben Tre 2119 2119 Dong Thap 3168 31S8 Vlnh Long 1643 1643 Tra Vinh 2017 2017 Can Tho 3016 3016 Soc Trang 3271 3271 An Glang 3306 3306 Kien Glang 5824 5824 Mlnh hal 7919 7919 Totalsil 329009 95918 44711 120867 59933 7590 Notes: 11 Area totals not equal to those of the General Department of Land Management Source: Aldrick 1993 57 Annex 3 Page 1 of 13 VIET NAM ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION Forest Degradation and the Evolution of Barren Lands 1. This annex analyzes the changes in forest land use in Viet Nam, reconciling often conflicting land use and forestry statistics. It then analyzes the sources of deforestation and their relative contribution to land degradation, and concludes with the resulting physical impact of upland forest areas degradation. A. Deforestation Trends 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 includes the loss of at least 12.6 million ha of forest, of which 8.0 million ha were in Northem Viet Nam and 4.6 million ha were in Southern Viet Nain. The Northern Mountains experienced the greatest decline, with forest cover dropping from 95 percent to 17 percent in 48 years. The decrease in this region was caused by the rapidly growing population's demand for forest products and agricultural land. The result was the formation of large areas of unproductive barren land. The remaining forests in the Northern Mountains are degraded, poorly stocked, and scattered in small non-contiguous plots. Table 1: Forest Cover, Deforestation, and Unused Land Region Land Area Forest cover Annual Rate of deforestation Barren land (1000 ha) (% of land area) (% of total forest cover per year) (% of area) 1991 1943 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/ Forest cover includes both natural and planted forest. - 58 - Annex 3 Page 2 of 13 3. Fuelwoods presently constitute over a third of all traded energy, two-thirds of household cooking energy use (including straw, and are estimated to account for 87 percent of all wood demand (which includes non-energy use). 4. The overall rate of net deforestation (deforestation less afforestation) in Viet Nam 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 contributors to forest loss. The annual rate of deforestation increased by a third from 1973 to 1985, with the highest rates of loss occurring in the Red River Delta, Northern Midlands, Northern Mountains, and North East of Mekong. Increased deforestation was driven by the high demand for timber necessary for the post-war reconstruction of the country, and an export- driven expansion in logging to raise foreign exchange. 5. During the six years from 1985 to 1991, deforestation persisted in the North East of Mekong and Central Highlands regions as GOV continued logging and encouraged settlement. In five other regions, official statistics indicate that the 42 year deforestation trend has been reversed. This reversal may, however, be regarded with skepticism for two reasons: (a) the forest cover figures mask the replacement of 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. Disaggregating forest cover into natural and planted forest indicates that, while natural forest area decreased by 0.1 million ha between 1985 and 1991, planted forest increased by about 80 thousand ha (Table 2). The redefinition, which is particularly relevant for the Northern Mountains and 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 Change in Change in Change in Change in Natural Planted Barren Annual Perennial Forest Forest Lands Agriculture Agriculture 1985-1991 1985-1991 1985-1991 1985-1991 1985-1991 2) Northem Midlands 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 8) Mekong Delta (3) 5 (116) (164) 75 Totals (108) 83 (204) (248) 253 Notes: Numbers in parenthesis indicate a decrease. Source: Annex 1. 59 - Annex 3 Page 3 of 13 6. Despite the above data bias, an analysis of 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 expense of annual crop expansion. Another effect of the redefinition was to understate the true rate of deforestation in the Central Highlands and North East of Mekong regions between 1985 and 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 questionable to what degree the barren lands will be able to recover their natural form or become productive without the support of protection and replenishment programs. 7. Barren land, also referred to as the 'bare hills' or 'unused land' in . , , ,.niui " various statistical sources, is characterized as 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 *&1 . *.~ pgj hz'other' land in Viet Nam. In 1993, GOV classified between 35 percent and 42 percent of the country, approximately 12 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 Figure 1: Change in land cover from 1985 to 1990 (units in 1,000 ha). 1 t ines relatisheteen significant inverse relationship between barren land and natural forest (Figure 1). In this relationship most of the observations are clustered about the origin, suggesting that 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 responsible for depletion of soil nutrients, decline in soil organic matter and structure, soil erosion, weed invasion, and hydrological changes that result in serious off-site impacts. 8. The physical process of degradation starts with clear-cut logging. The cleared land, made accessible to farmers as a result of logging, is cultivated until soil fertility is exhausted. The exhausted land is then abandoned to extended periods of fallow, interrupted by occasional cropping, grazing, and fuelwood collection. These extensive activities, combined with a fire prone regime, prevent forest regeneration. Soil erosion and weed invasion are part of the process of land degradation. Most of the logging and subsequent agricultural production, especially in recent years, is on steep slopes which are highly susceptible to erosion once the protective vegetative cover has been removed. In terms of weed invasion, up to 200 species of weeds can be found on barren land, especially Echinonchloa and Imperata, which compete directly with crops for soil nutrients. In this way barren land is created. The extent of barren land in the upland areas is also related to the practice of shifting cultivation. Thus a substantial 2/ This estimate of barren land includes only the areas that can be developed for agriculture or forestry. Other estimates of barren land are larger (13-14 million ha) because they include rocky mountains, riverbanks, waterways, and marshes. -60- Annex 3 Page 4 of 13 portion of barren or idle land may be considered to 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 (40-44 percent), and the South Central Coast (42-49 percent). The critical dynamics of barren land evolution involve human pressure on land that is inherently susceptible to deterioration. In areas of high population density, there is relatively less barren land, reflecting the presence of property rights and active competition for available resources. In areas of low population density there is usually plenty of barren land, revealing the open access nature of the resource. The northern half of the country, specifically the Northern Midlands, contains the highest proportion of highly susceptible land. By comparison the Southern part of the country, excluding the Central Highlands, is relatively stable in terms of erosion prone characteristics. Regions with large areas of degraded barren land are the Northern Mountain and Northem Midlands. (See Annex 2 for an analysis of the factors contributing to erosion proneness by regions and for the construction of a land susceptibility index.) 10. A closer look at the regional differences in the factors accounting for changes in barren land areas reveals a number of noteworthy implications. From 1985 to 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 provinces there was a decrease in natural forest and an increase in annual crops. This is explained by a large population trying to subsist on severely degraded land. Thus, without other sources of income improvement, the people are being forced into the remaining forest to produce food crops 3/. 11. In the South Central Coast and the Central highlands, barren land increased where perennial crops increased. The GOV resettlement programn has 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 provinces of 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 unproductive and were abandoned. B. Sources of Forest Loss 13. There are many causes of deforestation in Viet Nam, the most imnportant of which include arable land expansion, fuelwood consumption, logging, shifting cultivation, 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-reported total loss of 184 million ha over six years. This difference is explained by: (a) overlap and double-counting in attributing the causes of forest loss, and (b) the previously mentioned redefinition of natural forests. Despite these shortcomings the information is useful in illustrating the relative importance of the different sources of degradation. 31 On a regional level this trend is masked by the large increase in natural forest in Son La and Lai Chau provinces. This increase is due to a GOV redefinition of what constitutes natural forest. - 61 - Annex 3 Page 5 of 13 14. Sources of forest degradation are discussed below under the following sub-headings: (a) Arable Land Expansion (b) Fuelwood Consumption (c) Logging (d) Fire Damage (e) Shifting Agriculture (f) Other Causes Table 3: Imputed Annual Deforestation (in 1,000 ha) Region Name Fire Itinerant Fuelwood Logging Total w/o Damage Shifting fuelwood CultivationfV 1990-' 1991,' 1992-' 1991k- 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 Note: a/ Data on sedentary shifting cultivation (estimated at up to one million ha) is not available by region. b/ Year of estirmate. Sources: FIPI 1990, 1991. TFAP 1991..World Bank estimates 1992. Arable Land Expansion 15. Expansion of agriculture into forest areas has both direct and indirect environmental impacts. Direct environmental impacts include erosion, loss of topsoil, watershed degradation, and changes in the distribution of both plant and animal species. The indirect environmental effects include the sedimentation of rivers, lakes, dams and harbors as well as the loss of the carbon sequestration functions of the forest. In Viet Nam there was less than a one percent increase in agricultural land 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 expansion of perennials was largely at the expense of annuals (especially maize) in the central coastal regions, but at the expense of 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 expansion has directly reduced forest areas or reduced the extent of barren lands countrywide. The poorest (food deficit) provinces in the Northem Mountains and Northem Midlands saw an attempted expansion of annual cropping even at the expense of perennial crops. The areas suffering the most chronic malnutrition (Northem Midlands and Mountains) are also the poorest in the country, and in these areas the expansion of 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). - 62 - Annex 3 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, without a comparable drop in rice production, signals an increase in productivity. The increase in productivity may 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 liberalization in 1989. The expansion of annual crops (primarily at the expense of barren land) in the Northern Mountains has largely been driven by the allocation of land rights to the barren lands. Table 4: 1992 Percentage Share of Primary Cooking Fuel Primary - North" Red River Hanoi' Central" Mekong Ho Chi Cooking Fuel Delta Delta Minh City Rural: Leaves, 49.1 98.5 70.0 60.2 7.8 Straw, etc. Wood 49.7 1.0 8.7 39.8 90.7 Charcoal 1.0 Coal (3) 1.2 0.5 20.7 Kerosene 0.5 Electricity 0.7 Urban: Leaves, 17.7 3.3 17.7 Straw, etc. Wood 51.0 38.3 12.5 51.0 98.4 30.2 Charcoal 3.1 13.5 40.6 Coal (3) 25.0 55.0 53.1 13.6 Kerosene 4.2 3.3 15.6 4.2 28.1 Electricity 18.8 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 contiguous old 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, particularly the Central Highlands. This is the only region with a plentiful supply of unclaimed, relatively stable productive land. The availability of this resource has encouraged high rates of GOV-sponsored (and in recent years, spontaneous) immigration from the Red River Delta and the North Central coast 4/. Immigration will 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 Fuelwood Consumption 18. Fuelwood demand represents an important burden on Viet Nam's remaining forest resources. If converted to area equivalents, the demand for fuelwood would have accounted for 6 times as much forest destruction as commercial logging (Table 3). However, this does not mean that the degradation effects are equivalent since a significant portion of fuelwood needs are derived from scattered trees (estimates range 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 household use. Wood also provides heat for formal and infomial rural industries. However, in rural areas of high population density and where wood is relatively scarce, such as the Red River Delta and the coastal central regions, rice straw and other crop residues are critical substitutes. Recent analysis,5/ based on the 1992 situation abstracted from the living standards measurement study (LSMS), are summarized below for sources of cooking fuel by regions. 19. Locally collected biomass 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 Midlands and Mountain areas). In urban areas, wood is important for the Mekong Delta (especially Northeast Mekong Delta subregion), Northem Uplands, and the Central region (including the Central Highland). 20. An examination of the supply/demand balance prepared by the 1993 UNDP/ESMAP study (see Table 5 below) gives a picture of fuelwood supply shortages by regions and an indication of the pressure on existing forest resources. The estimate for wood-related biomass excludes those for straw, leaves, and grass which are highly localized and effectively untransportable and thus unmarketable. The national consumption estimate of about 28 million tons closely matches equivalent estimates of about 31 million tons of the Tropical Forestry Action Plan (TFAP). The study shows that present supply of wood biomass for fuel (about 38 million tons) gives a surplus for the country as a whole, but identifies two sets of regions which are experiencing large deficits: (a) the North Midlands and Red River Delta regions, and (b) the Mekong Delta and N.E. of Mekong regions. These areas would presumably experience the greatest stress on their forest resources. If, however, the TFAP estimate of sustainable supply of 25 million tons (not available by region) were to be used, the relative fuelwood deficit situation would be even more serious. 21. A number of implications are worth noting. First, although the fuelwood depleted North Midlands and the Red River Delta are substantially deficit, because the fuelwood marketing zone 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 accessible areas of the Northern Highlands provides an important source of cash income for the inhabitants, mitigating the food production deficit problem there. However, this also means that the forest capital in the Northern mountain areas could come under even greater depletion threat if the market for commercial fuelwood continues to expand. Second, part of the deficit of the Mekong Delta/N.E. of Mekong regions can similarly be mitigated by 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 much pressure as the remaining wetland forests in the Mekong Delta where transport is facilitated by barges in the densely inter-connected waterways. In the Mekong Delta, particularly in the coastal mangrove and Melaleuca forests, extensive areas are being cut over to meet commercial urban 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 Household Enerpv Issues and Options. September 1993 (henceforth called the UNDP/ESMAP study). - 64 - Annex 3 Page 8 of 13 Table 5: Demand, Supply and Balance for Fuelwood and Charcoal, 1992 (in 1000 tons, air dry wood equivalent) Region Demand Supply Surplus Urban Rural Total Total (Deficit) 1) Northern 357 4,118 4,474 9,166 4,692 Highlands 2) North Midlands 97 1,189 1,286 747 (539) 3) Red River Delta 313 1,140 1,453 424 (1,029) 4) North Central 373 2,707 3,080 6,079 2,999 5) Central 245 1,171 1,416 8,807 7,391 Highlands 6) South Central 648 1,781 2,429 5,457 3,028 7) N.E. of Mekong 2,042 2,816 4,858 3,546 (1,312) 8) Mekong Delta 1,270 8,239 9,509 4,114 (5,395) Totals 5,345 23,161 28,505 38,340 9,834 Source: UNDP/ESMAP Study, Table 4.4. 22. GOV has had an ambitious tree planting program in place since 1975 to attenuate the 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 seedlings planted. One of the main reasons is that, in their current state, fuelwood plantations are uneconomical--having to compete directly with an open access forest resource. Other reasons for failure are poor soils, lack of skills and motivation, and inappropriate tree species choice. The need is to improve and extend areas of fuelwood or mixed forest plantations and encourage more economical and ecologically more sustainable alternatives, taking into account the problems and constraints that have to be addressed and the need for farming systems that are consistent with 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 continued emphasis on 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 plantations are uneconomical because they are competing with a free wood resource which is collected from the natural forests, degraded forest land, and miscellaneous areas. While this statement is true for plantation wood from the same area where open access opportunities exist, it may not hold if plantations are grown closer to market compared with sources of collected wood in natural forests. In the latter case, plantation wood could compete with a "free" remote resource. As has been pointed out in the UNDP/ESMAP study, possible savings in transport costs could well be invested 6/ Such trends project that as fuelwood sources get more scarce, its price differential vis-a-vis other sources like coal is expected to worsen. Also. as kerosene (a convenience fuel for urban cooking) becomes more affordable and available, the share of fuelwood (including charcoal) is expected to decline further. - 65 - Annex 3 Page 9 of 13 in a fuelwood plantation and be competitive with "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, alternative uses may be more profitable (e.g., for industrial estates). 24. Another need is the reduction of demand for fuelwoods through the improvement of cook stoves. Substantial development and demonstration work has been undertaken in Viet Nam. The need is to focus the Government's Improved Cook Stoves Program in resource stressed areas. Another issue on the demand for fuelwood is the situation with respect to inter-fuel substitution and the extent relative price incentives affected by Government policy play a role in increasing fuelwood demand and consequently forest degradation. Commercial Loggin, 25. Historic accounts show the role of forest degradation from logging followed from the collectivization of land resources in the 1950s. State organizations, in particular the forest enterprises, were given the mandate to intensify logging of valuable timber from the hills. Prices set by the state for the timber covered little more than logging and transportation costs and recurrent expenditure. Little direct reinvestment in reforestation took place. This established a pattern of extraction to meet external needs, after which many communes seemingly lost their traditional collective mechanisms for protecting and managing the forests. The absence of any effective property rights to hill land led to a situation where land became liable to short-term exploitative practices and random clearance of the remaining trees for fuel or construction purposes and agricultural cultivation then 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 1986 to 1991, GOV reported that forest industries harvested approximately 3.5 million m3 of wood annually (with an additional 30 percent to 50 percent be added for illegal logging). The total standing volume is 525 million m3. Conversion to area equivalents indicates that legal logging accounted 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 stock of these forests means that proportionately less area is affected than in the Northern Mountains. However, it is in the Central Highlands that large quantities of logs are smuggled across Laos and Cambodia to Thailand 9/. This illegal trade explains the disproportionate loss of forest land compared to official log extraction figures in the region. Demand for paper, of which less than 100,000 tons is produced annually, may appear not to contribute to substantial deforestation as 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 distance between a natural forest and a plantation located at the point of demand is 80 km and transport costs equal Dong 1,000 per ton per km (USS 0.1 per ton/km), then (all else equal) plantation wood can be grown at a cost of up to Dong 80,000 per ton (USS 8/ton) and still compete with a 'free' (open access) supply of wood that is 80 km or further from the market. If the mode of transport is by boat then this break-even distance would be about 240 km, due to boat transport costs being roughly one-third of trucking costs per ton/km. 8/ A. Forde, 'Cooperatives, Families and Development in Northern Viet Nam - some experiences from the Forest, Trees and People Project, 1989". 9/ There is also considerable smuggling of Laotian and Cambodian logs into Viet Nam. Since 1991, with the ban of log and lumber exports from Viet Nam, 'inward flows" (including local 'leakages') have been reported to have increased substantially. - 66 - Annex 3 Page 10 of 13 commercial plantations has displaced traditional sources and may thus have increased the degradation pressure on forests. 27. Official logging occurs in natural production forest, but unofficially it also takes place in protected and special use forest, albeit at a much smaller scale. Until 1991, the volume of logs extracted from natural forest for the wood industries has been estimated to have surpassed the sustainable yield. Since the ban on the export of logs and lumber in 1991, logging activities by the state enterprises have been substantially reduced due to depressed log prices and a processing bottleneck. Depressed prices are a consequence of log export restrictions. The bottleneck is the underdeveloped processing industry, which consists of a few hundred small mechanical mills 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 producing ash that acts as fertilizer. Also, the initial regrowth after burning woody grasses makes suitable grazing. Uncontrolled fires often burn 10 to 20 twenty times the intended area. The result is not only the destruction of protective vegetative cover, but also the loss of soil organic matter and associated soil structure decline. 29. The incidence of officially reported 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 conditions of the soil in Southern Viet Nam makes the vegetation readily combustible. The impact of forest fires on forest ecosystems has not been measured, but knowledgeable experts suggest that the system under greatest threat is the lower-montagne evergreen forests of the central highlands. Shifting Cultivation 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 exclusively of members of a few ethnic minorities. Their land use is extensive, covering large areas although actual cultivation at any one time may be just a fraction of the "used" area. Families live away from each other, each clearing plots around their homes and cultivating them for a number of years, until fertility becomes too low or weed growth becomes too vigorous. When the distance to the plots becomes too long, they move to a new site. This kind of shifting cultivation is responsible for some loss of forest in the highlands. Given the fast regrowth of the vegetation and if given enough fallow time, there is usually relatively little erosion resulting from this activity. Because of their nomadic nature there is little information available about their farming systems. In 1990, their cultivated holdings were estimated to cover about 180,000 ha, the majority occurring in the Central Highlands and the Northern Mountains, where the minority populations are concentrated. 31. The sedentary shifting cultivators include most of the rural population outside of the deltas (mission estimate is perhaps 15-16 million people or nearly 70 percent of non-itinerant population in the hill/mountain areas). They have fixed households and shift cultivation sites. Some members of this group have access to small lowland paddy holdings. Cultivation generally includes portions of the open access barren lands. Probably relatively little direct loss of natural forest can be attributed to this activity. However, it has caused serious land degradation problems due to over-cultivation, and is the primary factor preventing regeneration of natural forest on the barren lands. Over-cultivation is a particularly - 67 - Annex 3 Page 11 of 13 acute problem in the Northern Highlands, Northern Midlands, and North Central Coast because of the high percentage of unstable land. The extent of sedentary shifting cultivation is estimated to cover as much as one million ha (i.e., one million ha/year is abandoned by shifting cultivators with a comparable area of fallow land being brought back into production) 10/. 32. Crop husbandry practices used by the itinerant shifting cultivators and by sedentary shifting cultivators are similar: both use hoe cultivation and plant in jab holes without use of fertilizers. The difference lies in their respective areas of concentration, with itinerant shifting cultivators linked to commercially logged areas and sedentary shifting cultivators utilizing so-called barren (degraded forest) land. Crops grown on hill-sides include primarily upland rice, maize, and cassava with some soybean and peanut, mainly in the central upland plateau. While shifting cultivation using 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 changed to continuous cropping systems due to population pressure on the land resource. In several relatively isolated areas of Northwestern and Central Viet Nam, villagers reported that a day's trek was needed to reach land spare for shifting cultivation. 33. It is unclear to what extent the itinerant shifting cultivators are 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 susceptibility of the land to deterioration, previous farming history, crops grown, and population density. Once the population density grows beyond the threshold level it will be necessary to modify one of these factors determining sustainability. It is therefore in the Northern Highlands and Midlands and the North Central Coast that sedentary shifting cultivators cause 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. Construction of dams results in the flooding of large areas of forest. It has been estimated that 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 deforestation by creating new navigable waterways for transporting logs. The effects of the war on upland forest, as elaborated in Annex 4, have been largely mitigated over 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 degradation cannot be interpreted as one million ha of forest loss/year as some fallow land brought to such use are not classified as forests. 