8a - Blue Economy Scenarios For Vietnam ENG

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Disclaimer
The views expressed in this publication are those of the author(s) and do not necessarily
represent those of the United Nations, including UNDP, or the UN Member States.

The designations employed and the presentation of material on in this publication do


not imply the expression of any opinion whatsoever on the part of the Secretariat of the
United Nations or UNDP concerning the legal status of any country, territory, city or area
or its authorities, or concerning the delimitation of its frontiers or boundaries.

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TEAM

The report was prepared by a team led by


Jeremy Hills, Bui Tat Thang, Dao Xuan Lai, Ta
Dinh Thi. The core team was composed of
Cao Le Quyen, Nguyen Duc Cuong, Nguyen
Hong Minh, Hoang Dao Cam, Nguyen Thi
Phuong Hien, Nguyen The Chinh. Secretariat
team includes Hoang Thanh Vinh, Jay
Malette, Tran Hoang Yen, Le Minh Son, Phan
Phuong Thanh. Contributors to the report
were Chu Hoi, Nguyen Huy Hoang, Luu Anh
Duc, Nguyen Ngoc Son, Nguyen Le Tuan, Du
Van Toan, Lai Van Manh, Nguyen The Thong,
Nguyen Thi My Hanh.

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FOREWORD
The global Ocean Economy contributes an estimated USD 3 trillion per year, or about five percent of the
world’s GDP and comprises industries ranging from oil and gas, shipping and ports to renewable energy,
fisheries, marine ecosystems and tourism. The value of the marine economy in the APEC region alone
was estimated to be USD2.06 trillion in 2015, contributing approximately 4.7 percent of total APEC GDP
(APEC, 2020). In Viet Nam, the Ocean Economy is expected to contribute up to 10 percent of GDP by 2030
(Resolution No.36).
The Ocean covers more than three quarters of the planet and absorbs up to 30 percent of carbon dioxide
produced by humans. Viet Nam’s long coastline of more than 3,260 km provides great natural capitals
for economic growth for its 28 sea and coastal provinces. Viet Nam’s coastline and seas offer significant
potential for inshore and offshore wind power, which, if sustainably developed, will support energy
security and help Viet Nam meet its commitment of net zero emissions by 2050.
However, the Ocean is faced with increasing threats and multiple risks posed by climate change, natural
disasters, environmental pollution, over exploitation of natural resources, and unsustainable economic
activities. Global warming and marine litter are threatening marine resources, including widespread
bleaching of coral reefs. Globally, an estimated 8 to 20 million tonnes of plastic enter the Ocean every
year. In Viet Nam, around 2,000 tonnes of plastic waste leaks from the country into the Ocean every day1.
It is estimated that there will be more plastic than fish in the Ocean by 2050.
Against this background, UNDP is honoured to produce the first ever report “Blue Economy Scenarios for
Viet Nam” in partnership with the Viet Nam Administration of Seas and Islands (VASI) of Ministry of
Natural Resources and Environment. The intention of the scenarios is to support Viet Nam to accelerate
the development of its Blue Economy and realize the objectives of Resolution 36/NQ-TW on sustainable
development of the marine economy and protection of the Ocean of Viet Nam to 2030, with a vision to
2045. The report has benefited from insights, research and contributions from a team of international
and national experts from Viet Nam Institute for Development Strategies (MPI), Institute of Fisheries
Economic and Planning (MARD), Institute of Energy (MOIT), Viet Nam Petroleum Institute (Petro Viet
Nam), Institute for Tourism Development Research (Viet Nam Administration of Tourism), Transport
Development & Strategy Institute (MOT), Institute of Strategy and Policy on Natural Resources and
Environment (MONRE).
This report covers the six key ocean economic sectors of fishery, renewable energy, oil and gas, tourism,
transportation, environment and ecosystem. Firstly, for each economic sector, a baseline scenario for up
to 2030 was developed that reflects existing and planned policy and strategies set by the governmental
administrations of Viet Nam within each sector to 2030. Secondly, a blue scenario was developed with
the aim to optimize socio-economic and environmental benefits. This report shows that blue scenarios
lead to benefits over and above the baseline scenarios in terms of GDP for all marine sectors and also an
increase in GNI per capita beyond the baseline scenarios.
In the context of the COVID-19 pandemic, key Blue Economy sectors were heavily impacted with small-
scale marine-based workers hit hardest. What is needed now is a sustainable and equitable blue rebound
from the COVID-19 pandemic. This report provides recommendations on how Viet Nam could develop its
Blue Economy to meets the needs of both planet and people such that noone is left behind.

Caitlin Wiesen
Resident Representative
United Nations Development Programme

1
https://www.vn.undp.org/content/vietnam/en/home/presscenter/undp-in-the-news/marine-plastic-waste-an-urgent-issue-in-coastal-vit-nam.html
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FOREWORD

Viet Nam is a marine country, with a coastline of more than 3,260 km and over 3,000 islands, including
two archipelagos Paracel Islands (Hoang Sa) and Spratly Islands (Truong Sa). The marine economy is an
important driving force for socio-economic development, environmental protection and international
cooperation. Population in coastal provinces and cities accounts for more than 50% those in the country,
with majority of the labour here are working on marine economic sectors; 28 coastal provinces and cities
contribute over 60% to the national GDP.
Ocean economy and marine economic sectors play an increasingly important role in the economic
recovery from impacts of COVID-19 and promote economic growth in the country.
However, Viet Nam's marine economic development is not sustainable. Marine economic development
has not been harmoniously linked with social development and environmental protection, but also
ensuring defence and security, external relation and international cooperation. Pollution and
environmental incidents in some places in the sea and coastal areas are still serious, plastic waste
pollution has become an urgent problem; marine ecosystems, marine biodiversity is reduced; marine
resources are unsustainably exploited.
Fully recognising the important role and contribution of the marine economy, Viet Nam has promulgated
policies and actions for sustainable development of the marine economy. The 12th Party Central
Committee issued Resolution No. 36-NQ/TW dated October 22, 2018, on the Strategy for sustainable
development of Viet Nam's marine economy to 2030, with a vision to 2045. To institutionalize and
concretize the Party's policy, the Government of Viet Nam has issued Resolution No. 26/NQ-CP dated
March 5, 2020, on the Master Plan and 5-year plan for the implementation of Resolution No. 36-NQ/TW.
Recently, the Prime Minister issued Directive No. 31/CT-TTg dated 24/11/2021 on renewing and
strengthening the implementation of the Strategy for sustainable development of Viet Nam's marine
economy to 2030, with a vision to 2045.
Blue economy is a development trend in the world, especially for marine countries. The report "Blue
economy scenarios for Viet Nam" is one of the first studies on marine economic development using the
concept of blue economy. The report clarifies the concept of blue economy and provides an assessment
of several key Viet Nam's marine economic sectors, thereby identifying potentials and building scenarios
for the future. The report brings forward several important recommendations to promote the blue
economy in Viet Nam, contributing to the successful implementation of the Strategy for Sustainable
Development of Viet Nam's marine economy until 2030, vision to 2045 and the United Nations'
sustainable development goals, including SDG14 on marine resources and environment.
We hope this will be a valuable document for policy makers, scientists, and readers./.

Dr. Ta Dinh Thi


15th National Assembly's Delegate
Vice Chairman of the National Assembly's Committee on Science, Technology and Environment
Former Director General of the Viet Nam Administration of Seas and Islands

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Key findings:
 The blue economy concept has been defined in a number of ways, but
fundamentally it is about integrating marine-based economic development that
leads to improved human well-being and social equity, while simultaneously
reducing environmental risks and ecological scarcities.
 A review of the main marine economic sectors of Viet Nam was undertaken. Sectors
covered were fisheries and aquaculture; oil and gas; marine renewable energy;
coastal and marine tourism; the maritime sector; and environment and ecosystems.
 A number of blue scenarios to 2030 were developed for each of these marine
economic sectors. The blue scenario for each sector was based on feasible sector-
based interventions in policy, governance and management which were closely
aligned to the blue economy concept. Blue scenarios were compared to baseline
scenarios in which the existing approach to sector development was pursued until
2030.
 The blue scenarios lead to benefits in terms of GDP, GNI and GNI per capita for all
marine sectors in comparison with the baseline scenario. The study shows that with
the blue scenario applied, the GDP of the blue scenario will be VND 296 thousand
billion (USD $12.9 billion) more than the baseline scenario by 2025 and VND 538
thousand billion (USD $23.5 billion USD), respectively to the year 2030.
 The interactions between the economic sectors were generally positive or quite
neutral, suggesting that there is still room for expansion of marine economic
development. However, many of the economic sectors were negatively linked to
environment and ecosystems, suggesting that further expansion could lead to
environmental degradation.
 The blue scenario indicates that ecosystem values linked to habitat quality, and the
extent of key habitats (mangrove, seagrass, coral reefs and lagoon) could be
increased. Thus, marine economic expansion could be accompanied maintenance
or improvement of the quality of the environment.
 Facilitating the marine economy can have many benefits across the Sustainable
Development Goals (SDGs) and climate change targets. The marine economy can be
a means for realising all 17 SDG Goals, particularly industry, innovation and
infrastructure (SDG-9), decent work and economic growth (SDG-8), responsible
production and consumption (SDG-12) and poverty alleviation (SDG-1). The blue
economy can also support progress in meeting long-term and higher climate
ambition of the country, especially net-zero emissions by 2050.
 The study indicates that following the blue scenarios will significantly increase per
capita income (GNI/capita). By 2025, under the baseline scenario GNI per capita is
v
Contents

LIST OF ABBREVIATIONS ......................................................................................................1


1. Introduction to the Blue Economy....................................................................................4
1.1. Orientation to this Blue Economy study ............................................................................ 4
1.2. Defining the blue economy ................................................................................................ 5
1.3. The national blue economy context ................................................................................... 7
1.4. Policy initiatives for ocean development ......................................................................... 12
2. Blue economy sector overview ......................................................................................15
2.1. Introduction ...................................................................................................................... 15
2.2. Fisheries & Aquaculture ................................................................................................... 15
2.2.1. Resources ................................................................................................................... 15
2.2.2. Present status............................................................................................................. 16
2.2.3. Interaction with SDGs ................................................................................................ 18
2.3. Oil & gas ............................................................................................................................ 19
2.3.1. Resources ................................................................................................................... 19
2.3.2. Present status............................................................................................................. 20
2.3.3. Interaction with SDGs ................................................................................................ 22
2.4. Marine renewable energy ................................................................................................ 23
2.4.1. Resources ................................................................................................................... 23
2.4.2. Present status............................................................................................................. 24
2.4.3. Interaction with SDGs ................................................................................................ 25
2.5. Coastal and marine tourism ............................................................................................. 26
2.5.1. Resources ................................................................................................................... 26
2.5.2. Present status............................................................................................................. 27
2.5.3. Interaction with SDGs ................................................................................................ 28
2.6. Maritime sector ................................................................................................................ 30
2.6.1. Resources ................................................................................................................... 30
2.6.2. Present status............................................................................................................. 30
2.6.3. Interaction with SDGs ................................................................................................ 32
2.7. Environment, Biodiversity & Ecosystem Services ............................................................ 34
2.7.1. Resources ................................................................................................................... 34
2.7.2 Assessment of the current state of the environment and biodiversity in the process of
economic development in Viet Nam .................................................................................... 34
2.7.3. Interaction with SDGs ................................................................................................ 35
3. Blue economy scenarios .................................................................................................37
3.1. Introduction ...................................................................................................................... 37
3.2. Fisheries and aquaculture ................................................................................................ 38
3.2.1. Baseline Scenario ....................................................................................................... 38
3.2.2. Blue Scenario .............................................................................................................. 41
3.3. Oil & gas ............................................................................................................................ 48
3.3.1 Baseline scenario......................................................................................................... 48
3.3.2. Blue Scenario .............................................................................................................. 50

vii
3.4. Marine renewable energy................................................................................................ 52
3.4.1 Baseline Scenario ........................................................................................................ 52
3.4.2 Blue Scenario .............................................................................................................. 53
3.5. Coastal and marine tourism ............................................................................................. 58
3.5.1 Baseline Scenario ........................................................................................................ 60
3.5.2 Blue Scenario .............................................................................................................. 62
3.6. Maritime sector................................................................................................................ 67
3.6.1 Baseline scenario ........................................................................................................ 75
3.6.2 Blue scenario .............................................................................................................. 75
3.7. Environmental protection, biodiversity and marine ecosystem services ....................... 78
4. Comparative assessment ............................................................................................... 83
4.1. Supporting SDG delivery .................................................................................................. 83
4.2. Interaction between marine sectors ............................................................................... 91
4.3. Scenarios for blue sustainable economic development .................................................. 93
4.4. Ensuring a sustainable environment ............................................................................... 96
5. Challenges and opportunities ...................................................................................... 100
5.1. Recognition of synergies and trade-offs in the ocean system....................................... 100
5.2. Key challenges for the blue economy ............................................................................ 100
5.3. Key opportunities for the blue economy ....................................................................... 102
6. Recommendations ...................................................................................................... 106
REFERENCES .................................................................................................................... 110
APPENDIX – SECTORAL REPORTS..................................................................................... 120
Appendix A. Fisheries & Aquaculture .............................................................................. 120
Appendix B. Oil & gas ...................................................................................................... 129
Appendix C. Marine renewable energy ........................................................................... 142
Appendix D. Coastal and marine tourism ........................................................................ 152
Appendix E. Maritime sector ........................................................................................... 167
Appendix F. Environment, Biodiversity & Ecosystem Services ......................................... 181

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LIST OF FIGURES
Figure 1.1. The stakeholder-focused SDGs linkage to the Blue Economy ................................................................ 6
Figure 1.2. Administrative map of Viet Nam ............................................................................................................ 8
Figure 1.3. Natural map of Southeast Asia............................................................................................................... 8
Figure 1.4. Structural change among marine economic sectors in the period 2010-2019 ....................................10
Figure 1.5. Labour structure in marine economic sectors in the period 2010-2019..............................................11
Figure 1.6. Gross National Income (GNI) of marine economic sectors in the period 2010-2019 ..........................11

Figure 2.1. Aquaculture and capture fisheries production in the period 1999-2019 ............................................17
Figure 2.2. Oil & gas production during 2010-2020 (VPI) ......................................................................................21
Figure 2.3. Tourism arrivals to provinces in Viet Nam coastal regions ..................................................................28

Figure 3.1. Decrease of hotel and food, beverage revenue in major tourism destinations ..................................37

Figure 4.1. The additive interaction of marine sectors on delivery of the 17 SDGs...............................................90
Figure 4.2. The additive interaction between targeted marine economic sectors on each sector .......................92
Figure 4.3. Impact trend of diferent development scenarios on mangrove value and area in Viet Nam
over the period of 2020-2030 ................................................................................................................................98

LIST OF TABLES

Table 2.1. Linkage of aquaculture and capture fisheries to Viet Namese SDGs ................................................... 18
Table 2.2. The impacts of the oil & gas sector on the SDGs.................................................................................. 22
Table 2.3. Information and revenue from electricity sales of the first two offshore wind power projects in
Viet Nam in the period up to 2019 ....................................................................................................................... 25
Table 2.4. The Interaction between offshore wind power development with SDGs ............................................ 25
Table 2.5. Tourism & SDGs .................................................................................................................................... 29
Table 2.6. Maritime Development and SDGs ........................................................................................................ 32
Table 2.7. Environment, Biodiversity & Ecosystem Services and SDGs ................................................................ 35

Table 3.1. Baseline vs blue scenarios for next period 2020-2030 ..........................................................................37
Table 3.2. Projection for GDP, GNI and GNI per capita (2030) at real price in 2020 of marine capture
and aquaculture in the next period of 2020-2030 .................................................................................................46
Table 3.3. Projection for the contribution of GDP, GNIs of marine fisheries (2030) at real price in 2020
to national GDP and GNIs in the next period 2020-2030 for the blue scenario ....................................................47
Table 3.4. Projection for the contribution of GDP, GNIs of marine fisheries (2030) at real price in 2020
to national GDP and GNIs in the next period 2020-2030 for the baseline scenario. .............................................47
Table 3.5. Wood Mackenzie’s oil price forecast at the end 2021 (Unit: USD/barrel) ............................................49
Table 3.6. Summary of the Baseline Scenario ........................................................................................................49
Table 3.7. Summary of the blue scenario...............................................................................................................50
Table 3.8. GDP, GNI, GNI per capita of oil & gas industry in period of 2020 – 2030 (unit: thousand
billion VND) ............................................................................................................................................................51
Table 3.9. Main indicators of two scenarios proposal for offshore wind development by locations in
2030 .......................................................................................................................................................................54
Table 3.10. Two offshore wind power development scenarios at nominal prices ................................................55

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Table 3.10. Two offshore wind power development scenarios at nominal prices ................................................ 55
Table 3.11. GDP of offshore wind power sub-sector in Blue Scenario (selected scenario) in national
GDP in period of 2020-2030................................................................................................................................... 58
Table 3.12. Projection of tourism arrivals of the whole country to 2030 .............................................................. 59
Table 3.13. Major tourism development indicators - Baseline scenario ............................................................... 61
Table 3.14. Major tourism development indicators - Blue Scenario ..................................................................... 65
Table 3.15. Comparing two development scenarios at nominal and real price (2010) ......................................... 66
Table 3.16. Summary of scenarios for the maritime industry up to 2030 ............................................................. 76
Table 3.17. Comparative comparison of GDP, maritime GNI in GDP, national GNI for the period 2020-
2030 according to the Baseline Scenario ............................................................................................................... 77
Table 3.18. Equivalence comparison of GDP, maritime GNI in GDP, national GNI in the period 2020-
2030 under the Blue Scenario ................................................................................................................................ 77

Table 4.1. The scale shows the relationship between the development of marine economic sectors and
the Sustainable Development Goals ......................................................................................................................83
Table 4.2. Evaluate the correlation between the marine sectors and SDGs .........................................................84
Table 4.3. Interaction between sectors .................................................................................................................91
Table 4.4. Summary of development scenarios for major marine economic sectors ...........................................94
Table 4.5. Scenarios developed for the environment ............................................................................................96
Table 4.6. Area and ecosystem assets table of four types of marine ecosystem (mangrove, coral reef,
seagrass and lagoon) under three scenario options ..............................................................................................99

x
LIST OF ABBREVIATIONS
Abbreviations Meaning
BCG Boston Consulting Group
BCM Billion Cubic Meters
BDPOC (Bien Dong) East Sea Oil and Gas Operating Company
BE Blue Economy
BOD Biochemical oxygen demand
BSR Binh Son Refining and Petrochemical Company
CPI Consumer Price Index
CPUE Catch per unit effort
D-FISH Directorate of Fisheries (Viet Nam)
DO Dissolved Oxygen
EEZ Exclusive Economic Zones
ENI National Oil and Gas Group of Italy
EVFTA EU-Viet Nam Free Trade Agreement EVFTA
EVN Electricity Viet Nam Corporation
FDI Foreign Direct Investment
FIT Feed-in-tariff
FPSO Floating Production, Storage and Offloading
FSO Floating Storage Offloading
GDP Gross Domestic Product
GHG Greenhouse Gas
GNI Gross National Product
GO Gross Output
GSO General Statistics Office
HPP Hydro Power Plant
IC Intermediation Cost
IHRDC International Human Resource Development Corporation
IMO International Maritime Organization
INDC Intended Nationally Determined Contributions
IPCC Intergovernmental Panel on Climate Change
JOA Joint Cooperation Agreement
JOC Joint Operating Contract
KNOC Korea National Petroleum Corporation
KTOE Kilotons of oil equivalent
kWh Kilo Watts per hour
LCOE Levelized Cost of Energy

1
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
MARD Ministry of Agriculture and Rural Development
MoIT Ministry of Industry and Trade
MoNRE Ministry of Natural Resources and Environment
MPI Ministry of Planning and Investment
MSY Maximum Sustainable Yield
Mt Megaton
MW Megawatt
NDC Nationally Determined Contributions
NI Number of Individuals
NS Number of Species
NSRP Nghi Son Refinery and Petrochemical Union
International Convention on Readiness, Response and Cooperation to Combat
OPRC
Petroleum Pollution
PAH Total Polyaromatic Hydrocarbon
PDP Power Development Plan
PPI Producer Price Index
PQPOC Phu Quoc Petroleum Operating Company
PSC Product Sharing Contract
PTSC Petroleum Technical Services Corporation
PTTEP Petroleum Exploration Production Company (Thailand)
PV Photovoltaic
PV DRILLING Petro Viet Nam Drilling and Drilling Services Corporation
PV TRANS Petro Viet Nam Transport Joint Stock Corporation
PVC Viet Nam Oil and Gas Construction Joint Stock Corporation
PVCHEM Petro Viet Nam Chemicals and Services Corporation
PVEP Petro Viet Nam Exploration Production Corporation (Viet Nam)
PVFCCo Petro Viet Nam Fertilizer and Chemicals Corporation
PVGAS Petro Viet Nam Gas Corporation
PVN Petro Viet Nam
R/P Reserve/Product Ratio
RIMF Research Institute for Marine Fisheries
RRR Reserve Replacement Rate
SDG Sustainable Development Goals
THC Total Carbon Content
TOC Total Organic Carbon
TPP Thermal Power Plant

2
TSS Total Suspended Solids
UNCLOS International Convention on the Law of the Sea
UNDP United Nations Development Program
UNFCCC United Nations Framework Convention on Climate Change
USGS United States Geological Survey
VIFEP Viet Nam Institute of Fisheries Economics and Planning
VN Viet Nam
VND Viet Nam Dong (currency)
VPI Viet Nam Petroleum Institute
VSP Viet Nam-Russia Joint Venture Enterprise
WACC Weighted average cost of capital

3
1. Introduction to the Blue Economy

1.1. Orientation to this Blue Economy study

This report focuses on the contribution of the Blue Economy (BE) to the socio-
economic development in Viet Nam. This report will help support the realization of the
objectives of the Strategy for Sustainable Development of the Marine Economy of Viet
Nam Until 2030, Vision to 2045 (Resolution 36/NQ-TW), as well as assist Viet Nam in
meeting its stated goals on socio-economic development and sustainable use and
protection of marine resources.

This synthesis report amalgamates six in-depth thematic technical reports drawn from
specific economic areas related to the BE: Marine Renewable Energy, Oil &
Gas/Marine Resources, Aquaculture & Fisheries, Coastal & Marine Tourism, Maritime
(marine transportation) and Environment, Biodiversity & Ecosystem Services. Each
sector/sector thematic report uses the same general framework, which includes an
assessment of several key national economic indicators for the sector, and its link to
the Sustainable Development Goals (SDGs), interactions between the sectors and
future scenarios to 2030 under different management approaches (baseline and blue
scenarios). However, since each sector has its own characteristics and differences in
terms of extent, detail and quality of information, there are some differences between
each sector analysis.

This study attempts to synthesize the multiple sectors operating in the blue economy
and search for development trajectories where BE “win-win” outcomes would appear
to be possible. Rather than focussing on spurring growth in each marine economic
sector, the approach tries to analyze the multiple sectors as a portfolio viewed through
economic, social and environmental lenses. Overall, the study aims to define
trajectories for growing the blue economy portfolio of Viet Nam which complement
and build on Resolution 36 and 26.

This summary report begins by outlining the definition of the Blue Economy and
provides an overview of the Blue Economy situation in Viet Nam. Chapter 2 provides
an overview of the socio-economic status of the main economic sectors of the blue
economy. Chapter 3 introduces the results of the comparative cost-benefit analysis of
the industries. Chapter 4 analyses the possible future blue scenarios for the sectors up
to 2030. Chapter 5 assesses the challenges and opportunities for the blue economy
advancement in Viet Nam. The final chapter provides some key recommendations for
promoting Blue Economy in Viet Nam.

4
1.2. Defining the blue economy

The essence of the Blue Economy (BE) can be traced back to the Brundtland
Commission report (of 1987) which identified the importance of development and
accounted for the needs of future generations. This was the precursor to what is now
known as the ‘Green Economy’ which is recognized as a rapidly expanding sector over
the last decades. BE can be seen to be allied to many of the Green Economy
approaches but just related to marine economies. BE as a term emerged through the
phase leading into the 2012 Rio+20 conference and its use and application has
expanded over the intervening years.

However, BE has failed to attain a universal definition. One of the earlier definitions of
the ‘Blue Economy’ came from Pauli (2010) in a report to the Club of Rome which
highlighted the benefits of connecting and combining seemingly disparate
environmental problems with open-source scientific solutions based upon physical
processes common in the natural world, to create solutions that are both
environmentally beneficial and which have financial and wider social benefits. More
succinct definition from that period included Kaczynski (2011) who succinctly
described ‘Blue Economy’ as being about the commercial development of oceans in a
sustainable way. BE results in improved human wellbeing and social equity, while
significantly reducing environmental risks and ecological scarcities, endorsing low
carbon, resource efficiency and social inclusion UNEP have termed BE as an approach
that is based on a vision of improved wellbeing and social equity, while significantly
reducing environmental risks and ecological scarcities and also note that that BE offers
an innovative approach to conserving the oceans, while reaping their benefits in a
more equitable and sustainable way2. The East Asian Summit (EAS) Region also
produced the Changwon Declaration in 2012 which provided a similar but more
detailed BE definition: “We understand the Blue Economy to be a practical ocean-
based economic model using green infrastructure and technologies, innovative
financing mechanisms, and proactive institutional arrangements for meeting the twin
goals of protecting our oceans and coasts and enhancing its potential contribution to
sustainable development, including improving human well-being, and reducing
environmental risks and ecological scarcities.”

2
UNEP, 2015, Blue Economy: Sharing Success Stories to Inspire Change.
www.unep.org/greeneconomy

5
A contemporary view on the definition of the BE by Steven et al. (20193) stresses the
economic, social and environmental pillars and the underlying sustainability aspect of
BE, but also highlights the importance of enabling policy. Thus, a useful working
definition of BE can be taken from the World Bank as “sustainable use of ocean
resources for economic growth, improved livelihoods and jobs and ocean ecosystems
health4”. Perhaps it is fair to say that a universally agreed aspect of the definition of
BE is a fluid concept, employed differently in different contexts and by different actors.
Although common to all approaches is the integration of marine-based economic
development that leads to improved human well-being and social equity, while
simultaneously reducing environmental risks and ecological scarcities.

In terms of the application of a BE approach, key decisions need to be made between


two potentially conflicting discourses: growth and development, and the protection of
ocean resources. This setting of balance within BE is also inherent in the Sustainable
Development Goals (SDGs) of the United Nations. From a published survey of
stakeholder, the association between BE and SDGs was assessed and shows a focus of
BE on environmental aspects (SDGs 14, 15), partnerships and institutions (SDG 16 and
17) and good health and wellbeing (SDG 3) but less focus on economic aspects (work
and industry, SDG 8 and 9 respectively) and other aspects such as equality and gender
(SDG 10 and 5) (Fig 1.1).

