Vital for Viet Nam’s Future

CONTENTS

Foreword 1

The Viet nam Context 2

Assessment of Water Sector in Viet nam 7

1 - Ensuring adequate water supply and sanitation 7
2 - Managing floods and natural hazards 9
3 - Providing for economic development 11
4 - Sustaining agriculture and aquaculture 17

Sector Management – adopting an IWRM approach 19

Issues and Options for the future 21

The way ahead 25

Appendix - River basin summaries 29

FOREWORD

W
e all depend on water - life is impossible without it. Water maintains the integrity and sustainability of
the environment within which we all live. We need clean water for drinking and cooking, for sustaining
our health and for sanitation. Water is arguably the most precious natural resource to support our growth
and development. It supports our agriculture, aquaculture, industry and other sectors of the economy. It supports
hydropower and waterway transportation. Water is precious but limited and highly variable in time and place. It is
also highly vulnerable to degradation. Water, in its extremes, can also present major hazards for human existence.

Water resources have long been recognized as a key resource for the development of Viet Nam. Over many years
the Government has undertaken considerable work to provide infrastructure to both develop water for settlements
and food security, and to protect communities from flooding and other natural disasters. However, during this
development period, the crucial role of water in the Nation’s sustainable development, human health and life has
not always been fully appreciated. Its value as a scarce natural resource and economic good has not always been
recognized. As a result, insufficient attention has been paid to the need to protect and manage water resources,
and today there are numerous examples of serious degradation in the quality and quantity of our national water
resources, and of shortages of water in many regions.

In 2006, the Prime Minister signed the decision 81/2006/QD-TTg promulgating the National Water Resources
Strategy Towards the Year 2020. This aims to strengthen the protection, exploitation, use and development of water
resources, as well as the prevention and mitigation of adverse impacts caused by water.

In order to support the aims of the National Strategy, and to provide a platform for its implementation, the Water
Sector Review (WSR) was undertaken as a joint project of the Government of Viet Nam and its international
development partners. The objective of the project was to review the state of the Viet Nam water sector, to establish
a common framework to guide development decisions in the sector and to support Integrated Water Resources
Management (IWRM) initiatives to underpin the Government’s achievement of the National Strategy over the
forthcoming 10 years.

The water sector review was prepared on the basis of the best information available at the time, and was generally
reviewed by the Government Task Force set up to guide the Review. However, the detailed results that have been
produced cannot be taken to be absolutely accurate. They are used in the Review to illustrate the main issues facing
Viet Nam, and over time more definitive data can verify the accuracy of the results. In that context, readers should
not focus on the veracity of the data; rather they should take the main messages presented and work with the
concerned Ministries and the international development partners on the various measures that will lead Viet Nam
towards a better IWRM approach.

This publication presents the main findings of the Review, particularly in relation to the status of water resources
and water-related environments, including water quality; the status of the main sub-sectors – water supply and
sanitation, natural hazards, navigation, industry and craft villages, hydropower, irrigation and fisheries and
aquaculture; the main issues facing the sector; and the main measures that Viet Nam could adopt to ensure a
sustainable water future.

This publication is presented as a reference document for Government agencies and organisations at all levels, the
international development partners, academics, as well as for a broader audience of individuals and organisations
interested in issues related to the management of water in Viet Nam. Its findings are important to us all and the
information stemming from the Review will influence key decision makers at all levels and potential investors in
water sector reform.

In response to the Review, the Government is preparing a National Target Program to provide a concentrated
focus and drive to deal with the critical challenges facing the sector and to focus on the sustainable protection and
exploitation of water resources.

Hanoi, November 2009

Dr. Nguyen Thai Lai Mr. Ayumi Konishi

Director Country Director for Viet Nam
Office of National Water Resources Council Asian Development Bank
1
The Viet nam Context

16 Major River Basins

There are as many as 2,360 perennial rivers over 10 km in length in
Viet Nam, and these naturally form 15 major river basins spanning the
country – see map (Page 28). The project has also included the South East
Rivers Cluster (SERC). This is the group of rivers in a comparatively dry
part of the country where lack of water could prove a major constraint
to poverty reduction and development. It consists of the provinces of
Khanh Hoa, Ninh Thuan and Binh Thuan. These 16 basins were used as a
platform for the analysis under the project. Most of the analysis is based
on 2006 data.

The Water Sector Review (WSR) has shown that Viet Nam’s water

T
sector is facing a wide range of major issues, as outlined below. As a he water sector is extreme-
result, tremendous challenges face Viet Nam’s proposed programme to
implement the National Water Resources Strategy. ly complex. It cuts across
many Ministries and organisa-
tions and all levels of govern-
A rising population ment, and covers many aspects
Viet Nam is currently the 13th most populous country in the world, of daily life for communities
and its population is projected to reach 100 million in the next 25 years. and businesses. It spans the
Almost two-thirds of the current population live in the three main river entire country and its interests
basins (Red – Thai Binh, Mekong Delta and Dong Nai). This, combined can range from a small house-
with the shift in population distribution from rural to urban areas, is
hold taking living water from a
placing a particular strain on financing infrastructure, as well as resulting
in ever increasing problems of water supply and environmental pollution. creek, or groundwater or a lake;
to a farming community using a
Within 25 years the population in urban areas will require a daily water water supply system; to a large
supply capacity twice that of the current level and will also generate
considerable wastewater, all requiring significant investment. In the
privately owned hydropower
recent past, such investment, particularly in the urban areas, has come station – all are part of the wa-
predominantly from official development assistance (ODA). Looking to ter sector.
the future, investment in both rural and urban water and sanitation
will have to quadruple if the Viet Nam Millennium Development Goals
(MDGs) are to be met.

Economic development
Undoubtedly, one of the greatest pressures on water resources and the
water sector comes from the strong economic development and the
changing structure of the economy. This growth increasingly consumes
natural resources, requiring a reliable water source, and generates
considerable volumes of polluted wastewater affecting water sources.

Over the last ten years, GDP has nearly tripled and the growth in the
industry, construction and service sectors has been dramatic. At the
current growth rate (7.5%), Viet Nam’s economic output is projected
to double every 10 years. The Red – Thai Binh, Mekong Delta and Dong
Nai river basins account for over 70% of Viet Nam’s GDP, indicating that
the pattern of economic growth is highly uneven, with the rest of the
Country contributing less than 30% of GDP. Under the Socio-Economic
Development Plan (SEDP) to 2010, the Government clearly expects the
pace of economic reform to be maintained into the future, leading to
even greater pressure on already stretched water resources

2
 can range in length from six to nine months and are
longest in the central Viet Nam basins. Under existing
population and development levels, during the dry
season the Dong Nai and the SERC basins run the
risk of irregular or local water shortages, often due to
unsustainably high levels of water extraction. Other
rivers are approaching this level.

Competing water uses

At present, nationally, nearly 82% of the total current
surface water use is for irrigation, 11% is for aquaculture,
5% for industry and 3% for urban use. By 2020, water
use is expected to increase by 48% - irrigation water by
Dependence on international rivers about 30%, industry by almost 190%, urban by 150%
and aquaculture by 90%. These changes will place a
Viet Nam is heavily dependant on international rivers. heavy burden on Viet Nam’s water resources.
More than 60% of the total average yearly surface water
discharge is generated outside the country. Six river basins
depend on water inflows from other countries – Red-Thai
Binh, Ma, Ca, Dong Nai, Bang Giang - Ky Cung, and Cuu
Long (Mekong Delta). In the Cuu Long, almost 95% of
the average yearly surface water flows are generated in
the upstream Mekong River countries, whilst in the Red
River - Thai Binh basin almost 40% of the surface water
originates in China.

Other countries also depend on inflows from rivers that

originate in Viet Nam. Surface waters in the Se San and
Sre Pok basins generated in Viet Nam account for 75%
and 50% of the total water in those respective basins,
and about 2% of the total flow in the Mekong River. The
Bang Giang - Ky Cung flows from China through Viet
Nam, and back to China.

Available surface water The WSR shows the serious lack of water availability in
At first glance, Viet Nam has an apparently abundant Viet Nam in terms of meeting future projected water
water resource. Viet Nam’s total surface water discharge uses, particularly in the dry season, and the stress that
of 9,856m3 per person a year compares favourably this will put on rivers, with a number of basins being
with the international standard for having adequate particularly badly affected. This is likely to induce a focus
water of 1,700m3 per person a year. However, this on groundwater use to support more of the projected
varies greatly between river basins and is significantly socio-economic growth. However, groundwater
different between the wet and dry seasons, which resources are poorly assessed and understood.