68 - Annex 3 Page 12 of 13 C. The Physical Impact of Upland Forest and Land Degradation Erosion Effects 35. The net effect of the sources of degradation/erosion (as reflected in the resulting loss of agricultural productivity, reduction of water quality, and sedimentation of streams, lakes and reservoirs) is of increasing concern in Viet Nam. Deforestation alone, as the discussion above makes clear, does not necessarily result in severe erosion problems. The cause of erosion is deforestation closely followed by cultivation of soils that are inherently susceptible to deterioration. Natural factors facilitating deterioration include climatic and seismic factors, slope, and the inherent susceptibility of the soils and geologic materials to structural failure. A more detailed explanation of these relationships is provided in Annex 2, which attempts to set up an index of susceptibility. This section summarizes the data available on erosion impact. 36. In terms of on-site effects, the multi-storied canopy of upland forest intercepts rainfall and reduces erosion. Under closed canopy (70-80 percent) conditions estimates of natural soil loss are 1.0 tons/ha/year. When the forest canopy is completely removed, and the land is cultivated, this loss increases to 100-150 tons/ha/yr on slopes of 5-6 percent, and up to 350 tons/ha/yr on over 30 percent slope. Soil loss is generally highest in the first year and then declines at a declining rate in following years. Agricultural yields mirror this trend. Among annual crops, cultivation of cassava and maize results in the greatest soil loss. Perennial crops cause less erosion than annual crops because the soil surface in not disturbed as frequently in the cultivation process. Geographically, soil loss is most acute in the Northern Mountains where a high degree of inherent susceptibility to erosion is combined with the production of annual crops such as upland rice, maize, and cassava. Land productivity studies 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 cultivate the land for three years before the yield drops so low that they no longer warrant the effort put into planting and weeding. (See Annex 2 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 eventually makes its way down to the deltas where it is distributed by floods. The sediment load 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-off in the middle and downstream sections of the rivers. Eighty to ninety percent of this sediment load occurs during the rainy season. The construction of reservoirs, dams, and flood control systems has resulted in the trapping of this fertile sediment, which essentially means a loss of contribution to agricultural productivity. Increased flooding and bed build- up has led to the requirement of continually raising downstream line banks and increasing the risk of widespread flooding even more should the levees burst. 38. A more dramatic off-site effect is the flooding and landslides resulting from bare "barren lands". "Nature has wreaked a fierce revenge for the wholesale destruction of forests in Northern Viet Nam, devastating an entire valley with a sudden flood that surged down the barren hills. According to official accounts, 80 people were drowned or are missing after a wall of water smashed through Muong Lay, about 300 km northwest of Hanoi on an upper tributary of the Red River. The deluge swept away four of the town's five bridges and flattened homes, schools and offices. Fourteen days after the tragedy, roads through the barren hills, which lost tonnes of topsoil, were still blocked and authorities were unable to deliver 50,000 tonnes of rice to hungry survivors, despite army help" (Bangkok Post, July 16, 1990). "The provinces of Quang Binh, Ha Tinh, and Quang Tri, all in the North Central Coast, were recently hit by the worst floods in 42 years--with hundreds of persons reported dead or missing - 69 - Annex 3 Page 13 of 13 and damage to property estimated at over 70 million dong. Quang Ninh alone had more than 30 dead and 12,000 houses destroyed or damaged. In particular, two of its villages, Truong Xuan and Truong Son, were completely devastated and more than 4,000 villagers had to take refuge. Most observers believe that it was mainly due to the deforestation at the headwaters of the Gianh River" (Viet Nam News, December 13, 1992). 39. The most critical watersheds are characterized by a high rate of sedimentation, a torrential flow due to high elevation and short course, and the occurrence of intensive agricultural activities. These circumstances are 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 importance in soil erosion of the main river systems may be summarized as follows (in tons/km2/year): * Red River and Da River 450 * Thao River 300 * Ngan San, Ngan Pho 200-300 * Dong Nai, Da Nhim, Tra Khu 150-200 The 40 main river systems are estimated to transport about one million tons of nitrogen and about half a million tons of phosphorus per year. The Da river watershed is estimated to have an average soil loss rate of 50 tons/ha/year. The estimated silt load being deposited in the Hoa Binh power station reservoir (one of the Da River dams) is 40-50 million m3 (or about 110 million tons) per year. According to 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 compared to the planned 250 years. 40. Sedimentation is also a problem in port cities in the deltas. Remote sensing data indicates that the deltas are extending into the sea at a rate of about 50 m per year. The most pressing issue is the port of Hai Phong, which is seriously threatened due to the high cost of frequent dredging, and plans are being considered to construct a new port about 70 km north of the city. Loss of Biological Diversity 41. Deforestation may be the most important contributor to the loss of biodiversity in Vietnam today, both at the ecosystem- and species-levels. However, the precise rate and magnitude of the loss of biodiversity is difficult to ascertain given the patchiness of data collection, some of which have been disrupted by the war, and the lack of time-series data. In more qualitative or non-value terms, experts indicate that forest fires and human settlement have seriously degraded the lower-montagne evergreen forests of the central highland. In addition, coastal marine ecosystems have been seriously threatened by municipal and industrial wastewater, over-fishing, and the use of dynamite to extract coral for lime manufacturing. 42. Current rates of extinction among both flora and fauna in Viet Nam are estimated to be 100 to 1,000 times what they would be under natural conditions. It is widely believed that Pongo pygmaeus was the first species to have become extinct since the Pleistocene Era. In 1904, Dicerorhinus sumatrensis vanished. Since then four other species of ungulate (Cervis nippon pseudaxis, C. eldi, Bos sauveli and Bubalus arnee have followed the 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 population believed to be fewer than 50, Bos bantenR and Rhinoceros sondaicus (the latter is estimated to have only ten survivors) are the next two species of large mammals to become extinct. In time, these species will be followed by Panthera tigris and Elaphas maximus. - 70 - Annex 4 Page 1 of 8 VIET NAM ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION Viet Nam War Damages and 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 operations was mainly Southern Viet Nam. The result was not only heavy direct casualties and continuing medical complications, but also the widespread disruption and degradation of productive ecosystems. 2. Almost two decades have elapsed since the end of the Second Indochina War. The Vietnamese have put the war behind them and are eagerly rebuilding their 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 expansion and 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 attempts to rationalize divergent estimates of the damage. It concludes that the environmental damages caused by the war are often sensationalized and sometimes mistakenly identified as the current cause of ecosystem degradation. 3. Bombs, herbicides, and heavy machinery were responsible for the majority of 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 reclamation are 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 dominated mangrove that were completely destroyed. One of the least understood and potentially most detrimental aspects of the war is how the modification in species distribution that it caused may have permanently changed the biodiversity of Viet Nam. 4. The health consequences of the war include the increase in mosquitos from bomb craters, which is partially responsible for preventable malaria, 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 Vietnamese which will probably lead, on a population basis, to increased rates of cancer, immune deficiency, congenital malformations, and neurological damage 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.' 6. The United Stated expended some 14 million tonnes of bombs, shells, and the like in its war in Indochina.2 The result was 25 million bomb craters displacing 3 billion m3 of earth and topsoil, causing health hazards, disrupting water flow, and increasing erosion.3 Seventy-one percent of the high- explosive munitions were targeted against former South Viet Nam.4 The bombing effort 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 contamination in Agent "Orange" was about 3.83 mg/I, leading to an estimated 170 kg dioxin (2,3,7,8-tetrachloro-p-dioxin) being deposited in the environment.5 Table 1: Major herbicides used in the Second Indochina War Name Composition (by weight) Application Orange A 1.124:1 mixture of the n-butyl esters of 2,4,5- Applied undiluted at 28.06 lhectare, thereby trichlorophenoxyacetic acid (2,4,5-T) and 2,4- supplying 15.31 kglhectare of 2,4,5-T and 13.61 dichlorophenoxyacetic acid (2,4-D). Also containing kg/hectare of 2,4-D in terTns of acid equivalent; 2,3,7,8 - tetrachloro-p-dioxin. also an estimated 107 mglhectare of dioxin. White A 3.882:1 mixture of tri-iso-propanolamine salts of Applied undiluted at 28.06 IJhectare, thereby 2,4-dichlorophenoxy-acetic acid (2,4-D) and 4-amino- supplying 6.73 kglhectare of 2,4-D and 1.82 3,5,6-trichloropicolinic acid (picloram) kg/hectare of picloram in terms of acid equivalent. Blue A 2.663:1 mixture of Na dimethyl arsenate (Na Applied undiluted at 28.06 Lihectare, thereby cacodylate) and dimethyl arsinic (cacodylic) acid. supplying 10.42 kg/hectare in termns of acid equivalent (of which 5.66 kg/hectarc is elemental arsenic). source: SIPRI, 1984 8. Ninety five percent of the defoliants were dispensed from C-123 transport aircraft equipped to deliver 3,000 L onto 130 ha. A mission usually consisted of three-to-five aircraft flying side by side, with one aircraft spraying a strip roughly 150 m wide and 8.7 km long (Vietnamese sources 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. Known herbicide expenditures against South Viet Nam from 1961 to 1971 were 70.72 million L (discrepancies in total herbicide quantity differ between sources 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 targeted against forest and woody vegetation and 14% against agricultural crops.9 Roughly 34% of the target areas were attacked more than once."' Defoliation missions were restricted almost entirely to the Southern part of the country. For example, many roadside areas in Dac Lac Province (especially along segments in the old Highway 14) were defoliated in 1,000 meter-wide strips on either side of the road. Some of these strips have yet to fully recover from the chemical damage. 10. Fire was used to keep defoliated areas clear of vegetation. There is no record available of the volume or type of incendiary devices used during the war. Among the 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 effectiveness of incendiary devices is to "seed" vast areas with imperata cylindrica so 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 constitute the most persistent negative effect on crop productivity. Quantitative estimates of the impact of imperata grass ranges from 1.0-1.5 million hectares. 11. The US forces began employing 200 twenty ton D7E caterpillar tractors to clear forest and level paddy fields in 1965." The purpose of this activity was to deny the opposition cover and food. Typically these vehicles were outfitted with a 2'h ton "Rome Plough" blade and a one meter "tree- splitter". 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 bombing and munitions were 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 activity was most intense in the provinces of Tay Ninh, Song Be, and the Ma Da forest in Dong Nai. Upland forest tree mortality increased exponentially with each repeated spraying. About 51,000 ha of upland forest were sprayed 4 or more times and experienced 80-100% tree mortality. The remaining 1.05 million ha of upland forest was sprayed one to three times and experienced 10-50% tree mortality. 13. The abundance of craters in the forest makes logging more difficult than normal. The logs must be cut shorter for maneuverability during skidding. Shrapnel damaged trees are unlikely to have maintained any commercial value. Management of bomb damaged forest costs about twice as much as undamaged forest. Rehabilitation, which involves opening the canopy for young trees and re-seeding valuable timber species, costs about US$ 100 per hectare'6. The spraying of Viet Namn's dense inland forest, which supports over 200 conmmercial tree species of which a dozen are high quality timber, resulted in a one time loss of 20 million m3 of merchantable timber, equivalent to a financial loss 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-perrnanently by grasses. The 51,000 ha where vegetation was completely destroyed rapidly became occupied with pioneer woody (Bambusa, Thyrsostachys, and Oxytenanthera) and herbaceous grasses (Imperata cylindrica). The tenure of these species is prolonged by fire. Recovery of grass infested lands by harrowing or disking followed by 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-invasion by native tree species is encouraged by first establishing plantations of fast growing trees to provide a shade canopy. It is unknown how long these disturbed forests take to re- establish 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 Ecological Effects on Terrestrial Animal Ecology 15. For wildlife, the principal impact of bombing and spraying was the destruction of the food and cover provided by the forest. Many animals probably migrated to eastern Cambodia in response to the military activity. However, these areas were most likely already populated to carrying capacity, and thus were unable to provide substantial refuge. In 1968, five animal species were listed as being on the verge of extinction in Southern Viet Nam: a tapir (Tapirus indicus), a bear (Ursus tibetanus), a gibbon (Hylobates pileatus), a pheasant (Lophura imperialis), and the kouprey (Bos sauveli).3' These species were probably already endangered due to the extensive logging activities that took place in the 1940's and 1950's. Wildlife re-colonization of damaged areas after the war was slowed by the change in habitat. 16. There was a modest level of direct damage to wildlife from the toxic effect of herbicides - particularly in the bird population. Pfeiffer (1970) describes touring defoliated mangroves in Duyen Hai district for 2'/2 hours without observing a single species of insectivorous or frugivorous bird.2' From 1985 to 1987 elevated levels of dioxin were measured in food and wildlife samples collected at markets in Southern Viet Nam.22 Overall, it appears that the war was only a minor factor in the degradation of biodiversity when compared to the prolonged impacts of logging, hunting, and agricultural expansion. Ecological Effects on Coastal, Aquatic and Marine Ecologv 17. Bombing and herbicide attacks on mangrove forest were concentrated on the delta of the Saigon River. The river channels were cleared of vegetation to 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 disrupted water flow and filled permanently with water, becoming breeding grounds for malaria bearing mosquitoes. 18. The mangrove ecosystem is particularly susceptible to defoliants, with a single spraying destroying the entire plant community. Destruction was exacerbated by salvage harvesting of the dead trees and/or application of incendiary devices. About 124,000 ha of true mangrove and 27,000 ha of Melaluca mangrove forest were completely destroyed;' representing about 30% of all mangroves in Viet Nam. 19. Mangroves grow along deltas and in estuaries and are a pioneer species on newly accreted coastline. The first species to colonize an area are Sonneratia and Avicennia, followed by 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 dominated by trees of the species Melaleuca. 20. Natural regeneration of mangroves is related to the accessibility of seed bearing tidal waters to damaged areas. In the early 1980s, 5-10% of the mangroves were still barren, the rest had either regenerated with a composition of 10% Rhizophora (the economically most important of the species) and 85 % other species, or had been converted to agriculture and aquaculture. Where mangrove species are established, a crop of firewood can be harvested in 5 years. Officials at the Duyen Hai Forest Enterprise cite that in 1992, costs of replanting Rhizophora were about US$ 70 per hectare, excluding bomb crater reclamation.24 21. The mangrove and wetland ecosystem support a rich variety of aquatic and avian fauna. 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 antigone sharpii) 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) estimates that between 2.7 to 4.5 million kg of shrimp per year have been lost due to the defoliation of the Ca Mau peninsula.' At a conservative price of US$ 1/kg (1993 constant price terms), the cost of wetland deforestation may be very roughly estimated at US$ 2.7-4.5 million per year or US$ 162-270 per 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 100,000 ha were subsequently cut for fuelwood, and cleared for agriculture and shrimp farming.26 Ecological Effects on Agriculture 23. The exact location of the agricultural areas targeted by US bombing activities 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 unexploded mines and bombs and bomb craters. It was estimated in 1976 that some 400,000 unexploded bombs and 2 million unexploded shells 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 reconstruction and soil reclamation. In Ben Hai district, Quang Tri province, the removal of unexploded bombs and levelling of craters cost US$ 1,000 per hectare in 1990.29 25. Fourteen percent of the herbicide missions were directed against cropland. These missions targeted the area between Ho Chi Minh City and Hui, concentrating on the provinces of Quang Tri, Quang Ngai, and Kon Tum. A single application usually resulted in complete crop 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 plantations were damaged by herbicides. 26. Longer term consideration in herbicide effect on agriculture is its persistence and mobility in the soil. Environmental insignificance (lack of effect on all but the most highly sensitive of subsequently planted subspecies) was reached within 2 months for the active ingredients in all herbicides used during the war." 27. There are several examples of complete destruction of agricultural lands and communities with land clearing tractors, although there is no inventory of the extent and location of 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 provinces of Dong Thap and Vinh Long. The current condition of these areas is unknown. However, it is assumed that any regrowth is dominated by Imperata cylindrica and, on higher ground, Pennesitum. Effects on Human Health 28. The wholesale bombing of the countryside caused many casualties and deaths. Long-term effects include loss of limbs and psychological complications. The most important and destructive herbicidal effect may have come from the occasional dumping 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 Vietnamese sources estimate that close to 2 million people were contaminated during the spraying operations.33 Bomb and herbicide damage also led to a marked decrease in food resulting in increased malnutrition. 29. Agent "Orange" accounted for 60% of the wartime herbicide spray operations. Its dioxin content averaged 3.83 g/m3, although certain lots contained between 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 estimates of the volume of dioxin released over Viet Nam are range from 100 to 136 kg36). Dioxin can be conveyed to the food chain in other chemicals, through water, and through the air. The action of wind and water is expanding the area of contamination. However, the severity of contamination is declining through scattering and decomposition. Elevated levels of dioxin are still measured in the Ailt in Southern Viet Nam. 30. Persons exposed to agent "Orange" are thought to be at higher risk of cancer, adverse reproductive outcome, immune deficiency, endocrine disorders of several types, neurological damage, skin disease, and other health damage.3' Although there is documented evidence of increased dioxin levels in Vietnamese from many parts of the country, no definitive association has 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 prohibitively expensive. In addition to cost, less than 15 laboratories worldwide have demonstrated ability to perform dioxin analyses in human tissue. Unfortunately, as of yet, there is no clinical means for reducing body burden of dioxins. Other than continuing to support research, there is little that can be done specifically for 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/April 1992. 4. Warfare in a Fragile World. Military Impact on the Human Environment. SIPRI 1980.p. 79 5. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 7. 6. Mr. Boi, Silvicultural Expert. Forest Inventory and Planning Institute. Personal communication. Dec. 1993. 7. Harrigan, E.T. Calibration Test of the UC-123MA/A45Y-1 Spary System. Technical Report ADTC-TR- 70-36. Armament Development and Test Center, Eglin AFB, Florida. p. 160. 8. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 5. The most commonly quoted figure is 72 mil. L, which includes Cambodian and Laos missions. 9. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 6. 10. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 6. 11. Kemf, E. The Month of Pure Light, The Regreening of Viet Nam. London. 1990. p. 81. 12. Kemf, E. The Month of Pure Light, The Regreening of Viet Nam. London. 1990. p. 81. 13. Warfare in a Fragile World. Military Impact on the Human Environment. SIPRI 1980. p. 79. 14. Warfare in a Fragile World. Military Impact on the Human Environment. SIPRI 1980. p. 80. 15. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 9. 16. Dr. Khai, Vice Director of Ma Da Forest Enterprise. Personal communication. December 1993. 17. Warfare in a Fragile World. Military Impact on the Human Environment. SIPRI 1980.p. 82. 18. Dr. Khai, Vice Director of Ma Da Forest Enterprise. Personal communication. December 1993. 19. Dr. Khai, Vice Director of Ma Da Forest Enterprise. Personal conmmunication. December 1993. 20. Nghan, Phung Trung, 1968. Status of Conservation in South Viet Nan. In: Talbot, L.M. and Talbot, M.H. (eds), Conservation in Tropical SE Asia. (International Union of Conservation Nature and Natural Resources Publication N.S. No. 10, Morges, Switz.), 550 pp. 2 pl.:pp. 519-522. 21. Pfeiffer, E.W. Ecological Effects of the War in Viet Nam. Science, Vol. 168. May 1970.p. 518. - 77 - Annex 4 Page 8 of 8 22. Schecter et al. Chlorinated Dioxin and Dibenzofuran Levels 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-term Ecological and 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. Conmmittee 10-80. Proceedings of the Ilnd National Symposium. 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 intelligence report on bombing of 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. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 11. 31. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 16. 32. Westing, A. Herbicides in War, The Long-term Ecological and 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-term Ecological and Human Consequences. SIPRI 1984. p. 14. 35. Westing, A. Herbicides in War, The Long-term Ecological and Human Consequences. SIPRI 1984. p. 16. 36. Conmmittee on 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. - 78 - Annex 5 Page 1 of 8 VIET NAM ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION Hill Area Programs with Environmental IMplications: A Review 1. The government of Vietnam (GOV) has been implementing a number of programs in the Hill areas of Viet Nam. These programs were designed to address GOV's concern for land degradation in the Highlands, the poverty level of ethnic minority populations located in this region, and the security status of inhabitants bordering Cambodia, Laos, and China. This annex reviews the following three interrelated programs which have important implications for the government: (a) Government sponsored resettlement; (b) Reforestation; (c) Development of "barren hills." The lessons learned would be important for the design of projects to ameliorate the severe land degradation situation in susceptible hill areas. A: Government Sponsored Settlement Programs Background 2. Since 1961, GOV has encouraged the official resettlement of 4.8 million persons. This population redistribution program 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 employment in the agricultural sector, and (d) to strengthen national defense. In the 1960s the Democratic Republic of Viet Nam encouraged approximately 1.0 million people to migrate from the Red River Delta to the Northern Midlands and Highlands. Inexperience coupled with inadequate preparation forced 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 redistribution program can be separated into three distinct phases that met with varying success in comparison with its expressed targets (see Table 1). Table 1: Officially Sponsored Population Redistribution - Planned and Actual Year Planned Actual Area Settled (millions) (millions) (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 Source: Center for Population and Human Resource Studies. - 79 - Annex 5 Page 2 of 8 3. Of the 2.4 million people who were officially resettled from 1981 through 1990, about 75 percent moved within their own provinces. Of the approximately 590,000 people who moved outside their provinces (1981-89), 75 percent moved from the North to the South. The origin of this North-South sponsored provincial out-migration were essentially from two population-surplus regions: (a) Red River Delta Region (accounting for about 58 percent), and (b) the North Central Coastal Region (41 percent). For the former region, the primary destinations were the Central Highland Provinces of Gia-Lai Kon Tum, Dac Lac and Lamn Dong; for the latter primary destinations included Gia-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 exclusively within their own provinces (see Table 2). Table 2: Officially Sponsored Settlement, 1981-89 ('000 Persons) Region of Origin Total Within Outside Province Province North: Midlands and Mountains 200 194 6 Red River Delta 356 88 268a/ North Central Coast 420 238 182a/ North Subtotal 976 520 456 South: 320 220 lOOb/ South Central Coast 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 balancing growth and envirornental impact, controlled migration can be said to have been quite successful. Pressure in the overcrowded provinces in the North was partly relieved; new settlers, especially those who moved to the agriculturally well-endowed Central Highlands, improved their standard of living; and the production of exportable tree-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 liberalization of controlled migration since 1988, however, the situation could change drastically. 