FINANCE IN WATER RESOURCES MANAGEMENT IN VIETNAM

Dr. Dao Trong Tu

VNWP

Yangon- Myanmar 3/10/2013

CONTENTS

1. Water of Vietnam

2. Legal and Institutional Framework for Water Resources in Vietnam

3. Financial Policy in Water Resources Management in Vietnam

4. Identification of Financial Needs for Sectors in IWRM

5. Recommendations

Vietnam and SEA countries

WATER OF VIETNAM

1

Country Area: 331.690 km2

Population: 90 million people (2012)

River system: 2,372 rivers/watersheds with length > 10 km, 13 river basins with area > 10,000 km2

Water resources: 830 - 840 Billion m3/year (63% of which from neighbour countries)

Actual annual renewable water resources per capita: 9,700 m3

(Asia: 3.970 m3, World: 7.650m3)

C¶Fl v = 27.200 km2

W = 24,2 km3

Cöu LongFl v = 795.00 km2W = 520,3 km3

GIANHFLV = 4.680 KM2W = 8,14 KM3

Thu BånFl v = 10.496 km2

W = 19,3 km3

S£ SANFLV = KM2W = KM3

Sr ª PèkFl v = km2W = km3

M· -ChuFl v = 28.490 km2

W = 20,1 km3

§ ång NaiFl v = 42.655 km2

W = 30,6 km3

Th¹ ch H· nFl v = 2.660 km2W = 4,68 km3

B»ng Giang-Kú Cï ngFl v = 12.880 km2

W = 8,92 km3

Hång vµ Th¸ i B×nhFl v = 168.700 km2

W = 137 km3

H ¬ngFl v =2.830 km2W = 5,64 km3

Tr µ KhócFl v = 4.680 km2W = 8,14 km3

BaFl v = 13.900 km2

W = 2,58 km3

KoneFl v = 2.980 km2W = 2,58 km3

S«ng Chu

S«ng CÇu

S«ng Yªn

S«ng § uèng

S«ng Th i B×nh

S«ng Trµ Lý

S«ng Th¹ch H· n

S«ng Chµm Chim

S«ng Vµm Cá

S«ng Cöa TiÓu

S«ng BÐ

S«ng La Ngµ

S«ng Thu Bån

S«ng Hµn

S«ng Tam Kú

S«ng Trµ Khóc

Hå § ¬n D ¬ng

Hå Nói Mét

S«ng C¸i

S«ng Kon

20º00'

106º00'

Hå TrÞ An

Hå DÇu TiÕng

c m p u c h i a

104º 00'

Hå Th c Bµ

l µ o

Vông CÇu Hai

10º00'

108º00' 110º00'

14º00'

12º00'

108º00' 110º00'

18º00'

16º00'

22º00'

18º00'

16º00'

14º00'

12º00'

10º00'

22º00'

106º00'104º 00'

T r u n g q u è c

20º00'

Phan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p ChµmPhan Rang Th¸p Chµm

Nha TrangNha TrangNha TrangNha TrangNha TrangNha TrangNha TrangNha TrangNha Trang

Tuy HoµTuy HoµTuy HoµTuy HoµTuy HoµTuy HoµTuy HoµTuy HoµTuy Hoµ

Tam KúTam KúTam KúTam KúTam KúTam KúTam KúTam KúTam Kú

Qu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· iQu¶ng Ng· i

Plei KuPlei KuPlei KuPlei KuPlei KuPlei KuPlei KuPlei KuPlei Ku

Kon TumKon TumKon TumKon TumKon TumKon TumKon TumKon TumKon Tum

Qui Nh¬nQui Nh¬nQui Nh¬nQui Nh¬nQui Nh¬nQui Nh¬nQui Nh¬nQui Nh¬nQui Nh¬n

§ µ L¹ t§ µ L¹ t§ µ L¹ t§ µ L¹ t§ µ L¹ t§ µ L¹ t§ µ L¹ t§ µ L¹ t§ µ L¹ t

Phan ThiÕtPhan ThiÕtPhan ThiÕtPhan ThiÕtPhan ThiÕtPhan ThiÕtPhan ThiÕtPhan ThiÕtPhan ThiÕt

