Report No. 1 3200-VN

Viet NamEnvironmental Program and Policy Prioritiesfor a Socialist Economy in Transition(In Two Volumes) Volume Il: The Supporting Annexes

February 27, 1995

Agriculture and Environment Operations DivisionCountry Department IEast Asia and Pacific Region

.. *4~ ~ ~~~~~~~A. :

4 ~ ~ ~ ~ ~ 4

$4~ ~ ~ ~~~~~~~~~~~~~~~4

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EOUIVALENTS

The Vietnamese currency is the dong (D)

Calendar 1993 August 1994US$1.00 = D10,640 US$1.00 = D11,000D 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 BankAIDAB - Australian International Development Assistance BureauASEAN - Association of South East Asian NationsASS - Acid Sulphate SoilsBAP - Biodiversity Action PlanCIDA - Canadian International Development AgencyCEST - Center for Environmental Science and TechnologyCEMA - Council of Mutual Economic AssistanceCOM - Council of MinistersDFCS - Department of Fixed Cultivation and Sedenterzation, MOFEA or EIA - Environment AssessmentEPZ - Export Processing ZoneESCAP - Economic and Social Council for Asia and the PacificESMAP - Energy Sector Management Assistance ProgramFAO - Food and Agriculture OrganizationFINNIDA - Finnish International Development AgencyFIPI - Forest Inventory and Planning InstituteGDLA - General Department for Land AdministrationGDP - Gross Domestic ProductGOV - Government of Viet NamHCMC - Ho Chi Minh CityIDA - International Development AssociationIPM - Integrated Pest Management

ACRONYMS (continued)

TUCN - International Union for Conservation and NatureJICA - Japan International Cooperation AgencyMAFI - Ministry of Agriculture and Food IndustryMDMP - Mekong DeltaMFAP - Ministry of Fisheries and Aquatic ProductsMOC - Ministry of ConstructionMOE - Ministry of EnergyMOF - Ministry of ForestryMOFA - Ministry of FinanceMOH - Ministry of HealthMOHI - Ministry of Heavy IndustryMOLI - Ministry of Light IndustryMLISA - Ministry of Labor, Invalids and Social AffairsMOSTE - Ministry of Science, Technology and EnvironmentMWVR - Ministry of Water ResourcesNEA - National Environment AgencyNGO - Non-governmental OrganizationNIAPP - National Institute for Agricultural Planning and Projections, MAFINLEP - National Law on Environment ProtectionNPEB - National Project Evaluation BoardNPESD - National Plan for Enviromnent and Sustainable DevelopmentNPV - Net Present ValueOOG - Office of the GovernmentPPC - Provincial Peoples CommitteeSCCI - State Commission on Cooperation and InvestmentSCP - State Commission on PricesSIDA - Swedish International Development AgencySPC - State Planning CommitteeTA - Technical AssistanceUNCED - United Nations Council for Environment and DevelopmentUNDP - United Nations Development ProgramUNEP - United Nations Environment ProgramVND - Viet Nam Dong (currency)WFP - World Food ProgramWHO

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR A SOCIALIST ECONOMY IN TRANSITION

CONTENTS

Volume IIPage No.

Annex 1 Statistical Annex ................................. I

Annex 2 Index of Susceptibility to Deterioration ....... .............. 49

Annex 3 Forest Degradation and the Evolutionof Barren Lands ................................. 57

Annex 4 Viet Nam War Damnages and the Environment ...... ........... 70

Annex 5 Hill Area Programs with EnvironmentalImplications: 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 andRegulatory System .153

Annex 1Figures l.a - l.c

Page I of 48

VIET NAM: INTERACTIONS OF INSECTICIDE ANDFERTILIZER USE ON PLANTHPPER DENSITIES, TIEN GIANG

NUMBER OF BPH/W8PH ECGSPER 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 NYPtHSPER SMtPLtNC UNIT (0.05 MM)N. MEN ClNG

") 4000

3500

3000

2300

1500

1000

500

018 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 NYMPHSPER SAMPLING UNrr (0.05 M23. TIEN GlANG

C) 1000-

900 soo -700

500-400300

200

018 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 rplanting3tmtmentLFanret. fields Tien Clang Mekong Deta. Vieman 1991.

SOURCE: FAO: InterCountry IPM Progam

-2-

Annex 1Figures 1.d - 1.f

Page 2 of 48

VIET NAM INTERACTIONS OF INSECTICIDE AND

FERTILIZER USE ON BPH PREDATOR DENSITIES

NUMBER OF CYRrORHINUSPER 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 wATERSuSPER SAMPLING UNrr (0.05 M2). nEN CLANG

e) s0

so

40.

30

20

t°o

018 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 SPIDERSPER SAMAPLING UNIT (0.05 M21. TIEN IANG

S) s0 I70.

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 1Page 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 1157Tuycn Quang 643 241 1828 3737 496 128Cao Bang 850 593 958 4617 2336Lang Son 791 503 3070 1592 2388 352Bac Thai 660 2661 3318 512 113Lai Chau 1733 4225 11316 1793Son La 1440 4971 9427Yen Bai 770 599 3953 2778 374Lao Cai 690 799 2685 3410Guang Ninh 516 23 4709 425Vinh Phu 451 1593 2691 230Ha Bac 492 1159 3628 130Ha Noi 99 817 173i{ai Phong 123 1047 186Ha Tay 252 1268 1146 110Hoa Binh 428 733 2022 194 1333Hai Hung 267 2452 217Thai Binh 151 1507Nam fia 186 1540 192 127Ninh Binh 168 72 1448 154Thanh l{os 1145 348 2728 4141 3436 800Nghe An 1684 1095 2950 5372 6393 1027Hsa linh 607 1973 3660 438Guang Binh 847 3240 5042 187Quang Tri 496 1318 1710 1927Thua Thien-ilue 466 383 596 324 3358Qang Nam Da-Na 1200 40 1446 7957 2560Quang Ngai 520 736 2903 387 1172Binh Dinh 634 249 2871 1187 2035Phu Yen 521 688 1528 620 2374Khan lloa 484 1084 765 814 2180Ninh Thuan 356 2721 843Binh Thuan 815 7528 620Gia Lai 1489 8093 6798I;onTum 1086 944 9911I)ac Lac 1879 6723 11899 167Lam Dong 1024 2483 7752Dong Nai 594 5935Son Be 936 8828 535Tay Ninh 400 4004llo Chi Nlinh 190 1897Vung Tau- Ba Ri 190 1901Long An 446 4455Tien Giang 227 2274Ben Tre 212 2119Dong Thap 316 3158Vinh Long 154 1543Tra Vinh 202 2017Can Tho 302 3016Soc Trang 327 3271An Giang 331 3305Kien Giang 582 5824Minh 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 ITable 2

Fire Damage 1990-1992 (in ha) Page 4 of 48

Province Natural Forest Planted Forest Naturnl Forest Planted Forest Natural Forest Planted Forest1990 19 191991 1991 1992 1992

Ha Tuyen 35Ha GClngTuyen QuingCao Bang 0 3 18Lang SonBac Thai 0 6LJi Cbau 1000 73Son La 134Hoang Lieng Son 10Yen BaiLao CaiGuang Ninh 60 13 220Vinb Phu 10 6Ha Brclis NolHai Phonglb Son Binh 0 3fin TayHon Binh 6 4lIai [lungThai BinhHIa Nam Ninh 0Nam fiaNinh BinhThanh boa 16Ngbe Tinh 0 420 35Nghe An 29fin Tinh lieBinh Tri ThicnGuang BinbQuang Tri 276 6lThus Thien-llue 5 3 30 43Qang Nam Da-Ns 0 9 9 379Quang BinhQuang Ngai 9 47Binh DinhPhu Khan 257 21Phu YenKhan lIor 34 56Thuan liii 210 27 244 12Ninh ThuanBinh ThuenGin iai-Kon Tum S4 37 483 117Gin LaiKon Tum 1700Dac Lac 70 62 121Lam Dong 3210 417 1401 647 524 316Dong Nai 98 1159 IS0 519Son Be 0 209Tny Nich 26 53llo Chli linhVung Tau- En Rim 57 22 43Long An 0 543 2300Tien GiangBen TreDong ThapCuu LongVian LongTra VinhIbu GlangCan ThoSoc TrangAn Glang 1919 1130 427Kien Gibng 3561 too 407 1652Minh Hal 3087 1563 330 2400

Totals 10348 69S2 3379 6531 566s 20S7

Source: FIPI, I992

Abnex 1Table 3

Page 5 of 46

Total Forest Area (in thousand ha)

Province 1943 1973 1985

Ha Giang 730 i18 159Tuyen Quang 591 161 159Cao Bang 848 301 46LAng Son 753 165 146Bac Thai 543 297 127LA lChau 1447 111 230Son La 1407 336 125Yen Bai 765 388 103Lao Cai 690 390 75Guang Ninh 371 239 82Vinh Phu 122 123 51Ha Bac 66 138 47Ha Noi 0 110 Ili Phong 0 0 0Ha Toy 0 11 3Hoa Binh 197 112 81Hai Hung 22 4 3Thai Binh 0 0 0Nam Ha 0 0 0Ninb Binb 5 4 0Thanh Hon 874 582 295Nghe An 1006 1024 732Ha Tinh 393 293 272Guang Binb 537 259 208Quang Tri 381 210 52Thus Thien-liuc 333 275 219Qang Nam Da-Nang 879 707 327Quang Ngal 170 125 103Binh Dinh 202 221 157Phu Yen 402 284 116Khan Hoa 412 266 13SNinh Thuan 320 63 124Binb Thuan 444 209 259Gin Lai-Kon Tum 2286 1458 1331Dac LAc 1865 l00l 907Lam Dong 996 582 755Dong Nai 378 318 247Son Be 610 536 226Tay Ninh 157 126 75la Chi Iinh 0 35 39Vung Tau- Ba Rir 119 93 27Long An 0 0 19Tien Giang 0 IS 16Ben Tre 48 12 7Dong Thap 0 0 0Vinh Long 0 0 0Tra Vinb 65 17 18Can Tho 4 0 0Soc Trang 41 19 4An Giang 40 7 0Kien Giang 288 128 4Minh lali 437 216 157

Totals 22244 11889 8272

Sources: Niourand, 1943. Forest Inventory and Planning Instiste, 1973, 1987.

-6-

Annex 1Table 4 (p.1)Table 6 of 48

Land Use and Land Cover 1985 (in thousand ha)

Province Total Agriculture Annual Perennial Pasture Water Total NaturalArea Land Agriculture Agriculture Bodies for Forest Forest

Land Land Irrigation V

Ha Tuyen 1363 145 115 23 6 1 477 426Cao Bang 844 75 56 6 12 0 209 196Lang Son 819 96 51 17 27 0 148 115Bsc Thai 650 88 60 13 12 3 220 207Lai Chau 1714 108 78 7 22 0 64 61Son La 1421 143 100 6 37 1 129 122Hoang LiengSon 1485 187 99 20 52 IS 259 219Guang Ninh 594 59 34 7 16 2 229 188Vinh Phu 457 154 117 24 7 5 108 89Hl Bac 462 155 145 5 0 5 87 70Ila Noi 215 107 96 2 3 7 8 2HaiPhong ISO 62 56 1 0 6 5 3lIkSon Binh 579 149 124 4 15 6 189 176llai Hung 255 161 148 2 0 11 12 3Tbai Binh 153 105 98 1 0 6 1 0Ila Nam Ninh 380 224 199 8 4 13 12 10Thanh Hon 1114 259 200 16 36 8 308 249Nghe Tinh 2249 321 252 38 23 8 825 768Binh Tri Thien 1756 170 154 8 7 1 552 510Qang Nam Da-Nang 1198 117 107 4 2 4 469 459Quang Binh 1190 179 168 6 2 3 206 195Phu Khan 980 120 110 6 2 2 422 418Thuan lizi 1137 128 114 10 3 1 348 345Gia Lai-Kon Tum 2560 181 130 21 26 3 1472 1467Dac Lac 1980 135 86 36 12 0 1294 1284Lam Dong 1017 61 44 15 0 1 630 621Dong Nai 759 291 195 95 1 1 267 246Son Be 955 202 88 112 1 0 255 253Tay Ninh 403 207 176 11 0 20 65 64llo Chi Ntinh 206 93 84 8 0 1 32 15Vung Tau- Ba Ri 24 4 1 1 0 2 2 2Long An 434 194 188 5 0 1 16 0Tien Giang 234 169 127 41 0 0 17 0Ben Tre 225 152 103 46 0 3 3 3Dong Thap 328 222 210 9 0 2 8 0Cuu Long 386 277 230 47 0 0 2 0Hsu Giang 616 491 442 48 0 1 7 4As Giang 342 245 239 3 0 3 16 0lIen Gisng 624 282 251 29 0 2 92 57Nlinh 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 ITable 4 (p.2)Page 7 of 48

Land Use and Land Cover 1985 (in thousand ha)

Province Planted Total Flat Upland OtherForest Unused Unused Unused Land

Land Land Land

Ha Tuyen 51 534 0 534 208Cao Bang 12 326 0 326 235Lang Son 33 507 0 507 68BacThai 13 233 4 229 110LAi Cbhu 4 1452 0 1452 90Son LA 7 1086 0 1086 63Hoang Lleng S 39 861 0 861 179GuangNinh 41 175 11 163 131Vinh Phu 19 113 2 111 83Ha Bac 17 55 4 Sl 165Ha Noi 6 23 4 20 76lial Phong 1 3 2 2 80Ha Son Binh 13 136 1 135 106Hli Hung 9 4 1 2 79Thai Binh I I 1 0 46Ila Nam Ninh 2 12 3 9 132Thanh lion 59 408 11 397 139Nghe Tinh 57 863 23 840 240Binh Tri Thien 42 686 21 665 349Qang Nam Da- 10 484 10 474 128Quang Binh 12 686 23 663 118Phu Khan 4 220 9 211 219Thuan llai 3 550 47 503 IIIGin Lai-Kon T 6 827 0 827 79Dae Lac 10 499 0 499 52LAm Dong 9 217 0 217 110Dong Nai 21 122 32 91 78Son De 2 445 21 424 52Tay Ninh 1 98 53 45 33llo Chi IHinh 17 10 10 0 71Vung Tau- Ba 0 10 3 7 8Long An 16 178 178 0 46Tien Giang 17 13 13 0 36Ben Tre 0 14 14 0 56Dong Thap 8 43 43 0 55Cuu Long 2 20 20 0 87llau Giang 3 19 19 0 100An Giang 16 28 27 1 53Kien Giang 35 201 175 25 50hlinh hai 4 106 106 0 87

Totals 619 12266 888 11378 4207

Sourcc: General Department of Land Nianagemcnt, 1985.

- 8 - Annex 1TaIble 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 ForestArea Land Agriculture Agriculture for Irrigation

LAnd

Ha Glng 733 130 88 26 a 33 1 207Tayen Q g 530 90 45 30 a 35 2 143Cao B ag 844 73 56 30 6 11 0 1K6LangSou 817 35 50 37 16 13 1 142B cThai 650 75 61 49 11 0 3 196LaiCh a 1714 107 81 43 6 20 0 132Son LA 1421 174 126 52 7 37 4 1"Yen Bal 680 71 41 24 15 21 1 178La oCa 805 39 60 24 5 22 1 124Guang Nbh 594 51 33 28 5 7 6 236VinhPhu 484 146 118 96 19 2 7 75Ha Bac 461 147 137 124 5 0 5 75Ha Nol 92 44 41 35 0 0 3 7HalPhong 150 68 56 54 5 0 7 4Ha Tay 215 122 110 95 3 1 a 9Hoa Binh 461 72 54 29 2 15 2 221Ha Hung 255 160 145 134 5 0 10 11ThI Binh 152 104 96 89 1 0 6 1Nmn Ha 242 158 143 130 3 0 11 1Ninh Bbinh 139 64 55 49 4 2 3 12Thanh Hoa 1117 255 197 151 16 35 7 297NgheAn 1638 133 136 104 43 5 3 594Ha Tinh 605 106 38 74 18 0 1 229Guang Bbh 793 Ss 47 34 5 5 0 309Quang Tri 459 51 42 29 6 3 1 93ThuaThien-Hue 501 49 46 34 1 1 1 188Q:2 Nf Da-Nang 1199 114 97 57 15 1 1 4UQung Ngal S86 37 30 45 6 0 1 63Binh Dinh 608 97 79 55 10 5 2 167Phu Yen 522 60 53 34 3 2 1 136Khan Hoa 526 52 42 22 7 1 2 154NinhThum 343 42 33 15 2 1 1 97BinhThan 799 as 79 45 7 2 0 3S4Gia Lad-Kon Tun 2560 197 130 75 38 26 3 1472Doc Lsc 1980 174 34 33 31 8 2 1227Lan Dong 1017 33 42 22 39 1 1 630Dong Na 586 228 138 41 38 0 2 172Son Be 955 202 88 43 112 1 0 235Tay Nnh 402 206 174 106 32 0 0 43Ho Chl Mlnh 209 93 82 62 10 0 2 34Vng Tau- BRla 1% 30 44 15 32 1 3 37Long An 434 211 205 133 6 0 1 58TienGlang 234 166 117 103 48 0 1 11Ben Tre 225 153 102 36 48 0 3 aDongThap 328 212 193 1U4 16 1 2 17Vibh Long 149 115 39 K6 26 0 0Tr Viah 237 159 135 126 24 0 0 19CanTho 305 231 197 179 34 0 0 11SocTraug 311 214 133 175 22 0 4 5An Gbyg 342 235 229 208 3 0 3 7KlenG Cng 624 271 216 205 50 0 5 98Mbh 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 1Table 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 OtherLdForest Unused Land

HeGiang 15 192 381 1 330 65TuyenQuang 22 121 292 1 291 55CaoBang 7 179 326 0 326 260Lang Son 31 112 511 0 511 79Bc Thal 7 190 251 0 251 128LeiChau S 127 1333 23 1360 91Son La 12 137 970 9 961 78Yen Bai 27 150 330 0 330 95Lao Cai 7 117 439 S 434 103Guang Nibh 63 224 93 11 31 164Vlnh Pbu 16 S3 170 3 167 93Ha BaC 16 58 125 6 119 115Ha Noi 7 0 3 1 2 38HaiPhong 1 3 17 15 2 62Ha Tay 7 2 12 2 10 72Hoa Blab 13 208 113 0 113 55Ha Hung 11 0 6 2 4 78Thai Binh 1 0 6 6 0 28NanHa 1 0 6 5 2 76Ninh Binh 2 10 13 6 7 49ThanhHoa 55 242 394 14 330 170Nghe An 27 567 716 17 699 140Ha Tlnh 29 200 205 24 131 66GuangBinh 28 281 235 11 224 196Qung Trl 16 78 259 4 254 56Thua Thlen-Hue 6 181 212 28 134 52Qang Non Da-Nang 25 459 490 95 395 111Quang Ng[ 10 53 279 16 263 156Binh Dinh 25 142 264 24 240 30Phu Yen 2 134 235 7 273 42Khan Hoa 1 154 212 14 199 107NhinlThumn 0 97 150 7 143 54Blnh Thuan 1 353 252 41 211 105Gba Lal-Kon Tum 6 1467 313 7 311 270Dac Lac 14 1213 473 8 470 100Lam Dong 9 621 167 0 167 137Dong Nal 32 140 36 22 64 101Son Be 2 2U3 416 21 394 52Toy Nlnh 2 41 33 64 19 71Ho Chi Minh 13 16 10 10 0 72VungTsu-BaRix 17 19 S0 17 33 29Long An 48 10 104 104 0 61Tlen Glang 10 1 13 18 0 39Ben Tre 3 5 12 12 0 52Dong Thap 0 17 29 29 0 69Vinh Long 0 0 1 1 0 33Tra Vinh 2 17 14 14 0 44Cm Tho 11 0 2 2 0 62Soc Trang 5 0 19 19 0 73An Gang 7 0 54 44 10 46Kien Glang 20 78 174 166 a 82Minh 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 WaterArea Land Agriculture Rice Agrculture Bodies for

Land Irr4Letion

Ha Giang 783 130 88 27 8 33 1Tuyen Qug S8D 71 38 26 10 21 2CaoBang 344 73 56 29 6 11 0Lang Son 319 84 49 37 16 13 1Bac Tha 650 75 61 49 11 0 3LaiChan 1713 109 84 43 6 19 0Son LA 1421 174 124 51 8 37 4Yen Ba 631 73 40 24 11 25 1LAoCai 805 31 54 26 4 23 1Guang Ninh 594 57 33 28 5 7 12Vinh Phu 483 140 114 94 19 2 6Ha Bac 462 147 136 123 5 0 5Ha Noi 92 44 41 35 0 0 3Ha Phong IS0 63 56 54 5 0 6Ha Tay 215 174 109 95 6 1 8Ho Binh 461 72 54 29 6 10 1Hal Hung 255 1S3 143 133 6 0 9Thd Binh 151 104 96 39 1 0 6Nan Ha 249 153 143 130 4 0 11Ninh Bbih 139 64 55 49 4 2 3ThanhHos 1117 243 192 148 16 29 7Nghe An 1637 179 132 103 42 2 3Ha Tinh 605 105 37 74 17 0 1G'eg Binh 798 59 48 33 5 5 0Quang TH 459 60 50 31 7 2 0Thus Tbien-Hue 501 47 43 32 2 1 1Qng Nam Ds-Nag 1198 113 96 57 16 1 1Q(ungNoa S1 36 79 41 6 0 1Binh Dinh 607 98 31 54 12 4 2PhuYen 528 60 53 34 4 2 1Khan Hoa 525 52 42 22 8 1 2Ninh Thumn 343 35 31 15 1 1 1Binh Thuan 79g 89 79 45 8 2 0GiaLal 1621 132 113 64 40 21 6Kon Tmn 93 108 34 23 60 12 0Doc LAc 1980 10 91 38 80 a 2Lan Dong 1017 103 54 30 47 1 1Doug Nd S86 258 150 46 107 0 1Son Be 952 287 37 61 199 1 0Tay Ninh 402 203 174 106 34 0 0Ho Chi Mitb 209 92 s0 61 10 0 2Vung Tau- B Ris 197 91 41 19 45 0 4Long An 434 237 231 212 6 0 1Tien Gang 234 169 119 104 49 0 1Ben Tre 225 153 102 86 48 0 3Dong Thap 327 212 193 184 16 1 2Vinh Long 149 117 94 91 24 0 0Tra Vinh 237 159 135 126 24 0 0CanTho 296 244 216 202 28 0 0Soc Trang 319 241 219 175 22 0AnGiang 342 242 237 221 2 0 2Kien Glag 624 287 243 236 35 0 8Minhhda 769 536 316 305 85 0 135

Toetl 33098 7393 5520 4250 1247 306 270

Source: General Departent of LAnd Mangement, 1991.

- 11 -

Annex 1Table 6 (p.2)Page 11 of 48

LAND USE AND LAND COVER 1993 (In Thousand Ha)

Province Total Planned Natural Total Flat Upland OtherForest Forest Forest Unused Unused Unuted Land

Land Land Land

Ha Glang 212 15 197 368 - 368 73Tuyen Quang 178 33 145 273 6 267 58Cao Bang 91 2 89 356 0 356 324Lang Son 151 39 112 504 0 504 80Bac Thal 135 7 126 314 0 314 128Lai Chau 174 6 168 1339 21 1318 91Son La 152 13 139 1019 9 1010 76Yen Bal 159 36 123 360 0 360 34Lao Cai 162 10 152 412 0 412 IS0GuangNinh 153 27 126 250 13 237 134Vinh Phu 151 38 113 98 3 95 94Ha Bac 140 29 111 59 6 53 116Ha Noi 7 7 3 1 2 38Hai Phong 5 1 4 11 9 2 66Ha Toy 10 8 2 10 3 7 71Hoa Blnh 148 35 113 149 0 149 92Hai Hung I1 9 2 6 2 4 80Thal Binh 2 2 4 4 41Nam Ha 4 4 0 16 14 2 71Ninh Binh 14 3 11 12 5 7 49Thanh Hoa 418 66 352 282 15 267 174Nghe An 584 29 555 738 17 721 136Ha Tlnh 187 24 163 253 21 232 60Guang Blnh 412 24 388 130 12 118 197Quang Tri 98 17 81 274 22 252 27Thua Thien-Hue 170 15 155 209 10 199 75Qang Nan Ds-Nan 159 16 443 521 22 499 105Quang Ngal 139 20 119 244 15 220 49Binh Dinh 181 31 150 159 23 136 169Phu Yen 164 6 158 230 3 222 74Khan Hos 158 2 156 196 15 181 119Ninh Thuan 181 1 180 49 27 22 78Binh Thuan 435 1 434 220 91 29 55Gin Ld 791 8 785 540 540 108Kon Tum 671 3 668 172 172 42Dac Lac 1268 15 1253 419 10 409 113Lam Dong 564 11 553 262 29 233 38Dong Nai 151 30 121 78 27 51 99Son Be 250 10 240 174 174 241Tay Nlnh 43 2 41 32 63 19 70Ho Chi Mlnh 24 17 7 19 10 9 74Vung Tau- Ba Ra 59 14 45 14 9 5 33Long An 48 48 aS 85 0 64Tlen Glang 11 11 IS 15 0 39Ben Tre 3 3 16 16 0 53Dong Thap 47 47 0 68Vinh Long 0 1 1 0 31Tra Vlnh 2 2 32 32 0 44Can Tho 3 3 0 3 3 0 46Soc Trang 3 1 2 23 23 0 52An Glang 9 9 0 28 28 63Kien Gang 77 24 55 180 163 17 30Minh 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 1Table 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 PlantedForest Forest Forest Forest Production Production Forest

Foretl

Ha Tuven 1004 350 654 147 1S5 18 111 36CaoBang 564 183 331 103 65 46 97 6LangSon 634 142 492 37 49 7 56 31BacThai 404 196 203 122 68 7 113 9Lai Chou 1509 135 1374 52 55 23 47 5Son La 963 133 325 62 61 14 54 8Hoang Lleng Son 1062 223 834 119 104 5 90 29Guang Ninh 39S 193 202 148 31 15 106 42Vinh Phu 179 71 108 31 27 13 17 14Ha Bac 152 75 77 64 8 3 48 16Ha.Nol 23 9 14 6.2 1.7 1.3 -1.8 8HadPhong 16 4 12 0 2.8 1.2 -1 1Ha Son Binh 309 151 158 62 76 13 53 9Hal Hug 13 S S 4.7 0 0.3 2.7 2Thai Binh 5 1 4 0 1.4 0 -1 1Ha Nan Ninh 28 13 15 0.6 1.7 10.5 -I.J 2Thanh Ho. 649 297 352 192 32 23 137 55N*ghe Tlnh 1472 764 708 496 247 21 454 42Guang Bih 497 309 IS 201 102 6 173 28Quang Ti 308 9° 209 55 42 2 35 20Thua Thkn-Hue 351 137 164 92 69 27 76 16Qang Nwn, De-Nang m8 484 404 287 173 24 262 25QungNgd N, 397 117 230 77 40 0.2 56 21Binh Dinh 413 167 246 131 30 6.5 106 25Phu Yen 216 74 142 70 1.7 1.7 68 2Khan Hoe 300 219 81 174 34 12 168 6Thuan Hal 774 564 210 421 126 17 419 2Gin Lad-Kon Turn 1953 1496 457 1070 302 125 1059 11Dac Lac 1384 1204 180 923 179 102 903 20Lam Dong 701 630 71 411 131 78 402 9Dong Nai 250 217 33 170 7.7 40 113 52Son Be 454 284 170 227 22 36 225 2Tay Nblh 102 46 56 24 13 10 22 2Ho Chi Minh 36 20 16 17 0.3 2.7 -2 19Vung Tau- Ria Rs11 3 0 1.3 6.2 -1 1Long An 16 5 11 4.7 0 0 -0.3 5TienGiang 14 11 3 35 2.2 0 0.5 SBen Tre 12 3 4 7.8 0.1 0.4 0.3 7DongThap 21 12 9 &I 0 3.7 -3.9 12Cuu Long 24 4 20 4.3 0 0 0.3 4Hau Glang 22 7 IS 3.6 3A 0 -0.4 4An Giang 61 10 Sl 10.1 0 0.1 1.1 9Kien Giang 125 57 6S 25.5 7.4 24.6 23.5 2NIlnh 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, RomeNotes: Negative numbers appear because this I Production mdnu planted

- 13 -Atnel 1Table 8

Page 13 of 49

Land Allocated by the Ministry of Forestry 1991 (in thousand ha)

Provlce Aflocated Land Allocated Land Allocated Land AvailableLndas of 191 with Forest w/o Forest w/o Forest

Ha Tuyen 261 78 193 471Cao Bang 247 101 146 235Lang Son 207 83 124 368Bac Thai 235 44 191 17LaiChau 204 9 195 1179Son La 291 31 260 565Hloang Lieng Son 155 38 117 717Gusng Ninh 123 54 69 133Vinh Phu 69 29 40 68la Bac 74 33 36 41Ha Noi 5 0 5 9Hai Phong 2 2 0 12Ha Son Binh 106 32 74 S4Hai Hung I 0 1 7Thal Binh 0 0 0 4Ha Nam Ninh I 1 2 9 6Thanh lion 313 135 178 174Nghe Tnh 343 157 186 522Guang Binh 131 31 100 88QuangTri 67 23 44 165Thua Thien-Hue 66 44 22 142Qang Nam Da-Nan 179 51 128 276QuangNgai 169 15 154 126Blnh Dinh 179 14 165 S1Phu Yen 141 86 55 87Van lloa 153 99 64 17Thuan llal 236 89 147 63Gia Lai-Kon Tum 36 34 2 455Doc Lac 48 44 4 176Lam Dong 15 4 11 60Dong Nai 70 58 12 21Son Be 102 67 35 135Tay Nlnh 0 0 0 56lilo Chl Minh 15 6 9 7Vung Tau- Ba Ria 0 0 0 3Long An 0 0 0 11Tien Glang 13 0 18 -isBen Tre 0 0 0 4Dong Thap 0 1 -1 10Cuu Long 2 0 2 18IlauCGiang 0 0 0 15An Giang 0 0 0 51VIenGlang 74 8 66 2Minh 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 1Ta.ble 9

Page 14 of 48

NIAPP Estimate of Unused Land 1993 (in thousand ha)

Province Total Unused Unuwd Land Unused Land OtherArea Land with Potentbi with Potential Unused

for Agric. Dev. for Forestry LandDev.