5. Of the 3.92 million officially resettled Vietnamese between 1976-90, about 46,000 families (207,000 people) migrated "spontaneously". Since population movement had been tightly controlled prior to Doi Moi, most of this spontaneous migration took place after 1988. This meant that perhaps about - 80- Annex 5 Page 3 of 8 20 percent of the resettlement which took place at the end of the decade of the 1980s was not officially sanctioned. These involved primarily the movement of ethnic minorities from the Northem Midlands and Mountain Region to the Central Highland Region. 6. From 1986 through 1992, about 13,000 primarily ethnic families (65,000 people) comprising mainly Tay, Nung, and Yao from the North, illegally settled 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 without adverse environmental effects. Such movement, while uncontrolled, is usually not spontaneous. Most are relatives or friends from the home villages of existing residents in the destruction areas. 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 unofficial migrants 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, manually constructing small irrigation works. These activities are, in effect, undertaken by tacit agreement of the local authorities. If such a trend were therefore to continue, the pressures of deforestation on the remaining biological resources would be devastating. Delineating priority areas for demarcation and protection must begin immediately and settlement in these areas will have to be carefully planned to ensure that both development and joint protection measures are implemented. The Programs 7. Among the programs or sub-programs in support of Government's resettlement policy, the one with the largest implication for forest degradation and soil erosion is GOV's Fixed Cultivation and 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 essentially reflected in the intra-provincial migration given in Table 2 above. This is one of the most important programs targeted towards assisting the approximately three 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 cultivation of ethnic minorities and encourage socio-economic development and improved income activities (including the provision of education, water supply, and health support services). 8. Other parallel sub-programs administered through the Provinces, state enterprises, and the Ministry of Labor, Invalids and Social Affairs pertain to the North-South sponsored resettlement to 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 establishment of "new economic zones" for permanent settlement of households from labor surplus provinces in the Northern Region and provide financial support for cooperatives and state farms to invest in infrastructure construction and production services. The program also provided opportunities for ethnic minorities to adopt permnanent settlement, and additional financial 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 population surplus areas for promotion of resettlement. Mass media and notices at the provincial and district offices of the Ministry of Labor, Invalids, and Social Affairs set out the requirements in terms of types of settlers needed. Preference was given to younger, able-bodied married couples that: (a) were willing to face the difficult frontier life, (b) had the background or training which could fit the agricultural enterprises that were to be promoted, and (c) had some of their own savings to start a new life. Selected families are 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 proportion of refugee outflow was reported to be as high as 50%. 9. Elements of the settlement programs were modified as Government policy evolved over the years--first in 1982 (COM Decree 184/HDBT) and especially after 1989 (COD Decree No. 72/HDBT)-- when the program introduced land allocation to the population (usually starting with workers of state enterprises). They were given long term use rights (30-50 years) for agro-forestry and were also provided initial exemption from agricultural taxes if they were practicing agro-forestry. Grants were given for up to two thirds of the cost of developing a new block of land (up to a maximum of 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 Coastal Regions and 111,000 from Northeast of Mekong Region to the new economic zones in the high plateau of the Central Highlands 2/. Forest, much of which is suitable for agriculture, was destroyed to grow cash crops (tea, coffee, pepper, sericulture/mulberry) and some subsistence crops like rice and vegetables. Many settlers to Lam Dong province, for example, were chosen from the Red River Delta Provinces because of their background in sericulture. A number upon 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-bodied male members of the household made charcoal from nearby natural forests for more lucrative cash incomes. By and large, however, cash cropping in the settlements in the Central Highland plateaus took place on agriculturally suitable land and improved the livelihood of the settlers. However, in the Northem hill areas, where natural forest areas are limited and holdings are more steeply sloped and relatively smaller in size because of population pressure, commercial success has been encountered only in some settlement areas (primarily the more accessible Northern Midlands) with the cultivation of trees yielding valuable non-wood products (including shellac, cinnamon, gum resins). Overall, based on the assessment of the fixed cultivation and sedentarization programs, the predominiant problem existing in the Northern hill areas continues to be unsustainable land use/farming practices. 11. From more than 20 years of implementation of the Fixed Cultivation and Sedentarization Program, 66 percent (1.9 million persons) of the original resettlement target (2.9 million) have adopted permanent settlement, of which: (a) 30 percent (nearly 0.6 million) may be considered to be "successful" in that they are sedentarized and cultivating permanent cash crops with "stable" income and little need for Government support, (b) 40 percent (about 0.8 million) may be considered to be marginally successful in that Government support for production activities is still needed, and (c) the remainder have proved to be unsustainable even with Government support (i.e., they continue to destroy the forest and practice slash-and-burn agriculture) 3/. The unsustainable ones tended to be in the Northern Midlands/Mountain 1/ See Do Dinh Sam, National Background Paper on Shifting Agriculture in Viet Nam presented at a workshop on 'Shifting Agriculture in Laos and Viet Nam, its social, economic and environmental values to Alternative Land Uses", Chiang Mai (Thailand), August 1992. 2/ Caroline Sargent, Land Use Issues, Technical Report 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 conditions are more favorable. The main lesson is that new settlements cannot be started in productively unsustainable areas. Choice of areas with good chances of success and careful planning for the development of prospective enterprises must first be undertaken. B: Reforestation Programs 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 initially used standing stocks of raw material including bamboo from home gardens and plantations of "quick" growing trees (Stvrax and Mangletia spps.) harvested from the mountainous areas fringing the Red River Delta. Since the early 1980s, however, the state enterprise responsible for procuring raw materials for the mill began establishing new plantations in the more accessible lowlands 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 vulnerable hill land, and resulted in the illicit cutting of trees in the newly reforested plantations. Thus, trade-offs between industrial development and household use have to be taken into account in designing any commnercial reforestation program. Allocation should be given to the loss of use of what is ostensibly "unused" barren land; otherwise, the success of the commercial reforestation program would be compromised. 13. SIDA's mill support program included the establishment of a Plantation and Soil Conservation (PSC) Project and, within it, an FAO-assisted subproject on Forest, Trees and People (FTP) to focus on the socio-economic forestry aspects with greater emphasis on the role of rural households. 14. Evaluations in the late 1980s found that the PSC project was still biased towards maximizing production from intensive forest plantations to the detriment of the restoration of longer term fertility of the soil 51. The PSC project succeeded, however, in providing tree seedlings over and above the industrial program requirements to 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 households were not fully taken into account. The promotion of reforestation remained focused on a specific technology transfer approach (monocropping with primarily Eucalyptus and Acacia spps.) on specific sites ("barren hills" on the lower Midlands) rather than on identifying and helping farmer groups to tackle their problem of fuelwood shortages. This rather modest impact in successfully reaching rural households stems 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 explicitly takes into account the interest of affected stakeholders, commercial agroforestry may not be sustainable in these resource-poor areas. 15. Unrealistic technology rigidities 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 Gayfar and Edwin Shanks, 'Northem Viet Nam Farmers, Collectives and the Rehabilitation of Recently Reallocated Hill Land", ODI Social Forestry Network Paper No. 12a, Summer/Winter 1991. 5/ See SEFDA, Viet Nam - Plantation and Soil Conservation Project, Review Mission Report, November 1988. - 83 - Annex 5 Page 6 of 8 opportunity for a diversity of farmer actions, uniformity by and large prevailed--determined primarily by the interest of the cooperatives. Besides the required mono-cropped tree species (eucalyptus), guinea grass was planted by all farmers (even those without cattle). It tested models on 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 implementation because the approach was totally new, highly management intensive (by local standards) and, where successful, has proved to be difficult to sustain. Also, local innovations which could be more successful (e.g., based on elephant grass and other vegetative stabilization technique with bamboo run-offs, the excess being channeled to fishponds) were not adequately exploited. Furthermore, the extension support and training to be provided by Government were insufficient with project tasks added on to district staffs' regular duties. 16. While it was not possible to far exceed its original mandate under limited budget constraints, SIDA has, since 1989, been moving in the right direction with 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 challenges to be faced in these projects. The World Food Program Hill Area Reforestation Projects 17. The project activities of the World Food Program (WFP) in the hill areas, which began in 1976, (a US$ 17.1 million project) faced similar logistical and 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 plantations and 11,000 ha of dispersed plantations in the midland areas of Bac Thai, Hanoi, Ha Son Binh, and Vin Phu provinces where, in general, the ethnic minorities are integrated with the Kinhs. It is essentially a reforestation/afforestation project emphasizing the replantation of eucalyptus, acacia, manglieta, melia, styrax, and bamboo on severely eroded areas to provide additional fuel and pole wood, reduce the stress on natural forests, and provide for subsistence and local market needs. It's main advantage is that it is being implemented in an environment that will facilitate the reallocation of forestry land from state entities to individual farmers. In principle, this type of land allocation should address one of the most important constraints to successful reforestation programs--the lack of incentives to increase efficiency and to protect and adequately manage established plantations. Project participants obtain long-term leaseholds which are officially recorded as land tenure deeds. Some problems have been encountered with these issues, especially with respect to ethnic minorities. Because of the chronic structural food deficit situation in the project areas, and with project beneficiaries comprising poor households with 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 production incentives, but would provide the 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 government initiated programs have also been implemented in 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 conditions required by each of the projects. Provincial authorities should ensure consistency in programs, especially if they are being implemented in 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 development of 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 Guidelines and Policies To Utilize Unoccupied Land, Barren Hilly Areas, Forests, Denuded Beaches and Waterfronts". A ten year program, coordinated by the State Planning Committee (SPC), was launched in 1993 to implement this decree. The provinces, often jointly with central agencies (essentially from the Ministries of Agriculture and Food Industries, Forestry, and Aquatic Products) 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 throughout the country with emphasis on 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 technologies or products for manufacturing industries, and on environmental protection. Guidelines were given for size of projects and plots to be allocated to households by subsector (e.g., industrial tree crops, agro-forestry enterprise, livestock enterprises), investment funding, and organizational structure, including the role of the key agencies to plan, approve and implement projects to be supported. Annual commercial timber production quotas/targets were 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 observations of this program in mid-1993, a number of concerns are worth noting. The first relates to the appropriateness of the stated goal of increasing 'the production of raw materials and commodities for industries' in an environment with inadequate infrastructure and which presently provides, at best, marginal food security for a still rapidly growing population. This, in turn, raises the question of land suitability, and more importantly, land availability for the envisaged expansion of industrial cropping. With planners working from clearly inadequate land 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 alternatives have been successfully developed, at least within Viet Nam. A clearef understanding of the constraints to successful implementation at both the program administration and affected household levels should first be sought before technology or investment measures are contemplated. 22. The second major concern involves the level of farmer participation in resource use 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 immediate future, projects of this kind (i.e. agro- forestry) should be based on agro-forestry services directed by the state", and by Article 12, which intimates that the program (now being finalized by SPC and planned largely without farmer participation) would be "from now to the Year 2000... to plant and reforest the unoccupied coastal 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 program were bome out to a considerable degree 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 involving New Economic Zones, are: - 85 - Annex 5 Page 8 of 8 * 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 management with its associated incentive payments and performance bonuses. A "zero-based" budgeting approach, whereby all projects have to be rejustified on the basis of clear criteria for selection and adequate judgment on feasibility, should be introduced. 24. The 1993 Decree 327 investment program was budgeted at US$ 68 million with US$ 45 million allocated as of May 1993, and approximately US$ 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 allocation to the three principally concerned Ministries, namely Agriculture and Food Industry, Forestry, and Fisheries (Aquatic Products) represents about 40 percent of their total annual budget. The other principal participant is 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 estimated 2000 itinerant communities involved in shifting cultivation and had planned to commence settlement of 400 additional communities in 1993. Their 1993 Decree 327 budget allocation of D 100 billion (US$ 9.5 million) provides around 6 percent of their estimated requirement of US$ 2,000 per family for effective settlement. While full details of the investment program were not available to the mission, it was evident from discussions with DFCS and provincial authorities that budget allocations fell well short of estimated requirements without corresponding reductions in planned outputs. By the end of 1993, however, about D 520 billion (nearly US$ 50 million) were spent as follows: (a) roughly D400 billion on capital investment--for 1122 projects comprising 400 projects (about D130 billion) in forestry, 258 projects (about D 90 billion) in agriculture, 30 projects (D 40 billion) in fisheries, 434 projects (about D 90 billion) in sedentarization and settlement support; and (b) D 120 billion on administrative and operating costs. 25. In summary, these projects, mostly planned without sufficient information for prioritization on the basis of land use and capability classification or enterprise profitability, are typically ongoing ones that had completion dates set years ahead. Even then, with widespread coverage to virtually all provinces and insufficient resources (both financial and human), a lot of the critical input deliveries (e.g., seedlings for trees) were short and initial investments remain uncompleted. Because implementation had not been linked to priority needs and to fulfilling prerequisites for success (both technical and organizational) there is a risk of resource wastage as resources are spread too thinly to achieve the stated objectives. There is a very real risk that the 1993 and 1994 ongoing programs will absorb a growing amount of Decree 327 finances in coming years, thereby reducing opportunities for financing new and better planned programs. - 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 Page 2 of 6 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 Page 3 of 6 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 capabilities and the availability of investment capital. Households will have the use of these areas for a long period and can appropriate 3000m2 for their own agricultural use. In the immediate future, projects of this kind should be based on agro-forestry services directed by the State . In unoccupied barren, land, there is potential to expand such projects, but they should first be carefully formulated and prepared. Article 8 Within the livestock breeding 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 (for afforestation, farming, human settlements and 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 af forestation, 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 Page 5 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. The following authorities have the responsibility to examine the projects. - The chairman of the Council of Ministers will evaluate and approve large- scale 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 ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION Watershed Erosion Impact and Costs: The Da Watershed Summary 1. This analysis examines potential soil conservation projects in the Da watershed of Northem Viet Nam. The Government of Viet Nam (GOV) is eagerly promoting soil conservation projects for two reasons: (a) there is an abundance of degraded land in the watershed, and (b) there is mounting concem about the high sedimentation rate of the Hoa Binh reservoir at the base of the watershed. The economic impact of introducing four soil conservation measures (grass strips, earth bunds, agroforestry, and terracing) is simulated with a computer model. Results indicate that over the next 30 years, erosion from upland farming activities will impose costs of about 70 million dollars on lowland farmers and reservoir users. All of these conservation measures increase total net benefits of the affected parties. Because of their high initial cost, it is unlikely that any of these soil conservation initiatives-with the exception of possibly vegetative measures--will be adopted while there is an abundant supply of 'open access' land. Introduction 2. Investments in soil conservation are particularly important in the context of the GOV's recently promulgated decree 327. The decree sets out "Major Guidelines And Policies To Utilize Unoccupied Land, Barren Hilly Areas, Forests, Denuded Beaches, and Waterfronts." The State Planning Committee (SPC) is coordinating a 10 year program to implement decree 327. The budget allocation, although equivalent to nearly 40% of the total budgets of the Ministry of Agriculture and Food Industries (MAFI), Ministry Of Forestry (MOF), and the Ministry of Aquatic Products, amounts to only US$ 70 million. About 1,800 projects have been proposed for implementation. Given the financial constraints currently faced by the GOV, cost effective policies and projects for support must be identified. Background & Methods 3. The computer model used to examine the soil conservation measures in the Da watershed has three interlinked modules: (a) a core which simulates upland agriculture, (b) a lowland module which simulates runoff damages, and (c) a reservoir module which simulates sedimentation. Construction of an erosion simulation model requires extensive specific information about the relationship and interaction of the system's components. For Viet Nam, much of this information is either unavailable or inaccessible. Therefore the model is created from mission observation and secondary data. Where necessary, 'best guess' estimates are made. 4. The core of the model is based on upland cropping patterns in the Da watershed, which includes 2 million hectares of fallow, 250 thousand hectares of upland rice, 150 thousand hectares of maize, and 100 thousand hectares of cassava. The cropping rotation is typically 8 years of fallow followed by three years of upland rice, and then 3 years of maize or cassava. Fallow land is an important source of pasture and fuelwood. Initial yields average 1000 kilograms per hectare for rice, 850 kilograms per 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 Page 2 of II cultivation. Upland rice cultivation expands at the rate of population growth. Erosion in rice and maize fields is 100 tons of soil per hectare per year, and 200 tons of soil per hectare per year for cassava. 5. Runoff feeds into the lowland component of the model. Lowland farmers control runoff by constructing silt traps at the foot of slopes (Truc, 1990). In narrow valleys the upper most paddy is left to impound runoff and sediments. The accumulated sediments are dug out and carried back uphill in shoulder baskets to spread on the fields. This is done, despite the heavy human labor involved, because the mud adds fertility to the depleted upland soils. Since little generalizable information is available about the amount of lowland crops destroyed by water runoff or the volume of soil that is captured in silt traps and carried back uphill, two assumptions are made: (a) one hectare of lowland rice is destroyed for every 5,000 tons of soil eroded, (b) silt traps capture 10% of the soil losses and one man day of labor is required to dig up one ton of sediment and carry it back uphill. The opportunity cost of one hectare of lowland paddy is US$ 200 per year. 6. Sedimentation occurs when runoff reaches the Hoa Binh reservoir. The reservoir has three purposes: (a) flood control, (b) electricity production, and (c) irrigation. The major benefits from the Hoa Binh hydroelectric facility are an increase in downstream water flows in the dry season and a decrease in them in the wet season. Prior to dam completion, flooding destroyed 1,800 hectares of lowland crops annually. The Hoa Binh hydroelectric plant is expected to have a capacity of 1,920 megawatts upon completion at the end of 1993. Annual power production is 8,402 gigawatt hours and the load factor is 50% (The World Bank, 1993). The cost of electricity is US$ 0.06 per kilowatt hour (The World Bank, 1993). Forecasts indicate power demand for the region will increase 1% to 2% per year. The command area irrigated by the reservoir is estimated to be 1000 hectares. 7. Identification of the precise source of sediment is impossible because approximately 45% of the Da wvatershed is in China. Studies show that 70 to 80% of the total sediment flow originates within China (The World Bank, 1993). The average sediment delivery ratio in Viet Nam is 20%, meaning that out of 100 tons of eroded soil, 20 tons makes it into the river system. Reservoir capacity is 9 billion m3 and the trapping efficiency is 80%. Sediment deposition into the reservoir is 42 million m3 annually. This estimate, although crudc, provides a baseline for calculating the volume of sediment entering the reservoir due to barren land agricultural activities. 8. A general lack of information about the reservoir makes it is necessary to assume a relationship between reservoir benefits and reservoir capacity. This relationship presumes that a decrease in reservoir capacity leads to an equivalent decrease in reservoir benefits. This assumption can be changed as more information is gathered about the design and shape of the reservoir. 