Bu«n Ma ThuétBu«n Ma ThuétBu«n Ma ThuétBu«n Ma ThuétBu«n Ma ThuétBu«n Ma ThuétBu«n Ma ThuétBu«n Ma ThuétBu«n Ma Thuét

Biªn HoµBiªn HoµBiªn HoµBiªn HoµBiªn HoµBiªn HoµBiªn HoµBiªn HoµBiªn Hoµ

Vòng TµuVòng TµuVòng TµuVòng TµuVòng TµuVòng TµuVòng TµuVòng TµuVòng Tµu

§ ång Xoµi§ ång Xoµi§ ång Xoµi§ ång Xoµi§ ång Xoµi§ ång Xoµi§ ång Xoµi§ ång Xoµi§ ång Xoµi

Hå ChÝ MinhHå ChÝ MinhHå ChÝ MinhHå ChÝ MinhHå ChÝ MinhHå ChÝ MinhHå ChÝ MinhHå ChÝ MinhHå ChÝ Minh

Thñ DÇu MétThñ DÇu MétThñ DÇu MétThñ DÇu MétThñ DÇu MétThñ DÇu MétThñ DÇu MétThñ DÇu MétThñ DÇu Mét

BÕn TreBÕn TreBÕn TreBÕn TreBÕn TreBÕn TreBÕn TreBÕn TreBÕn Tre

T©n AnT©n AnT©n AnT©n AnT©n AnT©n AnT©n AnT©n AnT©n An

Mü ThoMü ThoMü ThoMü ThoMü ThoMü ThoMü ThoMü ThoMü Tho

Trµ VinhTrµ VinhTrµ VinhTrµ VinhTrµ VinhTrµ VinhTrµ VinhTrµ VinhTrµ Vinh

T©y NinhT©y NinhT©y NinhT©y NinhT©y NinhT©y NinhT©y NinhT©y NinhT©y Ninh

Sãc Tr ngSãc Tr ngSãc Tr ngSãc Tr ngSãc Tr ngSãc Tr ngSãc Tr ngSãc Tr ngSãc Tr ng

CÇn Th¬ CÇn Th¬ CÇn Th¬ CÇn Th¬ CÇn Th¬ CÇn Th¬ CÇn Th¬ CÇn Th¬ CÇn Th¬

VÜnh LongVÜnh LongVÜnh LongVÜnh LongVÜnh LongVÜnh LongVÜnh LongVÜnh LongVÜnh Long

Cao L· nhCao L· nhCao L· nhCao L· nhCao L· nhCao L· nhCao L· nhCao L· nhCao L· nh

B¹ c LiªuB¹ c LiªuB¹ c LiªuB¹ c LiªuB¹ c LiªuB¹ c LiªuB¹ c LiªuB¹ c LiªuB¹ c Liªu

Long XuyªnLong XuyªnLong XuyªnLong XuyªnLong XuyªnLong XuyªnLong XuyªnLong XuyªnLong Xuyªn

R¹ ch GiR¹ ch GiR¹ ch GiR¹ ch GiR¹ ch GiR¹ ch GiR¹ ch GiR¹ ch GiR¹ ch Gi

Cµ MauCµ MauCµ MauCµ MauCµ MauCµ MauCµ MauCµ MauCµ Mau

HuÕHuÕHuÕHuÕHuÕHuÕHuÕHuÕHuÕ

§ µ N½ng§ µ N½ng§ µ N½ng§ µ N½ng§ µ N½ng§ µ N½ng§ µ N½ng§ µ N½ng§ µ N½ng

§ ång Hí i§ ång Hí i§ ång Hí i§ ång Hí i§ ång Hí i§ ång Hí i§ ång Hí i§ ång Hí i§ ång Hí i