Ha Giang 783 392 62 263 67Tuyen Quang 580 274 102 149 23Cao Bang 845 431 24 231 176Lang Son 819 496 76 388 32Bac Thai 650 235 40 178 17Lai Chau 1714 1346 86 1202 58Son La 1421 1002 75 856 71Yen Bal 663 431 88 317 26Leo Cii 750 5S3 103 406 44Guang Nnh 594 206 11 185 10Vinh Phu 457 119 49 66 4HaaBac 462 112 15 88 9Ha Noi 100 10 0 6 4HaiPhong IS0 20 2 6 12Ha Tay 217 22 1 12 9Hoa Binh 470 143 14 120 9Hal IHung 255 22 1 14 7Thai Binh 153 24 6 15 3Nam Ha 242 39 7 16 16Ninh Binh 139 26 5 5 16Thanh lloa 1117 405 58 276 71Nghe An 1645 792 81 633 78lla Tinh 605 173 53 58 62Quang Binh 794 268 37 32 149Quang Tri 459 290 51 185 54Thua Thien-Iluc 501 201 31 164 6Qang Nam Ds-Nan 1199 593 27 553 13Quang Ngal 585 251 4 236 11Binh Dinh 608 272 19 223 30Phu Yen 518 333 21 215 97Khan Iloa 463 217 13 192 12Ninh Thuan 353 153 29 122 2Binh Thuan 789 380 73 263 44Gin Lai 1200 604 323 243 38Kon Tum 1300 432 85 309 38Dac Lac 1980 411 228 180 3Lam Dong 1017 250 72 145 33Dong Nal 759 207 96 101 10Son Be 955 3S6 147 209 0Tay Ninh 402 123 66 57 0lio Chi Minh 203 4 1 1 2Vung Tau- Ba Ra 205 16 2 14 0Long An 438 149 77 72 0Tien Glang 234 32 6 25 1BenTre 225 17 10 7 0Dong Thap 328 47 39 6 2Vinh Long 149 7 4 3 0Tra Vinh 236 11 7 4 0CanTho 302 27 15 6 6SocTrang 314 29 11 11 7An Glang 342 18 7 8 3Kien Gang 624 196 89 95 12Minh 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 10Page 15 of 4B

Fuelwood Stock (in thousand steres)

Province 1986 1987 1988 1989 1990 1991

Ha Tuyen 1339 1261 1189 1197 1191 1546Cao Bang 2039 2918 2166 2299 2054 2173Lang Son 1496 1721 1838 1541 1376 1585Bac Thai 434 523 572 771 674 672Lai Chau 531 1261 1189 1197 1191 1192Son La 1016 1248 1098 1183 1102 1128Hoang Lieng Son 1064 1507 1277 1395 1649 1440Guang Ninh 940 902 715 847 864 809Vinh Phu 618 450 700 960 990 883Ha Bac 650 727 652 573 628 618Ha NoiHai PhongHaSonfBinh 137 1219 1187 1184 1125 1165Hal HungThai BinhHa Nam NinhThanh Hoa 3454 3071 3128 2938 3017 3028Nghe Tinh 2570 2320 2031 3129 3683 2948Binh Tri Thien 1407 980 976Guang Binh 257 296 277Quang Tri 197 206 201Tbus Thien-Hlue 364 376 247QangNam Da-Na 1243 1112 915 1733 1698 1449Thuan lai 680 417 577 524 566 556Gia Lai-Kon Tum 1076 1076 990 783 832 868Dac Lac 598 876 1318 1525 1819 1554Lam Dong 581 608 669 743 703 705Dong Nai 407 496 497 176 337 337Son Be 125 659 741 722 700 721Tay Ninh 541 364 479 181 293 318Ho Chi Mlinh 89 48 74 51 50 58Long AnMinh haiNorthern Mlountai 9477 11791 10744 11389 11091 11428Red River Delta 3246 3842 2836 2391 2436 2210North Central Co 7437 6374 6137 6902 7576 6700South Central Cos 2938 2829 2772 3284 3323 3126Southern Highlan 2255 2560 2977 3051 3354 3127North East Mekon 1162 1567 1791 1130 1381 1434Mekong 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 tlPage 16 of 48

Wood Cutting Production (in thousand m3)

Province 1986 1987 1988 1989 1990 1991

Ha Tuyen 200 228 162 149 175 162Cao Bang 32 89 64 58 55 59LAng Son 82 56 58 60 S0 56Bac Thai 62 60 87 91 100 92LaiChau 115 142 120 117 115 117Son La 63 104 68 94 91 84Hoang Lieng Son 192 181 194 143 136 158Guang Ninh 97 94 81 61 66 69Vinh Phu 103 70 72 82 90 81Ha Bac 91 105 101 73 72 82Ha Noi 42 40 38 42 43 41Hai Phong 30 29 28 25 28 27lia Son Binh 85 87 87 79 75 80Hai Hung 60 53 49 52 65 55Thai Binh 56 30 34 25 32 30Ha Nam Ninh 93 41 84 68 71 74Thenh Hoe 128 125 115 101 104 107Nghe Tinh 131 134 182 164 294 214Binh Tri Thien 96 106 103Guang Binh 37 49 43Quang Tri 16 18 17Thua Thien-Hue 39 39 39Qang Nam Ds-No 56 73 70 128 122 107Thuan lisi 24 31 31 53 70 52Gia Lai-Kon Tum 94 137 150 176 161 162Dac Lac 212 .259 191 l18 368 247Lam Dong 120 131 154 95 187 145Dong Nai 112 95 87 77 72 79Son Be 148 IS0 142 126 108 125Tay Ninhlle Chi NlinhLongAn 25 243 54 154 145 117Nlinh hai 45 78 82 127 113 107Northern Mountai 947 1024 904 854 877 878Red River Delta 545 465 496 424 384 423North Central Co 489 501 S00 - 397 505 459South Central Cox 194 195 200 237 298 245Southern llighlan 658 745 695 648 716 704North East Mekon 357 310 312 229 213 251Mlekong 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 1Table 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 ElectricityResidue

RuralNorthern 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%

UrbanNorthern 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 1Table 13

Page 18 of 48

Vietnam: 1992 Estimated Quantity of Residential FuelConsumption for Cooking and Boiling Pig Food

Region Crop Fuelwood Charcoal Coal Kerosene ElectricityResidue

('000 tons) ('000 tons) ('000 tons) ('000 tons) ('000 m3) (GWh)

RuralNorthern Highlands 6829 4118 0 108 0 0North Midlands 1972 1189 0 31 0 0Red River Delta 2522 1140 0 730 0 48North Central 6875 2707 0 0 0 0Southern Highlands 2973 1171 0 0 0 0South Central 4524 1781 0 0 0 0N.E. of Mekong Delta 1364 2591 45 0 0 26Mekong Delta 3991 7579 132 0 0 75

Rural Totals 31050 22276 177 869 0 149

UrbanNorthern Highlands 193 332 5 87 5 0North Midlands 54 97 1 24 1 0RedRiverDelta 37 313 0 336 17 102North Central 147 253 24 36 4 0Southern Highlands 96 165 16 24 2 0South Central 255 438 42 63 6 0N.E. of Mekong Delta 0 1142 180 0 59 26Mekong 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 24of Oil Equivalent)

Source: 1993 UNDP/ESMAP Study

- 19 -

Annex ITable 14

Page 19 of 48

Population and Other Variables (population and area figures in thousands)

Province Total Total Population Rural Rural Net Non-h inhPopulation Population Growth Rate Population Households Mligration Percent of

Population1979 -- 1989 1979-89 939 1989 1939 1992

Ha Tuyen 774 1026 3 930 160 -14 67Cao Bang 471 565 1.9 509 91 -28 96Lang Son 478 611 2.6 530 94 -27 85Bac Thai 316 438 2.6 377 56 *5 81Lai Chau 771 1032 3.5 861 151 -7 55Son La 809 1030 3.7 833 161 .5 32Hoang Lieng Son 482 682 3.1 585 87 -1 82Guang Ninh 661 813 2.2 454 94 3 11Vinh Phu 1376 1807 2.9 1583 339 1 9Ha Bac 1562 2064 3 1937 423 5 7Ha Noi 2456 3056 2.3 1960 431 -34 1Hai Phong 1150 1447 2.4 989 233 -2 0.2Ha Son Binh 1426 1839 2.7 1630 346 20 25Hai Hung 1959 2445 2.4 2264 572 -1 0.2Thai Binh 1382 1632 1.8 1526 396 -30 0.1Ha Nam Ninh 2595 3157 2.1 2817 699 -67 0.5Thanh Hoa 2348 2993 2.6 2760 609 -22 I5Nghe Tinh 2870 3583 2.4 3273 705 -44 8Binh Tri Thien 1759 1997 1.3 1638 343 -28 13Qang Nam Da-Na 1458 1738 1.9 1211 271 -16 4Quang Binh 1985 2287 1.6 1965 429 -40 13Phu Khan 1177 1460 2.3 1036 204 3 9Thuan imi 917 1170 2.6 906 173 -I 12Gia Lai-Kon Tum 585 876 . 4.3 695 130 27 51Dac Lac 482 976 7.7 793 156 116 30Lam Dong 388 639 5.4 426 91 78 24Dong Nai 3293 3924 1.9 764 149 62 11Son Be 651 938 3.9 U87 181 41 9Tay Ninh 676 793 1.7 700 137 9 2Ho Chi Minh 1292 2007 4.7 IS26 285 91 8VungTau- Ba Ria 92 135 4.1 11 2 16 2Long An 949 1120 1.8 930 180 -8 0.3Tien Giang 1173 1337 1.4 1281 217 8 0.4Ben Tre 1475 1774 2 1330 236 -1 6Dong Thap 1258 1483 1.7 1296 253 -11 0.6Cuu Long 1034 1214 1.7 1120 226 -12 0.6Hau Giang 1497 1809 2 1632 312 0 16An Giang 2226 2681 2 2194 390 -9 16Kien Giang 986 1198 2.1 941 169 10 16Mlinh 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 1Table 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 0Coo8 ang -1 1.1 -0.06 0 0 0LangSon 4.1 -0.7 0.06 0 0 0

a eThaI 0.2 -08 0 0 0 0LAIChau 1.6 O0 -0.11 0 0 0So LA 0.3 412 -1.14 0 0 0HoangLUengSon 1 -0.2 0 0 0 0Gaag Nlnh 7.5 -4 -1.77 0 0 54Vlush Pu 4.9 -2 0.58 0 0 -558Ha Bac 11 0 0 0 0 -99Ha Nol 0.4 0 0 0 0 0Hal Phong 2.4 -4.1 -0.03 0 0 -251Ha Son Binh 10.1 0 0 0 0 -36Hai Hong 5.7 0 0 0 0 297Thal Binb 6 0 0 0 0 428Ha NaNlnh 5 -6.7 03S 0 0 -13Thumh Hoz 2.2 -5.9 0.24 -696 -39 14Nghe Tinb -0.6 4.3 0 0 0 -11Bih Tri Thlen -1 -54.4 0 0 0 867Qang Nam Ds-Nang 4.1 2.7 0 0 77 48Quang Bibh 4.4 -12.4 0 0 0 -581Phu Khan -1.3 -12.2 0 160 23 70Thuan Hli -1.9 -7.6 03S S858 1915 0GCa Lai-Kon Tum -1.2 -7.7 0 14922 257 SDnc Lae -4.5 -2.3 336 9801 0 4509Lam Dong -6.9 48S 0 IS338 9369 202Doag Nnl -0.2 - -5.6 0 195 5679 0Son Be -0.4 -116 0 0 140 0Tay Ninh -1 -1.1 0 0 -14 0lio Cb IMink 0 0 0 0 0 0V.ngTau- Ba R 0.09 0 0 0 0 0Long An 0.2 0 0 0 0 OTien Gang -0.3 0 0 0 0 0Ben Tre -0.2 0 0 0 0 0Dong Thop 0.5 0 0 0 0 0Cuu Long 0 0 0 0 0 0HsuG Gng -O0 0 0 0 0 -165An Gang 0 0 0 0 0 0KIen Gibng 0.2 0 0 0 0 0Minh hal

37.79 -156.5 1.29 45578 17407 4514Totals

Sources: Health Sector Report, World Benk 1992, Warvinge 1992, Gray 1"2, Government Statistics Offe. I992.

- 21 -

Annex 1Table 16

Page 21 of 48

Shifting Cultivation Area 1990, By Province (in 1000 ha)

PROVINCE Shifting

Ha Tuyen 10.4Cao Bang 5.4Lang Son 1.3Bac Thai 0.7Lai Chau 6.2Son La 3.2Hoang Lieng Son 10.6Guang Ninh 4.4Vinh Phu 0.8Ha Son Binh 1.9Thanh Hoa 4.4Nghe Tinh 2.2Quang Binh 1.1Quang Tri 0.9Thuan Thien Hue 1.3Qang Nam Da-Nang 3.2Quang Ngai 1.5Binh Dinh 1.6Phu Yen 1.8Khanh Hoa 2Thuan Hai 5Gia Lai-Kon Tum 52.4Dac Lac 34.8Lam Dong 7.7Son Be 12.7Totals 177.5

Source: Forest Inventory and Planning Institute, 1990

- 22 - Annex 1

Summary of Mineral Resources in Vietnamr Page 22 of 48

Estimated ReserveMinerals and Rocks (tons) Annual output (tons) RemarksCoal 3,500 M Peaked 6.9M in 1988, 3,600M tons in Quang Ninh, 80M tons in Thai

currently 3M Nguyen. Total design capacity 14.5Mtons/year.

Oil Nearly 10,OOOM 2.7M (1990) In northern lowlands, southern deltas andcontinental 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 inore

Iron 1,000M 0.5M In Bac Thai, Ha Tuyen, Cao Bang, 700M tonsat 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 PreciousMetalsAntimony not significant limited In Tuyen Quang, Quang Ninh, Hoa Binh,

Thanh Hoa, Nghe AnBauxite, 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 tonsof 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, NgheAn, 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, NgheAn

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 1Table 17 (p. 2 )Page 23 of 48

Estimated ReserveMinerals and Rocks (tons) Annual output (tons) RemarksBuilding 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 Potteryand ChinawareDolomite 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-DaNang

Sand, silicate large N.D. In coastal areas, high quality

Precious and Semi-Precious StonesRuby, sapphire N.D. limited In Luc Yen, Quy Chau, Di Linb, Phan Thiet,

Xuan Loc. Ruby has high qualityTopaz, beryls, N.D. limited In Thanh Hoa, Nghe An, Vinh Phu, Quangnephrytes, 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 1Table 18

Page 24 of 48VIETNAM: 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 insects0 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 ,8 6 2 .1 0 a 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 DevelopmentConstrafnts

Mountain Region and Acid schist, mica Lithosols, Orthic Sheet erosion with Erosion control Lack of foodMidland of the North schist & Liparitic Acrisols, Ferric resultant surface through integrated security; poor

tuff with limestone AcrisoLs & Limestone stoniness. Soils watershed management communication andoutcropping based Chromic Luvisols derived from acid on sloping land; deep infrastructure;

and Calcic Cambisols parent material and ploughing of degraded tradition of shiftingthe degraded (leached) soils; imprdved cultivation;soils of the midlands cycifng of organic insufficient testingand lowlands (176,000 matter of appropriateha), have low pH, CEC technology.and organic matter andin some cases Altoxicity. Soilproperties Improvewith depth on degradedsoils

Red River Delta Riverine, brackish Gleylc Acrisols, Saline soils (350,000 Delta master plan to Overpopulationwater and marine Eutric Gleysols (inct. ha), acid sulphate develop saline soils; necessitatingalluvium saline phase, Eutric soils (50-60,000 ha) increased cropping resettlement; lack of

Fluvisols and Thiomic and waterlogged peat intensity on alluvial funding for requiredFluvisols soils (10,000 ha) and soils; reduction of water control and

increasing acidity of acidification process; infrastructurealluvial soils integrated development.

crop/Iivestock/aquaculture; improved cycling

________________________ of organic matter

Northern Central Uplands: Acid and Uplands: Orthic Sheet erosion, surface Integrated watershed InadequateCoast mica schist with Acrisols, Ferric stoniness in uplands; management in uplands. infrastructure,

limestone outcrops. Acrisols Lowlands: low pH, CEC and dune stabilization in market opportunitiesLowlands: Rivermne, Chronic Luvisols and organic matter in both lowlands combined with and finance for waterbrackish water and Eutric Regasols (dune upland soils and improved soil organic control. Poor upland 3mrine alluvium sands) coastal sands. Flash matter content technology. x

flooding in saline (particularly to raise Xlowlands. Dune soil moisture o ¢encroachment retention) and -

I__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ fertility. _ _ _ _ _ _ _ _ _

00 -

Agro-ecological Zones Parent Rock Soils Technical Constraints Development Options Main DevelopmentConstraints

Southern Central Uplands: Acid and Uplands: Orthic and Sheet erosion, surface Integrated watershed Lack of finance forCoast 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 technicalLowlands: Riverine, Lowlands: Chromic upland soils. Flash lowlands. base for uplandbrackish 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 economicporphyritic and Acidic Ferralsols, erosion on steeper Livestock grazing; migration intodiabase parent Pellic Vertisols and slopes; low resettlement with region; inadequatematerial. Some acidic Ferric and Orthic groundwater reserves; rainfed agriculture. infrastructureparent material Acrisols. Includes low fertility of some

approx. 420,000 ha of acidic soils. Lowdegraded soils. organic matter

content. | _

Northeast of Mekong Old alluvium Ferric and Gleyic soil degradation; Agro-forestry (rubber IrrigationDelta Acrisols and some acidity with and fruit) development (Dau

Rhodic Ferralsols associated low CEC and Tieng dam). Legumehigh AL; Legacy of cover crops.chemical defoliation;low fertility(leaching) and soilorganic matter.

Mekong Delta Riverine, brackish Dystric Gleysols, Saline soils (650,000 Water control. Financing of waterwater and marine Eutric Fluvisols ha), acid sulphate control andaltIviun (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 SecretariatDystric 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 geAgro 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 loblafoareo 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'bouhsondJMdIncs 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 ofHortsIonos 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 ofSaum3nas 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 ForoCC2/ Cwam aopb wLsownsr tdombwUla rI endmclle.3J Prostra be"Cn aop Urdeswaeled aI G6$ of anvaoptaepea41 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 1Table 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 24Page 30 of 48

Officially Sponsored Migration(1,000 Persons)

1981-89 1990 1981-90

Total Migration 2253 168 2421Within Province 1662 151 1813

North 521 n.a. n.a.South 1141 n.a. n.a.

Outside Province 591 17 608North to North 14 1 15North to South 441 8 449South to South 136 8 144

Midlands and Mountains 200 15 215Within Province 194 15 209Outside Province (N-S) 6 6

Red River Delta 356 11 367Within Province 88 6 94Outside Province 268 5 273

(N-N) 14(N-S) 254

North Central Coast 420 29 449Within Province 238 n.a. n.a.Outside Province (N-SO 182 n.a. n.a.

South Central Coast 320 9 329Within Province 220 n.a n.a.Outside Province (S-S) 100 n.a n.a.

Central Highlands 164 3 167Within Province 164 3 167Outside Province

Northeast of Mekong 343 9 352Within Province 309 n.a. n.a.Outside Province (S-S) 34 n.a. n.a.

Mekong Delta 450 91 541Within 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 25Page 31 of 48

VILLAGE NAME Po NhangPROVINCE Son LaDATE VISITED 31/3/93No. PEOPLE 600No. HOUSES 80YEAR ESTABLISHED 1954CROP AREA (Ha.) 60No. MOTORCYCLES 15REPLANTING PROGRAM ? NoEXTENSION PROGRAM ? No

TYPICAL HOUSE DATA ( 9 persons) AND VILLAGE (80 households) AGGREGATION:

DOLLAR I HOUSEHOLD BUDGET I WHOLE VILLAGEITEM 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 IPADDY RICE 1.20 0.21 252 0.25 I 63.00 I 1 5,040UPLAND RICE 0.75 1.00 750 0.25 I 187.50 I I 15,000MAIZE 2.00 0.50 1000 0.25 1 25Q.00 I I 20,000 IGRAZING/FALLOW 1.29 I lCATTLE 1 30.0 I 30.00 I I 1,200CHICKEN 15 1.50 I 22.50 i I 1,800PIGS 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 lOPIUM 0.01 0.30 3 120 I 360.00 I 1 3,600FIREWOOD 60 Days 4 Bun/Day 240 0.25 1 60.00 I 1 4,800 1FOREST 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 IOFF FARM INCOME: l l l lOPIUM 0.01 0.20 2 120 I I 240.00 I I 20,400FIREWOOD 30 Days 4 Bun/Day 120 0.25 I I 30.00 I 1 2,400LABOUR I I 0.00 I I 50CHICKEN 6 1.5I 1 9.00 I I 720CATTLE 1 30 I 30.00 I I 1,200

Sub-totals: I I 309.00 I I 24,770

I l I IOFF FARM COSTS: l l l lRICE (for 3-6 months) 150 day e 5 Kg/day 750 0.25 1 I 187.50 1 1 15,000OIL, CLOTHES, SALT, ASPRIN I I 100.00 I I 8,000OTHER (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 ImportantD Drainage (Bio-value) 8 - importantE Encroachment C - low valueF FishingH HuntingL LoggingM MiningS 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 22 045'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 naturewintering 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 includewintering 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 assessand 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 localfreshwater vegetion protection

Tam Dao Ponds Vinh Phu FL 2 22025'N,105"35'E Several small ponds NP D C L Apply better protectionwith 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, banI 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 21 010'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 21 005'N,106 050'E 8rackish reservoir H C H Survey 6 ban hunting

Haiphong/Cat Ba Haiphong M 2,300 20050'N,106 052'E Mangroves and mudllats H C C L Try to protect example

Cat Ba Lake Haiphong FL 2 20 045'N,107 0 00'E Small lake and fauna NP D C L Protect fragile site

Xuan Thuy Delta Ha Nam Ninh SM 4,000 20010'N,106 0 35'E Mangrove, mudliats, PR H C A L Protect fragile sitewintering birds _

Cue Day Flats Ha Nam Ninh S 1,000 19055'N,106 0 05'E Coastal mud and sand H A L Combine into RAMSAR

Hoe Lu Swamp Ninh Binh FS 1,000 20018'N.105 0 55'E Swamp vegetation in F D B H Should be given locallimestone area protection

8a Thuang Thanh Hoa FS 200 19059'N,105 028'E Freshwater swamp R C H Survey to assess

Swamp veetation _ protiection needs

Song Muc Lake Thanh Hoa R 700 19 0 42'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 assessbirds 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,107 0 50'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,106 0 30'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 protectionneeds

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 600 140 03'N.108 001'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.10 0 59'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,100 020'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.108 041'E Oxbow lake with crocodile and Pr F C H Improve reservewaterfowl 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 areawaterfowl 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 tocrocodiles 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 tovaluable 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 200 120 00'N.108022'E Scenic lake in pine forest D C L Preserve as scenic area

Don Duong Lake Lam Dong R 1,000 11 0 50'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,109 010'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.109 002'E Small brackish lagoon, H C M Seasonal no huntingsalt 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 monitoringtakes, white wing duckand watertowl

Dau Tieng Tay Ninh R 5,000 1 1°15'-11 032'N, Large reservoir close to - HI F C H Survey to assess impor-

Reservoir 1060 lO'E-106 030'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 huntingI I - -~~~~~~~~~~~~~~~~~~~~~~~~~~~~area

Tri An Dong Nai R 10,000 11 i10'NN,1070 10'E Large reservoir, fish, P F B L Conlrol lishing levelssome waterlowl _

Duymn Hal Ho Chi Minh M 2,000 100 20'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. avoid105020'-106°00'E Reeds, rare birds draining, ban hunting

mnaintaint protection

Mekong Estuary Ben Tre + Tra E 20,000 9°25'-10 0 30'N, Nipa palm estuary water - H C B M Seasonal no hunting

Vinh _ 106°25'-106 030'E birds _ area

U Minh Minh Hai PS 4,000 9015-N,104 0 55'E Peaty swamp best Pr B A L Maintain fire protectionmalaleuca 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 8 035'N,104 041'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 - mangrovesD = disturbance of wildlife L - lagoon

S - shrimp ponds Ro = rocky coast

F - overfishing VL volcanic lakeF overfishing ~~~~~~~~~~~~~~~Sa salt pans co

Source: Biodiversity Action Plan, 1994.

tD zD0,

0

Wl r^

° o1;¢

- 39 - Annex 1Table 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 13235Industry 5366 5499 6042 6925 7766Construction 1077 1128 1186 1317 1558Other Production 347 360 370 381 399

ScrvicesTransport and Communications 709 743 792 842 897

Trade 3311 3485 3654 3877 4109Finance, Inurance, and Banklng ) 368 448 496 578State Sector ) 5855 2627 2841 3040 3322

Oher Services ) 3667 4059 4362 4871

Grou Domestic Product 28135 29529 31286 33991 36735Growth Rate 8.0% 5.0% 6.0% 8.6% 8.1%

(Billions of Current Dong)Goods

Agriculturc and Forestry 11471 16589 30314 36468 39998Industry 5366 9183 15193 23956 29371Construction 1077 2534 3059 6179 9423

Other Production 347 385 744 1045 1476

ServicesTransport and Communications 709 1434 2860 4662 6036Trade 3311 6149 9742 15281 17549Finance, Insurance, and Banking ) .. 766 1108 1567 2318State Sector ) 5855 4389 6807 9718 14402Other Services ) .. 4732 6880 11659 15998

Gross Domesic Product 28133 45969 76707 110535 13657163.4% 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 1Table 29

Page 40 of 48

POPULATION, 1975-93

Year Population Growth Rate('000; mid-year) (°/O)

1975 48,030 2.571976 49,158 2.351977 50,295 2.311978 51,436 2.271979 52,574 2.211980 53,700 2.141981 54,722 1.901982 55,687 1.761983 56,655 1.741984 57,692 1.831985 58,868 2.041986 60,249 2.351987 61,750 2.491988 63,263 2.451989 64,774 2.391990 66,233 2.251991 67,774 2.331992 69,405 2.411993 70,918 2.18

Source: World Bank, Population and Health DcpartmentRevised based on the 1988/89 Ccnsus and most recent dataGeneral Statistical Office, Statistical Data of the Socialist Republicof 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 1Table 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 31,815State Sector 4,028 4,091 4,052 3,801 3,419 3,144 2,975Cooperatives 19,730 20,283 20,658 19,750 20,414 18,071 18,629Private 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 1,242Central 343 337 327 ..