9. Each component of the model has a cash flow module that is discounted at 10% over 30 years. Crop budgets for upland rice, maize, and cassava were prepared on a per hectare basis (Table I). The cost of unskilled labor in Hanoi is about US$ 0.75 per day. Although a near zero shadow price for labor may be justified in the typical upland areas of the Da watershed, the opportunity cost of labor in Son La and Lai Chau is assumed to be US$ 0.25. Labor utilization rates are a function of yields and decline as yields decline. Crop expenses are assumed to remain fixed throughout the cropping cycle. Prices are US$ 0.1 1/kg for upland rice, US$ 0. I0/kg for maize, US$ 0.034/kg for fresh cassava (NIAPP, 1993). - 94 - Annex 7 Page 3 of 11 The cash flow modules take the following form for the status quo situation: (a)Farmner net benefits =30 Rie zc. (revenues- expenses) (where d = discount rate, t = periods) 1=I =l t=l 11 .=, (1 + d) 30 (soil x %trapped x wage) + ( soil ) x avg darnaged production (b) Lowland farmer benefits= E tons / ha t,, (1 + d)' (C)Reservoir user benefits E (hpower.+irrigation+ fld. control) x (-(factorx(l-rsvr. capacity))) ,-I (I +d) These results are used to calculate total net benefits with the following equation:1 (d) Total net benefits = Farmer net benefits + Lowland farmer benefits + Reservoir user benefits) 10. In terms of mitigation measures at the upland farmer level, this analysis restricts itself to four soil conservation alternatives: (a) grass strips with mulching, (b) earth bunds, (c) terraces, and (d) agroforestry. Since no information was available at the time of this study on the impact of conservation measures on erosion rates and yield levels in Viet Nam, a literature review was conducted to identify research findings from other countries with similar climates and soil conditions. The results from the review are used to estimate baseline parameters for the impact of conservation measures on soil loss and agricultural yields. 11. When compared to clean cultivation, grass strips with mulching reduces erosion rates anywhere from 8-96%, depending on slope and land use. In addition to reducing erosion, mulching increases crop yields from 24-31% for upland rice, 10-188% for corn, 33% for cassava. Vegetative strips and mulching are almost as effective as structural approaches in controlling erosion. A conscrvative estimate for the Da is that vegetative strips and mulching reduce erosion rates by 20%, and increase yields 35%. 12. Earthen bunds havc only a limited lifc span of 3 to 5 years (Humi, 1982 and Marston, 1983). They decrease sediment yields 46% on wcll-structured soils in comparison to un-bunded plots (Sheng, 1981) and have been shown to decrease erosion rates 32% in Indonesia. Construction of banks alone has failed to show any significant or stable increase in yields at ICRISAT, however, at other locations in India yields of com increased 65%. As a base case for the Da, earth bunds are assumed to reduce erosion rates by 30% and to increase yields by 25%. 13. Terraces have been found to decrease erosion rates on slopes from 9% to 25% anywhere from 20% to 91%. In Indonesia terraces have been found to increase corn yields 34-38% and rice yields 18%. The base case assumptions for the Da are that terraces decrease erosion rates 40% and increase yields 15%. 14. Agroforestry experiments in Viet Nam have shown that this measure increases yields in coffee and tea plantations an average of 18-25%. Agroforestry is excellent at reducing erosion with field experiments in Vietnam showing a decrease of soil loss of 62-77% under coffee and tea. For the purposes of the model, it was assumed that this measure increases yields by 20% and reduced erosion 60%. l Please note that incremental benefit of a conservation measure is the total net benefit with the relevent measure minus total net benefits of the status quo situtation (see table 3). 95 Annex 7 Page 4 of 11 15. Soil conservation cost estimates are presented in Table 2 These estimates are separated into construction costs and labor costs. Grass strips and mulching, with an initial cost of US$ 88, are less expensive than the structural measures. Expenses include the additional labor spent cutting the grass strips and using them for mulching. In the initial year, construction and labor costs are high for both earth bunds and terracing because of the need to build the retaining structures. 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. Mulching and grass strips require US$ 15, and earth bunds, which are unstable, require US$ 25 in annual maintenance and replacement every 5 years. Terraces require US$ 50 and agroforestry US$ 40 in annual maintenance. Results and discussion 16. The model is most sensitive to changes in the assumption of the wage rate. The residents of the Da are subsistence farmers and have little opportunity to eam cash wages. The greatest uncertainties in assessing reservoir user costs are sediment yield, bulk density, and suspended sediment trapped by the reservoir. Since the capacity of the reservoir is large compared to the rate of sedimentation, sedimentation has a relatively small overall effect on reservoir benefits. This finding is inconsistent with the alarm being sounded by GOV officials. 17. All of the conservation altematives increases total net benefits of the parties using the watershed. Of the four management altematives modeled, agroforestry provides the greatest benefits to lowland farmers and reservoir users. Grass strips and mulching provide the greatest benefits to upland farmers. Results (in millions of 1994 US$) from three simulations of the management altematives are presented below: Affected Parties Existing Casc Incremental Ou comc of anaeen tent Altemniatives Grass Strips Earth Bunds Terraces .____________ and Mulchine Farmers Net Bcncfias 695 131 93 56 Lowland Farmer Benefit -66 8 12 16 Rcscrvoir Users Bcnefits -t.6 0.2 0.3 0-.3 Total Net Bcncfits 629 139 105 72 Sourcc: Table 3. Conclusions 18. The introduction of soil conservation techniques to the upland famers of the Da watershed is a 'win-win' policy because all three of the affected parties benefit. The greatest benefits come from the grass strips and mulching altemative. This is also the most likely altemative to be adopted by the upland farmers because it has the lowest initial start-up costs. 19. The lowland farmers and the reservoir users are inequitably bearing the costs of erosion. Therefore they should, in theory, be compensated by the perpetrators of the damage. However, since the farmers do not bear the costs of the damage, they have little incentive to take them into account in deciding erosion control measures. The lack of information on the source of erosion and the distance sediment travels means that it is unlikely the perpetrators of the damage can be identified in practical or operational terms. - 96 - Annex 7 Page 5 of 11 20. An analysis of soil conservation alternatives is not complete without a discussion of land tenure and property rights. Land tenure issues are of concern for three reasons: (a) tenure effects technology adoption rates and profitability, and consequently the impact of the policy or project; (b) introduction of specific technologies may affect land tenure pattems; (c) failure to understand existing tenure systems may lead planners to overlook promising opportunities to develop lands under particular tenure arrangements. 21. Comprehensive evaluation of the soil and water conservation measures for the Da watershed should not proceed without identification of the full range of tenure types and the characteristics of tenure that affect the adoption of the proposed technologies. Of particular interest is the possibility that there might be common property management schemes already in place for the barren lands. Since this information is not readily available, two assumption need to be made: (a) cultivators will be less likely to adopt technologies that have a long time-lag before they begin to generate benefits; and (b) where tenure status is weak the most appropriate technologies to promote should be those with quick returns and minimum levels of investment. 22. In the Da, where large tracts designated as state forest land have been converted to barren land for extended periods, there is a need to increase tenure security. This could be through formal land titling, granting of limited use certificates in state forest lands, and formalization of customary land rights. The only in-depth study of the impact of land titling on soil and water conservation in Asia was undertaken in Northeastern Thailand (Feder, 1988). The study compared the productivity of farmers with land titles and those with certificates of occupancy, and concluded that titles had a significant impact on technology adoption because of their value as collateral for loans. This study suggests that soil and water conservation projects in areas without clearly defined property rights should include titling components. Titles will give cultivators access to capital and enable them to transfer improvements to their heirs. 23. The issue of population growth and the availability of barren land deserves further attention. Although there is a plentiful supply of barren land onto which the rapidly growing population can expand, cventually it will become scarce. Fertility and crop yields will decline as rotation get shorter. Low yields mcan low productivity. Low productivity land requires a largc labor forcc which indircctly encourages a largc family sizc. The shortage of land and low productivity will lead to an impoverished population and 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 marginal existence. Thus a vicious cycle of poverty will be perpetuated. Therefore any strategy to promote conscrvation in the barren lands should include components that focus on: (a) increasing productivity, and (b) promoting family planning. 24. Ten to 20% of total sediment deposition in the reservoir comes from Vietnamese barren lands. Investing in soil conservation strictly for the purpose of limiting sedimentation is not worthwhile unless sediment entering the reservoir from other sources is controlled. This requires evaluation of sediment entering the rcservoir from non-barren land and close cooperation with the Chinese government, which will be extremely difficult to achieve. An alternative approach to maintaining reservoir capacity would be to dredgc the sediment. The viability of this proposition is unclear because of the large volumes of sediment involved, and the cost of sediment removal is little known. - 97 - Annex 7 Page 6 of 11 Table 1: Crop Budgets on a Per Hectacre Basis Upland Rice Maize Ca va Fallow Units Qty. Unit Total Qty. Unit Toual Qty. Unit Total Qty. Unit Total Cost Cost Cost Cost Cost Cost Cost Cost Uss Uss USS Uss USS USS USS USS Crop Expenses Seeds kg 100 0.11 II 100 0.11 11 150 0.03 5 0 0 Fertilizer kg 0 t 0 a | 0 0 0 Pesticides kg 0 0 0 0 0 0 0 0 Subtotal inputs I 11 5 0 0 LAbor Land preparation Md 15 0.25 4 15 0.25 4 15 0.25 4 0 0.25 0 Fertilizing Md 0 0.25 0 0 0.25 0 0 0.25 0 0 0.25 0 Cultivation Md 9 0.25 2.5 8 0.25 2 3 0.25 1 0 0.25 Harvsting Md 10 0.25 2.5 10 0.25 2.5 15 0.25 4 25 0.25 Transplantation Md 5 0.25 2.5 5 0.25 1.5 10 0.25 2.5 0 0.25 0 Subtotal labor 10 9.5 11 Total Crop Exnensc 21 20.5 16 Revenues I Crop harvest Kg 1000 0.11 I11 S50 0.11 94 1,200 0.03 41 25 1.00 25 Animal husbandry lia 1 2.50 3 Total Revenue 11 9 41 28 Retums Net return to land and mnaagement 90 73.5 25 21 - 98 - Annex 7 Page 7 of 11 Table 2: Per Ha Cost of Soil Conservation Technologies Grass Strips and Earth Bunds Terracing Mulch Units Qty. Unit Total Qty. Unit Total Qty. Unit Total Cost Cost Cost Cost Cost Cost US$ US$ Us$ US$ UsS Uss Construction Costs Seed material kg 25 0.50 13 n/a n/a n/a n/a n/a n/a Fertilizer kg 15 2.00 30 n/a n/a n/a n/a n/a n/a Pesticides kg 15 2.00 30 n/a n/a n/a n/a rna n/a Earth moving hrs 0 25.00 0 15 25.00 275 20 25.00 500 Subtotal Inputs 73 275 500 Labor Land Md 20 0.25 5 100 0.25 25 200 0.25 50 Preparation Fertilizing Md 10 0.25 2.5 0 0.25 0 0 0.25 0 Planting Md 10 0.25 2.5 n/a n/a n/a n/a n/a n/a Mulching Md 20 0.25 5 n/a n/a n/a n/a n/a n/a Subtotal Labor 15 25 50 otal Conservation 88 300 550 Expenscs .__ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ - 99 - Annex 7 Page 8 of 11 Table 3: Net Benefits from Soil Conservation Technologies for the Da Watershed (US$Million) Net Benefits of Crop Status Incremcnlal Outcome of Manam Alternatives al Affected Party Quo Grass Strips Earth Bunds Terraces and Mulching Upland Farmers Fallow 411 0 0 0 Rice 172 77 55 33 Maize 89 40 28 17 Cassava 23 14 10 6 Sub-Total 695 131 93 56 Lowland Farmers Labor -8 1 1 2 Crop Damage -56 7 l l 14 Sub-Total -64 8 12 16 Resevoir Users Hydopower 0 0 0 0 Irrigation -1.3 0.1 0.2 0.2 Crop Flooding -0.6 0.1 0.1 0.1 Sub-Total -1.9 0.2 0.3 0.3 Totals 629.1 139.2 105.3 72.3 a/ Measured as incremcntal net valucs to thc status quo. 100- Annex 7 Page 9 of 11 References Abujamin, S. 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Pengaruh Penanaman Berbagai tannaman Penututp Tanah Secara Strip Terhadap Erosi dan Limpasan Pernukaan pada Mediteran Desa Jatikerta Sumberpucung Maland. Thesis Fakultas Pertanian Universitas Brawijaya. Malang. Sunardi, M. 1989. Penggunaan tanaman Strip untuk Pengendalian Erosi dan Limpasn Permukaan pada Tanaman Tumpangsari Jagung san Ubikayu tanpa teras. Thesis. Fakultas Pertanian Universitas Brawijaya. Malang. - 102 - Annex 7 Page 11 of 11 Sutrisno. 1987. Pengaruh Pemberian Jerami dan Sifat-sifat Terhadap Erosi dan Aliran Permukaan. Thesis Jerusan Tana Fkultas Pertanian. Institut Pertanian Bogor. Bogor. Suwardjo and Sofijah Abujamin. 1983. Crop residue mulch for conserving soil in uplands of Indonesia. Soil and Conservation. Eds. S.A. El-Swaify, W.C. Moldenhauer and A. Lo. Soil Conservation Society of America. Ankeny, Iowa. pp.607-614. Suwito, H. 1984. Pengaruh Pengelolaan Tanah dan Tanaman Terhadap Erosi dan Limpasan Permukaan di Daerah Aliran Waduk Karangkates. Thesis. Fakultas Pertanian Universitas Brawijaya. Maland. Table 4 page 14 of 16. Team Konservasi Tanah dan Air. 1980d. Pengaruh Mulsa Sisa Tanaman san Pengelolaan Tanan Terhadap Erosi. Sifat-sifat Tanah dan Petembuhan Tanaman pada Tanah Latosol di Citayam dan pada Tanah Podsolik. Di Pekalongan dan laporan Progres. Penelititan Konservasi Tanah dan air 1979/1980 Proyek Penelitan Tanah. Lembaga tanah. Bogor. Hal. IX.I -IX.13.v The World Bank. 1992. Viet Nam: Population, Health and Nutrition Sector Review. Report No. 10289-VN. The World Bank. 1993. Viet Narn: Energy Sector Investment and Policy Review. Report No. 19842-VN Utumo, T.W. 1986. Pengaruh Penutupan Mulsa Jcrami Padi Terhadap Sifat Fisik Tanah dan Pada Latosol Darmaga yang Ditanami Padi Gogo Selama Satu Musim Tanam. Tcsis Jurusan Tanah Fakultas Pertanian. Institut Pertanian Bogor. Bogor. Widajati. 1989. Kajian Pengaruh Sistem Pcnanaman dan Pemberian Mulsa Terhadap Aliran Pcrmukaan dan Erosi Pada Lahan Tegalnan Dacrah Hulu. Thesis Fakulatas Kehutanan. Univcrsitas Gaja Mada. Yogyakarta. - 103 - Annex 8 Page 1 of 31 VIET NAM ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES A SOCIALIST ECONOMY IN TRANSITION The Cost of Mangrove Destruction in Viet Nam A. Introduction 1. Coastal mangrove forests have increasingly disappeared during the past few decades in Viet Nam. During the last years, this historical trend has been accelerated by direct human pressure on the mangrove ecosystems and the impact of other development activities located in the coastal zone and its catchment area. Mangrove trees are cut by local people collecting firewood and poles for both domestic and commercial use. Shrimp farm development has 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 changes in the hydrological regime, pollution with agrochemicals and nutrients and water acidification. Water resources development and other up-stream activities, including urban and industrial pollution, can also change crucial parameters in the growth of mangrove forests. 2. This analysis focuses on two activities which rank among the main causes of the rapid destruction and degradation of mangrove ecosystems in Viet Nam. It illustrates in the forn of two case studies the impact of (a) the conversion of vast mangrove areas to shrimp ponds in Minh Hai province; and (b) the clearing of mangrove belts along sea dikes in central Viet Nam. After estimating the 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 magnitude of the costs connected to mangrove destruction. The goal of this analysis is, however, not only to estimate the costs of the un- economical management of mangrove ecosystems, but to provide a broad framework for the role of mangroves in coastal zone managemeht and indicate the value of mangrove forests of the very diverse products and services provided by mangrove forests. 3. Mangrove ecosystems have been destroyed and transformed in a rapid pace all over the world. This process is driven by the belief that mangrove forests are foul, ill smelling, insect-ridden and difficult zones and produce little economic value. However, the literature on mangrove management supports the hypothesis that mangrove ecosystems provide a variety of important products and services to humans. For instance, nutrient supply to coastal fisheries and the provision of spawning and feeding grounds for immature fish 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 settlements and agriculture. 4. As figure 1 illustrates, most of the services and products connected to mangrove ecosystems are off-site and/or non-marketed. The off-site character of very important mangrove services implies that very valuable benefits brought by investments into mangroves cannot be captured by the investor and are provided for "free" to others. The absence of market prices makes the quantification and economic valuation of the ummarketed products and services very difficult. 5. Although this analysis attempts to quantify and value some of the off-site and non-marketed goods and services provided by mangrove forests, it is not possible to capture all the benefits brought by mangrove preservation. For this reason, the numbers given for the value of mangrove ecosystems have to be considered as conservative estimates. The economic analysis is based on actual market prices and - 104- Annex 8 Page 2 of 31 wages in Viet Nam. For the calculation of 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: Relation Between Location and Type of Mangrove Goods and Services and Economic Analysis. Type Location of Goods and Services On-site Off-site Marketed Usually included in an economic analysis (e.g., May be included (e.g., fish or shellfish caught poles, charcoal, woodchips, mangrove crabs) in adjacent waters) Seldom included (e.g., medicinal uses of Usually ignored (e.g., nutrient flows to mangroves, domestic fuelwood, food in times estuaries, buffer to storm damage) Non-marketed of famine, nursery area for juvenile fish, feeding ground for estuarine fish and shrimp, viewing and studying wildlife) Source: Lawrence S. Hamilton and Samuel C. Snedaker, eds., Handbook for Mangrove Area Management (Honolulu: East-West Center, 1984), fig. 42, p. 110. B.Case Study I: The Impact of Uncontrolled Shrimp Farm Development in 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 mangroves in Viet Nam and is the area most beset by acid sulphate soil problems, illustrates the destructive human 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) describes a model for mangrove forestry management; (c) estimates the contribution of mangroves to coastal shore protection and fisheries; and (d) determines current land use patterns and alternative scenario implications for 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 management model which would not only be more economic in the longer term but would be environmentally sustainable. Intensive shrimp farming has played a minor role. Analysis also shows that the scope for implementing the proposed combined shrimp mangrove model has been drastically reduced with only 45,000 ha of mangrove forest left in 1993. Should Minh Hai continue along current trends, the province will incur further foregone benefits of US$ 249 million over the next ten years. ShrimD Farming and Forestry Models 7. ShrimD Farming Models (models A-E). Three different types of shrimp farming technologies are identified. While traditional extensive and semi-intensive management practices have long been practiced in Viet Nam, extensive shrimp farmers have only recently started to intensify their management regimes to the improved extensive model which is the model advocated for future development as it is both economically viable and preserves the mangrove ecosystem. Based upon field observations in Minh Hai, the different technologies are briefly described as follows: - 105 - Annex 8 Page 3 of 31 - Extensive Models (Models A and B, see tables I and 2): Ponds, which would usually be either 2-3 ha, or 10-20 ha are generally sited in coastal low-lying barren land close to mangroves with earthen dikes excavated from the swamp (no heavy earthworks) and some felling of mangrove trees to improve water circulation. These ponds are filled with brackish water at high tide, usually at the beginning of the dry season. Canal shrimps (and other forms of fishery) enter the ponds with the water and are permitted to grow. No feed is applied and harvest takes place about every two months. Average production is 150-200 kg/ha/yr or about 30-60 kg/ha/crop. Yields deteriorate sharply within four years depending on the build up of soil acidity. Acidification takes place 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 mangrove forests in surrounding areas are cleared, the extensive system, in any case, becomes unsustainable as the nursing grounds for shrimp progressively decline." Under pressure to be more "semi- intensive," shrimp farmers who can afford it (very few) began to buy cultured shrimp larvae (produced in Nha Trang, Central Region) and a number began supplementary feeding. The situation did not improve because of the poor viability of the purchased larvae compared to collected wildstock and the increasing effects of pollution on the system These factors cannot be easily mitigated without further investment (improved pumping and drainage). Finally as greater acidification sets in, the system collapsed and farmners had to abandon their ponds pursuing less remunerative activities. From the above, two extensive models are presented. The first, corresponding to low-input management, yields are low with 150 kg of shrimp and 200 kg of fish per year in 4-7 crops , but pond construction and resource conditions are favorable (model A). The second, approximately 30% of extensive shrimp farming is not sustainable and abandoned after 4 years due to inappropriate pond construction (problems with water exchange) and water acidification caused by the excavation of acid sulphate soils for dikes (model B). The shrimp cultured in the extensive model (P. merguensis) receives a low price on the market (US$ 1.50/kg). Farmers complement their on-farm income with fish and shellfish (200 kg equivalent per hectare) caught in adjacent waters which is sold for an average price of US$ 1.00/kg. - Semi-intensive Models (Models C 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 exchange is regulated by permanent pumping and water has to be treated. More and better qualified personnel is.needed for pumping, quality control, feeding, predator control 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 extensive model. However, experience in Viet Nam has shown that half of semi-intensive shrimp farming is abandoned after 4 years (model D) and the other half after 8 years (model C) due to management problems, the occurrence of acid sulphate soils and pollution problems. - Improved Extensive Model (Model E, see table 5): This model is hardly practiced but represents a viable alternative to the present traditional extensive ("shifting aquaculture") model. It would focus on improving the present extensive system. The typical farmers would have a 10-20 ha plot in barren lands or mangrove areas. Dikes may be relocated and built in well-selected zones that take advantage of the natural topography. The farmer would build a wooden gate and clear limited areas of mangrove for a channel to improve water exchange; but would also replant mangroves to protect the dike against erosion. Watering would be done after preparing the soil and destroying the existing predators (sun 1/ Overall for the Mekong Delta average yield of shrimp cultured declined from 297 kg/ha in 1986 to 153 kg/ha in 1988. - 106 Annex 8 Page 4 of 31 drying and use of Rotenone, Saponine, Tea Seed Cake of Deris root extract, including fine mesh to be placed in the gate grid for preventing predators entrance). Fry of highly commercial species such as P. monodon would be introduced at a rate of 5,000 to 8,000 larvae/ha complimentary with the natural seedlings from the local estuaries during the watering operation. Fertilization with animal manure and or chemical fertilizers would also be required. Water quality (plankton density) is controlled regularly (with a secchi disc) and some fertilizers may be added when necessary. From the 90th day to the 120th day, some feeding is done to complement any deficiency in the natural production of plankton. Feed could consist of a mixture of trash fish and rice bran and some concentrate (fresh protein plus vitamins and minerals). Harvesting at the 110th to 130th day could give 250 to 300 kg per crop of highly commercial shrimps of medium to large sizes. (With the possibility of 2 crops/year, annual yields of 500-600 kg is feasible.) Although higher cost than the extensive model, this technology would have the advantage of a low investment ranging from US$ 500-600/ha (substantially lower than the semi-intensive models), low input, limited eutrophication, good returns, and it utilizes an approach which is recognized and replicable to traditional farmers. The shrimp output (P. monodon and P. merguensis) receives a good price in the market (USS 3.00/kg). Intermediate to improved-extensive and the semi-intensive models is the Intearated Shrimp-Mangrove- Management Model, as exemplified by the system practiced by the Tam Giang Forest Enterprise, but with improvements in the shrimp pond:forest (or reforested) area ratio. Presently mangrove forests are retained or replanted on 50 percent of the land with the remainder to be devoted to shrimp feeding. The areas retained as mangrove forests need to be expanded through reforestation and should be exploited in a long term sustainable system in the 50-100 ha blocks that have already been allocated. The State- enterprise develops the channels on about 10-15 percent of the area and provides for reforestation (if necessary) of the remaining parts of the block. Families are then allowed to 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 canopy stage is reached. Thereafter, the families will be responsible for the management and protection of the forest. Some 2,000 ha are presently being worked under this system in the Tam Giang Forest Enterprise. Total investments for shrimp breeding amount to US$410-450/ha, average yields are 150-200 kg/ha/yr. This is not modelled here as a proper evaluation of cost and returns has yet to be undertaken. 