3
Groundwater potential the demands of their communities, a number of basins
will suffer severe water shortages and be unable to meet
Groundwater provides the domestic water supply growing demand for water resources, particularly in the
for more than half of Viet Nam’s population. More dry season.
than one-third of the urban population is dependent
A measure of stress in a river basin is the percentage of
on groundwater, and almost two-thirds of the rural
the average annual discharge that is extracted from rivers.
population. Whilst Viet Nam has an estimated total
The international standard for water exploitation stress1 is
‘groundwater potential’ of almost 63,000 million m3
that moderate stress begins at a value of 20% extraction,
per year, in some areas concentrated groundwater
and high water stress occurs for values above 40%. Stress
extractions are causing concern.
mostly occurs during low flow times, during the dry season.
In Hanoi, water levels are falling by more than 1 m per Water extraction during these times results in less water
year in some areas. In parts of Ho Chi Minh City, the for the river - less wetted area and reduced depth of water.
drop in water level is as much as 30 m, and in other parts In these conditions much of the native aquatic life struggle
of the Mekong, water level declines are also significant. to survive. This is particularly important for Viet Nam as so
There are particular over-exploitation issues in parts of many people, particularly the poor, rely on natural rivers
the coffee growing areas of the Central Highlands, with for so much of their daily life.
water levels dropping by over 2.5 m per year.
Therefore, the surface water exploitation situation in the
dry season is most critical. Under existing population
Water storage and development levels, during the dry season six of the
16 basins are classified ‘moderately stressed’ (in the 20%
The total current reservoir active storage volume is to 40% zone), and a further four are classified as being
about 4.5% of the total average annual surface water ‘highly stressed’ (the Ma, SERC, Huong and Dong Nai).
discharge. Of this, over 45% is located in the Red – Thai The Red River basin is almost at the high stress line. The
Binh basin, and almost 22% in the Dong Nai. Viet Nam most severely stressed systems are the SERC basins,
has an active storage of about 440 m3 per person, which with 75% of the dry season flows extracted, and the Ma
is low in comparison with the United States and Australia basin with almost 80% extracted. These represent very
(at over 5,000 m3 per person), and China (2,200 m3 per high level of current water extraction.
person). Only three river basins have reservoirs with a
flood mitigation component.
Water quality
Potential water shortages and The WSR found it difficult to get meaningful water quality
data and information. However, on the basis of what is
river basin stress available, it found that surface water does not meet the
organic pollution standards for drinking water in the
Water availability in the dry season is already a serious
main parts of all river basins. Higher concentrations
issue in many river basins or parts of basins. Conflict
of organic matter are seen in a number of basins. There
over access to water is increasing. As well, increasing
are also some hot spots for rivers running through
population and water use projections will change the
residential areas. Organic pollution is generally within
water availability in, and the stress on, river basins.
While some basins will have sufficient water to support
1. Used by the OECD and European Environment Agency.

4
the B Class standard (except in hot spots). While there coast compounds the problem. More than 80% of the
is limited data for determining pollution levels of heavy population live at risk of direct impacts from natural
metals, the surface water in all river basins generally disasters. Floodplain flooding provides major difficulties
meets drinking requirements. in the Mekong Delta and the Central Region while
the dike system in the Red River Delta provides some
Protecting Ecosystems controls. Flash flooding occurs throughout the country.
Typhoons regularly afflict the entire country but
Viet Nam’s natural ecosystems support nearly 10% of predominantly in the Central Region.
the global total of mammal and bird species. However,
From 1997 to 2006, natural disasters caused over 5,000
Viet Nam’s freshwater and marine biodiversity is being
deaths, and destroyed more than 6,000 fishing boats,
threatened by domestic and industrial water pollution,
nearly 300,000 houses, 4 million hectares of paddy rice,
dam and infrastructure construction, dredging,
with a total damage cost of some VND50,000 billion.
destructive fisheries techniques, aquaculture and over-
The average yearly natural disaster related damage cost
fishing. The SEDP noted that Viet Nam’s Environment
in each basin is also dominated by the river basins in
Sustainability Index (ESI) in 2005 was only eighth
central Viet Nam, where economic losses are almost the
among ASEAN countries, and Viet Nam ranked 127th
same as the annual growth rates in GDP.
overall, well below some of its closest neighbours.

Viet Nam is rich in freshwater and marine wetlands,

mostly in the Red River and the Mekong River Deltas
Climate change
and along the coastline. There are about 1 million Recent UNDP and World Bank reports indicate that
hectares of wetlands in river mouths and around some Viet Nam is one of five countries world-wide most
island lagoons. The Directory of Asian Wetlands lists vulnerable to sea-level rise. In a scenario of a 1 m rise
over 25 wetland sites in Viet Nam that meet the criteria in sea level, assessments show that Viet Nam would
of “Wetlands of International Importance”. Despite lose 5% of it’s land, 11% of the population would be
this, only two wetlands are recognized as RAMSAR sites seriously affected, agricultural production would
– the Xuan Thuy in the Red River Delta, and the newly decrease by 7%, and the GDP would decrease by 10%.
established Bau Sau in Cat Tien National Park. A 1m sea level rise would flood more than 38% of the
land of the Mekong Delta Basin. Some provinces would
Healthy rivers, including their channels, beds, banks, lose nearly half of their land.2
and their habitats, support and maintain a mix of
aquatic plant and animal life. The proportion of the flow In December 2008, the Government approved a National
that is extracted from a river is critical and indicates the Target Program (NTP) on Climate Change Adaptation.
stress level of a river. A number of basins are already Climate-change adaptation and mitigation projects will
‘stressed’, particularly in the dry season, and this is be piloted in provinces most at risk of sea-level rise over
likely to increase dramatically in the future. the next two years. From 2011–2015, the plan will be
adopted nationwide.
Natural disasters
The location and topography of Viet Nam make it one
of the most disaster-prone countries in the world.
2. Note that more recent information has been compiled for the NTP on climate
The fact that about 50% of its population lives on the change adaptation.

5
6
Assessment of Water
Sector in Viet nam

1 – Ensuring adequate water supply and

sanitation (urban and rural)
T he following section sum-
marises the status of the
main sub-sectors – water supply
and sanitation, natural hazards,
Current Status – Urban Water Supply & Sanitation navigation, industry and craft
While over 14 million people (about 62% of the 22.5 million urban villages, hydropower, irrigation
population) have access to clean water, around 8.5 million do not. For and fisheries and aquaculture.
those that do have a clean water supply, the current standard of service is For each of these, the current
poor. The Government is trying to provide efficient water supply services status and the major issues are
to meet the needs of a booming urban population and industries; and
described. We then look at how
have issued new decrees on urban water supply and drainage providing
a strong platform for reform. However, problems remain, as sanitation the water sector is managed.
services remain inadequate across the country, funding of major
infrastructure projects is beyond Government capacity, and the Provincial
Peoples Committees’ often set water tariffs at rates that cannot sustain
a viable business model and tie operations to decision making heavily
burdened by government processes.

In 2006, yearly urban population growth was 2.18% compared to 0.93%

in rural areas, with the urban population being estimated to reach more
than 30 million by 2010. In 2005, the average urban water supply was
about 80-90 liters per person per day; and in large cities 120-130 liters
per person per day. However, Government objectives are to ensure that
100% of the urban population has access to clean water of 120-150 liters
per person per day by 2020, which will require billions of VND worth of
investment.
I n Viet Nam, at this stage of
its socio-economic develop-
ment, water supply and sanita-
Current Status – Rural Water Supply & Sanitation
tion have traditionally been seen
Increased coverage of rural water supply and sanitation (RWSS) is a as “social” issues. In developed
crucial part of the fight against poverty. Access to water and sanitation
countries, urban water supply
is mainly a problem of the rural poor in Viet Nam. In 2005, over 60
million people lived in rural areas. Of the poorest 20% of people, only and sanitation are more likely
22% have access to clean water compared to 78% for the richest 20%. For to be regarded in much the same
sanitation, the poorest 20% only have 2% access compared to an access way as other utility functions –
level for the rich of 20%. gas, electricity, telecommunica-
In rural water supply and sanitation, 21 million people do not have access tions, etc.
to a “hygienic” water supply, and 41 people million do not have a supply
that meets “clean” water standards (MoH standards). Furthermore, the
vast majority of rural people do not have access to a hygienic latrine.
However, despite these stark challenges, RWSS National Target Program
(NTP) II is now underway with strong international support. It reflects
the need for a greater focus on sanitation and hygiene, the need for better
targeting of subsidies for the poor, greater emphasis on sustainability,
improved operation and maintenance and further decentralization of
implementation. It is starting to deliver far better results, and a new
more cooperative and integrated approach, increasingly “bottom up”, is
being developed. As a result, NTP II deserves far greater levels of support.

7
Current Status – Urban wastewater •  e poor standard of service of urban water supply
Th
companies and their efficiency.
treatment
Eleven out of the 16 basins have no domestic wastewater
•  rban water supply infrastructure is not keeping
U
pace with economic development, and urban
treatment. Sixty percent of hospitals have wastewater
sewerage and drainage infrastructure seriously
treatment plants but only 18% are properly operated
lags behind.
and most wastewater from hospitals is discharged
directly into public sewerage systems. Factories in urban •  owns under district control appear to have much
T
areas also do not treat wastewater and this is discharged less access to basic water services.
directly into the public sewerage systems. Urban areas
may impose water sanitation fees but historically these •  e urban water tariff has not been aligned to
Th
have been heavily constrained. A recent decree provides business needs and has not covered costs.
a strong basis for the comprehensive reform of the urban
sanitation sub-sector on a sustainable basis. •  ollected wastewater fees are not returned to the
C
service provider.