§ «ng Hµ§ «ng Hµ§ «ng Hµ§ «ng Hµ§ «ng Hµ§ «ng Hµ§ «ng Hµ§ «ng Hµ§ «ng Hµ

H¹ LongH¹ LongH¹ LongH¹ LongH¹ LongH¹ LongH¹ LongH¹ LongH¹ Long

H¶i PhßngH¶i PhßngH¶i PhßngH¶i PhßngH¶i PhßngH¶i PhßngH¶i PhßngH¶i PhßngH¶i Phßng

B¾c GiangB¾c GiangB¾c GiangB¾c GiangB¾c GiangB¾c GiangB¾c GiangB¾c GiangB¾c Giang

L¹ ng S¬nL¹ ng S¬nL¹ ng S¬nL¹ ng S¬nL¹ ng S¬nL¹ ng S¬nL¹ ng S¬nL¹ ng S¬nL¹ ng S¬n

Th¸i B×nhTh¸i B×nhTh¸i B×nhTh¸i B×nhTh¸i B×nhTh¸i B×nhTh¸i B×nhTh¸i B×nhTh¸i B×nh

H¶i D ¬ngH¶i D ¬ngH¶i D ¬ngH¶i D ¬ngH¶i D ¬ngH¶i D ¬ngH¶i D ¬ngH¶i D ¬ngH¶i D ¬ng

B¾c NinhB¾c NinhB¾c NinhB¾c NinhB¾c NinhB¾c NinhB¾c NinhB¾c NinhB¾c Ninh

H ng Yªn H ng Yªn H ng Yªn H ng Yªn H ng Yªn H ng Yªn H ng Yªn H ng Yªn H ng Yªn

Nam § ÞnhNam § ÞnhNam § ÞnhNam § ÞnhNam § ÞnhNam § ÞnhNam § ÞnhNam § ÞnhNam § Þnh

B¾c K¹ nB¾c K¹ nB¾c K¹ nB¾c K¹ nB¾c K¹ nB¾c K¹ nB¾c K¹ nB¾c K¹ nB¾c K¹ n

Cao B»ngCao B»ngCao B»ngCao B»ngCao B»ngCao B»ngCao B»ngCao B»ngCao B»ng

Ninh B×nhNinh B×nhNinh B×nhNinh B×nhNinh B×nhNinh B×nhNinh B×nhNinh B×nhNinh B×nh

Phñ LýPhñ LýPhñ LýPhñ LýPhñ LýPhñ LýPhñ LýPhñ LýPhñ Lý

Th¸i NguyªnTh¸i NguyªnTh¸i NguyªnTh¸i NguyªnTh¸i NguyªnTh¸i NguyªnTh¸i NguyªnTh¸i NguyªnTh¸i Nguyªn

Hµ NéiHµ NéiHµ NéiHµ NéiHµ NéiHµ NéiHµ NéiHµ NéiHµ Néi

Hµ TÜnhHµ TÜnhHµ TÜnhHµ TÜnhHµ TÜnhHµ TÜnhHµ TÜnhHµ TÜnhHµ TÜnh

VinhVinhVinhVinhVinhVinhVinhVinhVinh

Thanh Ho¸Thanh Ho¸Thanh Ho¸Thanh Ho¸Thanh Ho¸Thanh Ho¸Thanh Ho¸Thanh Ho¸Thanh Ho¸

Hµ § «ngHµ § «ngHµ § «ngHµ § «ngHµ § «ngHµ § «ngHµ § «ngHµ § «ngHµ § «ng

VÜnh YªnVÜnh YªnVÜnh YªnVÜnh YªnVÜnh YªnVÜnh YªnVÜnh YªnVÜnh YªnVÜnh YªnViÖt Tr×ViÖt Tr×ViÖt Tr×ViÖt Tr×ViÖt Tr×ViÖt Tr×ViÖt Tr×ViÖt Tr×ViÖt Tr×

Hßa B×nhHßa B×nhHßa B×nhHßa B×nhHßa B×nhHßa B×nhHßa B×nhHßa B×nhHßa B×nh

Tuyªn QuangTuyªn QuangTuyªn QuangTuyªn QuangTuyªn QuangTuyªn QuangTuyªn QuangTuyªn QuangTuyªn Quang