8. Mangrove Forestry Model (Model F. see table 6). This model is based on field data for mangrove forestry on a mean annual increment basis. The existing stands are cut every eight years with an average output of 10 steres3' of poles, which sell for US$ 10, and of 5 steres of firewood (US$ 5). Cutting fees amount to US$ 30/ha. 9. The Costs of Increased Shore Erosion. During the period 1984-1993, coastal mangrove deforestation is estimated to contribute 15 meters/year to coastal abrasion along the eastern coast of Minh Hai province'. With a shore length of approximately 200 km, coastal erosion results in an annual loss of 300 ha of productive land. Since no land prices exist in Viet Nam, the value of lost land is estimated at US$ 2,000 per hectare which corresponds closely to the Net Present Value of one hectare in the sustainable extensive shrimp farming model (model A). This results in a potential annual benefit of 2V See Mekong Delta Master Plan, nnematic Study on Environmental Impacts, Volume 1, November 1992. 3/ 1 stere = 0.65 m' 41 This observation is reported in the Mekong Delta Master Plan, Thematic Study on Environmental Impacts, Vol. I: p. 19. -107- Annex 8 Page 5 of 31 mangrove conservation of US$ 600,000 during the period 1984-1993. Thereafter, preserving mangroves is assumed to result in an annual benefit of US$ 150,000 due to the small size of the remaining mangroves. 10. Contribution to Local Fisheries. Minh Hai coastal fisheries are assumed to catch 60% of the natural aquatic biomass found in coastal waters around mangrove forests (300 kg fish and shellfish per hectare of mangrove forest). After mangrove destruction, natural productivity is assumed to decline by 60% leading to a loss in annual catches of 180 kg fish per hectare of cleared mangrove. With an average market price of US$ 1/kg for fish and shellfish, this results in an annual loss of US$ 180 per hectare mangrove destroyed. This estimate is in line with figures obtained for the value lost from defoliation of the Cau Mau Peninsula (derived from Hong) during the Second Indochina War (see Annex 4 para. 22). Current Land Use and Alternative Development Scenarios 11. Current Land Use (see table 7.1). Based on Maraund (1943), the original area covered by mangrove wetlands in Minh Hai province is estimated to have been 218,500 ha (equivalent to 50% of total forest area). Since most reclamation operations of wetlands for agricultural production primarily has converted inland marshes (melaleuca forests) but not mangrove wetlands, the total mangrove wetland area can be assumed to have been 200,000 ha in 1985. For 1985, the year when shrimp farm development became significant for Minh Hai's development (i.e., it exceeded 20,000 ha), a baseline scenario for the situation of mangrove forests can be constructed, based on data published by FIPI and GDLM (1985). Assuming a ratio of mangrove to back mangrove forests (melaleuca) of 5:3, Minh Hai had 110,000 ha of mangrove forests, 10,000 ha of shrimp farming area and 80,000 ha of barren lands in 1985. The baseline scenario for changes in land use for the period 1985-1993 is developed using numbers provided by Southern FIPI and the Provincial Forestry and Fishery Services of Minh Hai for 1988, 1992 and 1993. 12. For the years 1994-2003, current trends are assumed to continue until major abandonment of extensive shrimp farming sets in due to pollution and management problems caused by the destruction of the supporting mangrove forests, acidification of ponds and over-crowding. During this period, an increasing number of farmers experience declining yields resulting in low incomes and even losses before they drop out of business. Abandonment already sets in 1991, three years after the overall shrimp farming area equalled the area covered by mangrove forests5e. Our extrapolation through 1999 indicates that abandonment will continuously increase leaving only 23,300 ha of shrimp farms which be matched by an approximately equal amount of remaining mangrove forests (22,000 ha). 13. Alternative Development Scenarios (see tables 8 and 9). In order to assess the economic impact of mangrove conversion two alternative scenarios for coastal zone management in Minh Hai are developed in tables 8 and 9. Both development scenarios are based on integrated mangrove-shrimp culture (see model E) which requires a ratio of 80% mangrove area to 20% shrimp pond area to be environmentally sustainable. The first scenario (table 8) is based on the assumption that model E had been practiced from 1984. It assesses the costs incurred under current trends by not adopting the appropriate model. The second scenario (table 9) assumes a drastic change in current trends by switching to the appropriate integrated model in 1994. In this scenario, the area on which shrimp culture can be practiced is limited by the small size of remaining mangrove forests (45,000 ha). 5/ In the context of this analysis, abandonment for the small farmer situation does not mean moving out of the farm: it means that the original productive activity (shrimp culture) has effectively ceased. For example, the fanner might continue to keep ducks in ponds. - 108- Annex 8 Page 6 of 31 The Overall Cost of Uncontrolled Mangrove Conversion in Minh Hai Province 14. To estimate the value of protecting mangroves in Minh Hai province, the net benefits of both the scenario based on the actual development as well as the scenario assuming rational mangrove utilization (i.e. adoption of the environmentally sustainable model E) are calculated (see tables 7.3, 8.2 and 9.2). In addition to overall net benefits of each development model, net benefits attributable to different mangrove services and products (shore protection, support of local fisheries, wood and shrimp production) are given. Fish caught by shrimp farmners around their ponds which were included in the extensive shrimp farming models as other outputs (see para. 7 - extensive model) are considered separately (see columns on fisheries values in tables 7-9) to make this important mangrove service more explicit. 15. For the period 1984-1993 (see table 7.3), actual development resulted in net benefits of US$ 116 million (NPV in 1994 dollars). However, if Minh Hai had followed the alternative, more appropriate development path (see table 8.2) it could have generated net benefits of US$ 256 million (NPV in 1994 dollars). The opportunity cost foregone would , therefore, have been US$ 140 million. For the following period 1994-2003, continuing current trends (see table 7.3) are estimated to result in net benefits of US$ 39 million (NPV in 1994 dollars) which are far outweighed by the US$ 288 million (NPV in 1994 dollars) obtained from switching to the alternative sustainable development model (see table 8.2). 16. In summary, the costs incurred by the un-economical use of mangrove ecosystems in Minh Hai province result from the difference in net benefits between the model based on current trends and the alternative scenario. For the period 1984-1993, uncontrolled shrimp farming has already resulted in the "loss" (or foregone benefits) of US$ 140 million (NPV in 1994 dollars). This trend will continue until 2003 if the Minh Hai aquaculture sector does not take any drastic measures to switch to more sustainable management for the coastal zone. The costs (or foregone benefits) of continuing along current trends are estimated to sum up to another US$ 288 minus US$ 39 or US$ 249 million (NPV in 1994 dollars) through the year 2003. C. Case Study II: Mangroves for Sea Dike Protection In Central Vietnam 17. Although mangrove forests are not abundant in central Viet Nam they fulfill a very important role in the protection of sea dikes, prevention of coastal abrasion, as buffers against typhoons, as wood reserves and as fishery habitats. This section attempts to illustrate the value of mangrove belts along sea dikes by providing rough estimates for some of the benefits of preserving mangroves: the supply of poles and fire wood, the support of local fisheries and reduced maintenance costs of sea dikes (see table 10). The calculations are done for the case of new mangrove plantings. The Model 18. Mangrove Forestry. Due to their protective function, mangrove forests are managed in a more conservative way than production plantations. For the purpose of this analysis, it is assumed that mangroves are managed on a 30 year rotation cycle with initial high planting density and selective thinning operations after 9 and 22 years. Output levels reach 20 steres of fire wood at the first thinning, 20 steres of poles and 50 steres of firewood at the second thinning and 40 steres of poles and 100 steres at the final cut. Poles are sold for US$ 10/stere, fire wood has a value of US$ 5/stere. 19. Contribution to Local Fisheries. Four years after establishment, mangroves already provide a habitat for surrounding fisheries, including species with a high economic value such as the mangrove crab (Scylla). With increasing mangrove density, fish and shellfish output reaches 50kg a year from year 10 onward and is sold for an average price of US$ 1.00/kg. 109 Annex 8 Page 7 of 31 20. Saved Costs of Dike Maintenance. Average annual dike repair costs are 314,350 person- days in Viet Name' for 100 km of sea dikes. Assuming that protective mangrove belts allow savings of 20% of annual repair costs, annual savings from preserving/ planting mangroves along sea dikes amount to US$ 62,870 at an average wage of US$ 1 per person-day. The Cost of Clearing Protective Mangrove Belts alon,e Sea Dikes: 21. The value of preserving mangroves along sea dikes in central Viet Nam is calculated in Table 10 Analysis reveals the important role of mangrove for sea dike protection which is complemented by the support of local fisheries and the production of wood. For 100 kmn of sea dikes corresponding to 500 ha of mangroves, protective mangrove belts generate economic value of US$ 533,000 (NPV) calculated over a thirty year period. D. An Extrapolation: The Estimated Cost of Mangrove Destruction in Viet Nam 22. This section provides an estimate of the costs incurred in Viet Nam by the un-economical use of mangrove ecosystems. It extrapolates the costs of mangrove destruction found in above analysis for uncontrolled shrimp farm development in Minh Hai province and for the absence of protective mangrove belts along sea dikes in central Viet Nam. However, it is important to emphasize that the results of this section should be interpreted on a rough order of magnitude basis, as this analysis only captures a few causes (and consequences) of mangrove destruction and has had to rely on field extrapolations and the judgement of local experts in the absence of comprehensive reliable empirical data. 23. Shrimp Farm DeveloDment. By 1993, only 38% of the mangrove forests which had existed in Minh Hai province 10 years ago had remained intact from the onslaught of shrimp pond development. Assuming that this ratio applies to mangrove wetlands in the whole Mekorng Delta, in the Red River Delta and the North-East, shrimp farm development has led to the destruction of some 148,000 ha of mangrove forests in Viet Nam during the last decade. This implies a economic loss of US$ 277 million (NPV in 1984 dollars) over the last ten years with Minh hai accounting for about US$ 140 million. Even if the loss is attributed to only half of the non-Mekong Delta mangrove areas because their problem soils are much less, the total economic loss of US$ 209 million is still considerable. 24. ManRrove Belts Along Sea Dikes: It is assumed that 860 km out of an estimated 2,000 km of sea dikes in central Viet Nam either possess protective mangrove belts or are suitable locations for mangrove plantations'. If human pressure has removed or prevented mangroves at half of these sea dikes, the costs incurred due to increased sea dike maintenance costs and the absence of wood supply and fish would amount to USS 1.7 million (NPV in 1984 dollars) for central Viet Nam. 25. Adding the costs of mangrove destruction as found in the previous sections, the un- economical use of mangrove ecosystems in Viet Nam can be estimated to have accumulated costs amounting to US$ 279 million over the last 10 years. - 6/ World Food Programme, Appraisal of Project Viet Nam 4617 'Rehabilitation and Upgrading of Sea Dikes." 7/ This assumption is based on the WFP 4617 report which states that in the Northern Central provinces l,l OO km of sea dikes exist and out of 454 km which need to be rehabilitated only 195 km are suitable for prolective mangrove planuations. Model A: Extensive Shrimp Farming (Sustainable) - Basic Data Source: Serene, basic model 11 Basic data: Remarks: Land allocation for ponds (hectares): 4 Investment Costs (per hectare): Total: $370 soil preparation: $70 low, small dikes (1 .5 m3/ m length); low pond water level canal construction: $250 gate: $20 wooden sluice gate equipment: $30 includes small boat and casting net Operating Costs (per hectare): Total: . $169 labor: $139 guard: $63 250 persondays @ $1 .00/day (4 ha) feeding: $0 harvesting: $16 7 harvests of 6 persondays @ $1.50/day (4 ha) maintenance: $60 1 0% of investment purchase charges: $30 fries: $0 natural stocking feed: $0 machine hire, fuel: $25 water exchange at 50% every 1 5 days other inputs (pestic.,etc.): $5 Output (kg per hectare): shrimp: 150 average yield in Minh Hai (Fishery Dept) fish: 200 (7 crops) Other output (kg per hectare equivalent): 200 fisheries harvest outside holding; no over-exploitation assumed Output prices (per kg): shrimp (P. merguensis): $1.50 prices (in USS) are assumed to be constant ___________________________________ fish: $0.20 other: $1.00 Discount Rate: _ 10% Investment Life: soil and canal works: 11 years _ Igates and equipment: 5/6 years ____ O ID W w. ooD Model A: Extensive Shrimp Farming (Sustainable)- NPV and IRR Analyses ________-_______ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 20 21 22 Investment Costs: Soil preparation: 280 280 Canal construction: 1000 1000 Gate: 80_ 80 80_ _ _ 8 Instruments: 120 120 120 Operating Costs: I I I Labor: 556 556 556 556 556 556 556 556 556 556 556 556 556 556 556 556 556 556 556 Purchase charges: 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 Subtotel: 676 676 676 676 676 876 676 676 676 676 676 2156 676 676 676 676 676 676 676 Output: Shrimp: o900 900 900 900 900 900 900 900 900 900 900 900 900 9900 900 900 900 900 900 Fishes: 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 Other: 800 800 800 800 800 B00 B00 800 800 800 800 800 800 800 800 800 800 800 800 Subtotal: 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 1860 Balance l: -1480 1184 1184 1184 1184 1184 984 1184 1184 1184 1184 1184 -296 1184 1184 1184 1184 1184 1184 1184 Balance 11 lother output excluded): -1480 384 384 384 384 384 184 384 384 384 384 384 -1096 384 384 384 384 384 384 384 Balance I (NPV:, _ S 8.28 1 Balance II (NPVB: $1,264.23 __ __ IRR 1(22 years): 80% IRR 11122 yrs.l: 23% = = ===_ aq 0 Wn I-' _ 9 co Model B: Extensive Shrimp Framing (Unsustainable) - Basic Data Source: Serene, basic model 11 _ Basic data: _ Remarks: Land allocation for ponds (hectares): 4 _ _ _- Investment costs (per hectare): Total: $370 soil preparation: $70 low, small dikes (1.5 m3/m length); low pond canal construction: $250 water, level gate: $20 wooden sluice gate equipment: $30 includes small boat and casting net Operating costs (per hectare): Total: $169 _ labor: ' S139_ . a____________________guard: S63 250 persondays @ $1.00/day (4 hal _ ~~~~~feeding: _ S _________________________________ :harvesting: $16 7 harv. of 6 persondays @ $1.50/day (4 hal maintenance: $60 10% of investment purchase charges: _S30X fries: SO natural stocking feed: $0 ' _ _ machine hire, fuel: $25 water exchange at 50% every 15 days other inputs (pestic., etc.): $5 _ _ Output (kg per hectare): year 1: year 2: year 3: year 4: shrimp: 80 150 80 50 decline due to acidification of site fish: 200 150 100 100 and inappropriate pond construction Other output (kg per hectare equivalent): 200 200 200 200 fisheries harvest outside holding; no over- ,______ ______ _______ ______ ______ ________________ _____exploitation assumed Output prices (per kg): shrimp (P. merguensisl: $1.50 prices (in US$) are assumed fish: $0.20 to be constant other: $1.00 a) Discount Rate: _ 10% Q _ X Life Cycle: 4 years _ _ _____ o X0x t4.C Model B: Extensive Slrimp Famiing (Unsuslaintible) - NPV and IRR Analysis - 1 2 3 4 Investment Costs: Soil preparation: 280 Canal construction: 1000 ___ _____ _ Gate: 80 Instruments: 120 OperatinG Costs: Labor: 556 556 556 556 Purchase charges: 120 120 120 120 Subtotal: 676 676 676 676 Output: -_ _ =_= Shrimp: 480 900 480 300 Fishes: 160 120 80 80 Other: 800 Boo Boo 800 Subtotal: 1440 1820 1360 1180 I Balance 1: _ -1480 764 1144 684 504w Balance 11 (other output excluded): -1480 -36 344 -116 -296 Balance I (NPV): *1018 Balanca 11 INPV1: ($1.518) IRR 1 14 yrs\: 41% ________ . _ _____________ _i _ h<> 0 Er IX Model C: Semi-Intensive Shrimp Farming (Abandoned after 8 yrs.J - Basic Data Basic data: _ _ Remarks: Land allocation Iliectares): 2 4 ponds with 2 lia water surface Investment Costs (per hectare): Total: $2,500 ________ soil preparation: $560 high dikes for hiigh pond water level 11-1.2 ml dike and canal construction: $1,100 _____________________________ gate: $200 sluice gales from brick or concrete equipment: $640 includes pump, housing, boats Operating Costs (per lhectare): Total: $1,249 labor: $399 guard: guard is included into labor charges for feeding feeding: $250 500 persondays @ $1.00/day (2 ha) harvesting: $24 _ 2 harv. of 16 persondays @ $1.50/day (2 hal maintenance: $125 5% of investment purchase clharges: $750 _ fries: $400 20, 000 fries/ha per harvest @ $S10/1 000 fries feed: $250 5 kg trash fish/kg shrimp @ $50/ton 11 ton of shrimp) pump repair, fuel,etc.: $50 I_ water exchange at 5-10% per day _ other inputs /pestic., etc.): $50 lime, fertilizer _ administration/ management: $100 Output (kg per hectare): year 1-2: year 3-4: year 5-6: year 7: year 8: shrimp: 600 1200 1000 800 500 fish: O _ O O O_O - l~~~~~~~~~~~~~~~~~~~~~~~~2 crops) Output prices (per kg):- shrimp (P. monodon): $3.00 prices (in US$) are assumed to be constant fish: $0.30 Discount Rate: 10% Life cycle: 8 years OQ 0 (s3 o: Semi-Intensive Slhrimp Farming (Abandoned after 8 yrs.) - NPV and IRR Analysis I I 2 3 4 5 6 7 8 Investment Costs: Soil preparation: 1120 _. Canal construction: 2200 Gate: 400 400 Instiuments: 1280_ 1280 Operating Costs: Labor: 798 798 798 798 798 798 798 798 Purchase charges: 1500 1500 1500 1500 1500 1500 1500 1500 Adrrinisiration: 200 200 200 200 200 200 200 200 Subtotal: 2498 2498 2498 2498 2498 4178 2498 2498 Output: Shrimpr 3600 3600 7200 7200 6000 6000 4800 3000 Fishes: 0 0 0 0 0 0 0 0 Subtotal: 3600 3600 7200 7200 6000 6000 4800 3000 Balance: -5000 1102 1102 4702 4702 3502 1822 2302 502 1n Balance (NPVI: 18.275 IRR l6 yars): - - 43% ID m > W X .t D Model D: Semi-Intensive Shrimp Farming (Abandoned after 4 yrs.) - Basic Data Basic data: _ Remarks: Land allocation (hectares): 2 4 ponds with 2 ha water surface Investment Costs (per hectare): Total: $2,500 _ soil preparation: $560 high dikes for higih pond water level (1-1.2 m) _ canal construction: $1,100 gate: $200 sluice gates from brick or concrete ___________ equipment: $640 includes pump, housing, boats Operating Costs (per bectare): Total: $1,249 labor: $399 guard: guard is included into labor charges for feeding feeding: $250 500 persondays @ $1.00/day (2 ha) _harvesting: $24 2 harv. of 16 persondays @ $1.50/day (2 hal maintenance: $125 . 5% of investment purchase charges: $750 . fries: $400 20,000 fries/ha per liarvest @ $10/1,000 fries feed: $250 5 kg trash fish/kg shrimp @ $50/ton 11 ton of shrimp) pump repair, fuel, etc.: $50 water exchange at 5-10% per day other inputs (pestic., etc.): $50 lime, fertilizer administration/ management: $100 _ _ Output (kg per hectare): ear 1: year 2: year 3: year 4: shrimp: 500 1,000 800 500 decline in output due to management problems, poor fish: 0 0 0 0 acid sulphate soils and pollution problems (2 crops) Output prices (per kgi): shrimp (P. monodonls $3.00 prices (in US$) are assumed to be constant fish: $0.30 Discount Rate: 10% Life Cycle: 4 years _ -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' * Ir 0 4 I- '.9 ( Model D: Semi-intensive Shrimp Farming |Abandoned after 4 years) - NPV and IRR Analysis 1 2 3 4 Investnient Costa: Soil preparftion: 1120 Canal construction: 2200 Gate: 400 Instruments: 1280 _ _ = Operating Costs: Labor: 798 798 798 798 Purchase charges: 1500 1500 1500 1500 Adrnristration: 200 200 200 200 Subtotal: 2498 2;498 2498 2498 Output: Shrimp: 3000 6000 4800 3000 Fishes: 0 0 0 0 Subtotal: 3000 6000 4800 3000 Balance: .5000 502 3502 2302 502 _ .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. Balance (NPVI $423__ IRR (4 yrsl: 14% , _ 1 p Ft'. tD 0 X C w 00 Model E: Improved Extensive Shrimp Farming - Basic Data Source: Being implemented in Duyen I lai (H-ICMC) and Ngoc Hieni and Tarn Giaig in Minhi iai province Basic data: Remarks: Land allocation (hectares1: 10 2 ponds with 10 ha water surfacc Investment Costs (per hectare): Total: $800 soil preparation: $150 canal construction: $450 .. gate: $100 2 wooden sluice gates equipment: $100 Operating Costs (per hectarel: Total: -$412 labor: $137 ____________________________guard: 2 guards are included into labor charges for feeding feeding: $50 500 persondays @ $ 1.00/day harvesting: S7 2 harv. of 24 persondays @ $1.50/day (10 ha) maintenance: $80 10% of investnment purchase clharges: $275 fries: $50 5.000 friesAia @ $10/1,000 fries feed: $125 5 kg/kg shrimp $ $50ltoii (2.5 tons per lhectarel pump hire, fuel, etc.: $50 oo otller inputs Ipestic., etc.) $50 4 administration/ management; $0 Output (kg per hectarel: shrimp: 550 fish: 0 Outptit prices (per kg): sshrimp: $3.00 prices (in US$) are assumed to be constant fish: $0.30 Discount Rate: 10% investment Cycle: _____________ soil and canal works: 11 years ___ gate and equipment: 5/6 years oa,__ o x tm oo Model E: Improved Extensive Shrimp Farmind - NPV and IRR Analysis I _____________ 1 2 3 4 5 0 7 0 9 10 11 12 13 14 15 10 17 _a 19 20 21 Investmelnt Costs: Soil preparation: 1500 1500 Canial construction: 4500 4500 Gate: 1000 1000 1000 1000 Instruments: 1000 1000 _ 1000 1000 Operating Costs: tabor: 1370 1370 1370 1370 1370 1370 1370 1370 1370 13/0 1370 1370 1370 1370 1370 1370 1370 1370 1370 1370 1370 r'urchase cliaiges: 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2750 2 750 2750 2750 Subtotal: 4120 4120 4120 4120 4120 0120 4120 4120 4 120 4120 4120 12120 4120 4120 4120 4120 6120 4120 4120 4120 4120 Outptut: I __.__ _ Shrinmp: 1G500 10500 16500 10500 105001 o 10500 1G500 10G500 10500 1000 10500 10500 0 500 10500 I t1500 16500 10500 1G500 10500 10500 I ishies: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Subtotal: 10500 10500 1 ns1O 10500 10500 10500 10500 10500 16500 10500 10500 10500 10500 10500 10500 10500 10500 1500 10500 10500 10500 nalarnce: *n000 12300 12300 12300 12380 12300 10300 12300 12300 12380 12300 12300 4380 12300 12380 12380 12380 10380 123uo 12380 12380 12380 Ilalance INP'V): I______ 600.5- 10 __ __ _ __ ___ XX inn: l_b 08 o to1 - I Model F: Mangrove Forestry on Mean Annual Increment Basis Source: Serene (fased on Duyen Hai, l-ICMC Province) . ._ . _._._ . 13asic data: rcmarks: Land allocation (hectares): _ 120 harvesting follows a 8 year cycle 114 la cut per year) Operating Costs Iper hectarei: cutting fees: S30 Output Istere per hectare): poles: 10 yield estimates are very conservative fire wood: 5 Output prices (per sterel: _ poles: $10 prices (in US$) are assumed to be constant fire wood: $5 Oiscotint Rate: 10% l~~~~~~~~~~~~~~~~ CD OQ ovo O (D :j Cax 0w X Model F: Mangrove Forestry on Moan Annual Increment 13asis area: 120hactar.s I 2 3 4 5 6 7 8 9 l0 I11 12 _3 i 15 16 1 7 8 19 20 21 22 tOpueating Costs: I ctiting fuas: 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 Sub-toinl: 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 450 Wood atUS$ 10/sI. 1500 I1500 1500 1500 I S00 1500 1500 1500 1500- 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 Wood ar US5 5/sie 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 375 Sililgotal: 1875 1875 1875 1875 1875 1875 1875 1875 1875 1075 1875 1875 1875 1875 1875 1875 1875 1875 1875 1875 1875 1875 Balance: 1425 1425 1426 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 1425 Balance INPVI- $ 12.499 Balance (NPVI the: $104…= 82 t co o n2 Fh .- Mangrove Wetlands in Minh Hai - Area Performance and Continuing Trends for 1984 - 2003 (Scenario l) angrove MArea of Barren Wetlands Mangrove Forest (1,000 Area of Shrimp Farming (1.000 ha) Lands (1.000 ha) a (1,000 ha) year Total Replanting Total Extens. Semi-int. Development Abandonment annual total total extens. Semi-in annual cumul. total original 1984 annual cumul. annual annual 1984 200/a 110.0 0.8/a 10.8 10.8 0.0/a 10.8 10.8 10.8 0.0 0.0 0.0 79.2 79.2 1985 200/a 100.0/a 1.3/a 20.0/a 22.1 0.0/a 11.3 22.1 11.3 0.0 0.0 0.0 77.9/a 77.9 1986 200/a 90.0 1.1 /a 33.2 33.2 0.0/a 11.1 33.2 11.1 0.0 0.0 0.0 76.8 76.8 1987 200/a 75.0 1.1/a 49.3 49.3 0.0/a 16.1 49.3 16.1 0.0 0.0 0.0 75.7 75.7 1988 200/a 60.0/a 0.9/a 61.6/a 62.0 0.0/a 15.9 65.2 15.9 0.0 3.2 3.2 78.0/a 74.8 1989 200/a 60.0 0.5/a 74.1 74.1 0.0/a 15.5 80.7 15.5 0.0 3.4 6.6 65.9 59.3 1990 200/a 55.0 2.9/a 88.6 88.5 0.1 /a 17.9 98.6 17.8 0.1 3.3 10.0 56.4 46.4 1991 200/a 55.0 0.0/a 96.6 96.4 0.2/a 15.0 113.6 14.9 0.1 7.0 17.0 48.4 31.4 1992 1/ 200/a 2/ 50.0/a 2.9/a 106.5/a 106.0 0.5/a 17.9 131.5 17.6 0.3 8.0 25.0 43.5 18.5 1993 200/a 45.0 1.5 119.0/a 118.0 1.0 21.5 153.0 21.0 0.5 9.0 34.0 36.0 7.0 1994 200/a 30.0 1.5 125.5 124.0 1.5 16.5 169.5 16.0 0.6 10.0 44.0 44.5 7.0 1995 200/a 20.0 1.5 122.0 120.0 2.0 11.5 181.0 10.5 0.6 15.0 59.0 58.0 7.0 1996 200/a 20.0 1.0 103.3 100.3 3.0 1.3 182.3 0.0 1.3 20.0 79.0 75.7 7.0 1997 200/a 21.0 1.0 83.3 81.3 2.0 0.0 182.3 0.0 0.0 20.0 99.0 95.7 7.0 1998 200/a 21.5 0.5 53.3 52.3 1.0 0.0 182.3 0.0 0.0 30.0 129.0 125.2 7.0 1999 200/a 22.0 0.5 23.3 22.3 1.0 0.0 182.3 0.0 0.0 30.0 159.0 154.7 7.0 2000 200/a 22.0 0.0 23.3 22.3 1.0 0.0 182.3 0.0 0.0 0.0 159.0 154.7 7.0 2001 200/a 22.0 0.0 23.3 22.3 1.0 0.0 182.3 0.0 0.0 0.0 159.0 154.7 7.0 2002 200/a 22.0 0.0 23.3 22.3 1.0 0.0 182.3 0.0 0.0 0.0 159.0 154.7 7.0 2003 200/a 22.0 0.0 23.3 22.3 1.0 0.0 182.3 o.0 0.0 0.0 159.0 154.7 7.0 1/ Back Mangrove Wetlands is probably another 100,000 2/ Back Mangroves is an addition 25,000 ha Remark: All numbers are given in 1,000 ha. Numbers marked with "/a" are based on 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: Source: Assumptions: Total Wetlands (originalIlV: 437 Maurand 1943 1 Mangrove: __218.5 1) ratio of mangrove to back mangrove land is I 1/ Back Mangrove: 218.5 Baseline (1985): Mangrove wetlands: total: 200 2) most land reclamation on original back manigrove lands ( estimate from WPNoS (pp. 23-24)) |__ I forested: 100 FIPI 3) ratio of mangrove to back mangrove forests is equal to 5/3 _________ _( . jratio taken from FIPtI quoted by Prov. Forest Serv.; barren: 80 GDLM 1985 __ I shrimp farming: 20 GDLM 1985 4) all aquaculture is shrimp farning Back mangrove wetlands: 110 l l forested: 60 FIPI see 3) barren: 50 GDLM 1985 Reclaimed land: 127 see 2) Mangrove wetlands 1988: total: 200 forested: 60 Southern FIPI shrimp farming: 60 Prv. Fish. Serv. barren: 80 Mangrove wetlands 1992: total: 200 = _ =- forested: 50 Prv. For. Serv. shrimp farming: 100 Prv. For. Serv. s0 from Prov. Fish. Serv.. 20 from forest enterprise barren: 50 l Shrimp farming area 1993: 119 Prv. For. Serv. Replanting activities: isee table) 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 abandoned after 3 years due to management problems. 