water vital vietnam future

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Vital for Viet Nam’s Future



CONTENTS

FOrEwOrd 1

ThE ViET Nam CONTExT 2

aSSESSmENT OF waTEr SECTOr iN ViET Nam 7

1-Ensuringadequatewatersupplyandsanitation 7

2-Managingoodsandnaturalhazards 9

3-Providingoreconomicdevelopment 11

4-Sustainingagricultureandaquaculture 17

SECTOr maNagEmENT – adOpTiNg aN iwrm apprOaCh 19

iSSuES aNd OpTiONS FOr ThE FuTurE 21

ThE way ahEad

appENdix - riVEr baSiN SummariES 29



1

FOrEwOrd

Wealldependonwater-lieisimpossiblewithoutit.Watermaintainstheintegrityandsustainabilityotheenvironmentwithinwhichwealllive.Weneedcleanwaterordrinkingandcooking,orsustainingourhealthandorsanitation.Waterisarguablythemostpreciousnaturalresourcetosupportourgrowth

anddevelopment.Itsupportsouragriculture,aquaculture,industryandothersectorsotheeconomy.Itsupports

hydropowerandwaterwaytransportation.Waterispreciousbutlimitedandhighlyvariableintimeandplace.Itisalsohighlyvulnerabletodegradation.Water,initsextremes,canalsopresentmajorhazardsorhumanexistence.

WaterresourceshavelongbeenrecognizedasakeyresourceorthedevelopmentoVietNam.OvermanyyearstheGovernmenthasundertakenconsiderableworktoprovideinrastructuretobothdevelopwaterorsettlementsandoodsecurity,and toprotectcommunitiesromoodingandothernaturaldisasters. However,duringthisdevelopmentperiod,thecrucialroleowaterintheNation’ssustainabledevelopment,humanhealthandliehasnotalwaysbeenullyappreciated.Itsvalueasascarcenaturalresourceandeconomicgoodhasnotalwaysbeenrecognized.Asa result,insucientattentionhasbeenpaidtotheneedtoprotectandmanagewaterresources,andtodaytherearenumerousexamplesoseriousdegradationinthequalityandquantityoournationalwaterresources,andoshortagesowaterinmanyregions.

In2006, thePrimeMinistersigned thedecision81/2006/QD-g promulgating theNationalWaterResources

StrategyowardstheYear2020.Tisaimstostrengthentheprotection,exploitation,useanddevelopmentowaterresources,aswellasthepreventionandmitigationoadverseimpactscausedbywater.

InordertosupporttheaimsotheNationalStrategy,andtoprovideaplatormoritsimplementation,theWaterSectorReview (WSR)was undertaken as a jointproject o theGovernment oVietNamand its internationaldevelopmentpartners.TeobjectiveotheprojectwastoreviewthestateotheVietNamwatersector,toestablishacommonrameworktoguidedevelopmentdecisionsinthesectorandtosupportIntegratedWaterResourcesManagement(IWRM)initiativestounderpintheGovernment’sachievementotheNationalStrategyovertheorthcoming10years.

Tewatersectorreviewwaspreparedonthebasisothebestinormationavailableatthetime,andwasgenerallyreviewedbytheGovernmentaskForcesetuptoguidetheReview.However,thedetailedresultsthathavebeenproducedcannotbetakentobeabsolutelyaccurate.TeyareusedintheReviewtoillustratethemainissuesacing

VietNam,andovertimemoredenitivedatacanveriytheaccuracyotheresults.Inthatcontext,readersshouldnotocusontheveracityothedata;rathertheyshouldtakethemainmessagespresentedandworkwiththeconcernedMinistriesandtheinternationaldevelopmentpartnersonthevariousmeasuresthatwillleadVietNamtowardsabetterIWRMapproach.

TispublicationpresentsthemainndingsotheReview,particularlyinrelationtothestatusowaterresourcesandwater-relatedenvironments,includingwaterquality;the statuso themainsub-sectors–watersupplyandsanitation, natural hazards, navigation, industry and crat villages, hydropower, irrigation and sheries andaquaculture; themainissuesacing thesector; andthemainmeasures thatVietNam could adopt toensure asustainablewateruture.

TispublicationispresentedasareerencedocumentorGovernmentagenciesandorganisationsatalllevels,theinternationaldevelopmentpartners,academics,aswellasorabroaderaudienceoindividualsandorganisations

interestedinissuesrelatedtothemanagementowaterinVietNam.ItsndingsareimportanttousallandtheinormationstemmingromtheReviewwillinuencekeydecisionmakersatalllevelsandpotentialinvestorsinwatersectorreorm.

In responseto theReview, theGovernmentis preparing aNationalargetProgramto providea concentratedocusanddrivetodealwiththecriticalchallengesacingthesectorandtoocusonthesustainableprotectionandexploitationowaterresources.

Hanoi, November 2009

Dr. Nguyen Tai Lai Mr. Ayumi Konishi

Director Country Director or Viet Nam

Oce o National Water Resources Council Asian Development Bank



2

ThE ViET Nam CONTExT

16 mjo rve bsns

Tere are asmanyas 2,360perennial rivers over 10km in length in

VietNam,andthesenaturallyorm15majorriverbasinsspanningthecountry–seemap(Page28).TeprojecthasalsoincludedtheSouthEastRiversCluster(SERC).Tisisthegrouporiversinacomparativelydrypartothecountrywherelackowatercouldproveamajorconstrainttopovertyreductionanddevelopment.ItconsistsotheprovincesoKhanhHoa,NinhTuanandBinhTuan.Tese16basinswereusedasaplatormortheanalysisundertheproject.Mostotheanalysisisbasedon2006data.

Te Water Sector Review (WSR) has shown that Viet Nam’s watersector isacing awide range omajorissues,as outlinedbelow.Asaresult,tremendouschallengesaceVietNam’sproposedprogrammetoimplementtheNationalWaterResourcesStrategy.

a sn olton

VietNam is currently the 13thmost populous countryin the world,anditspopulationisprojectedtoreach100millioninthenext25years. Almosttwo-thirdsothecurrentpopulationliveinthethreemainriverbasins(Red–TaiBinh,MekongDeltaandDongNai).Tis,combinedwiththeshitinpopulationdistributionromruraltourbanareas,isplacingaparticularstrainonnancinginrastructure,aswellasresultingineverincreasingproblemsowatersupplyandenvironmentalpollution.

Within25yearsthepopulationinurbanareaswillrequireadailywatersupplycapacitytwicethatothecurrentlevelandwillalsogenerateconsiderable wastewater, all requiring signicant investment. In therecentpast,suchinvestment,particularlyintheurbanareas,hascomepredominantlyromocialdevelopmentassistance(ODA).Lookingtotheuture,investmentinbothruralandurbanwaterandsanitationwillhavetoquadrupleitheVietNamMillenniumDevelopmentGoals(MDGs)aretobemet.

Econoc eveloent

Undoubtedly,oneothegreatestpressuresonwaterresourcesandthe

water sector comes rom the strong economic development and thechangingstructureotheeconomy.Tisgrowthincreasinglyconsumesnatural resources, requiring a reliable water source, and generatesconsiderablevolumesopollutedwastewateraectingwatersources.

Overthelasttenyears,GDPhasnearlytripledandthegrowthintheindustry, construction and service sectors has been dramatic. At thecurrent growthrate (7.5%),VietNam’s economic output is projectedtodoubleevery10years.TeRed–TaiBinh,MekongDeltaandDongNairiverbasinsaccountorover70%oVietNam’sGDP,indicatingthatthepatternoeconomicgrowthishighlyuneven,withtherestotheCountrycontributinglessthan30%oGDP.UndertheSocio-EconomicDevelopmentPlan(SEDP)to2010,theGovernmentclearlyexpectsthe

paceoeconomic reorm tobemaintained into the uture, leading toevengreaterpressureonalreadystretchedwaterresources

he water sector is extreme-ly complex. It cuts across

many Ministries and organisa-tions and all levels o govern-ment, and covers many aspectso daily lie or communitiesand businesses. It spans the

entire country and its interestscan range rom a small house-hold taking living water rom acreek, or groundwater or a lake;to a arming community using a

water supply system; to a large privately owned hydropowerstation – all are part o the wa-ter sector.



3

deenence on ntentonl ves VietNam isheavilydependanton internationalrivers.Morethan60%othetotalaverageyearlysuracewaterdischargeisgeneratedoutsidethecountry.Sixriverbasinsdependonwaterinowsromothercountries–Red-TaiBinh,Ma,Ca,DongNai,BangGiang-KyCung,andCuuLong(MekongDelta).IntheCuuLong,almost95%otheaverage yearly suracewaterowsaregenerated intheupstreamMekongRivercountries,whilstintheRedRiver-TaiBinhbasinalmost40%othesuracewateroriginatesinChina.

OthercountriesalsodependoninowsromriversthatoriginateinVietNam.SuracewatersintheSeSanandSrePokbasinsgeneratedinVietNamaccountor75%and50%othetotalwaterinthoserespectivebasins,andabout2%othetotalowintheMekongRiver.TeBangGiang-KyCungowsromChinathroughViet

Nam,andbacktoChina.

avlle sce te Atrstglance,VietNamhasanapparentlyabundantwaterresource.VietNam’stotalsuracewaterdischargeo 9,856m3 per person a year compares avourablywith the international standard orhaving adequatewater o 1,700m3 per person a year. However, thisvariesgreatlybetweenriverbasinsandissignicantlydierent between the wet and dry seasons, which

canrangeinlengthromsixtoninemonthsandarelongestinthecentralVietNambasins.Underexistingpopulation and development levels, during the dryseason the Dong Nai and the SERC basins run theriskoirregularorlocalwatershortages,otenduetounsustainably high levels o water extraction. Otherriversareapproachingthislevel.

Coetn te ses Atpresent,nationally,nearly82%othetotalcurrentsuracewateruseisorirrigation,11%isoraquaculture,5%orindustryand3%orurbanuse.By2020,wateruseisexpectedtoincreaseby48%-irrigationwaterbyabout30%,industrybyalmost190%,urbanby150%and aquaculture by 90%. Tese changes will place aheavyburdenonVietNam’swaterresources.

TeWSRshowstheseriouslackowateravailabilityin VietNam in termso meeting uture projected wateruses,particularlyinthedryseason,andthestressthatthiswillputonrivers,withanumberobasinsbeingparticularlybadlyaected.Tisislikelytoinduceaocusongroundwateruseto supportmore o theprojectedsocio-economic growth. However, groundwaterresourcesarepoorlyassessedandunderstood.