Major issues •  ere have been no clear mechanisms for

Th
determining the price of assets, nor consistent
Major urban and rural water supply and sanitation regulations on asset management.
issues are as follows. However, recent legal changes for
urban water supply and sanitation (Decrees 117/2007 •  oor and inconsistent policies and unclear
P
and 88/2007) should provide a basis to overcome a organisational arrangements.
number of these: • The over-exploitation and pollution of groundwater.
•  ow to achieve the NTP II targets by 2010,
H • Dealing with the disposal of solid wastes.
particularly ensuring that consumers can provide
a greater proportion of the funding in a socially •  apacity building, particularly for sanitation
C
acceptable way. service provision.

8
2 - Managing floods and natural hazards

Current Status
In dealing with the effects of natural hazards and disasters two aspects
need to be considered. One is the response when disasters happen,
and the long history of dealing with devastating storms has created a
strong network and culture of response at all levels. The second aspect
is the work undertaken between disasters, in developing an approach to
better deal with future natural hazards, i.e. how to stop them becoming
disasters, and to protect communities from their effects.

However, to date in Viet Nam this second aspect has been based on a
strong traditional structural approach to natural hazards, particularly
through dyke construction, which cannot always be implemented
comprehensively. Structural measures alone are not effective for some
areas, such as Central Viet Nam, where many people die each year. For
example, flash flooding, which kills nearly 50 people a year, is extremely
V iet Nam is one of the most
hazard-prone countries in
the world, as set out earlier in
difficult to deal with and depends more on land use management, warning
and community preparedness, than on any possible structural measure.
this report. Climate Change is
set to make these problems even
Viet Nam needs to develop far stronger measures for the application worse, with Viet Nam being one
of a wider range of non-structural options. An integrated approach of the top five countries in the
to hazard risk management should involve both structural and non-
structural measures across sectors, and, working closely with the world most likely to be directly
provinces, planning for disasters using Community-Based Disaster Risk affected by changes to sea levels,
Management (CBDRM) approaches. One successful example is a recent more frequent and intense ty-
project in disaster-prone Quang Ngai Province (Tra Khuc Basin) which phoons, plus increased flooding
has demonstrated the benefits of this approach. Furthermore, there and storm surges.
is now an urgent need to ensure sufficient resources are dedicated to
dealing with natural hazards.

As economic development progresses, greater attention must be paid

to the long-term stability of coastal areas subjected to natural disasters.
The impact of vegetation removal, in particular mangrove removal,
is well known. Extensive river sand extraction to support economic
development is also reducing the natural processes of sand supply to the
coast and thereby decreasing the capacity of coastlines to resist erosion
forces. Climate change will only intensify the impacts of natural disasters
and focus more attention on the need for more non-structural solutions.

Major Issues
Major natural hazard issues include:

• Lack of dedicated resources.

•  e importance of, and lack of progress with, non-structural

Th
responses .

• Greater levels of warning and community preparedness.

• Greater use of flood storage in reservoirs.

• The integrity and safety of structural works.

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

• Better coastal zone management.

9
 •  e effects of extensive river sand extraction
Th •  reater adoption of Community-Based Disaster
G
reducing the natural processes of sand supply to Risk Management (CBDRM).
the coast.
•  limate Change: managing the risks of hazards
C
• Preparedness for extreme risks. also helps to manage the worsening risks due to
climate change.
• Difficulty in dealing with flash floods.

• Institutional modes for disaster management.

10
3 - Providing for economic development

Current status – industry

Industrial activities are expected to account for over 45% of
national GDP by 2010. Indeed, industrial sector GDP doubled
between 2002 and 2006, and manufacturing accounts for around
84% of industrial output value. By 2007, there were 154 industrial
parks and export processing zones nationally, approximately two-
thirds of which are located in the Red – Thai Binh, Dong Nai and
SERC basins. By 2010, it is expected that 35% of all manufacturing
enterprises will be located within industrial estates, mostly in
Southern Viet Nam.
Industry generates significant demand for groundwater. By 2015,
industrial water use will more than double with the greatest
increases projected for the Red, the Dong Nai, SERC, Cuu Long,
A cross the country, industrial
expansion is providing ma-
jor economic and social benefits
and Thu Bon & Vu Gia basins. to many. However, it is also hav-
Despite the relatively large and increasing number of industrial ing major impacts on the quality
estates, there are only 43 centralised wastewater treatment plants. of people’s living environment
Almost half of the non-state owned enterprises are located outside – water quality is polluted and
of industrial zones, presumably with little or no wastewater wildlife and natural areas, such
treatment. It is estimated that in 2006 there were 2,803 industrial as wetlands, are being dimin-
enterprises nationally, discharging about 155 million m3 a year ished or lost. The rapid develop-
of wastewater - or 850,000 m3 a day. This represents about 340 ment of craft villages has also
Olympic-sized swimming pools of untreated wastewater being
contributed to this problem. Viet
discharged every day across Viet Nam, but in concentrated
Nam has yet to fully reconcile
locations.
the trade off between develop-
Many industrial establishments come under direct Government ment that will yield short term
control. The state sector contributes approximately 40% of Viet benefits but at enormous long
Nam’s GDP. Many line ministries are owners and managers of term costs, and more sustain-
industries which are among the most polluting in the country. able models of economic devel-
Technological renovation in Viet Nam is at a much slower pace
opment. Some Government ini-
than in many neighbouring countries.
tiatives have been undertaken,
Plans have been approved by the Prime Minister (Decision 64/2003) but in many cases the impacts of
to tackle environmental pollution by industrial establishments. industrial and craft village pol-
However, by the end of Stage 1 only around 63% of the listed lution are extreme and are only
black spots have been resolved. Prime Ministerial Decree No. likely to get worse over the com-
67/2003 seeks to use pollution charges to limit the environmental ing years.
pollution caused by wastewater, to use clean water economically
and to create a funding source for the Environmental Protection
Fund. However, at present, fees are not being uniformly applied
and not all provinces participate.

Current status – Craft villages

The craft village industry has witnessed phenomenal growth,
especially in the Red – Thai Binh basin, where 60% of craft industries
are located. Craft villages are seen as an important measure for
promoting economic development in rural areas, where 75% of
Viet Nam’s population still reside. Average income per capita in
craft villages is up to five times higher than in villages devoted to
agriculture. By 2002, the number of craft villages was assessed at

11
 over 2,000, providing more than 10 million jobs or •  opulations are growing and concentrating around
P
29% of the rural workforce. An estimated 40,500 industrial areas.
enterprises are located in craft villages, around • I ndustrial pollution will continue to increase as
80% of those being family businesses with 1 to 3 industry grows.
employees.
•  e toxicity and complexity of pollution will
Th
However, craft villages are seemingly victims of increase as industry grows.
their own success, with high occupational health
risk and exposure to pollution. Almost all village • Incomplete application of Decision 64.
households use their houses and gardens as •  e production at craft villages is causing serious
Th
production sites, meaning that waste is discharged environmental pollution.
directly into the surrounding environment. This
directly affects surface water and groundwater, •  e environmental
Th performance of State
Enterprises is poor.
impacting on the drinking water for the villages.
Water pollution from craft villages is a serious and •  ack of water use and wastewater discharge
L
growing problem. monitoring.

•  nvironmental protection processes are inadequate

E
Major issues - industry and craft villages to deal with the booming development.

Major industrial and craft village issues are as •  oor application

P of the environmental
follows: protection fee.

• I ndustry is growing rapidly with major impacts on • Lack of enforcement and inspectorate.
water.

• I ndustry is concentrated which creates

environmental problems, but also opportunities
in terms of a more focused management approach.