Hµ GiangHµ GiangHµ GiangHµ GiangHµ GiangHµ GiangHµ GiangHµ GiangHµ Giang

Yªn B¸iYªn B¸iYªn B¸iYªn B¸iYªn B¸iYªn B¸iYªn B¸iYªn B¸iYªn B¸i

S¬n laS¬n laS¬n laS¬n laS¬n laS¬n laS¬n laS¬n laS¬n la

Lai Ch©uLai Ch©uLai Ch©uLai Ch©uLai Ch©uLai Ch©uLai Ch©uLai Ch©uLai Ch©u

Lµo CaiLµo CaiLµo CaiLµo CaiLµo CaiLµo CaiLµo CaiLµo CaiLµo Cai

Nguån: Hå s¬ Tµi nguyªn n í c ViÖt NamN¨m: 2003

W : Tæng l î ng dßng ch¶y

Flv : DiÖn tÝch l u vùc

Chó dÉn

QuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng SaQuÇn ®¶o Tr êng Sa

QuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng SaQuÇn ®¶o Hoµng Sa

River basins in Vietnam

WATER OF VIETNAM Long-term average annual precipitation 

1.980 mm/year

Long-term average actual renewable water resources

830-840 billion m3/year

 

Actual annual renewable water resources per capita

9 220 m3/inhabitant

% of total actual renewable freshwater resources withdrawn (MDG Water Indicator) (FAO AQUASTAT)

9.3 %

 

Groundwater withdrawal as % of total freshwater withdrawal (FAO AQUASTAT) 

1.7 %

 

Total area equipped for irrigation (FAO FAOSTAT and AQUASTAT) 

4 600 000 ha

 

% of the cultivated area equipped for irrigation

(FAO FAOSTAT and AQUASTAT) 

45 %

 

% of irrigation potential equipped for irrigation

(FAO AQUASTAT) 

49%

LEGAL FRAMEWORK FOR WRM

IN VIETNAM

2

Laws and Under Law Documents:

Law on Water Resources 1998 and revised in 2012; Law on Environmental Protection (2005) Law on Land (2003) Law on Fisheries (2004) Law on forest protection and development (2004) Decree on River Basin Management (2008) Decree on Dykes (2006) Ordinance on Exploitation and Protection of Irrigation

Works (2001) Law on Inland Waterway Navigation 2004,

LEGAL REFORM (Cont’)

Decree 120/2008/ND-TTG: River Basin Management (12/2008)

Decision No. 277/2006/QD-TTg dated 11/12/2006: National Target Program for clean water supply and sanitation in the 2006-2010 period.

Decree No. 149/2004/ND-CP dated 27/07/2004: Permits for water resource exploration, exploitation and use, or for discharge of wastewater into water sources.

Decision No. 05-2003/QD-BTNMT dated 04/09/2003: Licensing of surveying, exploiting of under ground Water Resources

Decision No. 104/2000/QD-Ttg dated 25/08/2000: National Strategy on Rural Water and Sanitation Strategy up to 2020

National Level

National Water Resources Council (2000): National Policy

Advisory Body: apex body

MONRE (2002): National Water Resources Policy and

Management (Surface & Ground W)

MARD (1995): Irrigation, Water related Disaster

Management (Flood, Drought), Rural Water Supply:

Institutional Arrangements

Institutional Arrangements (cont.)

MoIT (2002): Hydropower Development:

MoT: Inland Water Transportation

MoC: Urban Water Supply

MoH: Water Hygiene

MPI: National Water Investment Planning and Policy

MoF: state Budget control

Institutional Arrangements (Cont.)

Provincial Level:

DONRE: Provincial Water Resources Management

DARD: Irrigation, Water related Disaster Management, Rural

Water Supply in province.