Local 1,026 1,046 1032 ..

State Enterprises 2,659 2,708 2,693 2,346 2,078 1,848 1,733Central 1,278 1,226 1236Local 1,380 1,482 1457

Employment by SectorProductive Sector 25,553 26,054 26,497 27,061 28,320 28,972 29,780Industry 2,918 3,047 3,150 3,241 3,392 3,394 3,450Construction 883 825 856 795 818 820 826Agriculture 19,798 20,246 20,446 20,698 21,683 22,276 22,998Forestry 178 173 211 197 206 207 210Transportation 450 429 443 455 476 480 484Telecommunications 38 42 40 40 35 46 47TradeandSupply 1,259 1,268 1,331 1,606 1,681 1,719 1,735Olher 31 24 21 29 30 30 30

Non-Productive Sector 1,846 1,915 1,980 1,880 1,966 2,001 2,036of which:

Science 64 57 60 60 51 49 48Education 706 750 830 768 803 804 825Arts and Culture 38 46 45 43 45 46 46Public Health 300 297 305 288 303 309 318State Management 273 289 247 233 240 240 240

Note: Figures are rounded.Source: General Statistical Office.

-42- Annex 1

Table 31Page 42 of 48

Proposed modified land use criterion (Shanna 1990)

Soil SlopeDepth (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 PFP or FTor CC/IP

35-90 Ag Agc Agbc Agic Agic or P CF+P/C PFor FT orCC/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 plantationAgc 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 terracesAgic 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 bybranches for soil conservation or hedge row cropping with base knitted by branches of nitrogenfixing trees for soil conservation

P Pasture mixed with leguminous shrubs and nitrogen fixing bushesFT Fruit trees with appropriate soil conservation methodsCC Cash crops with nitrogen fixing trees, grssesIP Multi-storied mixed industrial plantation and grasses on the base for soil conservationCF Conmmunity forestry for local needs (fast growing nitrogen fixing trees preferred with mixed broad

leaf multi-storied trees)PIC Pasture mixed with leguminous cover cropsPP Completely protected forest with natural regeneration of all flora

4 3 Annex 1Figure 2

Figure 3.: Major Fishing Grounds Page 43 of 48

Haiphoni

I \~VS N 1 i Bachvi

Vn fCe| | I Central Haman

HoFi Gio - Thuan An

Hae - Danang

Afajor fishing groundsOffshzore

Fish . Sea mo-nu-

_ Shr-imnp II

QtIy

NThon;~ 'Cu Lao Xanh

Nhatrang'

Ho Chi MBinh JI

FPhu -Phu QuyQuoc - CLU ~~~~~~~~~Islc~ands

Chuoi P(1_ ~~~Con Son 1.I

S&eOVIR: Phom nThatC (1.985;

- 44& -

Annex 1Table 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 MangementA. Central 12.10 9.40 10.30 12.31 11.60 13.07 19.96B. Local 3.46 6.62 6.00 5.22 6.50 8.69 10.50

By Type of OutlayA. Contruction Assmbly Works 14.98 11.97 12.59 12.19 14.32 14.53 21.69B. Machinery & Equipenent 2.96 2.43 2.60 3.04 2.3S 5.51 5.76C. Other 2.62 1.62 1.60 2.31 1.90 1.72 3.01

By SectorA. 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 3.36c. Transprttion & Commeunicat 3.32 1.35 2.27 2.30 3.92 4.47 6.77d. 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 4.73a. Housing nd Community Servi 1.76 1.32 0.95 1.10 1.68 1.03 1.33b. Science, Education, Public Health

and Social Welfare 1.32 1.29 1.24 1.32 Z12 2.04 0.96c. 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 65.5B. 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 71.2B.MachineryAEquipment 14.4 15.1 15.5 17.3 14.7 25.3 1I.9C. 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 12.7c. Transportation & Communiect 16.2 11.6 13.5 16.0 20.0 20.5 22.2d. 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 4.4b. Scienee, Education, Public Health

and Social Welfare 6.4 3.1 7.4 7.5 10.3 9.4 3.2c. 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 2.974Irrigation 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.

.~~~~~~~~~~~~~~~

0moo

0 &

CO I-

- 46 -Annex 1

Table 34Page 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 12,597,516Food Crops 49,702 47,701 50,890 52,047 .. 7,541,957 8,280,914Industrial 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 4,461,681of 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 25,000Paddy 16,003 15,103 17,000 18,996 19,225 * 19,622 212,590 22,300Other 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 1Table 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 2.3Rush 5.8 6.1 4.8 5.6 .. 5.7 7.0 7.2Mulberry 8.5 8.0 8.0 8.8 9.0 7.4 7.0 7.3Sugarcane 39.7 40.0 40.1 40.7 40.0 43.5 43.9 44.7Peanuts 0.9 1.0 1.0 1.0 1.0 1.2 1.0 1.1Soybeans 0.8 0.8 0.8 0.8 0.8 0.7 0.8 0.8Tobacco 0.9 0.9 0.9 0.9 0.8 1.3 0.9 0.9Tea 0.5 0.5 0.5 0.5 .. 0.6 0.6Coffee 0.3 0.2 0.3 0.3 .. 0.6 0.7Rubber 0.2 0.3 0.2 0.2 .. 0.3 0.3Coconut 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 36FOODGRAIN 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 ProductPaddy 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 14,272Winter 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 RegionNorth b/ 7,688 7,620 8,369 8,955 8,448 7,835 9,701 10,640South 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 ProductPaddy 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 3,896Winter 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 RegionNorth b/ 2,442 3,170 2,465 2,481 3,224 3,301 3,398 3,390South 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 ProductPaddy 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 3.66Winter 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 RegionNorth b/ 3.15 2.40 3.40 3.61 2.62 2.37 2.85 3.14South 3.29 2.80 3.44 3.68 3.35 3.41 3.37 3.34Mekong 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 3100Average 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 2Page 1 of 8

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR A SOCIALIST

ECONOMY IN TRANSITION

Index of Susceptibility to Deterioration

Introduction

1. To increase the understanding of the process of land degradation and facilitate developmentplanning, 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 usedin the compilation of this index. This would allow periodic updating of the result as new informationbecomes available. However, much of the required input data (especially the soils data) are only presentlyavailable in hard copy at about 1:3,000,000 scale. Consequently, a decision was made to prepare aninitial document from whatever information was available by manual means.

2. The susceptibility map was prepared as an overlay to allow comparisons and conclusionson 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 rationalizedas necessary afterwards.

Indicators of Instability

3. The inherent stability of an area is best measured by its susceptibility to deterioration ifdisturbed. Highly susceptible areas will show evidence of deterioration following relatively minorimpacts, but less susceptible ones will not.

4. No direct measurement of an area's susceptibility to deterioration is available and evidencemust be sought from a range of indicators. These include climatic and seismic factors, slope, and theintrinsic 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 thatare inherently stable, and (b) areas that have a relatively high rate of natural baseline erosion. Slope, soiland geological categories were considered.

6. Slope. No slope class map for Viet Nam is yet available. As an interim measure atopographic map at 1: 1,000,000 scale obtained from the Hydrometeorological Service of Viet Nam wasused. Based upon geomorphological and climatic data plus information provided by FIPI, NIAPP, theGeological Survey of Viet Nam, and personal observations it was concluded that most land above 500melevation would be sloping, much of it relatively steeply sloping. The steeper slopes would occur in themountains, 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 accordedwell with those presented in an "Ecological And Topographic Zoning Map Of Viet Nam" obtained fromNIAPP, except for an area between 12.5 and 14 degrees north which comprises the catchments of the DaRang 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 toinformation provided by the Geological Survey Of Viet Nam were used to identify weak geologicalformations. These were considered likely to be relatively erodible, subject to structural failure, or toproduce deep clay regoliths subject to landslide activity. Based on the United Nations (1990) map thefollowing 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 areduced version of the 1: 1,000,000 scale soils map of Viet Nam. Thi; map was initially compiled in twoparts: one for Northern Viet Nam at 1:500,000 scale by the Russian Dr. Friedland, and one for SouthernViet Nam at the same scale by the Dutchman Dr. Mockman. Different approaches and methods wereused. After 1975 NIAPP recompiled and combined these maps, but the result is acknowledged by NIAPPas not entirely satisfactory.

10. Using information provided by NIAPP the following soils were identified as relativelysusceptible 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 takeninto account. These factors impinge very broadly upon the land rather than in the site-specific way thatslope, soil and geology do, and should be seen as erosion-precipitating agents rather than aspects ofinherent susceptibility. Where seismic and/or climatic impacts are relatively strong, the inherentsusceptibilities 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 portionNorth of the Red River Valley is on the South China crustal plate and an area in the North-west is on theBurmese-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 otherfracture zones in Viet Nam.

- 51 -Annex 2

Page 3 of 8

13. Published information is in the explanatory brochures for the Atlas Of Mineral ResourcesOf 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 OnEnvironmental Geology (Geological Association Of Viet Nam, 1992). In the latter of these, Nguyen DinhUy and Dam Ngoc, both of the Geological Survey Of Viet Nam, present a map showing earthquakezonation for the north-west of Northern Viet Nam.

14. A map showing areas of relatively high and relatively low seismic activity has been preparedfrom these data taking into account the dip of the active zone (which determines which side of it will havethe most severe earth tremors), and the depth at which most activity takes place (deeper activity such asunder 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 mapof these and average monthly and annual rainfall figures for 119 of them over varying recording periodsup to 1984 were obtained from the Hydrometeorology Service for Viet Nam. Many stations have 30 or40 years of records, but some have only about 10. The rainfall records have not been translated intoisohyets by the Hydrometeorological Service and a map of average annual rainfall is not yet availablefrom Hanoi.

16. Sargent (1991) has included an annual rainfall map in her review. Her map shows annualrainfalls in excess of 3000mm in the Central Highlands and around Lam Dong province. This appearsplausible because in highland areas near a coast with a landward wet season, winds are likely to receiveorographic 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 soilerosion, rainfall intensity figures are more important than annual rainfall. The HydrometeorologicalService of Viet Nam has daily rainfall intensity figures for all 121 rainfall stations and have nowprocessed them to give an average daily intensity, a maximum value, and probability of occurrencefigures on a 1, 5, 10, 20, and 50 percentile basis. Sharma (1990) records that intensities of 200 - 400mmper 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 athreshold in identifying stations with rainfall intensities likely to be significantly erosive. All such stationswere enclosed in a hand-drawn isopleth. Most of them occur in coastal areas, but this may be a biasedresult because of the scarcity of recording stations in upland areas. However, typhoons and tropicaldepressions 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 todeterioration is drawn together, and the mapping units are classified as having either a relatively high ora relatively low degree of susceptibility.

20. Initially, the inherent susceptibility factor (derived from assessments of slope, geology andsoils) 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 highseismic activity (considered to be roughly equal in terms of their contribution to susceptibility), one withboth 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 apredisposing 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 degradationof the land will occur, or as a "probability" factor.

22. Thus five classes of susceptibility to deterioration were derived, and these are shown inTable 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 byoverlaying the susceptibility map on the provinces map. Regions containing significant areas withsusceptibility rating four or five and only very small areas (if any) with a rating less than three wereconsidered to be highly susceptible to deterioration. Other regions predominantly rating three were likelyto 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 0NOa: I - eambl (nmt Yabk) a 5-mast .sweuIbc.

24. A list of the most important provinces for watershed protection was provided by FIPI. Mostof these were also selected by the susceptibility mapping and these ones are identified in Table 3 byunderlining. Provinces identified by Mr. Phuong that were not selected by the susceptibility mappinginclude Lang Son (because of low overall topography and low rainfall intensity) and Dong Nai (becauseof low topography, rainfall intensity and seismic activity).

- 53 - Annex 2Page 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 2Page 6 of 8

25. In a study of sediment problems in Viet Nam, Cao Dang Du (1992) produced a map ofsuspended sediment yield which also supports the susceptibility mapping. A 'forest types' map of VietNam 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 "immediateeffect on national well being". These six were chosen because they all had large dams or large dams wereplanned for them, and because the dam catchments were in a degraded condition and siltation of the damswas likely to be serious. Sharma acknowledges that "there are many other watersheds in the countrywhich 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 areasmapped as highly susceptible to deterioration, and the Da Nhim / Dong Nai catchment is moderatelysusceptible. The Tra Khuc River is in Quang Ngai province, which has mainly susceptibility categoriesone and two, and hence was not selected as being (overall) susceptible. However, the outer parts of theprovince 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 ascategory one, because of low relief, low seismic activity, and low rainfall intensity. Sharma verifies therelief category (he cites maximum slopes of four to seven degrees). However, this area was very heavilydisturbed 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 dueto population pressure, which has not been included as a factor in the susceptibility mapping. Thisanthropogenic factor may cause land degradation even in areas not classified as susceptible todeterioration. The area close to the edges of the Red River Delta is an example (IIED, 1991) but in thatcase the land is very susceptible to deterioration.

Issues to be resolved

30. The land susceptibility map accompanying this report is a first approximation only, basedon 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 FAOstandards (see Sehgal, 1989) and digitized. Until then, it is not entirely reliable. A better choice wouldbe the new integrated, ecosystem - based land resources maps at 1:250,000 scale that are currently beingproduced by NIAPP.

31. Other input data also need to be revised, for example, a map of slope class at 1:1,000,000scale or better needs to be prepared and digitized, and there is a need for a more precise definition ofseismically active areas, geological formations susceptible to failure, climatic factors, and soils that areerodible. In the case of climate, rainfall amount and seasonality need to be incorporated with the intensitydata to produce an overall index of erosivity of climate. In the longer term, these data could be updatedif more climate recording stations were placed in the upland areas, especially in Southern Viet Nam.

- 5 Annex 2Page 7 of 8

Proximity to large centers of population could also be included as a factor threatening the stability ofland.

32. Another issue is forms of land degradation other than soil erosion. Nutrient depletion, soilstructure decline and other impacts result from repeated cycles of shifting cultivation, but also fromcontinued use of good quality agricultural land. In recent years with increased population pressure thesesoils are being used more and more intensively. It is very important that the productivity of these bettersoils be at least maintained so that the nation as a whole maintains food security. The same could be saidfor 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 newland resources mapping that is being done, and to use the results for improved land use planning (longterm),to upgrade the existing soils map and convert it to FAO format (shorter termn), and to progressivelyimplement the research needs described by Sargent (in IIED, 1991).

- 56 -Aex 2Page 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 1157Tuyen Quang 6430 241 1628 3737 496 128Cao Bang 8S04 693 958 4617 2336Lang Son 7905 603 3070 1592 2388 352Sac Thai 6604 2661 3318 512 113Lal Chau 17334 4225 11316 1793Son La 14398 4971 9427Yen Sal 7704 S9 3953 2778 374Lao Cal 6894 799 2685 3410Guang Nlnh 5167 23 4709 425

Vlnh Phu 4514 1593 2691 230Ha Bac 4917 1169 3628 130Ha Nol 990 817 173Hal Phong 1233 1047 196Ha Tay 2524 1268 1146 110Hoa Blnh 4282 733 2022 194 1333Hal Hung 2669 2452 217Thai Blnh 1507 1607Nam Ha 1859 1540 192 127Nlnh Blnh 1674 72 1448 164Thanh Hoa 11453 348 2728 4141 3436 800Nghe An 16837 1015 2960 6372 6393 1027Ha Tnh 6071 1973 360 438Guang Blnh 8469 3240 6042 187Quang Trl 49SS 1318 1710 1927Thua Thlen-Hue 4661 383 596 324 33S8Qang Nam Da-Na 12003 40 1446 7967 2560Quang Ngal 6198 736 2303 387 1172Binh Dlnh 6342 249 2671 1187 2035Phu Yen 6210 688 1628 620 2374Khan Hoa 4843 1084 768 814 2180Nlnh Thuan 3564 2721 843Binh Thusn , 8148 7528 620Gla Lal 14891 8093 6798Kon Tum 10855 944 9911D.c Lac 179 6723 1189 167Lam Dong 10235 2483 7762Dong nal 5935 8935Son Be 9363 8828 635Tay Nlnh 4004 4004

Ho Chi Minh 1897 1897Vung Tau- Ba RI 1901 1901Long An 4456 4455

Tien Glang 2274 2274

Ben Tre 2119 2119

Dong Thap 3168 31S8Vlnh Long 1643 1643Tra Vinh 2017 2017Can Tho 3016 3016Soc Trang 3271 3271An Glang 3306 3306Kien Glang 5824 5824Mlnh hal 7919 7919

Totalsil 329009 95918 44711 120867 59933 7590

Notes: 11 Area totals not equal to those ofthe General Department of Land ManagementSource: Aldrick 1993

57 Annex 3Page 1 of 13

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR 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 conflictingland use and forestry statistics. It then analyzes the sources of deforestation and their relative contributionto 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 percentbetween 1943 and 1991 (Table 1). This includes the loss of at least 12.6 million ha of forest, of which8.0 million ha were in Northem Viet Nam and 4.6 million ha were in Southern Viet Nain. The NorthernMountains experienced the greatest decline, with forest cover dropping from 95 percent to 17 percent in48 years. The decrease in this region was caused by the rapidly growing population's demand for forestproducts 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 smallnon-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 3Page 2 of 13

3. Fuelwoods presently constitute over a third of all traded energy, two-thirds of householdcooking 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 1943to 1973 was equivalent to 1.6 percent per year. Uncontrolled logging in the Northern Mountains andextensive conversion of forest to coffee, rubber and banana plantations in the Mekong delta and NorthEast of Mekong regions were the primary contributors to forest loss. The annual rate of deforestationincreased 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 drivenby 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 Mekongand Central Highlands regions as GOV continued logging and encouraged settlement. In five otherregions, official statistics indicate that the 42 year deforestation trend has been reversed. This reversalmay, however, be regarded with skepticism for two reasons: (a) the forest cover figures mask thereplacement of natural forest with planted forest, and (b) during the mid-eighties the GOV redefinednatural forests from being areas with over 30 percent crown cover to areas with over 10 percent crowncover. Disaggregating forest cover into natural and planted forest indicates that, while natural forest areadecreased 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 CentralCoast, combined marginally forested (formerly defined) "barren land" with "natural forest" to producean 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 inNatural Planted Barren Annual PerennialForest 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 3Page 3 of 13

6. Despite the above data bias, an analysis of the reduction in natural forest at the provinciallevel in Northern Viet Nam (see para 9 below) reveals that it has come largely at the expense of annualcrop expansion. Another effect of the redefinition was to understate the true rate of deforestation in theCentral Highlands and North East of Mekong regions between 1985 and 1991, where there was pressureby loggers and settlers who planted mainly tree crops (coffee, cashew nuts etc.). By re-categorizingbarren lands as natural forest though, GOV is implicitly increasing its emphasis to protect criticalwatersheds from degradation. However, it is questionable to what degree the barren lands will be ableto recover their natural form or become productive without the support of protection and replenishmentprograms.

7. Barren land, also referredto as the 'bare hills' or 'unused land' in

. , , ,.niui " various statistical sources, ischaracterized as grass or shrub coveredhills of generally low agriculturalproductivity. The majority of barrenland existed as far back as 1960, whenthe FAO identified 9.3 million ha of

*&1 .*.~ pgj hz'other' land in Viet Nam. In 1993, GOVclassified between 35 percent and 42percent of the country, approximately 12to 13 imillion ha, as barren land 2/.Barren land formation is closely linkedto deforestation. From sub-provincialobservations, correlation analysis of thechange in land use and land cover from1985 to 1990 indicates there is a

Figure 1: Change in land cover from 1985 to 1990 (units in 1,000 ha). 1 t ines relatisheteensignificant inverse relationship betweenbarren land and natural forest (Figure1). In this relationship most of the

observations are clustered about the origin, suggesting that there has been little overall change in areaof barren land and natural forest. Barren land formation is closely linked to natural forest patternsbecause agricultural activity on forest soils is responsible for depletion of soil nutrients, decline in soilorganic matter and structure, soil erosion, weed invasion, and hydrological changes that result in seriousoff-site impacts.

8. The physical process of degradation starts with clear-cut logging. The cleared land, madeaccessible to farmers as a result of logging, is cultivated until soil fertility is exhausted. The exhaustedland is then abandoned to extended periods of fallow, interrupted by occasional cropping, grazing, andfuelwood collection. These extensive activities, combined with a fire prone regime, prevent forestregeneration. Soil erosion and weed invasion are part of the process of land degradation. Most of thelogging and subsequent agricultural production, especially in recent years, is on steep slopes which arehighly susceptible to erosion once the protective vegetative cover has been removed. In terms of weedinvasion, 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 ofbarren 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 estimatesof 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 agriculturalproduction systems and may thus not be readily "available."

9. As shown in Table 1, regions with large areas of barren land include the NorthernMountains (60-65 percent), the North Central Coast (40-44 percent), and the South Central Coast (42-49percent). The critical dynamics of barren land evolution involve human pressure on land that isinherently susceptible to deterioration. In areas of high population density, there is relatively less barrenland, reflecting the presence of property rights and active competition for available resources. In areasof low population density there is usually plenty of barren land, revealing the open access nature of theresource. The northern half of the country, specifically the Northern Midlands, contains the highestproportion of highly susceptible land. By comparison the Southern part of the country, excluding theCentral Highlands, is relatively stable in terms of erosion prone characteristics. Regions with large areasof degraded barren land are the Northern Mountain and Northem Midlands. (See Annex 2 for ananalysis of the factors contributing to erosion proneness by regions and for the construction of a landsusceptibility index.)

10. A closer look at the regional differences in the factors accounting for changes in barren landareas reveals a number of noteworthy implications. From 1985 to 1990, four of the six provinces withan increase in over 27,000 ha of barren land and 11 of the 19 provinces which experienced an increasein over 2,000 ha of barren land were in the Northern Mountains, Northern Midlands, and North CentralCoast. 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 othersources of income improvement, the people are being forced into the remaining forest to produce foodcrops 3/.

11. In the South Central Coast and the Central highlands, barren land increased where perennialcrops 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 lowerpopulation density and longer crop rotations slow the process of degradation, perennial agriculture isleading 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 hasincreased, are characterized as having acid sulphate and/or saline soils. These soils were probablydisturbed by agricultural expansion in response to increased demand by Ho Chi Minh City. Eventuallythe 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 includearable land expansion, fuelwood consumption, logging, shifting cultivation, and fire damage. If data onthese variables were to be converted to area equivalents, there is an estimated loss of 131 million ha offorest per year (Table 3). This number is much higher than the government-reported total loss of 184million ha over six years. This difference is explained by: (a) overlap and double-counting in attributingthe causes of forest loss, and (b) the previously mentioned redefinition of natural forests. Despite theseshortcomings the information is useful in illustrating the relative importance of the different sources ofdegradation.

31 On a regional level this trend is masked by the large increase in natural forest in Son La and Lai Chau provinces. Thisincrease 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/oDamage 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 thedistribution of both plant and animal species. The indirect environmental effects include thesedimentation of rivers, lakes, dams and harbors as well as the loss of the carbon sequestration functionsof the forest. In Viet Nam there was less than a one percent increase in agricultural land from 1985 to1991. Closer examination reveals that overall the area of annual crops contracted while the area ofperennial 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 inthe 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 orreduced the extent of barren lands countrywide. The poorest (food deficit) provinces in the NorthemMountains and Northem Midlands saw an attempted expansion of annual cropping even at the expenseof 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 andreplacement 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 1991occurred in the Mekong Delta. This decrease, without a comparable drop in rice production, signals anincrease in productivity. The increase in productivity may be attributed to the initial backyard privateplot/responsibility system and later to the freeing of prices and the shift to private production systemsallowed under further liberalization in 1989. The expansion of annual crops (primarily at the expenseof barren land) in the Northern Mountains has largely been driven by the allocation of land rights to thebarren lands.

Table 4: 1992 Percentage Share of Primary Cooking Fuel

Primary - North" Red River Hanoi' Central" Mekong Ho ChiCooking Fuel Delta Delta Minh City

Rural:

Leaves, 49.1 98.5 70.0 60.2 7.8Straw, 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 17.7Straw, 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 toperennial crops and planted forests. Over 90 percent of the increase in perennial crops occurred in thesouthern half of the country, particularly the Central Highlands. This is the only region with a plentifulsupply of unclaimed, relatively stable productive land. The availability of this resource has encouragedhigh rates of GOV-sponsored (and in recent years, spontaneous) immigration from the Red River Deltaand the North Central coast 4/. Immigration will continue while available land can be claimed (seeAnnex 5).

4/ Until 1989 all migration and agricultural expansion was under the direction of the central and provincial governments.

- 63 - Annex 3Page 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 muchforest destruction as commercial logging (Table 3). However, this does not mean that the degradationeffects 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 agrarianareas, wood is the fuel of choice for household use. Wood also provides heat for formal and infomialrural 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 criticalsubstitutes. Recent analysis,5/ based on the 1992 situation abstracted from the living standardsmeasurement 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 householdfuel source in rural areas except for the Mekong Delta, where wood predominates. Wood is alsoimportant in the Northem Uplands (i.e. both the Midlands and Mountain areas). In urban areas, woodis 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 thepressure 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. Thenational consumption estimate of about 28 million tons closely matches equivalent estimates of about 31million tons of the Tropical Forestry Action Plan (TFAP). The study shows that present supply of woodbiomass for fuel (about 38 million tons) gives a surplus for the country as a whole, but identifies two setsof 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 thegreatest stress on their forest resources. If, however, the TFAP estimate of sustainable supply of 25million tons (not available by region) were to be used, the relative fuelwood deficit situation would beeven more serious.

21. A number of implications are worth noting. First, although the fuelwood depleted NorthMidlands and the Red River Delta are substantially deficit, because the fuelwood marketing zone extendsto 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 animportant 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 evengreater depletion threat if the market for commercial fuelwood continues to expand. Second, part of thedeficit of the Mekong Delta/N.E. of Mekong regions can similarly be mitigated by the surplus CentralHighlands (and to a lesser extent the South Central region). However, because these regions arerelatively inaccessible, they are not likely to be under as much pressure as the remaining wetland forestsin 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 arebeing 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 theUNDP/ESMAP study).