Figure 1.1. The stakeholder-focused SDGs linkage to the Blue Economy

Note: red asterisk at the above blue bars represents the top ranked 5 SDGs, which are displayed on right of graph5

3
Andrew D. L. Steven, Mathew A. Vanderklift & Narnia Bohler-Muller (2019) A new narrative for the Blue Economy and Blue
Carbon, Journal of the Indian Ocean Region, 15:2, 123-128, DOI: 10.1080/19480881.2019.1625215
4
World Bank. 2017. The Sunken Billions Revisited : Progress and Challenges in Global Marine Fisheries. Environment and
Development;. Washington, DC: World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/24056
License: CC BY 3.0 IGO.
5
Lee, K-H, Noh, J. & Khim, J.S. (2020) The Blue Economy and the United Nations’ sustainable development goals: Challenges
and opportunities. Environmental International: https://doi.org/10.1016/j.envint.2020.105528

6
Consequently, from the stakeholder community, BE seems to focus more on the
environmental and governance aspects, with less connection to social and economic
dimensions. However, national discourses and the application of BE can be expected
to differ on the basis of country differences for example national development
trajectories, living and non-living resources and level of technological development.
Thus, global definitions would seem to be less important at a national level, compared
to addressing some of the key challenges set up by the BE lens. These include ensuring
the inclusion of the social, economic and environmental pillars and setting
determining trajectories that have a correct balance of ocean growth and
development with protection.

1.3. The national blue economy context

Viet Nam is located on the coast of the East Sea, has an area of 331,212 km², and a
population of 98 million people (2020). The population of 28 coastal provinces/cities
accounts for nearly 50% of the country's population. The area of territorial waters
under sovereignty, with sovereign rights and jurisdiction, is over 1 million square
kilometres, with two archipelagos of Hoang Sa and Truong Sa and over 3,000 other
islands and archipelagos. The coastline is 3,260 km long (excluding islands), on
average, there is 1 km of coastline for every 100 km² of land area (the world average
is 600 km² of land/1 km of coastline). Viet Nam's coast has many estuaries (114
estuaries and an average of one large river mouth every 20 km) and more than 50 bays
and lagoons (accounting for 60% of the coastline). The geographical topography of the
land is narrow, stretching along the coast in the North-South direction, nowhere in the
country is more than 500 km from the sea.

The East Sea is located on the arterial sea traffic route connecting the Pacific - Indian
Ocean, Europe-Asia, and the Middle East-Asia. The maritime route through the East
Sea is one of the busiest international maritime trade routes in the world. The
development of many economies in East Asia is linked to this sea route. In the region,
there are large ports such as Singapore port, Hong Kong port, etc. Viet Nam's coast has
more than 100 locations where large seaports can be built, which are favourable
conditions for the development of the marine transportation industry.

7
Figure 1.2. Administrative map of Figure 1.3. Natural map of Southeast
Viet Nam6 Asia7

Viet Nam's seas and islands have rich and diverse biological and mineral resources,
including about 12,000 species of living organisms in more than 20 typical ecosystem
types, belonging to 6 other marine biodiversity regions. Viet Nam's sea is considered
one of the 10 centres of marine biodiversity in the world. In the waters of Viet Nam,
there are about 35 types of minerals with different sizes of exploited reserves from
small to large, belonging to the following groups: fuels, metals, construction materials,
precious and semi-precious stones, and liquid minerals. Petroleum potential is
distributed in sedimentary basins. The seas and islands of Viet Nam have significant
tourism resources. There are more than 120 beaches along the coast that can be
developed for tourism, of which about 20 are of international scale and standards. The
Ha Long Bay has been classified by UNESCO as a natural heritage of the world.

Viet Nam's sea and coastal areas are subject to many risks of natural disasters at sea
and extreme weather phenomena and consequences from climate change, such as
storms and storm surge and is assessed to be more likely to be affected by climate
change and ocean change. According to the World Bank (WB), a sea-level rise of 5m
will cause Viet Nam to lose 16% of its land area, threatening 35% of its population and
35% of its gross domestic product; coastal lowlands, atolls and a series of ecosystems
and infrastructures destroyed by sea-water flooding.

6
Source: https://abc.vn/ban-do-viet-nam/
7
Source: https://sites.google.com/site/khuvucdongnama1509/vi-tri-dia-li-va-lanh-tho

8
With the geographical location, it can be said that the economic and cultural life of
Viet Namese people is closely related to the sea. The sea is considered a space for
survival, development and security of the Viet Namese nation. Sustainable
development of the blue economy, therefore, becomes an indispensable need
throughout the country’s development process. Currently, the East Sea has disputes
over sovereignty over sea and islands.

Marine economic activities in Viet Nam are diverse but can be simply divided into two
main categories:

 1. Primary marine activities – economic activities that take place within the
coastal and marine zone. Includes 1. Maritime economy (Sea transport and
seaport services); 2. Seafood (fishing and aquaculture); 3. Offshore oil and gas
exploitation; 4. Sea tourism; 5. Making salt; 6. Search, rescue and rescue
services; 7. Small island economic activities.
 2. Secondary marine activities – economic activities that are associated to or
support the primary marine activities but do not take place within the sea.
Includes: 1. Building and repairing ships and boats; 2. Oil and gas processing
industry; 3. Seafood processing industry; 4. Providing services, such as
supporting coastal tourism and maritime insurance; 5. Communication; 6.
Researching marine science and technology, training human resources for
marine economic development, basic investigation of marine resources and
environment.

Although there are many articles on the development of the marine economy in
general and the key marine economic sectors in particular in Viet Nam, perspectives
on the blue economy are still very limited. On the one hand, this is a new approach, so
there are not many research reports. On the other hand, the current situation of data
on the marine economy in Viet Nam is still very scattered and lacks uniformity.
Furthermore, there is no statistical section for the marine economy in the official
statistical system of Viet Nam.

Most of the statistics on the marine economy belong to the group of "sectoral
statistics" as the industries themselves build according to each angle and scope of their
management. For example, the fisheries sector is managed by the Ministry of
Agriculture and Rural Development (MARD); the maritime economy under the
management of the Ministry of Transport (MOT) and the Ministry of Industry and
Trade (MOIT); oil and gas, marine energy by MOIT tourism is managed by the Ministry

9
of Culture, Sports and Tourism (MOCST). Moreover, the data from the different marine
sectors tend to vary, some sectors lack indicators, such as labour or value-added; this
makes consistency and comparison between marine sectors challenging.

According to the collected information, the GDP scale of net marine economic sectors
of Viet Nam, including seafood, marine tourism, maritime, oil and gas exploitation,
petrochemical refining, and offshore wind power. Offshore wind power has increased
by 2.64 times from 2010 to 2019. Over the same period, the GNI of these industries
increased by 3.4 times (Figure 1.5). At the same time, the structure of the marine
economy has also undergone a significant change, in which the oil and gas exploitation
and refining and petrochemical industries have decreased from 60% of marine GDP in
2010 to 37% in 2019; meanwhile, the marine tourism sector has increased from 13%
to 40% marine GDP in the same period (Figure 1.4).

Figure 1.4. Structural change among marine economic sectors in the period 2010-
2019

10
Figure 1.5. Gross National Income (GNI) per capita of marine economic sectors in
the period 2010-2019

The labour structure shows that the majority of workers in the marine economy
sectors belong to the seafood and marine tourism sectors. In contrast, the sector that
generates the most value added per worker is the oil and gas exploitation and refining
and petrochemical industries (Figure 1.6).

Figure 1.6. Labour structure in marine economic sectors in the period 2010-2019

11
1.4. Policy initiatives for ocean development

The importance of the ocean for national development has been long recognized, with
specific policy instruments dating back to the 1990s8. In 2007, Resolution 09-NQ/TW
on Viet Nam’s Sea Strategy to 2020 was approved with a focus on becoming a “strong
country based on the sea “through “promoting all potentials from the sea”. The
objective of the Resolution was that by 2020 the ocean economy would contribute
about 53-55% of GDP and 55-60% of export turnover of the whole country as well as
supporting sociological development. The importance of the sectors that form the
marine economy was recognized and sector policies emerged, such as the Fisheries
Development Strategy 2010; Tourism Development Strategy 2010 and Transport
Development Strategy 2010; some of these were underpinned by the law9.

Renewed emphasis was placed on the ocean by The Party Central Committee’s
Resolution No. 36-NQ/TW dated October 22, 2018, on Viet Nam’s Ocean Economy
Sustainable Development Strategy. The Resolution was substantive in that it identified
targets for 2030 and a vision for 2045, which included 5 major directions, and 7 key
solutions. Three strategic advancements or “breakthroughs” were also identified in
the Resolution:

1. Complete the institutional arrangements and supporting mechanisms for the


sustainable development of the ocean economy. Give priority to the
improvement of the legal framework, innovation, development of green
growth models, environmental protection, and improvement of the
productivity, quality and international competitiveness of marine industries.
Establish the integrated ocean or marine management mechanism. Review,
adjust, supplement and establish plans related to the sea, ensuring the linkage
between sectors and localities (inter-sectoral and spatial integration).
2. Develop science, technology, and high-quality human resources, promote
innovation and creativity. Make full use of advanced scientific and
technological achievements, and new technology, and attract leading experts,
scientists, and high-quality human resources.
3. Develop multi-purpose infrastructure and transportation networks. Connect
major economic centres, industrial zones, urban areas and sea areas with

8
For example, Resolution No. 03-NQ/TW (of 1993), Directive 171/TTg (of 1995) and Directive No. 20-
CT/TW (of 1997).
9
For example, Law of the Sea of Vietnam No. 18/2012/QH13, Law of the Sea and Island Resources
and Environment No. 2/2015/QH13 and Law on Fisheries No. 18/2017/QH14.

12
seaports based on economic and natural ecosystems and strategically
connecting North-South, East-West, between the domestic and international
regions.

In 2020, the Government issued Resolution No. 26-NQ/CP promulgating a 5-year plan
for implementation of Resolution No. 36-NQ/TW on the Ocean Economy Sustainable
Development Strategy by 2030, Vision to 2045. The 5-year plan addresses important
content related to the blue economy development. The plan has launched 24 projects
and tasks for the period from now to 2025 and 9 projects for the period of 2026-2030.
This included the promulgation of focusing on a National Marine Spatial Plan for the
period of 2021-2030, vision to 2045 and the Master plan for the sustainable
exploitation and use of coastal resources for the period of 2021 - 2030, vision to 2045.

Resolution 36 does not use the term blue economy in the text. However, the main
thrust is towards invigorating the sustainable development of the marine economy.
This is very much in line with the normative BE definitions, and directly inculcates the
key sustainable development pillars of economy, society and environment.
Accordingly, the Specific Objectives of Resolution 36 are broken down into economic,
social and environmental objectives, as well as categories including science,
technology, and marine human resources development. Economic Objectives raise the
aspiration of the economy of coastal provinces and cities to represent 65-70% GDP
(compared to the 53-55% GDP target of Resolution 09-NQ/TW of 2007) and the pure-
marine economy to be about 10% of the national GDP.

The Resolution provides a view of the ocean with unexploited potential in which
certain anthropogenic constraints need to be overcome (capacity, technology, etc) to
further expand the array of benefits. The focus is on an implicit “win-win” for the
generation of economic growth while moving towards increased sustainability (or
“win-win-win” for economy, society and environment). The apparition is benign, with
expansion possible across many sectors once constraints are lifted and negative
interplay between expanding sectors is limited. The Resolution presents negligible
narrative around the constraints to this expansion or the negative interactions
between expanding sectors. Already some marine resources are reaching limits to
further exploitation, for example in global capture fisheries the percentage of stocks
fished at biologically unsustainable levels increased from 10 percent in 1974 to 34
percent in 201710, with 90% of stocks fully fished or overfished, which is already

10
FAO. 2020. The State of World Fisheries and Aquaculture 2020. Sustainability in action. Rome.
https://doi.org/10.4060/ca9229en

13
causing a lost economic benefit of USD $83 billion per year11. For fisheries stocks
globally there is no “win-win” for the foreseeable future.

The concept of “win-win” is being more broadly questioned within green growth, with
some evidence that it may pose more trade-offs than is readily acknowledged,
especially when scaled up into national development strategies12. This has also been
questioned within the blue economy13 and it has been argued that green-growth
“strategies have not led to environmentally sustainable and equitable outcomes on
land, so there is little reason to expect them to perform better at sea”14.

However, Viet Nam has made strong climate commitments and other environmental
obligations. The Prime Minister Pham Minh Chinh announced Viet Nam’s climate
ambition, including net-zero emissions by 2050, at the 26th session of the Conference
of Parties (COP26) to the United Nations Framework Convention on Climate Change in
Glasgow, United Kingdom, in 202115. This statement flags the national imperative of a
green and blue path of promotion of socio-economic development without
compromising environmental and ecosystem quality and the vital need for mapping
out “win-win” scenarios. The future planning of sectors of the blue economy, such as
marine renewable energy, especially offshore wind power and marine oil & gas,
become crucial elements of promoting on blue growth through Resolution 36, but also
for delivering on climate change commitments.

11
World Bank. 2017. The Sunken Billions Revisited : Progress and Challenges in Global Marine
Fisheries. Environment and Development;. Washington, DC: World Bank. © World Bank.
https://openknowledge.worldbank.org/handle/10986/24056 License: CC BY 3.0 IGO
12
United Nations University, 2012. Green Growth: A Win-Win Approach to Sustainable Development?
https://unu.edu/publications/articles/green-growth-a-win-win-approach.html
13
E.g. Lancaster University, 2019. Africa’s Blue Economy – win-win or false promise?
https://www.lancaster.ac.uk/lec/about-us/news/africas-blue-economy-win-win-or-false-promise
14
Cohen PJ, Allison EH, Andrew NL, Cinner J, Evans LS, Fabinyi M, et al. Securing a Just Space for Small-Scale
Fisheries in the Blue Economy. Frontiers in Marine Science. 2019;6:171.
15
https://en.baochinhphu.vn/full-remarks-by-pm-pham-minh-chinh-at-cop26-11142627.htm

14
2. Blue economy sector overview

2.1. Introduction

This section provides an overview of the main marine sectors: fisheries & aquaculture,
oil & gas, marine renewable energy, coastal and marine tourism, maritime and
environment, biodiversity & ecosystems. Although the sectors are diverse and
different information is available for each of them, the basic structure of the section
on each sector is similar. Firstly, a review is made of the resources of the sector
describing the types of resources, their location and the ways in which the resources
are being used. Secondly, the present status is determined through an analysis of the
stock of resources and the main trends in their use and extraction. Thirdly, the
interaction of the sector with the 14 SDG Goals is assessed as well as the type of
interaction (positive/neutral/negative) with the other marine sectors.

2.2. Fisheries & Aquaculture

2.2.1. Resources

Viet Nam has marine fishing grounds covering over 1 million square kilometres with
over 2,000 species of fish, including 130 species of high economic value, and over 600
species of crustaceans, molluscs and seaweed. According to RIMF (2018), the average
annual biomass of marine fish resources between 2011-2015 was estimated at
4.364 million tons (fluctuating between 4.1-4.6 million tons)16; with 12% of production
from nearshore fisheries resources, middle shore areas producing 19%, and offshore
areas producing 69%, excluding fish stocks of deep-sea areas, emerging mounds and
continental shelf areas. Fish stocks have decreased by 13.9% from 2000-2005 (5.071
million tonnes), which is equal to an annual decrease of 1.36% per year. The fisheries
grounds in Viet Nam are classified into five fishing zones: Tonkin Gulf (accounting for
17.3% of total fisheries resources), Central Coast Zone (20.0%), Southeast Zone
(25.6%), South West Zone (13.4%) and Middle East Sea Zone (23.7%)17.

16
This 4.364 million ton do not cover the fisheries resources in the deep-sea areas and continent
shelf areas of Vietnam as resource stock assessment there have not been conducted.
17
RIMF (2018), Report on marine fisheries stock assessment in Viet Nam sea in the period of 2011-
2015 (submitted to MARD), Research for Marine Fisheries (RIMF), Hai Phong.

15
18

Lobster aquaculture system in Hon Yen, Phu Yen Province – Image by: Trọng Ðạt
(VNA)

Viet Nam has a large potential for marine and coastal aquaculture development with
a coastline over 3,260km long, over 3,000 islands, 12 coastal lagoons, and 112 coastal
estuaries. In terms of potential locations and areas for aquaculture, about 500,000
hectares19 of closed bays, nearshore islands, middle shore sea areas and low tidal flats
can be exploited for marine aquaculture development. So far, about 57,000 hectares
out of that area have been used for marine aquaculture development and the
remaining 443,000 hectares have potential for marine aquaculture, especially the
nearshore and middle shore areas.
In addition, a large number of low and high tidal areas of about 750,000 hectares20 in
all 28 coastal provinces are also suitable for brackish-water21 aquaculture
development with a majority appropriate for shrimp farming. So far, about 720,000
hectares of those areas have been used for brackish water coastal aquaculture farming
along the coast.

2.2.2. Present status

Over the past 20 years, the growth of production from the total fishery production
(including both capture and aquaculture) has quadrupled, from about 2.0 million tons
a year in 1999 to 4.7 million tons in 2009 and 8.15 million tons in 2019 (See Figure 2.1).

18
https://nhandan.vn/tin-tuc-kinh-te/phat-trien-nuoi-trong-thuy-san-vung-nam-trung-bo-379596
19
MARD (2018), National strategy for marine aquaculture development towards 2030 and visions to
2050, Hanoi.
20
VIFEP (2012), Master Plan for Fisheries Sector Development towards 2020 and visions to 2030,
Hanoi.
21
Brackish-water aquaculture is to culture aquatic species in the coastal ponds with water salinity of 3-
25ppt (sometimes the salinity may go lower or higher that range but should not last for a long time).
This farming is mainly done in coastal areas.

16
Out of the 8.15 million tons in 2019, the marine catch was 3.77 million tons, of which
94.6% was caught at sea; and aquaculture production was 4.38 million tons, of which
28% is raised in coastal and marine farming areas.
5.000.000
4.500.000 Aquaculture (tons)
4.000.000 Capture fisheries (tons)
3.500.000
3.000.000
2.500.000
2.000.000
1.500.000
1.000.000
500.000
-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 2.1. Aquaculture and capture fisheries production in the period 1999-201922

There has been a significant structural change in the means of fishing as the total
number of small fishing boats operating in nearshore and middle shore areas have
reduced from 92,391 boats in 2013 to 66,135 boats in 2019 (reduction of 5.42% per
year). However, the number of offshore vessels has shown an upward trend from
26,398 vessels in 2013 to 30,474 vessels in 2019 (D-FISH, 2019) (increase by 2.42% per
year). The reason for this structural change is partly due to the Government's policies
to encourage offshore fishing and limit inshore fishing, and on the other hand due to
the decline in nearshore fishery resources. There are 83 fishing ports (data in 2018)
with a designed capacity of 1.8 million tons to provide logistic services for 9,298 fishing
vessels arrivals/day.

Aquaculture production has been increased significantly in the last 10 years with an
annual growth rate of 6.5% per year, from 692,904 tons in 2010 (VIFEP, 2013) to reach
a total of 1,220,000 tons of seafood in 2019 (D-FISH, 2019) and its majority has come
from coastal land-based brackish-water shrimp farming (accounting for 61.5% of total
coastal and marine aquaculture production in 2019).

The value of seafood exports increased from USD 5 billion in 2010 to USD 8.6 billion in
201923 (accounting for 22.5% of the total export value of the agriculture-forestry-
fishery sector), with an average growth rate of 6.1% per year. The nominal GDP of the

22
Gathered and compiled from annual reviewing reports of D-FISH and MARD.
23
D-FISH (2019), Annual report of fisheries sector achievements in 2019 and action plans for 2020.

17
marine capture & aquaculture sector has increased from 68.91 VND thousand billion
in 2010 to 166.76 VND thousand billion in 2019. It contributes approximately 72-89%
of the whole nominal fisheries sector GDP, 15-20% to the nominal GDP of the
Agriculture-Forest-Fisheries sector and 2-3% to nominal national GDP.

2.2.3. Interaction with SDGs

Marine capture and aquaculture have both positive and negative interactions with
SDGs. Positive interactions include sustainable livelihood and income creation;
contributing to reducing the poverty rate and ensuring food security, improving
nutritional levels and social welfare access for poor communities in coastal and island
areas; also creating more opportunities for women to participate in seafood
processing and marketing. Negative interactions may be seen in excessive water
resource uses in aquaculture and may create negative impacts on the environment
such as organic pollution from feed residues, mud wastes, salinity intrusion; or
unfriendly fishing activities like bottom trawling in nearshore areas. Such interactions
create more pressures on coastal fisheries resources as well as marine environment
and ecosystems.
Table 2.1. Linkage of aquaculture and capture fisheries to Viet Namese SDGs
SDGs Score Comments
Nearshore capture fisheries (accounting for 49.11% of total vessels in 2019
in Viet Nam) and small-scale aquaculture farming (60%) create sustainable
SDG 1 +3
livelihoods and incomes for poor communities in coastal and island areas.
Contribute to reduce poverty rate and ensure food security for poor
SDG 2 +3 communities in coastal and island areas.
Providing seafood that improves nutritional levels and contributes to social
SDG 3 +3 welfare access for poor communities in coastal and island areas.
Sustainable capture fisheries and aquaculture development helps local
SDG 4 +2 communities in coastal and island areas have more opportunities to access
to education and technical training.
Many opportunities are created for women to participate in fish processing,
SDG 5 +2
marketing and aquaculture industry.
Aquaculture development uses water resources and may create negative
SDG 6 -1 impacts on environment such as organic pollution from feed residues, mud
wastes, and salinity intrusion.
SDG 7 0 No contribution
Contribute to economic growth and creates more jobs for local communities
SDG 8 +2
in coastal and island areas.
Contribute to improve infrastructures for coastal and island areas such as
SDG 9 +2
fishing port, storm shelter, roads, sluice, electricity, telecommunication, etc.

18
Nearshore capture fisheries and small-scale aquaculture maintain daily
SDG 10 +1 livelihoods for vulnerable local people, leading to reduce inequality within
local community.
Contribute to sustainable urban and rural development with more access to
SDG 11 +1
good foods and infrastructure building in coastal areas.
Organic shrimp and Marine Stewardship Council certification24 captured
SDG 12 +1 seafood products may contribute to responsible production and
consumption.
Brackish water aquaculture development in coastal salinity intrusion areas
SDG 13 +3 (ex. shrimp farming) is considered as one of feasible climate change
adaptation solutions.
Ending IUU (Illegal, Unreported and Unregulated) fishing and relevant
SDG 14 +3 subsidies for capture fisheries will protect aquatic resources and contribute
to sustainable fisheries development.
Shrimp-mangrove integration creates organic shrimp and contribute to
SDG 15 +1
protect and restore coastal mangroves.
SDG 16 0 No contribution
Partnership with international and bilateral entities to end IUU fishing and
SDG 17 +2
sustainable aquaculture farming.
Source: Cao Le Quyen, 2021

2.3. Oil & gas

2.3.1. Resources

There are eight oil & gas bearing basins located in the exclusive economic zone and
continental shelf in Viet Nam: Song Hong, Hoang Sa, Phu Khanh, Cuu Long, Nam Con
Son, Tu Chinh-Vung May, Truong Sa and Malay-Tho Chu basins.

24
Marine Stewardship Council

19
25

Image by: Petro Viet Nam

In the 4 basins, Song Hong, Cuu Long, Nam Con Son, and Malay-Tho Chu, up to the end
of 2020, the reserves of more than 1,500 million m3 of oil equivalent have been
discovered. From these reserves, at the end of 2020, nearly 700 million m3 have been
produced and around 800 m3 of oil equivalent remain to be produced in the coming
years, after recalculated data from TX Cuong (2019)26.

The oil & gas recoverable resources that can be discovered in the future vary according
to different authors. TX Cuong (2019) estimated this number to be about 1.7 billion
m3. According to N. Hiep (2019), the total resources in place can reach 6.5 billion m3
of oil equivalent.

These data show the good potential for long-term and sustainable growth of the oil &
gas industry in Viet Nam. In order to fully realize this potential, it requires both
incentives for foreign investment and the favourable regulatory frameworks for
mobilizing different domestic resources.

2.3.2. Present status

Up to the end of 2020, nearly 700 million m3 of oil equivalent have been produced in
Viet Nam. Production from Cuu Long basin counts for 74%, Nam Con Son basin counts
for 18%, Malay-Tho Chu basin counts for 7% and Song Hong basin less than 1%. This
shows that most of the oil & gas activities are located in the Southeast and Southwest
regions.

25
https://www.pvn.vn/chuyen-muc/tap-doan/tham-do-khai-thac-dau-khi-can-co-co-che-chinh-sach-phu-
hop/bdd75abe-1b4b-468b-bcd8-26e004b8f596
26
Challenges and opportunities for conventional and unconventional oil and gas energy development
in Viet Nam. Proceedings of the Symposium “National Energy Security: the Role of Petroleum
Industry”, pp 131 - 145, 7/2019

20
Figure 2.2. Oil & gas production during 2010-2020 (VPI)

The historical oil & gas production data during 2010-2020 show that oil production has
reached its peak during 2012-2015 and is now declining. However, the gas production
still remains almost steady.

The pace of production measured by reserves-to-production (R/P) ratio, calculated for


oil is 51 years, for gas is 66 years at the end of 2019; these figures show potential
longer time of production compared to Asia-Pacific and globally (BP, 2020)27.

The investment level in the oil & gas exploration and production measured by the
amount of invested money, the number of exploration, the number of appraisal wells
and new signed petroleum contracts during 2016-2020 is declining. This will threaten
the mid- and long-term growth of the sector.

The annual average amount of petroleum products produced by BSR28 from domestic
crude is around 6 million tons. The two fertilizer plants (Phu My, Ca Mau) are
producing about 1.6 million tons of urea on average based on domestic gas feedstocks.

Around 15 billion Kwh of gas power are being produced every year by 4 gas turbine
power plants of PetroViet Nam (Nhon Trach 1, Nhon Trach 2, Ca Mau 1 and Ca Mau
2). Besides, there are other gas turbine power plants operated by Viet Nam Electricity
Corporation (EVN).

27
BP Statistical Review of World Energy 2020. www.bp.com
28
Binh Son Refining and Petrochemical Joint Stock Company

21
The extraction and processing activities related to other mineral resources in Viet
Nam's sea and coastal areas (mainly titanium placers) are minor compared to the oil
& gas sector.

2.3.3. Interaction with SDGs

The interactions between the sector and the Sustainable Development Goals (SDG)
are shown in Table 2.2. The impacts on SDGs are measured by scoring from -3 to +3.

It is clear that, the progress of the oi & gas sector also delivers progress to most of the
Sustainable Development Goals. Among the 17 SDGs, oil & gas sector only delivers
minor negative effects on 2 SDGs, but gives positive impacts on 9 other SDGs. It
especially delivers progress, or significant progress on 4 SDGs, namely SDG 1 No
poverty, SDG 7 Affordable and clean energy, SDG 8 Decent work and economic growth
and SDG 9 Industry, innovation and infrastructure.