50% after 6 years e 31 Beginning 1991. 3 years alter the year in which shrimp form area equalled the remaining mangrove forest area, crowding effects load to n slight increase rs c in abandonment. Abandonnment rates increase gradually until 1999. when most of the shrimp farms have given up shrimp production. 0 41 The only significant cause of mangrove deforestation is shrimp farm development. -t oo t- J 00 Mangrove Wetlands in Minh Hai - Imputed Value Performance and Continuing Trends (1984-2003) Forestry Fisheries Total (US| Foetr) Shrimp Farming (USS 1,000) (USS 1,000) (USS 1,000) Total Extensive Intensive year 1984 1,320 3,521 3,521 0 19,800 24,641 1985 1,200 4,688 4,688 0 18,000 23,888 1986 1,080 5,301 5,301 0 16,200 22,581 1987 900 7,428 7,428 0 13,500 21,828 _1988 720 8,564 8,564 0 10,800 20,084 1989 720 -220 -220 0 10,800 11,300 1990 660 3,464 3,614 -150 9,900 14,024 1991 660 2,085 2,120 -35 9,900 12,645 1992 600 3,051 3,210 -160 9,000 12,651 1993 540 2,522 2,621 -99 8,100 11,162 1994 360 2,644 2,150 494 5,400 8,404 1995 240 2,833 1,700 1,133 3,600 6,673 1996 240 2,008 1,250 758 3,600 5,848 1997 252 2,650 800 1,850 3,780 6,682 1998 258 601 350 251 3,870 4,729 1999 264 17 17 0 3,960 4,241 2000 264 2,007 2,007 0 3,960 6,231 2001 264 2,007 2,007 0 3,960 6,231 2002 264 2,007 2,007 0 3,960 6,231 2003 264 2,007 2,007 0 3,960 6,231 NPV (1984-2003): 6,220 30,983 29,881 1,102 93,307 130,510 NPV (1984-1993): 5,581 26,342 26,541 -199 83,709 115,631 NPV (1994-2003): 1,660 12,037 8,663 3,374 24,895 38,592 Remark: The extensive shrimp farming column does not include other outputs which are included in the X extensive shrimp farming models A and B. Instead, the impact of mangrove deforestation on surrounding , 4 fisheries is captured by the column on fisheries to make this impact more explicit. 0 ,- rD Mangrove Wetlands in Minh Hai - Contintiition of Table 7.3 Explanations: Forestry Model (Mean Annual Increment Basis, profits per hecta e) Eannual rev.: $12 I Extensive Shrimp Farming (profits per hectare) From wood sustainable: -unsustainable: remarks: year 1: cutting g I st year: $326 year 1: 1984-7, 95-9 $326 $600 $96 ($9) from shrimp farming 1988, 94: $126 $400 $0-600 $0-600 from wood cutting 1990, 92-93: ($74) $200 1$370) ($370) investment cost 1989, 91: ($274) $0 year 2-5: $96 year 2: $86 lexpl.: In the first year, profits froin shrimp farming year 6, 1 7: $46 year 3: ($291 depends on the amount of wood cut and sold year 7-1 1, 13- $96 year 4: ($74) during constru tion year 12: ($274) _ Intensive Shrimp Farming (profits per h ctare): . _ 6 yrs. c cle:: 3 yrs. cycle: remarks: _ l st year: 1$1,3491 1st year: ($1,649) total $551 $251 from shrimp farming _ $600 $600 from wood cutting I ($2,500) ($2,500) investment cost year 2: $551 year 2: $1,751 year 3-4: $2,351 year 3: $1,151 year 5: $1,751 year 4: $251 year 6: $911 year 7: $1,151 _ year 8: $251 ; Crowding effect (for extensive): yield reduction 50% revenue: ($9) 3-2 yrs. before aband. __ 25% ($74) 1 yr. before aband. _ _ _ ____ Contribution to Fisheries (annual, per ha): $180 . ____ Discount Rate: 10% w_ _ _ 10m -126- Annex 8 - 126 - Table 8.1 Page 24 of 31 Mangrove Wetlands in Minh Hai - Area Performance assuming Best Practice (Scenario 2) Mangrove Mangrove Area of Shrimp Farming Area of TtlAe Wetlands Forest (1,000 ha) Barren Lands 1Total Area (100h)(1,000 ha) (1,00h)(000 ha) (1,000 ha) year Total lAnnual Dev. _ I'1] [2] 1 [3] [1 + 2 + 3] 1984 200 110.0 10.01 10.0 80.0 200.0 1985 200 100.0 20.01 10.0 80.0_ 200.0 1986 200 95.0 25.01 5.0 80.01 200.0 1987 200 95.0 25.01 0.0 80.0 200.0 1988 200 95.0 25.01 0.0 80.0 200.0 1989 200 95.0 25.01 0.0 80.0 200.0 1990 200 95.0 25.01 0.0 80.0 200.0 1991 200 95.0 25.01 0.0 80.0 200.0 1992 200 95.0 25.01 0.0 80.0 200.0 1993 200 95.0 25.0 0.0 80.0 200.0 1994 200 95.0 25.01 0.0 80.0 200.0 1995 200 95.0 25.01 0.0 80.0 - 200.0 1996 200 95.0 25.01 0.0 80.0 200.0 1997 200 95.0 25.01 0.0 80.0 200.0 1998 200 95.0 25.01 0.0 80.0 200.0 1999 200 95.0 25.01 0.0 80.0 200.0 2000 200 95.0 25.01 0.0 80.0 200.0 2001 200 95.0 25.01 0.0 80.0 200.0 2002 200 95.0 25.01 0.0 80.0 200.0 2003 200 95.0 25.01 0.0 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. -127- Annex 8 Table 8.2 Mangrove Wetlands in Minh Hai - Area Performance assuming Best Practice (Scenario 2) Page 25 of.31 Forestry Shrimp Farming Shore Fisheries (US$1,000) (US$ 1,000) Protection (US$1,000) (USS 1,000) (US100 year l _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ jiT otal: 1984 1,320 2,8801 600 19,8001 24,600 1985 1,200 10,7601 600 18,000j 30,560 1986 1,140 21,700 600 17,1001 40,540 1987 1,140 28,700 600 17,1001 47,540 1988 1,140 30,950 600 17,100 49,790 1989 1,140 28,950 600 17,100 47,790 1990 1,140 28,950 600 17,100 47,790 1991 1,1401 29,950 600 17,100 48,790 1992 1,140 30,950 600 17,100 49,790 1993 1,140 30,950 600 17,100 49,790 1994 1,140 30,950 600 17; 100 49,790 1995 1,140 22,950 600 17,100 41,790 1996 1,140 22,950 600 17,100 41,790 1997 1,140 26,950 600 17,100 45,790 1998 1,140 30,950 600 17,100 49,790 1999 1,140 30,9501 600 17,100 49,790 2000 1,140 28,9501 600 17,100 47,790 2001 1,140 28,950 600 17,100 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): 7,218 136,862 3,687 108,270 256,037 NPV (94-03): 7,005 172,437 3,687 105,072 288,200 -128, Annex 8 Table 9.3 Page 29 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Explanations: I______ Forestry Model (Mean Annual Increment Basis, profits per hectare): _annual: $12 Improved Extensi ve Shrimp Farming (profits per hectare): _1st year: ($312) total |____________ | $488 from shrimp farming $0 income from wood cutting ($800) investment costs __________ _ 7year 2: $788 _ . year 3-5, 7-11, 13- $1,238 vear 6, 17: $1,038 year 12: $438____ Shore Erosion (value of lost land): ______ _____ lannual average: $150,000 _ _ _ _ _ _ _ _ _ Contribution to Fisheries (per hectare): annual: $180 .Discount Rate: __ 10% -129- Annex 8 Table 9.2 Page 28 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Forestry Shrimp Farming Shore . Fisheries (US$1,000) (USS 1,000) CUSS 1,000) (USS 1.000) year l 7 7 | ~~~~~~~~~~~~~~~~~~~~~~Total: 1994 540 -3,432 150 8,100 5,358 1995 540 8,668 150 8,100 17,458 1996 540 13,618 150 8,100 22,408 1997 540 13,618 150 8,100 22,408 1998 540 13,618 150 8,100 22,408 1999 540 11,418 150 8,100 20,208 2000 540 13,618 150 8,100 22,408 2001 540 13,618 150 8,100 22,408 2002 540 13,618 150 8,100 22,408 2003 540 13,618 150 8,100 22,408 NPV (1 994-2003) 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 Mangrove Area of Shrimp Farming Area of Total Area Wetlands Forest Areaof hrm Barren Lands (1,000 ha) (1,000 ha) ( ha) (1,000 ha) (1,000 ha) Year Total Total Annual Dev. [1] (2] t3] [1 + 2 + 31 1994 200 45 11 11 144 200.0 1995 200 45 11 0 144 200.0 1996 200 45 11 _ 144 200,0 1997 200 45 11 0 144 200.0 1998 200 45 11 0 144 200.0 1999 200 45 11 0 144 200.0 2000, 200 45 11 0 144 200.0 2001 200 45 11 0 144 200.0 2002 200 45 11 0 144 200.0 2003 200 45 11 0 144 200.0 - 131 - Annex 8 Table 8.3 Page 26 of 31 , Mangrove Wetlands in Minh Hai - Area Performance assuming Best Practice (Scenario 2) Exolanations: Forestry Model (Mean Annual Increment Basis, profits per hectare): lannual: T 12 = Improved Extensive Shrimo Farming (profits per hectare): 1st year: $288 total $488 from shrimp farming $600 from wood cutting ($800) investment costs vear 2: $788 _ .__________ year 3-5, 7-11, 13- $1,238 year 6, 1 7: $1,038 year 12: $438 Shore Erosion (value of lost land): lannual average: $600,000 _ Contribution to Fisheries (per hectare)l annual: $180 Discount Rate: 1 0 % -132- Annex 8 TableT9. 3 Page 29 of 31 Mangrove Wetlands in Minh Hai - Alternative Scenario 94 Explanations: Forestry Model (Mean Annual Increment Basis, profits per hectare): . - 1annual: J12 2 Improved Extensive Shrimp Farming (profits per hectare): 1st year: ($312) total $488 from shrimp farming $0 income from wood cutti n ($800) investment costs year 2: $788 year 3-5, 7-11, 13- $1,238 _ ________ year 6, 17: $1,038 year 12: $438 Shore Erosion (value of lost land): lannualaverage: $150,000 Contribution to Fisheries (per hectare) . Discount Rate:_~ annual: $180 Discs c Rte 10 °6 Mangrove Plantation for Sea Dike Protection Source: Serene, basic model 11 with adjustments; Save the Child en/ UK; WFP 4617 Basic data: remarks: Land allocation Ihectares): 500 100km lengtli, 50m average vwth Investment Cost (per hectare) Total: $55 . seed: $15 planting: $20 administration: $20 Operating Costs (per hectarel: maintenance/ guard: $20 first three years 1st cutting: $31 y Year 9 2nd cutting: $60 year 22 final cutting: $135 year 30 Output (stere per hectare): 1st cutting: 2nd cutting: final cutting: poles: 0 20 40 output levels are conservative estimates fire wood: 20 50 100 I Output prices (per store): w poles: $10 prices (in US$) are assumed to be constant fire wood: $5 Saved Costs of Dike Maintenance: $0 year 1-4 annual savings for 100 km sea dikes, average annual dike repair $31,435 year 5-9 costs: 314,350 person days (WFP 4617: pp. 31, 871; assume $62,870 starting year 10 1 pers. day - US$ 1 and 20% of repair costs due to absence ________l_ of mangove cover; full protection function achieved in year G wm 2 _ wh~~~~~~~~~~~~~~~~vlen mangrove more developed Contribution to Fisheries IS per hectarel: year 1-4: year 5-9: year 10-30: $0 $25 $50 average price of fishl/shellfisih output is assumed to be US$ 1 Discount Rate: 10% Rotation Cycle: _30 years I. w H °3 o I-. 0- Mangrove Plantation for Sea Dike Protection (US o 1,000i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 27 28 29 30 Investment Cost, seed: 7.5 ___ planinng: 10 - = _ = - = edmnistfetlion: 10 _ - - _ Operating Costs: maintenance/ guard: _ 10 10 10 0 0 0 0 0 0 0 0 0 ol 0 o 0 0 0 0 0 0 o 0 o0 o o o o 0 cutting: - 16 _ _ 30 =_… … … … … … - 68 Sub-total: 28 10 10 10 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 01 30 0 0 0 0 0 0 0 0 0 68 Output: … ……- - - - - -……… Wood at USS 10/ste 0 100 200 Wood at USS 5/ste s50 o_ 125 _ 250 Fish 0 0 0 0 13 13 13 13 13 25 251 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 Subtotal: 0 0 0 0 13 13 13 13 63 25 251 25 25 25 25 25 25 25 25 250 25 25 25 25 25 25 25 25 25 475 Dike Maintenance: 0 0 0 31 31 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 631 63 63 63 63 63 63 Bnlance: -28 -10 -10 -10 31 44 75 75 75 110 88 88 88 88 88 88 88 88 88 88 283 888 88 88 BB 8888 88 88 88 470 Balance INPV): ____ S532,563 _ Balance NPVIIhNPV __h; # 1.065 IRR:- 45% |Balance 1984-1993 (NPVI: _ ………_ 09 013 I-i 0 D t-h - l tox - 135 - ANNEX 9 Page 1 of 18 VIET NAM ENVIRONMENTAL PROGRAM AND PROLICY PRIORITIES FOR A SOCIALIST ECONOMY IN TRANSITION SOCIALIST RSPUBLIC OF VIETNAM Independence - Freedom - Happiness NATIONAL ASSEMBLY OF THM SOCIALIST REPUBLIC 0P VIlTNAM IX Legislature, 4th Session (from 06 to 30 December 1993) LAW ON ENVIRONMENTAL PROTECTION The environment is of special importance to 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 individuals with respect to environmental protection with a view to protecting the health of the people, ensuring the right of everyone to live in a healthy environment and serving the cause of sustainable development of the country, thus contributing to the protection of regional and global enviromnent; Pursuant to Article 29 and Article 84 of the 1992 Constitution of the Socialist Republic of Vietnam; This law provides for the protection of the envirorunent. - 136 - ANNEX 9 Page 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 economical exploitation and utilization of natural resources. Article 2 In this law the below-cited terms shall have the following meanings: 1- Components of the environment mean factors that constitute the 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 environment noxious. 4- Environmental pollution means alternation in the properties of the environment, violating environmental standards. 5- Environmental degradation means qualitative and qualitative alteration 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. Environmnental Incidents may be caused by: - 137 - ANNEX 9 Page 3 of 18 a) Storms, floods, droughts, earth cracks, earthquakes, landslides, ground subsidence, volcanic eruptions, acid rain, hails, climatic changes 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, exploitation or transportation of minerals or oil and gas, pit collapse, oil spouts and spills, pipeline breaks, shipwrecks, accidents at oil refineries and other industrial establishments; d) Accidents in nuclear reactors, atomic power plants, nuclear fuel producing or re- processing plants or radioactive material storages. 7- Environmental standards mean norms and permissible limits set forth to serve as a basis for the management of the environment. 8- Clean technology means a technological process or technical solution either causing no environmental pollution or generating pollutants at the lowest level. 9- Ecosystem means a system of groups of living organisms existing and developing together 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 ecosystems in nature. 11- Environmental impact assessment (E.I.A) means the process of analyzing, evaluating and forecasting the effects on the environment by socioeconomic development projects and plans, by production and business establishments, 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 environmental protection throughout the country, draw up plans for environmental protection, build up capabilities for environmental protection activities at the central and local levels. The State shall adopt investment policies to encourage organizations and individuals at home and abroad to invest under different forms in, and apply scientific and technological advances 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 implementation of education, training, scientific and technological research activities and the dissemination of scientific and legal knowledge on environmental protection. Organizations and individuals shall be liable for participating in 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 cooperative relations with other countries in the world, with foreign organizations an individuals in the field of environmental protection. Article 6 Environmental protection is the common cause of the entire population. All organizations and individuals shall have the responsibility to protect the environment, observe the environmental protection legislation, have the right and obligation to detect and denounce any act in breach of the environmental protection legislation. All foreign organizations and individuals operating on Vietnamese territory shall abide by Vietnam's environmental protection legislation. Article 7 Organizations and individuals making use of components of the environment for production or business purposes shall, if necessary, contribute financially to environmental protection. The Government shall regulate the circumstances, levels and modalities for the financial contribution mentioned in this Article. Any Organization or individual whose activities cause damage to the environment shall make compensation therefor according to regulations by 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 implementation of the environmental protection legislation. The Govermnent and the People's Committees at all levels shall be responsible for organizing the implementation of the environmental protection legislation. Article 9 All acts causing environmental degradation, environmental pollution or environmental incidents, are strictly prohibited. Chapter n PREVENTION AND COMBAT AGAINST ENVIRONMENTAL DEGRADATION ENVIRONMENTAL POLLUTION AND ENVIRONMENTAL INCIDENTS Article 10 The State offices, within the scope of their functions and tasks, shall be responsible for organizing the investigation, study and evaluation of the existing conditions of the environment, periodically reporting to the National Assembly on the current status of the environment; for identifying areas of environmental pollution and notifying the public thereof and for drawing up plans for the prevention and combat against environmental degradation, environmental pollution and environmental incidents. Organizations and individuals shall have the responsibility to engage in the prevention and combat against environmental degradation, environmental pollution and environmental incidents. Article 11 The State encourages, and shall create favorable conditions for all organizations and individuals in the rational use and exploitation of components of the environment, the application of advanced technology and clean technology, the exhaustive use of wastes, the economical use of raw materials and the utilization of renewable energy and biological products in scientific research, production and consumption. - 140 - ANNEX 9 Page 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 methods and permitted tools and means in order to ensure their restoration in terms of density, varieties and species, thus preventing ecological imbalance. The exploitation of forests must comply strictly with plans and specific stipulations of the Law on Forest Protection and Development. The State shall adopt plans to involve organizations and individuals in afforestation and greening of waste lands and denuded hills and mountains to 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 environmental protection and must be registered with the local People's Committees entrusted with the administrative management of these conservation sites. Article 14 The exploitation of agricultural land, forest land, and land for aquaculture must 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 construction works, 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 regulations on public hygiene in cities, urban areas, countryside, population centers, tourism centers and production areas. - 141 - ANNEX 9 Page 7 of 18 Article 16 In carrying out production, business and other activities, all organizations and individuals must implement measures for environmental sanitation and have appropriate waste treatment equipment to ensure compliance with environmental standards and to prevent and combat environmental degradation, environmental pollution and environmental incidents. The 'Govermment shall stipulate the nomenclature of environmental standards and delegate the authority at different levels for promulgating and supervising the implementation of such standards. Article 17 Organizations and individuals in charge of the management of economic, scientific, technical, health, cultural, social, security and defence establishments that have begun operation prior to the promulgation of this law must submit an E.I.A. report on their respective establishments for appraisal by the State management agency for environmental protection. In case of failure to meet environmental standards, the organizations or individuals concerned must take remedial measures within a given period of time as stipulated by the State management agency for environmental protection. 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 penalizing measures. Article 18 Organizations, individuals when 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 environmental protection for appraisal. The result of the appraisal of E.I.A reports shall constitute one 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 9 Page 8 of 18 The National Assembly shall consider and make decision on projects with major environmental impacts. A schedule of such types of projects shall be determined by the Standing Committee of the National Assembly. Article 19 The importation and exportation of technologies, machinery, equipment, biological or chemical products, toxic substances, radioactive materials, various species of animals, plants, gene sources and microorganisms relating to the protection of the environment must be subject to approval by the sectoral management agency concerned and the State management agency for environmental protection. The Government shall 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 supervision by the State management agency for environmental protection. Article 22 Organizations, individuals operating 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 management agency for environmental protection. The operation of transport means failing to meet stipulated environmental standards shall not be permitted. - 143 - ANNEX 9 Page 9 of 18 Article 23 Organizations, individuals producing, transporting, trading using, storing or disposing of toxic substances, inflammable or explosive substances, must comply with regulations on safety for human and other living beings and must avoid causing environmental degradation, pollution or incidents. The Government shall stipulate a list of toxic, inflammable or explosive substances mentioned in this Article. Article 24 The siting, design, construction and operation of plants in the nuclear industry, of nuclear reactors, facilities for nuclear research, for the production, transportation, utilization and storage of radioactive materials, for the disposal of radioactive wastes must comply with legal provisions on nuclear safety and radiation safety and with regulations by the State management agency for environmental protection. Article 25 Organizations, individuals making use of machinery, equipment, materials with harmful electro-magnetic radiation or ionizing radiation must comply with legal provisions on radiation safety and must carry out regular check and environmental impact assessment of their facilities and report periodically to the State management agency for environmental protection. Article 26 The choice of sites for collecting, dumping and treating refuse or pollutants and their transportation must comply with regulations by the State management agency for environmental protection and by the local authorities concerned. Waste water, refuse containing toxic substances, pathogenetic agents, inflammable or explosive substances, non-degradable wastes, must be properly treated before discharge. The State management agency for environmental protection shall stipulate a schedule of waste water and refuse mentioned in this Article and supervise their treatment process before discharge. Article 27 The burial, lying in state, embalment, interring, cremation and transport of corpses or remains of the dead must utilize progressive methods and means and comply with provisions of the Law on Protection of Public Health to ensure environmental hygiene. - 144 - ANNEX 9 Page 10 of 18 The Administration at 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 vibrations that exceed permissible limits, harming the health of surrounding people and adversely affecting their life. The People's Committees at all levels shall be responsible for the implementation of noise control measures in areas of hospitals, schools, public offices, and residential quarters. The Government shall promulgate regulations to 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 exploitation of 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 animals or plants, harmful and infective bacteria and viruses into water sources. 4- Burial, discharge of toxic substances exceeding permissible 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 ENVIRONMENTAL DEGRADATION, ENVIRONMENTAL POLLUTION, ENVIRONMENTAL INCIDENTS Article 30 Organizations, individuals engaged in production, business and other activities that cause environmental degradation, environmental pollution, environmental incidents must implement remedial measures as specified by the local People's Committees and by the State management agency for environmental protection, 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 immediate measures to control and remedy the consequences, timely report to the relevant sectoral management agency and to the State management agency for environmental protection, as well as to the local People's Committee to resolve the problem. Article 32 The remedy of an environmental incident includes: eliminating the cause of the incident; rescuing people and property; assisting, stabilizing the life of the people; repairing damaged - facilities; restoring production; sanitizing the environment, preventing and combatting epidemics; investigating, collecting statistics on damages, monitoring changes to the environment; rehabilitating the environment of the affected area. Article 33 Persons who detect signs of an environmental incident must immediately notify the local People's Committee, the nearest agency or Organization for timely action: Organizations, individuals at the site of the environmental incident must take appropriate measures to timely remedy it and immediately report to the superior administrative authority, the nearest People's Committee and the State management agency for environmental protection. - 146 - ANNEX 9 Page 12 of 18 Article 34 The chairman of the People's Committee of the locality where the environmental incident occurs is empowered to order an emergency mobilization of man power, materials and other means for remedial actions. If the environmental incident occurs.in an area covering several localities, the Chairmen of the respective local People's Committees shall 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 application of 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 empowered to mobilize manpower, materials, and other means to remedy environmental incidents must reimburse the mobilized organizations, individuals for their expenses according to regulations by the law. Chapter IV STATE MANAGEMENT OF ENVIRONMENTAL PROTECTION Article 37 The scope of State management of environmental protection includes: 1- Promulgating, and organizing the implementation of, statutory instruments on environmental protection; promulgating systems of environmental standards; - 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, environmental incidents; 3- Establishing and managing environmental protection facilities, and facilities relating to environmental protection; 4- Organizing, establishing and managing monitoring systems, periodically assessing the current state of the environment, forecasting environmental changes; 5- Appraising E.I.A. reports on projects and on production or business establishments; 6- Issuing, revoking certificates of compliance with environmental standards; 7- Supervising, inspecting, checking the observance of environmental protection legislation; settling disputes, appeals or complaints concerning environmental protection; dealing with breaches of environmental protection legislation; 8- Training personnel in environmental science and management; educating, propagandizing, disseminating knowledge and legislation in environmental protection; 9- Organizing research and development activities and application of scientific and technological advances in the field of environmental protection. 