12
Current status – Hydropower processes and rules that apply to both government
and non-government operators.
The hydropower sub-sector is one which will have
a major impact on water resources in many river Unfortunately in Viet Nam, the nature of important
basins. Over recent years the development of parts of the water sector are not yet up to what
hydropower has been growing rapidly and this is will be required – EIA processes are weak, clear
set to continue to meet energy targets. The latest and unambiguous water rights are not established
master plan for power, Master Plan VI, seeks to providing a poor basis for business investment, the
satisfy electricity demands from 2006–2015, with water needs of all users have yet to be adequately
an outlook to 2025. It provides for the building considered, especially for the needs of lower river
of about 26 more reservoirs, some of which are communities, environmental water requirements
under construction. The unit cost of hydropower need to be established and put in place, etc. A
is much less than other types of power generation cautious approach would appear to be advisable
in Viet Nam. to avoid any potential compensatory claims in the
future.
From 1995 to 2005, the capacity for electricity
production almost tripled: however, this is still
insufficient to meet demand. By 2010, hydropower Major issues - Hydropower
will provide 42% of the nation’s total power Major hydropower issues are as follows:
capacity. Hydropower in the Red-Thai Binh and
Dong Nai systems accounts for more than 50% • I ntegrated management and coordination between
of the nation’s internal hydropower capacity. the hydropower and other sectors.
Small hydropower generating facilities account •  ulti-purpose use of reservoirs and regulatory
M
for 11%. However, it should be noted that “small” controls.
hydropower does not imply that the impact on a
river will be small – many of these schemes have • International cooperation.
large impacts. •  e need for full assessment of the ability of a river
Th
Major increases in hydropower are planned for the basin to provide the necessary water volumes with
no or limited detriment to other water users and
future, mostly in the Red-Thai Binh basin, which
uses.
will increase capacity more than fourfold. The
SERC will contribute almost 16% of all internal • I nter-basin water transfers, particularly out of the
hydropower capacity in the future, with an inter- Dong Nai, which is already highly stressed.
basin transfer from the Dong Nai. By 2010, about
•  ack of consideration of down river flows in
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50% of the technical and economic potential reservoir design and operation.
hydropower capacity across the country will have
been developed. By 2025, this is expected to •  egulatory environment, especially with more
R
increase to 83%, an extremely high proportion involvement of the private sector.
by international comparisons, particularly given •  romotion of small hydropower projects with no,
P
Viet Nam’s relatively small hydropower potential. or limited, impact asessment.
This projected level of development will put great
pressure on river basins. • S ocial impacts and environmental impacts are not
properly recognised.
Cooperation with other countries is essential for
meeting energy demand forecasts, and hydropower •  enefit sharing recognized concepts need to be
B
embraced.
developments in Lao, Cambodia and China
are expected to contribute substantially. Viet • Participatory mechanisms.
Nam is expected to import almost 6,000 MW of
hydropower by 2025. •  wareness of the impacts of hydropower and the
A
impact mitigation options.
The Government’s energy reform agenda is slowly
transforming the function of Government from one
of an operator to that of a regulator, as the private
sector increasingly becomes involved in energy
supply. Because these reforms are predicated on
market mechanisms, a strong regulatory framework
needs to be created with clear, well communicated

13
14
Current status – Waterway navigation
Waterway navigation is often the forgotten part
of the water sector. Its needs are not considered in
water decision-making and are often compromised
by other decisions, such as bridge building.
However, the future of the sub-sector should be
determined by economics – to what extent can the
sub-sector provide transport navigation services at
cost recovery levels that are economically attractive
to businesses.
In 2006, the transport of cargo on inland waterways
accounted for almost 20% of the total cargo
transported, and passenger transport was about
13% of the total. Inland waterway transport is low
cost relative to other transport modes, and it can
carry oversized cargo long distances; however, it is
slower, weather-dependent and does not provide a
door to door service.
There are many environmental impacts from
navigation activities, such as oil spills. There were
223 accidents on inland waterways in 2006, mostly
in the Red – Thai Binh basin, which resulted in the
sinking of 195 vessels, 213 deaths, and 14 injuries.

Major issues - Waterway navigation

Major navigation issues are as follows:
• Integrated management and coordination with
other sub-sectors.

•  ow level of awareness and investment from

L
within Government and the community.

• International cooperation in shared rivers.

• Navigation obstacles and barriers on many rivers.

• Impacts of dredging and sand exploitation.

• Impacts of aquaculture developments.

• Environmental impacts of navigation activities.

•  anagement,
M capacity and financing
shortcomings.

15
16
4 - Sustaining agriculture and aquaculture

Current status - irrigation

Today, the irrigation supply is inefficient, its infrastructure is old and
dilapidated, and it is totally reliant on state budgets and ODA to keep
the systems going. At current funding levels, with irrigation water now
being free of charge, and despite some ODA rehabilitation, all systems are
progressively deteriorating and some will eventually be non-viable, either
partially or fully. Despite some successes, farmers still have relatively
little say in system management, and there is little incentive for them to
get involved.

The irrigation systems are set up for paddy rice, with water supplied

S
by the Irrigation Management Companies (IMCs) to meet these water trong irrigation develop-
requirements. As supply is top down for paddy rice rather than farmer
ment over many years has
driven, crop diversification is difficult. While irrigation reform will always
prove a dilemma for the Government, given the rural poverty situation, ensured food security and has
hard decisions will need to be taken on the extent to which major reforms turned Viet Nam into a major
can be embraced over time to create an innovative and progressive exporter of rice. Water supply
irrigation sector. for growing paddy rice is at the
The sector is projected to continue to grow at a modest rate. Irrigation very core of most rural commu-
remains the largest user of water and the Cuu Long and Red – Thai Binh nities. As such, irrigation man-
basins account for almost 70% of the use. The Cuu Long has the greatest agement is steeped in tradition
irrigation water use per capita at over 1,600 m3 per person per year. and is now in effect a means of
Most basins have a figure of much less than 1,000 m3 per person per
year. Paddy field rice accounts for 82% of the irrigated area. The relatively providing social services to most
strong growth in production over the past 14 years has resulted largely rural people.
from a process of intensification - there has been little investment in new
irrigation capacity or in the rehabilitation of facilities.

In most river basins, the agricultural sector’s contribution to GDP has

dropped from 80-90% to 30-50%, although it remains a significant
economic activity, and is not declining.

Agricultural chemicals are used by a high proportion of the population

and on extensive land areas. The WSR reported on a study on chemical
use which found that most pesticides used were of high toxicity, levels
of exposure were unnecessarily high, costs of chemical use were high,
but their efficiency was low. Most farmers had little awareness of proper
pesticide use and many were suffering from pesticide poisoning problems
as a result.

Until very recently, individual farmers paid ‘irrigation service fees’ (ISF)
to cover at least a proportion of the operation and maintenance costs
associated with irrigation water delivery by both IMCs and Water User
Associations (WUA). Although not adequate to meet operation and
maintenance requirements, these fees provided a substantial proportion
of the budget for IMCs. In 2008, this fee was essentially abolished.

Major issues - irrigation

Major irrigation issues are as follows:

• Efficiency of irrigation water supply and use.

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

• Lack of financing for irrigation management.

17
 • Water quality in food production. The value of production of aquaculture in river basins
varies considerably – from 15,300 VND/m3 of water
• Excessive use of fertilizers and pesticides. used in the Kone basin, to a low of 3,800 VND/m3 of
water used in the Cuu Long.
• Multi-purpose use of irrigation reservoirs.
The number of State Fishery Enterprises (SFEs) in the
• Institutional, legal and policy frameworks.
sector has decreased steadily but remains significant.
• State management of irrigation. Most coastal provinces own one or more state enterprises
in the fisheries sector. SFEs are characterised as having
• Irrigation scheme management. low efficiency and are often unprofitable. The emergence
of food safety requirements as barriers to accessing
• Irrigation management capacity.
international markets is significantly re-shaping the
industry structure.
Current status - aquaculture While there are many water related threats arising from
The fisheries sector provides about half of the supply of activities within the fisheries sub-sector, it is aquaculture
animal protein to the human diet. Total earnings make and the fisheries processing industries that contribute
it the third most important export-oriented sector. to significant water source degradation through water
More than three million people are directly employed use and pollution.
and nearly 10% of the population derive its main income
from fisheries.
Major issues
Aquaculture has grown significantly in recent years,
Major fisheries and aquaculture issues are as follows:
where the freshwater sub-sector remains dominant
at approximately 65-70%. Most fishermen and those •  ater quality and pollution from fisheries
W
involved in aquaculture are small-scale producers processing.
– 77% of households conducting aquaculture have
pond areas of under 0.1 ha. More recently some • Water quality and pollution from aquaculture.
cooperatives have been established. The biggest source
of fishing and aquaculture income is generated within
• Poor water quality poses a threat to aquaculture.
the Mekong Delta, where between 60% and 70% of • Loss of mangrove forests.
households are involved in some form of aquaculture,
involving employment of over 600,000 workers. Shrimp • The performance of the State Fisheries Enterprises.
aquaculture accounts for more than half of this.
• Information, research and capacity building.

18
Sector Management
– adopting an IWRM
approach

There is often a perception that “water” is a vital public resource

and an essential component of life for people, and therefore cannot
be treated like other utilities such as electricity or gas. As a result,
essential reforms required in the water sector often lag well behind
those of other utility areas.

River basin planning is an example. The various plans so far prepared for
the Dong Nai basin have not prevented this river, vital in providing water
and electricity to Viet Nam’s economic hub, from becoming one of the
most highly stressed and polluted in the country. The current demands
placed on this river basin are already causing water shortages and stress;
while future demands are likely to be even greater. M any of the issues cur-
rently facing the sector
were identified in the first Wa-
It is therefore apparent that past approaches to river basin planning
in Viet Nam have not been effective, and that new IWRM planning ter Sector Review carried out a
approaches are urgently required. However, in terms of the effective decade ago. Current water sec-
adoption and implementation of IWRM approaches, a number of tor management is dominated
challenges are being faced:
by traditional water manage-
•  vailability of reliable data and information is lacking. Whilst some
A ment approaches, rather than
initial steps have been taken to improve the situation, this is still one more progressive Integrated
of the most serious issues hindering effective decision making.
Water Resources Management
•  ights to water are not defined and, although licensing is underway,
R (IWRM) approaches, which are
it lacks focus and adequate resources. still very much in their infancy
•  ater quality management efforts are not effective, with serious
W in Viet Nam.
pollution increasing in many urban/industrial centres, posing a
growing threat to human health. In the immediate future the
pollution levels will only get worse.