- 64 - Annex 3Page 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 4,692Highlands2) 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 2,9995) Central 245 1,171 1,416 8,807 7,391Highlands6) South Central 648 1,781 2,429 5,457 3,0287) 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 thefuelwood shortage situation, particularly in the South Central Coast, North East Mekong, and NorthernMountains regions. However, the success rate in the upland areas has been reported to be between 30percent 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 specieschoice. The need is to improve and extend areas of fuelwood or mixed forest plantations and encouragemore economical and ecologically more sustainable alternatives, taking into account the problems andconstraints that have to be addressed and the need for farming systems that are consistent with the farmingfamily profile. This is needed despite medium term trends which point to a possible decline (or at leasta 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 thestanding stock in terms of improved management of existing forests, plantations plus scattered treeresources, and ensuring that there is or will be a market for the trees that have been planted already. TheTFAP states that pure fuelwood plantations are uneconomical because they are competing with a freewood 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 innatural forests. In the latter case, plantation wood could compete with a "free" remote resource. As hasbeen 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 isexpected 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 3Page 9 of 13

in a fuelwood plantation and be competitive with "free firewood" 7/. The need is therefore to find landwith 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 bemore profitable (e.g., for industrial estates).

24. Another need is the reduction of demand for fuelwoods through the improvement of cookstoves. Substantial development and demonstration work has been undertaken in Viet Nam. The needis to focus the Government's Improved Cook Stoves Program in resource stressed areas. Another issueon the demand for fuelwood is the situation with respect to inter-fuel substitution and the extent relativeprice incentives affected by Government policy play a role in increasing fuelwood demand andconsequently forest degradation.

Commercial Loggin,

25. Historic accounts show the role of forest degradation from logging followed from thecollectivization 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 forthe timber covered little more than logging and transportation costs and recurrent expenditure. Littledirect reinvestment in reforestation took place. This established a pattern of extraction to meet externalneeds, after which many communes seemingly lost their traditional collective mechanisms for protectingand managing the forests. The absence of any effective property rights to hill land led to a situationwhere land became liable to short-term exploitative practices and random clearance of the remaining treesfor fuel or construction purposes and agricultural cultivation then occurred 8/. This process was aidedby the fact that many enterprises had control over areas of land that were too large for them to manageeffectively.

26. From 1986 to 1991, GOV reported that forest industries harvested approximately 3.5 millionm3 of wood annually (with an additional 30 percent to 50 percent be added for illegal logging). The totalstanding volume is 525 million m3. Conversion to area equivalents indicates that legal logging accountedfor the loss of perhaps 80,000 ha of forest in 1991 (Table 3.3). Although extraction is highest in theCentral Highlands, the higher natural stock of these forests means that proportionately less area is affectedthan in the Northern Mountains. However, it is in the Central Highlands that large quantities of logs aresmuggled across Laos and Cambodia to Thailand 9/. This illegal trade explains the disproportionateloss of forest land compared to official log extraction figures in the region. Demand for paper, of whichless than 100,000 tons is produced annually, may appear not to contribute to substantial deforestation asplantation grown wood and bamboo are its main sources of raw materials. However, in localized hillareas 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 andtransport costs equal Dong 1,000 per ton per km (USS 0.1 per ton/km), then (all else equal) plantation wood can begrown at a cost of up to Dong 80,000 per ton (USS 8/ton) and still compete with a 'free' (open access) supply of woodthat is 80 km or further from the market. If the mode of transport is by boat then this break-even distance would beabout 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, Treesand People Project, 1989".

9/ There is also considerable smuggling of Laotian and Cambodian logs into Viet Nam. Since 1991, with the ban of logand lumber exports from Viet Nam, 'inward flows" (including local 'leakages') have been reported to have increasedsubstantially.

- 66 - Annex 3Page 10 of 13

commercial plantations has displaced traditional sources and may thus have increased the degradationpressure on forests.

27. Official logging occurs in natural production forest, but unofficially it also takes place inprotected and special use forest, albeit at a much smaller scale. Until 1991, the volume of logs extractedfrom 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 havebeen substantially reduced due to depressed log prices and a processing bottleneck. Depressed prices area consequence of log export restrictions. The bottleneck is the underdeveloped processing industry, whichconsists 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 offorests are regarded as fire prone in the dry season when the hot west winds are the strongest. Beforeplanting 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 afterburning woody grasses makes suitable grazing. Uncontrolled fires often burn 10 to 20 twenty times theintended area. The result is not only the destruction of protective vegetative cover, but also the loss ofsoil organic matter and associated soil structure decline.

29. The incidence of officially reported forest fires has declined from about 20 thousand ha in1990 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. Theimpact of forest fires on forest ecosystems has not been measured, but knowledgeable experts suggest thatthe 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 120,000households), are made up almost exclusively of members of a few ethnic minorities. Their land use isextensive, 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 cultivatingthem for a number of years, until fertility becomes too low or weed growth becomes too vigorous. Whenthe distance to the plots becomes too long, they move to a new site. This kind of shifting cultivation isresponsible for some loss of forest in the highlands. Given the fast regrowth of the vegetation and if givenenough fallow time, there is usually relatively little erosion resulting from this activity. Because of theirnomadic nature there is little information available about their farming systems. In 1990, their cultivatedholdings were estimated to cover about 180,000 ha, the majority occurring in the Central Highlands andthe 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 thehill/mountain areas). They have fixed households and shift cultivation sites. Some members of thisgroup have access to small lowland paddy holdings. Cultivation generally includes portions of the openaccess 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 primaryfactor preventing regeneration of natural forest on the barren lands. Over-cultivation is a particularly

- 67 - Annex 3Page 11 of 13

acute problem in the Northern Highlands, Northern Midlands, and North Central Coast because of thehigh percentage of unstable land. The extent of sedentary shifting cultivation is estimated to cover asmuch as one million ha (i.e., one million ha/year is abandoned by shifting cultivators with a comparablearea of fallow land being brought back into production) 10/.

32. Crop husbandry practices used by the itinerant shifting cultivators and by sedentary shiftingcultivators are similar: both use hoe cultivation and plant in jab holes without use of fertilizers. Thedifference lies in their respective areas of concentration, with itinerant shifting cultivators linked tocommercially 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 soybeanand peanut, mainly in the central upland plateau. While shifting cultivation using a 5-6 year crop cyclefollowed by around 10 years of fallow may represent the primary use of barren land, the missionobserved that along most major and some minor roads and close to rural towns, much hill-side farminghad changed to continuous cropping systems due to population pressure on the land resource. In severalrelatively isolated areas of Northwestern and Central Viet Nam, villagers reported that a day's trek wasneeded to reach land spare for shifting cultivation.

33. It is unclear to what extent the itinerant shifting cultivators are the victims of deforestationrather than the culprits because they lack the technology and therefore the option to change what theyhave 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 aredeemed sustainable at population densities below 50-70 persons per km2. This threshold depends onfactors such as the susceptibility of the land to deterioration, previous farming history, crops grown, andpopulation density. Once the population density grows beyond the threshold level it will be necessaryto modify one of these factors determining sustainability. It is therefore in the Northern Highlands andMidlands and the North Central Coast that sedentary shifting cultivators cause the most extensive landdegradation.

Other Causes

34. Other causes of upland forest degradation have been attributed to over-grazing, theconstruction 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 muchas 30,000 ha of forest is lost per year due to the creation of reservoirs. (This estimate is not includedin 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 increasesdeforestation by creating new navigable waterways for transporting logs. The effects of the war onupland forest, as elaborated in Annex 4, have been largely mitigated over time and are not consideredto be so serious as to warrant priority consideration.

10/ See Bo Ohisson, Forestry and Rural Development, TFAP, 1990; and J. Aldrick, Land Use Assessments (missionbackground paper), 1993. This one million ha/year of degradation cannot be interpreted as one million ha of forestloss/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 ofagricultural 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, doesnot necessarily result in severe erosion problems. The cause of erosion is deforestation closely followedby cultivation of soils that are inherently susceptible to deterioration. Natural factors facilitatingdeterioration include climatic and seismic factors, slope, and the inherent susceptibility of the soils andgeologic materials to structural failure. A more detailed explanation of these relationships is providedin Annex 2, which attempts to set up an index of susceptibility. This section summarizes the dataavailable on erosion impact.

36. In terms of on-site effects, the multi-storied canopy of upland forest intercepts rainfall andreduces erosion. Under closed canopy (70-80 percent) conditions estimates of natural soil loss are 1.0tons/ha/year. When the forest canopy is completely removed, and the land is cultivated, this lossincreases to 100-150 tons/ha/yr on slopes of 5-6 percent, and up to 350 tons/ha/yr on over 30 percentslope. Soil loss is generally highest in the first year and then declines at a declining rate in followingyears. Agricultural yields mirror this trend. Among annual crops, cultivation of cassava and maizeresults in the greatest soil loss. Perennial crops cause less erosion than annual crops because the soilsurface in not disturbed as frequently in the cultivation process. Geographically, soil loss is most acutein the Northern Mountains where a high degree of inherent susceptibility to erosion is combined with theproduction of annual crops such as upland rice, maize, and cassava. Land productivity studies of SonLa Province, for example, show that upland rice yields on barren land can decline on average by 50percent per year. The farmer can only cultivate the land for three years before the yield drops so lowthat 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 theerosion process runs-off into the rivers and eventually makes its way down to the deltas where it isdistributed by floods. The sediment load in the 40 main rivers in Viet Nam is high, starting at 0.2-0.4kg/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 ofreservoirs, dams, and flood control systems has resulted in the trapping of this fertile sediment, whichessentially 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 ofwidespread flooding even more should the levees burst.

38. A more dramatic off-site effect is the flooding and landslides resulting from bare "barrenlands".

"Nature has wreaked a fierce revenge for the wholesale destruction of forests in Northern VietNam, 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 watersmashed through Muong Lay, about 300 km northwest of Hanoi on an upper tributary of theRed River. The deluge swept away four of the town's five bridges and flattened homes, schoolsand offices. Fourteen days after the tragedy, roads through the barren hills, which lost tonnesof topsoil, were still blocked and authorities were unable to deliver 50,000 tonnes of rice tohungry 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, wererecently hit by the worst floods in 42 years--with hundreds of persons reported dead or missing

- 69 - Annex 3Page 13 of 13

and damage to property estimated at over 70 million dong. Quang Ninh alone had more than30 dead and 12,000 houses destroyed or damaged. In particular, two of its villages, TruongXuan and Truong Son, were completely devastated and more than 4,000 villagers had to takerefuge. Most observers believe that it was mainly due to the deforestation at the headwaters ofthe Gianh River" (Viet Nam News, December 13, 1992).

39. The most critical watersheds are characterized by a high rate of sedimentation, a torrentialflow due to high elevation and short course, and the occurrence of intensive agricultural activities. Thesecircumstances are found in the Red and Da rivers in Northern Viet Nam, the main rivers in Central VietNam, and the Dong Nai river in Southern Viet Nam. On the basis of silt load per km2, the relativeimportance 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 halfa million tons of phosphorus per year. The Da river watershed is estimated to have an average soil lossrate 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 theNational Institute of Energy, despite an original capacity of 20 billion ml the power station's effectivelife 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 indicatesthat the deltas are extending into the sea at a rate of about 50 m per year. The most pressing issue is theport of Hai Phong, which is seriously threatened due to the high cost of frequent dredging, and plans arebeing 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 Vietnamtoday, both at the ecosystem- and species-levels. However, the precise rate and magnitude of the lossof biodiversity is difficult to ascertain given the patchiness of data collection, some of which have beendisrupted by the war, and the lack of time-series data. In more qualitative or non-value terms, expertsindicate that forest fires and human settlement have seriously degraded the lower-montagne evergreenforests of the central highland. In addition, coastal marine ecosystems have been seriously threatenedby municipal and industrial wastewater, over-fishing, and the use of dynamite to extract coral for limemanufacturing.

42. Current rates of extinction among both flora and fauna in Viet Nam are estimated to be 100to 1,000 times what they would be under natural conditions. It is widely believed that Pongo pygmaeuswas the first species to have become extinct since the Pleistocene Era. In 1904, Dicerorhinus sumatrensisvanished. Since then four other species of ungulate (Cervis nippon pseudaxis, C. eldi, Bos sauveli andBubalus arnee have followed the path to extinction. In addition, at least five species of large waterbirdhave 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 latteris 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 4Page 1 of 8

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR 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 SecondIndochina War of 1961 to 1975. The strategy involved the destruction of the natural resource baseessential to the agrarian society of Viet Nam. The theater of these operations was mainly Southern VietNam. The result was not only heavy direct casualties and continuing medical complications, but also thewidespread disruption and degradation of productive ecosystems.

2. Almost two decades have elapsed since the end of the Second Indochina War. TheVietnamese 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 from100,000 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 thepressures of population expansion and rapid development. This annex quantifies the extent of damageto inland forest, mangroves, and agricultural land caused by the war, and evaluates its long termecological effects. In doing so it attempts to rationalize divergent estimates of the damage. It concludesthat the environmental damages caused by the war are often sensationalized and sometimes mistakenlyidentified as the current cause of ecosystem degradation.

3. Bombs, herbicides, and heavy machinery were responsible for the majority of environmentaldamage caused by the war. These means of damage were targeted against upland forest, mangroveforest, and agricultural land. Areas that warrant further investigation into the costs and benefits ofreclamation are bomb damaged agricultural land, the 51,000 ha of upland forest that were defoliated 4or more times, and the 27,000 ha of Melaluca dominated mangrove that were completely destroyed. Oneof the least understood and potentially most detrimental aspects of the war is how the modification inspecies 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 thevery high levels of DDT measured in humans. Medical complications include the likely increase indioxins in Southern Vietnamese which will probably lead, on a population basis, to increased rates ofcancer, immune deficiency, congenital malformations, and neurological damage including IQ reductionand 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 4Page 2 of 8

released 108 five hundred pound bombs, which scattered over an area of 55 ha. Each bomb created acrater 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 warin 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 directedagainst 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 interferingwith 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 depositedin the environment.5

Table 1: Major herbicides used in the Second Indochina WarName 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, therebytrichlorophenoxyacetic acid (2,4,5-T) and 2,4- supplying 15.31 kglhectare of 2,4,5-T and 13.61dichlorophenoxyacetic 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, thereby2,4-dichlorophenoxy-acetic acid (2,4-D) and 4-amino- supplying 6.73 kglhectare of 2,4-D and 1.823,5,6-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, therebycacodylate) and dimethyl arsinic (cacodylic) acid. supplying 10.42 kg/hectare in termns of acid

equivalent (of which 5.66 kg/hectarc is elementalarsenic).

source: SIPRI, 1984

8. Ninety five percent of the defoliants were dispensed from C-123 transport aircraft equippedto 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 anaverage contaminated strip at 300 m wide6, while US sources estimate it at 100 m wide7). Driftoccurred at wind speeds greater than 5 m/s. Known herbicide expenditures against South Viet Nam from1961 to 1971 were 70.72 million L (discrepancies in total herbicide quantity differ between sources basedon 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 forestand woody vegetation and 14% against agricultural crops.9 Roughly 34% of the target areas wereattacked more than once."' Defoliation missions were restricted almost entirely to the Southern part ofthe country. For example, many roadside areas in Dac Lac Province (especially along segments in theold Highway 14) were defoliated in 1,000 meter-wide strips on either side of the road. Some of thesestrips 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 ofthe volume or type of incendiary devices used during the war. Among the targets were the roadsteadsand 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 effectiveburning could take place. If this is true, the indirect impact of this tactic (given the persistency ofrhizome roots of this grass which proliferates after fire) may well constitute the most persistent negativeeffect on crop productivity. Quantitative estimates of the impact of imperata grass ranges from 1.0-1.5million hectares.

11. The US forces began employing 200 twenty ton D7E caterpillar tractors to clear forest andlevel 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 welldocumented.

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, theywould cover an area of perhaps 104,000 ha. About 4.9 million ha of forest were subject to shrapneldamage.'4 It is estimated that 19% of the total or 1.1 million ha of dense inland forest was sprayed atleast once.'5 This activity was most intense in the provinces of Tay Ninh, Song Be, and the Ma Da forestin Dong Nai. Upland forest tree mortality increased exponentially with each repeated spraying. About51,000 ha of upland forest were sprayed 4 or more times and experienced 80-100% tree mortality. Theremaining 1.05 million ha of upland forest was sprayed one to three times and experienced 10-50% treemortality.

13. The abundance of craters in the forest makes logging more difficult than normal. The logsmust be cut shorter for maneuverability during skidding. Shrapnel damaged trees are unlikely to havemaintained any commercial value. Management of bomb damaged forest costs about twice as much asundamaged forest. Rehabilitation, which involves opening the canopy for young trees and re-seedingvaluable timber species, costs about US$ 100 per hectare'6 . The spraying of Viet Namn's dense inlandforest, 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 intoaccount the areas taken over semi-perrnanently by grasses. The 51,000 ha where vegetation wascompletely destroyed rapidly became occupied with pioneer woody (Bambusa, Thyrsostachys, andOxytenanthera) and herbaceous grasses (Imperata cylindrica). The tenure of these species is prolongedby fire. Recovery of grass infested lands by harrowing or disking followed by planting with Acacia orEucalyptus costs about US$ 500 per hectare in 1992." At the Ma Da Forest Enterprise in Dong Naiprovince, natural re-invasion by native tree species is encouraged by first establishing plantations of fastgrowing 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 andDipterocarps costs US$ 1,000 to 1,500 per hectare in 1992, including the cost of clearing unexplodedbombs 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 foodand cover provided by the forest. Many animals probably migrated to eastern Cambodia in response tothe military activity. However, these areas were most likely already populated to carrying capacity, andthus were unable to provide substantial refuge. In 1968, five animal species were listed as being on theverge 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 specieswere probably already endangered due to the extensive logging activities that took place in the 1940's and1950'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' From1985 to 1987 elevated levels of dioxin were measured in food and wildlife samples collected at marketsin Southern Viet Nam.22 Overall, it appears that the war was only a minor factor in the degradationof 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 theSaigon River. The river channels were cleared of vegetation to facilitate supply ships entering Ho ChiMinh City. The second most severely damaged areas were the U-Minh forest and the Cau Maupeninsula. There is no record of the extent of bomb damage directly incurred by the mangroveecosystem. The bomb craters disrupted water flow and filled permanently with water, becoming breedinggrounds for malaria bearing mosquitoes.

18. The mangrove ecosystem is particularly susceptible to defoliants, with a single sprayingdestroying the entire plant community. Destruction was exacerbated by salvage harvesting of the deadtrees and/or application of incendiary devices. About 124,000 ha of true mangrove and 27,000 ha ofMelaluca mangrove forest were completely destroyed;' representing about 30% of all mangroves inViet Nam.

19. Mangroves grow along deltas and in estuaries and are a pioneer species on newly accretedcoastline. 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 hightide, the forest becomes dominated by trees of the species Melaleuca.

20. Natural regeneration of mangroves is related to the accessibility of seed bearing tidal watersto damaged areas. In the early 1980s, 5-10% of the mangroves were still barren, the rest had eitherregenerated with a composition of 10% Rhizophora (the economically most important of the species) and85 % other species, or had been converted to agriculture and aquaculture. Where mangrove species areestablished, a crop of firewood can be harvested in 5 years. Officials at the Duyen Hai Forest Enterprisecite that in 1992, costs of replanting Rhizophora were about US$ 70 per hectare, excluding bomb craterreclamation. 2 4

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 4Page 5 of 8

efforts such as the establishment of the Tram Chin Reserve in the Plain of Reeds, to which theendangered 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 ofestuary habitat as a breeding and nursery ground. Hong (1986) estimates that between 2.7 to 4.5 millionkg of shrimp per year have been lost due to the defoliation of the Ca Mau peninsula.' At aconservative price of US$ 1/kg (1993 constant price terms), the cost of wetland deforestation may be veryroughly estimated at US$ 2.7-4.5 million per year or US$ 162-270 per ha/year from the approximately150,000 ha destroyed over 9 years (16,700 ha/yr). However, despite the 74,000 ha of forest that werereplanted after the war, an additional 100,000 ha were subsequently cut for fuelwood, and cleared foragriculture and shrimp farming.26

Ecological Effects on Agriculture

23. The exact location of the agricultural areas targeted by US bombing activities has not beenreleased. However, extensive damage exists in selected areas of Quang Tri, Tay Ninh, and Gia Laiprovinces. The persistent damage consists of unexploded mines and bombs and bomb craters. It wasestimated in 1976 that some 400,000 unexploded bombs and 2 million unexploded shells remain buriedjust below the surface of Indochina.27

24. The process of land recovery involves clearing the land of unexploded munitions andlevelling the bomb craters. It can take up to 500 hours of labor to fill a typical crater created by a 500pound bomb.28 Disrupted irrigation systems and bomb destroyed sea-walls also necessitatereconstruction and soil reclamation. In Ben Hai district, Quang Tri province, the removal of unexplodedbombs 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 missionstargeted 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 of177,000 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 mobilityin the soil. Environmental insignificance (lack of effect on all but the most highly sensitive ofsubsequently planted subspecies) was reached within 2 months for the active ingredients in all herbicidesused during the war."

27. There are several examples of complete destruction of agricultural lands and communitieswith 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 Duongprovince), and also in the provinces of Dong Thap and Vinh Long. The current condition of these areasis unknown. However, it is assumed that any regrowth is dominated by Imperata cylindrica and, onhigher ground, Pennesitum.

Effects on Human Health

28. The wholesale bombing of the countryside caused many casualties and deaths. Long-termeffects include loss of limbs and psychological complications. The most important and destructiveherbicidal 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 whichwould have been agent "Orange".32 Vietnamese sources estimate that close to 2 million people werecontaminated during the spraying operations.33 Bomb and herbicide damage also led to a markeddecrease in food resulting in increased malnutrition.

29. Agent "Orange" accounted for 60% of the wartime herbicide spray operations. Its dioxincontent averaged 3.83 g/m3 , although certain lots contained between 10 and 20 times this amount.4 Thedioxin 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 (USestimates of the volume of dioxin released over Viet Nam are range from 100 to 136 kg36). Dioxin canbe conveyed to the food chain in other chemicals, through water, and through the air. The action of windand water is expanding the area of contamination. However, the severity of contamination is decliningthrough scattering and decomposition. Elevated levels of dioxin are still measured in the Ailt in SouthernViet Nam.

30. Persons exposed to agent "Orange" are thought to be at higher risk of cancer, adversereproductive outcome, immune deficiency, endocrine disorders of several types, neurological damage,skin disease, and other health damage.3' Although there is documented evidence of increased dioxinlevels in Vietnamese from many parts of the country, no definitive association has been shown with thewartime 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, lessthan 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 thancontinuing 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 19 80.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 NaturalResources 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 theNorth 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 issuedby 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 5Page 1 of 8

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR 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 theHill areas of Viet Nam. These programs were designed to address GOV's concern for land degradationin the Highlands, the poverty level of ethnic minority populations located in this region, and the securitystatus of inhabitants bordering Cambodia, Laos, and China. This annex reviews the following threeinterrelated 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 landdegradation 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. Thispopulation redistribution program has four objectives: (a) to match human resources with agriculturalresources, (b) to develop the agricultural sector of the economy, (c) to create opportunities foremployment in the agricultural sector, and (d) to strengthen national defense. In the 1960s the DemocraticRepublic of Viet Nam encouraged approximately 1.0 million people to migrate from the Red River Deltato the Northern Midlands and Highlands. Inexperience coupled with inadequate preparation forced manyof the migrants to return to their former areas of residence. After reunification in 1975, and up until1989, all migration was controlled by the GOV. The GOV population redistribution program can beseparated 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 5Page 2 of 8

3. Of the 2.4 million people who were officially resettled from 1981 through 1990, about 75percent moved within their own provinces. Of the approximately 590,000 people who moved outsidetheir provinces (1981-89), 75 percent moved from the North to the South. The origin of this North-Southsponsored provincial out-migration were essentially from two population-surplus regions: (a) Red RiverDelta 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 KonTum, 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 MidlandMountain Regions, the Central Highlands, and the Mekong Delta had sponsored settlements almostexclusively within their own provinces (see Table 2).

Table 2: Officially Sponsored Settlement, 1981-89 ('000 Persons)

Region of Origin Total Within OutsideProvince 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 saidto 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, improvedtheir 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 suitablefor agriculture. With the liberalization of controlled migration since 1988, however, the situation couldchange 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 priorto Doi Moi, most of this spontaneous migration took place after 1988. This meant that perhaps about

- 80- Annex 5Page 3 of 8

20 percent of the resettlement which took place at the end of the decade of the 1980s was not officiallysanctioned. These involved primarily the movement of ethnic minorities from the Northem Midlands andMountain Region to the Central Highland Region.

6. From 1986 through 1992, about 13,000 primarily ethnic families (65,000 people) comprisingmainly 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 continuewithout 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. Theseresidents 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 theserelatively more favorable areas, more unofficial migrants are thus encouraged. The able bodied adultsstake a claim by starting to cultivate "unused" land by gradually cutting down existing trees and, ifpossible, manually constructing small irrigation works. These activities are, in effect, undertaken by tacitagreement of the local authorities. If such a trend were therefore to continue, the pressures ofdeforestation on the remaining biological resources would be devastating. Delineating priority areas fordemarcation and protection must begin immediately and settlement in these areas will have to be carefullyplanned 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, theone with the largest implication for forest degradation and soil erosion is GOV's Fixed Cultivation andSedentarization Program. This program, administered by a Department for Fixed Cultivation andSedentarization (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 millionpopulation 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 encouragesocio-economic development and improved income activities (including the provision of education, watersupply, and health support services).

8. Other parallel sub-programs administered through the Provinces, state enterprises, and theMinistry of Labor, Invalids and Social Affairs pertain to the North-South sponsored resettlement to theplateaus 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 topromote the establishment of "new economic zones" for permanent settlement of households from laborsurplus provinces in the Northern Region and provide financial support for cooperatives and state farmsto invest in infrastructure construction and production services. The program also provided opportunitiesfor ethnic minorities to adopt permnanent settlement, and additional financial support was provided fortheir productive agricultural activities. The approach adopted was for GOV to first identify the lowpopulation density areas with good potential agricultural land (mainly in the plateaus of the CentralHighlands) and target population surplus areas for promotion of resettlement. Mass media and noticesat the provincial and district offices of the Ministry of Labor, Invalids, and Social Affairs set out therequirements in terms of types of settlers needed. Preference was given to younger, able-bodied marriedcouples that: (a) were willing to face the difficult frontier life, (b) had the background or training whichcould fit the agricultural enterprises that were to be promoted, and (c) had some of their own savings tostart a new life. Selected families are given a payment for moving their household, a lot at the reception

- 81 - Annex 5Page 4 of 8

site and supervision to establish their agricultural enterprise 1/. In the earlier years (prior to the1980's), return rates to the cities and as a proportion of refugee outflow was reported to be as high as50%.

9. Elements of the settlement programs were modified as Government policy evolved over theyears--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 stateenterprises). They were given long term use rights (30-50 years) for agro-forestry and were alsoprovided initial exemption from agricultural taxes if they were practicing agro-forestry. Grants weregiven for up to two thirds of the cost of developing a new block of land (up to a maximum of one milliondong/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 peoplevoluntarily moved from the Red River Delta and Central Coastal Regions and 111,000 from Northeastof 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 Dongprovince, for example, were chosen from the Red River Delta Provinces because of their background insericulture. A number upon resettlement, however, chose to grow coffee (which was less labor intensiveand thus able to be tended by the women and children) while the able-bodied male members of thehousehold 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 agriculturallysuitable land and improved the livelihood of the settlers. However, in the Northem hill areas, wherenatural forest areas are limited and holdings are more steeply sloped and relatively smaller in size becauseof population pressure, commercial success has been encountered only in some settlement areas (primarilythe 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 andsedentarization programs, the predominiant problem existing in the Northern hill areas continues to beunsustainable land use/farming practices.