4

gonte otentlGroundwater provides the domestic water supplyor more than hal o Viet Nam’s population. Morethan one-third o the urbanpopulation is dependenton groundwater, and almost two-thirds o the ruralpopulation. Whilst Viet Nam has an estimated total‘groundwater potential’ o almost 63,000 million m3

per year, in some areas concentrated groundwaterextractionsarecausingconcern.

InHanoi,waterlevelsareallingbymorethan1mperyearin someareas.Inparts oHoChiMinhCity,thedropinwaterlevelisasmuchas30m,andinotherpartsotheMekong,waterleveldeclinesarealsosignicant.Tereareparticularover-exploitationissuesinpartsothecoeegrowingareasotheCentralHighlands,withwaterlevelsdroppingbyover2.5mperyear.

wte stoeTe total current reservoir active storage volume isabout4.5%o the total averageannual suracewaterdischarge.Othis,over45%islocatedintheRed–TaiBinhbasin,andalmost22%intheDongNai.VietNamhasanactivestorageoabout440m3perperson,whichislowincomparisonwiththeUnitedStatesandAustralia(atover5,000m3perperson),andChina(2,200m 3perperson).Onlythreeriverbasinshavereservoirswithaoodmitigationcomponent.

potentl te sotes n

ve sn stessWateravailabilityinthedryseasonisalreadyaseriousissueinmanyriverbasinsorpartsobasins.Conictover access towater is increasing.Aswell, increasingpopulation and water use projections will change thewater availability in, and the stress on, river basins.Whilesomebasinswillhavesucientwatertosupport

thedemandsotheircommunities,anumberobasinswillsuerseverewatershortagesandbeunabletomeetgrowingdemandorwaterresources,particularlyinthedryseason.

Ameasureostressinariverbasinisthepercentageotheaverageannualdischargethatisextractedromrivers.Teinternationalstandardorwaterexploitationstress 1isthatmoderatestressbeginsatavalueo20%extraction,

andhighwaterstressoccursorvaluesabove40%.Stressmostlyoccursduringlowowtimes,duringthedryseason.Waterextractionduringthesetimesresultsinlesswaterortheriver-lesswettedareaandreduceddepthowater.Intheseconditionsmuchothenativeaquaticliestruggletosurvive.TisisparticularlyimportantorVietNamassomanypeople,particularlythepoor,relyonnaturalriversorsomuchotheirdailylie.

Tereore,thesuracewaterexploitationsituationinthedry season ismostcritical.Under existingpopulationanddevelopmentlevels,duringthedryseasonsixothe

16basinsareclassied‘moderatelystressed’(inthe20%to40%zone),andaurtherourareclassiedasbeing‘highlystressed’(theMa,SERC,HuongandDongNai).TeRedRiverbasinisalmostatthehighstressline.Temost severely stressed systems are the SERC basins,with75%othedryseasonowsextracted,andtheMabasinwithalmost80%extracted.Teserepresentveryhighlevelocurrentwaterextraction.

wte qltTeWSRounditdiculttogetmeaningulwaterqualitydataandinormation.However,onthebasisowhatisavailable,itoundthatsuracewaterdoesnotmeettheorganic pollution standards or drinkingwater in themain parts o all river basins. Higher concentrationsoorganicmatterareseeninanumberobasins.Tereare also some hot spots or rivers running throughresidentialareas.Organicpollutionisgenerallywithin

1.UsedbytheOECDandEuropeanEnvironmentAgency.



5

theBClassstandard(exceptinhotspots).Whilethereislimiteddataordeterminingpollutionlevelsoheavymetals, thesuracewater in all river basins generallymeetsdrinkingrequirements.

potectn Ecosstes VietNam’snaturalecosystems support nearly10%o

theglobaltotalomammalandbirdspecies.However, VietNam’sreshwaterandmarinebiodiversityisbeingthreatenedbydomesticandindustrialwaterpollution,dam and inrastructure construction, dredging,destructivesheriestechniques,aquacultureandover-shing.TeSEDPnotedthatVietNam’sEnvironmentSustainability Index (ESI) in 2005 was only eighthamongASEANcountries,andVietNamranked127thoverall,wellbelowsomeoitsclosestneighbours.

VietNam is rich in reshwater and marine wetlands,mostly intheRedRiver and theMekongRiverDeltasand along the coastline. Tere are about 1 million

hectaresowetlandsinrivermouthsandaroundsomeisland lagoons.TeDirectory o AsianWetlands listsover25wetlandsitesinVietNamthatmeetthecriteriao “Wetlands o International Importance”. Despitethis,onlytwowetlandsarerecognizedasRAMSARsites–theXuanTuyintheRedRiverDelta,andthenewlyestablishedBauSauinCatienNationalPark.

Healthy rivers, including their channels, beds, banks,and their habitats, support and maintain a mix oaquaticplantandanimallie.Teproportionotheowthatisextractedromariveriscriticalandindicatesthestress levelo ariver.Anumber obasinsarealready‘stressed’, particularly in the dry season, and this islikelytoincreasedramaticallyintheuture.

Ntl sstesTelocationandtopographyoVietNammakeitoneo the most disaster-prone countries in the world.Teactthatabout50%oitspopulationlivesonthe

coastcompoundstheproblem.Morethan80%othepopulation live atrisko direct impacts romnaturaldisasters.Floodplainoodingprovidesmajordicultiesin the Mekong Delta and the Central Region whilethedikesystemintheRedRiverDeltaprovidessomecontrols.Flashoodingoccursthroughoutthecountry.yphoons regularly afict the entire country butpredominantlyintheCentralRegion.

From1997to2006,naturaldisasterscausedover5,000deaths,anddestroyedmore than6,000 shing boats,nearly300,000houses,4millionhectaresopaddyrice,with a totaldamage cost osomeVND50,000billion.Teaverageyearlynaturaldisasterrelateddamagecostineachbasin isalsodominatedby the riverbasinsincentralVietNam,whereeconomiclossesarealmostthesameastheannualgrowthratesinGDP.

Clte cneRecent UNDP andWorldBank reports indicate that

Viet Nam is one o ve countries world-wide mostvulnerabletosea-levelrise.Inascenariooa1mrisein sealevel, assessments showthat VietNamwouldlose5%oit’sland,11%othepopulationwouldbeseriously aected, agricultural production woulddecreaseby7%,andtheGDPwoulddecreaseby10%. A1msealevelrisewouldoodmorethan38%othelandotheMekongDeltaBasin.Someprovinceswouldlosenearlyhalotheirland.2

InDecember2008,theGovernmentapprovedaNationalargetProgram(NP)onClimateChangeAdaptation.Climate-changeadaptationandmitigationprojectswillbepilotedinprovincesmostatriskosea-levelriseoverthenexttwoyears.From2011–2015,theplanwillbeadoptednationwide.

2.NotethatmorerecentinormationhasbeencompiledortheNPonclimate

changeadaptation.



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7

aSSESSmENT OF waTEr

SECTOr iN ViET Nam

1 Ensn eqte te sl nsntton (n n l)

Current Status – Urban Water Supply & Sanitation

While over 14 million people (about 62% o the 22.5 million urbanpopulation)haveaccesstocleanwater,around8.5milliondonot.Forthosethatdohaveacleanwatersupply,thecurrentstandardoserviceispoor.TeGovernmentistryingtoprovideecientwatersupplyservicestomeettheneedsoaboomingurbanpopulationandindustries;andhaveissuednewdecreesonurbanwatersupplyanddrainageproviding

astrongplatormorreorm.However,problemsremain,assanitationservices remain inadequate across the country, unding o majorinrastructureprojectsisbeyondGovernmentcapacity,andtheProvincialPeoplesCommittees’otensetwatertarisatratesthatcannotsustainaviablebusinessmodelandtieoperationstodecisionmakingheavilyburdenedbygovernmentprocesses.

In2006,yearlyurbanpopulationgrowthwas2.18%comparedto0.93%inruralareas,withtheurbanpopulationbeingestimatedtoreachmorethan30millionby2010.In2005,theaverageurbanwatersupplywasabout80-90litersperpersonperday;andinlargecities120-130litersperpersonperday.However,Governmentobjectivesaretoensurethat100%otheurbanpopulationhasaccesstocleanwatero120-150liters

perpersonperdayby2020,whichwillrequirebillionsoVNDworthoinvestment.

Current Status – Rural Water Supply & Sanitation

Increased coverage o rural water supply and sanitation (RWSS) is acrucialpartotheghtagainstpoverty.Accesstowaterandsanitationismainly aproblemo the ruralpoor inVietNam.In 2005,over60millionpeoplelivedinruralareas.Othepoorest20%opeople,only22%haveaccesstocleanwatercomparedto78%ortherichest20%.Forsanitation,thepoorest20%onlyhave2%accesscomparedtoanaccesslevelorthericho20%.

Inruralwatersupplyandsanitation,21millionpeopledonothaveaccesstoa“hygienic”watersupply,and41peoplemilliondonothaveasupplythatmeets“clean”waterstandards(MoHstandards).Furthermore,thevastmajorityorural peopledonothaveaccesstoahygieniclatrine.However,despitethesestarkchallenges,RWSSNationalargetProgram(NP)IIisnowunderwaywithstronginternationalsupport.Itreectstheneedoragreaterocusonsanitationandhygiene,theneedorbettertargetingo subsidies orthepoor,greateremphasison sustainability,improvedoperationandmaintenance and urther decentralization oimplementation. Itis starting todeliverarbetter results, and anewmorecooperativeandintegratedapproach,increasingly“bottomup”,isbeingdeveloped.Asaresult,NPIIdeservesargreaterlevelsosupport.

he ollowing section sum-marises the status o the

main sub-sectors – water supplyand sanitation, natural hazards,navigation, industry and cratvillages, hydropower, irrigationand sheries and aquaculture.For each o these, the currentstatus and the major issues aredescribed. We then look at howthe water sector is managed.

I n Viet Nam, at this stage o its socio-economic develop-

ment, water supply and sanita-tion have traditionally been seenas “social” issues. In developed

countries, urban water supplyand sanitation are more likelyto be regarded in much the sameway as other utility unctions – gas, electricity, telecommunica-tions, etc.



8

Current Status – Urban wastewater

treatment

Elevenoutothe16basinshavenodomesticwastewatertreatment. Sixtypercento hospitalshavewastewatertreatment plants but only 18% are properly operatedand most wastewater rom hospitals is dischargeddirectlyintopublicseweragesystems.Factoriesinurban

areasalsodonottreatwastewaterandthisisdischargeddirectlyintothepublicseweragesystems.Urbanareasmayimposewatersanitationeesbuthistoricallythesehavebeenheavilyconstrained.Arecentdecreeprovidesastrongbasisorthecomprehensivereormotheurbansanitationsub-sectoronasustainablebasis.