This proves the important role of the industry to national economy and energy
security.
Table 2.2. The impacts of the oil & gas sector on the SDGs
No SDG Score Comments
Oil & gas sector contributes remarkable portion of state budget,
SDG 1. No
1. +2 thus helps the government to have resources to end poverty in the
poverty
remote and difficult areas.
LPG produced from natural gas offshore Viet Nam may bring heat
SDG 2. Zero to remote communities and help with food preparation and
2. +1
hunger cooking; Urea produced helps to get better agricultural outcrops.
All help to end with hunger.
SDG 3. Good
3. Health and Well- 0
being
SDG 4. Quality
4. 0
Education
SDG 5. Gender
5. 0
Equality
If not managed well, oil and gas can cause water pollution. (-)
SDG 6. Clean
Oil & gas activities are mainly offshore and do not have impact on
6. Water and 0
onshore water. In some cases oil & gas exploration even could
Sanitation
help to find some water sources (f.e. Tien Hai). (+)
SDG 7.
Development in the oil & gas industry and its energy transition
7. Affordable and +3
lead directly to clean energy production affordable to all.
clean energy
The Oil and Gas industry creates many direct jobs in large energy
SDG 8. Decent
industrial regions like Southeast Viet Nam, Ca Mau, Quang Ngai,
8. work and +2
Thanh Hoa.... Besides, it creates many indirect jobs related with
economic growth
services, trading and products distribution.

22
Oil & gas sector develops infrastructure and leads the
SDG 9. Industry, development for some industrial regions, like Ba Ria-Vung Tau,
9. innovation and +2 Southeast, Southwest, South- and North Central Viet Nam. By
infrastructure this, it promotes inclusive, sustainable development and fosters
innovation in these areas.
SDG 10.
Providing clean and affordable electricity indirectly reduces
10. Reduced +1
inequality.
Inequality
SDG 11.
Oil & gas industry contribute to sustainable urban development
Sustainable
11. +1 and communities (Vung Tau, Ho Chi Minh, Nhon Trach, Ca Mau,
Cities and
Quang Ngai, Thanh Hoa, Thai Bình...)
Communities
SDG 12.
Oil & gas industry today and its transition to clean energy
Responsible
12. +1 (renewable energy) show responsibility in energy production and
Consumption and
consumption.
Production
Oil & gas industry already has Action plan for mitigation of climate
SDG 13. Climate
13. -1 change (+), but as the main sources of GHG emissions this action
Action
plan may not be enough (-)
SDG 14. Life Oil & gas sector uses the oceans, seas and marine resources and
14. -1
below water causes physical damage as well as further environmental hazards.
SDG 15. Life on
15. 0
Land
SDG 16. Peace
and Justice
16. 0
Strong
Institutions
SDG 17.
The traditional close partnership in oil and gas sector promotes
17. Partnership for +1
global partnership for sustainable development.
the goals

2.4. Marine renewable energy

2.4.1. Resources

Viet Nam is assessed to have significant marine energy resources such as electricity
generation from offshore winds, tides, waves and ocean flows. Offshore wind power
has the greatest potential, if exploited, it will make a practical contribution to the
targets of blue and sustainable marine economy development.

The potential of marine energy resources, especially offshore wind power of Viet Nam
has so far not been fully quantified because of the lack of reliable data. However, there
have been a few review studies which have provided encouraging figures in terms of
installed power capacity potential but there is variation in capacity scale between
these studies, from 160GW (source: C2WIND/COP; AEGIR; COWI) to 475GW (source:
ESMAP/WB) event to 6,300GW (source: independent research team). Those
differences may be due to the methodologies, approach as well as database source

23
used. Below is a summary of Viet Nam's offshore wind power potential from the
selected studies.

Offshore wind power potential review report of international research agencies such
as C2WIND/COP; AEGIR; COWI, which assesses the offshore wind power potential of
Viet Nam within 100 km of shore at about 160 thousand MW 29.

The report on the assessment of offshore wind power potential at sea of countries
including Viet Nam published by the Energy Sector Management Program (ESMAP) of
the World Bank Group in October 2019. Which, Viet Nam has about 261 thousand MW
of fixed foundation and about 214 thousand MW of floating foundation30.

The independent domestic research team also reviewed the wind power potential in
the sea when considering the entire 200-nautical mile exclusive economic zone of Viet
Nam, the results showed a total technical potential of about 6.3 million MW 31.

2.4.2. Present status

Viet Nam developed offshore wind power has two projects that have been put into
operation by 2019 with a total installed capacity of 105 MW. These projects
demonstrate the potential for offshore wind in Viet Nam but represent only about
0.02% of the 640 GW global offshore wind installed capacity in 201932. The
development situation of two offshore wind power projects is summarized as follows.

Cong Ly wind power plant is an investment project of a domestic private enterprise


located in Bac Lieu province with a capacity of 99.2 MW. The project completed the
installation of phase 1 in November 2012 with 10 turbines (type 1.6MW per turbine,
provided by GE of the US). The project of selling electricity to the national grid started
on May 29, 2013. Phase 2 of the project installs the remaining 52 turbines to sell
electricity to the national grid with the schedule as follows: 10 turbines in April 2015.
Continuing 10 turbines in 5/2015. Following 16 turbines in September 2015, and the
final one of phase 2 with the remaining 6 turbines in June 2016. The capacity factor of
both phases is expected to reach about 30%.

The wind power plant with a capacity of 6MW installed on Phu Quy island invested by
PetroViet Nam Power Company was completed and put into operation in April 2012.

29
https://www.evwind.es/2020/05/19/vietnam-has-potential-for-160-gw-of-offshore-wind-energy/74789
30
ESMAP/WB, October 2019, Going Global, Expanding Offshore Wind to Emerging Markets
31
Du Van Toan (1) , Nguyen Hoang Anh (2) , Pham Van Tien (3)
32
https://www.statista.com/statistics/268363/installed-wind-power-capacity-worldwide/

24
This is a hybrid project between wind power and diesel power, producing electricity
and supplying electricity to an independent 22kV power grid on Phu Quy island of Binh
Thuan province.

The table below summarizes key information and revenue from electricity sales of the
first two offshore wind power projects in Viet Nam in the period up to 2019.
Table 2.3. Information and revenue from electricity sales of the first two offshore
wind power projects in Viet Nam in the period up to 2019
Categories Unit 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total GWh 0 0 900 18.43 37.01 75.13 164.00 207.00 244.00 244.00
power
output
Total USD 0 0 702 14,374 35,763 72,629 159.120 200,860 236.720 237,170
revenue

Note: The electricity selling price of Cong Ly project is implemented according to Decision No. 37/2011/QD-TTg and Decision
No. 39/2018/QD-TTg of the Prime Minister.
Source: Data collected from offshore wind power plants.

2.4.3. Interaction with SDGs

Linking offshore wind power development to Viet Nam's sustainable development


goals through score-based assessments that reflect the interactions of offshore wind
development across 17 sustainable development goals is outlined in the table below.
In this assessment, many goals have a practical impact and achieve the maximum score
such as goal number 7, 9, 13, slightly lower is goal number 8 and 12, then goal number
1 , 3, 4, 6, 10, 11, 14, and 17.

This confirms that if managed well, offshore wind energy will make an important
contribution to Viet Nam's sustainable development goals. Its impacts are not only
providing green energy/electricity but also creating new jobs. Moreover, offshore
wind power development is also a sector where it can significantly support and
contribute positively to the implementation of the Paris Agreement on Climate Change
(COP 21) and its commitment to achieving net-zero carbon emissions by 2050 (COP26).

Table 2.4. The Interaction between offshore wind power development with SDGs
SDG Score Comments
SDG 1 +1 Offshore wind power participates and contributes to poverty reduction
SDG 2 0
Offshore wind power indirectly supports health and good air quality
SDG 3 +1

25
Offshore wind power provides opportunities and platforms for access to
SDG 4 +1
quality education and learning
SDG 5 0
SDG 6 +1 Offshore wind power contributes to clean water supply and access
Offshore wind development focuses on access to affordable, reliable,
SDG 7 +3 clean and sustainable energy, diversifying power sources and
contributions, and enhancing energy security.
Offshore wind power contributes significantly to promoting economic
SDG 8 +2
development and creating jobs, especially for young people.
Offshore wind development will promote development, infrastructure
SDG 9 +3 innovation (seaports, shipping and transport) and promote the
development of supporting industries
SDG 10 0
It can also indirectly assist in achieving better health and air quality
SDG 11 +1

Developing offshore wind will contribute to the trend of using green


SDG 12 +2
products and sustainable consumption
Developing offshore wind will make a positive contribution to replacing
SDG 13 +3 fossil fuels, reducing greenhouse gas emissions and contributing to
climate change response.
Offshore wind development will contribute to the sustainable use of
SDG 14 +1
marine resources
SDG 15 0
SDG 16 0
SDG 17 +1 Partnership with international and bilateral entities.

2.5. Coastal and marine tourism

2.5.1. Resources

Viet Nam has as many as 125 beaches that have a length of over 1 km or more, and
some beaches stretch up to 15 -18 km long. The most beautiful beaches are located
along the central coast, Quang Ninh province and on some large islands. Viet Nam has
many lagoons and bays that are also valuable tourism resources.

Statistics by Le Duc An (1996) show that there are a total of 2,773 coastal islands,
distributed mainly in Quang Ninh, Hai Phong, Kien Giang and Khanh Hoa provinces.
Almost all islands possess a great potential to become attractive tourism destinations.
Biodiversity in national parks, natural reserves, mangrove forests, biospheres, bird
sanctuaries etc. is also an important tourism asset. Hot mineral water sources are
important for the potential development of health tourism.

26
Besides natural resources, cultural and heritage resources (nature, culture) also have
special significance for the development of marine and coastal tourism. Most of Viet
Nam's World Heritage Sites are located along the coast: Ha Long Bay (Quang Ninh),
Cat Ba Islands (Hai Phong), Trang An Landscape Complex (Ninh Binh), Ho dynasty
citadel (Thanh Hoa), Hue Ancient Capital, Hoi An Ancient Town and My Son Sanctuary
(Quang Nam). About 1/3 of Viet Nam‘s cultural relics are located along the coast with
the highest density is in the North from Quang Ninh to Ha Tinh province (59% of the
total coastal region). Festivals, villages and traditional culture would also be great
attraction to tourists.

In general, tourism resources along Viet Nam’s coast are abundant, diverse and
valuable, which would greatly boost development of sightseeing, relaxation,
ecotourism, sport and heritage tourism.

2.5.2. Present status

Tourism is becoming more and more important to Viet Nam’s socio-economic


development, in which marine tourism is the most important, taking about 2/3 of
entire tourism sector. In 2019, Viet Nam welcomed 18 million international tourists
and served 85 million domestic tourists. Total tourism revenue reached 32 billion USD,
making an essential contribution to the economic growth of the country, representing
9.2% of the national GDP (Source: VNAT).

An assessment of marine tourism development in 28 coastal provinces Viet Nam was


conducted. The assessment shows that the number of international visitors to coastal
provinces has increased 13.6% per year, from 10.9 million in 2010 to 35.7 million in
2019. Similarly, the number of domestic tourists to 28 provinces has increased from
44.0 million in 2010 to nearly 145.6 million in 2019.

In 2019, the provinces attracting the most international visitors are Ho Chi Minh City,
Quang Ninh, Quang Nam, Khanh Hoa, Da Nang, while most domestic tourists visited
Ho Chi Minh City, Ba Ria - Vung Tau, Thanh Hoa, Quang Ninh, Hai Phong and Kien
Giang.

27
200.000.000
180.000.000
160.000.000
140.000.000
120.000.000
100.000.000
80.000.000
60.000.000
40.000.000
20.000.000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

International Domestic Total

Figure 2.3. Tourism arrivals to provinces in Viet Nam coastal regions

Sources: statistics from provinces and cities

The total tourism revenue of 28 coastal provinces is over 508 trillion VND (67.3% of
the whole sector). The total hotel rooms number of 28 coastal provinces is 398,234 in
2019 and accounts for 66% of whole country. Provinces with the largest
accommodation offer are Khanh Hoa, Ho Chi Minh City, Da Nang, Thanh Hoa, Quang
Ninh, Ba Ria - Vung Tau and Kien Giang. Cruise tourism, despite a huge potential, is still
underdeveloped in Viet Nam due to shortage of appropriate infrastructure and
suitable products. In 2019, Viet Nam served about 260,000 cruise visitors. The total
number of direct tourism workers in coastal provinces has increased from 219,156 in
2010 to 738,979 in 2019. Besides traditional sun and beach tourism, other important
tourism products include sightseeing, heritage and ecotourism and MICE (Meetings,
Incentives, Conferences & Exhibitions).

2.5.3. Interaction with SDGs

World Tourism Organisation (UN-WTO) has clearly identified linkages between


tourism and SDGs and that, tourism could be a significant tool in achieving these goals.
However, as tourism is a business with a very complex nature as it involves a large
numbers of stakeholders. This includes host communities, service providers,
authorities, government agencies and tourists, under a proper and efficient
management it would bring huge positive impact, and vice versa it would be a negative
factor for environment and communities. Tourism can be either benefitting or
damaging factor to environment and/or community. For instance, sustainable tourism
with fair sharing of benefits to local community is a great approach for poverty
alleviation, but sometimes large tourism complex, which requires extensive land

28
acquisition, would force local people to loosing lands, properties as well as the
opportunity to directly take part in tourism business.
Table 2.5. Tourism & SDGs
SDGs Score Comments

SDG 1 +2 Tourism is a labor-intensive industry, so it plays an important role in hunger


eradication and poverty alleviation in many coastal areas of Viet Nam.

SDG 2 +2 Tourism is a labor-intensive industry, so it plays an important role in hunger


eradication and poverty alleviation in many coastal areas of Viet Nam.

SDG 3 +2 Marine tourism improves the livelihoods of local communities, enabling them with
conditions to take better care of their health and their family health.
SDG 4 +2 Sea tourism promotes local youth to participate in learning because they can
understand the clear differences that education and knowledge could bring.
SDG 5 As one of the sectors with the highest share of women employed and entrepreneurs,
+2 tourism can be an efficient tool for development of women, raising their roles and
significance in families and communities.
Tourist development also would probably improve water supply and drainage
SDG 6 +2 infrastructure, increase sanitation standards, and help improve the living conditions
of local people.
Local people can learn from innovative affordable and clean energy solutions in
SDG 7 +1
ecotourism establishment.
SDG 8 Tourism has contributed 9.2% of national GDP and coastal and marine tourism is
+3 accounted 2/3 of entire tourism sector, is very direct tool for decent work and
economic growth.
SDG 9 Improve infrastructures for coastal regions and islands such as tourism ports, airports,
+3 roads and bridges, drainage, power supply, telecommunication, etc. where there are
tourism development potentials.
Marine tourism contributes to narrowing the gap and promoting development in
SDG 10 +2 remote, isolated and underdeveloped areas, reducing inequality, and thus is an
important contributor to reduce inequity.
SDG 11 +3 Good contribution to sustainable urban development and coastal communities.
SDG 12 +1 Well-mannered tourists with ever growing awareness on sustainability would
encourage local people and suppliers in responsible consumption and production.
SDG 13 -2 Tourism both contributes to and is affected by climate change.
SDG 14 Coastal and maritime tourism, tourism’s biggest segments, rely on healthy marine
+3 ecosystems. So preserving and developing life below water is completely in line with
the future of coastal and marine tourism.
SDG 15 Natural landscapes, natural reserves, rich biodiversity, and natural heritage sites are
+2 often main objectives of tourists. Sustainable tourism can play a major role, not only
in conserving and preserving environment, nature and society.
SDG 16 +2 Contributing to enhancing cultural exchange and mutual understanding.
SDG 17 +1 Strengthen cooperation with stakeholders to contribute to sustainable development
together.

29
2.6. Maritime sector

2.6.1. Resources

The marine and coastal navigation system are the lifeline of the country representing
about 90% of the volume of import and export goods and 100% of cargo passing
through the East Sea. Which is one of the seas with the busiest international maritime
trade routes in the world, connecting the Indian Ocean and the Pacific Ocean with a
trade value of about 5.3 trillion USD annually. The volume of goods exported through
the East Sea by Southeast Asian countries, the newly industrialized countries, and
Australia are 55%, 26% and 40%, respectively. In the region, there are major ports such
as Singapore - the largest container seaport in Southeast Asia and the second largest
in the world.

Viet Nam's maritime industry rapidly developed in the 1990s when the economy and
trade began to open up. The leap forward development of shipping in the years after
“doi moi” showed an increase in the volume of containers transported through Viet
Nam's seaports by more than 1,500% in the period 2001-2019.

2.6.2. Present status

Maritime economy includes three main sub-sectors: shipping, port construction and
services, ships building and repairing.

(1) Marine Transport

Marine transport is one of the five main modes of transport in Viet Nam including road,
rail, inland waterway, sea and air transport. In 2019, there were nearly 493 million
tons of goods transported by sea, accounting for about 23.2% of the total transport
volume of all modes and 95.6% of the volume of imported and exported goods
(corresponding to about approx. 65% of the value of imported and exported goods).
The total volume of goods through the seaport in 2019 is 2.5 times higher than that of
2011, the average growth in the period 2011 - 2019 is 9.18% per year, of which
container cargo increases by 3.1 times, the average growth 13.4%/year. Sea transport
mainly handles large-volume cargos such as containers (accounting for about 35%-
40%), crude oil, petrol, gas, coal, ores, cement, iron and steel, grains, etc.

Up to now, about 90% of the international transport market share (import and export
freight) of Viet Nam is carried out by foreign shipping lines, especially in ocean
container transport which undertakes almost all.
30
(2) Seaports operation

Over the past 20 years, Viet Nam's seaport system has made a remarkable
development in both quality and quantity, meeting the development goals in
accordance with the approved planning in each period and creating a driving force for
the economic, industrial and urban coastal development. It has formed general,
container and specialized wharf areas as well as international gateway ports in Cai
Mep - Thi Vai, Ba Ria - Vung Tau province and Lach Huyen - Hai Phong port which are
competitive with other countries in the region. Most of the general and regional ports
have been newly invested and renovated to allow receiving ships up to 30,000 DWT
and larger. At Hon Gai (Quang Ninh) and Phu Quoc (Kien Giang), investment has been
made to build specialized passenger ports, when these ports are completed, they will
be able to receive international passenger ships with a tonnage of up to 225,000 GT.

By the end of 2019, the national seaport system has 588 berths with a total length of
96,275m, 4 times higher than in 2000. The total volume of goods passed through
reached 664.6 million tons, 8 times higher than in 2000; the average growth of goods
through the port in the period 2000 - 2019 is about 10 - 12%/year, the average growth
of container cargo is 13.4%/year. Viet Nam's container port operations are
concentrated mainly in two main centres, namely Ho Chi Minh City - Vung Tau and Hai
Phong - Quang Ninh, accounting for 70% and 25% of the total container volume of the
country, respectively. The compound growth rate from 2000 - 2019 is more than 15%.

(3) Shipbuilding Industry

There are about 97 shipbuilding factories in Viet Nam (from 1,000 DWT or more) of
which, 92 factories in the North, 13 factories in the Central, and 15 factories in the
South. The total designed capacity of the newly built factories is 2.6 million DWT/year,
but the actual capacity is only 0.8 million DWT/year (reaching 31%) equivalent to 150-
200 ships/year. Viet Nam Shipbuilding Industry Corporation (Vinashin), established in
2006, which is now the Shipbuilding Industry Corporation (SBIC) plays a major role.
Shipbuilding facilities are also owned by Viet Nam National Shipping Lines Corporation,
the Viet Nam National Oil and Gas Corporation and a number of other State
corporation and companies, shipbuilding facilities under the management of the
Ministry of National Defence, local, private and foreign-invested enterprises.

After going through a very rapid development period, Viet Nam’s shipbuilding industry
fell into a spiral of crisis after the collapse of Vinashin. After a long period of crisis, Viet

31
Nam's shipbuilding industry is showing signs of recovery, but there are still many
difficulties and challenges

2.6.3. Interaction with SDGs

The maritime industry has had both positive and negative interactions with 17
sustainable development goals. Impact and magnitude of impacts are summarised in
the following table.
Table 2.6. Maritime Development and SDGs

Goal Score Comments


Shipping activities, seaports and shipbuilding industry have certain contributions to
job creation and income for coastal areas and islands. For example, many coastal
localities have had jobs by participating in seaport operations, operating in the
SDG 1 +1
shipbuilding industry and working in shipyards, working as crew members on ships,
since then. have income, improve the quality of life, eliminate hunger and reduce
poverty.
Maritime contributes a part to the state budget, thus helping the Government with
SDG 2 +1 resources to eliminate hunger and reduce poverty in remote and disadvantaged
areas.
Shipping activities will help increase local revenue, thereby indirectly contributing to
the improvement of health and a good life in the regions. Emissions from shipping
SDG 3 +1 are significant, but only one of many sources released into the atmosphere and
released into the sea. However, transportation has a limited impact on substance
abuse and traffic accidents globally.
Shipping activities will help increase local revenue, which will indirectly contribute
SDG 4 +1
to quality education.
Shipping is one of the industries with a much higher proportion of male employees
SDG 5 -1 than female employees. The development of maritime transport without proper
attention to gender equality will lead to deeper gender stereotypes.

SDG 6
Shipping also contributes to the development of clean energy in the world such as
renewable energy solutions - biofuels, hydrogen, solar and wind power, improved
SDG 7 +2
energy efficiency and continued implementation. emission reduction solutions to
achieve zero emissions.
Maritime accounts for over 90% of Viet Nam's import and export goods (over 60%
of value), so it plays a vital role in Viet Nam's economic growth thanks to the
development of valuable and value-added service industries. high. It is necessary to
SDG 8 +3
apply modern, competitive technology, etc. Furthermore, jobs in ports, on ships and
other maritime-related jobs offer many opportunities for young people of all skill
levels.
Building modern seaport infrastructure and fleets contributes to creating a
SDG 9 +3
synchronous transport system, thereby reducing national logistics costs, increasing

32
trade capacity and competitiveness of foreign trade goods, promoting develop sea
tourism.

Maritime has a limited direct impact on inequality between countries. Coastal


SDG 10 +1 States are responsible for organizing search and rescue operations.

Maritime has a limited direct impact on inequality between countries. Coastal


SDG 11 +2 States are responsible for organizing search and rescue operations

Maritime contributes to improving market access and promoting the export of Viet
Nam's key export products in a sustainable way (reducing logistics costs);
SDG 12 +3 Contributing to strengthening the distribution system and developing the national
product supply chain.

World shipping annually emits about 940 million tons of CO2 and accounts for
about 2.5% of total global greenhouse gas (GHG) emissions. Switching ship-utilized
SDG 13 -2
energy from fossil fuels to low-carbon alternatives, including renewables in the
future, will contribute to reducing greenhouse gas emissions.
Maritime activities may pose some risks to the marine environment such as large
number of vehicles or oil and chemical spills, maritime accidents. The shipping
industry contributes 20% of marine pollution. Transport is the single largest
contributor to the transfer of alien species. Emissions into the atmosphere
contribute to the acidification and eutrophication of the oceans. Maritime
SDG 14 -2 operations have been minimized discharge of ballast water, chemicals, waste, oil
and wastewater, reduced emissions into the atmosphere during operations as well
as introduced anti-biological pollution regulations to prevent the transfer of alien
species, minimizing disturbance to marine life, by minimizing acoustic noise and by
identifying appropriate operational measures in the most environmentally sensitive
areas.
Maritime operations have released ballast water. Exotic species introduced by ships
SDG 15 -1 can affect terrestrial ecosystems.

Maritime operations are the primary transport of goods, which may include illegal
goods. It works around the world to reduce opportunities for corruption, bribery
SDG 16 +1
and illicit flows by enhancing transparency about goods, destinations, financial
transactions and the use of agents. agent and mediator.
Maritime is one of the important topics in bilateral and multilateral negotiations
within the framework of international trade organizations.

Maritime contributes to improving the value and competitiveness of Viet Nam's


SDG 17 +3 foreign trade goods.

Maritime and seaports are very suitable to promote public-private partnerships,


especially in the field of investment, construction and operation of seaports.
Shipping can make an important contribution to the partnership, and there is a

33
dedicated international organization (IMO) to develop international policies and
regulations.

2.7. Environment, Biodiversity & Ecosystem Services

2.7.1. Resources

Viet Nam's sea is a humid tropical sea with diverse and productive ecosystems. Viet
Nam’s marine area has about 20 ecosystems, including marine ecosystems around
coastal islands, offshore islands especially water areas and deep seabed areas (the sea
around Hoang Sa and Hoang Sa archipelagos and islands in the East Sea and South Viet
Nam). Truong Sa). The coastal area, where hundreds of estuaries, lagoons, bays,
islands and archipelagos are concentrated, creates a diverse landscape system with
various ecosystems such as tidal flats and swamps, mangroves, estuaries, lagoons,
coves, coral reefs, deltas, sandbanks, tidal mudflats, upwellings, brackish aquaculture
lagoons, etc. Mangroves, coral reefs, seagrass and lagoons are considered typical
ecosystems because they are the most biodiverse, contains highest conservation value
and ecological-economic significance. Coastal landscapes and islands together with
natural ecosystems with high biodiversity, are also the premise for the development
of economic sectors such as tourism, fisheries and renewable energy. In addition,
marine ecosystems also contain important functions such as carbon sequestration
(seagrass and mangroves), climate regulation and disaster prevention. Viet Nam's sea
is located on important traffic routes that are both opportunities for marine traffic and
services development, but also pose many challenges for pollution and marine
environmental incidents.

2.7.2 Assessment of the current state of the environment and biodiversity


in the process of economic development in Viet Nam

Main marine ecosystems in Viet Nam are facing the risk of a decline in quantity and
quality due to multiple and cumulative impacts. Changes in the area of mangroves in
Viet Nam follow two trends, including a decrease in primary forest area and an
increase in newly planted forest area. Up to now, the primary mangrove forests are
almost gone. This leads to a decline in marine biodiversity, especially loss of spawning
grounds and habitats for aquatic species, and destruction of nearby ecosystems such
as chives and seagrasses. Coral reefs in the sea of Viet Nam are decreasing in area and
coverage of live coral. Coverage of living corals on reefs in coastal areas is decreasing
over time, in some places up to over 30% in the past 10 years. Seagrass ecosystems
are being degraded and the area of seagrass beds has been reduced due to human

34
activities such as fishing, boat mooring, aquaculture causing environmental pollution,
port construction activities and tourist facilities.

According to monitoring data, the quality of Viet Nam's marine environment data is
still good, the pollution index is within the allowable limits. However, coastal areas and
estuaries are at high risk of pollution, and there have been serious marine
environmental pollution incidents. In 2016, the wastewater discharge of Hung Nghiep
Formosa enterprise caused serious coastal pollution to the coastal areas of Ha Tinh,
Quang Binh, Quang Tri and Thua Thien Hue provinces. Oil spills are still complicated
and pose a high risk to Viet Nam's sea. Pollution caused by garbage, wastewater from
the mainland and coastal socio-economic activities has not been completely
prevented. The alarming problem of waste and plastic pollution causes damage and
deterioration of coastal ecosystems.