10- Developing international relations in the field of environmental protection. Article 38 The Government shall, pursuant to its power and responsibility, exercise unified State management of environmental protection throughout the country. The Ministry of Science, Technology and Environment shall be responsible to the Government for exercising the function of State management of environmental protection. 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 establishments under their direct supervision. The People's Committees of provinces and cities directly under the Central Govermnent shall exercise their State management function for environmental protection 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 environmental protection in their localities. Artide 39 The system of organization, functions, responsibilities and powers of the State management agency for environmental protection shall be determined by the Government. Artide 40 The State management agency for environmental protection 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 environment shall be determined by the Government. Article 41 During the inspection process, the Inspection Team or Inspector is empowered to: 1- Require the organizations, individuals concerned 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 incidents and 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 environmental incidents. 4- Deal within their competence or recommend the competent State agency to deal with breaches of the law. Article 42 Organizations, individuals must create favorable conditions for the Inspection Team or the Inspector to carry out their functions and must observe the decisions of the Inspection Team or the Inspector. - 149 - ANNEX 9 Page 15 of 18 Artide 43 Organizations, individuals are entitled to 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, individuals have the right to complain, denounce to the State management agency for environmental protection or other competent State agencies about activities in breach of environmental protection legislation. Agencies receiving complaints, denunciations shall be responsible for their examination and resolution in accordance with regulations by the law. Article 44 In case there are several organizations, individuals operating within an area where environmental incidents, environmental pollution or environmental degradation occur, the power to determine the responsibility assigned to those organizations, individuals for remedial measures is defined as follows. 1- For environmental incidents, environmental pollution 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 proposed and reported by the latter to the Chairman of the People's Committee of that province or city for consideration and 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, environmental pollution or environmental degradation occurring in two or more provinces, or cities directly under the Central Government, the responsible parties shall be determined by the specialized environmental protection inspector of the Ministry of Science, Technology and Environment or proposed and reported by the latter to t Minister of Science, Technology and Environment for consideration and decision. If one or more parties disagree with the decision of the Minister of Science, Technology and Environment, they shall be entitled to appeal to the Prime Minister for decision. - 150 - ANNEX 9 Page 16 of 18 Chapter V INTERNATIONAL RELATIONS WITH RESPECT TO ENVIRONMENTAL PROTECTION Article 45 The Government of Vietnam shall implement all international treaties and conventions relating to the environment which it has signed or participated in, honor all international treaties and conventions on environmental protection 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 organizations an individuals with respect to environmental manpower training, environmental scientific research, clean technology application, development and implementation of projects for environmental improvement, control of environmental incidents, environmental pollution, environmental degradation, and projects for wastes treatment, in Vietnam. Article 47 Organizations, individuals and owners of transportation means which, in transit through the Vietnamese territory, carry potential sources of environmental incidents or environmental pollution must apply for permission, declare and submit to the control and supervision by the State management agency for environmental protection of Vietnam. Any breach of Vietnamese environmental protection legislation shall, depending on the extent of the infringement, be dealt with according to Vietnamese law. Article 48 Any dispute concerning environmental protection on the Vietnamese territory in which one or all parties are foreigners shall be settled according to Vietnamese law, taking into account international laws 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 international laws and practices. - 151 - ANNEX 9 Page 17 of 18 Chapter VI REWARDS AND DEALING WITH BREACHES Article 49 Organizations, individuals having good records in environmental protection activities, in the early detection and timely report of signs of enviromnental incidents, in the remedy of environmental incidents, environmental pollution, environmental degradation, in the prevention of acts, which damage the environment, shall be rewarded. Those who suffer damage to their property, health or life, while participating in the protection of the environment, in the remedy of environmental incidents, environmental pollution, environmental degradation and in the combat against activities violating environmental protection legislation, shall be compensated according to regulations by the law. Artide 50 Those who commit acts of destruction or cause damage to the environment, who disregard the order of mobilization by the competent State agency upon the occurrence of environmental incidents, who fail to implement regulations on environmental impact assessment, or infringe other legal provisions for environmental protection shall be dealt with administratively or be criminally prosecuted, depending on the nature and extent of the infringement and the consequences. Article 51 Those who take advantage of their positions and powers to infringe environmental protection legislation, to protect persons infringing the environmental protection legislation, whose lack of responsibility allows environmental incidents or environmental pollution to occur, shall be disciplined or be criminally prosecuted, depending on the nature and extent of the infringement and the consequences. Article 52 Organizations, individuals that commit acts of violation against the environmental protection legislation, causing damage to the State, to other organizations or 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 - ANNEX 9 Page 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 Socialist Republic 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 ENVIRONMENTAL PROGRAM AND POLICY PRIORITIES FOR AN ECONOMY IN TRANSITION Environment-Related Institutional and Regulatory System Institutional Framework 1. The inter-relationship between management of environmental concerns and development of a sound institutional framework is central to addressing the environmental issue. Development of a sound institutional framework is essential to effective environmental management. Environmental and development objectives have to be pursued within a strong institutional context, reflecting well- orchestrated policies, priorities and investment decisions, at a pace accommodative of growth. In Vietnam, the impacts of economic and social policy have not always been conducive to sound environmental management. While there is general awareness of the need to adopt environmentally sound strategies among policy makers and planners, such awareness is not adequately backed by supportive institutions or enabling legislation for conducting reviews, impact assessments, interagency coordination or monitoring. Environmentally sustainable principles have not been adequately incorporated into the overall development process, and institutions have not been appropriately restructured to meet new challenges. 2. Institutional framework at the National (Center), Provincial, District and local level reflects the predominance of the Communist Party within the legislative, the executive and the technical Ministries/Departments of Government. 3. The constitution of Viet Nam states that the National Assembly is the highest legislative body and the council of ministers is the highest executive body of the state. The constitution also recognizes the leading role played by the party in the development of the state and Vietnamese society. The National Assembly meets twice a year for about one week and when it is not in session the Council of Ministers assumes it's responsibilities. The fifteen members of the Council of Ministers including the Chairman are elected by the National Assembly from among the Assembly Members. The Chairman of the Council acts as the President of the country. The Council of Ministers supervises the activities of the provincial People's committees rescinding or amending the decisions of the Committees if the decision is deemed to be detrimental to the interest of the people. 4. Below the Central government apparatus there are three levels of administration. The first level is that of the provinces including the three cities of Hanoi, Haiphong and HCMC, and the special zone of Vung Tau-Con Dao. The second level is that of the urban quarters and rural districts. The last administrative level is the urban blocks and rural communes. 5. At each level of the administration there are directly elected People's Councils which in turn appoint the People's Commnittees. The People's Commnittee is responsible to the electors and. to higher - 154 - Annex 10 Page 2 of 15 administrative authorities who have the mandate to rescind their decisions. The provincial governnents represent an important power block within Viet Nam and they play a major role in formulating regional development strategies. 6. The technical or line Ministries of Government are generally headed by a Minister and two Vice Ministers who direct the work of the Ministries and their departments. The Ministries are assigned functions by the Council of Ministers, which in turn is responsible to it, through the Minister. All Ministries have staff at the provincial and district levels, being located in sub departments. These staff have dual responsibility, and are accountable to their departmental superiors for technical work, and to the People's Committee for administrative matters and implementation of the development plans. In most cases, the Ministries also oversee the functioning of several institutes and research units, and are assigned functions through sectoral laws or Government decrees. At the provincial level, operating departments assist the Peoples Commnittee in carrying out administrative and operational functions. Enterprises and factories under provincial authorities are 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, Technology and Enviromnent (MOSTE). The national Environmental Protection Law (NLEP), approved by the National Assembly in December 1993, and the implementing regulations 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 environmental protection law and its implementing decree; codification of regulation and standards; evaluating environment impact assessments and coordination with the State Planning Committee and other sectoral Ministries. MOSTE's Department of Environment and Natural Resources, which became the National Environment Agency (NEA) in 1994, has the responsibility of undertaking the public administration of environmental protection on behalf of the Minister of MOSTE. Sectoral Organizations with Environmental Plannine and Assessment Functions 8. The Government has enjoined the sectoral ministries to include environmental protection in the mandates of their Science and Technology Departments. Except for MOSTE, sectoral ministries have direct technical links with the Provincial services for their respective sectors. Although the sectoral ministries play an important role in establishing policies, programs guidelines for investment, they are not directly in control of implementation at 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 environmental issues. Instead, subject matter specialists organize special programs on livestock management, tree cropping, pesticide usage, sericulture and reclamation of bare land, as an effort not only for increasing income and productivity, but also conserving and protecting the environment. One of the most important programs undertaken by Government is under Decree 327, which covers land management issues, especially of bare hills and coastal areas. Schemes under this program aim at stabilizing and restoring the ecological balance of fragile zones and "sedentarizing" ethnic minorities. MAFI shares responsibility for implementation with the Ministry of Forestry and the Ministry of Fisheries and Aquatic Resources. - 155 - Annex 10 Page 3 of 15 10. Besides implementation of these special programs, the Ministry carries responsibility for policy matters, preparation of annual and 5 year plans, scientific research, transfer of technology and marketing of products, through state run enterprises. Increasingly, state run enterprises are being handed over for private management in 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 Agriculture and Forestry in many provinces with two-way control of its performance and activities. One channel of control is through the People's Committee (for day to day operations), and the other through the MAFI for technical monitoring and national project support. 11. The Ministry of Water Resources (MWR) has nationwide responsibility for management and development of Water Resources. At the national level the Ministry is structured into the Division of Management, Research and Training and Engineering. The Division of Management has ten Departments looking after planning, finance, construction, irrigation/drainage, flood control and dike management. The Division relating to research, training and engineering has several institutional enterprises under 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 concerning conflicts of interests in 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 outside MWR's control. These include, among others, the deforestation and subsequent flooding, water quality deterioration, sedimentation and siltation. Effective water quality management programs will depend on an overall environmental policy in other relevant sectors (agriculture, forestry, industry, etc.). 12. The Institute of Water Resource Planning and Management bears responsibility for conducting environmental impact assessment studies, including issues of erosion, siltation salinity, water quality and pollution standards. The existing institutional structure for handling environmental related issues is weak, and the process of Environmental impact assessment has just been introduced. The Water Law, for regulating water use has been drafted and is expected to be submitted to the National Assembly this year. 13. The Ministry of Fisheries and Aquatic Products (MFAP) is separate from agriculture. Its main responsibilities include fish processing, import and export of fishes and overall control of fishing resources. The Ministry of Fisheries oversees a number of research institutes (primary being the research institutes of Aquaculture, the hatcheries training centers), and state enterprises (aquaculture farms, feed processing mills and fish meal plants). An important aspect of fisheries development in 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 these sensitive eco-zones. Thus, programs for forestry protection and fisheries development, within these areas may have competing objectives. It is only recently that a carcians effort is being made to combine mangrove protection with shrimp production and maintain a balance between forest and water cores. 14. Prior permission of the Ministry of Science Technology and Environment is not taken for degradative aquaculture and forest exploitation. Neither are impact assessment studies conducted. There are no environmental units to assess impacts or take mitigatory measures. Pollution control at the ports and fishing centers is the responsibility of 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 commune level for credit disbursement and loan payback. The National Fishery Company under the Ministry of Fisheries caters to the needs of the domestic market. 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, provincial governments and foreign firms. 15. At the provincial level, the Fisheries Department operates enterprises in 27 provinces, to sell goods and services to fishermen. These firms can export and import independently and many possess large brackish water aquaculture ponds. Though subject to the management of the Ministry of Fisheries, for purposes of strategy direction these units are under the control of the Provincial Peoples Committee, which has its own fisheries technical service. Hence provincial policies, programs and strategies may sometimes diverge 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 ventures are being encouraged by the Ministry between provincial and district enterprises. In such cases the local government provides the land for the project, as well as the capital investment and infrastructure. 17. The Ministry of Forestrv (MOF) is responsible for protection of 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, Resettlement and inspection. The Department of Forest Management and Protection and the Department of Human Settlement Fixed 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 administrative and 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 Inventory and Planning Institute, the Forest Science Institute and the Forestry Colleges. 18. The management of 75 central state enterprises also rests directly with the ministry covering 1 million hectares of forest land. These enterprises are engaged in commercial production of wood, export and import of wood products and other forest produce. The Enterprises are engaged in non- commercial activities like establishment of schools, health care centers for the population of the forested area within their jurisdiction. There is a strong move to divest the enterprises of their non-commercial responsibilities, by entrusting the schools, and health clinics to the concerned line Ministries, and to ensure that the enterprises function on conmnercial principles of non subsidization and profitability. 19. At the provincial level, the Department of Forestry assists the Peoples committee in carrying out state administrative duties and conducting production operations. There are about 300 enterprises and 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 attached to the Economic branch of the Peoples District Committee. The forest cadres extend up to the village and commune levels for organizing activities of forest protection, wood production and reforestation, through brigades. 20. The sedentarization programs for the minority population in the mountainous regions are conducted by the Department of Resettlement, under the direction of a Board of Management. The Department has sub-departments in 26 provinces. - 157 - Annex 10 Page 5 of 15 21. The Ministry of Labor. Invalids and Social Affairs (MLISA) is entrusted with the task of reallocation and resettlement of manpower. The Ministry has until now resettled/rehabilitated 4.95 million people. Around 6-7 % of the population are reportedly unemployed. Consequently, Government of Vietnam promulgated Decree 116, under which surplus labor force will be deployed on unutilized land. A number of institutes along with the Ministry are engaged in a planning exercise, for delineating land use patterns for unutilized land against unemployed human resource. To date, 130 projects have been identified under this program. 22. The Ministry of Construction (MOC) plays a leading role and is often the implementing agency for planning, design and construction of utilities such as water supply and waste disposal systems. It has provincial units which take primary responsibility for their local tasks. MOC is in the process of revising their norms of construction, to which environmental norms 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 implementation of the NPESD in the areas of pollution prevention. MOC expects NIUIP to become the enforcement authority to stop operations where strong controls are needed to deal with pollution problems. 23. The health sector is organized as a pyramid of preventative and curative networks under the Ministry of Health (MOH). Prevention is mainly the responsibility of the hygiene and epidemiological systems, while treatment and some aspects of prevention and promotion are the responsibilities of the medico-health system. The tasks of the Ministry related to water supply and sanitation are health education, promotion of appropriate water supply and sanitation practices, implementation of sanitation programs in rural areas and water quality monitoring. MOH currently has about 300 staff. The Ministry is also in charge of four research institutes: the Institutes of Hygiene and Epidemiology in Hanoi, Nha Trang, and Trai Nguyen, and the Institute of Hygiene and Public Health in HCMC. MOH has provincial units which take primary responsibility for their local tasks. 24. MOH considers itself responsible for several priority programs: (a) Environmental health, including (i) environmental protection (especially the 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 (especially the improvement of the water supply and basic facilities through application of improved technologies and provision of essential construction material). (b) Family planning, where MOH has a key role in that it manages all of the funds intended for birth control activities in the provinces. 25. The main functions of the General Department of Mines and Geologv (GDMG) are: (a) the collection and compilation of data and the execution of general and applied hydrogeological research, including field surveys and exploratory drilling; (b) the approval and issuance of permits for the use groundwater by major projects. GDMG has provincial units which take primary responsibility for local tasks. 26. The focal point for studies and research on environment for 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 1992 one-third of the resources of the Institute were provided for by the Ministry of Energy and two-thirds by consultancy work for the Government, districts, - 158 - Annex 10 Page 6 of 15 communities, and other enterprises. Within the Institute, four services are concerned with environmental issues: (a) Department 12, which is concerned with thermal power stations (emissions measurement and standards, improved technology and efficiency) with Power Development Company (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) Department T16, which is concerned with 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) Department P6, which is concerned with environmental policies. They collect information on standards and want to expand their capacity in environmental collection and monitoring and in training. 27. The Ministry of Heavy Industry (MOHI) is vested with the function of state management of the branches of mechanical engineering, metallurgy, electronics, mining, geology and chemical industry. There are nine corporations and one general department under direct management of MHI. Each corporation covers a specific branch of the national economy. These corporations are financially autonomous. The Ministry of Light Industry (MOLI) has state management for the remaining manufacturing sectors which are generally less polluting. Environment Legislation and Standards 28. Decree 175/CP has the status of a government regulatory order under the legal framework of the NLEP. It regularizes the structure of administrative responsibility for environmental management at the State and local government levels, consistent with administrative mechanisms in other line agencies. This means that local environmental management authority is delegated to the provincial Departments of Science, Technology and Environment (DOSTEs) in parallel with that of MOSTE at the State level. They are entitled to government budgetary funds for the staffing of these agencies. 29. This is a generally positive step, formalizing a new administrative responsibility in a field important to local development efforts. However, there are some implementation concerns in those large cities which had already organized their own Environment Committees (ECs). The ECs had no legal powers, but they were typically chaired by the Vice-Chairman of the People's Committee and reported directly to the PPC. This structure gave them a high political profile and direct access to decision- makers, while enabling flexible staffing from other relevant provincial bureaus. Under the new DOSTE, the Environment Service may be somewhat isolated from decision-making in a relatively minor provincial department, facing new bureaucratic approval procedures to its decision-making proposals. Of the four cities which previously had 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 coordination and management will arise at the local level to replace the ECs. - 159 - Annex 10 Page 7 of 15 30. The recent approval of Decree 175/CP had therefore reduced some concerns but increased others. The decree represents a clear expression of government policy and introduces some significant changes in administrative requirement. While there may be a need to gain some experience with the new system before changing it again, there should be an opportunity for various affected parties, 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 implementing decree (175/CP) also provide for: (a) prohibitions against discharges into the atmosphere and waterways beyond unspecified "permissible limits" which has yet to be elaborated as it is not clear to what extent the environmental standards cited (Article 22 of Decree 175/CP) have been prepared; (b) waste management and treatment of hazardous wastes under implementing regulations for which further clarification will be needed; and (c) allocation of pollution control responsibilities between the central state environment agency (the NEA) and the provincial DOSTEs or ECs, but are unclear with regard to allocations between NEA and the other central Agencies/Ministries. 32. The absence of adequate national standards limiting industrial emissions is currently being addressed by the exhaustive review of many international pollution standards for both ambient air and water quality as well as emissions of selected pollutants. Standards will include technical guidelines for sampling, measurement and 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 responsibilities for which agency to monitor and enforce the implementation of these standards. This is still unclear. Furthermore, unless it is easy to show that standards are not being met, and there are strong penalties for not meeting them, they are unlikely to have any effect. 