DoIT: Hydropower Development (small hydropower <30 MW):

DoT: Provincial Inland Water Transportation

DoC: Provincial Urban Water Supply

DoH: Water Hygiene

DPI: National Water Investment Planning and Policy

DoF: Provincial Budget Control

Functions and Task of Institutions Relating to WRM

Ministry Functions and tasks of water resources management

Ministry of Natural Resource and Environment (MONRE)

State management of water resources, meteorology and hydrology, synthesis and unification of sea and island management

Ministry of Agriculture and Rural Development (MARD)

State management of agriculture, salt production, aquaculture, irrigation, rural development, dyke management, flood control

Ministry of Industry and Trade (MOIT) Development of hydropower, construction and operation of hydropower dams/plants

Ministry of Science and Technology (MOST)

Development and provision of guidance on the application of water related criteria

Ministry of Construction (MOC) Implementation of water supply and drainage plan in urban areas, industry zones and residential areas.

Ministry of Transport (MOT) Management and development of navigation, waterway structure and harbors.

Ministry of Health (MOH) Management of criteria relating to clean water, sanitation and food safety

Ministry of Finance (MOF) Provision of guidance on water related fees and taxes.

Ministry of Planning and Investment (MPI)

Synthesis of investment projects on water resources and submission of plans, cost estimate of water resources projects and water related damage mitigation projects

FINANCIAL POLICY IN WRM IN VIETNAM

3

Financial Principles in WRM

Vietnam also applies principles to finance WRM:

1. Polluter Pays: creates conditions to make pollution a costly activity and to either influence behavior (and reduce pollution) or generate revenues to alleviate pollution and compensate for welfare loss.

2. Beneficiary Pays: allows sharing the financial burden of water resources management. It takes account of the high opportunity cost related to using public funds for the provision of private goods that users can afford.

3. Equity: a feature of many policy frameworks for water management. It is often invoked to address affordability or competitiveness issues, when water bills, driven by the first two principles, may be disproportionate with users' capacity to pay.

4. Diversification of budgets for water investments (Irrigation, hydropower, water supply, environment protection etc)

Financial Policy in WRM

Law on Water Resources 2012:

Financial sources: Water resources tax and fees and charges Licensing for granting the water resources rights Compensation and fined for the State due to violation on the

field of water under regulation of laws.

Who pay: Organizations and individuals to exploit the water have to pay

for granting the water exploitation in following cases: Water exploitation for business hydropower generation Water exploitation for business activities, services and non-

agricultural production Groundwater exploitation for industrial trees growing, livestock,

fishery cultivation with large scale.

IDENTIFICATION OF FINANCIAL NEEDS FOR SECTORS IN IWRM

4

What Kinds of Investment for WRM ?

Non-Structure/Software Administrative system Building capacity Public awareness

Structure IrrigationWater supplyHydropowerRiver TrainingEnvironmental protectionRecreationWater related disaster

Water Administrative Financing:

Water resources policy and administrative management: Water sector policy, planning and programmes;

Water legislation and management;

Institution capacity building and advice;

Water supply assessments and studies;

Ground- water, water quality and watershed studies;

Hydrogeology. Excluding agricultural water resources.

Water disaster: developing knowledge, natural risks cartography, legal norms for construction; early warning systems; emergency contingency stocks and contingency planning including preparations for forced displacement.

Infrastructures

Agricultural water resources: Irrigation, reservoirs, hydraulic structures, groundwater exploitation for agricultural use.

Hydropower: Hydroelectric power plants

Water resources protection: surface waters (rivers, lakes, etc.); conservation and rehabilitation of groundwater; prevention of water contamination from agrochemicals, industrial effluents.