•  nvironmental protection provisions are inadequate, and cannot

E
keep pace with economic development.

•  olicy positions are often unclear on a number of issues, which are

P
necessary to ensure effective IWRM.

•  wareness of water issues throughout all levels of Government

A
and within the broader community is poor, and capacity to take
IWRM initiatives is poor.

The Government of Viet Nam is supported in the planning and

management of the water sector by its International Development
Partners (IDPs), who provide enormous support to the water sector.
However, it is clear that many IDPs, a number of whom are significant
donors, continue to act in isolation from one another, often leading
to duplication and overlaps, whereas the adoption of a more common
strategic approach by the IDPs - working together more regularly on
projects to meet common objectives – would be much more beneficial.

Much ODA support remains focussed on the traditional water sector areas.
Current international investments reflect a strong development focus with

19
 an emphasis on infrastructure. Whilst the need for and Many of these IWRM issues, which have been
level of support for these projects may be appropriate and apparent for some time, could be addressed through
necessary, many other equally important areas of water more proactive action and support on the part of the
sector management receive negligible support, and the lack Government and IDPs.
of investment in some of the necessary tools of IWRM is
striking. Investment in these tools is essential if the water
sector in Viet Nam is to operate on a sustainable basis.

20
Issues and options
for the future
Having examined the current status of the various sub-sectors together
with some of the major issues facing each one, this section outlines some
of the cross-cutting issues facing the Water Sector in Viet Nam as a whole.

Institutional and legal arrangements. There are a number of grey

areas in terms of legal and institutional arrangements. At times, laws
appear to conflict, and this needs to be addressed in the current review
of the Law on Water Resources (LWR). The roles of different institutions
are not clearly understood leading to confusion and at times conflicting
messages to stakeholders. This applies generally to the relationship
between Ministries and Departments and Provinces, as well as to the
hierarchy of Laws governing the activities of both the public and private
participants. There is also considerable work required to properly
A number of generic cross-cut-
ting issues have been identi-
fied which are posing challenges
implement institutional arrangements based on the separation of across all of the water sub-sectors,
resource manager/regulator from the operators. as well as to the water sector itself.
Unless there are moves to address
International cooperation. More than 60% of surface water is some or all of these fundamental
generated outside the country. Nearly 57% of the total water is in the issues, it is unlikely that the myr-
Cuu Long basin and of that 95% comes from the Mekong River. In this
context, the intensive hydropower development that is occurring in other
iad issues facing the water sector
countries in the Mekong Region should be of major concern to Viet Nam. and its sub-sectors will be able to
It is in Viet Nam’s interest to ensure that the provisions of the Mekong be speedily and easily resolved -
River Commission’s Procedures for Notification, Prior Consultation and to the detriment of the economic,
Agreement under the 1996 Mekong Agreement are closely followed. environmental and social develop-
A further 16% of Viet Nam’s total water is found in the Red-Thai Binh
basin and 40% of this comes from China. China is also planning many
ment of the country.
hydropower projects, but there is little consultation with Viet Nam on
these proposals or their impacts on the country’s water resources.

Conflicting/uncoordinated uses. There is little planning or

coordination between the sectors, which leads to unintended, uncosted
and unmitigated impacts of one sector on another.

Inter-reservoir operation rules. The NWRS found that many reservoirs

have been designed without proper consideration of the adequacy of
downstream flows, leading to severe depletion of flows and increasing
salt intrusion, and reducing the access to good water for the residents
living in the lower reaches of rivers. Most projects for water resources
exploitation and use have been designed to serve one particular purpose,
with combined uses, if any, not planned. For a number of river basins a
complicated system of dams and reservoirs along rivers and tributaries
have been developing making it very difficult to manage flows and ensure
minimum flows are maintained. Presently, in some river basins, inter-
reservoir operation rules have been developed for flood control only,
with no rules developed to regulate flows in the dry season, resulting in
inappropriate water use, conflicts, degraded and dried-up rivers.

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

water during dry seasons, reservoir operation rules need to be urgently

21
 established. These will also be necessary in many cases to Water licensing. There is little meaningful coverage of
ensure water allocation and sharing plans are optimally water licensing in accordance with the LWR. Currently
implemented in many basins. licensing is seen as an end in itself, rather than a tool
to achieve water resource management, sharing and
protection objectives and outcomes. There is a lack of
River Basin Coordination. Viet Nam has found it
acceptance of the need for licensing by most sectors. It is
difficult to embrace this approach in a meaningful and
not only the central and provincial governments, but also
practical way. As a result, Government implementation
the IDPs, that are not aware of, or fail to recognize the
of the new river basin management decree (120/2008)
importance of, licensing of water resource exploitation
is critical.
and use, and of wastewater discharge.

Water Sharing Policies. The lack of water sharing

policies at a river basin scale is becoming increasingly
Participation. Viet Nam, aided by the international
community, is only now tentatively testing participatory
problematic. There is serious competition between
approaches. A significant cultural shift will be required,
sectors for dry season flows in some areas, and for the
both within government and outside, if these approaches
competing environmental, social and economic values
are to succeed and the benefits to the sectors and
that rely on natural rivers. Limits to the amount of water
communities are to be realised.
that can be extracted have not been established and new
extractions can take place at any time. Water rights are
not defined and there is no certainty for the sectors, or Capacity and awareness. Awareness of water
for private investment, as a result, the risks to existing resource management issues, and water sub-sector
development are unknown. This in itself is likely to issues, their interaction with other sub-sectors,
lead to inefficient and unsustainable investment and and the regulatory environment, is deficient in the
development. Government, Ministries, and provincial governments
and departments. The agencies themselves have little
understanding of, or practical training in, integrated
Impact assessment of projects. Currently the
approaches to resource allocation, development and
assessment of the water resource and environmental
protection. As the government role slowly changes to
impacts of projects is poor. Other sectoral interests, and
one of planner and regulator, a different skill set will be
the impacts on flows and other water uses, are not fully
required within Government agencies, both centrally
considered in the process from inception.
and at the provincial level. Capacity building is urgently
required, and potentially a re-distribution of human
Regulatory environments. The private sector is resources.
becoming increasingly involved in all sectors, and the
Government will slowly transform its functions from one
of operator to that of regulator. To provide for this, a strong
Financing. Water and water services are currently well
under-priced in Viet Nam and the water sector generally
regulatory environment, with clear, well communicated
has survived on subsidies and ODA. Furthermore, the
processes and rules that apply to both government and
pricing policy is neither efficient nor equitable and has
non-government operators, is required. At this stage,
led to a dearth of financial resources for infrastructure
this regulatory framework is not in place - roles and
management. Therefore, more investment in the water
functions are often unclear and appear conflicting, there
sector must recognize that water pricing is an essential
are few environmental safeguards built into sector policies,
instrument to enhance the sustainability of the resource,
laws, and supporting documents, and monitoring and
meet operation and maintenance costs, expand services,
compliance activities are largely absent. Clear water rights
maintain water resources management functions, etc.
are not in place.
Most improvements in the water related sectors will not
occur if governments do not consider developing socially
Performance of the State Enterprises. The acceptable pricing and tariff policies. This issue must also
performance of the State Enterprises is a major issue. recognize that in a number of situations, full cost recovery
On the one hand, some SOEs need far greater autonomy may not be achievable at all due to social considerations
from government interference to be provided with or because of previous inefficient decisions on capital
business flexibility within a regulatory framework that infrastructure. However, such costs should be clearly
protects communities, customers and the environment. agreed and disclosed as a transparent subsidy.
However, other SOEs are involved in production
activities of a commercial nature generally undertaken
by the private sector. Typically these SOEs are inefficient
Improvement in basic survey and information.
Good information, freely available and reliable, is
operators with a very poor environmental performance.
paramount; yet it is probably one of the greatest
Sadly, many of the worst polluters in the country are
problems for IWRM in the immediate future in Viet
Government-owned.
Nam. Currently, there is no accurate source of water
resources data and information. Little data is available,

22
except perhaps for surface water quantity. The current Climate change. The projected impacts of climate change
observation network, mainly for surface water, has so – more intensive rainfall runoff in the wet season, and sea
far only been used for the construction of irrigation and level rise – are of grave concern and the Government has
other reservoirs and works, and flood protection works. recently approved a NTP on this matter.
There is no comprehensive inventory and assessment of
water resources which all decision makers can use. Data
and information, obtained with state funding, is often
treated as an economic good. Tools for making decisions
in a data-poor environment are urgently required.