Major issues

Major urban and rural water supply and sanitationissuesareasollows.However,recentlegalchangesorurbanwatersupplyandsanitation(Decrees117/2007

and 88/2007) should provide a basis to overcome anumberothese:

• How to achieve the NP II targets by 2010, particularly ensuring that consumers can providea greater proportion o the unding in a sociallyacceptable way.

• Te poor standard o service o urban water supplycompanies and their eciency.

• Urban water supply inrastructure is not keeping pace with economic development, and urbansewerage and drainage inrastructure seriouslylags behind.

• owns under district control appear to have much

less access to basic water services.

• Te urban water tari has not been aligned tobusiness needs and has not covered costs.

• Collected wastewater ees are not returned to theservice provider.

• Tere have been no clear mechanisms ordetermining the price o assets, nor consistentregulations on asset management.

• Poor and inconsistent policies and unclearorganisational arrangements.

• Te over-exploitation and pollution o groundwater.

• Dealing with the disposal o solid wastes.

• Capacity building, particularly or sanitationservice provision.



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2 mnn foos n ntl zs

Current Status

Indealingwiththeeectsonaturalhazardsanddisasterstwoaspectsneed to be considered. One is the response when disasters happen,

andthelonghistoryodealingwithdevastatingstormshascreatedastrongnetworkandcultureo responseatalllevels.Tesecondaspectistheworkundertakenbetweendisasters,indevelopinganapproachtobetterdealwithuturenaturalhazards,i.e.howtostopthembecomingdisasters,andtoprotectcommunitiesromtheireects.

However,todateinVietNamthissecondaspecthasbeenbasedonastrong traditional structural approachto naturalhazards,particularlythrough dyke construction, which cannot always be implementedcomprehensively.Structuralmeasuresalonearenoteectiveorsomeareas,suchasCentralVietNam,wheremanypeopledieeachyear.Forexample,ashooding,whichkillsnearly50peopleayear,isextremelydiculttodealwithanddependsmoreonlandusemanagement,warningandcommunitypreparedness,thanonanypossiblestructuralmeasure.

VietNamneeds todevelop ar strongermeasuresor the applicationo a wider range o non-structural options. An integrated approachto hazard riskmanagement should involve both structural and non-structural measures across sectors, and, working closely with theprovinces,planningordisastersusingCommunity-BasedDisasterRiskManagement(CBDRM)approaches.Onesuccessulexampleisarecentprojectindisaster-proneQuangNgaiProvince(raKhucBasin)whichhas demonstrated the benets o this approach. Furthermore, thereisnow anurgentneed toensure sucientresourcesarededicated todealingwithnaturalhazards.

As economic development progresses, greaterattentionmustbepaidtothelong-termstabilityocoastalareassubjectedtonaturaldisasters.Te impact o vegetation removal, in particular mangrove removal,is well known. Extensive river sand extraction to support economicdevelopmentisalsoreducingthenaturalprocessesosandsupplytothecoastandtherebydecreasingthecapacityocoastlinestoresisterosionorces.Climatechangewillonlyintensiytheimpactsonaturaldisastersandocusmoreattentionontheneedormorenon-structuralsolutions.

Major Issues

Majornaturalhazardissuesinclude:

• Lack o dedicated resources.

• Te importance o, and lack o progress with, non-structuralresponses .

• Greater levels o warning and community preparedness.

• Greater use o food storage in reservoirs.

• Te integrity and saety o structural works.

• Land use planning having a key role in disaster vulnerability.

• Better coastal zone management.

V iet Nam is one o the mosthazard-prone countries in

the world, as set out earlier in

this report. Climate Change isset to make these problems evenworse, with Viet Nam being oneo the top ve countries in theworld most likely to be directlyaected by changes to sea levels,more requent and intense ty-

phoons, plus increased fooding and storm surges.



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• Te eects o extensive river sand extractionreducing the natural processes o sand supply tothe coast.

• Preparedness or extreme risks.

• Diculty in dealing with fash foods.

• Institutional modes or disaster management.

• Greater adoption o Community-Based DisasterRisk Management (CBDRM).

• Climate Change: managing the risks o hazardsalso helps to manage the worsening risks due toclimate change.



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3 povn o econoc eveloent

Current status – industry

Industrial activities are expected to account or over 45% o

national GDP by 2010. Indeed, industrial sector GDP doubled

between2002and2006,andmanuacturingaccountsoraround

84%oindustrialoutputvalue.By2007,therewere154industrialparksandexportprocessingzonesnationally,approximatelytwo-

thirdsowhicharelocatedintheRed–TaiBinh,DongNaiand

SERCbasins.By2010,itisexpectedthat35%oallmanuacturing

enterprises will be located within industrial estates, mostly in

SouthernVietNam.

Industrygeneratessignicantdemandorgroundwater.By2015,

industrial water use will more than double with the greatest

increasesprojectedortheRed,theDongNai,SERC,CuuLong,

andTuBon&VuGiabasins.

Despitetherelativelylargeandincreasingnumberoindustrialestates,thereareonly43centralisedwastewatertreatmentplants.

Almosthalothenon-stateownedenterprisesarelocatedoutside

o industrial zones, presumably with little or no wastewater

treatment.Itisestimatedthatin2006therewere2,803industrial

enterprisesnationally, dischargingabout155millionm3ayear

owastewater-or850,000m3aday.Tisrepresentsabout340

Olympic-sized swimming pools o untreated wastewater being

discharged every day across Viet Nam, but in concentrated

locations.

Many industrialestablishmentscomeunderdirectGovernment

control.Testatesectorcontributesapproximately40%oVietNam’s GDP.Many lineministries are owners and managers o

industries whichare among themost polluting in the country.

echnologicalrenovation inVietNamisatamuch slower pace

thaninmanyneighbouringcountries.

PlanshavebeenapprovedbythePrimeMinister(Decision64/2003)

to tackle environmental pollutionby industrial establishments.

However, by the endo Stage 1 only around 63%o the listed

black spots have been resolved. Prime Ministerial Decree No.

67/2003seekstousepollutionchargestolimittheenvironmental

pollutioncausedbywastewater,tousecleanwatereconomically

andtocreateaundingsourceortheEnvironmentalProtection

Fund.However,atpresent,eesarenotbeinguniormlyapplied

andnotallprovincesparticipate.

Current status – Craft villages

Te crat village industry has witnessed phenomenal growth,

especiallyintheRed–TaiBinhbasin,where60%ocratindustries

arelocated.Cratvillagesareseenasanimportantmeasureor

promoting economicdevelopment inrural areas,where 75% o

VietNam’spopulationstillreside.Averageincomepercapitain

cratvillagesisuptovetimeshigherthaninvillagesdevotedto

agriculture.By2002,thenumberocratvillageswasassessedat

Across the country, industrialexpansion is providing ma-

jor economic and social benetsto many. However, it is also hav-

ing major impacts on the qualityo people’s living environment

– water quality is polluted and wildlie and natural areas, suchas wetlands, are being dimin-ished or lost. Te rapid develop-ment o crat villages has alsocontributed to this problem. Viet Nam has yet to ully reconcilethe trade o between develop-ment that will yield short term

benets but at enormous long term costs, and more sustain-able models o economic devel-opment. Some Government ini-tiatives have been undertaken,but in many cases the impacts o industrial and crat village pol-lution are extreme and are onlylikely to get worse over the com-ing years.



12

over2,000,providingmorethan10millionjobsor

29%otheruralworkorce.Anestimated40,500

enterprises are located in crat villages, around

80%othosebeingamilybusinesseswith1to3

employees.

However, crat villages are seemingly victims o

theirown success,with high occupational health

riskandexposuretopollution.Almostallvillagehouseholds use their houses and gardens as

productionsites,meaningthatwasteisdischarged

directly into the surrounding environment.Tis

directly aects surace water and groundwater,

impacting onthe drinkingwater or thevillages.

Waterpollutionromcratvillagesisaseriousand

growingproblem.

Major issues - industry and craft villages

Major industrial and crat village issues are asollows:

• Industry is growing rapidly with major impacts onwater.

• Industry is concentrated which createsenvironmental problems, but also opportunitiesin terms o a more ocused management approach.

• Populations are growing and concentrating around industrial areas.

• Industrial pollution will continue to increase asindustry grows.

• Te toxicity and complexity o pollution willincrease as industry grows.

•

Incomplete application o Decision 64.

• Te production at crat villages is causing seriousenvironmental pollution.

• Te environmental perormance o StateEnterprises is poor.

• Lack o water use and wastewater dischargemonitoring.

• Environmental protection processes are inadequateto deal with the booming development.

•

Poor application o the environmental protection ee.

• Lack o enorcement and inspectorate.



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Current status – Hydropower

Tehydropowersub-sectorisonewhichwillhave

amajorimpactonwaterresourcesinmanyriver

basins. Over recent years the development o

hydropowerhasbeengrowingrapidlyandthisis

settocontinuetomeetenergytargets.Telatest

masterplanorpower,MasterPlanVI,seeksto

satisyelectricitydemandsrom2006–2015,withanoutlookto 2025.It provides or the building

oabout26morereservoirs,someowhichare

underconstruction.Teunitcostohydropower

ismuchlessthanothertypesopowergeneration

inVietNam.

From 1995 to 2005, the capacity or electricity

production almost tripled: however, this is still

insucienttomeetdemand.By2010,hydropower

will provide 42% o the nation’s total power

capacity. Hydropower in the Red-Tai Binh and

Dong Nai systems accounts or more than 50%

o the nation’s internal hydropower capacity.

Small hydropower generating acilities account

or11%.However,itshouldbenotedthat“small”

hydropowerdoesnotimplythattheimpactona

riverwillbesmall–manyotheseschemeshave

largeimpacts.

Majorincreasesinhydropowerareplannedorthe

uture,mostlyintheRed-TaiBinhbasin,which

will increase capacity more than ourold. Te

SERC will contribute almost 16% o all internalhydropowercapacityintheuture,withaninter-

basintranserromtheDongNai.By2010,about

50% o the technical and economic potential

hydropowercapacityacrossthecountrywillhave

been developed. By 2025, this is expected to

increase to 83%, an extremely high proportion

by international comparisons, particularly given

VietNam’srelativelysmallhydropowerpotential.

Tisprojectedlevelodevelopmentwillputgreat

pressureonriverbasins.

Cooperationwith other countries isessential ormeetingenergydemandorecasts,andhydropower

developments in Lao, Cambodia and China

are expected to contribute substantially. Viet

Nam isexpected to importalmost 6,000MWo

hydropowerby2025.