33. At the provincial level, Hanoi has had environmental regulations since 1991; HCMC's Environmental Committee has drafted environmental regulations and the Ministry of Environment of Singapore to assist in developing moie effective local environmental standards and a local environmental review process. At least three other local DOSTEs (Dong Nai, Tay Ninh and Vung Tau) have promulgated local environmental regulations and standards. Hanoi's regulations, which were issued in 1991: (a) set ambient standards for 95 air pollutants, 177 liquid pollutants and work place standards for 140 air pollutants, 15 particulates, and noise; (b) require approval of investment applications through the local DOSTE or Environment Committee; and (c) establish detailed environmental inspection requirements. Under the regulation, a Board of Inspectors under the DOSTE must carry out semi-annual air quality inspections of plants producing fertilizers, toxins, batteries and other electrical products, active chemicals and pesticides; annual inspections of all other enterprises; and spot checks of previous violators of air and water quality standards. Positive aspects of HCMC's standards include: (a) the manageably small number of parameters covered; (b) their distinction between new and existing facilities, with more stringent limits for new facilities; and (c) their classifications of 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 consistency with the NLEP and 175/CP. Institutional Capacitv for Environmental Planning and Review 34. The State Planning Committee is the focal point for appraising investment projects and setting the guidelines for social development. As a member of the State Committee on Cooperation and - 160 - Annex 10 Page 8 of 15 Investment (SCCI), a body used for approving non-governmental, foreign-assisted projects, MOSTE has formal authority to comment on enviromnental aspects of investment applications. In practice, NEA (on behalf of MOSTE) currently provides comments on environmental aspects of some of the larger investment proposals in the industrial and energy sectors, but lacks capacity to carry out systematic and in-depth environmental review of these investment applications. 35. During the preparation of the National Plan for Environment and Sustainable Development which predated the establishment of MOSTE n October 1992, the Ministry of Construction (MOC) took the lead on urban and industrial pollution issues. MOC offered broad proposals for the development of urban and industrial pollution control activities and regulatory capacity but these proposals emphasized urban planning and waste management infrastructure over industrial pollution control. MOSTE (through the NEA), under NLEP, now officially takes over the responsibilities for the planning and review of urban and industrial pollution issues and is thus in a position to provide a balance in emphasis. 36. At the provincial level, the DOSTEs or Environment Committees have formal authority to review and comment on environmental aspects of investment applications and to resolve pollution related disputes on behalf of the Peoples Committees. However, they generally lack trained staff, knowledge of clean technology and financial resources. 37. Fledgling environmental agencies in developing countries are typically small in size and underfunded, and may become repositories for personnel with unfavorable career prospects in other departments. Yet environmental agencies are ordinarily expected to provide a broad monitoring and enforcement responsibilities at 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 Department of Natural Resources and Environment). But without careful planning and training, MOSTE and the DOSTEs will experience a growing gap between limited existing institutional capacity and expectations of immediate and visible improvements in environmental quality. The result could well be that their credibility and effectiveness will be impaired. The Japanese experience is instructive here. The Japan environment Agency was able to avoid the gap between capacity and expectations, because technical expertise in environment related disciplines was readily available at the time the Environment Agency was established, and highly qualified technical personnel were seconded from line and local agencies to the local Environment Protection Bureaus and the national environment agency. 38. Any discussion of the issues of central versus local powers on environmental management has to recognize that some issues are really of local concern and are within local competence to 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 environmental management problems, complaints are now going directly to members of the National Assembly and on to the Office of Government and 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 governments so they could handle as many of these issues as their capacity to respond to them grows. Local agencies have requested technical guidelines and clearer implementation procedures from MOSTE for such matters as EA, industrial pollution audits, monitoring procedures, etc. The process of gradual development of local authority would be enhanced by continuing consultation and coordination between MOSTE and the provinces. - 161 - Annex 10 Page 9 of 15 39. The lack of information about new environmental sector guidelines and responsibilities was perceived to be a problem constraining effective responses to issues in this sector. There appear to be few mechanisms for sharing information between agencies active in this sector. Sequencing Coverage of the Regulatory System 40. Given (i) the financial difficulties of many polluting firms (which have obsolete equipment and an uncertain future in light of recent trends in the industrial sector), (ii) the employment concerns of the municipal government, and (iii) the lack of incremental resources for pollution control, many plants that are in violation of environmental standards can do little more than make small improvements in housekeeping; and the DOSTEs or Environment Committees generally do not press them. 41. Under these circumstances, it is essential that the DOSTEs/ECs target a limited number of pollutants and industries that are within its monitoring and enforcement capacity. One way to do this is to focus initially on the regulation of a limited number of parameters related to human health impacts, (e.g. sulphur dioxide, particulates, carbon monoxide for air; and heavy metals like lead, mercury, and chromium for water), leaving regulation of environmental quality parameters that are less closely linked to human health for a later stage in the development of the regulatory system. 42. The advantage of initially targeting a few parameters and structuring the entire regulatory strategy (including realistic standards, regulations, incentives, research and development, monitoring and enforcement) around those parameters, is that the environmental agency has a better chance of achieving early successes, and thereby strengthening its 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 reduction of SO2 and toxic emissions, and its success in this campaign contributed significantly to the technical credibility of its pollution control effort. Environmental Impact Assessment 43. In terms of environmental (impact) assessments (EA), the NLEP and Decree 175/CP includes definition of broad provisional guidelines and allocation of responsibilities between local and State (central) authorities, and between MOSTE and the central line agencies. The guidelines ensure that the agencies cannot review their own EAs, and formalize the EA review committee procedure (through Evaluation Councils) which includes experts from State agencies, provincial government and local public organizations as appropriate. The broad representation of membership on EA review committees (which are required under the new regulations to include national, provincial, and sectoral expert representatives) should improve familiarity with the process in many government agencies and help link it with established planning procedures. Also there are specific time requirements for the review of the environment impact assessment reports, including the review of challenges to the EA decision. Overall, proposals for environment impact assessments are sound; and SPC and SCCI have indicated their endorsement of the formal EA review procedures for all investment projects. Now it remains to be seen whether project review procedures can capture an assessment of potential environmental concerns at an early stage to enable effective response. - 162 - Annex 10 Page 10 of 15 44. Early feedback indicates the need for improvements/clarifications in the areas given below: First, the central law/regulations do not contain any reference to public participation'. Although an Evaluation Council may be established to evaluate project environmental impact, public participation in this Council is optional. Today, most countries' EA statutes expressly provide a right of public participation either in the EA law or through associated legislation. (For exarnple, in Germany and the United States, public participation is provided for in administrative procedure law). In addition, international lending agencies like the World Bank will not finance projects which require an environmental assessment unless there has been adequate public participation. Thus, the regulation should be supplemented by MOSTE instructions which establishes a clear right for the public and other interested and involved entities (physical and 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 comment on a draft before the EA is final, including the right to question the experts who prepared the EA. Second, no mention is made concerning the funding of EAs, especially for government owned projects. Similarly, it is not clear how governmental review costs (e.g., evaluation council) would be covered. Third, the jurisdiction of evaluation responsibilities is unclear (particularly MOSTE vis-a-vis central implementing Ministries) as are the conditions which require an Evaluation Council to be created (Article 14) and the meaning of "accountability of 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 evaluation decisions (Article 20)? The above gaps may well need to be remedied by SPC MOSTE perhaps in the form of Ministerial Instructions for Environmental Impact Assessment. 45. Furthermore, the Ministries within the Natural Resources Sector have no separate units for conducting environmental impact assessments. While granting that much of this work could be subcontracted to various professional institutes or private consultants, a nucleus would 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 impacts of 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 deforestation and sedentarization. A number of priority projects are in the immediate agenda of the Government such as under Decree 327, Decree 72, sedentarization of minority groups, etc, which may cumulatively have significant impacts on the environment. It will be necessary to carry out assessments of 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 complaints brought by affected people. There is no provision, however, for ex-ante consultation during 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 impact and levels of compliance with environmental laws and regulations. Based on this early evaluation of environmental effects, subsequent action could be categorized. A program, project or an action which does not individually or cumulatively have a significant effect on the environment could be placed in an "exclusion" category, waving, thereby, the requirement of a detailed environment assessment or an environment impact statement2. Since provincial and district governments are primarily responsible for agriculture, forestry, and other natural resource projects, attention should be paid to strengthening their capacities to do EAs. Some arrangements used in other East Asian countries might be useful for consideration in Viet Nam. 48. In China, environmental considerations are integrated into projects and development planning through the process known as "three simultaneous steps." This involves incorporation of environmental safeguards into design, construction and operation of facilities and through the requirement of environmental impact assessments (EA's) on new renovation and expansion projects. As noticeably EA's were often performed too late in the project cycle to influence approval of locations, designs, or other alternates, regulations were recently modified to require their preparation easily in the project cycle. The Environmental Protection Law promulgated in 1979 but fully effective since 1989 spells out the need for environmental impact assessments to be done for most development projects, and all projects receiving external financing. The enterprise or agency responsible for the project, commissions the EA and the National Environmental Protection Agency (NEPA). NEPA or its provincial arm must approve for the project to proceed. Most assessments are carried out by research institutes, universities or other technical agencies. The EA process has been used so far to assess the pollution impacts of industrial projects and it is only in the past two years that it has been used for agricultural projects. The EA's completed so far typically cover pollution from agro-processing plants and agricultural chemicals, implications of large scale water transfers, protection of historic sites and similar issues. 49. Procedural guidance on EA is provided through two supporting administrative documents, the first is the Management Guideline on Environmental Protection of Construction Projects issued in March 1986, and the second is the Management procedure for environmental protection of construction projects issued in June 1990. NEPA has overall legal responsibility for implementation of EA requirements at the national level in China. However, as most development activity occurs at the regional level, NEPA has assigned responsibility to its provincial offices, or Environmental Protection Bureaus (EPB's). The 1986 guidelines provides the basis for sharing of responsibility between 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 controversial in its content. Though the provincial and sub- 2 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; financial offices; communications and related services; education and training; publication distribution agencies; schools; hotels of less than 50 rooms; trade centers an super markets; projects for installation/assembly of electronic and mechanic equipment; business services; garment sewing; food processing with productivity of under 100,000 tons per year production of construction materials with small capacity (bricks: less than 2 million per year quarried stones: less than 100,000 tons per year); spinning/weaving (excluding dyeing, bleaching or design printing); commodity making (making shoes, office tools); wooden production (excluding wood processing); eating and drinking services; temporary living area of less than 500 families; and water supply in district towns. The implication is that all other projects (irrespective of their size) would need to submit environment impact 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 organizationally attached to NEPA, they receive their budget from the municipal governments and in practice operate relatively independently of NEPA. 50. In Korea, environmental impact assessment is utilized as an important mechanism for preventing possible environmental disruption, as caused by development projects. Environment impact 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-purpose dams, large housing projects, highways, industrial complexes were able to influence government decision making processes and dilute the magnum of the environmental impact. In 1986, the Environmental Preservation Act was amended to expand the application of the EA process to non-governmental projects. 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 Environmental Administration which was elevated to the status of a full ministry with necessary powers is now in a position to request other agencies to take remedial measures, or even stop construction of projects violating the EIS. 51. In Thailand, the National Environmental Quality Act, as amended in 1978, requires state enterprises or private organizations to submit a report on the measures for prevention and remedy of adverse environmental effects to the office of the National Environmental Board for consideration and approval of the project. The ONEB has authority and responsibility to 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 included projects with dams, irrigation schemes, airports, hotel and resort facilities, thermal power plants, industrial estates, ports and harbors, etc. Registration of EA experts and consultants have been made obligatory through a ministerial decree in 1984 and EA's submitted to ONEB have to be prepared by registered parties. The functional organizations involved 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 consultant required by law, to perform the EA;(c) the project approving agency; and(d) the reviewing agency, which is the Environmental Impact Evaluation division of ONEB, responsible for the review process. Tight time schedules have been prescribed for granting approvals by ONEB, but which is extendable in case further information/data is required for consideration of the environmental impacts of the project. Non-Governmental Organizations 52. A diligent effort needs to be made to involve the public and the NGO's in preparation and review of EA's. The participation of the public has to be encouraged, and they should be present at important scoping meetings, public hearings etc., to provide information concerning project objectives associated with proposed development. In Vietnam the presence of strong quasi-political bodies (such as the peoples committee, which also functions as the local government bureaucracy) inhibits spontaneous participation of non-governmental groups, or even by the general public. There are no "true" NGOs in Viet Nam - defined as those organizations which do not receive grant funding from GOV. Typically the likes of NGO's are youth associations and Professional groups sponsored either 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 independent views on key issues. A premier non government organization is the Vietnam Resources and Environment Association, which concerns itself with ecological problems within fragile ecozones of the uplands and coastal areas. Its secretariat is the Institute of Ecological Economy, 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 environmentally aware consulting agency. 53. Another organization which has a country wide network is the Youth Organization having a membership of 21 million youth: A very large cadre among these members participate in social and environmental programs on a voluntary basis, spreading from the provincial to the local level, and within 27 Departments of the Central Government. The association is involved in multifarious programs within the areas of health, education, population, employment, welfare, forestry, minority group support, tourism, and mass media programs. 54. Sectors like agriculture especially encourage the formation of women groups for furtherance of their activities in special programs like the greening of the bare hills (under Decree 327), rice production, processing of agricultural products, fisheries development, and fruit cropping. These groups are spread across central to sub-provincial levels and are engaged in training programs, transfer of technology and disbursement of credit. 55. A strong public education, mass media program has been launched by several organizations to encourage environmentally conscious and law abiding behaviors among adults and children. This effort could be further strengthened through additional funding and scientific research. While a number of Universities and Institutes of higher learning in Vietnam are actively pursuing scientific research in environmental related disciplines, more cohesion and direction is necessary to lend content to their efforts. Several environment related newspapers and journals, with substantial annual circulation are published in Vietnam. 56. Government policy on resettlement of populations displaced by development projects are implemented by sectoral Ministries responsible for the implementation of the project. Resettlement is done on the basis of resettlement programs prepared after obtaining the options of the local people. It is not clear whether Vietnam has specific Resettlement Acts guaranteeing entitlement to the displaced persons, but resettlement programs are being implemented on the basis of executive instruction. Conclusion and Recommendations3 57. Much has been accomplished by the Government of Viet Nam in the past year: enabling legislation has been passed; MOSTE has introduced provisional EA guidelines and is close to a set of pollution standards for a large number of environmental pollutants. 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 accomplishments and optimistic about the future, with donor support for capacity-buildiiug for MOSTE and provincial agencies now firming up. Nevertheless, Viet Nam faces a number of interesting challenges and needs with respect to institutional development for environmental action. 58. The Direction of Institutional Change. Investment in and technical assistance to the environment sector in Viet Nam is increasing very quickly. Various issues, such as institutional capacity, coordination, and integration, become increasingly important with this rapidly growing activity in the I The discussion given below is largely taken from the IDRC/MOSTE, "Report of a National Workshop on Environment Policy and Program Priorities for Viet Nam, Hanoi, November 3-4, 1994". - 166 - Annex 10 Page 14 of 15 environment sector. Many of the institutional structures being developed in Viet Nam to respond to environmental management are new. There is limited experience with these issues and, 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 effectiveness and coordination, institutional changes should be introduced in consultation between the key technical and implementing agencies, in a process which is transparent (participants can understand what is happening), accountable (participants know who is responsible) and responsive (problems are understood and responded to). This procedure will help to rapidly build the confidence of participants as their technical knowledge and capacity to act also increase. 59. Appropriate institutional capacity is one of the factors most important to the success of environmental management and protection. Clearly defined tasks, suitable authority levels, and flexible coordination of different agencies are all important aspects of developing new environmental management institutions. To this end, MOSTE should play a crucial role in environmental management at the State level, but this requires recognition that most implementation of environmental regulations and planning will be done through other agencies. This will require consensus between agencies on goals, procedures and structures for action. 60. In the introduction of new methods and techniques, new terminology will be required. Use of standard international definitions for terms would reduce confusion to Vietnamese agencies just learning these terms and to foreign investors trying to understand Vietnamese requirements. An example is the frequent use of the term "EIA" to refer to industrial pollution audits (which are not intended to be environmental assessments, but only audits of emissions and technologies used). When adopting procedures which are derived from international practice, 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 Adaptive Responses for Environmental Investments. There is urgency with respect to a number of the environmental issues facing Viet Nam, such as mangrove degradation, barren lands, and increasing urban pollution. This means that investment projects for these issues could proceed relatively rapidly. This is good, but it also means that these environmental projects will be implemented with incomplete knowledge. We believe that 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 recognize these uncertainties and incomplete knowledge and form appropriate responses. These response should consist of two elements. First, environmental, social, financial, and institutional effects of the investment projects should be closely monitored 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 implementation to monitoring to project re-design will be particularly critical to the long term success of environmental investment projects in Viet Nam. 62. Environmental Program Deliverv: The Need for Integration and Coordination. The delivery mechanism will almost certainly vary with the environmental project being contemplated. For example, in the natural resources sector, it may be best for line agencies to implement projects 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, implementing action will be the responsibility of local governments. Viet Nam has relatively little experience in implementing large, multidisciplinary - 167 - Annex 10 Page 15 of 15 projects and the best program delivery mechanisms will likely evolve through experimentation. Again, monitoring of projects will be crucial to understanding what delivery mechanisms are most suitable. Because of the direct involvement of line agencies and local governments, strengthening the capacity of these agencies to manage environmental issues will be important to success of such projects. 63. An environmental project is not an infrastructure project such as a road, where relatively few institutions need to be involved. Environmental management and protection requires the involvement of a great many disciplines and therefore, the involvement of many institutions. Therefore, the need for integration and coordination of efforts can not be overemphasized. The fact that line agency institutions are generally not suited at the present time for this integration and coordination function means that the responsibility for integration and coordination will likely fall to management and planning institutions, such as SPC, provincial/municipal Planning Departments, MOSTE, and DOSTE. Appropriate technical assistance in project integraiion and coordination will likely be required. 64. Environmental Training of National Management Institutions. The role of national management institutions is vital to the successful implementation of any formal action plan. These institutions, such as the SPC, are currently best positioned institutionally to provide integration and coordination, and are the institutions with which the intemational aid 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 international project approaches and procedures. This should be accompanied by assistance to these institutions in implementation of any formal action plan that is produced, so that Viet Nam can become more proactive in ongoing development, management, and review of its environmental project portfolio.