11. From more than 20 years of implementation of the Fixed Cultivation and SedentarizationProgram, 66 percent (1.9 million persons) of the original resettlement target (2.9 million) have adoptedpermanent 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 needfor Government support, (b) 40 percent (about 0.8 million) may be considered to be marginally successfulin that Government support for production activities is still needed, and (c) the remainder have provedto be unsustainable even with Government support (i.e., they continue to destroy the forest and practiceslash-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 'ShiftingAgriculture in Laos and Viet Nam, its social, economic and environmental values to Alternative Land Uses", ChiangMai (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 Highlandswhere production conditions are more favorable. The main lesson is that new settlements cannot bestarted in productively unsustainable areas. Choice of areas with good chances of success andcareful 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 theconstruction of the large Vinh Phu Pulp and Paper mill in Bai Bang, Northern Viet Nam under SIDAassistance. The mill initially used standing stocks of raw material including bamboo from home gardensand plantations of "quick" growing trees (Stvrax and Mangletia spps.) harvested from the mountainousareas fringing the Red River Delta. Since the early 1980s, however, the state enterprise responsible forprocuring raw materials for the mill began establishing new plantations in the more accessible lowlandsand along transport arteries to ensure future supplies close to the mill 4/. The conflict in land useresulting 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 newlyreforested plantations. Thus, trade-offs between industrial development and household use have to betaken into account in designing any commnercial reforestation program. Allocation should be given to theloss of use of what is ostensibly "unused" barren land; otherwise, the success of the commercialreforestation program would be compromised.

13. SIDA's mill support program included the establishment of a Plantation and SoilConservation (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 maximizingproduction from intensive forest plantations to the detriment of the restoration of longer term fertility ofthe soil 51. The PSC project succeeded, however, in providing tree seedlings over and above theindustrial program requirements to enable the populace in need of tree products to grow their own treesinstead of "plundering" the industrial plantations, but the concerns of the affected households were notfully taken into account. The promotion of reforestation remained focused on a specific technologytransfer approach (monocropping with primarily Eucalyptus and Acacia spps.) on specific sites ("barrenhills" on the lower Midlands) rather than on identifying and helping farmer groups to tackle their problemof fuelwood shortages. This rather modest impact in successfully reaching rural households stems fromthe close association of social forestry activities with the large scale industrial program and the rigidityof planting guidelines set at central, provincial, and project level. Without a program that explicitly takesinto account the interest of affected stakeholders, commercial agroforestry may not be sustainable in theseresource-poor areas.

15. Unrealistic technology rigidities in the system are also counterproductive. The FTP projectfor 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 RecentlyReallocated 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 5Page 6 of 8

opportunity for a diversity of farmer actions, uniformity by and large prevailed--determined primarily bythe interest of the cooperatives. Besides the required mono-cropped tree species (eucalyptus), guineagrass was planted by all farmers (even those without cattle). It tested models on agro-forestry and soilconservation (e.g., Fanya Juu from East Africa) which required terrace run-off construction involvingsubstantial earth moving. The FTP project experienced difficulties in implementation because theapproach was totally new, highly management intensive (by local standards) and, where successful, hasproved to be difficult to sustain. Also, local innovations which could be more successful (e.g., basedon elephant grass and other vegetative stabilization technique with bamboo run-offs, the excess beingchanneled to fishponds) were not adequately exploited. Furthermore, the extension support and trainingto be provided by Government were insufficient with project tasks added on to district staffs' regularduties.

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, farrnlevel forestry support and improved forestry research and training (including the training of extensionworkers in participatory rural appraisal, which permits the project to better appreciate the differentconditions faced or enunciated by the farmers). Land allocation, security of tenure, and appropriatetechnology 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 in1976, (a US$ 17.1 million project) faced similar logistical and farm level difficulties which have beentaken into account in its present phase which began in 1989. The project's primary objective is toestablish 70,000 ha of concentrated forest plantations and 11,000 ha of dispersed plantations in themidland areas of Bac Thai, Hanoi, Ha Son Binh, and Vin Phu provinces where, in general, the ethnicminorities are integrated with the Kinhs. It is essentially a reforestation/afforestation project emphasizingthe replantation of eucalyptus, acacia, manglieta, melia, styrax, and bamboo on severely eroded areasto provide additional fuel and pole wood, reduce the stress on natural forests, and provide for subsistenceand local market needs. It's main advantage is that it is being implemented in an environment that willfacilitate the reallocation of forestry land from state entities to individual farmers. In principle, this typeof land allocation should address one of the most important constraints to successful reforestationprograms--the lack of incentives to increase efficiency and to protect and adequately manage establishedplantations. Project participants obtain long-term leaseholds which are officially recorded as land tenuredeeds. Some problems have been encountered with these issues, especially with respect to ethnicminorities. Because of the chronic structural food deficit situation in the project areas, and with projectbeneficiaries comprising poor households with very limited capacity to buy additional food, WFP fooddistribution is a key ingredient for project success. Project proponents contend that the WFP fooddistributed would not only have little effect on food production incentives, but would provide the stabilitywhich would enable the household to take the risk of adopting the cash cropping systems or erosioncontrol measures being promoted.

18. A number of local government initiated programs have also been implemented in parallelwith foreign assisted programs, often in the same villages and in a number of instances coveringduplicating beneficiaries. Households were often confused by the differences in obligations andconditions 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 5Page 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 Namis the promulgation by the Council of Ministers, of a Decree (COM Decree 327) in September 1992which 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) haveproposed 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 theunderutilized barren uplands throughout the country with emphasis on linking agriculture, livestock, andforestry and on increasing the protection of reserved forests and head watersheds. The focus would beon households as the basic production units with particular emphasis to be given to productiontechnologies or products for manufacturing industries, and on environmental protection. Guidelines weregiven 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, includingthe role of the key agencies to plan, approve and implement projects to be supported. Annual commercialtimber production quotas/targets were reduced from about 1.0-1.3 million m3/year to 800,000 m3. (SeeAnnex 6 which sets out the decree).

21. From initial observations of this program in mid-1993, a number of concerns are worthnoting. The first relates to the appropriateness of the stated goal of increasing 'the production of rawmaterials and commodities for industries' in an environment with inadequate infrastructure and whichpresently 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 expansionof industrial cropping. With planners working from clearly inadequate land resource data bases it ispossible, even probable, that the assumed barren land resource is already extensively utilized withintraditional 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 boththe program administration and affected household levels should first be sought before technology orinvestment measures are contemplated.

22. The second major concern involves the level of farmer participation in resource use planningunder the decree. While such intent is indicated in the decree, particularly Articles 2 and 3, it iscontradicted 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, whichintimates 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 areasand mountains", which may leave little scope for additional investment planned by and with ruralcommunities.

23. These perceived "hooks" in the program were bome out to a considerable degree by missiondiscussions with provincial staff and national planners. Although a detailed breakdown of the 1993Decree 327 program was not available to the mission, infornation collected from a variety of sourcesindicates that the projects, apart from those involving New Economic Zones, are:

- 85 - Annex 5Page 8 of 8

* typically linked to state enterprise managed programs with rural families mainly workingunder share farming agreements;

* directed to a considerable degree toward the refinancing of ongoing, though possiblyreoriented, state enterprise projects;

* focused mainly on production investment (70 percent in the case of MOF projects andpossibly more with MAFI livestock projects) with only limited investment in ruralinfrastructure;

* managed largely by state enterprise employees transferred to Decree 327 projectmanagement with its associated incentive payments and performance bonuses.

A "zero-based" budgeting approach, whereby all projects have to be rejustified on the basis of clearcriteria 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$ 45million allocated as of May 1993, and approximately US$ 7 million disbursed across the countries 53provinces. 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 principallyconcerned 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 Committeefor Ethnic Affairs and Mountain People, working through the Department of Fixed Cultivation andSettlement (DFCS). DFCS has already settled 500 of the estimated 2000 itinerant communities involvedin 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 percentof their estimated requirement of US$ 2,000 per family for effective settlement. While full details of theinvestment program were not available to the mission, it was evident from discussions with DFCS andprovincial authorities that budget allocations fell well short of estimated requirements withoutcorresponding reductions in planned outputs. By the end of 1993, however, about D 520 billion (nearlyUS$ 50 million) were spent as follows: (a) roughly D400 billion on capital investment--for 1122 projectscomprising 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 settlementsupport; and (b) D 120 billion on administrative and operating costs.

25. In summary, these projects, mostly planned without sufficient information for prioritizationon the basis of land use and capability classification or enterprise profitability, are typically ongoing onesthat had completion dates set years ahead. Even then, with widespread coverage to virtually all provincesand insufficient resources (both financial and human), a lot of the critical input deliveries (e.g., seedlingsfor trees) were short and initial investments remain uncompleted. Because implementation had not beenlinked to priority needs and to fulfilling prerequisites for success (both technical and organizational) thereis a risk of resource wastage as resources are spread too thinly to achieve the stated objectives. Thereis a very real risk that the 1993 and 1994 ongoing programs will absorb a growing amount of Decree 327finances in coming years, thereby reducing opportunities for financing new and better planned programs.

- 86 -

VIET NAM Annex 6Page 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 Councilof 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 toexploit the potential of unoccupied land in the hilly regions, denuded beachesand waterfronts in order to increase the production of raw materials andcommodities for industries. It will also lay the groundwork to divide the land,settle the population, link social and economic needs, as well as stabilize andraise the material and spiritual standard of living in the new economic zones,in order to stimulate the residents to increase their production efforts andconsolidate the national security.

HEREBY DECIDED:

Master Guidelines:

Article 1. According to the strategy for economic and social developmentto the year 2000, all government levels and branches must mobilize their effortsand financial resources to participate in the projects using the unoccupiedlands, denuded hills and mountains, forests, beaches and waterfronts. Theprovinces in which these are found must develop projects to fully utilize theland within their territories;s the others must mobilize their inhabitants toparticipate in the projects in the neighboring provinces.

Article 2. Projects must correspond to the investment capacity ofthe people and must be related to dividing the land and settling the populationin the frontiers. These must have priority, along with those that can have animpact in the near future. Projects for existing forests and farmlands, includingthose of the military, must be of a scope similar to that of the undevelopedareas. The forest, livestock and agriculture projects must include a productionstructure and be closely linked to the forest, agriculture, industrial andservice sectors, as well as to commodity production, the processing industriesand domestic and external markets. Further, it is necessary to increase the areaof protected and reserved forests and head watersheds, and to clearly definewhere exploitation of lumber, firewood, or other forest products is prohibitedor permitted.

- 87 - 87 ~~~~~~~Annex 6

Page 2 of 6

Article 3. Households are considered the basic production units; stateenterprises or collective economic units are supports on which to build; the"garden economy" must be developed for households. Close links must be madebetween households and the community, as well as between collective and state-runenterprises so as to expand production, protect the interests of each household;the Government and collective units must carry out their obligations; economicdevelopment must be linked to expanding social welfare; national defense andsecurity must be ensured; and rural areas must be developed.

Article 4. It is important to stabilize villages where the land has beendivided and the population settled as well as to undertake this process where ithas not yet occurred. Where the populations are still nomadic and burn anddestroy the forests for cultivation, they must be encouraged to develop farmingsettlements, plant trees, raise cash and food crops and livestock.

Article 5. The design and implementation of projects that focus onproduction 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 andexploit (for production) the hilly areas, mountains and beaches, and protect,care for and replant forests of all types. Each household (including thosealready settled) will be given a certain area of land/forest to replant, protectand tend. This will occur according to priority orders, on the funding availablefor land, on the capacity of each household to work the land, on local livingconditions (including those of newly settled families), on the investmentcapacity of the State, and on the labor and capital available from the economicentities. The total area for each project is 5,000-10,000 hectares, depending onthe type of project envisioned, and will be equal to a commune or village in thehighlands, in order to form the basic administrative, economic, social andnational defense unit that would be suited to the investment capability of theGovernment and people.

With regard to projects to extract resin from pine forests (both from forest andindustrial trees), each should be 3,500 hectares. Each household will be givena certain area of land (according to its capacity to work it and the availabilityof investment capital) to replant, manage, protect, and prepare for productiveuse.

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- AnnexPage 3 of 6

industrial crops, as well as food crops, out of which each household is allowedto farm up to 5,000m2 for its own use and a piece of pasture land for breedingpurposes.

Article 7 With regard to the projects to plant industrial cropssuch 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 thenew commune. Each household will be given areas to plant the crops (mentionedabove), the size of which will depend on its capabilities and the availabilityof investment capital. Households will have the use of these areas for a longperiod and can appropriate 3000m2 for their own agricultural use.

In the immediate future, projects of this kind should be based on agro-forestryservices directed by the State . In unoccupied barren, land, there is potentialto expand such projects, but they should first be carefully formulated andprepared.

Article 8 Within the livestock breeding projects developed at thecommune level, each household will be given land to plant fodder or to raiseanimals. At the same time, each household will be given land on which to developshort- and long-term industrial crops, food crops and to cultivate a garden.

Article 9 For projects involving the use of barren beaches andthose devoted to fish farming in areas of about 700 hectares (which could holda commune), each household is given some land to raise shrimp, crabs and seaweedand 700m2 to cultivate. The State will invest in and assist the building ofinfrastructure, and will be reimbursed in discounted installments . Eachhousehold will finance the infrastructure for the fish farming through itssavings or with bank loans. The investment needed to reclaim small beaches andwaterfronts of less than 700 hectares will come from the local authorities or begiven to households.

Investment Policy

Article 10 The investment capital provided by the Government to developvacant beaches and hilly areas (for afforestation, farming, human settlements anddevelopment of new economic zones) is from the following sources: (a) theGovernment budget, (b) forest resource taxes, foreign aid and loans, and privateinvestment from entities and individuals. In particular, the forest resource taxwill be targeted for investment in forestry programs. Of the total fundsprovided, 60% will be spent for the construction of infrastructure, forscientific and technical facilities, for public welfare services, foraf forestation, for the planting of the reserve and special use forests, for thenational genetic gardens, for resettlement of original residents, and for thefirst six months after land clearing. This capital will be directly invested withthe project recipients and need not be reimbursed. The remaining 40% will beloaned 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 bedefined according to the type of crops being produced.

Households entering new economic zones will be allowed to transfer the rights tothe cultivated land and the residences being left behind in order to accumulatemore capital to invest in the new locale.

The works of the new projects will not be obligated to keep aside 10% of theinvestment capital (for use by Government) . However Ministries managing theprojects will be allowed to take 5t-6t of the total investment capital to use forextension services, technology transfers and management efforts.

Article 11 The Government strongly encourages the development ofcommercial businesses, stockholding companies, corporations and private companiesincluding joint ventures between companies or individuals and foreign entities,to invest in agricultural cultivation and livestock breeding in newly developedlands. These economic units will use undeveloped lands, hilly areas, beaches andwaterfronts in a manner that is suitable to the land in each area and theinvestment capacity of each business (whether plantations, farms, etc.).

Organizing, carrying out:

Article 12 From now until the year 2000, the Government has reserved acertain amount of capital to be invested each year for a program to plant andreforest the unoccupied coastal land, hilly areas and mountains. The program willbegin in 1993, so as to actively prepare for 1994. SPC will determine in the nearfuture the investment level for this program and will submit it to the Councilof Ministers and National Assembly by the end of 1992.

Article 13 The Ministry of Labor and the Ministry of Social Affairs areassigned the task of studying and making an early report to the President of theCOM on the subsidy policies for transporting the households to be moved,temporary lodging, food and the cost of clearing the land in the first sixmonths, to encourage the process (moving the households) and build the neweconomic 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 tothe draft version of the Agricultural Tax Laws to be submitted to the douncil ofMinisters and the Congress.

Article 14 Scientific and technical cadres, as well as managerial cadreswho execute the projects, extension services and technology transfers will begiven incentive salaries, especially if located in the highlands. If the projectsare effective, they will be awarded bonuses. The Ministry of Labor and theMinistry of Social Welfare are mandated to meet with other ministries to reportto the Chairman of the Council of Ministers this matter.

-90- Annex6Page 5 of6

Article 15 The primary ministries, in conjunction with the relatedministries and agencies, must complete by the end of January, 1993 theorganization plan up to the year 2000 for the agricultural, forest and maritimeprograms that will be the basis of the development plan of the projects describedabove. These ministries will also directly assist the provinces, districts andforest and farm camps to develop a number of pilot projects related toagriculture 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. Butprojects with an-Qfficial plan and those that entail simple repairs under thetechnical 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'sCommittees should select the project directors and managers and transfer someexisting agriculture and forest camps to the nationalized businesses based onDecree NO. 388-HDBT of the Council of Ministers. This task must be completed inthe 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 toexamine 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 projectsrelated to their ministries, and the projects to raise the marine products in theareas of over 700 hectares. The chairman of the Provincial People's Committeewill be responsible for examining the important aspects of the projects.

- The chairman of the People's Committee of Provinces and Cities that belongto the central authority will be responsible for approving the project (in thatprovince) and the projects related to the existing agricultural and forest campswhich are under the provincial management. The chairman will also assume themanagement of all projects to be carried out within the province.

- Two national science centers and the State Science Committee areresponsible for inspecting the details of the projects that relate to science.

Article 18 The State Planning Committee(SPC) will coordinate with theMinistry of Finance to examine the projects that need to be approved by thepresident of the Council of Ministers and to inspect the important aspects ofsome projects to be examined by the ministries and the People's Committee ofprovinces and cities. SPC will put together all policies and investment plans ofthe projects for 1993 to be submitted to the COM. It will also prepare the planfor 1994. Once the plans are approved, the responsible ministries and localitieswill distribute the funds for the projects. The Ministry of Finance will inform

- 91 -

Annex 6Page 6 of 6

the treasury to issue the funds directly to the project managers and to provideloans 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 ofLabor, Veterans and Social Affairs is responsible for developing the policy tomove workers and the population, for the policy with regard to the cadre and forthe policy to manage and distribute the investment capital, in order to meet theneeds of the projects.

Article 20 The ministries and Government committees that are related tothe projects are responsible for selecting the expert cadres to undertake theprojects, to promulgate (on time) the policies and guidance and give orders toagencies and those who work under them,

The Comrade Special Correspondent to the Council of Ministers is responsible forhelping the Council and the President coordinate the effort between the branchesand localities to inspect, direct and suggest the measures to carry out thisresolution.

- 92 - Annex 7

Page 1 of 11

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR 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 VietNam. The Government of Viet Nam (GOV) is eagerly promoting soil conservation projects for tworeasons: (a) there is an abundance of degraded land in the watershed, and (b) there is mounting concemabout the high sedimentation rate of the Hoa Binh reservoir at the base of the watershed. The economicimpact of introducing four soil conservation measures (grass strips, earth bunds, agroforestry, andterracing) is simulated with a computer model. Results indicate that over the next 30 years, erosion fromupland farming activities will impose costs of about 70 million dollars on lowland farmers and reservoirusers. All of these conservation measures increase total net benefits of the affected parties. Because oftheir high initial cost, it is unlikely that any of these soil conservation initiatives-with the exception ofpossibly 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 recentlypromulgated 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) iscoordinating a 10 year program to implement decree 327. The budget allocation, although equivalent tonearly 40% of the total budgets of the Ministry of Agriculture and Food Industries (MAFI), Ministry OfForestry (MOF), and the Ministry of Aquatic Products, amounts to only US$ 70 million. About 1,800projects have been proposed for implementation. Given the financial constraints currently faced by theGOV, 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 threeinterlinked modules: (a) a core which simulates upland agriculture, (b) a lowland module which simulatesrunoff damages, and (c) a reservoir module which simulates sedimentation. Construction of an erosionsimulation model requires extensive specific information about the relationship and interaction of thesystem'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 2million hectares of fallow, 250 thousand hectares of upland rice, 150 thousand hectares of maize, and 100thousand hectares of cassava. The cropping rotation is typically 8 years of fallow followed by three yearsof upland rice, and then 3 years of maize or cassava. Fallow land is an important source of pasture andfuelwood. 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

- 93293 Annex 7

Page 2 of II

cultivation. Upland rice cultivation expands at the rate of population growth. Erosion in rice and maizefields 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 byconstructing silt traps at the foot of slopes (Truc, 1990). In narrow valleys the upper most paddy is left toimpound runoff and sediments. The accumulated sediments are dug out and carried back uphill in shoulderbaskets to spread on the fields. This is done, despite the heavy human labor involved, because the mud addsfertility to the depleted upland soils. Since little generalizable information is available about the amount oflowland crops destroyed by water runoff or the volume of soil that is captured in silt traps and carried backuphill, two assumptions are made: (a) one hectare of lowland rice is destroyed for every 5,000 tons of soileroded, (b) silt traps capture 10% of the soil losses and one man day of labor is required to dig up one tonof sediment and carry it back uphill. The opportunity cost of one hectare of lowland paddy is US$ 200 peryear.

6. Sedimentation occurs when runoff reaches the Hoa Binh reservoir. The reservoir has threepurposes: (a) flood control, (b) electricity production, and (c) irrigation. The major benefits from the HoaBinh hydroelectric facility are an increase in downstream water flows in the dry season and a decrease inthem in the wet season. Prior to dam completion, flooding destroyed 1,800 hectares of lowland cropsannually. The Hoa Binh hydroelectric plant is expected to have a capacity of 1,920 megawatts uponcompletion at the end of 1993. Annual power production is 8,402 gigawatt hours and the load factor is50% (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 commandarea 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 Dawvatershed is in China. Studies show that 70 to 80% of the total sediment flow originates within China (TheWorld Bank, 1993). The average sediment delivery ratio in Viet Nam is 20%, meaning that out of 100 tonsof eroded soil, 20 tons makes it into the river system. Reservoir capacity is 9 billion m3 and the trappingefficiency 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 tobarren land agricultural activities.

8. A general lack of information about the reservoir makes it is necessary to assume a relationshipbetween reservoir benefits and reservoir capacity. This relationship presumes that a decrease in reservoircapacity leads to an equivalent decrease in reservoir benefits. This assumption can be changed as moreinformation 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 costof unskilled labor in Hanoi is about US$ 0.75 per day. Although a near zero shadow price for labor may bejustified in the typical upland areas of the Da watershed, the opportunity cost of labor in Son La and LaiChau is assumed to be US$ 0.25. Labor utilization rates are a function of yields and decline as yieldsdecline. Crop expenses are assumed to remain fixed throughout the cropping cycle. Prices are US$ 0.1 1/kgfor upland rice, US$ 0. I0/kg for maize, US$ 0.034/kg for fresh cassava (NIAPP, 1993).

- 94 - Annex 7Page 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 soilconservation 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 onerosion rates and yield levels in Viet Nam, a literature review was conducted to identify research findingsfrom other countries with similar climates and soil conditions. The results from the review are used toestimate 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 anywherefrom 8-96%, depending on slope and land use. In addition to reducing erosion, mulching increases cropyields from 24-31% for upland rice, 10-188% for corn, 33% for cassava. Vegetative strips and mulchingare almost as effective as structural approaches in controlling erosion. A conscrvative estimate for the Da isthat 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). Theydecrease sediment yields 46% on wcll-structured soils in comparison to un-bunded plots (Sheng, 1981) andhave been shown to decrease erosion rates 32% in Indonesia. Construction of banks alone has failed toshow any significant or stable increase in yields at ICRISAT, however, at other locations in India yields ofcom 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%. Thebase 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 andtea plantations an average of 18-25%. Agroforestry is excellent at reducing erosion with field experimentsin 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 measureminus total net benefits of the status quo situtation (see table 3).

95 Annex 7Page 4 of 11

15. Soil conservation cost estimates are presented in Table 2 These estimates are separated intoconstruction costs and labor costs. Grass strips and mulching, with an initial cost of US$ 88, are lessexpensive than the structural measures. Expenses include the additional labor spent cutting the grass stripsand using them for mulching. In the initial year, construction and labor costs are high for both earth bundsand terracing because of the need to build the retaining structures. Outlays range around US$ 300 perhectare for bunding, US$ 375 for agroforestry, and US$ 500 per hectare for terracing. These figuresaccord well with the costs of these measures in World Bank projects. Mulching and grass strips requireUS$ 15, and earth bunds, which are unstable, require US$ 25 in annual maintenance and replacement every5 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 Daare subsistence farmers and have little opportunity to eam cash wages. The greatest uncertainties inassessing reservoir user costs are sediment yield, bulk density, and suspended sediment trapped by thereservoir. Since the capacity of the reservoir is large compared to the rate of sedimentation, sedimentationhas a relatively small overall effect on reservoir benefits. This finding is inconsistent with the alarm beingsounded 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 lowlandfarmers 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 presentedbelow:

Affected Parties Existing Casc Incremental Ou comc of anaeen tent AltemniativesGrass Strips Earth Bunds Terraces

.____________ and MulchineFarmers Net Bcncfias 695 131 93 56Lowland Farmer Benefit -66 8 12 16Rcscrvoir 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 grassstrips and mulching altemative. This is also the most likely altemative to be adopted by the upland farmersbecause it has the lowest initial start-up costs.

19. The lowland farmers and the reservoir users are inequitably bearing the costs of erosion. Thereforethey should, in theory, be compensated by the perpetrators of the damage. However, since the farmers donot bear the costs of the damage, they have little incentive to take them into account in deciding erosioncontrol measures. The lack of information on the source of erosion and the distance sediment travels meansthat 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 tenureand property rights. Land tenure issues are of concern for three reasons: (a) tenure effects technologyadoption rates and profitability, and consequently the impact of the policy or project; (b) introduction ofspecific technologies may affect land tenure pattems; (c) failure to understand existing tenure systems maylead 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 watershedshould not proceed without identification of the full range of tenure types and the characteristics of tenurethat affect the adoption of the proposed technologies. Of particular interest is the possibility that theremight be common property management schemes already in place for the barren lands. Since thisinformation is not readily available, two assumption need to be made: (a) cultivators will be less likely toadopt technologies that have a long time-lag before they begin to generate benefits; and (b) where tenurestatus is weak the most appropriate technologies to promote should be those with quick returns andminimum levels of investment.

22. In the Da, where large tracts designated as state forest land have been converted to barren land forextended 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. Theonly in-depth study of the impact of land titling on soil and water conservation in Asia was undertaken inNortheastern Thailand (Feder, 1988). The study compared the productivity of farmers with land titles andthose with certificates of occupancy, and concluded that titles had a significant impact on technologyadoption because of their value as collateral for loans. This study suggests that soil and water conservationprojects in areas without clearly defined property rights should include titling components. Titles will givecultivators 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 yieldsmcan low productivity. Low productivity land requires a largc labor forcc which indircctly encourages alargc family sizc. The shortage of land and low productivity will lead to an impoverished population and aweak labor force. The labor force will suffer from bad health and low skills and be unablc to accumulateany savings due to their marginal existence. Thus a vicious cycle of poverty will be perpetuated. Thereforeany 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 unlesssediment entering the reservoir from other sources is controlled. This requires evaluation of sedimententering the rcservoir from non-barren land and close cooperation with the Chinese government, which willbe extremely difficult to achieve. An alternative approach to maintaining reservoir capacity would be todredgc the sediment. The viability of this proposition is unclear because of the large volumes of sedimentinvolved, and the cost of sediment removal is little known.