TeGovernment’senergyreormagendaisslowly

transormingtheunctionoGovernmentromone

oanoperatortothatoaregulator,astheprivate

sector increasingly becomes involved in energy

supply. Because these reorms are predicated onmarketmechanisms,astrongregulatoryramework

needstobecreatedwithclear,wellcommunicated

processesandrulesthatapplytobothgovernment

andnon-governmentoperators.

UnortunatelyinVietNam,thenatureoimportant

parts othewater sectorarenotyetup to what

will be required – EIA processes are weak, clear

andunambiguouswaterrightsarenotestablished

providingapoorbasisorbusinessinvestment,the

waterneedsoallusershaveyettobeadequatelyconsidered,especiallyortheneedsolowerriver

communities, environmental water requirements

need to be established and put in place, etc. A

cautious approach would appear to be advisable

toavoidanypotentialcompensatoryclaimsinthe

uture.

Major issues - Hydropower

Majorhydropowerissuesareasollows:

• Integrated management and coordination betweenthe hydropower and other sectors.

• Multi-purpose use o reservoirs and regulatorycontrols.

• International cooperation.

• Te need or ull assessment o the ability o a riverbasin to provide the necessary water volumes withno or limited detriment to other water users and uses.

• Inter-basin water transers, particularly out o theDong Nai, which is already highly stressed.

• Lack o consideration o down river fows inreservoir design and operation.

• Regulatory environment, especially with moreinvolvement o the private sector.

• Promotion o small hydropower projects with no,or limited, impact asessment.

• Social impacts and environmental impacts are not properly recognised.

• Benet sharing recognized concepts need to beembraced.

• Participatory mechanisms.

• Awareness o the impacts o hydropower and theimpact mitigation options.



14



15

Current status – Waterway navigation

Waterway navigation is oten the orgotten part

othewatersector.Itsneedsarenotconsideredin

waterdecision-makingandareotencompromised

by other decisions, such as bridge building.However, the uture o the sub-sector should be

determinedbyeconomics–towhatextentcanthe

sub-sectorprovidetransportnavigationservicesat

costrecoverylevelsthatareeconomicallyattractive

tobusinesses.

In2006,thetransportocargooninlandwaterways

accounted or almost 20% o the total cargo

transported, and passenger transport was about

13%othetotal.Inlandwaterwaytransportislow

costrelativetoothertransportmodes,anditcan

carryoversizedcargolongdistances;however,itisslower,weather-dependentanddoesnotprovidea

doortodoorservice.

Tere are many environmental impacts rom

navigationactivities,suchasoilspills.Terewere

223accidentsoninlandwaterwaysin2006,mostly

intheRed–TaiBinhbasin,whichresultedinthe

sinkingo195vessels,213deaths,and14injuries.

Major issues - Waterway navigation

Majornavigationissuesareasollows:

• I ntegrated management and coordination withother sub-sectors.

• Low level o awareness and investment romwithin Government and the community.

• International cooperation in shared rivers.

• Navigation obstacles and barriers on many rivers.

• Impacts o dredging and sand exploitation.

• Impacts o aquaculture developments.

• Environmental impacts o navigation activities.

• Management, capacity and nancing shortcomings.



16



17

4 Sstnn clte n qclte

Current status - irrigation

oday, the irrigationsupply is inecient, its inrastructureis oldanddilapidated,anditistotallyreliantonstatebudgetsandODAtokeepthesystemsgoing.Atcurrentundinglevels,withirrigationwaternowbeingreeocharge,anddespitesomeODArehabilitation,allsystemsare

progressivelydeterioratingandsomewilleventuallybenon-viable,eitherpartially or ully. Despite somesuccesses, armers stillhave relativelylittlesayinsystemmanagement,andthereislittleincentiveorthemtogetinvolved.

Te irrigation systems are set up or paddy rice,withwater suppliedbytheIrrigationManagementCompanies(IMCs)tomeetthesewaterrequirements.Assupplyistopdownorpaddyriceratherthanarmerdriven,cropdiversicationisdicult.WhileirrigationreormwillalwaysproveadilemmaortheGovernment,giventheruralpovertysituation,harddecisionswillneedtobetakenontheextenttowhichmajorreormscan be embraced over time to create an innovative and progressive

irrigationsector.

Tesectorisprojectedtocontinuetogrowatamodestrate.IrrigationremainsthelargestuserowaterandtheCuuLongandRed–TaiBinhbasinsaccountoralmost70%otheuse.TeCuuLonghasthegreatestirrigationwater use per capita atover1,600m3 per person per year.Mostbasinshaveagureomuchlessthan1,000m3perpersonperyear.Paddyeldriceaccountsor82%otheirrigatedarea.Terelativelystronggrowthinproductionoverthepast14yearshasresultedlargelyromaprocessointensication-therehasbeenlittleinvestmentinnewirrigationcapacityorintherehabilitationoacilities.

Inmostriverbasins,theagriculturalsector’scontributiontoGDPhas

dropped rom 80-90% to 30-50%, although it remains a signicanteconomicactivity,andisnotdeclining.

Agriculturalchemicalsareusedbyahighproportionothepopulationandonextensivelandareas.TeWSRreportedonastudyonchemicalusewhichoundthatmostpesticidesusedwereohightoxicity,levelsoexposurewereunnecessarilyhigh,costsochemicalusewerehigh,buttheireciencywaslow.Mostarmershadlittleawarenessoproperpesticideuseandmanyweresueringrompesticidepoisoningproblemsasaresult.

Untilveryrecently,individualarmerspaid‘irrigationserviceees’(ISF)tocoveratleastaproportionotheoperationandmaintenancecosts

associatedwith irrigationwaterdeliverybybothIMCsandWaterUser Associations (WUA). Although not adequate to meet operation andmaintenancerequirements,theseeesprovidedasubstantialproportionothebudgetorIMCs.In2008,thiseewasessentiallyabolished.

Major issues - irrigation

Majorirrigationissuesareasollows:

• Eciency o irrigation water supply and use.

• Old and deteriorating hydraulic works, on which irrigation depends.

•Lack o nancing or irrigation management.

Strong irrigation develop-ment over many years has

ensured ood security and hasturned Viet Nam into a majorexporter o rice. Water supply

or growing paddy rice is at thevery core o most rural commu-nities. As such, irrigation man-

agement is steeped in traditionand is now in eect a means o providing social services to mostrural people.



18

• Water quality in ood production.

• Excessive use o ertilizers and pesticides.

• Multi-purpose use o irrigation reservoirs.

• Institutional, legal and policy rameworks.

• State management o irrigation.

• Irrigation scheme management.

• Irrigation management capacity.

Current status - aquaculture

Tesheriessectorprovidesabouthalothesupplyoanimalproteintothehumandiet.otalearningsmakeit the third most important export-oriented sector.More thanthreemillion people aredirectlyemployedandnearly10%othepopulationderiveitsmainincomeromsheries.

Aquaculture has grown signicantly in recent years,where the reshwater sub-sector remains dominantat approximately 65-70%.Most shermen and thoseinvolved in aquaculture are small-scale producers– 77% o households conducting aquaculture havepond areas o under 0.1 ha. More recently somecooperativeshavebeenestablished.Tebiggestsourceoshing andaquacultureincomeis generatedwithinthe Mekong Delta, where between 60% and 70% ohouseholdsareinvolvedinsomeormoaquaculture,involvingemploymentoover600,000workers.Shrimpaquacultureaccountsormorethanhalothis.

Tevalueoproductionoaquacultureinriverbasinsvaries considerably – rom 15,300 VND/m3 o waterusedintheKonebasin,toalowo3,800VND/m3owaterusedintheCuuLong.

TenumberoStateFisheryEnterprises(SFEs)inthesector has decreased steadily but remains signicant.Mostcoastalprovincesownoneormorestateenterprisesinthesheriessector.SFEsarecharacterisedashaving

loweciencyandareotenunprotable.Teemergenceo ood saety requirements as barriers to accessinginternational markets is signicantly re-shaping theindustrystructure.

Whiletherearemanywaterrelatedthreatsarisingromactivitieswithinthesheriessub-sector,itisaquacultureandthesheriesprocessingindustriesthatcontributeto signicantwater sourcedegradation throughwateruseandpollution.

Major issues

Majorsheriesandaquacultureissuesareasollows:

• Water quality and pollution rom sheries processing.

• Water quality and pollution rom aquaculture.

• Poor water quality poses a threat to aquaculture.

• Loss o mangrove orests.

• Te perormance o the State Fisheries Enterprises.

• Inormation, research and capacity building.



19

SECTOr maNagEmENT

– adOpTiNg aN iwrm

apprOaCh

hereis oten aperception that “water”is avitalpublicresourceandanessentialcomponentolieorpeople,andthereorecannotbetreatedlikeotherutilitiessuchaselectricityorgas.Asaresult,essentialreormsrequiredinthewatersectorotenlagwellbehindthoseootherutilityareas.

Riverbasinplanningisanexample.TevariousplanssoarpreparedortheDongNaibasinhavenotpreventedthisriver,vitalinprovidingwaterandelectricitytoVietNam’seconomichub,rombecomingoneothe

mosthighlystressedandpollutedinthecountry.Tecurrentdemandsplacedonthisriverbasinarealreadycausingwatershortagesandstress;whileuturedemandsarelikelytobeevengreater.

ItisthereoreapparentthatpastapproachestoriverbasinplanninginVietNamhavenotbeeneective,andthatnewIWRMplanningapproachesareurgentlyrequired.However,intermsotheeectiveadoption and implementation o IWRM approaches, a number ochallengesarebeingaced:

• Availability o reliable data and inormation is lacking. Whilst someinitial steps have been taken to improve the situation, this is still oneo the most serious issues hindering eective decision making.

• Rights to water are not dened and, although licensing is underway,it lacks ocus and adequate resources.

• Water quality management eorts are not eective, with serious pollution increasing in many urban/industrial centres, posing a growing threat to human health. In the immediate uture the pollution levels will only get worse.

• Environmental protection provisions are inadequate, and cannotkeep pace with economic development.

• Policy positions are oten unclear on a number o issues, which arenecessary to ensure eective IWRM.

• Awareness o water issues throughout all levels o Governmentand within the broader community is poor, and capacity to take IWRM initiatives is poor.

Te Government o Viet Nam is supported in the planning andmanagement o the water sector by its International DevelopmentPartners (IDPs),who provide enormous support to the water sector.However,it isclearthatmanyIDPs,anumberowhomaresignicantdonors, continue to act in isolation rom one another, oten leadingtoduplicationandoverlaps,whereastheadoptionoamorecommonstrategicapproachby the IDPs - working togethermore regularly onprojectstomeetcommonobjectives–wouldbemuchmorebenecial.

