Science and Technology Policy for Sustainable Development in Vietnam

Dr. Le Dinh Tien,Vice-minister of Science and Technology of Vietnam

Presentation at1st Asian Science and Technology Forum

Tokyo August 9th, 2005

Outline of Presentation

1. Development context, achievements and challenges since 1990s

2. Government policy concerning sustainable development (SD)

3. S&T Policy for SD• 3.1. Decision-making processes for S&T Policy• 3.2. Transformation of S&T Policy for SD

Some key figures about Vietnam

Population: 83.22 million (2005)

Urban - 20%; Rural - 80%

Land Area: 330,991 km2

Regions: 64 Provinces

Climate: Tropical and temperate

Geography: Two major rivers:

Red River and Mekong River

More than 3000km of coastline

People: Kinh people - 87%

53 ethnic minority groups - 13%, of which

90% are living in rural areas

Development context• 1986: Introduction of economic reform (Doi moi) transforming

national economy from a centrally planned system into a market oriented one and open-door policy, gradually integrating it into world economy

• 1990: “10-Year Strategy for socio-economic Stabilization and Development” for period 1991-2000, took the “Doi moi” reform process much further and deeply, leading to significant changes and covering all sectors of the economy.

• 1996: Focus on promoting industrialization and modernization designed to reach industrialized status by 2020 and to prepare conditions for joining WTO.

• 2001: “10-Year Strategy for socio-economic development” for period 2001-2010.

Development Achievements

Development achievements• GDP Growth rate: 6.9% per annum (1996-2000); and 7.5%

(2001-2005)– An industrial growth rate of 12.9% per annum raising the share of

industry from 22.7% (1990) to 40.5% (2003) of GDP and reducing share of Agriculture from 38% to 21.7% accordingly.

– Sustained growth of 4.2% in agriculture, making Vietnam the second largest exporter of rice and third largest exporter of coffee in the world; Agricultural export constitutes 30% of the country’s export.

– Export growth: 16.2% per annum (2001-2005)– FDI shared 16.8% of total investment (2001-2005)

• Reduction of the rate of poverty (Vietnam's standard) from 30% of the total households in 1990 to 10% in 2000 and 7% in 2005

• The area covered by forest increases from 23% (beginning 1990s) to 34.5% (2001) and 37% (2004)

Growth of GDP (Annual Rate %)

0

2

4

6

8

10

1995 1996 1997 1998 1999 2000 2001 2002 2003

GDP

Average GDP Growth: 7.6% per annum doubling the size of Vietnam’s economy between 1995-2001

Viet Nam’s GDP per capita has increased this decade, but remains low ( at US$ 440 per capita in 2002; estimated US$ 600 in 2005). Source: Government Statistic Office

Major development challenges

• The exhaustion of natural resources due to rapid economic growth based on natural resources and inefficient utilization of natural resources.

• Increased population vs. limited land resource (more 82 millions population; less 0.1 ha agricultural land per capita)

• Pollution caused by industrial development based on out of date technologies

• Pollution due to over-use of pesticides and fertilizers in agriculture

• Natural disaster (flooding, typhoons: El Nino, La Nina, earth quake,etc)

Land Areas(Million Hectares)

56789

101112131415

1961 1965 1970 1975 1980 1985 1990 1994

AgricultureForests

In 35 years, almost 1/3 of forests have been lost...

Source: UNDP

Forest decline in Vietnam

• Rapid loss of forest in northern highlands

• Encroachment on Central Highlands (coffee, rubber)

• Loss of mangroves in Mekong Delta and Coastline (shrimp farming)

• Loss of valuable species

• Degradation of remaining area

19901970

Natural Resources Base(Ha/Capita)

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Malaysia Indonesia Thailand Viet Nam Philippines

Forest

Agriculture

… with less than 1/10 ha of agricultural land per capita

Source: UNDP

Outline of Presentation

1. Development context, achievements and challenges since 1990s

2. Government policy concerning SD3. S&T Policy for SD

• 3.1. Decision-making processes for S&T Policy• 3.2. Transformation of S&T Policy for SD

Government policy concerning SD (1)

• 1991: Gov. passed the first Vietnam National Plan for Environment and Sustainable Development 1991-2000 (NPESD)– Recognition of the need to integrate socio-economic

development with environment

• as result of NPESD:– 1992: Establishment of MOSTE and – 1994: National Assembly passed Law on Environment

Protection

Government policy concerning SD (2)

• 2002: Gov. approved the National Strategy for Environmental Protection (NSEP) up to 2010 and Vision toward 2020– NSEP is considered as part of the national socio-

economic Development Strategy towards SD

• 2004: Gov. approved the Strategic Orientation for SD in Vietnam (VN Agenda 21) – A framework strategy to ensure the SD in VN in 21st

Century

Recognition of the role of S&T in the SD Policies

• S&T have been recognised to play key role for sustainable development in SD policy documents , e.g.