- 97 - Annex 7Page 6 of 11

Table 1: Crop Budgets on a Per Hectacre Basis

Upland Rice Maize Ca va FallowUnits 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 0Pesticides kg 0 0 0 0 0 0 0 0

Subtotal inputs I 11 5 0 0

LAborLand preparation Md 15 0.25 4 15 0.25 4 15 0.25 4 0 0.25 0Fertilizing Md 0 0.25 0 0 0.25 0 0 0.25 0 0 0.25 0Cultivation Md 9 0.25 2.5 8 0.25 2 3 0.25 1 0 0.25Harvsting Md 10 0.25 2.5 10 0.25 2.5 15 0.25 4 25 0.25Transplantation 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 25Animal 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 7Page 7 of 11

Table 2: Per Ha Cost of Soil Conservation Technologies

Grass Strips and Earth Bunds TerracingMulch

Units Qty. Unit Total Qty. Unit Total Qty. Unit TotalCost Cost Cost Cost Cost CostUS$ US$ Us$ US$ UsS Uss

ConstructionCostsSeed material kg 25 0.50 13 n/a n/a n/a n/a n/a n/aFertilizer kg 15 2.00 30 n/a n/a n/a n/a n/a n/aPesticides kg 15 2.00 30 n/a n/a n/a n/a rna n/aEarth moving hrs 0 25.00 0 15 25.00 275 20 25.00 500

Subtotal Inputs 73 275 500LaborLand Md 20 0.25 5 100 0.25 25 200 0.25 50

PreparationFertilizing Md 10 0.25 2.5 0 0.25 0 0 0.25 0Planting Md 10 0.25 2.5 n/a n/a n/a n/a n/a n/aMulching 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 550Expenscs .__ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _

- 99 -

Annex 7Page 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 alAffected Party Quo Grass Strips Earth Bunds Terraces

and MulchingUpland Farmers Fallow 411 0 0 0

Rice 172 77 55 33Maize 89 40 28 17

Cassava 23 14 10 6Sub-Total 695 131 93 56

Lowland Farmers Labor -8 1 1 2Crop Damage -56 7 l l 14

Sub-Total -64 8 12 16

Resevoir Users Hydopower 0 0 0 0Irrigation -1.3 0.1 0.2 0.2

Crop Flooding -0.6 0.1 0.1 0.1Sub-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. Abdurachman, A. and Suwardjo. 1985. Contour grass strips as a low costconservation practice. ASPAC Extension Bull. No. 2 21 .pp 1-7.

Bouveyron, Catherine. Personal communication from the Institute of Geography and NaturalResources, Hanoi. In: Report on World Bank mission in Viet Nam on environmentalissues from March 27 to April 24, 1993.

Boyce, Stephen, G. 1992. Models For Managers in Natural Resources. Textbook for FES-302.Models in Forestry and Environmental Management. Duke University. School of theEnvironment. Published by Stephen G. Boyce. Brevard, NC.

Clark, E. II, J. Haverkanp, and W. Chapman. 1985. Eroding Soils: The Off-Farm Impacts(Washington, D.C., The Conservation Foundation)

Crosson, P. 1986. "Soil Erosion and Policy Issues," in T. Phipps, P. Crosson, and K. Price, eds.,Agriculture and the Environment (Washington, D.C., Resources for the Future).

Cuc, Le Trong. 1990. Agroecosystems of the Midlands of Northern Viet Nam: A report on apreliminary human ecology field study of three districts in Vinh Phu Province. Eds: LeTrong Cuc, Kathleen Gillogly, and Terry Rambo. Occasional Paper No. 12.Environment and Policy Institute. East West Center. Honolulu, Hawaii.

Feder, G. Tongroj Onchan, Yongyuth Clamawong, and Chira Hongladaron. 1988. Land Policiesand Farm Productivity in Thailand. (World Bank Research Publication). Johns HopkinsUnivcrsity Press: Baltimorc.

Figueroa, J.F.L. and M.A. Garduno. 1981. Evaluacion de cinco tipos dc terrazas cn suclos dcladcra de la cuenca del rio Tczcoco.

Filipovic. 1968. Erosion of arabIc land in the upper Jasenica watershed and its influence onwinter wheat yield. Arh. Polypr. Nauke. 2?1(74) 16-17.

Humi. H. 1982. Soil Erosion in Huai Thung Choa - Northem Thailand: Concems and constraints.Mountain Research and Development. 2(2):141-151.

Kampen, J. 1979. Watershed management and technology transfer in the semi-arid tropics. In:Development and Transfer of Technology for Rainfed Agriculture and the SAT Farmer,Proc. of the Inaugural Symp. at ICRISAT. ICRISAT, Andra Pradesh, India. pp. 1 1-1 19.

Khan, A.D. 1962. Measurement of increase in productivity by adopting soil and waterconservation practices. J. Soil Water Consv. India. 10(1&2): 25-33.

Kumia, U and R. L. Watung. 1985. Pengaruh Pengolahan Tanah dan Mulsa Sisa TanamanTerhadap Produktivitas Tanah Latosol Kadipaten. Akalah Lokakarya Hasil PenelitianPengelolaan DAS san Dampak Pemanfaatan Sumber Alam Terhadap Lingkungan.Cisarua. Bogor 9-10 Maret 1985.

- 101 - Annex 7Page 10 of 11

Lal, R. 1987. Effects of soil erosion on crop productivity. In: CRC Critical Reviews in PlantScience. Vol 5, Issue 4. Pg. 303-367.

Lukito, H. 5. 1984. Pengaruh Jenis Tanaman Terhadap Erosi dan Limpasan Permukaan di DesaGubug Klakah, Kecarnantan Poncokusumo, Malang. Thesis Fakultas Pertanian.Universitas Brawajaya, Malang.

Marsh B. 1971. Immediate and long term effects of soil loss. Proc. Australian Soil ConservationConf.- 1971.

Marston, D., Anecksamphant and R. Chirasathawom. 1983. Soil Conservation and landdevelopment in Thailand. In: Soil Erosion and Conservation. Eds. S.A. El-Swaify, W.C.Moldenhauer and A. Lo. Soil Conservation. Society of America. Ankeny, Iowa. pp.634-641.

Murad, A. 1985. Penilaian Tindakan Pengawetan Tanah Dengan Tehnik Sipil Dalam Usahatanilahan Kerinjg di Jampang Tengah, Sukambui. Thesis Fakultas Kehutanan. InstitutPertanian Bogor.

Phong, A.T., et al. 1993. Bare Lands in Viet Nam (The existing situation and the improving andusing orientation up to the year 2000). Ministry of Agriculture and Food Industry and theNational Institute for Agricultural Planning and Projections. Hanoi.

Sembiring, H. and A.M. Fagi. 1989. Paket Usahatani dalarn Mengatasi Erosi di Das Brantas,Jawa Timur. P3HTA Malang.

Sheng, T.C., Jackson, J.K., Kraayenhagen, J., Nakasthin, N. and P. Watnaprateep. 1981. Thceffects of different structures on erosion and runoff. In: South East Asian RegionalSymposium in Problems of Soil Erosion and Sedimentation. pp. 301-310.

Sheng, T.C., Jackson, J.K., Kraayenhagen, J., Nakasthin, N. and P. Watnapratccp. 1981. Thceffects of different structures on erosion and runoff. In: South East Asian RegionalSymposium in Problems of Soil Erosion and Sedimentation. pp. 301-310.

Stevens, Jonathan and Peter Cook. 1993. The Service Level Approach to Measuring AssctPcrformance. In: Toward Improved Accounting for the Environment. Eds. Ernst Lutz.UNSTAT-World Bank. Washington, D.C. pp 246-266

Sub Proyek Bantuan Teknik UNDP Solo. 1979. Evaluasi Penelitian Erosi Pada Plot PcrcibaanProyek TA IN5/72/006. Kerjasama antara Sub Proyek Bantuan Teknik UNDP Solo/TAIN5/72/006. Surakarta dengan Fakultas Kehutanan UGM Yogyakarta. Surakarta.

Subagyono, K. 1988. Pengaruh Penanaman Berbagai tannaman Penututp Tanah Secara StripTerhadap Erosi dan Limpasan Pernukaan pada Mediteran Desa Jatikerta SumberpucungMaland. Thesis Fakultas Pertanian Universitas Brawijaya. Malang.

Sunardi, M. 1989. Penggunaan tanaman Strip untuk Pengendalian Erosi dan Limpasn Permukaanpada Tanaman Tumpangsari Jagung san Ubikayu tanpa teras. Thesis. Fakultas PertanianUniversitas Brawijaya. Malang.

- 102 - Annex 7

Page 11 of 11

Sutrisno. 1987. Pengaruh Pemberian Jerami dan Sifat-sifat Terhadap Erosi dan AliranPermukaan. Thesis Jerusan Tana Fkultas Pertanian. Institut Pertanian Bogor. Bogor.

Suwardjo and Sofijah Abujamin. 1983. Crop residue mulch for conserving soil in uplands ofIndonesia. 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 LimpasanPermukaan di Daerah Aliran Waduk Karangkates. Thesis. Fakultas Pertanian UniversitasBrawijaya. Maland. Table 4 page 14 of 16.

Team Konservasi Tanah dan Air. 1980d. Pengaruh Mulsa Sisa Tanaman san Pengelolaan TananTerhadap Erosi. Sifat-sifat Tanah dan Petembuhan Tanaman pada Tanah Latosol diCitayam dan pada Tanah Podsolik. Di Pekalongan dan laporan Progres. PenelititanKonservasi 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 danPada Latosol Darmaga yang Ditanami Padi Gogo Selama Satu Musim Tanam. TcsisJurusan Tanah Fakultas Pertanian. Institut Pertanian Bogor. Bogor.

Widajati. 1989. Kajian Pengaruh Sistem Pcnanaman dan Pemberian Mulsa Terhadap AliranPcrmukaan 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 VietNam. During the last years, this historical trend has been accelerated by direct human pressure on themangrove ecosystems and the impact of other development activities located in the coastal zone and itscatchment area. Mangrove trees are cut by local people collecting firewood and poles for both domesticand commercial use. Shrimp farm development has led to the conversion of thousands of hectares ofmangrove forests and some rice paddies to extensive shrimp culture. Agricultural activities affectmangrove ecosystems through their reclamation for agricultural production and other more indirecteffects, such as changes in the hydrological regime, pollution with agrochemicals and nutrients and wateracidification. Water resources development and other up-stream activities, including urban and industrialpollution, 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 rapiddestruction and degradation of mangrove ecosystems in Viet Nam. It illustrates in the forn of two casestudies 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 costsof mangrove destruction in each case, the results of the two case studies are extrapolated to the wholecoastal zone of Viet Nam in order to understand the orders of magnitude of the costs connected tomangrove 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 ofmangroves in coastal zone managemeht and indicate the value of mangrove forests of the very diverseproducts and services provided by mangrove forests.

3. Mangrove ecosystems have been destroyed and transformed in a rapid pace all over theworld. This process is driven by the belief that mangrove forests are foul, ill smelling, insect-ridden anddifficult zones and produce little economic value. However, the literature on mangrove managementsupports the hypothesis that mangrove ecosystems provide a variety of important products and servicesto humans. For instance, nutrient supply to coastal fisheries and the provision of spawning and feedinggrounds for immature fish and shrimp are attributed to mangroves. Shore protection, the prevention ofcoastal abrasion and the support of accretion are some other important functions that affect humansettlements and agriculture.

4. As figure 1 illustrates, most of the services and products connected to mangrove ecosystemsare off-site and/or non-marketed. The off-site character of very important mangrove services implies thatvery valuable benefits brought by investments into mangroves cannot be captured by the investor and areprovided for "free" to others. The absence of market prices makes the quantification and economicvaluation of the ummarketed products and services very difficult.

5. Although this analysis attempts to quantify and value some of the off-site and non-marketedgoods and services provided by mangrove forests, it is not possible to capture all the benefits brought bymangrove preservation. For this reason, the numbers given for the value of mangrove ecosystems haveto 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 farmenterprise 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 caughtpoles, charcoal, woodchips, mangrove crabs) in adjacent waters)

Seldom included (e.g., medicinal uses of Usually ignored (e.g., nutrient flows tomangroves, 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-WestCenter, 1984), fig. 42, p. 110.

B.Case Study I: The Impact of Uncontrolled Shrimp FarmDevelopment in Minh Hai Province

6. Mangrove areas are being transformed to shrimp pond culture all over Viet Nam. Thesituation in Minh Hai province, which accounts for some 50% of all mangroves in Viet Nam and is thearea most beset by acid sulphate soil problems, illustrates the destructive human pressure on mangrovesin Viet Nam. To determine the economic impact of this large-scale transformation of mangroveecosystems, 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 thecontribution of mangroves to coastal shore protection and fisheries; and (d) determines current land usepatterns and alternative scenario implications for Minh Hai province. It concludes that the uncontrolleddevelopment of extensive shrimp farming has not been beneficial to Minh Hai province resulting inforegone benefits of US$ 140 million (NPV 1984) over the last ten years, compared with an improvedextensive shrimp-mnangrove management model which would not only be more economic in the longerterm 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 hasbeen drastically reduced with only 45,000 ha of mangrove forest left in 1993. Should Minh Hai continuealong current trends, the province will incur further foregone benefits of US$ 249 million over the nextten years.

ShrimD Farming and Forestry Models

7. ShrimD Farming Models (models A-E). Three different types of shrimp farmingtechnologies are identified. While traditional extensive and semi-intensive management practices havelong been practiced in Viet Nam, extensive shrimp farmers have only recently started to intensify theirmanagement regimes to the improved extensive model which is the model advocated for futuredevelopment as it is both economically viable and preserves the mangrove ecosystem. Based upon fieldobservations in Minh Hai, the different technologies are briefly described as follows:

- 105 - Annex 8Page 3 of 31

- Extensive Models (Models A and B, see tables I and 2): Ponds, which would usually beeither 2-3 ha, or 10-20 ha are generally sited in coastal low-lying barren land close tomangroves with earthen dikes excavated from the swamp (no heavy earthworks) and somefelling of mangrove trees to improve water circulation. These ponds are filled with brackishwater at high tide, usually at the beginning of the dry season. Canal shrimps (and otherforms of fishery) enter the ponds with the water and are permitted to grow. No feed isapplied and harvest takes place about every two months. Average production is 150-200kg/ha/yr or about 30-60 kg/ha/crop. Yields deteriorate sharply within four years dependingon 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 arewashed by rain into the ponds as sulfuric acid. Furthermore, as mangrove forests insurrounding areas are cleared, the extensive system, in any case, becomes unsustainable asthe 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. Thesituation did not improve because of the poor viability of the purchased larvae comparedto collected wildstock and the increasing effects of pollution on the system These factorscannot be easily mitigated without further investment (improved pumping and drainage).Finally as greater acidification sets in, the system collapsed and farmners had to abandontheir ponds pursuing less remunerative activities. From the above, two extensive modelsare presented. The first, corresponding to low-input management, yields are low with 150kg of shrimp and 200 kg of fish per year in 4-7 crops , but pond construction and resourceconditions are favorable (model A). The second, approximately 30% of extensive shrimpfarming is not sustainable and abandoned after 4 years due to inappropriate pondconstruction (problems with water exchange) and water acidification caused by theexcavation of acid sulphate soils for dikes (model B). The shrimp cultured in the extensivemodel (P. merguensis) receives a low price on the market (US$ 1.50/kg). Farmerscomplement 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. Foroperation, stocking is done with purchased fries (P. monodon), feed is added, waterexchange is regulated by permanent pumping and water has to be treated. More and betterqualified personnel is.needed for pumping, quality control, feeding, predator control andmanagement. Due to its higher quality (larger size), shrimp is sold for a higher per kgprice in the market (US$ 3.00/kg) than in the extensive model. However, experience inViet 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, theoccurrence of acid sulphate soils and pollution problems.

- Improved Extensive Model (Model E, see table 5): This model is hardly practiced butrepresents a viable alternative to the present traditional extensive ("shifting aquaculture")model. It would focus on improving the present extensive system. The typical farmerswould have a 10-20 ha plot in barren lands or mangrove areas. Dikes may be relocated andbuilt in well-selected zones that take advantage of the natural topography. The farmerwould build a wooden gate and clear limited areas of mangrove for a channel to improvewater 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 in1988.

- 106 Annex 8

Page 4 of 31

drying and use of Rotenone, Saponine, Tea Seed Cake of Deris root extract, including finemesh to be placed in the gate grid for preventing predators entrance). Fry of highlycommercial species such as P. monodon would be introduced at a rate of 5,000 to 8,000larvae/ha complimentary with the natural seedlings from the local estuaries during thewatering operation. Fertilization with animal manure and or chemical fertilizers would alsobe 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 (freshprotein plus vitamins and minerals). Harvesting at the 110th to 130th day could give 250to 300 kg per crop of highly commercial shrimps of medium to large sizes. (With thepossibility of 2 crops/year, annual yields of 500-600 kg is feasible.) Although higher costthan the extensive model, this technology would have the advantage of a low investmentranging from US$ 500-600/ha (substantially lower than the semi-intensive models), lowinput, limited eutrophication, good returns, and it utilizes an approach which is recognizedand 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 withimprovements in the shrimp pond:forest (or reforested) area ratio. Presently mangrove forests areretained or replanted on 50 percent of the land with the remainder to be devoted to shrimp feeding. Theareas retained as mangrove forests need to be expanded through reforestation and should be exploited ina 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 (ifnecessary) 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 (naturalshrimp 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 2,000ha are presently being worked under this system in the Tam Giang Forest Enterprise. Total investmentsfor shrimp breeding amount to US$410-450/ha, average yields are 150-200 kg/ha/yr. This is notmodelled 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 formangrove forestry on a mean annual increment basis. The existing stands are cut every eight years withan 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 mangrovedeforestation is estimated to contribute 15 meters/year to coastal abrasion along the eastern coast of MinhHai province'. With a shore length of approximately 200 km, coastal erosion results in an annual lossof 300 ha of productive land. Since no land prices exist in Viet Nam, the value of lost land is estimatedat US$ 2,000 per hectare which corresponds closely to the Net Present Value of one hectare in thesustainable 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 8Page 5 of 31

mangrove conservation of US$ 600,000 during the period 1984-1993. Thereafter, preserving mangrovesis assumed to result in an annual benefit of US$ 150,000 due to the small size of the remainingmangroves.

10. Contribution to Local Fisheries. Minh Hai coastal fisheries are assumed to catch 60% ofthe natural aquatic biomass found in coastal waters around mangrove forests (300 kg fish and shellfishper hectare of mangrove forest). After mangrove destruction, natural productivity is assumed to declineby 60% leading to a loss in annual catches of 180 kg fish per hectare of cleared mangrove. With anaverage market price of US$ 1/kg for fish and shellfish, this results in an annual loss of US$ 180 perhectare mangrove destroyed. This estimate is in line with figures obtained for the value lost fromdefoliation of the Cau Mau Peninsula (derived from Hong) during the Second Indochina War (see Annex4 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 bymangrove wetlands in Minh Hai province is estimated to have been 218,500 ha (equivalent to 50% oftotal forest area). Since most reclamation operations of wetlands for agricultural production primarilyhas converted inland marshes (melaleuca forests) but not mangrove wetlands, the total mangrove wetlandarea can be assumed to have been 200,000 ha in 1985. For 1985, the year when shrimp farmdevelopment became significant for Minh Hai's development (i.e., it exceeded 20,000 ha), a baselinescenario for the situation of mangrove forests can be constructed, based on data published by FIPI andGDLM (1985). Assuming a ratio of mangrove to back mangrove forests (melaleuca) of 5:3, Minh Haihad 110,000 ha of mangrove forests, 10,000 ha of shrimp farming area and 80,000 ha of barren landsin 1985. The baseline scenario for changes in land use for the period 1985-1993 is developed usingnumbers provided by Southern FIPI and the Provincial Forestry and Fishery Services of Minh Hai for1988, 1992 and 1993.

12. For the years 1994-2003, current trends are assumed to continue until major abandonmentof extensive shrimp farming sets in due to pollution and management problems caused by the destructionof the supporting mangrove forests, acidification of ponds and over-crowding. During this period, anincreasing number of farmers experience declining yields resulting in low incomes and even losses beforethey drop out of business. Abandonment already sets in 1991, three years after the overall shrimpfarming area equalled the area covered by mangrove forests5e. Our extrapolation through 1999 indicatesthat abandonment will continuously increase leaving only 23,300 ha of shrimp farms which be matchedby 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 economicimpact of mangrove conversion two alternative scenarios for coastal zone management in Minh Hai aredeveloped in tables 8 and 9. Both development scenarios are based on integrated mangrove-shrimpculture (see model E) which requires a ratio of 80% mangrove area to 20% shrimp pond area to beenvironmentally sustainable. The first scenario (table 8) is based on the assumption that model E hadbeen practiced from 1984. It assesses the costs incurred under current trends by not adopting theappropriate model. The second scenario (table 9) assumes a drastic change in current trends by switchingto the appropriate integrated model in 1994. In this scenario, the area on which shrimp culture can bepracticed 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 fannermight continue to keep ducks in ponds.

- 108- Annex 8Page 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 ofboth the scenario based on the actual development as well as the scenario assuming rational mangroveutilization (i.e. adoption of the environmentally sustainable model E) are calculated (see tables 7.3, 8.2and 9.2). In addition to overall net benefits of each development model, net benefits attributable todifferent mangrove services and products (shore protection, support of local fisheries, wood and shrimpproduction) are given. Fish caught by shrimp farmners around their ponds which were included in theextensive shrimp farming models as other outputs (see para. 7 - extensive model) are consideredseparately (see columns on fisheries values in tables 7-9) to make this important mangrove service moreexplicit.

15. For the period 1984-1993 (see table 7.3), actual development resulted in net benefits of US$116 million (NPV in 1994 dollars). However, if Minh Hai had followed the alternative, more appropriatedevelopment path (see table 8.2) it could have generated net benefits of US$ 256 million (NPV in 1994dollars). The opportunity cost foregone would , therefore, have been US$ 140 million. For thefollowing period 1994-2003, continuing current trends (see table 7.3) are estimated to result in netbenefits of US$ 39 million (NPV in 1994 dollars) which are far outweighed by the US$ 288 million (NPVin 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 MinhHai province result from the difference in net benefits between the model based on current trends and thealternative 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 until2003 if the Minh Hai aquaculture sector does not take any drastic measures to switch to more sustainablemanagement for the coastal zone. The costs (or foregone benefits) of continuing along current trends areestimated 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 veryimportant 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 beltsalong sea dikes by providing rough estimates for some of the benefits of preserving mangroves: thesupply 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 amore conservative way than production plantations. For the purpose of this analysis, it is assumed thatmangroves are managed on a 30 year rotation cycle with initial high planting density and selectivethinning 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 steresat 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 providea habitat for surrounding fisheries, including species with a high economic value such as the mangrovecrab (Scylla). With increasing mangrove density, fish and shellfish output reaches 50kg a year from year10 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 savingsof 20% of annual repair costs, annual savings from preserving/ planting mangroves along sea dikesamount 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 inTable 10 Analysis reveals the important role of mangrove for sea dike protection which is complementedby the support of local fisheries and the production of wood. For 100 kmn of sea dikes corresponding to500 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-economicaluse of mangrove ecosystems. It extrapolates the costs of mangrove destruction found in above analysisfor uncontrolled shrimp farm development in Minh Hai province and for the absence of protectivemangrove belts along sea dikes in central Viet Nam. However, it is important to emphasize that theresults of this section should be interpreted on a rough order of magnitude basis, as this analysis onlycaptures a few causes (and consequences) of mangrove destruction and has had to rely on fieldextrapolations 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 existedin 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 Deltaand the North-East, shrimp farm development has led to the destruction of some 148,000 ha of mangroveforests in Viet Nam during the last decade. This implies a economic loss of US$ 277 million (NPV in1984 dollars) over the last ten years with Minh hai accounting for about US$ 140 million. Even if theloss is attributed to only half of the non-Mekong Delta mangrove areas because their problem soils aremuch 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 kmof sea dikes in central Viet Nam either possess protective mangrove belts or are suitable locations formangrove plantations'. If human pressure has removed or prevented mangroves at half of these seadikes, the costs incurred due to increased sea dike maintenance costs and the absence of wood supply andfish 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 costsamounting 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 kmof sea dikes exist and out of 454 km which need to be rehabilitated only 195 km are suitable for prolectivemangrove planuations.

Model A: Extensive Shrimp Farming (Sustainable) - Basic Data

Source: Serene, basic model 11

Basic data: Remarks:Land allocation for ponds (hectares): 4Investment Costs (per hectare): Total: $370

soil preparation: $70 low, small dikes (1 .5 m3/ m length); low pond water levelcanal construction: $250

gate: $20 wooden sluice gateequipment: $30 includes small boat and casting net

Operating Costs (per hectare): Total: . $169labor: $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: $30fries: $0 natural stockingfeed: $0

machine hire, fuel: $25 water exchange at 50% every 1 5 daysother 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: $0.20other: $1.00

Discount Rate: _ 10%

Investment Life:soil and canal works: 11 years _

Igates and equipment: 5/6 years ____

O ID Ww. 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: $370soil 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: _S30Xfries: 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: 280Canal construction: 1000

___ _____ _ Gate: 80Instruments: 120

OperatinG Costs:

Labor: 556 556 556 556Purchase 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 504wBalance 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: $1,249labor: $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 halmaintenance: $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: $100Output (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

OQ0

(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: $1,100gate: $200 sluice gates from brick or concrete

___________ equipment: $640 includes pump, housing, boats

Operating Costs (per bectare): Total: $1,249labor: $399

guard: guard is included into labor charges for feedingfeeding: $250 500 persondays @ $1.00/day (2 ha)

_harvesting: $24 2 harv. of 16 persondays @ $1.50/day (2 halmaintenance: $125 . 5% of investment

purchase charges: $750 .

fries: $400 20,000 fries/ha per liarvest @ $10/1,000 friesfeed: $250 5 kg trash fish/kg shrimp @ $50/ton 11 ton of shrimp)

pump repair, fuel, etc.: $50 water exchange at 5-10% per dayother 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, poorfish: 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 constantfish: $0.30

Discount Rate: 10%

Life Cycle: 4 years _

-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' * Ir0 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'. tD0 X Cw

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: $800soil preparation: $150

canal construction: $450 ..

gate: $100 2 wooden sluice gatesequipment: $100

Operating Costs (per hectarel: Total: -$412labor: $137

____________________________guard: 2 guards are included into labor charges for feeding

feeding: $50 500 persondays @ $ 1.00/dayharvesting: S7 2 harv. of 24 persondays @ $1.50/day (10 ha)

maintenance: $80 10% of investnmentpurchase clharges: $275

fries: $50 5.000 friesAia @ $10/1,000 friesfeed: $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: 550fish: 0

Outptit prices (per kg):sshrimp: $3.00 prices (in US$) are assumed to be constantfish: $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_b08

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

Cax0w 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 22tOpueating 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 450Sub-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 1500Wood 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 375Sililgotal: 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

coo n2Fh

.-

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 74.81989 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 59.31990 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 46.41991 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 31.41992 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 18.51993 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 7.01994 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 7.01995 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 7.01996 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 7.01998 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 7.02001 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 7.02002 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 7.02003 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 100,0002/ 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 m0H 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 1Mangrove: __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 __ Ishrimp farming: 20 GDLM 1985 4) all aquaculture is shrimp farning

Back mangrove wetlands: 110 l l

forested: 60 FIPI see 3)

barren: 50 GDLM 1985Reclaimed land: 127 see 2)

Mangrove wetlands 1988: total: 200forested: 60 Southern FIPIshrimp 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 lShrimp 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 Intensiveyear

1984 1,320 3,521 3,521 0 19,800 24,6411985 1,200 4,688 4,688 0 18,000 23,8881986 1,080 5,301 5,301 0 16,200 22,5811987 900 7,428 7,428 0 13,500 21,828

_1988 720 8,564 8,564 0 10,800 20,0841989 720 -220 -220 0 10,800 11,3001990 660 3,464 3,614 -150 9,900 14,0241991 660 2,085 2,120 -35 9,900 12,6451992 600 3,051 3,210 -160 9,000 12,6511993 540 2,522 2,621 -99 8,100 11,1621994 360 2,644 2,150 494 5,400 8,4041995 240 2,833 1,700 1,133 3,600 6,6731996 240 2,008 1,250 758 3,600 5,8481997 252 2,650 800 1,850 3,780 6,6821998 258 601 350 251 3,870 4,7291999 264 17 17 0 3,960 4,2412000 264 2,007 2,007 0 3,960 6,2312001 264 2,007 2,007 0 3,960 6,2312002 264 2,007 2,007 0 3,960 6,2312003 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 83,709 115,631NPV (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 woodsustainable: -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) $2001$370) ($370) investment cost 1989, 91: ($274) $0

year 2-5: $96 year 2: $86 lexpl.: In the first year, profits froin shrimp farmingyear 6, 1 7: $46 year 3: ($291 depends on the amount of wood cut and soldyear 7-1 1, 13- $96 year 4: ($74) during constru tionyear 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 cuttingI ($2,500) ($2,500) investment cost

year 2: $551 year 2: $1,751year 3-4: $2,351 year 3: $1,151year 5: $1,751 year 4: $251year 6: $911year 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 TtlAeWetlands 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 80.0 200.01985 200 100.0 20.01 10.0 80.0_ 200.01986 200 95.0 25.01 5.0 80.01 200.01987 200 95.0 25.01 0.0 80.0 200.01988 200 95.0 25.01 0.0 80.0 200.01989 200 95.0 25.01 0.0 80.0 200.01990 200 95.0 25.01 0.0 80.0 200.01991 200 95.0 25.01 0.0 80.0 200.01992 200 95.0 25.01 0.0 80.0 200.01993 200 95.0 25.0 0.0 80.0 200.01994 200 95.0 25.01 0.0 80.0 200.01995 200 95.0 25.01 0.0 80.0 - 200.01996 200 95.0 25.01 0.0 80.0 200.01997 200 95.0 25.01 0.0 80.0 200.01998 200 95.0 25.01 0.0 80.0 200.01999 200 95.0 25.01 0.0 80.0 200.02000 200 95.0 25.01 0.0 80.0 200.02001 200 95.0 25.01 0.0 80.0 200.02002 200 95.0 25.01 0.0 80.0 200.02003 200 95.0 25.01 0.0 80.0 200.0

Explanation: Shrimp farming development occurs at the same rate as in the baselinemodel, but it is stopped in 1986 at the sustainability limit (80% mangrove forest area to20% shrimp farming area). Thereafter mangrove forests are effectively protectedland shrimp farms are managed according to the improved extensive model.