MuchODAsupportremainsocussedonthetraditionalwatersectorareas.Currentinternationalinvestmentsreectastrongdevelopmentocuswith

Many o the issues cur-rently acing the sector

were identiied in the irst Wa-ter Sector Review carried out adecade ago. Current water sec-tor management is dominated by traditional water manage-

ment approaches, rather thanmore progressive Integrated Water Resources Management(IWRM) approaches, which arestill very much in their inancyin Viet Nam.



20

anemphasis on inrastructure.Whilst theneed or andlevelosupportortheseprojectsmaybeappropriateandnecessary,many other equally important areasowatersectormanagementreceivenegligiblesupport,andthelackoinvestmentinsomeothenecessarytoolsoIWRMisstriking.InvestmentinthesetoolsisessentialithewatersectorinVietNamistooperateonasustainablebasis.

Many o these IWRM issues, which have beenapparent or some time, could be addressed throughmoreproactiveactionandsupporton the partotheGovernmentandIDPs.



21

iSSuES aNd OpTiONS

FOr ThE FuTurE

Havingexaminedthecurrentstatusothevarioussub-sectorstogether

withsomeothemajorissuesacingeachone,thissectionoutlinessomeothecross-cuttingissuesacingtheWaterSectorinVietNamasawhole.

Institutional and legal arrangements. Tereareanumberogreyareasintermsolegalandinstitutionalarrangements.Attimes,lawsappeartoconict,andthisneedstobeaddressedinthecurrentreviewotheLawonWaterResources(LWR).Terolesodierentinstitutionsarenotclearlyunderstoodleadingtoconusionandattimesconictingmessages to stakeholders. Tis applies generally to the relationshipbetweenMinistriesandDepartmentsandProvinces,aswellastothehierarchyoLawsgoverningtheactivitiesoboththepublicandprivateparticipants. Tere is also considerable work required to properly

implement institutional arrangements based on the separation oresourcemanager/regulatorromtheoperators.

International cooperation. More than 60% o surace water isgeneratedoutsidethecountry.Nearly57%othetotalwaterisintheCuuLongbasinandothat95%comesromtheMekongRiver.Inthiscontext,theintensivehydropowerdevelopmentthatisoccurringinothercountriesintheMekongRegionshouldbeomajorconcerntoVietNam.ItisinVietNam’sinteresttoensurethattheprovisionsotheMekongRiverCommission’sProceduresorNotication,PriorConsultationand Agreement under the 1996 Mekong Agreement are closely ollowed. Aurther16%oVietNam’stotalwaterisoundintheRed-TaiBinh

basinand40%othiscomesromChina.Chinaisalsoplanningmanyhydropowerprojects,butthereislittleconsultationwithVietNamontheseproposalsortheirimpactsonthecountry’swaterresources.

Conficting/uncoordinated uses. Tere is little planning orcoordinationbetweenthesectors,whichleadstounintended,uncostedandunmitigatedimpactsoonesectoronanother.

Inter-reservoir operation rules. TeNWRSoundthatmanyreservoirshave been designedwithout proper consideration o the adequacy odownstreamows,leadingtoseveredepletionoowsandincreasing

saltintrusion,andreducingtheaccesstogoodwaterortheresidentslivinginthelowerreachesorivers.Mostprojectsorwaterresourcesexploitationandusehavebeendesignedtoserveoneparticularpurpose,withcombineduses,iany,notplanned.Foranumberoriverbasinsacomplicatedsystemodamsandreservoirsalongriversandtributarieshavebeendevelopingmakingitverydiculttomanageowsandensureminimumowsaremaintained.Presently,insomeriverbasins,inter-reservoiroperation rules have been developed or ood control only,withnorulesdevelopedtoregulateowsinthedryseason,resultingininappropriatewateruse,conicts,degradedanddried-uprivers.

In order to ensure minimum levels, ood protection and access to

waterduringdryseasons,reservoiroperationrulesneedtobeurgently

Anumber o generic cross-cut-ting issues have been identi-

ed which are posing challenges

across all o the water sub-sectors,as well as to the water sector itsel.Unless there are moves to address

some or all o these undamentalissues, it is unlikely that the myr-iad issues acing the water sectorand its sub-sectors will be able tobe speedily and easily resolved -to the detriment o the economic,environmental and social develop-

ment o the country.



22

established.Tesewillalsobenecessaryinmanycasestoensurewaterallocationandsharingplansareoptimallyimplementedinmanybasins.

River Basin Coordination. Viet Nam has ound itdiculttoembracethisapproachinameaningulandpracticalway.Asaresult,Governmentimplementationothenewriverbasinmanagementdecree(120/2008)

iscritical.

Water Sharing Policies. Te lack o water sharingpolicies atariverbasinscaleisbecomingincreasinglyproblematic. Tere is serious competition betweensectorsordryseasonowsinsomeareas,andorthecompetingenvironmental, social andeconomicvaluesthatrelyonnaturalrivers.Limitstotheamountowaterthatcanbeextractedhavenotbeenestablishedandnewextractionscantakeplaceatanytime.Waterrightsarenotdenedandthereisnocertaintyorthesectors,ororprivateinvestment,asaresult,theriskstoexistingdevelopment are unknown. Tis in itsel is likely tolead to inecient and unsustainable investment anddevelopment.

Impact assessment o projects. Currently theassessment o the water resource and environmentalimpactsoprojectsispoor.Othersectoralinterests,andtheimpactsonowsandotherwateruses,arenotullyconsideredintheprocessrominception.

Regulatory environments. Te private sector is

becoming increasingly involved in all sectors, and theGovernmentwillslowlytransormitsunctionsromoneooperatortothatoregulator.oprovideorthis,astrongregulatory environment, with clear, well communicatedprocesses and rules that apply toboth governmentandnon-government operators, is required. At this stage,this regulatory ramework is not in place - roles andunctionsareotenunclearandappearconicting,thereareewenvironmentalsaeguardsbuiltintosectorpolicies,laws, and supporting documents, and monitoring andcomplianceactivitiesarelargelyabsent.Clearwaterrightsarenotinplace.

Perormance o the State Enterprises. TeperormanceotheStateEnterprises isamajorissue.Ontheonehand,someSOEsneedargreaterautonomyrom government intererence to be provided withbusinessexibilitywithina regulatoryrameworkthatprotectscommunities,customersandtheenvironment.However, other SOEs are involved in productionactivitiesoacommercialnaturegenerallyundertakenbytheprivatesector.ypicallytheseSOEsareinecientoperatorswithaverypoorenvironmentalperormance.Sadly,manyo theworstpolluters inthe country are

Government-owned.

Water licensing. Tereislittlemeaningulcoverageowaterlicensingin accordancewiththeLWR.Currentlylicensingisseenasanendinitsel,ratherthanatoolto achieve water resource management, sharing andprotectionobjectives andoutcomes.Tere isa lackoacceptanceotheneedorlicensingbymostsectors.Itisnotonlythecentralandprovincialgovernments,butalsotheIDPs,thatarenotawareo,orailtorecognizethe

importanceo,licensingowaterresourceexploitationanduse,andowastewaterdischarge.

Participation. Viet Nam, aided by the internationalcommunity,isonlynowtentativelytestingparticipatoryapproaches.Asignicantculturalshitwillberequired,bothwithingovernmentandoutside,itheseapproachesare to succeed and the benets to the sectors andcommunitiesaretoberealised.

Capacity and awareness. Awareness o waterresource management issues, and water sub-sectorissues, their interaction with other sub-sectors,and the regulatory environment, is decient in theGovernment, Ministries, and provincial governmentsand departments.Te agencies themselves have littleunderstanding o, or practical training in, integratedapproaches to resource allocation, development andprotection. As the governmentrole slowly changes tooneoplannerandregulator,adierentskillsetwillberequired within Government agencies, both centrallyandattheprovinciallevel.Capacitybuildingisurgentlyrequired, and potentially a re-distribution o humanresources.

Financing. Water and water servicesare currently wellunder-pricedinVietNamand thewatersectorgenerallyhas survived on subsidies and ODA. Furthermore, thepricing policy isneither ecient nor equitable and hasled to a dearth o nancial resources or inrastructuremanagement.Tereore, more investment in the watersectormust recognize that waterpricing is anessentialinstrumenttoenhancethesustainabilityotheresource,meetoperationandmaintenancecosts, expandservices,maintain water resources management unctions, etc.Most improvementsinthewaterrelatedsectorswillnotoccurigovernmentsdonotconsiderdevelopingsociallyacceptablepricingandtaripolicies.Tisissuemustalsorecognizethatinanumberosituations,ullcostrecoverymaynotbe achievableatallduetosocialconsiderationsor because o previous inecient decisions on capitalinrastructure. However, such costs should be clearlyagreedanddisclosedasatransparentsubsidy.

Improvement in basic survey and inormation.Good inormation, reely available and reliable, isparamount; yet it is probably one o the greatest

problems or IWRM in the immediate uture in VietNam.Currently, there is no accurate source o waterresourcesdataandinormation.Littledataisavailable,



23

exceptperhapsorsuracewaterquantity.Te currentobservationnetwork,mainly orsuracewater,hassoaronlybeenusedortheconstructionoirrigationandotherreservoirsandworks,andoodprotectionworks.Tereisnocomprehensiveinventoryandassessmentowaterresourceswhichalldecisionmakerscanuse.Dataandinormation,obtainedwithstateunding,isotentreatedasaneconomicgood.oolsormakingdecisionsinadata-poorenvironmentareurgentlyrequired.

Climate change.Teprojectedimpactsoclimatechange–moreintensiverainallrunointhewetseason,andsealevelrise–areograveconcernandtheGovernmenthasrecentlyapprovedaNPonthismatter.



24



25

ThE way ahEad

wte Secto reo n potes

t to intete wte resocesmneent (iwrm)

Te WSR contains more than 150 detailed recommendations,

whicharegroupedintovemajoroutputs(seegureopposite),

sothatthestructureothesectorandtherangeooutputscanbe

understoodandassessedinasimpleandlogicalway.

ogether,theactivitiesundertheseveoutputgroupsareintended

toachievetheoverallgoalorthewatersector:

To manage, use and protect the water resources of Viet Namin an integrated and comprehensive manner to ensure thateconomic growth, poverty reduction, environmental healthand the quality of life are sustainable in accordance with the goals of the Government.

The immediate priorities of the WSR are as follows.