2.7.3. Interaction with SDGs

Preliminary assessment of the correlation between Environment, Biodiversity &


Ecosystem Services and SDGs in Viet Nam is as follows.
Table 2.7. Environment, Biodiversity & Ecosystem Services and SDGs
Goal Score Linked to Environment, Biodiversity & Ecosystem
Services
SDG 1 +2 Biodiversity conservation, environmental protection and the
expansion of ecosystem services enhance potential for economic
activities (marine tourism, fisheries, renewable energy, etc.),
increase the number of job opportunities that bring higher income
for coastal residents.
SDG 2 +2 Biodiversity conservation helps increase the fisheries resources
that yield high value of food supply.
SDG 3 +3 Marine ecosystems (mangroves, coral reefs and sea grasses) can be
valuable raw materials for the production of medicine. Clean water
helps to protect everyone's health when swimming.
SDG 4 +2 Biodiversity provides broad and rich knowledge through marine
flora and fauna surveys that support biological students,
researchers, and more.
SDG 5 +1 Women are a large force in all activities related to biodiversity
conservation.
SDG 6 +3 Protecting the marine environment and biodiversity will contribute
to protection and supply of clean water. Notably, desalination is an
important process to ensure enough clean water in some
countries.

35
SDG 7 +1 Maintaining a safe marine environment will indirectly support wind
power development and offshore oil and gas production.
SDG 8 +2 Protection of the environment and marine biodiversity contributes
to the sustainability of marine economic sectors such as tourism
and fisheries.
SDG 9 0 There is a two-way relationship, positive and negative: Positive and
negative, considered neutral.
SDG 10 +1 Increasing job opportunities for coastal residents through
protecting environment can help reduce inequality in society.
SDG 11 +2 Cities in 28 coastal provinces of Viet Nam have many opportunities
for urban development if they maintain the protection of marine
environment and biodiversity and utilize sources of revenue from
ecosystem services.
SDG 12 +3 High demands for responsible consumption and production.
SDG 13 +3 The mangrove ecosystem makes an important contribution to
climate change response and disaster prevention. One of the most
essential roles of marine ecosystem services is carbon storage - an
indispensable solution to mitigate climate change.
SDG 14 +3 Enhancement of marine environmental protection and biodiversity
conservation is the realization of SDG14.
SDG 15 +3 Mangroves play a role in preventing storms, natural disasters,
protecting forest ecosystems and inland resources.
SDG 16 +3 Protection of the marine environment and biodiversity requires aid
from all people at all levels.
SDG 17 +2 Strengthen cooperation between the parties to protect the marine
ecological environment.
Source: Nguyen The Chinh, 2021

Table 2.40 shows that the link of environment, biodiversity and ecosystem with
sustainable development goals is mainly positive, except for goal number 9 where a
two-way impact is present. For industrial development, infrastructure has a negative
impact (-) where as for creativity, environment, ecosystem and biodiversity it has a
positive relationship (+). Therefore, the total relationship is assessed by O.

36
3. Blue economy scenarios

3.1. Introduction

On the basis of assessing the current status, analyzing the context, market trends,
exploitation capacity as well as the national socio-economic development
requirements and the requirements for the development of the blue sea economy,
each ocean economic sector has particularly outlined the development scenarios for
the period up to 2030. The analysis has assumed the specific conditions of each
scenario in each sector and proposed the scenario to be developed with possible
assessments from experts’ point of view for reference. There are two scenarios to be
considered for each sector:

Baseline Scenario: Developed from the assumption that resource conditions and
policy mechanisms are based on current approaches and plans and strategies have
been developed up to 2030. The baseline scenario represents the business-as-usual
scenario for the country based on approved policies and plans. Economic sectors still
develop in their available marine space, without causing major conflicts to other
marine economic sectors. The environmental impact of marine economic sectors is
still at an acceptable level, although there have not been any significant actions to
improve the environment and enrich the marine ecosystem. Economic growth is
basically similar to the average of the past 10 years.

33
Blue Scenarios: The Blue
Scenarios are built on the
idea that additional realistic
and feasible interventions
by 2030 could change
economic and social
outcomes in a more positive
direction than the baseline
scenario. Under this
scenario, mechanisms and
policies are adjusted to be
more suitable with the
requirements of increasing

33
http://www.blueeconomyconference.go.ke/wp-content/uploads/2018/11/SBEC-Infographic-Official-
compressed.pdf

37
quality and ensuring environmental sustainability and maintaining marine resources.
The environmental impact of marine economic sectors is still at an acceptable level
and real actions have been taken to improve the environment and enrich the marine
ecosystem such as issuing marine conservation policies and regulations, planning to
develop the system of marine protected areas. Marine economic sectors still basically
develop in their available marine space, without causing major conflicts to other
marine economic sectors.

3.2. Fisheries and aquaculture

Development prospects of Viet Nam's Aquaculture and Fisheries depend on many


factors, of which economic, social and environmental sustainability is decisive. Limits
on aquatic resources, land, fishing and farming techniques, human resources,
investment capital, and markets will limit the development direction of the
Aquaculture and Fisheries sector. On the other hand, the prospects of Blue
Aquaculture & Fisheries also depend on the correlation with other marine economic
sectors, especially areas with disputed marine resources.

To visualize the Development prospects of Viet Nam's Aquaculture and Fisheries, this
report presents two scenarios: baseline and blue scenarios as follows.

3.2.1. Baseline Scenario

The baseline scenario reflects the current development trends, policies and priorities
in the absence of any changes. The baseline provides a reasonable trajectory for
growth and structural change of the sector for the ten-year period 2020-2030 that can
be used as a basis for comparison.

Capture fisheries:

For fisheries stock, we assume that without any improvement in the fisheries
management regimes and fisheries resource protection actions, the average annual
biomass of marine fish resources in the period of 2021-2030 will still show a decreasing
trend of 1% per year as the previous period of 2005-2016. Furthermore, this scenario
also assumes that the marine fisheries resources in the deep-sea areas and continental
shelf areas of Viet Nam have not been conducted.

For total capture catch, the annual capture catch has been increasing gradually by
5.36% per year between 2010-2019. This trend will be continued with the increase
rate of 5% per year in the next period of 2021-2030.

38
34
For the fishing vessel fleet and horsepower, the number of near shore and middle
shore fishing vessels will show a decreasing trend of 5% between 2013 to 2019 as
mentioned in the D-FISH (2019). The number of offshore vessels will be frozen and not
be allowed to be increased in the next few years. Therefore, offshore vessels will be
assumed to be a stable trend (remained as the number of 2019 vessels) at about 30.47
thousand vessels. However, the total horsepower of vessel fleet has increased by
6.58% per year in the last ten years and will be assumed to continue to increase by 6%
per year in the next period due to technical improvements in fishing vessels. This
means overfished stocks are increasingly fished in the next period. Therefore, at some
point, there will be an exponential decline of catch per unit of effort (CPUE) and the
multiple species stocks move towards a crash, with a rapid decline of CPUE. In the last
periods of 2010-2019 (10 years) and 1990-2019 (30 years), CPUE declined annually by
1.05% per year and 4.1% per year, respectively. However, lack of stock/capture
information for both nearshore and offshore fisheries, this leads to high uncertainty
in fish stock data in Viet Nam (mentioned in section of 2.3.1 and in the later section of
challenges 7.1). Therefore, it is very difficult to predict for how long the marine catch
and horsepower could continue to increase or will move toward an exponential
decrease (a crash),
leading to sharp decline
of CPUE. Therefore, it is
recommended to take
the growth rate of CPUE
in the last 30 year-time
of 1990-2019 (instead of
10 year-time of 2010-
2019) with the
decreasing rate of 4%
per annum as CPUE
growth rate in the next Hoai Nhon Commune’s (Binh Dinh) fishing vessels –
Image by: QUIN QUIN
period 2020-2030.
According to World Bank (WB, 2017), the cost of fishing is highly dependent on the
fishing effort, or more formally the fishing cost is the function of fishing effort, C = F
(e). Overfishing has a significant cost associated with it. Therefore, in this baseline
scenario, when the total horsepower of vessel fleet will continue to increase by 6% per
year in the next period, the cost of fishing will rapidly increase as too many fishermen
and vessels will chase fewer fish. If overfishing is of great enough magnitude, the

34
https://www.sggp.org.vn/khai-thac-thuy-san-ben-vung-chuyen-nghiep-lam-dung-de-di-xa-nhung-diem-sang-
giua-khoi-xa-770926.html

39
fishermen may fish at a loss with extremely high efforts and associated costs (C),
yielding negative profit (a loss). However, with high uncertainty in fish stock data in
Viet Nam, we cannot reliably estimate over a long period of time and assume that the
increase rate of intermediary cost of capture production in the next decade will be at
3.79% per year as the last period 2010-2019.
Coastal and Marine aquaculture:
Shrimp farming is one of the key farming species in brackishwater in coastal areas of
Viet Nam. The potential area for coastal shrimp farming is about 750,000 hectares with
about 720,000 hectares already used35. In this baseline scenario, we assume that the
rate of shrimp farming expansion in the next period of 2020-2030 will be increased by
1% per year as the previous period (1.24% in 2010-2019). Due to continuous expansion
of farming areas, the environmental impacts and disease outbreak will be more
serious, leading to the costs for disease prevention and environmental treatment to
increase and the crop failure frequency will be high at 20%36. With the assumption of
20% crop failure accumulative over the whole period of 2020-2030, the annual
average shrimp farming productivity and production will be reduced in the next
decade are predicted at by about 2.5% and 2% per year, respectively.

Shrimp farming in Long An Province – Image by: Hồ Cầu/VNA37

35
VIFEP (2012), Master Plan for Fisheries Sector Development towards 2020 and visions to 2030,
Hanoi.
36
According to OXFAM (2018), the crop failure in shrimp farming is about 30% for white leg vannamei
shrimp and 15% for Paneus tiger shrimp in the period of 2010-2016. In this UNDP blue economy
research, as the baseline scenario expands shrimp farming area further, it is assumed that the rate of
crop failure of 20% is continued to happen in the next decade.
37
https://www.vietnamplus.vn/long-an-danh-1244-ty-dong-phat-trien-vung-nuoi-tom-nuoc-
lo/638660.vnp

40
The potential area for marine aquaculture development is about 500,000 hectares38
located in closed bays, nearshore islands, middle-shore areas and low tidal flats. These
areas can be exploited for marine aquaculture development (marine fish, mollusk and
other species of lobster, seaweed, etc39). Currently, about 57,000 hectares out of that
area have been used for marine aquaculture development and the remaining 443,000
hectares are still potentials for exploitation, especially in the middle-shore areas. The
main reasons for under-development of the marine aquaculture sector in the last
period are difficulties and costs constraints in high initial investments on sea cage
culture and low farming techniques, while the market price of cultured seafood is still
low and export markets for local cultured seafood is still limited. In this baseline
scenario, we assume that those constraints cannot be overcome in the next period,
thus leading to the growth rate of marine aquaculture area, production and
productivity as still the same as previous period 2010-2019 at 4.6% per year, 8.7% per
year and 4% respectively.
For other parameters, we assume that the growth rate of aquaculture labour and
intermediary cost of aquaculture production in the next period will be the same as
previous ones.
The baseline scenario for marine capture and aquaculture sector will produce the
sector’s real GDP and real GNI in the year 2030 at VND 122.1 and 119.66 thousand
billion, respectively; and per capita, GNI would reach VND 35.65 million per person.

3.2.2. Blue Scenario

The blue scenario for fisheries and aquaculture is a number of management actions
taken which modify the baseline scenario and are outlined in the subsequent sections.
Blue capture fisheries:
In this blue scenario, we predict that, management agencies at both levels of local and
central governments will take appropriate actions, as described in detail below, in
fisheries management and fisheries resource protection to improve country’s marine
fisheries sustainability according to the regulations in the 2017 Fisheries Law.
Furthermore, the marine fisheries resources in the deep-sea areas and continent shelf
areas of Viet Nam will be assessed fully during 2021-2030 (personal discussion with D-
FISH officers and RIMF researchers) so, the add-on to those standing potential fisheries

38
MARD (2018), National strategy for marine aquaculture development towards 2030 and visions to
2050, Hanoi.
39
The farming area and production of lobster, seaweed, crab, etc account for small number in the total
marine and coastal aquaculture, so those species are grouped together in only one category.

41
resources in the next period can be predicted. Therefore, the average annual biomass
of marine fish resources in the period of 2021-2030 will revert the decreasing trend of
the baseline scenario and will be maintained at the level of 4.365 million tonnes per
40
year.
In terms of annual
catch, in order to
ensure sustainable
development of
capture fisheries and
fisheries resources, the
annual marine catch
will have to be reduced
to the defined level of
maximum sustainable
yield (MSY) of 2.65 –
2.75 million tons per
Fisherman in Khanh Hoa catching tuna fish. (Image by:
year in the next period
Nguyễn Dũng/VNA)
of 2020-2030. This
MSY has been identified by Research Institute for Marine Fisheries (RIMF) with the
models of Gulland (1971) and Schaefer (1954). To reach this MSY in 2030, the annual
marine catch has to be reduced gradually by 2% per year in the next period of 2020-
2030. This means that, the increase trend in annual catch in the previous period of
2010-2019 have stop since 2020 onwards. Therefore, from this target of reaching the
MSY in 2030, other indicators for capture fisheries are developed accordingly (such as
fishing effort, CPUE, labour) as follows: Fishing effort: With fishing vessel fleet and
associated horsepower, the total of 96,609 fishing vessels in 2019 include four types
of vessel length operated in three different fishing grounds: nearshore, middle-shore
and offshore. As analysis in above sections, the fishing vessels with the length of 6-
12m and 12-15m operated in the nearshore and middle-shore will be the targets for
vessel cut off in the next period for fishing capacity reduction purpose, especially with
the vessels 6-12m operated in nearshore areas. This is due to most of the 12-15m
vessels were built with wood and installed with outdated engines from 15-20 years
ago. Some of those vessels do not meet safety requirements for long sea trips,
especially in bad sea weather. On the contrast, majority of the 30,400 offshore vessels
are quite new and invested with higher investment costs, so their life times are still

40
https://www.vietnamplus.vn/ho-tro-lao-dong-danh-bat-va-che-bien-thuy-san-dong-nam-a-di-cu-an-
toan/690536.vnp

42
long and not easy to cut off. Therefore, we predict that the number of nearshore and
middle shore fishing vessel fleets will be continuously reduced by 5% per year in the
next period of 2021-2030 to 40,000 vessels/boats in 2030, while the number of
offshore vessels will be frozen at the level of 30,400 vessels (as previous period 2010-
2019) and not be allowed to be increased in the next few years. Accordingly, the total
horsepower for nearshore and middle-shore vessels will also have to be reduced for
sustainable development purpose with the reduction rate of 5% per year, higher than
the one in the previous period of 2013-2019 (0.26% per year). In contrast, the total
horsepower for offshore vessels will be the same for the previous period as the
number of vessels will be stabilized (See annex 1 for detailed data of marine capture
in the last period 2010-2019 and projection for the next period 2020-2030).

Although the total horsepower for nearshore and middle-shore vessels will be reduced
and several effective management actions will be taken to solve the problem of
overfishing and overcapacity in capture fisheries, we still see that the CPUE will still
have to be reduced by 1% per year in the period of 2020-2030 for the purpose of
resource protection and recovery and also because of the total annual maximum
sustainable catch will be also reduced by 2% per year as mentioned above.
For capture labour, as the number of nearshore boats and middle shore vessels will be
cut off in the next period, together with the technical improvement in advanced
capture techniques, the number of labours required to work in each fishing
boat/vessel will decline, leading to the total number of labours involved in this sector
to reduce at a rate of 0.63% per year. It must be noted that at the same times, the
technical and management skills of the fishermen will have improved with more
professional skills.
For intermediary costs of capture production, we assume that it will be maintained at
the previous level given the context that the CPI of the national economy will be
fluctuated not so much.
Blue aquaculture:
In the last period of 2010-2019, about 720,000 hectares out of potential 750,000
hectares have already been used for existing shrimp farming. And we predict that the
areas for shrimp farming for the next period of 2020-2030 will be maintained at the
same level of area as in previous period with 720,000 hectares. At the same time, more
efforts will be put into shrimp farming management and technical improvement in
order to increase the level of sustainability of those existing 720,000 hectares of
shrimp farming. Also, to ensure sustainable shrimp yield, the shrimp production and

43
productivity should be increased only slightly in the next period (due to the continual
improvement in shrimp farming techniques), with the growth rate of less than
previous ones, at 3.5% per year for both production and productivity (compared to
5.5% and 4.4% per year in the last period).
For marine aquaculture, about 57,000 hectares out of 500,000 hectares potential area
(only 11.4%) have been used for marine aquaculture development in the last period
of 2010-2019. With more investments on sea cage culture, and marine fish farming
technique and hatchery improvements, especially in middle-shore areas, about
105,000 hectares of those potential areas could be further exploited for marine fish,
mollusc and other species farming in the next period with the annual area growth rate
of 5.7%.
To be specific for each farming species, the annual growth rate of farming areas for
marine fish, mollusc and other species will be at 16.4%, 1.8% and 8.5% per year,
respectively.
More efforts will be put on technological research and better management practices
for marine aquaculture, the marine aquaculture production and productivity are
predicted to increase by 11.8% per year and 5.8% per year, respectively. For each
farming species, the annual growth rate of productivity for marine fish, mollusc and
other species will be at 8%, 3% and 5% per year, respectively.
For aquaculture labour, in following with the general trend of higher technological
application in shrimp aquaculture farming, automatization will be more common in
farming work, such as auto-feeding, auto environmental monitoring and responding,
e-traceability, e-commerce, e-advisory and e-extension, etc. Therefore, with shrimp
farming area stable, the work load needed for one unit of shrimp farming hectare will
be reduced and the total number of labourers required for the sector will also decline
at the annual rate of 0.52% per year.
For marine aquaculture, as the farming areas are projected to increase significantly in
the period of 2020-2030 for all key species of marine fish, mollusc and other species,
the number of jobs that this sector may create in that period will increase at 18.3% per
year, 3.9% and 7.9%, respectively. The technical and management skills of farmers will
also be enhanced toward more professional and skilful.
For intermediary costs of aquaculture production, we assume that it will be
maintained at the previous level given the context that the CPI of the national
economy will be fluctuated not so much.
In this recommended development scenario, we calculate GDP and GNI of the sector
at real price in 2020 for the period of 2020-2030.
44
The recommended blue scenario for marine capture and aquaculture sector will
produce the sector’s GDP and GNI at real price in 2020 in the year 2030 at VND 337.93
and VND 331,17 thousand billion, respectively; per capita, GNI would reach VND
114.20 million per person.

In the blue scenario, as annual marine catch in 2030 has been defined to be reduced
to MSY of 2,750,000 MTs, reduced by 22.9% comparing to the year of 2019 (3,565,000
MTs), the fishing efforts has to be also cut off in 2030 by 26.8% from 96,609 vessels in
2019 to 70,400 vessels in 2030.

The mentioned baseline and sustainable development scenarios for marine capture
fisheries and aquaculture are presented in the below table:
Table 3.1. Baseline vs blue scenarios for next period 2020-2030

Baseline
Status in 2010-
Item Unit scenario 20- Blue scenario 20-30
2020 period
30
Marine & Coastal Capture
Fisheries
Fisheries stock Maintain at 4.36
%/year - 1.36 - 1.36
tonnes, no decline
Total marine & coastal capture - 2%, to 2.75 million
catch %/year + 5.36 +5
tonnes per year
Offshore fishing vessel fleet %/year + 2.57 0 0
Nearshore fishing boats
%/year - 5.42 -5 -5

Total horsepower %/year + 6.58 +6 -1


CPUE %/year - 1.05 -4 -1
Intermediary cost %/year + 3.79 + 3.79 0
Labour %/year + 4.61 + 4.61 - 0.63
Coastal/ Marine Aquaculture

Farming area - Shrimp %/year + 1.24 + 1.24 0


Production - Shrimp %/year + 5.5 - 2.0 + 3.5
Productivity - Shrimp %/year + 4.4 - 2.5 + 3.5
Area - Marine aqua %/year + 4.56 + 4.56 + 5.7
Prod - Marine aqua %/year + 8.68 + 8.68 + 11.8
Productivity - Marine
aquaculture %/year +3.94 + 3.94 + 5.8

45
Labour – Shrimp %/year + 3.68 + 3.68 - 0.52
Labour – marine aqua %/year + 4.09 + 4.09 + 13.56
Policy 2017-Fisheries Law,
2003-Fisheries 2003-Fisheries
enforced since Jan
Law Law
2019
Source: Cao Le Quyen, 2021

Table 3.2. Projection for GDP, GNI and GNI per capita (2030) at real price in 2020 of
marine capture and aquaculture in the next period of 2020-2030
Sustainable development scenario 2020-
Baseline scenario 2020-2030
2030
GNI per
Year GDP GNI GDP GNI GNI per capita
capita
VND thousand VND thousand VND thousand VND thousand
VND million VND million
billion billion billion billion
2020 216.73 212.40 88.95 218.80 214.42 91.94
2021 213.68 209.41 84.85 227.52 222.97 94.57
2022 209.66 205.47 80.53 236.86 232.12 97.21
2023 204.53 200.44 75.97 246.84 241.90 99.81
2024 198.13 194.17 71.15 257.50 252.35 102.36
2025 190.30 186.49 66.06 268.87 263.49 104.81
2026 180.83 177.22 60.66 281.00 275.38 107.12
2027 169.53 166.14 54.95 293.92 288.04 109.26
2028 156.15 153.03 48.89 307.69 301.53 111.18
2029 140.44 137.63 42.46 322.34 315.89 112.84
2030 122.10 119.66 35.65 337.93 331.17 114.20
Source: Cao Le Quyen, 2021

According to the National Social-economic development Strategy towards 203041, the


annual growth rate of national GDP is projected at 7% per year in the period of 2020-
2030. Therefore, we can estimate the annual national GDP of the whole country and
the contribution of ocean/coastal capture and aquaculture to the national GDP in the
next decade.

In the recommended blue scenario, the GDP and GNI of ocean/coastal capture and
aquaculture at real price in 2020, by 2030 will be VND 337,93 billion and VND 331,17
billion and contribute about 2.76% and 2.74% to the nominal national GDP and GNI,
respectively. These contributions are clearly much better than the baseline scenario
with its contributions of only 1% and 0.99%, respectively. See below tables:

41
https://nhandan.com.vn/tin-tuc-su-kien/bao-cao-tong-ket-thuc-hien-chien-luoc-phat-trien-kinh-te-
xa-hoi-10-nam-2011-2020-xay-dung-chien-luoc-phat-trien-kinh-te-xa-hoi-10-nam-2021-2030-621156/
(day of information accessing is 28 Oct 2020)

46
Table 3.3. Projection for the contribution of GDP, GNIs of marine fisheries (2030) at
real price in 2020 to national GDP and GNIs in the next period 2020-2030 for the
blue scenario

Fisheries and Contribution of fisheries


At national level
Aquaculture and aquaculture

unit: VND thousand billion unit: VND thousand billion Unit: %


Year fish/aqua. fish/aqua. Nominal Nominal national GDP GNI
GDP GNI national GDP GNI

2020 218.80 214.42 6213.03 6150.90 3.52% 3.49%


2021 227.52 222.97 6647.95 6581.47 3.42% 3.39%
2022 236.86 232.12 7113.30 7042.17 3.33% 3.30%
2023 246.84 241.90 7611.23 7535.12 3.24% 3.21%
2024 257.50 252.35 8144.02 8062.58 3.16% 3.13%
2025 268.87 263.49 8714.10 8626.96 3.09% 3.05%
2026 281.00 275.38 9324.09 9230.85 3.01% 2.98%
2027 293.92 288.04 9976.78 9877.01 2.95% 2.92%
2028 307.69 301.53 10675.15 10568.40 2.88% 2.85%
2029 322.34 315.89 11422.41 11308.19 2.82% 2.79%
2030 337.93 331.17 12221.98 12099.76 2.76% 2.74%
Source: Cao Le Quyen, 2021

Table 3.4. Projection for the contribution of GDP, GNIs of marine fisheries (2030) at
real price in 2020 to national GDP and GNIs in the next period 2020-2030 for the
baseline scenario.

Fisheries and Contribution of fisheries


At national level
Aquaculture and aquaculture

unit: VND thousand billion unit: VND thousand billion Unit: %


Year fish/aqua. fish/aqua. Nominal Nominal national GDP GNI
GDP GNI national GDP GNI

2020 216.73 212.40 6213.03 6150.90 3.49% 3.45%


2021 213.68 209.41 6647.95 6581.47 3.21% 3.18%
2022 209.66 205.47 7113.30 7042.17 2.95% 2.92%
2023 204.53 200.44 7611.23 7535.12 2.69% 2.66%
2024 198.13 194.17 8144.02 8062.58 2.43% 2.41%
2025 190.30 186.49 8714.10 8626.96 2.18% 2.16%
2026 180.83 177.22 9324.09 9230.85 1.94% 1.92%

47
2027 169.53 166.14 9976.78 9877.01 1.70% 1.68%
2028 156.15 153.03 10675.15 10568.40 1.46% 1.45%
2029 140.44 137.63 11422.41 11308.19 1.23% 1.22%
2030 122.10 119.66 12221.98 12099.76 1.00% 0.99%
Source: Cao Le Quyen, 2021

3.3. Oil & gas

3.3.1 Baseline scenario

The main feature of the exploration business in oil & gas industry is high uncertainty.
The outcomes are depending on many factors: luck of exploration wells, oil price, level
of investment, timing of projects, geopolitics, policy etc. This is why prediction and
planning in the sector are always difficult. There are always ranges in the Master Plan
of Oil & Gas Sector of Viet Nam, like yearly reserves added from 10-20 million tons,
domestic oil production from 6-12 million tons and domestic gas production from 13-
19 billion m3 etc.

Therefore, for oil & gas sector the scenarios will be developed as yearly average
outcome of main products and calculated economic indicators through economic
models for period 2021-2025 and 2026-2030. Analyzing the Master Plan of Oil & Gas
Sector of Viet Nam and current situation, including COVID-19, energy transition, we
predict that if no change in policy and situation, it is likely that oil & gas industry can
achieve only the lowest range or even could not achieve some of targets in the Master
Plan. We choose this as the baseline scenario.

42
In the current Energy Transition trend, the blue scenario is also developed. This
scenario happens when
PetroViet Nam transforms into
a low carbon energy company
which requires efforts and
policy to bring the production
to around the level of 2012-
2015. But the key thing in this
scenario is to change mindset
and the direction towards blue
development, investment in Tam Dao 01 Rig of Vietsovpetro. (Image by: Petro
Times)

42
https://petrovietnam.petrotimes.vn/nganh-dau-khi-viet-nam-voi-nhung-buoc-ngoat-lich-su-539300.html

48
renewable energy, development of low carbon products and services, more value-
added, more efficient, more energy saving within oil & gas activities, and better
protection of environment. This blue scenario to 2030 is also aligned with the Viet
Nam’s COP26 climate commitmentas it produces oil & gas to meet needs during
progressive reductions towards net zero in 2050, while promoting renewable energy
growth and reduced environmental impacts.