-127- Annex 8Table 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 24,6001985 1,200 10,7601 600 18,000j 30,5601986 1,140 21,700 600 17,1001 40,5401987 1,140 28,700 600 17,1001 47,5401988 1,140 30,950 600 17,100 49,7901989 1,140 28,950 600 17,100 47,7901990 1,140 28,950 600 17,100 47,7901991 1,1401 29,950 600 17,100 48,7901992 1,140 30,950 600 17,100 49,7901993 1,140 30,950 600 17,100 49,7901994 1,140 30,950 600 17; 100 49,7901995 1,140 22,950 600 17,100 41,7901996 1,140 22,950 600 17,100 41,7901997 1,140 26,950 600 17,100 45,7901998 1,140 30,950 600 17,100 49,7901999 1,140 30,9501 600 17,100 49,7902000 1,140 28,9501 600 17,100 47,7902001 1,140 28,950 600 17,100 47,7902002 1,140 29,950 600 17,100 48,7902003 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 3,687 108,270 256,037NPV (94-03): 7,005 172,437 3,687 105,072 288,200

-128, Annex 8Table 9.3

Page 29 of 31Mangrove 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- $1,238vear 6, 17: $1,038year 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 9.2Page 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 5,3581995 540 8,668 150 8,100 17,4581996 540 13,618 150 8,100 22,4081997 540 13,618 150 8,100 22,4081998 540 13,618 150 8,100 22,4081999 540 11,418 150 8,100 20,2082000 540 13,618 150 8,100 22,4082001 540 13,618 150 8,100 22,4082002 540 13,618 150 8,100 22,4082003 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 9.1Page 27 of 31

Mangrove Wetlands in Minh Hai - Alternative Scenario 94

Mangrove Mangrove Area of Shrimp Farming Area of Total AreaWetlands 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 11 144 200.01995 200 45 11 0 144 200.01996 200 45 11 _ 144 200,01997 200 45 11 0 144 200.01998 200 45 11 0 144 200.01999 200 45 11 0 144 200.02000, 200 45 11 0 144 200.02001 200 45 11 0 144 200.02002 200 45 11 0 144 200.02003 200 45 11 0 144 200.0

- 131 - Annex 8

Table 8.3Page 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 costsvear 2: $788 _

.__________ year 3-5, 7-11, 13- $1,238year 6, 1 7: $1,038year 12: $438

Shore Erosion (value of lost land): lannual average: $600,000 _

Contribution to Fisheries (per hectare)lannual: $180

Discount Rate: 1 0 %

-132- Annex 8TableT9. 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 2Improved 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: $788year 3-5, 7-11, 13- $1,238 _

________ year 6, 17: $1,038year 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: $15planting: $20administration: $20

Operating Costs (per hectarel: maintenance/ guard: $20 first three years1st cutting: $31 y Year 92nd cutting: $60 year 22final cutting: $135 year 30

Output (stere per hectare): 1st cutting: 2nd cutting: final cutting:poles: 0 20 40 output levels are conservative estimatesfire wood: 20 50 100 I

Output prices (per store): wpoles: $10 prices (in US$) are assumed to be constantfire 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 wm2 _ 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 30Investment 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 0cutting: - 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 200Wood at USS 5/ste s50 o_ 125 _ 250Fish 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: _ ………_

09013

I-i

0 Dt-h -l

tox

- 135 -

ANNEX 9

Page 1 of 18

VIET NAM

ENVIRONMENTAL PROGRAM AND PROLICY PRIORITIESFOR 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 creaturesas well as to the economic, cultural and social development of the country, the nation andmankind as a whole.

In order to raise the effectiveness of state management and the responsibiities of theadministration at all levels, of state agencies, economic and social organizations, units of thePeople's Armed Forces and all individuals with respect to environmental protection with a viewto protecting the health of the people, ensuring the right of everyone to live in a healthyenvironment and serving the cause of sustainable development of the country, thus contributingto the protection of regional and global enviromnent;

Pursuant to Article 29 and Article 84 of the 1992 Constitution of the Socialist Republic ofVietnam;

This law provides for the protection of the envirorunent.

- 136 -

ANNEX 9Page 2 of 18

Chapter I

GENERAL PROVISIONS

Article 1

The enviromnent comprises closely inter-related natural factors and man-made materialfactors that surround human beings and affect life, production, the existence and developmentof man and nature.

Environmental protection as stipulated in this law includes activities aimed at preserving ahealthy, clean and beautiful environment, improving the environment, ensuring ecologicalbalance, 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, famedbeauty spots, historical vestiges and other physical forms.

2- Wastes mean substances discharged from daily life, production processes or otheractivities. 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, violatingenvironmental standards.

5- Environmental degradation means qualitative and qualitative alteration in the componentsof the environment, adversely affecting man's life and nature.

6- Environmental incidents mean events or mishaps occurring in the process of humanactivities, or abnormal changes of nature causing serious environmental degradation.Environmnental Incidents may be caused by:

- 137 -

ANNEX 9Page 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 ineconomic, scientific, technical, cultural, social, security or defence facilities, causing damageto the enviromnent;

c) Accidents in the prospection, exploration, exploitation or transportation of minerals oroil and gas, pit collapse, oil spouts and spills, pipeline breaks, shipwrecks, accidents at oilrefineries 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 basisfor the management of the environment.

8- Clean technology means a technological process or technical solution either causing noenvironmental pollution or generating pollutants at the lowest level.

9- Ecosystem means a system of groups of living organisms existing and developing togetherin a given environment, interacting with one another and with that environment.

10- Biodiversity means the abundance in gene pools, species and varieties of livingorganisms and ecosystems in nature.

11- Environmental impact assessment (E.I.A) means the process of analyzing, evaluating andforecasting 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 theenvironment.

Article 3

The State shall exercise unified management of environmental protection throughout thecountry, draw up plans for environmental protection, build up capabilities for environmentalprotection activities at the central and local levels.

The State shall adopt investment policies to encourage organizations and individuals at homeand abroad to invest under different forms in, and apply scientific and technological advancesto, 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 legalknowledge on environmental protection.

Organizations and individuals shall be liable for participating in the activities mentioned inthis 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 anddenounce any act in breach of the environmental protection legislation.

All foreign organizations and individuals operating on Vietnamese territory shall abide byVietnam's environmental protection legislation.

Article 7

Organizations and individuals making use of components of the environment for productionor business purposes shall, if necessary, contribute financially to environmental protection.

The Government shall regulate the circumstances, levels and modalities for the financialcontribution mentioned in this Article.

Any Organization or individual whose activities cause damage to the environment shall makecompensation therefor according to regulations by the law.

- 139 -

ANNEX 9Page 5 of 18

Article 8

The National Assembly, the People's Councils, the Vietnam Fatherland Front and itsmember organizations, within the scope of their tasks and powers, shall be responsible for thecontrol and supervision of the implementation of the environmental protection legislation.

The Govermnent and the People's Committees at all levels shall be responsible fororganizing the implementation of the environmental protection legislation.

Article 9

All acts causing environmental degradation, environmental pollution or environmentalincidents, are strictly prohibited.

Chapter n

PREVENTION AND COMBAT AGAINSTENVIRONMENTAL DEGRADATION

ENVIRONMENTAL POLLUTION ANDENVIRONMENTAL INCIDENTS

Article 10

The State offices, within the scope of their functions and tasks, shall be responsible fororganizing 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; foridentifying areas of environmental pollution and notifying the public thereof and for drawing upplans for the prevention and combat against environmental degradation, environmental pollutionand environmental incidents. Organizations and individuals shall have the responsibility toengage in the prevention and combat against environmental degradation, environmental pollutionand environmental incidents.

Article 11

The State encourages, and shall create favorable conditions for all organizations andindividuals in the rational use and exploitation of components of the environment, the applicationof advanced technology and clean technology, the exhaustive use of wastes, the economical useof raw materials and the utilization of renewable energy and biological products in scientificresearch, production and consumption.

- 140 -

ANNEX 9Page 6 of 18

Article 12

Organizations and individuals shall have the responsibility to protect all varieties andspecies of wild plants and animals, maintain biodiversity and protect forests, seas and allecosystems.

The exploitation of biological resources must observe their prescribed seasonalcharacteristics and areas, using proper methods and permitted tools and means in order to ensuretheir 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 theLaw on Forest Protection and Development. The State shall adopt plans to involve organizationsand individuals in afforestation and greening of waste lands and denuded hills and mountains toquickly 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 topermission by the sectoral management authority concerned and the State management agencyfor environmental protection and must be registered with the local People's Committees entrustedwith the administrative management of these conservation sites.

Article 14

The exploitation of agricultural land, forest land, and land for aquaculture must complywith land use plans, land improvement plans and ensure ecological balance. The use ofchemicals, chemical fertilizers, pesticides and other biological products must comply withstipulations by law.

In carrying out production and business activities or construction works, measures mustbe taken to restrict, prevent and combat soil erosion, land subsidence, landslide, soil salinationor sulphatation, uncontrolled desalination, laterisation and desertification of land, or itstransformation into swamps.

Article 15

Organizations and individuals must protect water sources, water supply and drainagesystems, 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 individualsmust implement measures for environmental sanitation and have appropriate waste treatmentequipment to ensure compliance with environmental standards and to prevent and combatenvironmental degradation, environmental pollution and environmental incidents.

The 'Govermment shall stipulate the nomenclature of environmental standards anddelegate the authority at different levels for promulgating and supervising the implementationof 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 operationprior to the promulgation of this law must submit an E.I.A. report on their respectiveestablishments for appraisal by the State management agency for environmental protection.

In case of failure to meet environmental standards, the organizations or individualsconcerned must take remedial measures within a given period of time as stipulated by the Statemanagement agency for environmental protection. Upon expiry of the stipulated time limit, ifthey still fail to meet the requirements of the State management agency for environmentalprotection, the latter shall report to the higher State authority at the next level to consider anddecide on the suspension of operation or other penalizing measures.

Article 18

Organizations, individuals when constructing, renovating production areas, populationcenters or economic, scientific, technical, health, cultural, social, security and defence facilities;owners of foreign investment or joint venture projects, and owners of other socio-economicdevelopment projects, must submit E.I.A reports, to the State management agency forenvironmental protection for appraisal.

The result of the appraisal of E.I.A reports shall constitute one of the bases for competentauthorities to approve the projects or authorize their implementation. The Government shallstipulate in detail the formats for the preparation and appraisal of E.I.A reports and shall issuespecific regulations with regard to special security and defence establishments mentioned inArticle 17 and in this article.

- 142 -

ANNEX 9

Page 8 of 18

The National Assembly shall consider and make decision on projects with majorenvironmental impacts. A schedule of such types of projects shall be determined by the StandingCommittee of the National Assembly.

Article 19

The importation and exportation of technologies, machinery, equipment, biological orchemical products, toxic substances, radioactive materials, various species of animals, plants,gene sources and microorganisms relating to the protection of the environment must be subjectto approval by the sectoral management agency concerned and the State management agency forenvironmental protection.

The Government shall stipulate a schedule for each domain and each category referredto in this Article.

Article 20

While searching, exploring, exploiting, transporting, processing, storing minerals andmineral products, including underground water, organizations and individuals must applyappropriate technology and implement environmental protection measures to ensure thatenvironmental standards are met.

Article 21

While searching, exploring, exploiting, transporting, processing, storing oil and gas,organizations and individuals must apply appropriate technology, implement environmentalprotection measures, develop preventive plans against oil leakage, oil spills, oil fires andexplosions and dispose necessary facilities to response timely to those incidents.

The use of toxic chemicals in the process of searching, exploration, exploitation, andprocessing of oil and gas must be guaranteed by technical certificates and be subject to thecontrol and supervision by the State management agency for environmental protection.

Article 22

Organizations, individuals operating means of water, air, road and rail transports mustobserve environmental standards and be subject to the supervision and periodic inspection forcompliance with environmental standards by the relevant sectoral management agency and theState management agency for environmental protection. The operation of transport means failingto 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 disposingof toxic substances, inflammable or explosive substances, must comply with regulations on safetyfor human and other living beings and must avoid causing environmental degradation, pollutionor incidents.

The Government shall stipulate a list of toxic, inflammable or explosive substancesmentioned in this Article.

Article 24

The siting, design, construction and operation of plants in the nuclear industry, of nuclearreactors, facilities for nuclear research, for the production, transportation, utilization and storageof radioactive materials, for the disposal of radioactive wastes must comply with legal provisionson nuclear safety and radiation safety and with regulations by the State management agency forenvironmental protection.

Article 25

Organizations, individuals making use of machinery, equipment, materials with harmfulelectro-magnetic radiation or ionizing radiation must comply with legal provisions on radiationsafety and must carry out regular check and environmental impact assessment of their facilitiesand 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 theirtransportation must comply with regulations by the State management agency for environmentalprotection and by the local authorities concerned.

Waste water, refuse containing toxic substances, pathogenetic agents, inflammable orexplosive substances, non-degradable wastes, must be properly treated before discharge. TheState management agency for environmental protection shall stipulate a schedule of waste waterand 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 orremains of the dead must utilize progressive methods and means and comply with provisions ofthe Law on Protection of Public Health to ensure environmental hygiene.

- 144 -

ANNEX 9Page 10 of 18

The Administration at all levels must plan for burial, cremation sites and guide peopleto gradually abandon backward practices.

Cemeteries, crematoria must be located far away from population areas and sources ofwater.

Article 28

Organizations, individuals in the course of their activities must not cause noises orvibrations that exceed permissible limits, harming the health of surrounding people and adverselyaffecting their life.

The People's Committees at all levels shall be responsible for the implementation of noisecontrol measures in areas of hospitals, schools, public offices, and residential quarters.

The Government shall promulgate regulations to restrict, and to proceed towards the strictprohibition 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 toenvironmental 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 surroundingenvironment;

3- Discharge of grease or oil, toxic chemicals, radioactive substances exceedingpermissible limits, wastes, dead animals or plants, harmful and infective bacteria and viruses intowater 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 theschedule 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 orharvesting animal and plant resources.

- 145 -

ANNEX 9Page 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 causeenvironmental degradation, environmental pollution, environmental incidents must implementremedial measures as specified by the local People's Committees and by the State managementagency for environmental protection, and shall be liable for damages according to regulationsby the law.

Article 31

Organizations, individuals allowing radioactivity, electro-magnetic radiation, ionizingradiation to exceed permissible limits must take immediate measures to control and remedy theconsequences, timely report to the relevant sectoral management agency and to the Statemanagement agency for environmental protection, as well as to the local People's Committeeto 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 localPeople's Committee, the nearest agency or Organization for timely action:

Organizations, individuals at the site of the environmental incident must take appropriatemeasures 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 9Page 12 of 18

Article 34

The chairman of the People's Committee of the locality where the environmental incidentoccurs is empowered to order an emergency mobilization of man power, materials and othermeans for remedial actions.

If the environmental incident occurs.in an area covering several localities, the Chairmenof 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 shalldetermine 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 shalldetermine the application of urgent remedial measures.

When such incident has been brought under control the Prime Minister shall determinethe revocation of the application of the urgent remedial measures.

Article 36

The agencies which are empowered to mobilize manpower, materials, and other meansto remedy environmental incidents must reimburse the mobilized organizations, individuals fortheir expenses according to regulations by the law.

Chapter IV

STATE MANAGEMENT OF ENVIRONMENTALPROTECTION

Article 37

The scope of State management of environmental protection includes:

1- Promulgating, and organizing the implementation of, statutory instruments onenvironmental protection; promulgating systems of environmental standards;

- 147 -

ANNEX 9Page 13 of 18

2- Developing, and guiding the implementation of, strategies and policies ofenvironmental protection, plans to prevent, control and remedy environmental degradation,environmental pollution, environmental incidents;

3- Establishing and managing environmental protection facilities, and facilities relatingto environmental protection;

4- Organizing, establishing and managing monitoring systems, periodically assessing thecurrent 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 protectionlegislation; settling disputes, appeals or complaints concerning environmental protection; dealingwith 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 andtechnological 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 Statemanagement of environmental protection throughout the country.

The Ministry of Science, Technology and Environment shall be responsible to theGovernment for exercising the function of State management of environmental protection.

All ministries, ministry-level agencies and other Government bodies shall, within thescope of their respective functions, powers and responsibilities, cooperate with the Ministry ofScience, Technology and Environment in carrying out environmental protection within theirsectors and in establishments under their direct supervision.

The People's Committees of provinces and cities directly under the Central Govermnentshall exercise their State management function for environmental protection at the local level.

- 148 -

ANNEX 9Page 14 of 18

The Services of Science, Technology and Environment shall be responsible to thePeople's Committees of provinces and cities directly under the Central Government, forenvironmental protection in their localities.

Artide 39

The system of organization, functions, responsibilities and powers of the Statemanagement agency for environmental protection shall be determined by the Government.

Artide 40

The State management agency for environmental protection shall carry out its functionof specialized inspection on environmental protection and be responsible to coordinate withspecialized inspectors of the ministries and sectors concerned in the protection of theenvironment.

The Organization, obligations, powers, activities and coordination of specializedinspectors 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 toquestions on matters necessary for inspection;

2- Conduct technical control measures on site;

3- Decide to temporarily suspend, in case of emergency, activities which threaten tocause serious environmental incidents and be responsible for such decision before the law, andat the same time, immediately report the case to the competent State agency for decision orrecommend the latter to suspend activities likely to cause environmental incidents.

4- Deal within their competence or recommend the competent State agency to deal withbreaches of the law.

Article 42

Organizations, individuals must create favorable conditions for the Inspection Team orthe Inspector to carry out their functions and must observe the decisions of the Inspection Teamor the Inspector.

- 149 -

ANNEX 9Page 15 of 18

Artide 43

Organizations, individuals are entitled to appeal to the Head of the agency which decidesthe inspections against the conclusions and decisions adopted by the Inspection Team or theInspector with regard to their establishments.

Organizations, individuals have the right to complain, denounce to the State managementagency for environmental protection or other competent State agencies about activities in breachof environmental protection legislation.

Agencies receiving complaints, denunciations shall be responsible for their examinationand resolution in accordance with regulations by the law.

Article 44

In case there are several organizations, individuals operating within an area whereenvironmental incidents, environmental pollution or environmental degradation occur, the powerto determine the responsibility assigned to those organizations, individuals for remedial measuresis defined as follows.

1- For environmental incidents, environmental pollution or environmental degradationoccurring within a province or a city directly under the Central Government, the responsibleparties shall be determined by the specialized environmental protection inspector of thatprovince, city, or proposed and reported by the latter to the Chairman of the People's Committeeof that province or city for consideration and decision. If one or more parties disagree with thatdecision, they shall be entitled to appeal to the Minister of Science, Technology andEnvironment. The decision of the Minister of Science, Technology and Environment shallprevail.

2- For environmental incidents, environmental pollution or environmental degradationoccurring in two or more provinces, or cities directly under the Central Government, theresponsible parties shall be determined by the specialized environmental protection inspector ofthe Ministry of Science, Technology and Environment or proposed and reported by the latter tot Minister of Science, Technology and Environment for consideration and decision. If one ormore 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 9Page 16 of 18

Chapter V

INTERNATIONAL RELATIONS WITH RESPECT TOENVIRONMENTAL PROTECTION

Article 45

The Government of Vietnam shall implement all international treaties and conventionsrelating to the environment which it has signed or participated in, honor all internationaltreaties and conventions on environmental protection on the basis of mutual respect for eachother's independence, sovereignty, territorial integrity and interests.

Article 46

The Government of Vietnam adopts priority policies toward countries, internationalorganizations, foreign organizations an individuals with respect to environmental manpowertraining, environmental scientific research, clean technology application, development andimplementation of projects for environmental improvement, control of environmentalincidents, environmental pollution, environmental degradation, and projects for wastestreatment, in Vietnam.

Article 47

Organizations, individuals and owners of transportation means which, in transitthrough the Vietnamese territory, carry potential sources of environmental incidents orenvironmental pollution must apply for permission, declare and submit to the control andsupervision by the State management agency for environmental protection of Vietnam. Anybreach of Vietnamese environmental protection legislation shall, depending on the extent ofthe infringement, be dealt with according to Vietnamese law.

Article 48

Any dispute concerning environmental protection on the Vietnamese territory in whichone or all parties are foreigners shall be settled according to Vietnamese law, taking intoaccount international laws and practices.

Any dispute between Vietnam and other countries in the field of environmentalprotection shall be settled on the basis of negotiation, taking into account international lawsand practices.

- 151 -

ANNEX 9Page 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 ofenvironmental incidents, environmental pollution, environmental degradation, in theprevention of acts, which damage the environment, shall be rewarded. Those who sufferdamage to their property, health or life, while participating in the protection of theenvironment, in the remedy of environmental incidents, environmental pollution,environmental degradation and in the combat against activities violating environmentalprotection legislation, shall be compensated according to regulations by the law.

Artide 50

Those who commit acts of destruction or cause damage to the environment, whodisregard the order of mobilization by the competent State agency upon the occurrence ofenvironmental incidents, who fail to implement regulations on environmental impactassessment, or infringe other legal provisions for environmental protection shall be dealt withadministratively or be criminally prosecuted, depending on the nature and extent of theinfringement and the consequences.

Article 51

Those who take advantage of their positions and powers to infringe environmentalprotection legislation, to protect persons infringing the environmental protection legislation,whose lack of responsibility allows environmental incidents or environmental pollution tooccur, shall be disciplined or be criminally prosecuted, depending on the nature and extent ofthe infringement and the consequences.

Article 52

Organizations, individuals that commit acts of violation against the environmentalprotection 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 forthe damages and costs of remedying the consequences, according to regulations by the law.

- 152 -

ANNEX 9Page 18 of 18

Chapter VII

IMPLEMENTATION PROVISIONS

Article 53

Domestic or foreign organizations, individuals that have caused serious damage to theenviromnent prior to the promulgation of this Law, with long-term adverse impacts on theenvironment and the health of the people shall, depending on the extent of the consequences, beliable for the damages and the rehabilitation of the enviromnent, according to regulations by theGovernment.

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 ofVietnam, 9th Legislature, at its 4th Session.

CHAIRMAN OF THE NATIONAL ASSEMBLY

Signed: Nong Duc Manh

- 153 - Annex 10Page I of 15

VIET NAM

ENVIRONMENTAL PROGRAM AND POLICY PRIORITIESFOR AN ECONOMY IN TRANSITION

Environment-Related Institutional and Regulatory System

Institutional Framework

1. The inter-relationship between management of environmental concerns and development ofa sound institutional framework is central to addressing the environmental issue. Development of a soundinstitutional framework is essential to effective environmental management. Environmental anddevelopment objectives have to be pursued within a strong institutional context, reflecting well-orchestrated policies, priorities and investment decisions, at a pace accommodative of growth. InVietnam, the impacts of economic and social policy have not always been conducive to soundenvironmental management. While there is general awareness of the need to adopt environmentally soundstrategies among policy makers and planners, such awareness is not adequately backed by supportiveinstitutions or enabling legislation for conducting reviews, impact assessments, interagency coordinationor monitoring. Environmentally sustainable principles have not been adequately incorporated into theoverall development process, and institutions have not been appropriately restructured to meet newchallenges.

2. Institutional framework at the National (Center), Provincial, District and local level reflectsthe predominance of the Communist Party within the legislative, the executive and the technicalMinistries/Departments of Government.

3. The constitution of Viet Nam states that the National Assembly is the highest legislativebody and the council of ministers is the highest executive body of the state. The constitution alsorecognizes 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 Councilof Ministers assumes it's responsibilities. The fifteen members of the Council of Ministers including theChairman are elected by the National Assembly from among the Assembly Members. The Chairman ofthe Council acts as the President of the country. The Council of Ministers supervises the activities ofthe provincial People's committees rescinding or amending the decisions of the Committees if the decisionis deemed to be detrimental to the interest of the people.

4. Below the Central government apparatus there are three levels of administration. The firstlevel is that of the provinces including the three cities of Hanoi, Haiphong and HCMC, and the specialzone of Vung Tau-Con Dao. The second level is that of the urban quarters and rural districts. The lastadministrative level is the urban blocks and rural communes.

5. At each level of the administration there are directly elected People's Councils which in turnappoint 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 governnentsrepresent an important power block within Viet Nam and they play a major role in formulating regionaldevelopment strategies.

6. The technical or line Ministries of Government are generally headed by a Minister and twoVice Ministers who direct the work of the Ministries and their departments. The Ministries are assignedfunctions by the Council of Ministers, which in turn is responsible to it, through the Minister. AllMinistries have staff at the provincial and district levels, being located in sub departments. These staffhave dual responsibility, and are accountable to their departmental superiors for technical work, and tothe People's Committee for administrative matters and implementation of the development plans. In mostcases, the Ministries also oversee the functioning of several institutes and research units, and are assignedfunctions through sectoral laws or Government decrees. At the provincial level, operating departmentsassist the Peoples Commnittee in carrying out administrative and operational functions. Enterprises andfactories under provincial authorities are managed through these authorities, through groupings calledUnions.

7. The State Committee for Sciences (SCS) was restructured in October 1992 to form theMinistry of Science, Technology and Enviromnent (MOSTE). The national Environmental ProtectionLaw (NLEP), approved by the National Assembly in December 1993, and the implementing regulationsto 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 ofenvironment assessment of the economy and of environmental action plans; implementing theenvironmental protection law and its implementing decree; codification of regulation and standards;evaluating environment impact assessments and coordination with the State Planning Committee and othersectoral Ministries. MOSTE's Department of Environment and Natural Resources, which became theNational Environment Agency (NEA) in 1994, has the responsibility of undertaking the publicadministration 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 inthe mandates of their Science and Technology Departments. Except for MOSTE, sectoral ministries havedirect technical links with the Provincial services for their respective sectors. Although the sectoralministries play an important role in establishing policies, programs guidelines for investment, they arenot directly in control of implementation at the field level, except for enterprises run by the CentralGovernment. Much of the implementation responsibility rests with the provinces, and districtgovernments.