23
24
The Way Ahead

Water Sector Reform and Priorities – a

pathway to Integrated Water Resources
Management (IWRM)
The WSR contains more than 150 detailed recommendations,
which are grouped into five major outputs (see figure opposite),
so that the structure of the sector and the range of outputs can be
understood and assessed in a simple and logical way.
Together, the activities under these five output groups are intended
to achieve the overall goal for the water sector:
To manage, use and protect the water resources of Viet Nam
in an integrated and comprehensive manner to ensure that
economic growth, poverty reduction, environmental health
and the quality of life are sustainable in accordance with the
goals of the Government.

The immediate priorities of the WSR are as follows.

T he Water Sector Review
Project has set out a
comprehensive programme of
•  utput Group 1: The system of legislation, policies, and strategies
O activities and actions for water
on water resources developed sector reform. The overall aim
has been to design a package of
This Output Group is about setting the framework for IWRM measures that would start Viet
at the national level. Within this framework, provinces and
Nam on a pathway towards
others (e.g. Ministries, provincial planners, river basin
organisations) can make decisions at their regional or local
IWRM and make significant
level that are consistent with the key directions and policies achievements over a 5 to 10 year
of the Government. Without this framework, decisions timeframe.
and management will be ad-hoc with different ministries/
provinces applying different policy positions to deal with
the same issue.
The immediate priorities are: (i) revising the Law on Water
Resources; (ii) establishing stronger arrangements for the
operation of the National Water Resources Council; (iii)
preparing the strategic plan to implement the Government’s
National Water Resources Strategy; (iv) developing a
legal basis and implementation framework for river basin
management to achieve IWRM; (v) developing processes
and methodologies for determining the “real potential”
of water sources as a basis for sustainable management;
(vi) developing a water rights and sharing framework;
(vii) developing an environmental flows framework
and methodology; (viii) developing a national policy on
water sector financing; (ix) strengthening institutional
arrangements for urban water service delivery and natural
disaster management; and (x) strengthening international
relations for water management.

25
 •  utput Group 2: Improve the social environment
O sharing plans; (vi) urgently developing
and living conditions for vulnerable people, infrastructure for urban water supply; (vii)
especially the poor (including social empowerment) setting meaningful water prices and charges
This Output Group covers the fundamental for water supply and other service provision;
Government initiative for improving health, (viii) reforming water extraction licensing;
living conditions and opportunities of the (ix) undertaking a programme to reduce
rural poor including ethnic minorities. It also unaccounted for water in urban areas; and
covers activities that minimize the effects of (x) undertaking a programme to increase
natural hazards, and that share the benefits water efficiency in irrigation areas.
of major development with the people
directly affected by those developments •  utput Group 4: Water related biodiversity
O
conserved, pollution prevented and environmental
The immediate priorities are: (i) preparing a quality improved
strategic approach to selecting priorities for
pro-poor rural development and irrigation In practice, Output Groups 3 and 4 need to
diversification; (ii) preparing uniform and work together so that activities in one do not
appropriate health standards for both water unnecessarily compromise activities in the
supply and sanitation (rural and urban); (iii) other. The way to achieve this is through the
greatly strengthening the implementation of various planning processes particularly river
NPT II for rural water supply and sanitation; basin and land use planning.
(iv) preparing natural hazard management The immediate priorities are: (i) preparing
plans for the highest priority river basins water source protection plans3 for the Dong
(Huong, Tra Khuc, Thu Bon & Vu Gia and Nai basin, including Ba Ria - Vung Tau, and Red
Kone); and (v) implementing the concept of River; (ii) urgently developing infrastructure
benefit sharing for hydropower plants. for urban sanitation services; (iii) urgently
developing infrastructure for the treatment
•  utput Group 3: Effective management and
O of hospital waste; (iv) establishing community
sustainable use of water resources environmental values and objectives as a basis
for water source protection; (v) developing
Activities under this Output Group will
further implementation guidelines for Decree
provide the framework within which
67/2003 and lead capacity building; (vi)
decisions can be taken on how sectors,
reform of water extraction licensing; and
businesses, individuals, etc. can take and
(vii) provide incentives for the more effective
use water resources. These activities will
implementation of Decision 64/2003.
work within the framework provided under
Output Group 1. These activities are also
about the sustainable use of water resources • Output Group 5: Institutional capacity
– so that while environmental considerations strengthening
are factored in, environmental health itself is This is the ‘enabling’ group of outputs that
covered in Output Group 4. will provide the tools, skills and facilities
The immediate priorities are: (i) development to make the other outputs happen more
of inter-reservoir operation rules for priority effectively.
river basins, starting with the Red River; (ii) The immediate priorities are: (i) urgently
preparing water sharing component plans implementing National water and related
for highest priority river basins (Dong Nai, data and information management
Red, Thu Bon and Ma); (iii) preparing aquifer programmes for basic survey and inventory;
sharing plans for priority groundwater (ii) developing a National water data
areas requiring the management of water and information programme for climate
extractions (Red River delta aquifer, aquifer change; (iii) enhancing capacity at all
around HCMC, central highlands); (iv) levels (particularly for provinces) for the
preparing rapid assessment framework level implementation of IWRM approaches; (iv)
plans for areas with significant hydropower strengthening the involvement of farmers
development; (v) reviewing all proposals
for further reservoir/inter-basin diversion 3W
 here component river basin plans are proposed for the same river
against agreed framework and water basins under different output groups, they should be prepared together.

26
 in irrigation scheme decision making; and an infinitely more serious problem will need to
(v) implementing water education programs be resolved in the future. A significant injection
carefully targeted to community behaviour. of resources will be required and the IDPs should
assist with this.

Conclusions It remains for the Government, International

Development Partners and other interested
The clear conclusion from this Water Sector parties to digest the WSR report, determine
Review is that fundamental changes are their reaction to the program proposed and
urgently required if Viet Nam is indeed to to plan the roadmap for the future. In doing
start to make meaningful progress towards this, it must be recognized that some hard
IWRM, consistent with good international trade-offs will need to be made. It is unlikely
practice. A significant cultural shift will to be possible to achieve all the measures
be required, both within and outside of and fund all sub-sectors according to the
government, if these approaches are to recommendations, and priorities will have
succeed and the benefits to the sectors, to be set. In a poor country as intensively
governments and communities are to be exposed to economic growth as Viet Nam, it
realized. Traditional thinking and practices will be a challenge to precisely identify and
must be transformed and new concepts resolve the right trade-offs. This process
embraced. should be a cooperative activity between the
The recommendations and the activities Government and the IDPs. It is recommended
program set out what is required not only to that a common program between the
start Viet Nam on the pathway to IWRM, but Government and all of the main IDPs be
also to take significant steps along the path. developed, a detailed implementation plan
However, it is a very ambitious program and prepared, and a process for the review and
will require a number of essential perquisites audit of performance established.
for it to succeed:

In October 2008, the National Water

•  onsiderable understanding and support
C Resources Council held a high level meeting
from the Government. Central to this will be the to discuss the Draft Final Report of the
urgent implementation of the recommendation for Water Sector Review Project. The meeting
greatly strengthening the role of the NWRC and was chaired by Deputy Prime Minister
the establishment of a working structure under HE Hoang Trung Hai, and attended by
that, to ensure that the key Ministries can work Council members and high-level delegates
together on the key recommendations that affect from the Ministries and the International
many Ministries. Development Partners (IDPs). At the
•  onsiderable understanding and support
C meeting, the Government members and
from the IDPs. Increased resources in key the IDPs generally accepted the Report
areas are required for this, not only in new as setting out the water sector situation,
infrastructure (mostly water and sanitation) but and providing the broad thrust and future
just as importantly in IWRM – laws, policies, basin directions for water sector development in
planning, water rights, water source protection Viet Nam. The draft Report was accepted
and other IWRM tools. IDP input would be greatly as a basis for the future management and
strengthened if it were integrated under a common development of the sector.
framework based on all or part of the programme
presented in the Final Report of the Water Sector The meeting also agreed that, to provide a
Review Project. concentrated focus and drive to deal with the
critical challenges facing the sector, a National
•  onsiderable support from the Government
C
Target Program (NTP) would be prepared.
to MoNRE, as the state resource manager.
The Deputy Prime Minister agreed to this,
Without strong and effective leadership, IWRM
will be at best piecemeal and ineffective, traditional and with assistance from the Netherlands
approaches will prevail, and most river basins will Government, and coordination by ADB, the
continue on their current downward spiral. Basin NTP is currently under preparation.
communities will bear the brunt of inaction and

27 27
28
Appendix
River basin summaries
The Bang Giang – Ky Cung has about 1% of the national water resources, with its
surface water sources still in a relatively natural condition. This is due to the
relatively low population density, the inaccessibility of the terrain, and its
unsuitability for large scale irrigation development. Dry season water avail-
ability is adequate by international standards, but local or irregular water
shortages may occur. Ethnic minorities make up a very high proportion of a
sparse population that is amongst the poorest in the country, and they are
poorly serviced in terms of water supply and sanitation. The basin includes
terrestrial and aquatic ecosystems but, particularly below 1,000 m, shows
extensive forest clearing and severely reduced biodiversity. The rivers of this
basin both flow from, and to, China, making it susceptible to changes in wa-

T
ter management across the border. he following is a summary
of the main findings of
The Red - Thai Binh receives almost 40% of its water from China, so is vulnerable
the WSR for each river basin.
to changes in upstream water management. The basin has over 16% of the
nation’s water, produces over 25% of GDP, and has about 26% of total irriga- The basins can be seen on the
tion water use. The basin currently accounts for about a quarter of the na- map on Page 28 (opposite). It
tion’s total water use. The irrigation development is, however, relatively inef- should also be remembered
ficient and low value, being mainly for paddy rice. Hydropower in the basin
accounts for roughly 10% of all 2010 energy production capacity, and 25% of
that in terms of the data used,
the nation’s hydropower capacity. By 2025 hydropower generating capacity “current” generally means the
is projected to increase by 260% and will represent 93% of the technical and year 2006.
economic capacity of the basin.