The main production volume and the economic indicator of each scenario is
summarized in the tables 3.6, 3.7, 3.8. The economic dimensions in terms of GDP and
state budget contribution are calculated using economic model and the long-term oil
prices predicted by Wood Mackenzie.
Table 3.5. Wood Mackenzie’s oil price forecast at the end 2021 (Unit: USD/barrel)43
Year 2022 2023 2024 2025 2026 2027 2028 2029 2030
Brent price 71.3 72.4 69.5 76.9 80.6 82.2 83.8 86.7 89.6

The baseline scenario: The big fields in decline stage; development of other fields
delayed; marginal fields not attractive to develop; reserves replacement ratio less than
1; lack of appropriate investment due to policy, COVID-19 and energy transition. If no
facilitating policy and situation change, the production volume of the industry output
will go down, the potential is underdeveloped;
Table 3.6. Summary of the Baseline Scenario
Items/Indicators 2021- 2025- Present constraints/Required
2025 2030 facilitating mechanisms
Oil (Million Tons) 7 5 Present constraints:
Average yearly production

Gas (Billion m3) 8.2 14  The big fields in decline stage;


Petroleum products 6 6  Development of new fields delayed;
(Million Tons)  Marginal fields not attractive for operators
volume

Fertilizers (Thousand 1,600 1,600 to develop;


Tones)  Reserves replacement ratio less than 1;
LPG (Thousand Tons) 271 462  Almost no new investment on exploration
Gas power (Billion 12.3 19.9 Facilitating mechanisms:
KWh)  Approval processes should be on time so
GDP (Thousand 299 384 that the Block B, Ca Voi Xanh projects
Average yearly indicator

Billions VND) could deliver first gas in the early 2026-


GNI (Thousand 137 175 2030;
Billions VND)  No substantial changes in policy and
Contribution to 146 187 regulatory framework
budget (Thousand
Billions VND)
R/P (years) <50 <50

43
Note the effect of oil price variability. GDP, GNI, are highly sensitive to oil prices. So all scenariors
are based on this assumption of oil prices predicted by Wood Mackenzie.

49
RRR <1 <1
Emissions (Million 35 44
Tones CO2e)

Source: Nguyen Hong Minh, 2021.

3.3.2. Blue Scenario

In this case, PetroViet Nam transforms into a low-carbon energy company. In this
scenario, the efforts are made to bring oil and gas production volume back to level of
2012-2015; the value of offshore wind, other renewable energy, low-carbon products
and services will be added. On the other hand, the operation to be more efficient,
more value added, less energy consuming and less impacts on the environment. The
targets of PetroViet Nam on 100 megawatts (MW) of renewable capacity by 2025 and
900 MW by 2035 are taken from Reuters’ article in media44.

The sustainability or impacts on the environment in terms of CO2e emissions is


predicted using the methodology outlined in LT Nhat (2018).
Table 3.7. Summary of the blue scenario
2021- 2025- Present constraints/Required
Items/Indicators
2025 2030 facilitating mechanisms
Oil (Million Tons) 8 9 Present constraints:
 The key gas Block B and Ca Voi Xanh
Average yearly production

Gas (Billion m3) 9 18


Petroleum products (Million projects are delayed
6 6
Tons)  No new foreign investment in
Fertilizers (Thousand Tones) 1,600 1,600 development of new fields, exploration
LPG (Thousand Tons) 297 594 of new blocks due to policy and/or
Gas power (Billion KWh) 12.8 25.6 global situation;
volume

Renewable power (Billion  State own enterprises are facing


0.1 1.3
KWh) difficulties in investment in oil & gas as
GDP(Thousand Billions VND) 312 462 well as in other businesses due to
GNI (Thousand Billions VND) 143 211 required procedures
Contribution to budget Facilitating mechanisms:
152 220  Approval processes accelerated so that
(Thousand Billions VND)
R/P 50 50 key gas projects could deliver first gas
RRR 1 1 in the early 2020s;
 Policy change to attract foreign
Average yearly indicator

investment in production
enhancement, development new fields
and exploration in open blocks
Emissions (MT CO2 e) 36 50
 Policy change to empower state own
enterprises to make investment oil &
gas and other related to energy
transition businesses

44
PetroVietnam to invest in renewables amid shrinking crude oil production | Reuters

50
 PetroViet Nam to transform into the
low carbon energy company, with
more efficient operation, less impacts
on the environment

Source: Nguyen Hong Minh, 2021.

The authors recommend this blue scenario as it keeps reasonable contribution to the
national economy, develops toward more efficient operation, reduces of CO2
emissions and contribution to Viet Nam's commitments at COP26.
Table 3.8. GDP, GNI, GNI per capita of oil & gas industry in period of 2020 – 2030
(unit: thousand billion VND)

Baseline Scenario Blue scenario

GNI per GNI per


GDP** GNI*** GDP GNI
Year Labour* capita capita
VND VND VND VND
VND million VND million
thousand thousand thousan thousand
per person per person
billion billion d billion billion
2021 49,233 282 129 2,615 282 129 2,618
2022 49,725 290 133 2,668 297 136 2,730
2023 50,223 299 137 2,721 312 143 2,839
2024 50,725 316 144 2,847 342 156 3,081
2025 51,232 333 152 2,970 372 170 3,318
2026 51,744 350 160 3,091 402 184 3,550
2027 52,262 367 168 3,209 432 197 3,778
2028 52,785 384 175 3,325 462 211 4,000
2029 53,312 401 183 3,437 492 225 4,218
2030 53,846 418 191 3,548 522 239 4,430
Note:

*It is forecasted that the number of experts will increase by 1%/year due to the expansion of
production along the value chain, which has offset the exploitation labour decrease. The number of
employees in both scenarios remains the same because the Blue Scenario is expected to have higher
labor productivity and higher efficiency.

** Estimated for 2021. Assume in 2 years reach the average of 2021-2025 and then a steady growth
rate starting 2023 to reach the average of 2026-2030 in 2027 and Wood Mackenzie’s oil prices at the
end of 2021.

***GNI=GDPx 0,457 (on average)

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3.4. Marine renewable energy

Based on the legal background (e.g. decisions, strategies, etc.) and current contexts45,
there can be 2 development scenarios of Viet Nam's marine wind energy as follows:

46

Marine wind energy in Bac Lieu Province (Image by: VN Express)

3.4.1 Baseline Scenario

Baseline scenario is the scenario where a suitable capacity amount from offshore wind
power plants which are able to be connected to the power grid to be developed, is
being considered in the power generation structure of draft PDP VIII, and new policies
on offshore wind power anticipated to be promulgated in the appropriate period.

Total proposed installed capacity will be 7,000MW by 2030. Summary contents of


development in this scenario as follows:

i). Near-shore wind power projects

The focus is on exploitation of all electricity amount at economic prices of the all near-
shore wind power projects. The particulars are as follows:

By 2030: Total installed capacity will be 4,000MW, in which:

 In the Mekong river delta region will have 4,000MW

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Available at the draft final thematic report: Marine Renewable Energy, dated Jan.2021.
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 In the remained locations and regions: 0 MW

ii). Off-shore wind power projects: Located in the areas beyond 3 miles from the
water boundary line to 50 km:

By 2030: Total installed capacity will be 3,000MW, in which:

 In the Mekong river delta region will have 1,500MW


 In the South Central region will have 1,500MW
 In the remaining locations and regions: 0MW

iii). Off-shore wind power projects: Beyond 50km:

By 2030: 0MW

3.4.2 Blue Scenario

Blue scenario is the scenario where good offshore wind power projects which have
been identified and proposed to be included in the PDP VIII will be considered with
exploitation at maximal level of techno-economic potential. This scenario will also
provide significant impetus to the early stages of progress towards new climate
targets.

Total installed capacity will be 10,000MW by 2030. Summary contents of development


in this scenario as follows:

i). Near-shore wind power projects

The focus is on exploitation of all electricity amount at economic prices of the all near-
shore wind power projects. The particulars are as follows:

By 2030: Total installed capacity will be 4,500MW, in which:

 In the Mekong river delta region will have 4,000MW


 In the remained locations and regions: 500MW

ii). Off-shore wind power projects: Located in the areas beyond 3 miles from the
water boundary line to 50 km:

By 2030: Total installed capacity will be 5,000MW, in which:

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 In the Mekong river delta region will have 1,000MW
 In the South Central region will have 3,500MW
 In the remained locations and regions: 500MW

iii). Off-shore wind power projects: Beyond 50km:

By 2030: 500MW

The two scenarios (baseline and blue) were analysed for installed capacity, generated
electricity, LCOE off-shore wind project groups, total revenue from selling electricity
from off-shore wind project groups by locations by different conditions. In addition,
the potential GHG emission reduction, total coal combustion demand reduction
compared to baseline by the target year (2030) are summarized in the following table.
Table 3.9. Main indicators of two scenarios proposal for offshore wind development
by locations in 2030
By the year 2030
Baseline scenario Blue scenario
Offshore wind Total Near Off Off Total Near Off Offshore
shore Shore shore> shore Shore >50
≤50 50 ≤50 km
km km km
Installed capacity
7,000 4,000 3,000 0 10,000 4,500 5,000 500
(MW) by location
Mekong delta and
5,000 4000 1000 0 5,000 4000 1000 0
South East region
South Central
2,000 0 2000 0 4,500 500 3500 500
region
Remain regions 0 0 0 0 500 0 500 0
Capacity Factor %)
Mekong delta and
39.9 44.5 44.5 39.9 44.5 44.5
South East region
South Central
42 48 49.5 42 48 49.5
region
Remain regions 32 40.1 40.1 32 40.1 40.1
Net annual energy
production-P50 26,289 13,981 12,308 - 38,360 15,821 20,371 2,168
(GWh)
Mekong delta and
17,879 13,981 3,898 - 17,879 13,981 3,898 -
South East region
South Central
8,410 - 8,410 - 18,725 1,840 14,717 2,168
region
Remain regions - - - 1,756 - 1,756 -
LCOE (USD/MWh)

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Mekong delta and
85.70 92.70 85.70 92.70 92.70
South East region
South Central
92.20 92.70 92.20 92.70 92.70
region
remain regions 102.5 115 102.5 115 115
Electricity tariff
(temporary value
as LCOE),
(USD/MWh)
Mekong delta and
85.70 92.70 85.70 92.70 92.70
South East region
South Central
92.20 92.70 92.20 92.70 92.70
region
remain regions 102.5 115 102.5 115 115
Total revenue from
selling electricity 2,339 3,496
(Mill. USD)
Mekong delta and
1,560 1,198 361 - 1,560 1,198 361 -
South East region
South Central
780 - 780 - 1,735 170 1,364 200.98
region
remain regions - - - - 202 - 202 -
Total revenue form
selling electricity 54,969 82,164
(Bill. VND (*)

Note: (*) The exchange average rate is assumed for period of 2021-2030: 23,500 VND = 1 USD

Source: Nguyen Duc Cuong, 2021

The differences between 2 scenarios according to view points of sustainable


development (17 indicators in Agenda 2030) and commitments of Viet Nam in updated
NDC are mainly four following factors:

 Share of offshore wind power (%);


 Accessibility to electricity;
 GHG emission reductions, and
 Contribution to economic development.

In the baseline scenario, the percentage target of electricity production from grid
connected offshore wind power sources increase from 0.19% in 2019 up to 5.50% in
2030. GHG emission reduction potential is 27.58 million ton of CO2eq in 2030.

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In the blue scenario, the share of electricity production from grid connected offshore
wind power sources is higher than that in the baseline scenario because relatively large
amount of offshore wind power is developed, account for 8.03% in 2030. GHG
emission reduction potential is 40.24 million ton of CO2eq in 2030. Therefore, finance
support is significantly increased in comparison with the base scenario due to cost of
foundation construction, and cable increased.

Due to the size of the offshore wind power market in the two proposed scenarios, the
difference is 1.43 times. With this feature, the blue scenario will be more attractive
than the base scenario to call for and attract investment in the production and
manufacture of equipment in domestic supply chains for offshore wind power
projects. The supply chain and the degree of local contends of equipment could will
be: i) fabrication and supply of wind towers; ii) Fabrication, construction and
installation of foundations; Produces and supplies various electrical cables, etc.

The difference between the scenarios is also reflected in the level of job creation for
Viet Namese workers in stages from pre-construction, construction and operation &
maintenance. In the blue scenario, because the scale of installed capacity of offshore
wind turbines is greater than 1.43 times of the baseline scenario, the number of jobs
and total revenues are about 1.43 times and 1.49 times respectively.

The localization step by step will help formulate and develop a supply chain of
materials, equipment and manpower from the domestic offshore wind power supply
chain, step by step forming a new local industry. It will help to reduce levelized cost of
electricity (LCOE) which is mainly capital cost (CAPEX) and operation and maintain cost
(OPEX) of the offshore wind power plants. Moreover, the expansion of the market size
also helps to cut greenhouse gas emissions about more than 2.74 times compared with
baseline scenario.

The choice of the development scenario also depends on the LCOE which is reflected
in the weight average capital cost (loan and equity). If the cost of capital (e.g. Weight
Average Capital Cost - WACC) is reduced to 7%, then the high scenario can be
considered due to about half value of LCOE of offshore wind projects will be direct
cost, e.g. cost of wind turbines, foundation, electrical cable system within wind farms,
substations and transmission lines for grid-connection with national electricity
transmission network. The remaining half is the financial cost of the projects which
reflects high capital intensity of offshore wind projects. If financial conditions are
improved, the LCOE of offshore wind power will be significantly reduced and then the

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competition of offshore wind power compared to other fossil power sources is
improved.

Therefore, basics for consideration include the techno-economically exploitable


potential of offshore wind power sources, capability and financial support sources
available in the conditions of Viet Nam, and power demand in the period from now to
2030 in the situation that supply capacity of commercial domestic primary energy such
as coal, oil, gas, and big hydropower is limited and will be shorted. Meanwhile
potential of offshore wind power sources is relatively high, if their exploitation is well
organized, it will replace a portion of traditional energy resources being exhausted,
creating a green, clean energy resource contributing in national ensuring energy
security and sustainable development.
Table 3.10. Two offshore wind power development scenarios at nominal prices
Baseline scenario Blue scenario
Unit
2025 2030 2025 2030
Installed capacity MW 1,000 7,000 1,800 10,000
Power production MWh 3,000,000 26,289,000 6,000,000 38,360,000
Total revenue from VND thousand
6.63 54.97 12.85 82.16
selling electricity billion
GDP at nominal price VND thousand
5.97 51.43 11.56 73.94
(*) billion
GNI at nominal price VND thousand
5.37 46.29 10.41 66.55
(*) billion
Number of employees
in the wind power Thousand
20,000 140,000 36,000 200,000
sector (both direct and people
indirect) (***)
GNI per capita VND million 268 331 289 332
Note: (*): Calculated according to output production approach. GDP= GO-IC = Gross outputs –
intermediary costs. GO is equal to electricity outputs * selling price. Intermediary costs include sea
surface rent cost, land rental cost, equipment maintenance cost and replacement costs.
(**) Equal to 90% of GDP
(***) Referenced from different sources around the world, taking into account the specific
conditions of Viet Nam

From the above-mentioned bases, combined with scenario comparison, the blue
scenario been selected for development in the period to 2030.

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Table 3.11. GDP of offshore wind power sub-sector in Blue Scenario (selected
scenario) in national GDP in period of 2020-2030
Nominal GDP (VND thousand billion)
% GDP Offshore
Year wind power/GDP Viet
GDP (Offshore wind
GDP Viet Nam Nam
power)
2020 6,429,778 0.54 0.000008%
2021 6,847,713 2.29 0.000034%
2022 7,292,815 3.71 0.000051%
2023 7,766,848 5.46 0.000071%
2024 8,271,693 8.52 0.000103%
2025 8,809,353 11.56 0.000131%
2026 9,381,961 14.77 0.000157%
2027 9,991,788 18.23 0.000182%
2028 10,641,254 25.66 0.000241%
2029 11,332,936 41.53 0.000366%
2030 12,069,577 73.94 0.000613%

3.5. Coastal and marine tourism

The Viet Nam tourism development strategy to 2030 determines that tourism will
continue to grow strongly at a high and stable rate as in the past decade. This
development scenario presents three development options at a difference of about
10% for the major development indicators. However, because there is no major
difference, in the framework of this report, all 3 options are only considered as one
development scenario - called the base scenario.

This thematic report proposes another development scenario for coastal and marine
tourism, having considered other factors:

- Climate change impact

- Impact of Covid-19 pandemic

- Focus on sustainable development with emphasis of business efficiency through


quality improvement (which leads to increase of tourist expenditure), tourism product
diversification and lengthening tourist stays.

Viet Nam's tourism development goals up to 2030 are set on the basis of researching
the domestic and international tourism development context and trends; directions of
national state; current status of Viet Nam's tourism development; the socio-economic
development of the country; and other related factors. The main targets of Viet Nam's

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tourism to 2030 are calculated and presented in two scenarios: baseline scenario and
blue scenario. The growth scenarios are shown in indicators: tourism arrivals, total
revenue from tourists, contribution to GDP, accommodation.
Table 3.12. Projection of tourism arrivals of the whole country to 2030

Unit: million visitors


2025 2030
Scenario International Domestic International Domestic
arrivals tourists arrivals tourists
Baseline scenario 32 100 45 120
Blue scenario
35 120 50 160
(selected scenario)

Source: Viet Nam Tourism Development Strategy to 2030

(1) Baseline scenario is based on the context that the world economy continues to
face risks and challenges such as changes in trade policies of countries, global financial
health, increasing tensions and political conflicts in many regions; high unemployment
rate, idle investment activities, excessive supply; Natural disasters and epidemics are
complicated and unpredictable in many parts of the world, especially the effects of
climate change, extreme weather phenomena such as storms, cyclones, earthquakes,
floods, drought .causes great difficulties for the socio-economic development of the
world in general and tourism in particular. Meanwhile, Viet Nam still has not had
effective and timely activities and measures to effectively respond to climate change
and sea-level rise; tourism projects have not addressed climate change issues and
protected the environment. The consequences of climate change on tourism have not
been fully researched. These are the reasons for slowing economic growth and may
affect travel motivation. In this context, Vietnamese tourism will be affected and have
low growth in both the number of tourists, the length of stay and the tourism
spending, leading to a decrease in total revenue from tourists.

(2) The Blue scenario is calculated in the context of a relatively stable world economy;
tensions, political and ethnic conflicts in some areas are basically controlled; stable
commercial and financial policies of the countries; Global issues (climate change,
environmental pollution, natural disasters, epidemics, terrorism) are basically under
control. The investment in tourism continues to increase; infrastructure system,
tourist technical facilities, national tourist areas, provincial tourist areas, amusement
- entertainment - sports areas, tourism training institutions, promotion tourism
promotion are adequately developed; tourism products are diversified and quality
improved. On the other hand, factors such as natural disasters, epidemics, impacts of

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climate change and sea-level rise on tourism have been promptly responded to;
Tourism projects are adapted to climate change issues. The above context will have a
favourable impact on tourism development in Viet Nam, the growth rate of tourists,
the number of days of stay, the level of spending and total revenue from tourists will
continue to be maintained at a stable level.

However, the rapid development and increasing impacts of climate change will
exacerbate the impacts on environmental resources, requiring much more
commitment as well as efforts to adapt and mitigate.

3.5.1 Baseline Scenario

In the National Tourism Development Strategy (approved in January 2020 by Prime


Minister) the Blue growth scenario was selected, at that moment, before the Covid-19
pandemic, it was a feasible scenario for 2030. According to this scenario, specific
targets are calculated and forecasted as follows:

-About tourists: To attract 35 million international visitors, serve 120 million domestic
tourists; the average growth of international visitors is 12-14%/year and domestic
tourists is 6-7%/year by 2025. By 2030, to attract 50 million international visitors,
serving 160 million domestic tourists; The average growth of international visitors is
8-10%/year and domestic tourists 5-6%/year.

- Total tourism revenue: By 2025, it will reach about 1,700 - 1,800 thousand billion
VND (equivalent to about 77-80 billion USD). By 2030, it will reach about 3,100 - 3,200
trillion VND (equivalent to about 130 - 135 billion USD).

- Tourism contribution to GDP: By 2025, tourism will contribute about 13.9% of the
total GDP of the country, the average growth is about 13.4%/year. By 2030, the
corresponding figures are 18.2% and 11%/year.

- Accommodation: By 2025, there will be about 1,150,000 hotel rooms, the average
occupancy rate will reach 62%/year. By 2030, the number of hotel rooms will reach
1,600,000, the average occupancy rate will reach 65%/year.

- Tourism employment: By 2025, total labour is forecasted to increase to 5.5-5.6


million, of which about 2 million are direct employees. By 2030, creating about 8.5
million employees, including about 3 million direct employees.

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47

Hon Kho, Binh Dinh Province (Image by: VN Express)

According to the national development scenario as determined in the Viet Nam


Tourism Development Strategy approved by the Prime Minister, the tourism
development scenarios of 28 coastal provinces will be:
Table 3.13. Major tourism development indicators - Baseline scenario
Unit 2025 2030
International arrivals Thousand arrivals 69,000 99,000
Domestic tourists Thousand visitors 206,000 274,000
Tourism revenue Trillion VDN 1,144 2,086
Hotel rooms Thousand rooms 725 1,008
Tourism employment Thousand persons 1,441 2,161

Specifically for the development of marine tourism, Resolution 36 defines: intensify


investment in tourism infrastructure; to encourage and create conditions for all
economic sectors to participate in developing ecotourism, scientific exploration,
community based tourism, and high-quality marine resorts in coastal areas; building,
developing and diversifying world-class marine tourism products, product chains and
brands on the basis of biodiversity conservation, promoting the value of natural,
cultural and historical heritages characteristics of regions and regions, connecting with
international tourist routes so that Viet Nam will become an attractive destination of
the world. Pilot study on tourism development to offshore islands and areas;
Strengthening the capacity of search and rescue; promote activities of scientific
exploration; Focusing on education, marine health; Supporting and creating conditions
for coastal people to change jobs from activities at risk of harm and negative impacts

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on the sea to protection and conservation creating sustainable livelihoods, stable new
jobs, and raising income for people.

The Viet Nam tourism development strategies over the time have always identified
marine tourism as a special advantage of Viet Nam. This is a correct orientation,
suitable for the natural conditions of Viet Nam on the basis of resources, geographical
location, climate as well as market needs.

Based on that basic orientation, along with the identified development priorities of
the country and provinces, marine tourism has made very strong development steps
and has always been the leading tourism product of the country. This judgment is
made on the basis of actual development as well as very convincing statistics of
tourism activities in coastal provinces in comparison with the whole country.

3.5.2 Blue Scenario

In the view of adaptive development to climate change, sustainable development,


especially in the context of the highly complicated situation of the Covid-19 pandemic,
this blue scenario is built on the higher resolution, at the provincial level (bottom up
approach). The development options are built from the provincial level on the basis of
the tourism development potentials of the province, in the light of green growth, and
focusing on quality development.

Since beginning of 2020, the COVID-19 pandemic has caused enormous impacts on
tourism in Viet Nam and the world. Tourism has gone back to development level of 30
years ago, as by UN-WTO .

In 2020, Viet Nam received only 3.8 million international tourists (only in the first three
months), the number of domestic tourists reduced by 50%, revenue loss is about 530
trillion VND.

In 2021, Viet Nam received about 3,500 international tourists, 40 million domestic
trips (among which 19 million tourists have used accommodation service). Total
tourism revenue reached 180 trillion VND (decreased 42.3% comparing to 2020).

In November 2021 Viet Nam started opening for international tourism and full open
since 15 March 2022.

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COVID-19 impacts are extremely serious to the entire system: accommodation, tour
operations, food and beverage, shopping… and especially impact to tourism labour,
both direct and indirect.

Figure 3.1. Decrease of hotel and food, beverage revenue in major tourism
destinations

At the beginning of 2022, experts, surveyed by UN-WTO (United Nations World


Tourism Organization) forecasted that the international tourist market will return to
2019 level by 2024. With Northeast Asia is the dominant market, it is estimated that
Viet Nam international tourism in 2022 would be at 30% of 2019 level. The domestic
market in 2022 would be at 80% of 2019 level.

According to the report on the Strategic Environment Assessment (SEA) attached to


Viet Nam Tourism Development Strategy to 2030, in Viet Nam, under the RCP4.5
scenario (most likely), in the middle of the century the number of hot days will tend to
rise in most parts of the country, from 25 to 35 days, with the biggest increase (up to
40 days) in the South Central region, including the coastal and marine tourist priority
area of Quang Binh - Quang Tri - Thua Thien - Hue - Da Nang - Quang Nam and Binh
Dinh - Phu Yen - Khanh Hoa - Ninh Thuan, at least (less than 20 days) in the Central
Highlands, including the areas of Lam Dong - Dak Lak and the Southern region: Ho Chi
Minh City - Ba Ria Vung Tau - Binh Thuan and Can Tho - Kien Giang - Ca Mau.

Droughts in some regions would be more severe due to the trend of decreasing rainfall
in the dry season, typically occurring in the South Central Coast (Quang Binh - Quang
Tri - Thua Thien-Hue - Da Nang - Quang Nam and Binh Dinh - Phu Yen - Khanh Hoa -
Ninh Thuan) during spring and summer, South Viet Nam (Ho Chi Minh City - Ba Ria

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Vung Tau - Binh Thuan, Can Tho - Ca Mau - Phu Quoc) and North (including Hanoi -
Quang Ninh - Hai Phong - Ninh Binh) in winter.

According to the sea level rise scenario, under the RCP4.5, the average sea level rise
for the entire coast of Viet Nam, including the tourism priority areas such as (i) Quang
Ninh - Hai Phong - Ninh Binh; (ii) Quang Binh - Quang Tri - Thua Thien - Hue - Da Nang
- Quang Nam); (iii) Binh Dinh - Phu Yen - Khanh Hoa - Ninh Thuan; (iv) Ho Chi Minh City
- Ba Ria Vung Tau - Binh Thuan; (v) Can Tho - Kien Giang - Ca Mau, by 2050, 22cm (14
cm ÷ 32 cm); by the year 2100 is 53 cm (32 ÷ 76cm), of which, the coastal area from
Mong Cai - Hon Du and Hon Dau - Pass Ngang has the lowest sea level rise of 55 cm
(33 ÷ 78cm); Ca Mau Cape - Kien Giang is 53 cm (32 ÷ 75cm), the Paracel and Spratly
archipelagos - 58 cm (36 ÷ 80 cm) and 57 cm (33 ÷ 83cm) (Source: SEA attached to Viet
Nam Tourism Development Strategy to 2030).