9. The Ministry of Agriculture and Food Industries (MAFI) has yet to establish an exclusiveunit focusing on environmental issues. Instead, subject matter specialists organize special programs onlivestock management, tree cropping, pesticide usage, sericulture and reclamation of bare land, as aneffort not only for increasing income and productivity, but also conserving and protecting theenvironment. 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 thisprogram aim at stabilizing and restoring the ecological balance of fragile zones and "sedentarizing" ethnicminorities. MAFI shares responsibility for implementation with the Ministry of Forestry and the Ministryof Fisheries and Aquatic Resources.

- 155 - Annex 10

Page 3 of 15

10. Besides implementation of these special programs, the Ministry carries responsibility forpolicy matters, preparation of annual and 5 year plans, scientific research, transfer of technology andmarketing of products, through state run enterprises. Increasingly, state run enterprises are being handedover for private management in sectors of food processing, plant protection, fertilizer production andanimal feed. At the provincial and district level there has been a merger of the Department ofAgriculture and Forestry in many provinces with two-way control of its performance and activities. Onechannel of control is through the People's Committee (for day to day operations), and the other throughthe MAFI for technical monitoring and national project support.

11. The Ministry of Water Resources (MWR) has nationwide responsibility for management anddevelopment of Water Resources. At the national level the Ministry is structured into the Division ofManagement, Research and Training and Engineering. The Division of Management has ten Departmentslooking after planning, finance, construction, irrigation/drainage, flood control and dike management.The Division relating to research, training and engineering has several institutional enterprises under itssupervision. MWR deals mainly with the design and construction of irrigation projects, and is onlymarginally involved in the water supply sector. MWR has an advisory role assisting the Council ofMinisters in matters concerning conflicts of interests in the use of surface water resources, and it has tobe consulted in all matters related to the two main delta rivers, the Mekong and the Song Hong (RedRiver). 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 overallenvironmental policy in other relevant sectors (agriculture, forestry, industry, etc.).

12. The Institute of Water Resource Planning and Management bears responsibility forconducting environmental impact assessment studies, including issues of erosion, siltation salinity, waterquality and pollution standards. The existing institutional structure for handling environmental relatedissues is weak, and the process of Environmental impact assessment has just been introduced. The WaterLaw, for regulating water use has been drafted and is expected to be submitted to the National Assemblythis year.

13. The Ministry of Fisheries and Aquatic Products (MFAP) is separate from agriculture. Itsmain responsibilities include fish processing, import and export of fishes and overall control of fishingresources. The Ministry of Fisheries oversees a number of research institutes (primary being the researchinstitutes of Aquaculture, the hatcheries training centers), and state enterprises (aquaculture farms, feedprocessing mills and fish meal plants). An important aspect of fisheries development in Vietnam is itsintricate link with mangrove areas and wetlands, which are ideal for shrimp breeding. As clearing ofmangroves and wetlands are found lucrative for shrimp cultivation, large-scale encroachments areoccurring 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 madeto combine mangrove protection with shrimp production and maintain a balance between forest and watercores.

14. Prior permission of the Ministry of Science Technology and Environment is not taken fordegradative aquaculture and forest exploitation. Neither are impact assessment studies conducted. Thereare no environmental units to assess impacts or take mitigatory measures. Pollution control at the portsand fishing centers is the responsibility of the inspection teams of the Fisheries Ministry itself. TheBanking 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 FisheryCompany 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 within9 provinces. It has joint venture trading companies with district governments, and shrimp agriculturejoint ventures with local cooperatives, provincial governments and foreign firms.

15. At the provincial level, the Fisheries Department operates enterprises in 27 provinces, tosell goods and services to fishermen. These firms can export and import independently and many possesslarge 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 maysometimes 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 betweenprovincial 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 forestecosystems, including wildlife and endangered plant species. It comprises of 10 Departments and 100staff officers with functions of Planning, Finance, Research, Forest Management and Protection,Sericulture, Silviculture, Forestry Industry, Resettlement and inspection. The Department of ForestManagement and Protection and the Department of Human Settlement Fixed cultivation have staff at theprovincial, district level located in sub-departments. These staff are accountable to their departmentsuperiors for their technical work and from them they receive technical guidance, information andsupport. Their answerability to the People's Committee on administrative and general issues is alsointegral to decision making and implementation. The Ministry also oversees the functioning of nineresearch and scientific institutes, the major ones being the Forest Inventory and Planning Institute, theForest Science Institute and the Forestry Colleges.

18. The management of 75 central state enterprises also rests directly with the ministry covering1 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 forestedarea within their jurisdiction. There is a strong move to divest the enterprises of their non-commercialresponsibilities, by entrusting the schools, and health clinics to the concerned line Ministries, and toensure 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 carryingout state administrative duties and conducting production operations. There are about 300 enterprises andfactories under provincial authorities, which are grouped into union, with 30 enterprises to a union. Inthe mountainous and heavily forested provinces, districts have forest offices of 10 to 15 staff assistingthe District Peoples Committee in forestry matters. In districts with limited forest cover, forestry staffare fewer in number and attached to the Economic branch of the Peoples District Committee. The forestcadres extend up to the village and commune levels for organizing activities of forest protection, woodproduction and reforestation, through brigades.

20. The sedentarization programs for the minority population in the mountainous regions areconducted by the Department of Resettlement, under the direction of a Board of Management. TheDepartment 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 ofreallocation and resettlement of manpower. The Ministry has until now resettled/rehabilitated 4.95million people. Around 6-7 % of the population are reportedly unemployed. Consequently, Governmentof Vietnam promulgated Decree 116, under which surplus labor force will be deployed on unutilizedland. A number of institutes along with the Ministry are engaged in a planning exercise, for delineatingland use patterns for unutilized land against unemployed human resource. To date, 130 projects havebeen identified under this program.

22. The Ministry of Construction (MOC) plays a leading role and is often the implementingagency 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 ofrevising their norms of construction, to which environmental norms must be associated. Its NationalInstitute for Urban and Industrial Projects (NIUIP) is in the process of being restructured andstrengthened so as to play a major role in the implementation of the NPESD in the areas of pollutionprevention. MOC expects NIUIP to become the enforcement authority to stop operations where strongcontrols are needed to deal with pollution problems.

23. The health sector is organized as a pyramid of preventative and curative networks under theMinistry of Health (MOH). Prevention is mainly the responsibility of the hygiene and epidemiologicalsystems, while treatment and some aspects of prevention and promotion are the responsibilities of themedico-health system. The tasks of the Ministry related to water supply and sanitation are healtheducation, promotion of appropriate water supply and sanitation practices, implementation of sanitationprograms in rural areas and water quality monitoring. MOH currently has about 300 staff. The Ministryis also in charge of four research institutes: the Institutes of Hygiene and Epidemiology in Hanoi, NhaTrang, and Trai Nguyen, and the Institute of Hygiene and Public Health in HCMC. MOH has provincialunits 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 developmentof 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 thewater supply and basic facilities through application of improved technologies and provisionof essential construction material).

(b) Family planning, where MOH has a key role in that it manages all of the funds intendedfor birth control activities in the provinces.

25. The main functions of the General Department of Mines and Geologv (GDMG) are: (a) thecollection 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 usegroundwater by major projects. GDMG has provincial units which take primary responsibility for localtasks.

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. Seventypercent are graduates from abroad. In 1992 one-third of the resources of the Institute were provided forby 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 environmentalissues:

(a) Department 12, which is concerned with thermal power stations (emissions measurementand 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, waterquality, soil and erosion effects. in relation with PDC1 and PDC2.

(c) Department T16, which is concerned with new energy sources (research on clean energieslike solar energy, wind, biomass, to improve efficiency of households and superviseintroduction of improved cooking stoves), undertakes propaganda campaigns againstdeforestation.

(d) Department P6, which is concerned with environmental policies. They collect informationon standards and want to expand their capacity in environmental collection and monitoringand in training.

27. The Ministry of Heavy Industry (MOHI) is vested with the function of state managementof the branches of mechanical engineering, metallurgy, electronics, mining, geology and chemicalindustry. 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 financiallyautonomous. The Ministry of Light Industry (MOLI) has state management for the remainingmanufacturing 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 frameworkof the NLEP. It regularizes the structure of administrative responsibility for environmental managementat 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 ofScience, Technology and Environment (DOSTEs) in parallel with that of MOSTE at the State level. Theyare 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 fieldimportant to local development efforts. However, there are some implementation concerns in those largecities which had already organized their own Environment Committees (ECs). The ECs had no legalpowers, but they were typically chaired by the Vice-Chairman of the People's Committee and reporteddirectly 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 provincialdepartment, facing new bureaucratic approval procedures to its decision-making proposals. Of the fourcities which previously had ECs, only Ho Chi Minh City preserves the structure, which is now chairedformally by the Director of DOSTE. It remains to be seen whether new informal structures forcoordination 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 increasedothers. The decree represents a clear expression of government policy and introduces some significantchanges in administrative requirement. While there may be a need to gain some experience with the newsystem before changing it again, there should be an opportunity for various affected parties, stakeholdersand 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 impactassessment (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 "permissiblelimits" 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 hazardouswastes under implementing regulations for which further clarification will be needed; and (c) allocationof pollution control responsibilities between the central state environment agency (the NEA) and theprovincial DOSTEs or ECs, but are unclear with regard to allocations between NEA and the other centralAgencies/Ministries.

32. The absence of adequate national standards limiting industrial emissions is currently beingaddressed by the exhaustive review of many international pollution standards for both ambient air andwater quality as well as emissions of selected pollutants. Standards will include technical guidelines forsampling, measurement and analysis of air and water quality. Existing standards will be updated andISO/WHO standards adapted for Viet Nam. The first set of new standards were expected to be readyby January 1993, and others by June 1995. Also important is the question of the allocation ofresponsibilities for which agency to monitor and enforce the implementation of these standards. This isstill unclear. Furthermore, unless it is easy to show that standards are not being met, and there are strongpenalties for not meeting them, they are unlikely to have any effect.

33. At the provincial level, Hanoi has had environmental regulations since 1991; HCMC'sEnvironmental Committee has drafted environmental regulations and the Ministry of Environment ofSingapore to assist in developing moie effective local environmental standards and a local environmentalreview process. At least three other local DOSTEs (Dong Nai, Tay Ninh and Vung Tau) havepromulgated local environmental regulations and standards. Hanoi's regulations, which were issued in1991: (a) set ambient standards for 95 air pollutants, 177 liquid pollutants and work place standards for140 air pollutants, 15 particulates, and noise; (b) require approval of investment applications through thelocal DOSTE or Environment Committee; and (c) establish detailed environmental inspectionrequirements. Under the regulation, a Board of Inspectors under the DOSTE must carry out semi-annualair quality inspections of plants producing fertilizers, toxins, batteries and other electrical products, activechemicals and pesticides; annual inspections of all other enterprises; and spot checks of previous violatorsof air and water quality standards. Positive aspects of HCMC's standards include: (a) the manageablysmall number of parameters covered; (b) their distinction between new and existing facilities, with morestringent limits for new facilities; and (c) their classifications of water bodies by use, with more stringentlimits for waters used for drinking and domestic purposes, than for other surface waters. Localregulations 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 andsetting 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 hasformal authority to comment on enviromnental aspects of investment applications. In practice, NEA (onbehalf of MOSTE) currently provides comments on environmental aspects of some of the largerinvestment proposals in the industrial and energy sectors, but lacks capacity to carry out systematic andin-depth environmental review of these investment applications.

35. During the preparation of the National Plan for Environment and Sustainable Developmentwhich predated the establishment of MOSTE n October 1992, the Ministry of Construction (MOC) tookthe lead on urban and industrial pollution issues. MOC offered broad proposals for the development ofurban and industrial pollution control activities and regulatory capacity but these proposals emphasizedurban planning and waste management infrastructure over industrial pollution control. MOSTE (throughthe NEA), under NLEP, now officially takes over the responsibilities for the planning and review ofurban 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 toreview and comment on environmental aspects of investment applications and to resolve pollution relateddisputes on behalf of the Peoples Committees. However, they generally lack trained staff, knowledgeof clean technology and financial resources.

37. Fledgling environmental agencies in developing countries are typically small in size andunderfunded, and may become repositories for personnel with unfavorable career prospects in otherdepartments. Yet environmental agencies are ordinarily expected to provide a broad monitoring andenforcement responsibilities at the local level. MOSTEs and DOSTEs are expanding their staff (theNEA, for example, has three times the staff it had two years ago as the Department of Natural Resourcesand Environment). But without careful planning and training, MOSTE and the DOSTEs will experiencea growing gap between limited existing institutional capacity and expectations of immediate and visibleimprovements in environmental quality. The result could well be that their credibility and effectivenesswill be impaired. The Japanese experience is instructive here. The Japan environment Agency was ableto avoid the gap between capacity and expectations, because technical expertise in environment relateddisciplines was readily available at the time the Environment Agency was established, and highly qualifiedtechnical personnel were seconded from line and local agencies to the local Environment ProtectionBureaus and the national environment agency.

38. Any discussion of the issues of central versus local powers on environmental managementhas 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 Stateintervention (e.g. large-scale development programs such as the Mekong River system). Withoutadequate local staff able to respond to environmental management problems, complaints are now goingdirectly to members of the National Assembly and on to the Office of Government and to MOSTE. ButMOSTE itself does not have the time or staff to respond to all local issues. Therefore the most usefulprinciple seemed to be to enhance the capacity of local governments so they could handle as many ofthese issues as their capacity to respond to them grows. Local agencies have requested technicalguidelines and clearer implementation procedures from MOSTE for such matters as EA, industrialpollution audits, monitoring procedures, etc. The process of gradual development of local authoritywould be enhanced by continuing consultation and coordination between MOSTE and the provinces.

- 161 - Annex 10Page 9 of 15

39. The lack of information about new environmental sector guidelines and responsibilities wasperceived to be a problem constraining effective responses to issues in this sector. There appear to befew 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 equipmentand an uncertain future in light of recent trends in the industrial sector), (ii) the employment concernsof the municipal government, and (iii) the lack of incremental resources for pollution control, many plantsthat are in violation of environmental standards can do little more than make small improvements inhousekeeping; 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 ofpollutants and industries that are within its monitoring and enforcement capacity. One way to do this isto 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, andchromium for water), leaving regulation of environmental quality parameters that are less closely linkedto 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 regulatorystrategy (including realistic standards, regulations, incentives, research and development, monitoring andenforcement) around those parameters, is that the environmental agency has a better chance of achievingearly successes, and thereby strengthening its credibility. Then, it will be better prepared to addressfuture 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 thiscampaign 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/CPincludes definition of broad provisional guidelines and allocation of responsibilities between local andState (central) authorities, and between MOSTE and the central line agencies. The guidelines ensure thatthe agencies cannot review their own EAs, and formalize the EA review committee procedure (throughEvaluation Councils) which includes experts from State agencies, provincial government and local publicorganizations as appropriate. The broad representation of membership on EA review committees (whichare 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 establishedplanning procedures. Also there are specific time requirements for the review of the environment impactassessment reports, including the review of challenges to the EA decision. Overall, proposals forenvironment impact assessments are sound; and SPC and SCCI have indicated their endorsement of theformal EA review procedures for all investment projects. Now it remains to be seen whether projectreview procedures can capture an assessment of potential environmental concerns at an early stage toenable 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'. Althoughan Evaluation Council may be established to evaluate project environmental impact, publicparticipation in this Council is optional. Today, most countries' EA statutes expressly provide aright 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 procedurelaw). In addition, international lending agencies like the World Bank will not finance projectswhich require an environmental assessment unless there has been adequate public participation.Thus, the regulation should be supplemented by MOSTE instructions which establishes a clearright for the public and other interested and involved entities (physical and legal) to issue writtencomments on projects. There should also be a right to a public hearing to discuss the projectbefore the EA is prepared, and then to comment on a draft before the EA is final, including theright to question the experts who prepared the EA.

Second, no mention is made concerning the funding of EAs, especially for government ownedprojects. Similarly, it is not clear how governmental review costs (e.g., evaluation council) wouldbe covered.

Third, the jurisdiction of evaluation responsibilities is unclear (particularly MOSTE vis-a-viscentral implementing Ministries) as are the conditions which require an Evaluation Council to becreated (Article 14) and the meaning of "accountability of DOSTEs" (Article 6).

Fourth, jurisdictional responsibilities among the "state agencies in charge of environmentalprotection" (Article 15, 1) are still unclear. In particular, who would be in charge of enforcingthe EA evaluation decisions (Article 20)?

The above gaps may well need to be remedied by SPC MOSTE perhaps in the form of MinisterialInstructions for Environmental Impact Assessment.

45. Furthermore, the Ministries within the Natural Resources Sector have no separate units forconducting environmental impact assessments. While granting that much of this work could besubcontracted to various professional institutes or private consultants, a nucleus would still be necessarywithin the sectoral Ministries, to prepare the TORs, provide relevant information for facilitatingassessments and oversee the preparation of assessments.

46. To date the EA process has been used mainly to assess pollution impacts of some industrialprojects, and projects pertaining to offshore oil drilling and hydro power. EA's have not usually beenused to assess conversion of land to agricultural use, soil erosion, catchment area treatment, or theimpacts of deforestation and sedentarization. A number of priority projects are in the immediate agendaof the Government such as under Decree 327, Decree 72, sedentarization of minority groups, etc, whichmay cumulatively have significant impacts on the environment. It will be necessary to carry outassessments of cumulative impacts of such programs.

I At the local level, Hanoi, and Ho Chi Minh City's regulations require local DOSTEs orEnvironment Committees to investigate pollution complaints brought by affected people. There is noprovision, 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 naturalresources sector, if done at an early stage. Initial action is to deternine the degree of environmentalimpact and levels of compliance with environmental laws and regulations. Based on this early evaluationof environmental effects, subsequent action could be categorized. A program, project or an action whichdoes 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 anenvironment impact statement2. Since provincial and district governments are primarily responsible foragriculture, forestry, and other natural resource projects, attention should be paid to strengthening theircapacities to do EAs. Some arrangements used in other East Asian countries might be useful forconsideration in Viet Nam.

48. In China, environmental considerations are integrated into projects and developmentplanning through the process known as "three simultaneous steps." This involves incorporation ofenvironmental safeguards into design, construction and operation of facilities and through the requirementof environmental impact assessments (EA's) on new renovation and expansion projects. As noticeablyEA's were often performed too late in the project cycle to influence approval of locations, designs, orother 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 needfor environmental impact assessments to be done for most development projects, and all projects receivingexternal financing. The enterprise or agency responsible for the project, commissions the EA and theNational Environmental Protection Agency (NEPA). NEPA or its provincial arm must approve for theproject to proceed. Most assessments are carried out by research institutes, universities or other technicalagencies. The EA process has been used so far to assess the pollution impacts of industrial projects andit is only in the past two years that it has been used for agricultural projects. The EA's completed so fartypically cover pollution from agro-processing plants and agricultural chemicals, implications of largescale 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 inMarch 1986, and the second is the Management procedure for environmental protection of constructionprojects issued in June 1990. NEPA has overall legal responsibility for implementation of EArequirements at the national level in China. However, as most development activity occurs at the regionallevel, 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 innature; (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 submitenvironmental impact assessment report when applying for investment license". This list includes:consultant offices; offices; banks; financial offices; communications and related services; education andtraining; publication distribution agencies; schools; hotels of less than 50 rooms; trade centers an supermarkets; 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 ofconstruction materials with small capacity (bricks: less than 2 million per year quarried stones: less than100,000 tons per year); spinning/weaving (excluding dyeing, bleaching or design printing); commoditymaking (making shoes, office tools); wooden production (excluding wood processing); eating and drinkingservices; temporary living area of less than 500 families; and water supply in district towns. Theimplication is that all other projects (irrespective of their size) would need to submit environment impactassessment 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 municipalgovernments and in practice operate relatively independently of NEPA.

50. In Korea, environmental impact assessment is utilized as an important mechanism forpreventing possible environmental disruption, as caused by development projects. Environment impactassessment was first introduced to Korea in 1981, but its effectiveness was limited as govermmentministries and large agencies undertaking major projects, such as multi-purpose dams, large housingprojects, highways, industrial complexes were able to influence government decision making processesand dilute the magnum of the environmental impact. In 1986, the Environmental Preservation Act wasamended to expand the application of the EA process to non-governmental projects. A furtherimprovement has been introduced through the Basic Environmental Policy Act which broughtEnvironmental Impact Statements (EISs) to public notice and even public hearings in some cases. TheEnvironmental Administration which was elevated to the status of a full ministry with necessary powersis now in a position to request other agencies to take remedial measures, or even stop construction ofprojects violating the EIS.

51. In Thailand, the National Environmental Quality Act, as amended in 1978, requires stateenterprises or private organizations to submit a report on the measures for prevention and remedy ofadverse environmental effects to the office of the National Environmental Board for consideration andapproval of the project. The ONEB has authority and responsibility to review environmental impactassessment reports, for approval, before development projects can be implemented. The initialnotification 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 powerplants, industrial estates, ports and harbors, etc. Registration of EA experts and consultants have beenmade obligatory through a ministerial decree in 1984 and EA's submitted to ONEB have to be preparedby registered parties. The functional organizations involved in the EA process in Thailand are (a) theproject proponent which will be implementing the project is responsible for preparing the EAreport;(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 byONEB, but which is extendable in case further information/data is required for consideration of theenvironmental 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 andreview of EA's. The participation of the public has to be encouraged, and they should be present atimportant scoping meetings, public hearings etc., to provide information concerning project objectivesassociated with proposed development. In Vietnam the presence of strong quasi-political bodies (suchas the peoples committee, which also functions as the local government bureaucracy) inhibits spontaneousparticipation of non-governmental groups, or even by the general public. There are no "true" NGOs inViet Nam - defined as those organizations which do not receive grant funding from GOV. Typically thelikes of NGO's are youth associations and Professional groups sponsored either by the political party orby Government. Recently there is a trend for formation of group organizations, many of them handlingsocial and environmental themes with nominal Government funds but are beginning to provideindependent views on key issues. A premier non government organization is the Vietnam Resources andEnvironment Association, which concerns itself with ecological problems within fragile ecozones of theuplands 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 anenvironmentally aware consulting agency.

53. Another organization which has a country wide network is the Youth Organization havinga membership of 21 million youth: A very large cadre among these members participate in social andenvironmental programs on a voluntary basis, spreading from the provincial to the local level, and within27 Departments of the Central Government. The association is involved in multifarious programs withinthe 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 furtheranceof their activities in special programs like the greening of the bare hills (under Decree 327), riceproduction, processing of agricultural products, fisheries development, and fruit cropping. These groupsare spread across central to sub-provincial levels and are engaged in training programs, transfer oftechnology and disbursement of credit.

55. A strong public education, mass media program has been launched by several organizationsto encourage environmentally conscious and law abiding behaviors among adults and children. Thiseffort could be further strengthened through additional funding and scientific research. While a numberof Universities and Institutes of higher learning in Vietnam are actively pursuing scientific research inenvironmental 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 publishedin Vietnam.

56. Government policy on resettlement of populations displaced by development projects areimplemented by sectoral Ministries responsible for the implementation of the project. Resettlement isdone on the basis of resettlement programs prepared after obtaining the options of the local people. Itis not clear whether Vietnam has specific Resettlement Acts guaranteeing entitlement to the displacedpersons, 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: enablinglegislation has been passed; MOSTE has introduced provisional EA guidelines and is close to a set ofpollution 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, andEnvironment. More than 800 EAs have been completed, and a functioning EA review process is inplace. There is good reason to be proud of these accomplishments and optimistic about the future, withdonor 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 developmentfor environmental action.

58. The Direction of Institutional Change. Investment in and technical assistance to theenvironment 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 NationalWorkshop 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 toenvironmental management are new. There is limited experience with these issues and, besides, differentgovernment units sometimes have different views on how they ought to operate. Such differences ofopinion should be expected in a time of rapid transition. But in order to avoid conflicts which reduceeffectiveness and coordination, institutional changes should be introduced in consultation between the keytechnical and implementing agencies, in a process which is transparent (participants can understand whatis happening), accountable (participants know who is responsible) and responsive (problems areunderstood and responded to). This procedure will help to rapidly build the confidence of participantsas their technical knowledge and capacity to act also increase.

59. Appropriate institutional capacity is one of the factors most important to the success ofenvironmental management and protection. Clearly defined tasks, suitable authority levels, and flexiblecoordination of different agencies are all important aspects of developing new environmental managementinstitutions. To this end, MOSTE should play a crucial role in environmental management at the Statelevel, but this requires recognition that most implementation of environmental regulations and planningwill be done through other agencies. This will require consensus between agencies on goals, proceduresand structures for action.

60. In the introduction of new methods and techniques, new terminology will be required. Useof standard international definitions for terms would reduce confusion to Vietnamese agencies justlearning these terms and to foreign investors trying to understand Vietnamese requirements. An exampleis the frequent use of the term "EIA" to refer to industrial pollution audits (which are not intended to beenvironmental assessments, but only audits of emissions and technologies used). When adoptingprocedures which are derived from international practice, it is advisable to preserve internationalterminology and meaning closely to avoid confusion and to more rapidly train Vietnamese technicalspecialists (who then do not have to un-learn mistakes).

61. The Need for Monitorina and Adaptive Responses for Environmental Investments. Thereis urgency with respect to a number of the environmental issues facing Viet Nam, such as mangrovedegradation, barren lands, and increasing urban pollution. This means that investment projects for theseissues could proceed relatively rapidly. This is good, but it also means that these environmental projectswill be implemented with incomplete knowledge. We believe that environmental, social, and institutionaluncertainties in these investment projects should generally not be a problem, if and only if theGovernment of Viet Nam and its partners recognize these uncertainties and incomplete knowledge andform 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 theproject itself to detect unexpected project results, both positive and negative. Second, projects shouldbe designed to adapt to the results of this monitoring, as well as to changing social and economicconditions. This will demand flexible project delivery mechanisms which can make use of newknowledge and information gained from monitoring project results. This feedback from projectimplementation to monitoring to project re-design will be particularly critical to the long term success ofenvironmental investment projects in Viet Nam.

62. Environmental Program Deliverv: The Need for Integration and Coordination. The deliverymechanism 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 selectedprovincial departments and services at priority sites. For urban and industrial problems, which are stillconcentrated in a relatively small number of locations, implementing action will be the responsibility oflocal 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 ofthese 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 relativelyfew institutions need to be involved. Environmental management and protection requires the involvementof a great many disciplines and therefore, the involvement of many institutions. Therefore, the need forintegration and coordination of efforts can not be overemphasized. The fact that line agency institutionsare generally not suited at the present time for this integration and coordination function means that theresponsibility for integration and coordination will likely fall to management and planning institutions,such as SPC, provincial/municipal Planning Departments, MOSTE, and DOSTE. Appropriate technicalassistance in project integraiion and coordination will likely be required.

64. Environmental Training of National Management Institutions. The role of nationalmanagement institutions is vital to the successful implementation of any formal action plan. Theseinstitutions, such as the SPC, are currently best positioned institutionally to provide integration andcoordination, and are the institutions with which the intemational aid agencies will be working for theforeseeable future. All parties would therefore benefit from technical assistance to these nationalmanagement 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 planthat is produced, so that Viet Nam can become more proactive in ongoing development, management,and review of its environmental project portfolio.