Despite an apparent water richness, the basin has a third of the Country’s
population, with a high population density, and the annual water availability
per capita is low compared with other parts of the country. Dry season
water availability is considered adequate by international standards, but
local or irregular water shortages may occur. The current dry season stress
level is at the high end of the moderate stress range. Under 2025 projected
populations and water demands, the basin would be experiencing dry season
water shortages and the stress level would be in the high stress range.

Groundwater is a significant resource in the basin for urban, rural and

industrial uses. There are major concerns about the sustainability of current
extractions in some areas, and water levels have dropped by up to 30 meters
in parts of Hanoi. Groundwater quality is also being impacted by land use
activities, posing significant risks to users. The delta areas of the basin are
one of the areas potentially most affected by sea level rise.

The basin has large numbers of poverty affected people – over 6.5 million.
The concentration of urban populations, large areas of irrigation, and high
concentrations of some of the most significant industrial developments
in the country, including most craft villages, are resulting in serious water
quality deterioration in some areas, both surface water and groundwater.
Given the major urban population centers, the basin is fairly well serviced
in terms of water supply and sanitation, except in towns under the control
of district authorities. Navigation is important in the basin, particularly for
transport of heavy construction and materials that are difficult to transport
by other means. The coastal zone of the Red River Delta supports a great
diversity of wildlife, but with the high population and intensified aquaculture
production, the Delta is most at risk of losing the natural and semi-natural
wetland habitats and the essential functions they provide.

29
 The Ma basin has 30% of its water originating in Laos. The ba- have suffered as a result of this, and perhaps aquaculture
sin about 2.5% of the nation’s water, produces about 3% of practices. Disasters have a significant impact on the people
GDP, and has about 6.5% of total irrigation water use. The of the basin, with more than 12 people per million of total
annual water availability per capita is low compared with population killed each year as a result.
other parts of the country. Dry season water availability is
less than that considered adequate by international stan-
The Thach Han basin has about 0.4% of the nation’s water, pro-
dards and local or irregular water shortages occur. The ba-
duces about 3% of GDP, and has about 0.15% of total irriga-
sin has significant issues with water supply, suffering very
tion water use. It is the smallest in the country in terms of
high hydrologic stress assessed in terms of proportion of
natural water availability. The water resources are not very
flows extracted for use. The current dry season stress level
developed, and while dry season water availability per capi-
is at the high end of the high stress range. Hydropower
ta is adequate by international standards, local or irregular
generating capacity is projected to increase by 650% by
water shortages may occur. This will worsen by 2020, but
2025, representing over 70% of the technical and economic
even then water extractions would see the basin in the low
capacity of the basin. Under 2020 projected population and
stress range. Given the low levels of development, GDP per
water demands, in the dry season the stress level would be
capita is low compared to other basins. Supply of urban
at the 100% stress point – the total dry season water would
clean water at the district level is poor, as is the supply of
be needed to meet projected demands each year, clearly a
clean water to rural households - the case for much of the
totally unsustainable level.
Country. Disasters take a huge toll on this basin, with 15
There is a large amount of low value irrigation from fairly people per million of population killed on average each
inefficient schemes. The basin has the highest proportion year, and damage costs equivalent to more than 8% of the
of poor households of any basin, and a large ethnic basin GDP per year.
minority population, with low GDP per capita, and relative
poor environmental quality. It is, however, relatively well The Huong basin has 0.8% of the nation’s water, produces about
serviced in terms of water supply and sanitation, except in 0.7% of GDP, and has about 2% of total irrigation water use.
towns under the control of district authorities. The basin is largely unregulated by major dams at present
but three major hydropower dams are under construction.
The Ca basin has 22% of its water coming from Laos. The basin It has a high number of important native species. The
has nearly 3% of the nation’s water, produces about 3% of basin has a high population density, and dry season water
GDP, and has about 2.5% of total irrigation water use. Cur- availability per capita is considered just adequate by
rently the basin is not as water stressed as the Ma, with less international standards. The rivers are, however, currently
irrigation development, and therefore a greater volume of highly stressed in terms of the proportion of water that
available water per capita. Hydropower generating capac- is extracted. Current dry season extraction puts the river
ity is projected to increase by 133% by 2025, representing into the high stress category, which in turn will affect river
over 77% of the technical and economic capacity of the ba- health and the social and economic values that depend on
sin. By 2020 the Ca would be experiencing shortages in the this. Under 2025 projected population and water demands,
dry season and it would be at the high end of the moderate in the dry season the stress level would be in the middle of
stress range. A large proportion of households remain in the high stress range – almost all of the total dry season
poverty, and the supply of clean water at the district level is water would be needed to meet demands each year.
amongst the worst in the country. Rich forest still covers a
The basin has a relatively low GDP per capita, and ranks
long strip of the Truong Son Range, near the Laos border.
the lowest in terms of provision of clean water to rural
households. By far the greatest issue in the basin is the
The Gianh basin is naturally relatively water scarce, but it has a rela- impact of natural disasters. On average, more than 36
tively low population density, and the water resources are not people per million of population die each year as a result of
substantially developed, so the availability of water per capita natural disasters, and damage costs are equivalent to about
is adequate. The basin has about 1% of the nation’s water, pro- 6% of the basin GDP per year.
duces about 0.4% of GDP, and has about 0.1% of total irrigation
water use. By 2020 water extractions would see the basin at the
The Thu Bon & Vu Gia basin has about 2.5% of the nation’s water,
low end of the moderate stress range. Irrigation development
produces about 1.5% of GDP, and has about 2% of total ir-
in the basin is of very low value in terms of returns per unit of
rigation water use. It is relatively well endowed with water,
water use, compared to other basins.
but the water use appears to be very inefficient, and the
value of irrigation production per cubic meter of water use
The basin has a high number of important species, signifi- is low. In the dry season, as a result of extraction, the rivers
cant conservation areas, and the flows are largely unregu- of the basin are creeping up to the moderate stress level by
lated by dams. There are also 2 World Heritage areas in the international standards. Hydropower generating capacity
basin (Phong Nha and Ke Bang). Aquaculture has devel- is projected to increase by 275% by 2025, representing over
oped on the back of these relatively natural flows. A large 88% of the technical and economic capacity of the basin. By
proportion of substantially rural households have, howev- 2020 water extractions would see the basin in the middle of
er, been assessed as living in poverty, and unemployment the moderate stress range. Again, the impacts of disasters
rates are high. Provision of clean water services is poor in on this central provinces basin are high, with 23 people per
urban areas controlled by both the province and district au- million of population killed on average each year, and dam-
thorities, and sanitation services are available in less than age costs equivalent to about 7% of the basin GDP per year.
half of district town households. Water quality appears to This basin also has high conservation importance.