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Trung Luong Beach, Binh Dinh Province (Image by: VN Express)

The Viet Nam Tourism Development Strategy to 2030 (approved by the Prime Minister
in Decision 147/QD-TTg dated January 22, 2020) defines "developing coastal and
marine tourism" as one of the priority directions of the tourism industry in the period
up to 2030. However, according to the Viet Nam climate change scenario 2016, if sea-
level rises 100 cm and there is no adequate response, about 1.5% on the area in the
central coast from Thanh Hoa to Binh Thuan, 38.9% of the Mekong Delta area is at risk
of flooding. The islands of Van Don, Con Dao and Phu Quoc are at high risk of flooding
(Climate change scenario 2016, MONRE).

The forecasts, according to the 2030 sea-level rise scenario in the South Central Coast
region, especially in the tourism priority area of Quang Binh - Quang Tri - Thua Thien -
Hue - Da Nang - Quang Nam show that the coastal districts of Da Nang, Quang Nam
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and Binh Son and Son Tinh districts of Quang Ngai province have the highest rise from
18 to 18.24mm, which would greatly affect tourism of these provinces (Climate change
scenario 2016, MONRE).

In Hue, under the 100cm SLR scenario, all the coastal and lagoon tourist areas will be
affected. Under this scenario, effect on Tu Hien beach would be 87.12%, Vinh Thanh
beach 82.12%, and Thuan An beach 29.1% (Doan Manh Hung, VNU Hanoi).

Thus, it can be seen that by the end of the century, sea-level rise will have a great
direct impact on the coast of Viet Nam, but by 2030, the direct impacts are not that
significant.

In general, the main impacts of climate change and sea-level rise between now and
2030 will be:

- Increase in extreme weather events: hot, cold, rains, but the average temperature
and average rainfall will not change significantly.

- The sea level rise may not be that significant, but changes in currents, flows,
temperature regime, and hydrology may lead to beach erosion. Erosions can be severe
in some locations, however, with many unknown entry variables, it is not feasible to
accurately define the location and extent of the erosion. In addition, the erosion would
also be caused by the development of new infrastructures, the hydrological conditions
of the rivers, so the precise description is even more difficult.

Sustainability in tourism would be shown in: higher income (efficiency), less motored
travel (low emission), minimum impact on the natural environment and indigenous
culture.

Considering current development, combined with the development focusing on


quality improvement (targeting high spending markets), lengthening tourists stay,
another development scenario would be shown in the following table. This scenario is
proposed in early 2021 according to the developments of the Covid-19 pandemic as
well as the trends and forecasts of the UN-WTO at that time.
Table 3.14. Major tourism development indicators - Blue Scenario
Unit 2025 2030
International arrivals Thousand arrivals 40,500 47,000
Domestic tourists Thousand visitors 188,500 218,000
Tourism revenue Trillion VDN 1,523 2,525

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This scenario development is based on the main criteria as follow:

- International market: international arrivals in 2022 would be 30% the one of 2019,
the growth in 2023 would be 5%, growth during 2024-2025 would be 4% per annum
and during 2026-2030 would be 3% per annum (equal to world average).

- Domestic market: in 2022 domestic tourism would return to 80% of the level of 2019,
during 2022-2023 growth would be 6% per annum, during 2024-2025 would be 5%,
and during 2026-2030 growth rate would be 3% per annum.

- Average length of stay of international tourist in Viet Nam would be 8.5 days in 2025
and 9 days in 2030

- Average length of domestic tourist trip would be 3.4 days in 2025 and 3.5 days in
2030

- Average expenditure of international tourist in 2025 is 190USD per day and 250USD
per day in 2030

- Average expenditure of domestic tourist in 2025 is 100USD per day and 130USD per
day in 2030

Comparison of the two development scenarios is in the table below.


Table 3.15. Comparing two development scenarios at nominal and real price (2010)
Baseline Scenario Blue Scenario
Indicators Unit
2025 2030 2025 2030
At nominal price:
Int. arrivals to coastal
Thousands ppl 69,000 99,000 40,500 47,000
provinces
Domestic tourists of
Thousands ppl 206,000 274,000 188,500 218,000
coastal provinces
Tourism revenue of
Trillion VND 1,144 2,086 1,523 2,525
coastal provinces
Tourism GDP of coastal
Trillion VND 801 1,460 1,066 1,768
provinces
Tourism GNI of coastal
Trillion VND 757 1,373 1,007 1,661
provinces
Hotel rooms in coastal
Thousands rooms 725 1,008 542 649
provinces
Tourism employment in Thousands
1,441 2,161 1,186 1,669
coastal provinces people

66
GNI per equivalent
employee in coastal Million VND 282 368 502 692
provinces

At real price 2020:


Tourism GDP of coastal
Trillion VND 511 881 680 1,067
provinces
Tourism GNI of coastal
Trillion VND 477 824 636 997
provinces
GNI per equivalent
employee in coastal Million VND 178 221 317 416
provinces
Ratio of coastal tourism
% 9.1% 11.2% 12.1% 13.5%
GDP to national GDP

It is clearly seen that in the Blue scenario where the total number of tourists is lower
but with a higher spending and longer stay per visitor, efficiency of tourism business
would be much higher compared to the base scenario. It can be said that the earning
will be higher while emission is lower due to less travel. In order to achieve this,
tourism products should be further diversified, service quality should be improved and
likely slower type of tourism travel be encouraged (biking and hiking).

3.6. Maritime sector

For the current maritime sector, the industry development scenarios for the period up
to 2030 have been identified in the Master Plan for the development of the seaport
system to 2030, with a vision of 2050, organized by the Ministry of Transport and
developed by the Ministry of Transport. approved by the Prime Minister in September
2021. In this Master Plan, two official development scenarios have been proposed for
the development of Viet Nam's sea transport and seaports by 2030, with a vision of
2050. This can be considered the main foundation for us to research, consider and
propose a sustainable development scenario according to the blue sea economic
criteria.

Green growth and the blue ocean economy are becoming a global concern and is seen
as the engine for economic recovery and promotion and as a tool for sustainable
development at the global and national level. The focus of Viet Nam's maritime
economy is the efficient exploitation of seaports and shipping services. To plan, build
and organize the synchronous and effective exploitation of general seaports,
international transshipment ports and specialized ports associated with supporting
services; building and completing logistics infrastructure and traffic routes, connecting
seaports with domestic and international regions, regions and localities. Promote the

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development of a shipping fleet with a reasonable structure, apply modern
technology, improve service quality, meet the needs of the domestic transport market,
deeply participate in the transport supply chain, gradually increasing, occupying the
international market share.

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During the construction process, scenarios for the development of the maritime
industry to 2030 were based on and integrated all national strategies and policies on
green growth and sustainable development of the marine economy, specifically:
Strategy National strategy on green growth to 2020, Strategy for exploitation and
sustainable use of resources and marine environment protection to 2020, vision to
2030, as well as international commitments on environment and development.
develop. A number of laws and plans to implement green growth-related tasks have
been promulgated such as
National Green Growth Action
Plan for the period 2014 - 2020,
Law on the Sea of Viet Nam 2012,
Law on Natural Resources and
Environment of Sea and Islands
in 2015, and recently included
"National Marine Spatial
Planning" into the Law on
Planning 2017, etc. and
especially Resolution No. 36-
Import and export commodities at the Hai Phong
NQ/TW dated 22 October 2018 International Container Terminal (Image by: VNA)
of the 12th Party Central
Committee on the Strategy for sustainable development of Viet Nam's marine
economy to 2030, with a vision to 2045.

Therefore, it can be seen that in general, the development scenarios that are being
proposed for the maritime industry to 2030, with an orientation to 2050, do not
conflict with the goals or criteria for green marine economic development. Even, more
orientations and solutions in the planning are given towards the criteria of sustainable
and green marine economic development.

However, from an expert perspective, looking at the development situation of the


maritime industry compared with the criteria for building a blue economy, we realize

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that there are many problems that need to be overcome or adjusted to guide the
development of the marine economy.

1) Shipping and national fleet

- Maritime Transportation

In the transportation industry, ocean freight is proven to be one of the most efficient,
low-cost, safe, energy-saving, and has less negative impacts on the environment than
road transport and railway. This means that if the advantages of sea transport are not
promoted at the optimal level, the level of safety, environmental protection and
logistics efficiency will decrease because then it will have to use different modes of
transport. other, especially by road. Promoting sea transport is towards the
development of a safe, convenient, efficient and sustainable transportation system in
Viet Nam.

According to statistics from the Institute of Transport Strategy and Development,


Ministry of Transport, transportation activities in Viet Nam consume a large amount
of energy, accounting for 30% of the total national energy demand and accounting for
30% of total energy demand, 60% of total fuel consumption. Energy consumption in
transportation activities has increased by over 10% per year in recent years, of which
road transport consumes the largest energy, accounting for about 68% of the total fuel
of the industry. With the consumption of large quantities of fuel, transportation
activities have emitted large amounts of greenhouse gases. Currently, an average year
of transport emits about 50 million tons of CO2. In which, emissions from road traffic
are the largest, accounting for 86%, while both railways, waterways and airways have
14% (only for domestic transport).

Therefore, the transformation of transport mode from road to sea transport is a


sustainable development orientation. In theory, promote ocean shipping as an
alternative to road transport as much as possible. However, in reality, this problem
also depends on many factors such as transportation demand, transport routes,
transport distances, types of goods transported, transport capacity, etc. The volume
of sea transportation by 2030 according to the planning is calculated based on the
binding conditions that are feasible under 02 options

In Viet Nam, the promotion of sea transport to replace other modes of transport can
mainly only be done on the North-South inland transport corridor while international

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shipping is a specific and fundamental growth. naturally according to the import and
export needs of the economy, so it is difficult to intervene.

Currently, the maritime transport market share accounts for about 35% of the total
transport volume on the North-South corridor, but for the overall domestic market
share, sea transport only accounts for about 12.4% (about 128.2 million tons).
According to the new master plan approved by the Prime Minister, the volume of
inland shipping by 2030 will reach about 250-290 million tons, accounting for a market
share of about 11.2-13.0% of the total domestic shipping volume and accounting for
about 29% of inland transport volume on the North-South corridor. According to our
calculations, the volume of domestic shipping in 2030 can reach 350 million tons if
there are better development conditions than the plan's option (infrastructure
capacity, fleet, personnel) resources, etc. and appropriate mechanisms and policies).
However, in practice, this goal is difficult to achieve.

- National fleet of ships

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Developing the national fleet is an indispensable element in the sustainable
development of the maritime
industry in order to bring maximum
benefits to the maritime logistics
service supply chain. Although no
longer setting specific development
goals for 2030 as in previous periods,
orientation and encouragement for
the development of the national
shipping fleet still need to be
Image by: Vietnam Plus
promoted to increase the market
share of import and export cargo transportation. Also, limiting dependence on foreign
shipping lines to reduce logistics costs, increases foreign currency revenue, and at the
same time undertake 100% of domestic shipping goods (as per current regulations).

Increasing the market share of international transport also significantly increases the
contribution of shipping to the GDP and GNI of the maritime industry by 2030.

Viet Nam's shipping demand by 2030 is about 900 million-1,076 million tons of goods,
of which international transport accounts for about 72%-73% and the rest is domestic
transport. With annual revenue from international sea freight estimated at around 30
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billion USD, the current situation of over 90% of international shipping market share
is assumed by foreign shipping lines is a great loss to the domestic maritime industry.
In order to change this situation, the most basic problem is to develop a national fleet
of ships of the right type and structure to increase the market share of freight on
international routes, especially specialized ships such as containers, oil tankers, LPG
ships, etc. with large tonnage.

However, setting too high targets and too ambitious goals like before on the ability of
the national fleet to participate in the international shipping market is unrealistic and
lacks feasibility. Most recently, the maritime transport master plan for the period to
2020, with a vision to 2030, sets a goal that by 2030, the national fleet will account for
25% of Viet Nam's import and export freight transport market share (equivalent to
about 20 percent) equivalent to more than 200 million tons according to the 2013
forecast). This means that domestic shipowners have to increase the shipping capacity
of the national fleet by at least 2.5 times compared to the current one with the goal of
modernizing and increasing tonnage, especially must be able to directly participate in
competition and dominate the market on container shipping routes from Viet Nam to
the US and Europe, crude oil and LPG transportation activities, etc. Up to this point,
this goal can be confirmed to exceed the capacity of domestic shipping enterprises
many times.

In addition to the development goal of the number, size, and tonnage of the necessary
types of ships, the modernization and rejuvenation of the existing fleet must also be
thoroughly implemented to meet the increasing standards of environmental
protection, as well as international technical standards set for shipping, are increasing.
The global shipping industry has been applying new solutions to reduce emissions. This
will be the dominant trend in the shipping industry and the entire maritime supply
chain in the near future. The new regulations of the World Maritime Organization
(IMO) under the strategy to reduce the global greenhouse gas (GHG) by 50% from
shipping activities by 2050 compared to the estimated emissions in 2008 are one of
the major challenges for Viet Nam's fleet.

From 1 January 2020, according to IMO regulations, all ships must use marine fuel with
a maximum sulfur content of 0.5%, up from the current limit of 3.5%. to prohibit
shipping lines from transporting oil with a sulfur content of 3.5%. This regulation is
pushing Vietnamese shipping enterprises to face a very difficult situation when the
Vietnamese fleet is aging again, the average age is up to 14.7 years old, the
exploitation capacity is no longer high, and the operating cost is not high. large
depreciation charges. In case of using new fuel, shipowners, in addition to having to
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spend an additional 100 USD/ton, may have to spend a relatively large amount of
money to replace technical equipment such as cermet, piston, etc. to ensure safe
operation of the machine. In the case of not using alternative fuels, installing a sulfur
filter device, this equipment is very expensive, some companies offer prices ranging
from 2 to 10 million euros, the financial arrangement of Vietnamese transport
enterprises to buy this device is very low.

All the above analysis factors show that the setting of national fleet development goals
should be carefully considered to ensure feasibility. In our opinion, with a growth rate
of sea transport volume of about 7.4%/year in the period of 2020 - 2030, the goal by
2030 is to develop the national shipping fleet capable of taking on a maximum of about
10% of the market. The part of Viet Nam's import and export freight transport
(equivalent to about 65 - 75 million tons) and undertake 100% of the inland sea
transport volume (equivalent to 250 million - 280 million tons), which is considered
suitable. Of course, along with this goal, the government needs to issue more effective
encouragement and support policies so that businesses can afford to remove old and
unqualified ships, and at the same time purchase more types of ships. Specialized
ships, large tonnage.

2) The seaport system

The seaport economy is the mainstay of the maritime economy both now and in the
future. Effective development and exploitation of the seaport system, as well as
environmental protection for sustainable development, are the main goals that have
been set for Viet Nam's seaport system by 2030, with orientation to 2050 according to
the following principles: The script has been approved by the Government.

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Regarding the effective exploitation of the seaport system, the international gateway
seaports at the two ends of the country, Hai Phong and Ba Ria-Vung Tau, are
particularly focused on improving the international container transport operation
capacity with the capacity to receive large container ships and also become the main
logistics service centres of the country. In addition, the ability to connect the transport
infrastructure between
the seaport and the
inland rear by more
efficient modes of
transport such as
railways and inland
waterways is also clearly
defined in combination
with the system of
transport systems inland
port (ICD) to improve the
Container terminal at Cai Mep, Ba Ria – Vung Tau
efficiency of logistics
Province (Image by: Vinamarine)
services.

In terms of environmental protection, in the process of developing seaport


development plans according to the planning scenarios, all of them have been
evaluated for environmental protection, thereby showing that there is no conflict or
impact. negative impacts on other areas of the marine economy as well as the criteria
for blue sea economic development, especially affecting ecosystems, marine biological
reserves, fishing and aquaculture. In addition, the orientation of seaport development
in the trend of "green ports", has shown that Viet Nam is having policies to manage
and develop sustainable seaports.

However, in the development of the seaport system in Viet Nam, there are problems
that need attention to be overcome to ensure the sustainable development criteria
that have been set in relation to the construction and operation of seaports including
the following key issues:

- Regarding the effective exploitation of the seaport system: Firstly, the problem of
connecting transport infrastructure and logistics services between the seaport and the
rear inland needs to be thoroughly overcome the long-standing factors such as most

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transports bring goods in and out of the port by road, causing congestion at the port,
increasing costs, polluting the environment, etc. Railways, inland waterways and
inland ports connect seaports, and it is necessary to focus investment and put into
operation in accordance with the planning, to avoid an aggravating situation for
seaports when goods are high, especially for international gateway ports. Secondly, it
is necessary to consider an early decision on whether to continue or stop the
investment in the international transhipment port at Van Phong (Khanh Hoa) because
the project is still being planned but it is not known when it will be deployed, affecting
the environment and development of a number of local marine economic sectors.
According to the opinion of some international organizations and experts, this project
is no longer topical, the exploitation efficiency as well as the low financial efficiency.

- Regarding environmental protection: Pollution sources in seaport exploitation


activities include the construction of seaports, harbours, activities of ships, dredging,
maintenance and dredging activities (dredging of navigational channels, moorings and
transhipment areas, avoiding storms, oil spills or collisions). These activities affect air
quality, water environment, cause erosion/accumulation and increase waste. It is
necessary to have solutions to prevent and deal with these incidents in a timely and
effective manner when in the future seaport activities in Viet Nam will continue to
increase.

- Developing seaports according to the green port model: Determining the criteria for
green ports and organizing the pilot implementation of the green port model suitable
to Viet Nam's conditions; gradually deploy the green port model suitable to Viet Nam's
conditions on a national scale; promote the use of clean, low-carbon, environment-
friendly technologies in the seaport operation business to meet the requirements of
sustainable development, protect the environment and ecosystems, respond to with
climate change. Striving to apply mandatory green port criteria in Viet Nam from 2030.

3) Shipbuilding industry system

A new master plan for the shipbuilding industry is needed to reassess the capacity and
development possibilities of the current system of shipbuilding and ship repair
facilities, and to identify specific new development goals. and clearer. Currently, the
old plan is only until 2020, but according to the new regulations, there is no
independent plan for the shipbuilding industry for the period until 2030, but it needs
to be integrated into the general industrial system planning.

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The goal of sustainable development of the shipbuilding industry is inseparable from
supporting industries such as mechanical engineering and metallurgy as well as the
domestic demand for building and repairing ships and national fleet to create solid
market. The issue of environmental protection also needs to be focused on
shipbuilding and repairing facilities, especially repair.

3.6.1 Baseline scenario

From the above analysis, we propose baseline scenario for shipping by 2030
corresponding to the low plan according to the approved master plan. For developing
the national fleet, the number of ships and the total tonnage in 2030 will both
decrease compared to the present due to the number of ships that have to be
marginalized (old ships, unsatisfactory technical standards, unsuitable types, etc).
Limited number of ships will be added. However, the productivity and efficiency of
ship operation have still improved, so although the market share of import and export
freight transport of the domestic fleet in 2030 will decrease by about 2%, the volume
of international transport realized is still high, 52.7 million tons, about 18 million tons
higher than today. Capacity through the seaport system will reach 1104 million tons in
2030, in which capacity through container will reach 38,0 million TEU.

3.6.2 Blue scenario

Sustainable development scenarios for the maritime industry up to 2030 are


synthesized from development scenarios of shipping, national fleet and seaport
system. The component scenarios are all similar, unified and closely related to each
other.

We propose blue scenario for shipping by 2030 corresponding to the high plan
according to the approved master plan. For developing the national fleet, although the
number and tonnage of the fleet in 2030 will decrease slightly compared to today due
to the large number of ships being scrapped and the number of additional ships, the
international transport market share will still remain at 10% due to the large number
of ships being rejected. Ships develop in the direction of modernity and increase the
efficiency of exploitation. Capacity through the seaport system will reach 1444 million
tons in 2030, in which capacity through container will reach 47,0 million TEU.

The demand for sea transportation is associated with the volume through the seaport,
which means that the system requires sufficient capacity to meet. Developing the
national fleet is also associated with shipping demand with the task of taking on 100%

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of domestic shipping demand and increasing the market share of international
shipping.

The following table summarises the scenarios for the maritime industry up to 2030.
Table 3.16. Summary of scenarios for the maritime industry up to 2030
Baseline
No. Targets Unit 2019 Blue Scenario
Scenario
I Maritime Transportation % 24.12 20.61 22.84
Maritime transport market
1 share compared to total % 24.12 20.61 22.84
transport volume
Volume of goods transported
2 Million tons 513 907 1076
by sea
- International transport Million tons 336 657 787
- Inland transport Million tons 177 250 289
3 National Sea Fleet Unit 1.049 800 1.000
- Quantity Unit 1.049 800 1.000
- Tonnage Million DWT 6.9 6.0 6.5
The market share of
imported and exported
- % 10.0 8.0 10.0
goods is handled by the
domestic fleet
Cargo volume handled by
Million tons 210.6 302.7 367.7
domestic fleet
- International transport Million tons 33.6 52.7 78.7
Inland transport Million tons 177 250 289
5 Seaport
Capacity through the seaport
Million tons 664 1.104 1.444
system
-
Only capacity through
Million TEU 19.6 38.0 47.0
container
Source: Maritime transport team

The summary table of maritime industry development scenarios is the basis for the
calculation and determination of added value (equivalent to the GDP and GNI) of the
industry in the period of 2020 – 3030.

The method of calculating the GDP and GNI of the maritime industry in the period of
2020-2030 is similar to the period of 2010-2019 (presented in the content of the
assessment of the economic situation of the industry).

As argued the calculation method in the status quo in 2019, due to the special nature
of the maritime industry's products (sea freight costs and port services) are not final

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goods but rather Intermediary costs have been deducted when calculating the added
value (VA, GO) of other sectors. So the calculation of the GDP and GNI of the maritime
industry in the period 2020 - 2030 is only an equivalent estimate for homogeneous
and easy to compare with the rest of the blue sea economic sectors. In fact, the
estimated result is the total value added of the maritime industry, not the contribution
to GDP like other sectors.
Table 3.17. Comparative comparison of GDP, maritime GNI in GDP, national GNI for
the period 2020-2030 according to the Baseline Scenario
The
Percentage
proportion of
Maritime GNI GDP GNI of maritime
maritime
Year GDP Maritime Country Nationwide industry in
industry in
GNI
GDP
Billion dong Billion dong Billion dong Billion dong % %
2020 47,441 20,514 6,429,778 6,183,225 0.74% 0.33%
2021 51,649 22,368 6,847,713 6,552,599 0.75% 0.34%
2022 56,229 24,390 7,292,815 7,000,257 0.77% 0.35%
2023 61,217 26,595 7,766,848 7,434,024 0.79% 0.36%
2024 66,646 28,999 8,271,693 7,878,811 0.81% 0.37%
2025 72,557 31,621 8,809,353 8,357,102 0.82% 0.38%
2026 78,992 34,479 9,381,961 8,989,389 0.84% 0.38%
2027 85,998 37,596 9,991,788 9.284,055 0.86% 0.40%
2028 93.626 40,994 10,641,254 9,981,231 0.88% 0.41%
2029 101,930 44,700 11,332,936 10,675,253 0.90% 0.42%
2030 110,970 48,741 12,069,577 11,606,763 0.92% 0.42%
Source: Maritime transport team

Table 3.18. Equivalence comparison of GDP, maritime GNI in GDP, national GNI in
the period 2020-2030 under the Blue Scenario
The
Percentage of
proportion
Maritime GNI GDP GNI maritime
of maritime
Year GDP Maritime Country Nationwide industry in GNI
industry in
(%)
GDP (%)
Billion dong Billion dong Billion dong Billion dong % %
2020 47,814 20,515 6,429,778 6,183,225 0.74% 0.33%
2021 52,465 22,372 6,847,713 6,552,599 0.77% 0.34%
2022 57,568 24,397 7,292,815 7,000,257 0.79% 0.35%
2023 63,167 26,604 7,766,848 7,434,024 0.81% 0.36%
2024 69,311 29,012 8,271,693 7,878,811 0.84% 0.37%
2025 76,052 31,637 8,809,353 8,357,102 0.86% 0.38%
2026 83,449 34,501 9,381,961 8,989,389 0.89% 0.38%

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2027 91,565 37,623 9,991,788 9,284,055 0.92% 0.41%
2028 100,471 41.027 10,641,254 9,981,231 0.94% 0.41%
2029 110,243 44,740 11,332,936 10,675,253 0.97% 0.42%
2030 120,966 48,789 12,069,577 11,606,763 1.00% 0.42%

Source: Maritime transport team

3.7. Environmental protection, biodiversity and marine ecosystem services

Practice shows that the environment, biodiversity and marine ecosystems (including
marine ecosystem services) have the following main types of interactions:

(i) The environment, biodiversity and marine ecosystems create benefits for economic
activities on land (oil refining, commerce, land transport connections, etc.). However,
economic activities on land contain great risks to the environment, biodiversity and
marine ecosystems due to waste from economic activities on land discharged into
rivers and sea due to socio-economic activities of coastal localities.

(ii) Interactions from economic activities at sea to the environment, biodiversity and
marine ecosystems in both forward and reverse directions. In the forward direction,
the environment, biodiversity and marine ecosystems are the premises for
maintaining marine economic activities. In the opposite direction, economic activities
at sea will have different negative impacts on the environment.

(iii) Climate change and sea-level rise have created pressure on the environment,
biodiversity and marine ecosystems.

Since the environment, biodiversity and marine ecosystems are one of the three pillars
of sustainable development, the realization of the goal of environmental protection,
biodiversity conservation and wise use of ecosystems for economic, social, security
and defence development brings dual benefits and contributes to the successful
implementation of 17 SDGs by 2030. On that basis, to be able to achieve sustainable
development goals in the blue sea economy, environment, biodiversity and marine
ecosystem services in Viet Nam needs to promote the following mechanisms and
policies:

- Protecting the environment, biodiversity and marine ecosystems is the responsibility


of all levels of government and sectors to successfully implement the 2030 SDGs, and
implement the policy of rapid and sustainable development of the country;

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- Environmental protection, biodiversity and marine ecosystem services are closely
related to socio-economic and environmental activities on land. Therefore, it is
impossible to separate the goal of protecting the marine environment from the
objectives of protecting the environment on land;

- Protect the environment and biodiversity and wisely use marine ecosystems to make
the values of the environment, biodiversity and services of marine ecosystems the
driving force and input of the marine ecosystem and economic system, realizing the
goal of sustainable economic growth;

- Apply market-based tools in line with international commitments that Viet Nam has
signed to improve the system of institutions and policies on environmental protection,
biodiversity, protection and development. Develop marine ecosystem services in
order to adjust the behaviour of economic actors at sea to be friendly to the marine
environment, towards sustainable development.

- Focus on biodiversity conservation, restoration of ecosystems, especially coral reefs,


seagrass beds, mangroves and coastal protection forests ensuring the integrity and
natural relationship between terrestrial and marine ecosystems.

In the coming years, in order to preserve the marine environment and biodiversity in
line with the development of the blue sea economy, it is necessary to implement the
following solutions:

(1) Increasing the application of economic tools and market-based mechanisms


(MBA) in the management, exploitation and use of the environment, biodiversity
and marine ecosystems

- To quickly issue decrees and circulars guiding the implementation of regulations on


economic tools and resources for environmental protection in the Law on
Environmental Protection in 2020 passed by the National Assembly (including the issue
of environment, biodiversity and marine ecosystem services). Some of these notes are
as follows:

- Develop 01 pilot program on application and completion of regulations on "payment


for marine ecosystem services".