• Output Group 1: Te system o legislation, policies, and strategieson water resources developed

TisOutputGroupisaboutsettingtherameworkorIWRM

atthenationallevel.Withinthisramework,provincesandothers (e.g. Ministries, provincial planners, river basin

organisations)canmakedecisionsattheirregionalorlocal

levelthatareconsistentwiththekeydirectionsandpolicies

o the Government. Without this ramework, decisions

andmanagementwillbead-hocwithdierentministries/

provinces applying dierentpolicypositionstodealwith

thesameissue.

Teimmediateprioritiesare:(i)revisingtheLawonWater

Resources;(ii)establishing strongerarrangements orthe

operation o the National Water Resources Council; (iii)

preparingthestrategicplantoimplementtheGovernment’sNational Water Resources Strategy; (iv) developing a

legalbasisandimplementationrameworkorriverbasin

management to achieve IWRM; (v) developing processes

and methodologies or determining the “real potential”

o water sources as a basis or sustainablemanagement;

(vi) developing a water rights and sharing ramework;

(vii) developing an environmental ows ramework

and methodology; (viii) developing a national policy on

water sector nancing; (ix) strengthening institutional

arrangementsorurbanwaterservicedeliveryandnatural

disastermanagement;and(x)strengtheninginternationalrelationsorwatermanagement.

he Water Sector ReviewProject has set out a

comprehensive programme o activities and actions or watersector reorm. Te overall aimhas been to design a package o measures that would start Viet

Nam on a pathway towards IWRM and make signicant

achievements over a 5 to 10 yeartimerame.



26

• Output Group 2: Improve the social environmentand living conditions or vulnerable people,especially the poor (including social empowerment)

TisOutputGroupcoverstheundamental

Governmentinitiativeorimprovinghealth,

living conditions and opportunities o the

ruralpoorincludingethnicminorities.Italso

coversactivitiesthatminimizetheeectsonaturalhazards,andthatsharethebenets

o major development with the people

directlyaectedbythosedevelopments

Teimmediateprioritiesare:(i)preparinga

strategicapproachtoselectingprioritiesor

pro-poor rural development and irrigation

diversication; (ii) preparing uniorm and

appropriatehealthstandardsorbothwater

supplyandsanitation(ruralandurban);(iii)

greatlystrengtheningtheimplementationo

NPIIorruralwatersupplyandsanitation;(iv) preparingnatural hazardmanagement

plans or the highest priority river basins

(Huong, raKhuc,Tu Bon&Vu Gia and

Kone);and(v)implementingtheconcepto

benetsharingorhydropowerplants.

• Output Group 3: Eective management and sustainable use o water resources

Activities under this Output Group will

provide the ramework within whichdecisions can be taken on how sectors,

businesses, individuals, etc. can take and

use water resources. Tese activities will

workwithintherameworkprovidedunder

Output Group 1. Tese activities are also

aboutthesustainableuseowaterresources

–sothatwhileenvironmentalconsiderations

areactoredin,environmentalhealthitselis

coveredinOutputGroup4.

Teimmediateprioritiesare:(i)development

ointer-reservoiroperationrulesorpriorityriverbasins,startingwiththeRedRiver;(ii)

preparing water sharing component plans

orhighestpriorityriverbasins(DongNai,

Red,TuBonandMa);(iii)preparingaquier

sharing plans or priority groundwater

areas requiring the management o water

extractions(RedRiverdeltaaquier,aquier

around HCMC, central highlands); (iv)

preparingrapidassessmentrameworklevel

plansorareaswithsignicanthydropower

development; (v) reviewing all proposalsor urther reservoir/inter-basin diversion

against agreed ramework and water

sharing plans; (vi) urgently developing

inrastructure orurbanwater supply; (vii)

settingmeaningulwaterpricesandcharges

orwatersupplyandotherserviceprovision;

(viii) reormingwater extraction licensing;

(ix) undertaking a programme to reduce

unaccounted or water inurban areas; and

(x) undertaking a programme to increase

watereciencyinirrigationareas.

• Output Group 4: Water related biodiversityconserved, pollution prevented and environmentalquality improved

Inpractice,OutputGroups3and4needto

worktogethersothatactivitiesinonedonot

unnecessarily compromise activities in the

other.Tewaytoachievethisisthroughthe

variousplanningprocessesparticularlyriver

basinandlanduseplanning.

Te immediate priorities are: (i) preparing

watersourceprotectionplans3ortheDong

Naibasin,includingBaRia-Vungau,andRed

River;(ii)urgentlydevelopinginrastructure

or urban sanitation services; (iii) urgently

developing inrastructure or the treatment

ohospitalwaste;(iv)establishingcommunity

environmentalvaluesandobjectivesasabasis

or water source protection; (v) developing

urtherimplementationguidelinesorDecree

67/2003 and lead capacity building; (vi)reorm o water extraction licensing; and

(vii)provideincentivesorthemoreeective

implementationoDecision64/2003.

• Output Group 5: Institutional capacitystrengthening

Tis isthe ‘enabling’groupooutputs that

will provide the tools, skills and acilities

to make the other outputs happen more

eectively.

Te immediate priorities are: (i) urgently

implementing National water and related

data and inormation management

programmesorbasicsurveyandinventory;

(ii) developing a National water data

and inormation programme or climate

change; (iii) enhancing capacity at all

levels (particularly or provinces) or the

implementation o IWRM approaches; (iv)

strengthening the involvement o armers

3Wherecomponentriverbasinplansareproposedorthesameriverbasinsunderdierentoutputgroups,theyshouldbepreparedtogether.



27

in irrigation scheme decisionmaking; and

(v)implementingwatereducationprograms

careullytargetedtocommunitybehaviour.

Conclsons

TeclearconclusionromthisWaterSector

Review is that undamental changes areurgently required iViet Nam is indeed to

starttomakemeaningulprogresstowards

IWRM, consistent with good international

practice. A signicant cultural shit will

be required, both within and outside o

government, i these approaches are to

succeed and the benets to the sectors,

governments and communities are to be

realized.raditional thinking andpractices

must be transormed and new concepts

embraced.

Te recommendations and the activities

programsetoutwhatisrequirednotonlyto

startVietNamonthepathwaytoIWRM,but

alsototakesignicantstepsalongthepath.

However,itisaveryambitiousprogramand

willrequireanumberoessentialperquisites

orittosucceed:

• Considerable understanding and support

from the Government. Central to this will be theurgent implementation o the recommendation or

greatly strengthening the role o the NWRC and

the establishment o a working structure under

that, to ensure that the key Ministries can work

together on the key recommendations that aect

many Ministries.

• Considerable understanding and support

from the IDPs. Increased resources in key

areas are required or this, not only in new

inrastructure (mostly water and sanitation) but

just as importantly in IWRM – laws, policies, basin planning, water rights, water source protection

and other IWRM tools. IDP input would be greatly

strengthened i it were integrated under a common

ramework based on all or part o the programme

presented in the Final Report o the Water Sector

Review Project.

• Considerable support from the Government

to MoNRE, as the state resource manager.

Without strong and eective leadership, IWRM

will be at best piecemeal and ineective, traditional

approaches will prevail, and most river basins willcontinue on their current downward spiral. Basin

communities will bear the brunt o inaction and

an innitely more serious problem will need to

be resolved in the uture. A signicant injection

o resources will be required and the IDPs should

assist with this.

ItremainsortheGovernment,International

DevelopmentPartnersandotherinterested

partiestodigesttheWSRreport,determine

theirreactiontotheprogramproposedandtoplantheroadmaportheuture.Indoing

this,itmustberecognizedthatsomehard

trade-oswillneedtobemade.Itisunlikely

to be possible to achieve all the measures

and und all sub-sectors according to the

recommendations, and priorities will have

to be set. In apoor country as intensively

exposedtoeconomicgrowthasVietNam,it

willbeachallengetopreciselyidentiyand

resolve the right trade-os. Tis process

shouldbeacooperativeactivitybetweentheGovernmentandtheIDPs.Itisrecommended

that a common program between the

Government and all o the main IDPs be

developed, a detailed implementation plan

prepared,andaprocessorthereviewand

auditoperormanceestablished.

In October 2008, the National Water

ResourcesCouncilheldahighlevelmeeting

to discuss the Drat Final Report o theWater Sector Review Project.Temeeting

was chaired by Deputy Prime Minister

HE Hoang rung Hai, and attended by

Councilmembers andhigh-level delegates

rom theMinistriesandthe International

Development Partners (IDPs). At the

meeting, the Government members and

the IDPs generally accepted the Report

as setting out the water sector situation,

andprovidingthebroadthrustanduture

directionsorwatersectordevelopmentin Viet Nam.Te drat Reportwas accepted

asa basisorthe uturemanagementand

developmentothesector.

Temeeting also agreedthat, toprovide a

concentratedocusanddrivetodealwiththe

criticalchallengesacingthesector,aNational

arget Program (NP) would be prepared.

TeDeputy PrimeMinister agreed to this,

and with assistance rom theNetherlands

Government,andcoordinationbyADB,the

NPiscurrentlyunderpreparation.

27



28



29

appENdix

riVEr baSiN SummariES

The Bang Giang – Ky Cunghasabout1%othenationalwaterresources,withitssuracewatersourcesstillinarelativelynaturalcondition.Tisisduetothe

relativelylowpopulationdensity,theinaccessibilityotheterrain,anditsunsuitabilityorlargescaleirrigationdevelopment.Dryseasonwateravail-

abilityisadequatebyinternationalstandards,butlocalorirregularwatershortagesmayoccur.Ethnicminoritiesmakeupaveryhighproportionoasparsepopulationthatisamongstthepoorestinthecountry,andtheyare

poorlyservicedintermsowatersupplyandsanitation.Tebasinincludesterrestrialandaquaticecosystemsbut,particularlybelow1,000m,showsextensiveorestclearingandseverelyreducedbiodiversity.Teriversothis

basinbothowrom,andto,China,makingitsusceptibletochangesinwa-termanagementacrosstheborder.

The Red - Thai Binh receivesalmost40%oitswaterromChina,soisvulnerable

tochangesinupstreamwatermanagement.Tebasinhasover16%othenation’swater,producesover25%oGDP,andhasabout26%ototalirriga-tionwateruse.Tebasincurrentlyaccountsoraboutaquarterothena-

tion’stotalwateruse.Teirrigationdevelopmentis,however,relativelyine-cientandlowvalue,beingmainlyorpaddyrice.Hydropowerinthebasin

accountsorroughly10%oall2010energyproductioncapacity,and25%othenation’shydropowercapacity.By2025hydropowergeneratingcapacityisprojectedtoincreaseby260%andwillrepresent93%othetechnicaland

economiccapacityothebasin.