• Vietnam Agenda 21: – one of eight principles to pursuit SD in

Vietnam is to applying S&T, particularly in modern, clean and environmental friendly technology in production.

– The need to develop research capacity on environmental protection

Outline of Presentation

1. Development context, achievements and challenges since 1990s

2. Government policy concerning SD3. S&T Policy for SD

• 3.1. Decision-making processes for S&T Policy• 3.2. Transformation of S&T Policy for SD

National System of S&T in Vietnam

Government

Line Ministries/Agencies

Provinces/Centrally-Managed Cities

Council forSectoral S&T Policy

MOST

DOST of ministries DOST of provinces

R&D institutions under lineministries/agencies

R&D institutions affiliated to localities, associations, business-entities, joint-ventures, partnerships

Universities

National AssemblyVietnam Communist Party CSTECCSTE

National Council forS&T Policy

Department of Science & Education

Vietnam Academies of S&T

MOST: Ministry of S&T; DOST: Dept of S&T

10 Year Socio-economic Development Strategy 2001-2010approved by National Party Congress

10 year Sectoral Development Strategy incl. S&T Strategy 2001-2010 approved by the Prime-minister

National SC from concerned ministries, chaired by the Minister of MOST

Drafting Working Group from Depts of concerned ministries, coordinated by NISTPASS

Supporting Research team from NISTPASS staff

Workshops/seminars to provide comments on the draft from concerned stakeholders (scientist, managers, business, NGOs, international experts)

Draft S&T Strategy 2001- 2010

Approved S&T Strategy

Decision-making process for S&T Policies:The case of the S&T Strategy 2010

Transformation of S&T Policy for Sustainable Development

• Changing policy agenda/priority to address the need of integrating economic, social and environmental aspects in development planning and building endogenous S&T capacity to meet the need of SD.

• Wider participation of various stakeholders in the S&T policy process

Changing Policy Agenda

• Since 1990s: S&T Policy focuses on the economic aspect – promotion of commercialization of research and technology and innovation in enterprises

• Recently ( as indicated in the S&T Strategy 2001-2010), S&T policy highlights the need to ensure the quality of development and achieve sustainable development.

S&T Strategy 2001-2010

The Strategy focuses on achieving 3 groups of objectives:1. To ensure the supply of scientific grounds for the

shortened industrialization process, sustainable development and successful integration into the world economy;

2. To contribute to a decisive part to raising quality of economic growth and competitiveness of national economy;

3. To build and develop the scientific and technological capacity to be reached above average level of the region.

State priority R&D Programs related to SD1996-2000

• National R&D Program (1996-2000): Total number is 11; and 5 of them concerning high technologies and environmental protection– R&D Program on ICT with 25 projects– R&D Program on Biotech for sustainable agriculture, forestry and

fishery sectors, environmental protection and health care with 28 projects

– R&D Program on Materials with 30 projects– R&D Program on Automization with 18 projects– R&D Program on Rational Utilization of Natural Resources and

Environmental Protection with 17 projects

State priority R&D Programs related to SD2001-2005

• R&D Programs (2001-2005): Total number is 10; and 6 of them concerning high technologies and environmental protection, health care:– R&D Program on ICT– R&D Program on New Materials – R&D Program on Automization – R&D Program on Biotech – R&D Program on Environmental Protection and

Natural Disaster Prevention – R&D Program on Community Health Care

Wider participation of stakeholders in policy formulation process (1)

• Move from sectoral approach to inter-sectoral one: involvement of many concerned sectors in policy formulation to deal with the intersectoral issues

• Move from a centralized and internal debate among policy makers to more broader involvement of concerned stakeholders and open debate.

Wider participation of stakeholders in policy formulation process (2)

• Preparation of the S&T Strategy 2010 involved various groups of stakeholders representing academic, bureaucratic, economic and also civic communities:– Forms of participation: sending draft for review and comments,

holding workshop/seminar/roundtable discussion to discuss and reach collective consensus,

– Flexibility of conducting policy dialogue to adjust the policy goals and priorities, taking into consideration of concerns of relevant stakeholders.

• Using technology foresight as tool to involve stakeholders in setting priorities for S&T investment, e.g. TF for food-processing and tea:– First time to involve business community from food processing

and tea in the discussion to setting priorities for tee production.

Conclusions• Vietnam has achieved a remarkable economic growth since

the Doi Moi reform in 1986. However, it also faces a number of development challenges.

• Government recognized the need for SD and implements a number of policies and strategies to ensure the sustainability of the development

• S&T Policy is considered a key instrument to contribute to SD in Vietnam. Thus, S&T policy has been transformed in terms of policy agenda/priorities and policy-making process: – Policy priorities include State R&D programs relevant to SD. – The Policy making process is more participatory involving

concerned stakeholders in the open debate.

Thank you for your kind attention!