- Develop a separate set of criteria for business investment projects on the sea and
coast to meet the requirements of effective and sustainable use of natural capital
sources, environmental protection and marine biodiversity to do business. the basis

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for the implementation of preferential and supportive policies in the law on
environmental protection.

- Finalize regulations on compensation for environmental damage applied to marine


economic activities; Liability insurance for the damage caused by marine
environmental incidents, especially oil spills and discharges from the mainland,
causing damage to the marine environment and ecosystems.

- Develop technical guidelines on integrating natural capital specific to the sea and
islands into the development of master plans, plans, programs and projects at all levels
and sectors. Especially for the marine spatial planning being implemented by the
Ministry of Natural Resources and Environment.

(2) Developing sustainable marine economic models

- Ministries, branches and localities shall review, evaluate and select sustainable
marine economic models suitable to the objectives of both economic development
and improvement of the competitiveness of products and goods on the market. The
school contributes to environmental protection, biodiversity conservation and marine
ecosystems. In order to respond to climate change, the models that have been studied
and demonstrated need to be learned and deployed such as green economic models
and ecosystem-based models-EbA in islands and coastal areas.

- Promote the application of circular economy to improve resource use efficiency and
reduce pollutants from economic activities on land, especially wastewater and plastic
waste. Strengthening control and readiness to respond to marine environmental
incidents and disasters, oil spills of unknown origin.

- Exploiting the values of conservation areas and natural landscapes, combining


conservation with eco-tourism development; continuing to expand the mechanism of
payment for environmental services for marine and coastal wetlands to generate
income for investment in the protection, restoration and development of biodiversity
and natural landscapes.

- Develop a roadmap to reduce the number of small fishing boats, reorganize fishing
formations and increase fishing efficiency based on the separate issuance of policies
with small fisheries and large fisheries, as well as integrated fisheries management
based on synchronous problem solving - fisherman, fishery and fishing ground (three
fish) and ecosystem. Control, prevent and eliminate destructive forms of fishing;
implement community-based co-management of aquatic resources; apply ecological
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certificates; develop aquaculture models that combine biodiversity conservation and
develop marine ecosystem services.

- Increase the application of "natural solutions" to promote biodiversity conservation,


live in harmony with nature and contribute to global efforts in nature conservation,
biodiversity and sustainable development; investigate and assess the current situation
and take resolute measures to eliminate destructive fishing and fishing practices;
Researching and testing the mechanism of co-management of aquatic resources,
applying ecological certificates, accessing other market mechanisms in the
exploitation of aquatic resources; Develop and implement programs and projects to
protect and restore biological productivity and the ability to provide nutrients,
spawning places, and nurse aquatic resources of marine ecosystems in order to restore
aquatic resources. aquatic products near the coast.

- Investigate, make statistics on the area, assess the status, make data banks, maps of
natural coastal wetlands, seagrass beds, coral reefs and specific natural ecosystems is
different

(3) Organization of management apparatus and resources for marine environment


protection

- To perfect the organizational apparatus system, a close coordination mechanism


between ministries, branches and localities to form an organizational apparatus strong
enough to coordinate overall activities at sea.

- Assign the Ministry of Natural Resources and Environment to closely coordinate with
relevant ministries and branches to invest in building facilities and equipment for
automatic monitoring and warning on environmental quality, responding to
environmental incidents, marine environment, and marine plastic waste management
to prevent and minimize risk factors that may affect the development of marine
organisms.

- Strengthening human resources and equipment for environmental protection for


provincial, district and commune governments at all levels; strengthening
coordination between local authorities and regional environmental management
agencies to increase enforcement of law enforcement.

- Investment from the state budget, priority is given to development assistance (ODA)
loans to implement programs, research and projects at home and abroad, especially

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projects under the National Target Program on the treatment of natural disasters.
pollution and improving the marine environment.

- The State implements investment programs, mobilizes ODA capital and resources
from all economic sectors, domestic and foreign organizations to invest in the
restoration of natural ecosystems, in combination with improving the resilient
capacity of ecosystems to the impacts of climate change; advocate to establish
payment for ecosystem services (PES) in the direction of promoting the restoration,
regeneration and protection of marine natural ecosystems.

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4. Comparative assessment

4.1. Supporting SDG delivery

The blue economy forms an important part of the socio-economic development of Viet
Nam. This chapter explores the way in which each marine economic sector interacts
with the 17 SDG Goals; this interaction can be positive in that the sector helps in the
achievement of the SDG, or negative in that it constraints or limits delivery of a SDG.
Part of the challenge of managing the ocean is about promoting the gains for multiple
SDGs from the marine sectors, while at the same time limiting or mitigating the
negative interactions with SDGs. Identifying gains across multiple SDGs and then
setting policy and regulatory interventions to capture these gains, will help fill the
remining potential in the blue economy as per Resolution 36.

Various approaches have been developed to look at gains across multiple SDGs. In this
study, in order to assess the impact of developing marine economic sectors with the
Sustainable Development Goals (SDGs), the method of the Stockholm Environment
Institute was applied (Stockholm Environment Institute52) for understanding this
interaction. The interaction between the economic sector and each SDG is estimate
based on a 7 point scale, from +3 to -3 (Table 4.1).
Table 4.1. The scale shows the relationship between the development of marine
economic sectors and the Sustainable Development Goals
Score Description
+3 Progress in the sector delivers significant progress on the SDG
+2 Progress in the sector delivers progress in the SDG
+1 Progress in the sector delivers minor progress in the SDG
0 Progress in the sector is independent of the SDG
-1 Progress in the sector delivers minor negative effects on the SDG
-2 Progress in the sector delivers some negative effects on the SDG
-3 Progress in the sector delivers significant negative effects on the SDG

Using this approach, Table 4.2. shows that, at present, the marine economic sectors
have had different impacts on the SDGs, but most of them are positive, either direct
or indirect. Labour-intensive industries such as seafood and tourism have a positive
impact on the goals of poverty reduction, improved nutrition and gender equality.

52
Nilsson, M., Chisholm, E., Griggs, D. et al. Mapping interactions between the sustainable
development goals: lessons learned and ways forward. Sustain Sci 13, 1489–1503 (2018).
https://doi.org/10.1007/s11625-018-0604-z

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Table 4.2. Evaluate the correlation between the marine sectors and SDGs
Sector Environment,
Oil &
RE Energy Fisheries Marine Tourism Marine Transport Biodiversity &
Gas
SDG Ecosystem
1. No poverty (+1) Attending to (+2) Oil & gas sector (+3) Nearshore capture (+2) Tourism is a labor- (+1) Shipping activities, seaports and (+2) Biodiversity
reduce poverty contributes remarkable fisheries (accounting for intensive industry, so it shipbuilding industry have certain conservation,
that bases on portion of state budget, 49.11% of total vessels in plays an important role contributions to job creation and income for environmental
providing new thus helps the 2019 in Viet Nam) and in hunger eradication coastal areas and islands. For example, many protection and the
jobs during government to have small-scale aquaculture and poverty alleviation coastal localities have had jobs by participating expansion of ecosystem
constructions, resources to end farming (60%) create in many coastal areas of in seaport operations, operating in the services enhance
installations and poverty in the remote sustainable livelihoods and Viet Nam. shipbuilding industry and working in shipyards, potential for economic
operations. and difficult areas. incomes for poor working as crew members on ships, since then. activities (marine
communities in coastal and have income, improve the quality of life, tourism, fisheries,
island areas. eliminate hunger and reduce poverty. renewable energy, etc.),
increase the number of
job opportunities that
bring higher income for
coastal residents.
2. Zero hunger 0 (+1) LPG produced from (+3) Nearshore capture (+2) Tourism is a (+1) Maritime contributes a part to the state (+2) Biodiversity
natural gas offshore fisheries and small-scale labour-intensive budget, thus helping the Government with conservation helps
Viet Nam may bring aquaculture farming help to industry, so it plays an resources to eliminate hunger and reduce increase the fisheries
heat to remote reduce poverty rate and important role in poverty in remote and disadvantaged areas. resources that yield
communities and help ensure food security for hunger eradication and high value of food
with food preparation poor communities in poverty alleviation in supply.
and cooking; ure coastal and island areas. many coastal areas of
produced helps to get Viet Nam.
better agricultural
outcrops. All help to
end with hunger.
3. Good Health (+1) It may also 0 (+3) Providing seafood that (+2) Marine tourism (+1) Shipping activities will help increase local (+3) Marine ecosystems
and Well-being indirectly support improves nutritional levels improves the revenue, thereby indirectly contributing to the (mangroves, coral reefs
the achievement and contributes to social livelihoods of local improvement of health and a good life in the and sea grasses) can be
and ensuring welfare access for poor communities, enabling regions. Emissions from shipping are valuable raw materials
good health and communities in coastal and them to take better significant, but only one of many sources for the production of
air quality. island areas. care of their health. released into the atmosphere and released medicine. Clean water
into the sea. However, transportation has a helps to protect

84
limited impact on substance abuse and traffic everyone's health when
accidents globally. swimming.
(+1) Contributing 0 (+2) Sustainable capture (+2) Sea tourism (+1) Shipping activities will help increase local (+2) Biodiversity
opportunities to fisheries and aquaculture promotes local youth to revenue, which will indirectly contribute to provides broad and rich
4. Quality access to development helps local participate in learning quality education. knowledge through
Education education and communities in coastal and and improve career marine flora and fauna
knowledge for island areas have more knowledge. surveys that support
local residents. opportunities to access to biological students,
education and technical researchers, and more.
training.
0 0 (+2) Many opportunities (+2) As one of the (-1) Shipping is one of the industries with a (+1) Women are a large
5. Gender are created for women to sectors with the highest much higher proportion of male employees force in all activities
Equality participate in fish share of women than female employees. The development of related to biodiversity
processing, marketing and employed and maritime transport without proper attention conservation.
aquaculture industry. entrepreneurs, tourism to gender equality will lead to deeper gender
can be an efficient tool stereotypes.
for development of
women, raising their
roles and significance in
families and
communities.
6. Clean Water (+1) Contributing (0) If not managed well, (-1) Aquaculture (+2) Tourist 0 (+3) Protecting the
and Sanitation to access to clean oil and gas can cause development uses water development also marine environment
water that bases water pollution (-) resources and may create would probably and biodiversity will
on providing Oil & gas activities are negative impacts on improve water supply contribute to protection
adequate and mainly offshore and do environment such as and drainage and supply of clean
stable supply of not have impact on organic pollution from feed infrastructure, increase water. Notably,
energy. onshore water. In some residues, mud wastes, and sanitation standards, desalination is an
cases oil & gas salinity intrusion. and help improve the important process to
exploration even could living conditions of local ensure enough clean
help to find some water people. water in some
sources (eg. Tien Hai). countries.
(+)
7. Affordable (+3) Offshore (+3) Development in 0 (+1) Local people can (+2) Shipping also contributes to the (+1) Maintaining a safe
and Clean wind power is an the oil & gas industry learn from innovative development of clean energy in the world such marine environment
Energy energy source and its energy affordable and clean as renewable energy solutions - biofuels, will indirectly support
that meets transition lead directly energy solutions in hydrogen, solar and wind power, improved wind power

85
affordable and to clean energy ecotourism energy efficiency and continued development and
clean energy production affordable establishments. implementation. emission reduction solutions offshore oil and gas
requirements. to all. to achieve zero emissions. production.

8. Decent Work (+2) Promoting (+2) The Oil and Gas (+2) Contribute to (+3) Tourism has (+3) Maritime accounts for over 90% of Viet (+2) Protection of the
and Economic economic growth industry creates many economic growth and creat contributed 9.2% of Nam's import and export goods (over 60% of environment and
Growth and create more direct jobs in large more jobs for local national GDP and value), so it plays a vital role in Viet Nam's marine biodiversity
jobs for youth. energy industrial communities in coastal and coastal and marine economic growth thanks to the development contributes to the
regions like Southeast island areas. tourism is accounted of valuable and value-added service industries. sustainability of marine
Viet Nam, Ca Mau, 2/3 of entire tourism high. It is necessary to apply modern, economic sectors such
Quang Ngai, Thanh sector, is very direct competitive technology, etc. Furthermore, jobs as tourism and fisheries.
Hoa.... Besides, it tool for decent work in ports, on ships and other maritime-related
creates many indirect and economic growth. jobs offer many opportunities for young
jobs related with people of all skill levels.
services, trading and
products distribution.
9. Industry, (+2) Fostering (+2) Oil & gas sector (+2) Contribute to improve (+3) Improve (+3) Building modern seaport infrastructure 0
Innovation and innovation develops infrastructure infrastructures for coastal infrastructures for and fleets contributes to creating a
Infrastructure and infrastructure and leads the and island areas such as coastal regions and synchronous transport system, thereby
development in development for some fishing port, storm shelter, islands such as reducing national logistics costs, increasing
some coastal industrial regions, like roads, sluice, electricity, passenger ports, trade capacity and competitiveness of foreign
localities. Ba Ria-Vung Tau, telecommunication, etc. airports, roads and trade goods, promoting develop sea tourism.
Southeast, Southwest, bridges, drainage,
South- and North power supply,
Central Viet Nam. By telecommunication,
this, it promotes etc. where there are
inclusive, sustainable tourism development
development and potentials.
fosters innovation in
these areas.
10. Reduced (+1) Providing (+1) Providing clean and (+1) Nearshore capture (+2) Marine tourism (+1) Maritime has a limited direct impact on (+1) Increasing job
Inequality clean electricity afordable electricity fisheries and small-scale contributes to inequality between countries. Coastal States opportunities for
indirectly reduces indirectly reduces aquaculture maintain daily narrowing the gap and are responsible for organizing search and coastal residents
inequality. inequality. livelihoods for vulnerable promoting rescue operations. through protecting
local people, leading to development in environment can help
reduce inequality within remote, isolated and reduce inequality in
local community. society.

86
underdeveloped areas,
reducing inequality.
11. Sustainable (+1) Contribute to (+1) Oil & gas industry (+1) Contribute to (+3) Good contribution (+2) Maritime has a limited direct impact on (+2) Cities in 28 coastal
Cities and sustainable urban contribute to sustainable urban and rural to sustainable urban inequality between countries. Coastal States provinces of Viet Nam
Communities development and sustainable urban development with more development and are responsible for organizing search and have many
communities in development and access to good foods and coastal communities. rescue operations. opportunities for urban
many coastal communities (Vung infrastructure building in development if they
areas. Tau, Ho Chi Minh, Nhon coastal areas. maintain the protection
Trach, Ca Mau, Quang of marine environment
Ngai, Thanh Hoa, Thai and biodiversity and
Bình...) utilize sources of
revenue from
ecosystem services.
12. Responsible (+2) High (+1) Oil & gas industry (+1) Organic shrimp and (+1) Well-mannered (+3) Maritime contributes to improving market (+3) High demands for
Consumption demands for today and its transition Marine Stewardship tourists with ever access and promoting the export of Viet Nam's responsible
and Production responsible to clean energy Council (MSC) certifications growing awareness on key export products in a sustainable way consumption and
consumption and (renewable energy) applied in aquaculture and sustainability would (reducing logistics costs); Contributing to production.
production. show responsibility in capture fisheries will encourage local people strengthening the distribution system and
energy production and contribute to responsible and suppliers in developing the national product supply chain.
consumption. seafood production and responsible
consumption. consumption and
production.
13. Climate (+3) Offshore (-1) Oil & gas industry (+3) Brackishwater (-2) Tourism (-2) World shipping annually emits about 940 (+3) The mangrove
Action wind already has Action plan aquaculture development contributes to and is million tons of CO2 and accounts for about ecosystem makes an
development is for mitigation of in coastal salinity intrusion affected by climate 2.5% of total global greenhouse gas (GHG) important contribution
center on urgent climate change (+), but areas (ex. shrimp farming) change. emissions. Switching ship-utilized energy from to climate change
action to combat as the main sources of is considered as one of fossil fuels to low-carbon alternatives, response and disaster
climate change GHG emissions this feasible climate change including renewables in the future, will prevention. One of the
that bases on action plan may not be adaptation solutions. contribute to reducing greenhouse gas most essential roles of
proving green enough .(-) emissions. marine ecosystem
power source, services is carbon
replacing fossil storage - an
fuels and indispensable solution
reducing green to mitigate climate
house gas change.
emissions.

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14. Life Below (-1) May affect (-1) Oil & gas sector (+3) Ending IUU fishing and (+3) Coastal and (-2) Maritime activities may pose some risks to (+3) Enhancement of
Water biological species uses the oceans, seas relevant subsidies for maritime tourism, the marine environment such as large number marine environmental
in the project and marine resources capture fisheries will tourism’s biggest of vehicles or oil and chemical spills, maritime protection and
areas. and the process is can protect aquatic resources segments, rely on accidents. The shipping industry contributes biodiversity
not be reversed. . and contribute to healthy marine 20% of marine pollution. Transport is the single conservation is the
sustainable fisheries ecosystems. So largest contributor to the transfer of alien realization of SDG14.
development. preserving and species. Emissions into the atmosphere
developing life below contribute to the acidification and
water is 100% in line eutrophication of the oceans. Maritime
with the future of operations have been minimized discharge of
coastal and marine ballast water, chemicals, waste, oil and
tourism. wastewater, reduced emissions into the
atmosphere during operations as well as
introduced anti-biological pollution regulations
to prevent the transfer of alien species,
minimizing disturbance to marine life, by
minimizing acoustic noise and by identifying
appropriate operational measures in the most
environmentally sensitive areas.
15. Life on Land 0 0 (+1) Shrimp-mangrove (+2) Majestic (-1) Maritime operations have released ballast (+3) Mangroves play a
integration creates organic landscapes, natural water. Exotic species introduced by ships can role in preventing
shrimp and contribute to reserves, rich affect terrestrial ecosystems. storms, natural
protect and restore coastal biodiversity, and disasters, protecting
mangroves. natural heritage sites forest ecosystems and
are often main inland resources.
objectives of tourists.
Sustainable tourism can
play a major role, not
only in conserving and
preserving
environment, nature
and society.
16. Peace and 0 0 0 (+2) Contributing to (+1) Maritime operations are the primary (+3) Protection of the
Justice Strong enhancing cultural transport of goods, which may include illegal marine environment
Institutions exchange and mutual goods. It works around the world to reduce and biodiversity
understanding. opportunities for corruption, bribery and illicit requires aid from all
flows by enhancing transparency about goods, people at all levels.

88
destinations, financial transactions and the use
of agents. agent and mediator.
17. (+1) Partnership (+1) The traditional (+2) Partnership with (+1) Strengthen (+3) Maritime is one of the important topics in (+2) Strengthen
Partnerships to with international close partnership in oil international and bilateral cooperation with bilateral and multilateral negotiations within cooperation between
achieve the and bilateral and gas sector entities to end IUU fishing stakeholders, the framework of international trade the parties to protect
Goal entities. promotes global and promote sustainable contributing to organizations. the marine ecological
partnership for aquaculture farming. sustainable Maritime contributes to improving the value environment.
sustainable development. and competitiveness of Viet Nam's foreign
development. trade goods.
Maritime and seaports are very suitable to
promote public-private partnerships, especially
in the field of investment, construction and
operation of seaports. Shipping can make an
important contribution to the partnership, and
there is a dedicated international organization
(IMO) to develop international policies and
regulations.

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A summary graph of the interaction of the 17 SDG Goals with the sectors demonstrates
a strong positive contribution of the marine economies to the delivery of all of the
SDGs. Notable contribution of marine sectors include industry, jobs, production and
poverty reduction. Empowering the marine economy in the correct way can have
multiple benefits across the spectrum of SDG Goals.

Figure 4.1. The additive interaction of marine sectors on delivery of the 17 SDGs
Note: All SDGs showed a net positive benefit of marine economies. Some negative
interactions between the SDG Goal and the marine economic sectors have been identified for
SDG6 (water) and SDG13 (climate); these are denoted by a .

Although there was an overall positive effect on SDG delivery, some negative
interactions between some economic sectors and SDG 6 (water, e.g. due to effect of
aquaculture development) and SDG 13 (climate, e.g. due to effect of oil and gas
production) were identified and this led to a low overall additive score. For enhancing
the power of the marine economy, these negative interaction are areas which need
further sector-based consideration and possible regulatory or technical support to
overcome

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4.2. Interaction between marine sectors

Theoretically, in areas of resource dispute, the development of one sector sometimes


conflicts with the development of other sectors. For example, in a sea area, the
extraction of oil can affect shipping or fishing; or the acquisition of an area for the
construction of wind or solar power projects may limit fishing and aquaculture or
coastal transportation. However, in the real case of Viet Nam, the development of
marine economic sectors has not shown significant conflicts. The oil and gas industry
operates mainly in the southern offshore waters of Viet Nam, the marine
transportation industry is mainly concentrated in the port cluster related to two
economic centres, the Northern Key Economic Zone, where two major cities in the
North Hanoi and Hai Phong are located, and the Southern Key Economic Zone, where
Ho Chi Minh City is the largest economic centre in the country. The seafood industry
and marine tourism develop strongly and are scattered along the coast in association
with available natural conditions. The newly developed renewable energy industry has
only used a small amount of space and is also mainly located on the southern coast of
Viet Nam, where other economic sectors are not too concentrated.

Thus, each area of Viet Nam's marine economy is not yet a factor hindering the
development of other marine economic sectors. Moreover, in many cases, the
development of a marine economic sector opens up more job opportunities for service
industries in the value chain of that industry, and at the same time opens up
opportunities for other marine economy industries. A fairly typical example is the wind
power industry has helped the marine tourism industry by providing more
opportunities to create new products: visiting a modern and novel "wind power field".
Similarily the seafood industry is benefitted by the tourism industry through supplying
fresh food to tourists.

The direction of the interaction between marine economic sectors in Viet Nam based
on expert judgement is shown in Table 4.3 and Figure 4.2.
Table 4.3. Interaction between sectors
RE Oil & Marine Marine Environment &
Fisheries
Energy Gas Tourism Transport Biodiversity
RE Energy NA +2 0 +1 +1 +2
Oil & Gas +1 NA 0 0 +1 +2
Fisheries +1 -1 NA -1 -1 +3
Marine Tourism +1 +1 +2 NA -1 +3
Marine Transport +2 +1 +1 +1 NA +2
Environment &
+1 -2 -1 -1 -2 NA
Biodiversity

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Note: The score for each cell is interpreted as the impact of the industry in the vertical
column on the industry in the horizontal row, and is a composite score that calculates
both positive and negative effects; (+3 positive; 0 neutral; -3 negative). Direction and
values of interaction is determined based on sector experts consensus.

Figure 4.2. The additive interaction between targeted marine economic sectors on
each sector
Note: Most interactions between sectors were positive and some were neutral. However,
many interactions with the environment showed a negative outcome

Interpretation of this analysis suggests that there are positive interactions between
some of the marine economic sectors and other sectors’ interactions are neutral.
However, the overall effect on the environment of the marine economies is generally
negative, with only renewable energy providing a small positive interaction.
The conclusion from the analysis suggests that there are potential catalytic
interactions which can be levered between some of the sectors, for example the
maritime industry supports the offshore renewable energy growth. Further analysis
should help identify these synergies in operational terms. In addition, the negative
interaction of most economic sectors on the environment needs to be considered
more closely. There may be the need for enhancing the regulation and protection of
the marine environment to ensure that economic growth does not comprise
ecosystem health; a fundamental principle of a blue economy.
This analysis of sector interlinkages has been undertaken at a national scale to indicate
possible pathways forward. However, for inter-sector synergies to emerge and marine
ecosystem protection to be strengthened a more detailed analysis is required. This

92
may well require the use of spatial mapping techniques and implementation of area
or zone based management tools. Marine Spatial Planning (MSP) may be an effective
way to consider these interactions in an explicit spatial and place-based way, and for
growth trajectories which ensure ecosystem health to be identified.

4.3. Scenarios for blue sustainable economic development

Under the impact of the development of marine economic sectors with the SDGs and
between marine economic sectors, using expert calculation method, experts have
produced blue scenarios of each sector. Usually, experts build 3 scenarios, as follows:

1. Baseline scenario: Developed from the assumption, that resource conditions and
policy mechanisms are based on present approaches and those plans and strategies
already formulated for 2030. The baseline scenario represents is the business-as-usual
scenario for the country based on already approved policies and plans. Economic
sectors still have the opportunity to develop in their available marine space, without
causing major conflicts with other marine economic sectors. The environmental
impact of marine economic sectors is still at an acceptable level, although there have
been no significant actions to improve the environment and enrich the marine
ecosystem. Economic growth is basically similar to the average rate of the past 10
years, except that the offshore wind power sector has emerged in the last few years
and has a strong explosive trend.

2. Blue scenario: The blue scenarios are based on the idea that additional practical and
feasible interventions by 2030 can shift social and economic outcomes in a positive
way compared to the baseline scenario. For example, the oil and gas industry increases
investment to promote exploration, increasing potential oil and gas resources that can
be ready for exploitation. The seafood industry has adjusted the structure of fishing
boats (increasing the number of large ships, reducing the number of small boats fishing
inshore) and increasing the area of intensive aquaculture. As a result, the total catch
did not increase or even decrease, but the value obtained increased. The farmed
output will increase in both volume and value. Particularly, the offshore wind power
sector has a faster growth rate. Under this scenario, mechanisms and policies are
adjusted to be more suitable for the requirements of increasing quality and ensuring
environmental sustainability and maintaining marine resources. Real actions have
been taken to improve the environment and enrich the marine ecosystem such as
promulgating marine conservation policies and identifying clearly define marine
protected areas. Marine economic sectors still basically develop in their available
marine space, do not cause major conflicts with other marine economic sectors. In

93
addition, the blue scenarios also form a platform for the early progression towards the
new climate targets, such as 2050 carbon net zero.

Baseline and blue scenarios were developed for each of the marine economic sectors
and then combined together to provide an overall view. The comparison between the
Baseline Scenario and the Blue Scenario (Table 4.4) shows that the economic
indicators of the sustainable growth scenario are better than the base scenario
including the GDP, GNI and GNI per capita. This suggests that there are gains to be
made through enhanced sector-based enhancements, as outlined in the sustainable
growth scenario. In addition, the general lack of negative interaction between most
marine sectors means there is potential for further expansion. However, this will need
more careful planning to ensure that marine economy expansion does not increase
negative interactions between sectors, and that marine economy expansion does not
undermine the quality of the environment and health of the coastal and marine
ecosystems.