Despiteanapparentwaterrichness,thebasinhasathirdotheCountry’s

population,withahighpopulationdensity,andtheannualwateravailabilityper capita islow comparedwith otherparts o the country. Dry season

water availability is considered adequate by international standards, butlocalorirregularwatershortagesmayoccur.Tecurrentdryseasonstresslevelisatthehighendothemoderatestressrange.Under2025projected

populationsandwaterdemands,thebasinwouldbeexperiencingdryseasonwatershortagesandthestresslevelwouldbeinthehighstressrange.

Groundwater is a signicant resource in the basin or urban, rural andindustrialuses.Terearemajorconcernsaboutthesustainabilityocurrent

extractionsinsomeareas,andwaterlevelshavedroppedbyupto30metersinpartsoHanoi.Groundwaterqualityisalsobeingimpactedbylanduseactivities,posingsignicantriskstousers.Tedeltaareasothebasinare

oneotheareaspotentiallymostaectedbysealevelrise.

Tebasinhaslargenumbersopovertyaectedpeople–over6.5million.

Teconcentrationourbanpopulations,largeareaso irrigation,andhighconcentrations o some o the most signicant industrial developments

inthecountry,includingmostcratvillages,areresultinginseriouswaterqualitydeterioration in someareas, bothsuracewater andgroundwater.Giventhemajorurbanpopulationcenters,thebasinisairlywellserviced

intermsowatersupplyandsanitation,exceptintownsunderthecontrolodistrictauthorities.Navigationisimportantinthebasin,particularlyortransportoheavyconstructionandmaterialsthatarediculttotransport

byothermeans.TecoastalzoneotheRedRiverDeltasupportsagreatdiversityowildlie,butwiththehighpopulationandintensiedaquaculture

production,theDeltaismostatriskolosingthenaturalandsemi-natural

wetlandhabitatsandtheessentialunctionstheyprovide.

he ollowing is a summary

o the main ndings o the WSR or each river basin.Te basins can be seen on themap on Page 28 (opposite). Itshould also be remembered that in terms o the data used,

“current” generally means the year 2006.



30

The Ma basinhas30%oitswateroriginatinginLaos.Teba-

sinabout2.5%othenation’swater,producesabout3%oGDP,andhasabout6.5%ototalirrigationwateruse.Teannualwateravailabilitypercapitaislowcomparedwith

otherpartsothecountry.Dryseasonwateravailabilityislessthanthatconsideredadequatebyinternationalstan-

dardsandlocalorirregularwatershortagesoccur.Teba-sinhassignicantissueswithwatersupply,sueringveryhighhydrologicstressassessedintermsoproportiono

owsextractedoruse.Tecurrentdryseasonstresslevelisatthehigh endothehighstressrange. Hydropowergenerating capacity is projected to increase by 650% by

2025,representingover70%othetechnicalandeconomiccapacityothebasin.Under2020projectedpopulationandwaterdemands,inthedryseasonthestresslevelwouldbe

atthe100%stresspoint–thetotaldryseasonwaterwouldbeneededtomeetprojecteddemandseachyear,clearlya

totallyunsustainablelevel.

Tereisalargeamountolowvalueirrigationromairly

inecientschemes.Tebasinhasthehighestproportiono poor households o any basin, and a large ethnic

minoritypopulation,withlowGDPpercapita,andrelativepoorenvironmentalquality. Itis,however,relativelywellservicedintermsowatersupplyandsanitation,exceptin

townsunderthecontrolodistrictauthorities.

The Ca basinhas22%oitswatercomingromLaos.Tebasinhasnearly3%othenation’swater,producesabout3%o

GDP,andhasabout2.5%ototalirrigationwateruse.Cur-rentlythebasinisnotaswaterstressedastheMa,withlessirrigationdevelopment,andthereoreagreatervolumeo

availablewaterpercapita.Hydropowergeneratingcapac-ityisprojectedtoincreaseby133%by2025,representingover77%othetechnicalandeconomiccapacityotheba-

sin.By2020theCawouldbeexperiencingshortagesinthedryseasonanditwouldbeatthehighendothemoderate

stressrange.Alargeproportionohouseholdsremaininpoverty,andthesupplyocleanwateratthedistrictlevelisamongsttheworstinthecountry.Richoreststillcoversa

longstripotheruongSonRange,neartheLaosborder.

The Gianh basin isnaturallyrelativelywaterscarce,butithasarela-tivelylowpopulationdensity,andthewaterresourcesarenot

substantiallydeveloped,sotheavailabilityowaterpercapitaisadequate.Tebasinhasabout1%othenation’swater,pro-ducesabout0.4%oGDP,andhasabout0.1%ototalirrigation

wateruse.By2020waterextractionswouldseethebasinatthelowendothemoderatestressrange.Irrigationdevelopmentinthebasinisoverylowvalueintermsoreturnsperunito

wateruse,comparedtootherbasins.

Tebasinhasahighnumberoimportantspecies,signi-cantconservationareas,andtheowsarelargelyunregu-

latedbydams.Terearealso2WorldHeritageareasinthebasin(PhongNhaandKeBang).Aquaculturehasdevel-opedonthebackotheserelativelynaturalows.Alarge

proportionosubstantiallyruralhouseholdshave,howev-er,beenassessedaslivinginpoverty,andunemployment

ratesarehigh.Provisionocleanwaterservicesispoorin

urbanareascontrolledbyboththeprovinceanddistrictau-thorities,andsanitationservicesareavailableinlessthan

halodistricttownhouseholds.Waterqualityappearsto

havesueredasaresultothis,andperhapsaquaculturepractices.Disastershaveasignicantimpactonthepeopleothebasin,withmorethan12peoplepermillionototal

populationkilledeachyearasaresult.

The Thach Han basin hasabout0.4%othenation’swater,pro-ducesabout3%oGDP,andhasabout0.15%ototalirriga-

tionwateruse.Itisthesmallestinthecountryintermsonaturalwateravailability.Tewaterresourcesarenotverydeveloped,andwhiledryseasonwateravailabilitypercapi-

taisadequatebyinternationalstandards,localorirregularwatershortagesmayoccur.Tiswillworsenby2020,buteventhenwaterextractionswouldseethebasininthelow

stressrange.Giventhelowlevelsodevelopment,GDPpercapita islowcompared tootherbasins. Supply ourban

cleanwateratthedistrictlevelispoor,asisthesupplyocleanwatertoruralhouseholds-thecaseormuchotheCountry.Disasterstakeahugetollonthisbasin,with15

people per million o population killed on average eachyear,anddamagecostsequivalenttomorethan8%othebasinGDPperyear.

The Huong basinhas0.8%othenation’swater,producesabout0.7%oGDP,andhasabout2%ototalirrigationwateruse.Tebasinislargelyunregulatedbymajordamsatpresent

butthreemajorhydropowerdamsareunderconstruction.It has a high number o important native species.Tebasinhasahighpopulationdensity,anddryseasonwater

availability per capita is considered just adequate byinternationalstandards.Teriversare,however,currently

highly stressedin termso the proportion owaterthatisextracted.Currentdryseasonextractionputstheriverintothehighstresscategory,whichinturnwillaectriver

healthandthesocialandeconomicvaluesthatdependon

this.Under2025projectedpopulationandwaterdemands,inthedryseasonthestresslevelwouldbeinthemiddleo

thehigh stress range–almostall othetotaldry seasonwaterwouldbeneededtomeetdemandseachyear.

Tebasinhas arelativelylowGDPper capita, and ranksthe lowest in termso provision o cleanwater to rural

households. Byarthegreatestissue inthebasin istheimpact o natural disasters. On average,more than 36peoplepermillionopopulationdieeachyearasaresulto

naturaldisasters,anddamagecostsareequivalenttoabout6%othebasinGDPperyear.

The Thu Bon & Vu Gia basin hasabout2.5%othenation’swater,producesabout1.5%oGDP,andhasabout2%ototalir-rigationwateruse.Itisrelativelywellendowedwithwater,but thewateruseappearstobe veryinecient,andthe

valueoirrigationproductionpercubicmeterowateruseislow.Inthedryseason,asaresultoextraction,therivers

othebasinarecreepinguptothemoderatestresslevelbyinternationalstandards.Hydropowergeneratingcapacityisprojectedtoincreaseby275%by2025,representingover

88%othetechnicalandeconomiccapacityothebasin.By2020waterextractionswouldseethebasininthemiddleothemoderatestressrange.Again,theimpactsodisasters

onthiscentralprovincesbasinarehigh,with23peopleper

millionopopulationkilledonaverageeachyear,anddam-agecostsequivalenttoabout7%othebasinGDPperyear.Tisbasinalsohashighconservationimportance.



31

The Tra Khuc basinhasarelativesmallcatchmentareaandtotal

availablewaterisquitelimited.Tebasinhasabout1.1%othe nation’swater, produces about 0.8%oGDP,andhasabout1.1%ototalirrigationwateruse.Dryseason

owsaremoderatelystressedbyinternationalstandards.Hydropowergeneratingcapacityisprojectedtoincreaseby 2025, representing over 26% o the technical and

economic capacity o the basin. Under 2025 projectedpopulationsandwaterdemands, in the dryseason the

stresslevelwouldbeinthelowerendothehighstressrange.EthnicminoritiesmakeupahighproportionothepopulationthathasthesecondlowestGDPpercapita

oanybasininthecountry.Tebasinispoorlyservicedintermsowatersupplyandsanitation.Ithassignicantareas o aquaculture development, and consequently

seems tohave signicant water quality problems. Teimpactsodisastersonthisbasinarehigh,with24peoplepermillionopopulationkilledonaverageeachyear,and

damage costsequivalenttomore than1%o the basinGDPperyear.

The Kone basin is a small coastal system and total available

waterisquitelimited.Tebasinhasabout1%othenation’swater,producesabout 1.1%o GDP,andhas about1.4%

o total irrigationwater use. According to internationalstandards o water availability, local or irregular watershortages may occur. Te basin suers rom moderate

dryseasonwaterstressintermsoextractionscomparedwith ows. Under2025projectedpopulation andwaterdemands,in the dry season the stress levelwouldbein

themiddleothehighstressrange–almostallothetotaldryseasonwaterwouldbeneededtomeetdemandseachyear.Tepopulationdensityishighandruralsanitation

ispoor.Terearesignicantareasoaquacultureinthebasin.Again,disastersplayasignicantroleintheliveso

peopleinthebasin,withmorethan22peoplepermillionopopulationkilledonaverageeachyear,anddamagecostsequivalenttoabout1%othebasinGDPperyear.