30
The Tra Khuc basin has a relative small catchment area and total about 7.3% of total irrigation water use. Current annual
available water is quite limited. The basin has about 1.1% water availability per capita is considered adequate by
of the nation’s water, produces about 0.8% of GDP, and international standards, but local or irregular water
has about 1.1% of total irrigation water use. Dry season shortages may occur. In the dry season, the picture is
flows are moderately stressed by international standards. much more dramatic, with water availability per capita
Hydropower generating capacity is projected to increase classed as almost ‘water short’. Water is transferred
by 2025, representing over 26% of the technical and out of the Dong Nai for hydropower generation in the
economic capacity of the basin. Under 2025 projected SERC basins. Some further hydropower developments
populations and water demands, in the dry season the are planned representing over 90% of the technical and
stress level would be in the lower end of the high stress economic capacity of the basin. Although it has a high
range. Ethnic minorities make up a high proportion of population density, water use per capita is also low, as
the population that has the second lowest GDP per capita agriculture plays a smaller role than in other basins. The
of any basin in the country. The basin is poorly serviced rivers are, however, classed as of high hydrologic stress
in terms of water supply and sanitation. It has significant in the dry season. Under 2025 projected population and
areas of aquaculture development, and consequently water demands, the basin would be experiencing serious
seems to have significant water quality problems. The dry season water shortages and the stress level would be
impacts of disasters on this basin are high, with 24 people in the middle of the high stress range – almost all of the
per million of population killed on average each year, and total dry season water would be needed to meet demands
damage costs equivalent to more than 1% of the basin each year.
GDP per year.
The basin is comparatively well serviced in terms of water
supply and sanitation, but the high population density
The Kone basin is a small coastal system and total available and concentration of industrial activities are causing
water is quite limited. The basin has about 1% of the nation’s significant water quality problems. The basin is highly
water, produces about 1.1% of GDP, and has about 1.4% regulated by dams for generation of almost a quarter of
of total irrigation water use. According to international the nation’s hydropower. The hydrology has, therefore
standards of water availability, local or irregular water been significantly altered, with consequent impacts on
shortages may occur. The basin suffers from moderate river health. Navigation is important in the Dong Nai,
dry season water stress in terms of extractions compared particularly for transport to the industrial zones of heavy
with flows. Under 2025 projected population and water construction and plant materials that are difficult to
demands, in the dry season the stress level would be in transport by other means. Groundwater is a significant
the middle of the high stress range – almost all of the total resource in the basin for urban, rural and industrial uses.
dry season water would be needed to meet demands each There are major concerns about the sustainability of
year. The population density is high and rural sanitation current groundwater extractions in some areas, and water
is poor. There are significant areas of aquaculture in the levels have dropped by up to 30 meters in Ho Chi Minh
basin. Again, disasters play a significant role in the lives of City. Groundwater quality is also being impacted by land
people in the basin, with more than 22 people per million use activities, posing significant risks to users.
of population killed on average each year, and damage costs
equivalent to about 1% of the basin GDP per year.
The SERC basin has about 1.1% of the nation’s water, produces
about 10.5% of GDP, and has about 2.2% of total irrigation
The Ba basin is moderately sized, and has about 1.2% of the water use. It is one of the 2 most hydrologically stressed
nation’s water, produces about 0.1% of GDP, and has
in the country, with as much as 75% of the dry season
about 2.5% of total irrigation water use. Both the annual
flows being extracted – a very high stress classification.
and dry season water availability per capita appear to be
Even on an annual basis, the basins would be classed as
adequate by international standards. However, both the
annual and dry season water exploitation as a proportion moderately stressed. Including the inter-basin transfers in
of surface water are quite high, with the basin categorised from the Dong Nai, dry season water availability per capita
as of high hydrological stress in the dry season. Under is the lowest in the country, classed as ‘water short’ by
2025 projected populations and water demands, in the international standards. Under 2025 projected population
dry season the stress level would be in the middle of and water demands, the basin would be experiencing
the high stress range – almost all of the total dry season serious dry season water shortages and the stress level
water would be needed to meet demands each year. would be well above the 100% line – even more than the
Ethnic minorities make up a significant proportion of the total of all dry season water would be needed to meet
population, and the GDP per capita is low. The basin is demands each year.
highly regulated by dams, but the value of irrigation per
cubic meter of use is low. Water supply and sanitation The urban population has relatively good clean water and
services are generally relatively poor. About 7 people per sanitation services, but the same cannot be said for the
million of population are killed on average each year by rural areas. With a large industrial sector, the GDP per
natural disasters, and damage costs equivalent to about capita is the highest in the Country. This figure is, however,
1.6% of the basin GDP. significantly reduced if the economic activity associated
with oil development of Ba Ria - Vung Tau is removed. There
is a significant amount of aquaculture development in the
The Dong Nai basin is the home to HCMC, and significant provinces in this basin. Disasters also have a significant
industrial development. The basin has about 4.2% of impact on these basins, with more than 15 people per
the nation’s water, produces over 28% of GDP, and has million of population killed on average each year.

31
 The Se San basin has about 1.6% of the nation’s water, more than adequate. The river does, however, fall into
produces about 0.6% of GDP, and has about 0.3% of total the moderate stress category in terms of proportion
irrigation water use. Over 70% of the water in the Se San of flows extracted during the dry season. By 2020 the
flows to Cambodia, and there have been, and will continue basin would, in the dry season, be at the low end of the
to be, significant trans-boundary issues associated with high stress range.
this basin. It is developed for hydropower - it accounts
for about 16% of the nation’s hydropower generating The extensive irrigation water use occurs almost exclusively
capacity. Hydropower generating capacity is projected for paddy. The basin also hosts over 65% of the country’s
to increase by 114% by 2025, representing over 92% of aquaculture, although the economic return per cubic
the technical and economic capacity of the basin. Other meter of water used appears to be low compared to other
surface water development is not extensive, and the rivers areas. Groundwater is also used extensively in the Mekong
are not considered stressed. Water availability per capita Delta, and the sustainability of current extractions in
is also high and this is not expected to change much by some areas is being questioned. Water levels are declining,
2020. Flow patterns have, however, been changed as a and there is some evidence of intrusion of salt water
result of the hydropower generation. The largely ethnic into the fresh groundwater as a result of extractions.
population does not appear to have shared in the benefits The densely populated Cuu Long has poor levels of rural
of hydropower development in the basin, and there has and urban sanitation at the district level. This, and the
been significant dislocation of communities. The basin high concentration of aquaculture activities, is causing
has a large proportion of households assessed as being in unacceptable water quality deterioration. The basin has
poverty, and the mountainous region is poorly serviced high conservation values, especially for wetlands. It is
in terms of water supply and sanitation. Water used for also likely to be highly impacted by sea level rise. About
irrigation provides a high return per cubic meter of water 8.5 people per million of population are killed on average
used, being for high value crops such as tea and coffee. each year from natural disasters, and damage costs are
Groundwater is used extensively in this basin, both for equivalent to about 1.1% of the basin GDP.
domestic supplies and irrigation. There is increasing
competition for the groundwater, and extraction appears
to be unsustainable in some areas, with water levels
declining, and water supply becoming more difficult
during the dry season. This in turn will have an impact on
groundwater contributions to rivers flows.

The Sre Pok basin has about 1.8% of the nation’s water,
produces about 1.6% of GDP, and has about 1.2% of total
irrigation water use. About 50% of the surface water in
the Sre Pok flows to Cambodia, and there is currently
no formal bilateral agreement on water management.
Hydropower generating capacity is projected to increase
by 112% by 2025, representing over 94% of the technical
and economic capacity of the basin. By 2020 the basin
would be experiencing shortages in the dry season
and it would be at the high end of the moderate stress
range. The basin is also a relatively poor mountainous
area that is poorly serviced in terms of water supply and
sanitation. Groundwater is also used extensively in this
basin, both for domestic supplies and irrigation. There
is increasing competition for the groundwater, and
extraction appears to be unsustainable in some locations.
Water levels are dropping, and access is becoming more
difficult during the dry season. This in turn will have an
impact on groundwater contributions to rivers flows.

The Cuu Long basin has nearly 60% of the nation’s water,
produces about 17.3% of GDP, and has over 44% of
total irrigation water use. The Cuu Long receives 95%
of its water from upstream countries, and is vulnerable
to the water use and management arrangements that
exist or are proposed in these. Development in the
mid to upper basin remains a significant issue for the
entire Mekong, and Viet Nam’s continuing support for,
and strengthening of, the Mekong River Council and
Commission will be critical in this regard. The Cuu Long
has nearly 60% of Viet Nam’s water resources, and both
annual and dry season water availability per capita are

32
Acknowledgments
The Water Sector Review was a joint project of the Government of Viet Nam and a number of international
development partners, and took place under the Office of the National Water Resources Council. The international
input is being led by the Asian Development Bank, with co-financing from the governments of the Netherlands,
Australia and Denmark. The project was undertaken by Kellogg Brown & Root Pty Ltd under a contract with the
ADB.

Text compiled and edited by able communication.

Photographic images (Pages 6,8,20,24) courtesy of David Hebblethwaite.

Brochure designed by Luck House Graphics.

References
Note that contextual information and all of the documents and reports prepared under the Project are available at
the website: www.vnwatersectorreview.com.
Water: Vital for Viet Nam’s Future
The Water Sector Review is a joint project of the Government of Viet Nam and its international develop-
ment partners. The project’s immediate objective is to review the state of the Viet Nam water sector and
to establish a common framework to guide development decisions in the sector over the forthcoming
10 years.
The project was funded by a number of development partners (the Royal Netherlands Embassy, Danida
and AusAID), and led by the Asian Development Bank (ADB). The implementation of the project is taking
place under the Office of the National Water Resources Council (NWRC). The World Bank funded a review
of the irrigation and drainage subsector as part of the overall water sector review.
This brochure presents a summary of the state of Viet Nam’s water resources within the context of rapid
population and economic growth and structural change. It focuses on the Integrated Water Resources
Management (IWRM) approach to management, and the arrangements needed to start Viet Nam on this
pathway. It outlines in brief some of the complex and related issues that need to be included in a reform
programme to provide the basis for investments over the next 10 or more years.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member
countries substantially reduce poverty and improve the quality of life of their people. Despite the region’s
many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less
than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty
through inclusive economic growth, environmentally sustainable growth, and regional integration.
Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for
helping its developing member countries are policy dialogue, loans, equity investments, guarantees,
grants, and technical assistance.

Asian Development Bank

6 ADB Avenue, Mandaluyong City

1550 Metro Manila, Philippines
www.adb.org
www.vnwatersectorreview.com Printed in Viet Nam