Inland transportation:

Water for Uses– Domestic Water Supply (Urban and Rural)– Agriculture– Hydropower– Navigation – Recreation– Ecosystem and Environment– Other needs

Protection and Mitigation of Water Related Hazards:

– Water Drainage in urban and rural ares

- Water quality Control– Flood and Inundation – Water born Diseases– Others

Money Stream of Investment in Water Resources(2002-2011)

No. Users

Annual average government expenditure

(million constant 2010 US$)*

Percentage (%)

Annual average official

development assistance gross disbursements (million constant

2010 US$)

Percentage (%)

1 Hydroelectric power plants 577.63 50.6 29.54 12.3

2 Agricultural water resources 197.54 17.3 37.29 15.5

3Basic drinking water supply and basic sanitation 172.12 15.1 31.92 13.3

4Water supply and sanitation in large systems 144.97 12.7 80.54 33.5

5Disaster prevention and preparedness 31.00 2.7 24.36 10.1

6Water resources policy and administrative management 11.15 1.0 12.79 5.3

7 Water resources protection 6.16 0.6 9.02 3.7

8 River development 0.00 0.0 15.06 6.3

Total annual average 1140.57 100 240.52 100

Water Related Investment in BriefDuring 2002 to 2011:

Water related investment: 22.9 % of total Gov,’s expenditures

1) National budget: US$ 1, 140.57 million/year

oHydropower: 50.6% oIrrigation: 17.3 %oWater supply & sanitation: 27.8%oOthers 14.3%

2) ODA: US$ 240.52 million/year

o Water supply & sanitation 46.8%

Main Activities of Water Investment

Water Supply 2006 – 2010 Programme: mobilized budget US$ 1.4 billion,

(91.6% of planned budget), 3 times higher than mobilized budget in the period of 1999-2005. Objectives of program has met. Capital mobilization diversified in comparison to many

other programs, Gov.; Private, people and International one

International support: around US$ 200 million (14.3% of the total mobilized fund).

Soft credit: US$ 450 million (32.6%). Private and people: US$ 170 million (12%) Government and others: US$: 580 million (41,1%)

Agriculture Water Finance policy in future

Targets to 2015:

Policies on water pricing and responsibilities to ensure quality of water service :

70% of O&M fully recovered by 70% of urban service providers; 25% of O&M fully recovered by 50% of irrigation service providers; A resource management charging regime developed and implemented for

equitable recovery of costs of water resource management activities.

Orientation to 2020:

100% of O&M fully recovered by all urban service providers. 50% of capital and infrastructure replacement costs fully recovered by all

major urban service providers 50% of O&M fully recovered by 75% of irrigation service providers. 100% of attributable resource management costs being met through water

resource use charges.

Expected …

2012-2015: US$ 1.35 billion - State budget: US$ 210 million 4.100 tỷ

đồng (15%); - Local governments: US$ 155 million (11%);- International aids: US$ 410 million (30%); - Credit fund US$ 450 million (33%), - People contribution: US$ 155 million (11%).

Information….

Vietnam has 753 urban areas (2011): 2 Special urban areas: Hanoi & Ho Chi Minh City 3 Cities urban categories I: Hai Phong, Da Nang & Can

Tho. 8 Provincial cities categories I: Hue, Da Lat, Nha Trang,

Quy Nhon, Buon Ma Thuot, Thai Nguyen and Nam Dinh. 11 Provincial cities categories II: Bien Hoa, Ha Long,

Vung Tau, Viet Tri, Hai Duong, Thanh Hoa, My Tho, Long Xuyen, Pleiku, Phan Thiet and Ca Mau.

47 Urban areas categories III: towns or provincial city 42 Urban areas categories IV: towns, township,

&townlets 640 Urban areas are categories V that are townlets

Information…

• 2006-2010 : Rural people enjoyed clean water about 52 million (or 75% of total rural people in Country) increasing 13,2 % in comparison in 2005...

Where budget come from? State budget: 12%, Soft credit: 40%; International fund: 20%; and People: 28%

Drinking Water Supply and Sanitation

Investment in Irrigation 4 decades (80’s up to 2010): Investment for highly intensified

cropland systems: 6125 trillion VND ( about US$ 3.2 billion)

100 large to medium scale hydraulic works. More than 8000 other irrigation systems used mainly for paddy field irrigation.

2005: US$ 120 million 2008: US$ 240 million) ; Irrigation subsided budget:: US$ 82 million Up to 2010: > US$ 850 million) (48% of budget for

agriculture sector) -7 times increased. For Mekong Delta 2012-2050: VND 171.700 billion (USD

8.5 billion)

Investment for Agriculture in Mekong Delta (Irrigation and DRM in Climate Change)

2006-2012: 14,870 billion VND (USD 700 million) under MARD’s management and about 4,970 billion VND (USD 2,485), under local authorities.