The Ba basin ismoderatelysized,andhasabout1.2%othenation’s water, produces about 0.1% o GDP, and hasabout2.5%ototalirrigationwateruse.Boththeannual

anddryseasonwateravailabilitypercapitaappeartobeadequatebyinternationalstandards.However,boththeannualanddryseasonwaterexploitationasaproportion

osuracewaterarequitehigh,withthebasincategorisedasohighhydrologicalstressinthedryseason.Under

2025 projected populations andwater demands, in thedry season the stress level would be in the middle othehighstressrange–almostallothetotaldryseason

water would be needed to meet demands each year.Ethnicminoritiesmakeupasignicantproportionothepopulation,andtheGDPpercapitaislow.Tebasinis

highlyregulatedbydams,butthevalueoirrigationpercubicmeterouseislow.Watersupplyandsanitationservicesaregenerallyrelativelypoor.About7peopleper

millionopopulationarekilledonaverageeachyearbynaturaldisasters,anddamagecostsequivalent toabout

1.6%othebasinGDP.

The Dong Nai basin is the home to HCMC, and signicantindustrial development. Te basin has about 4.2% othenation’swater, produces over28% oGDP, andhas

about7.3%ototalirrigationwateruse.Currentannual

water availability per capita is considered adequate byinternational standards, but local or irregular watershortagesmay occur. In the dry season, the picture is

muchmore dramatic, withwater availabilityper capitaclassed as almost ‘water short’. Water is transerred

out o the Dong Nai or hydropower generation in theSERC basins. Some urther hydropower developmentsareplannedrepresentingover90%othetechnicaland

economiccapacity o the basin. Although ithas a highpopulation density, water useper capita is also low, asagricultureplaysasmallerrolethaninotherbasins.Te

riversare,however,classedasohighhydrologicstressinthedryseason.Under2025projectedpopulationand

waterdemands,thebasinwouldbeexperiencingseriousdryseasonwatershortagesandthestresslevelwouldbeinthemiddleothehighstressrange–almostallothe

totaldryseasonwaterwouldbeneededtomeetdemandseachyear.

Tebasiniscomparativelywellservicedintermsowatersupply and sanitation, but the high population density

and concentration o industrial activities are causingsignicant water quality problems. Te basin is highlyregulatedby dams or generationo almosta quarter o

the nation’s hydropower. Te hydrology has, thereorebeen signicantly altered, with consequent impacts onriver health. Navigation is important in the Dong Nai,

particularlyortransporttotheindustrialzonesoheavyconstruction and plant materials that are dicult to

transportbyothermeans. Groundwater is a signicantresourceinthebasinorurban,ruralandindustrialuses.Tere are major concerns about the sustainability o

currentgroundwaterextractionsinsomeareas,andwaterlevelshavedroppedbyupto30metersinHoChiMinhCity.Groundwaterqualityisalsobeingimpactedbyland

useactivities,posingsignicantriskstousers.

The SERC basin hasabout1.1%othenation’swater,produces

about10.5%oGDP,andhasabout2.2%ototalirrigation

wateruse.Itisoneothe2mosthydrologicallystressed

in the country,with as much as 75%othedry season

ows being extracted – a veryhigh stress classication.

Evenonan annual basis, the basinswouldbe classedas

moderatelystressed.Includingtheinter-basintransersin

romtheDongNai,dryseasonwateravailabilitypercapita

is the lowest in the country, classed as ‘water short’ by

internationalstandards.Under2025projectedpopulation

and water demands, the basin would be experiencing

serious dry seasonwater shortages and the stress level

wouldbewellabovethe100%line–evenmorethanthe

total o all dry season water would be needed to meet

demandseachyear.

Teurbanpopulationhasrelativelygoodcleanwaterandsanitation services, but the same cannotbe said or therural areas. With a large industrial sector, the GDP percapitaisthehighestintheCountry.Tisgureis,however,signicantly reduced i the economic activity associatedwithoildevelopmentoBaRia-Vungauisremoved.Tereisasignicantamountoaquaculturedevelopmentinthe

provincesin thisbasin. Disastersalsohavea signicantimpact on these basins, with more than 15 people permillionopopulationkilledonaverageeachyear.



32

The Se San basin has about 1.6% o the nation’s water,

producesabout0.6%oGDP,andhasabout0.3%ototalirrigationwateruse.Over70%othewaterintheSeSanowstoCambodia,andtherehavebeen,andwillcontinue

tobe,signicant trans-boundaryissuesassociatedwiththisbasin.Itisdevelopedorhydropower-itaccounts

or about 16% o the nation’s hydropower generatingcapacity. Hydropower generating capacity is projectedtoincreaseby114%by2025,representingover92%o

thetechnicalandeconomiccapacityothebasin.Othersuracewaterdevelopmentisnotextensive,andtheriversarenotconsideredstressed.Wateravailabilitypercapita

isalsohighandthisisnotexpectedtochangemuchby2020. Flowpatternshave,however, beenchangedas aresultothehydropowergeneration.Telargelyethnic

populationdoesnotappeartohavesharedinthebenetsohydropowerdevelopmentinthebasin,andtherehas

beensignicant dislocation o communities. Tebasinhasalargeproportionohouseholdsassessedasbeinginpoverty,andthemountainousregionispoorlyserviced

intermsowatersupplyandsanitation.Waterusedorirrigationprovidesahighreturnpercubicmeterowater

used,beingorhighvaluecropssuchasteaandcoee.Groundwateris usedextensively in thisbasin,both ordomestic supplies and irrigation. Tere is increasing

competitionorthegroundwater,andextractionappearsto be unsustainable in some areas, with water levelsdeclining, and water supply becoming more dicult

duringthedryseason.Tisinturnwillhaveanimpactongroundwatercontributionstoriversows.

The Sre Pok basin has about 1.8% o the nation’s water,

producesabout1.6%oGDP,andhasabout1.2%ototalirrigationwateruse.About50%othesuracewaterintheSrePok lowsto Cambodia, and there iscurrently

no ormal bilateral agreement on water management.Hydropowergeneratingcapacityisprojectedtoincreaseby112%by2025,representingover94%othetechnical

andeconomiccapacity othebasin.By 2020thebasinwould be experiencing shortages in the dry season

anditwouldbe atthehighendothemoderatestressrange.hebasinisalsoarelativelypoormountainousareathatispoorlyservicedintermsowatersupplyand

sanitation.Groundwaterisalsousedextensivelyinthisbasin,bothordomesticsuppliesandirrigation.hereis increasing competition or the groundwater, and

extractionappearstobeunsustainableinsomelocations.Waterlevelsaredropping,andaccessisbecomingmore

diicultduringthedryseason.hisinturnwillhaveanimpactongroundwatercontributionstoriverslows.

The Cuu Long basin has nearly 60% o the nation’s water,produces about 17.3% o GDP, and has over 44% o

total irrigation wateruse. heCuu Longreceives95%oitswaterromupstreamcountries,andisvulnerable

to thewater use andmanagement arrangements thatexist or are proposed in these. Development in themidtoupperbasinremainsasigniicantissueorthe

entireMekong,andVietNam’scontinuingsupportor,and strengthening o, the Mekong River Council and

Commissionwillbecriticalinthisregard.heCuuLonghasnearly60%oVietNam’swaterresources,andbothannualanddryseasonwateravailabilitypercapitaare

morethanadequate.heriverdoes,however,allintothe moderate stress category in terms o proportionolowsextractedduringthedryseason. By2020the

basinwould,inthedryseason,beatthelowendothehighstressrange.

Teextensiveirrigationwateruseoccursalmostexclusivelyorpaddy.Tebasinalsohostsover65%othecountry’s

aquaculture, although the economic return per cubic

meterowaterusedappearstobelowcomparedtootherareas.GroundwaterisalsousedextensivelyintheMekong

Delta, and the sustainability o current extractions insomeareasisbeingquestioned.Waterlevelsaredeclining,and there is some evidence o intrusion o salt water

into the resh groundwater as a result o extractions.TedenselypopulatedCuuLonghaspoorlevels oruraland urbansanitation atthe district level. Tis, and the

high concentration o aquaculture activities, is causingunacceptable water quality deterioration. Te basin has

high conservation values, especially or wetlands. It isalsolikelytobehighlyimpactedbysealevelrise.About8.5peoplepermillionopopulationarekilledonaverage

each year rom natural disasters, and damage costs areequivalenttoabout1.1%othebasinGDP.



Acknowledgments

TeWater SectorReview was a jointproject o the Government o Viet Nam and a number o internationaldevelopmentpartners,andtookplaceundertheOceotheNationalWaterResourcesCouncil.Teinternational

inputisbeingledbytheAsianDevelopmentBank,withco-nancingromthegovernmentsotheNetherlands, AustraliaandDenmark.TeprojectwasundertakenbyKelloggBrown&RootPtyLtdunderacontractwiththe ADB.

extcompiledandeditedbyablecommunication.

Photographicimages(Pages6,8,20,24)courtesyoDavidHebblethwaite.

BrochuredesignedbyLuckHouseGraphics.

References

NotethatcontextualinormationandallothedocumentsandreportspreparedundertheProjectareavailableatthewebsite:www.vnwatersectorreview.com .



Asian Development Bank

6 ADB Avenue Mandaluyong City

Water: Vital for Viet Nam’s Future

The Water Sector Review is a joint project o the Government o Viet Nam and its international develop-ment partners. The project’s immediate objective is to review the state o the Viet Nam water sector andto establish a common ramework to guide development decisions in the sector over the orthcoming10 years.

The project was unded by a number o development partners (the Royal Netherlands Embassy, Danida

and AusAID), and led by the Asian Development Bank (ADB). The implementation o the project is takingplace under the Oce o the National Water Resources Council (NWRC). The World Bank unded a reviewo the irrigation and drainage subsector as part o the overall water sector review.

This brochure presents a summary o the state o Viet Nam’s water resources within the context o rapidpopulation and economic growth and structural change. It ocuses on the Integrated Water ResourcesManagement (IWRM) approach to management, and the arrangements needed to start Viet Nam on thispathway. It outlines in brie some o the complex and related issues that need to be included in a reormprogramme to provide the basis or investments over the next 10 or more years.

About the Asian Development Bank

ADB’s vision is an Asia and Pacifc region ree o poverty. Its mission is to help its developing membercountries substantially reduce poverty and improve the quality o lie o their people. Despite the region’s

many successes, it remains home to two-thirds o the world’s poor: 1.8 billion people who live on lessthan $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing povertythrough inclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 rom the region. Its main instruments orhelping its developing member countries are policy dialogue, loans, equity investments, guarantees,grants, and technical assistance.

water vital vietnam future

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