Averagely, investment for Mekong delta about USD 110 -120 million/year.

• Under climate change, in period of 2012-2020 and vision to 2050: 171,000 billion VND (USD 8.59 billion) of that,

• Sea dike construction: USD 248 million; • Improvement of river dyke of USD 588 million; • Irrigation canal system of USD 249 million, • Flood control projects of USD 249 million • Construction of coastal sluices and improvement of field

canal works of USD 6.3 billion.

• The investment will be allocated in the three periods, namely: in 2012-2020: USD 2.07 billion; in 2021-2030: USD 2.48 billion; and in 2031-2050: USD 4.10 million.

Irrigated Agriculture

Investment for Hydropower

Up to 2013:

- Contribution of hydropower to state budget:

Annual: VN 6.500 billion (US$ 330 million) by tax, fees etc.

- Estmated investment ranging from US$ 20.5 billions to US$ 27 (1 MW x US$ 1.5 - 2 million)

Annual investment abount US$ 1 to 1.3 billion/year.

Hydropower Potential Range of among 14 richest potential of hydropower

in the world. Total theory potential : 30-35 thousand MW install

capacity. Technical potential: 18-20 thousand, now, 85 %

exploited.

Install Capacity (2013):

- 2013: 13.694 MW

Investment for Environment Protection

TT Content Unit By 2015

By 2020

Municipal solid waste

Hazard ous solid waste

Municipal solid waste

Hazardo us solid waste

1 Demand for treatment

tone/day 35,990 2,860 39.196 2.726

2 Demand for investment in treatment

VND billion

28,800 7,200 31.300 6.800

3 Total demand for investment

VND billion

36,000About US$ 1.8 billion

38,100About US$ 1.9 billion

Estimated investment demand for solid waste treatment in the various periods

Areas Flood Trans-boundary may occur

Water Disaster Investment 1996-2000

Region Government International Total

Red River 2730 1643 4373

North Moutain 1362 192 1554

North Central Part 1739 718 2457

Central Coasatal Part 1093 122 1215

Central Highland 338 37 375

South East 9 2 11

Cuu Long Delta 2749 77 2826

Total 10020 2791 12811

Investment for Urban Drainage

Last 10 years: drainage system in urban areas has had large investments for upgrade and expand the drainage systems; reduce local flood and improve sanitation conditions.

Out of 100 cities and towns, 32 urban areas had ODA projects that have been implemented with different progresses.

Total investment: VND 32,000 billion (US$ 1.6-1.8 billion);

However, still many shortcomings in drainage systems in urban areas.

Mitigating Floods and Droughts

Investment for Urban Drainage in FutureIn 2011 – 2015: Total investment demand for drainage (including committed projects) by 2015 is around: VND 85,000 billion (US $ 4.3 billion) focusing on addressing main tasks:

– Developing master plan for drainage in urban areas from categories III to higher ones that have not got master plan yet.

– Continuing implementation of the approved urban drainage projects with the funds committed by donors.

In 2015 -2020: Total investment demand for development of drainage: VND 70,000 billion (US$ 3.5), focusing main tasks:

– Investing in completion of wastewater treatment stations and sewer routes for collection in large cities such as Hanoi, HCM City, Da Nang (VND 30,000 billion or US$ 1.6 million).

– Continuing to invest in drainage system for urban areas of categories from IV to higher. (VND 40,000 billion or US$ 2.0 billion)

Water – related Disasters

Note:*Water-related disasters’ within the scope of this WCB study do not include droughts.

Water Intensity in Industry

Conclusions and ReconmendationsLarge investment but more focusing on source

generating rather than distributingWaste and pollution control weakSelf-sufficiency improved but far from the target Irrigation fee backing and confusingStudy constrainsAssess to data difficultData are managed/stored by different

agencies/sectors and not consistent

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