The use of area-based management tools, such as Marine Spatial Planning should be
considered at a national scale, to complement this scenario-based analysis. In
addition, if there are specific provinces or areas in which potential inter-sector
negative interaction and threats to the environment may occur then more detailed
planning should be done at this scale. In some cases, there may be no “win-win”
options but careful planning should at least be able to manage the trade-offs and
mitigate some of the consequences.
Table 4.4. Summary of development scenarios for major marine economic sectors
2025 2030
Baseline Baseline
Blue Scenario Blue Scenario
Scenario Scenario

Combined marine economic sectors

GDP (billion VND) 1,112,822 1,408,486 1,583,504 2,121,840

GNI (billion VND Đ) 852,483 1,111,536 1,229,690 1,682,510

Labor (persons) 4,556,301 4,008,244 5,972,717 5,083,846

GNI per labour (million VND) 147 230 163 290

GDP difference between Blue and


295,664 538,336
Baseline Scenarios (billion VND)
GNI difference between Blue and
259,053 452,820
Baseline Scenarios (billion VND)

94
GNI per labor difference between
Blue and Baseline Scenarios (million 83 126
VND)
GDP growth rate compared to the
26.6% 34.0%
baseline scenario (%)
Growth rate of GNI compared to the
30.4% 36.8%
baseline scenario (%)
Growth rate of GNI per labor
56.5% 77.5%
compared to the baseline scenario (%)
Sector-specific scenarios
1. Fisheries & Aquaculture
GDP (billion VND) 190,296 268,871 122,102 337,933
GNI (billion VND) 186,490 263,493 119,660 331,174
Labour (persons) 2,823,169 2,514,112 3,356,871 2,900,000
GNI per labour (million VND) 66 105 36 114
2. Oil & Gas
GDP (billion VND) 333,000 372,000 418,000 522,000
GNI (billion VND) 152,000 170,000 191,000 239,000
Lao động (persons) 51,232 51,232 53,846 53,846
GNI per labour (million VND) 2,970 3,318 3,548 4,430
3. Marine renewable energy
GDP (billion VND) 5,969 11,563 51,432 73,941
GNI (billion VND) 5,372 10,406 46,289 66,547
Labor (persons) 20,000 36,000 140,000 200,000
GNI per labor (million VND) 269 289 331 333
4. Coastal and marine tourism
GDP (billion VND) 511,000 680,000 881,000 1,067,000
GNI (billion VND) 477,000 636,000 824,000 997,000
Labour (persons) 1,441,000 1,186,000 2,161,000 1,669,000
GNI per labour* (million VND) 178 317 221 416
5. Maritime
GDP (billion VND) 72,557 76,052 110,970 120,966
GNI (billion VND) 31,621 31,637 48,741 48,789
Labour (persons) 220,900 220,900 261,000 261,000
GNI per labour (million VND) 143.1 143.2 186.7 186.9

* GNI per employee in coastal and marine tourism is calculated as GNI per equivalent employee
(Hoang Dao Bao Cam. 2021)

Source: Calculations of the Blue Economy expert group

The blue scenario outlined above aligns with the Resolution of the Eighth Plenum of
the 12th Central Executive Committee on the Strategy for Sustainable Development of
Viet Nam's Marine Economy to 2030, with a Vision to 2045 (Resolution No. 36-NQ/TW;
October 2018). According to this Resolution, the goal by 2030 is for “Viet Nam to
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become a strong maritime nation; basically, meet the criteria on sustainable
development of the marine economy; forming marine ecological culture; proactively
adapt to climate change and sea-level rise; prevent the trend of pollution, degradation
of the marine environment, coastal erosion and sea erosion; restore and conserve
important marine ecosystems. New, advanced and modern scientific achievements
have become direct factors promoting the sustainable development of the marine
economy”.

By 2045, “Viet Nam will become a strong maritime nation with sustainable
development, prosperity, security and safety; The marine economy makes an
important contribution to the country's economy, actively and responsibly
participating in solving international and regional issues related to seas and oceans.
For each marine economic sector, the Resolution states: “By 2030, successfully and
breakthrough develop marine economic sectors in order of priority: (1) Tourism and
marine services; (2) Maritime economy; (3) Exploiting oil and gas and other marine
mineral resources; (4) Aquaculture and fishing; (5) Coastal industry; (6) Renewable
energy and new marine economic sectors”.

4.4. Ensuring a sustainable environment

Marine economy expansion is identified as a threat to environmental quality and


health. Similar to the marine sectors above, scenarios for future ecosystem quality
were made in order to demonstrate that proactive interventions have the possibility
of reducing the environmental impact of marine economy expansion, or even
increasing environmental quality. In ocean accounting terms, this means that raising
GDP and GNI of the marine sectors does not undermine the natural capital of the
ecosystems. Scenarios were developed for the environment as follows:
Table 4.5. Scenarios developed for the environment
Baseline scenario Conservation scenario Blue scenario
Motivating factors
The need to use
Unchanged High High
resources
Energy demand Unchanged High High
- The energy structure
- The energy structure
changes
changes
Current energy - Recycled energy
Energy supply - Recycled energy
structure - Renewable and
- Modern technology
environment--friendly
changes
technology changes
More than 7% or green
GDP growth 6,8-7% About 7%
growth

96
CPI 4% 3,2% 4,3%
Environmental-friendly Environmental-friendly
technology. technology.
Science and
Medium Modern and efficient Modern and efficient
technology
environmental treatment environmental treatment
technology technology
Mechanisms and legal
policies on Innovative, more complete
Unchanged Improved
biodiversity and more feasible
conservation
Proactive and adaptive
Conservation management of ecosystems;
Unchanged Tight control
management Effective management of
protected areas
Resource
Unchanged Conservation Conservation
Conservation
Green technology;
Approach to
Sustainable development Ecological efficiency;
sustainable Unchanged
approach Sustainable development
development
approach
Pressure
Environmental Environmental Remain of environmental
Reduction in pollution levels
pollution pollution pollution
- Current greenhouse
- Average greenhouse gas - Low greenhouse gas
gas emissions
emissions emissions
Climate Change - Increased saline
- Increased saline intrusion - Controlled saline intrusion
intrusion
- RCP4.5-RCP8.5 - Scenario RCP4.5
- Scenario RCP8.5

Baseline scenario: According to this scenario, economic activities, management,


exploitation and use of biodiversity, landscape and ecosystem services are still going
on the normal trend as before. All impact measures are unchanged and the economy
grows at a high rate (GDP of 6.8 - 7%, inflation rate of about 4%). Also under the
scenario, it will normally lead to the general trend of decreasing size, quality and value
of ecosystem services (about 3%/year).

Conservation scenario: This scenario assumes that Viet Nam will take many measures
to strengthen biodiversity and ecosystem conservation through expanding the area of
natural marine protected areas; all activities of exploiting and using ecosystems and
biodiversity will be limited. This scenario supports strong protectionism and exclusion
of human activities in high biodiversity areas. Economic development target may be
lower than the first scenario (GDP of 7%, CPI of about 3.2%). In this scenario, the value
of the ecosystem will increase but to a low level due to the limited provision functions
(assuming a minimum of 3%/year).

Blue scenario: According to this scenario, the economy still has a high growth rate
(GDP of 7%, CPI of 4.3%). Nonetheless, instead of strict conservation, the scenario is

97
cleverly used to find solutions to rational and sustainable use of the values/functions
of the ecosystem and marine biodiversity for economic development through the
greening of marine economic sectors. A handful of conservation measures, benefit-
sharing mechanisms and economic tools will be formed towards regulating the
behaviour of actors involved in marine operations; transforming technology, mode of
exploitation and use into a sustainable direction; creating resources for promoting
conservation (e.g. green credit, green bonds, payment for ecosystem services, etc).
Therefore, the assumption is that the area and values of ecosystems and biodiversity
are preserved and increased, but contribute to economic development better
(assumed at 5%/year).

The choice of scenarios can have a significant effect on ecosystems within the 2030
year timeline. For example, mangroves could increase in area and nearly double in
value, between the baseline scenario and the blue scenario (Fig. 4.3). Similar outcomes
of the blue scenario can be seen for corals reefs, seagrass and lagoon in which the blue
scenario leads to enhanced value, increased extent of habitat or both.

Figure 4.3. Impact trend of diferent development scenarios on mangrove value and
area in Viet Nam over the period of 2020-2030

Overall, for four identified habitat types (mangrove, coral reef, seagrass and lagoon),
the value and area of these habitats could increase by 2030. Ecosystem value can be

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expected to more than double between the development as usual and the blue
scenario.

Table 4.6. Area and ecosystem assets table of four types of marine ecosystem
(mangrove, coral reef, seagrass and lagoon) under three scenario options
ASSETS OF SOME KINDS OF SPECIAL ECOSYSTEM
Baseline scenario Conservation scenario Blue scenario
Value Value Value
Area (ha) (million Area (ha) (million Area (ha) (million
dollars) dollars) dollars)
Beginning value (2020) 322,451.05 3,543.61 322,451.05 3,543.61 322,451.05 3,543.61
- Increased during the
99,399.89 26.88 99,399.89 999.90 99,399.89 1,968.82
period
- Decreased during the
-10,754.95 -1,576.66 0.00 0.00 0.00
period
Ending value (2030) 411,095.99 1,993.83 76,965.00 4,543.51 421,850.94 5,512.43

Traversing from the baseline scenario to the blue scenario will require a number of
interventions to ensure that the ecosystems do not becomes degraded by marine
economic expansion and as outline in the blue scenario prerequisites. Priority within
the environmental sector may be given to a number of key areas which could include:
(i) propagate, educate and raise awareness about environmental protection,
biodiversity and marine ecosystems; (ii) collect data, information and implement
ocean accounting; (iii) improve the efficiency and effectiveness of the legal system on
natural resources and environment; biodiversity and ecosystem services; (iv) intensify
the application of economic instruments and market-based mechanisms; (v) integrate
internationally in environmental protection, biodiversity and marine ecosystems; and
(vi) develop science and technology, apply scientific achievements.

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5. Challenges and opportunities

5.1. Recognition of synergies and trade-offs in the ocean system

The ocean is like a living organism, a living space for living things, including humans.
Looking to the future, the exploitation of marine resources for human life will increase
and become more diversified due to the increasing production capacity and
advancement in science and technology. Therefore, the demand and capacity to
exploit marine resources are increasing in all fields/industries. However, increasing
exploitation increases the risk of trade-offs: an increase in exploitation of one
industry/sector will also limit the increase in exploitation of the other industries/fields.
In addition, as pointed out in this study, the expansion of economic exploitation has
the potential to negatively affect marine biodiversity if not managed effectively.
Therefore, this frames the search for a reasonable "balance" in development between
marine economic sectors as well as a "balance" between exploitation and
conservation of marine resources. Identification and management of these complex
trade-offs in the national socio-economic development of marine areas is of
paramount importance.

5.2. Key challenges for the blue economy

Developing a blue economy is the foundation for sustainable marine economic


development, but it is not without a number of challenges ahead. In the case of Viet
Nam, the main challenges are:

(1) Geopolitical challenges: The East Sea area, including Viet Nam's sea, is currently
one of the disputed waters among many related parties. This is one of the factors in
the region between countries that are not favourable for the economic development
of the whole region. Maintaining security and safety is one of the most important
prerequisites for economic activities on the seas. Therefore, in the coming time, the
promotion of activities to resolve disputes over sovereignty and sovereign rights in the
sea and islands among stakeholders in the East Sea should be considered one of the
priority activities.

(2) Limited financial capacity: Currently, Viet Nam is still a developing country with a
low GDP per capita (about US$2,785 per person in 202053). That shows a huge
limitation in financial capacity, both in the public financial sector and in the private
sector. In general, the transformation of industries and production facilities from
53
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=VN

100
"brown" to "green" is also the process of restructuring the production process and
technology. If this cycle of change does not coincide with the economic cycle, it will be
very expensive and will be very difficult for business establishments. Moreover, the
"green" production technology is basically a new technology, which is capital
intensive, so not within the reach of all businesses. In addition, the cost of
infrastructure construction in most marine economic sectors requires large capital
investment.

(3) Limited capacity in marine science and technology: As a late-developing country,


undergoing industrialization, Viet Nam is among the countries with low scientific and
technological capacity, including marine science and technology. The limitation of
marine scientific and technological capacity is reflected in a series of manifestations
such as the weak and lack of investigation and exploration of marine resources;
production capacity of traditional equipment for marine economic development such
as shipbuilding, port construction; marine scientific research institutions and the
number of R&D people in the fields related to marine economy, etc.

(4) Limited manpower: As a maritime country, the labour force working in industries
directly related to the sea is small in quantity and weak in quality. In addition to a
number of workers in the marine industry such as oil and gas, maritime are technically
trained due to the nature of the work; and a large part of workers in the fields of
fisheries, tourism and salt making are unskilled workers. Most of their professional
knowledge comes from self-experience and learning without formal training. This is
also a significant limitation that needs to be resolved in the development of the blue
sea economy in the near future.

(5) Managing blue economic development requires further institutional reform


efforts. Some of the contents that need to be implemented in the near future include:

- Develop a marine economic development planning on the basis of the blue economic
development way of thinking. Viet Nam has developed a number of master plans
related to the marine economy, including National marine spatial planning; Master
plan on exploitation and sustainable use of coastal resources; Master plan on
development for seaport system; Planning the system of fishing ports and storm
shelters for fishing vessels; Planning for the protection and exploitation of aquatic
resources. These plans will determine the basic and long-term orientations for the
exploitation of marine resources, the protection of the marine environment, and the
development of marine economic sectors in a sustainable way.

101
- Unification in the management of marine economic development. Although there
has been progress in building a management system for marine economic
development with the establishment of the General Department of Seas and Islands
under the Ministry of Natural Resources and Environment the marine economic fields,
in fact, are still scattered under management by different ministries. For example, the
maritime economy is under the management of the Ministry of Transport, the tourism
economy is under the Ministry of Culture, Sports and Tourism, and the seafood
economy is under the Ministry of Agriculture and Rural Development; the field of
energy economy is under the Ministry of Industry and Trade. Among ministries, there
is of course coordination in the management of marine economic development, but
in fact, it is inevitable that the management is not effectively or closely connected,
leading to limitations in management; consequently not enabling favourable
conditions for production and business activities. The coordination between the
management agencies at the central level as well as between the central and local
governments is currently considered a weak link in the economic management system
in Viet Nam in general, and the marine economy in particular, and is in urgent need of
reform.

- Strengthening the building of information systems on natural resources,


environment and the marine economic information. Due to the fragmented
management system as above, in Viet Nam at present, information on natural
resources, environment and marine economy is not available in a systematic and
highly reliable manner. This situation has caused many difficulties for policymaking at
the macro level as well as for survey and investment decisions at the micro-scale.
Moreover, in the statistical information system of Viet Nam, there is still a shortage of
many statistical indicators on the marine economy. Therefore, in the coming period, it
is necessary to develop an information system of natural resources, environment and
marine economic information to serve as a basis for planning guidelines and policies
for the development of the blue sea economy.

5.3. Key opportunities for the blue economy

(1) Trends of blue economic development in the world: The world considers the 21st
century to be the century of the ocean with a new approach, which emphasizes the
aspects of sustainable economic development and environmental protection in order
to promote socio-economic development as well as to better adapt to climate change
on a global scale. Pioneering countries in the world have launched programs to
develop the ‘green’ economy in general and the ‘blue’ economy in particular, with
emphasis on the following contents: green production, green industry - using green
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production techniques, using renewable energy, reducing environmental pollution;
green consumption – building a green lifestyle, protecting and living in harmony with
the natural environment. Every day, on the mass media, information about economic
development associated with environmental protection, limiting greenhouse gas
emissions, adapting to climate change, sea-level rise, has provided people with a
certain and basic understanding of the trend of blue economic development going on
in the world.

(2) Science and technology to develop the blue economy in the world is developing
very strongly: This is necessary to create a foundation for the implementation of blue
sea economic development and effective marine environmental protection. It can be
said that countries around the world are having a race in creating technology to
develop blue sea economy. For example, on October 17, 2021, after 21 months of
construction, China put the world's first zero-carbon container port into operation at
Tianjin Seaport, in the north of the country. Without using fossil energy, this smart
container port operates on energy from wind and photovoltaic power. This seaport
has an AI-based "smart brain", which can automatically come up with the best cargo
handling plans and control each device, resulting in 20% higher efficiency than
traditional container ports, designed capacity to reach 2.5 million TEU
containers/year54. The strong development of science and technology to develop the
blue ocean economy in the world also brings good opportunities for all coastal
countries through technology transfer and FDI channels.

(3) Orientation for the sustainable economic development of the State of Viet Nam.
Grasping the trend and opportunities for the development of the blue economy in the
world, on the basis of the need for sustainable development of the national marine
economy, Viet Nam has set out a Strategy for the sustainable development of Viet
Nam's marine economy to the end of the year 2030, with a vision to 2045 (Resolution
No. 36-NQ/TW dated October 22, 2018), which affirms: “Sustainably develop the
marine economy on the basis of green growth, conservation of biodiversity study,
marine ecosystems; ensure harmony between economic and natural ecosystems,
between conservation and development….creating a driving force for the country's
economic development”.

The Resolution also states the following goals by 2030:

54
(https://www.Vietnamplus.vn/cang-container-khong-carbon-dau-tien-tren-the-gioi-di-vao-hoat-
dong/747334.vnp).

103
- On the marine economy: The marine economic sectors contribute about 10% of the
country's GDP; The economy of 28 coastal provinces and cities is estimated at 65-70%
of the country's GDP. The marine economic sectors develop sustainably according to
international standards; control the exploitation of marine resources in the resilience
of marine ecosystems.

- On society: The Human Development Index (HDI) of coastal provinces and cities is
higher than the national average; the per capita income of coastal provinces and cities
is 1.2 times or higher than the average income of the whole country. The islands
inhabited by people have adequate basic socio-economic infrastructure, especially
electricity, freshwater, communication, health care and education.

- On science, technology, development of marine human resources: Improve access


and make the most of advanced scientific and technological achievements belonging
to the group of leading countries in ASEAN which have a number of fields of marine
science and technology reaching advanced and modern levels in the world. Training
and developing marine human resources, forming a team of highly qualified and
capable marine science and technology staff.

- Regarding the environment, responding to climate change, sea level rise: Assess the
potential and value of important marine resources. At least 50% of Viet Nam's sea area
is subject to a basic survey of marine resources and environment at a map scale of
1:500,000 and a large-scale survey in some key areas. Set up a digitized database of
seas and islands, ensuring integration, sharing and updating.

Prevent, control and significantly reduce pollution of the marine environment;


regional pioneer in reducing ocean plastic waste. In coastal provinces and cities, 100%
of hazardous waste and daily-life solid waste are collected and treated up to
environmental standards; 100% of economic zones, industrial parks and coastal urban
areas are planned and built in the direction of sustainability, ecology, intelligence,
adaptation to climate change, sea-level rise, and have concentrated water treatment
systems that meet meeting environmental regulations and standards.

Good management and protection of marine, coastal and island ecosystems; to


increase the area of marine and coastal conservation zones to at least 6% of the
natural area of the national sea; restore the coastal mangrove area to at least 2000
levels.

104
Capacity to forecast and warn of natural disasters, earthquakes, tsunamis, marine
environment monitoring and monitoring, climate change, sea-level rise, including
through the application of space technology and artificial intelligence create and reach
a level on par with advanced countries in the region. Take measures to prevent, avoid,
prevent and limit the impact of high tide, saltwater intrusion and coastal erosion.
In summary, the development of the blue economy is a new issue and its success
depends on many factors, both objective and subjective. Although there are many
challenges ahead, there are also clear opportunities for the development of the blue
economy in Viet Nam today. Indeed, it is apparent that development of the blue
economy is a vital component of the array of actions which will lead to achievement
of longer-term higher-levels goals, such as net-zero emissions by 2050. It is necessary
to make good use of these opportunities to sustainably develop the marine economy
and protect marine resources for the development of future generations. However,
the policy frame through Resolution 36 and more broadly the SDGs provide a clear
policy direction forward, and this study provides a synthesis of the blue economy to
help shape implementation.

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6. Recommendations

From the above analysis, some general comments and recommendations can be made
as follows:

1. Viet Nam is a maritime country. Marine economic development is one of the very
important contents of the national economic development strategy. The Strategy for
Sustainable Development of Viet Nam's Marine Economy to 2030, with a Vision to
2045 (Resolution No. 36-NQ/ TW) clearly states the goals of developing marine
economic sectors and conserving marine ecosystems for the period up to 2030, with
a vision to 2045. The resolution also clearly states the goals by 2030, “the marine
economic sector contributes about 10% of the country's GDP; The economy of 28
coastal provinces and cities is estimated at 65-70% of the country's GDP”. The
Resolution is clear about the direction of travel, however, to support and promote the
implementation of the Resolution this analysis presented here provides a more
detailed look at the interplay between sectors, and the potential for a blue growth.
The conclusion of this study, combined with the marine spatial planning initiative and
other work, provides a route to integrated implementation of Resolution 36 and
expansion of the blue economy.

2. This report is one of the first studies on blue economic development in Viet Nam.
This new approach is both an immediate practical requirement and a long-term
requirement, ensuring the goal of rapid and sustainable development of the national
economy in general and the marine economy in particular. In the context of the lack
of statistical data, especially investment data for each marine economic sector, the
analysis of costs - benefits for each sector and the comparison between these sectors
has not been performed. However, the estimated data of each industry in terms of
value added (VA), the number of employees in use, etc. have allowed partial
visualization of the scale and role of each sector in the development of marine
economy in particular and the whole economy in general. The economic analysis in
this study provides a baseline for more integrated planning across marine sectors to
capture synergies.

3. The link between the growth of marine economic sectors with environmental
protection and the SDGs targets that Viet Nam has committed to is a new perspective,
bringing many issues to think about and consider in development policy. The 17
sustainable development goals cover areas that are very important to marine
economic development in a developing country like Viet Nam, including No poverty
(SDG 1): Eradicate poverty in all its forms everywhere; Zero hunger (SDG 2): Eliminate
106
hunger, ensure food security and improve nutrition, develop sustainable agriculture;
Decent Work and Economic Growth (SDG 8): Promote long-term, inclusive and
sustainable economic growth, full and productive employment and decent work for
all; Climate Action (SDG 13): Take urgent action to combat climate change and its
impacts; and Life Below Water (SDG 14): Conservation and sustainable use of oceans,
seas and marine resources for sustainable development. Policies for marine economic
development must ensure that the exploitation of marine resources by today's
generation does not harm the exploitation of marine resources of future generations.
Therefore, in the national marine spatial planning, a program that Viet Nam has begun
to launch, besides identifying marine protected areas, it is necessary to calculate a
reasonable marine socio-economic structure to bring about the highest values, while
maintaining and increasing the area and value of marine ecosystems and biodiversity.
Embedding the blue economy into broader socio-economic development provides a
platform for enhancing the delivery of many of the SDGs.

4. In the immediate future, the development space for each sector of Viet Nam's
marine economy is still quite open and has not led to major conflicts between sectors,
and economic development has not reached the point of big conflict of interests to
manage. Viet Nam's marine economic activities have led to environmental
degradation, but not at a catastrophic scale. This result is partly thanks to the
propaganda activities which helped raise awareness on protecting marine resources
for all classes of people, and the workers in the marine economy. Recently, Viet Nam
also joined the Global Plastic Action Partnership Program in Viet Nam (NPAP Viet
Nam), which aims to reduce ocean plastic waste by 75% by 2030. The environmental
tolerance threshold for marine economic sectors and the development of marine
economic sectors, including both conflict and complementarity [between them] is still
quite open. In addition, Prime Minister Pham Minh Chinh announced Viet Nam’s
strong climate commitments at the COP26, including net zero emission by 2050.
Therefore, in the next 10-15 years, the economic growth scenarios are towards a faster
direction, thanks to the factors of science - technology, productivity improvement
combined with ecosystem conservation and maintenance of biological diversity is still
very realistic. Building robust mechanisms, processes and regulations to ensure
maintenance of environmental quality alongside the marine economy growth is a core
recommendation for a blue economy.

5. In the medium and long term, in order to better manage the marine ecosystem and
develop the marine economic sectors more sustainably and effectively, State

107
management agencies relevant to the marine economy need to develop a long-term
program with continuous efforts on some of the following content:

- Develop mechanisms and policies to ensure good management of marine resources,


and at the same time encourage marine economic activities based on environmentally
friendly technologies, in line with Viet Nam’s new international commitments.
Expanding more business areas capable of bringing high value such as herbal medicine,
marine energy, especially offshore wind power, etc. The main ideology of the policies
is derived from a comprehensive and general view of the position and role of the ocean
for the socio-economic development of a maritime country like Viet Nam. The ocean
"is a living space, a gateway for international exchanges, closely associated with the
progress of national development and defence. Sustainable development of the
marine economy on the basis of green growth and biodiversity conservation, marine
ecosystems; ensure harmony between economic and natural ecosystems, between
conservation and development, between the interests of coastal localities and non-
coastal localities; strengthen linkages and restructuring of industries and fields
towards improving productivity, quality, efficiency and competitiveness; promote the
potential and advantages of the sea, creating a driving force for national economic
development”. (Resolution No. 36-NQ/TW dated October 22, 2018);

- To organize the building of a systematic and unified marine economic information


system to serve the study of blue sea economic policies in the coming period.
Currently, at the central level, marine economic sectors are managed by various
ministries; At the local level, the department that manages marine economic
development issues is not the same [among local governments]. In the national
statistical data system, which is published every year, there is no information on the
marine economic sectors. Therefore, State agencies need to quickly build up a
systematic and unified marine economic information system from the central to local
levels to serve as a basis for research and development of blue economic policies.

- Strengthen human resource training for marine economic activities, especially


forming a team of experts to conduct in-depth research on issues of blue sea economic
development. In the face of the requirement to improve the quality of development
of marine economic sectors in combination with the conservation of marine
ecosystems and biodiversity in the new situation, the increase of human resources for
marine economic development in both quantity and professional capacity is a must.

- Expand international cooperation on the sea. In the context of disputes over


sovereignty over seas and islands in the East Sea, it is very important to expand and

108
strengthen international cooperation to maintain a peaceful and stable environmental
and cooperate for development. Unlike land, marine ecosystems and resources are
more “open”; therefore, international cooperation in sustainable management, use
and conservation of seas and oceans, natural disaster prevention and control and
adaptation to climate change, sea level rise, etc is a common requirement of all
countries and based on international law, especially the 1982 United Nations
Convention on the Law of the Sea.

- Organize well the elaboration of the National Marine Spatial Planning, the Master
plan on Sustainable Exploitation and Use of Coastal Resources, etc. in accordance with
the Law on Planning (Law No. 21/2017/QH14). In order to do well these master plans
in the direction of developing the blue sea economy, it is necessary to have an overall,
integrated view and "synchronized coordination among sectors and fields related to
infrastructure, resource use and environmental protection in planning on a defined
territory in order to achieve the goal of balanced, harmonious, efficient and
sustainable development” (Law on Planning, No. 21/2017/QH14) .

- On the basis of the approved master plan, it is necessary to focus on prioritizing


investment from public investment sources and encouraging the private sector to
invest in projects using green technology and clean energy in the sea and coastal areas.
The government should launch a Blue Economic Development Program, which clearly
identifies a number of key projects to focus on implementation, and which periodically
monitors and evaluates effectiveness and accountability in implementation.

109
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APPENDIX – SECTORAL REPORTS

Appendix A. Fisheries & Aquaculture


Aquaculture and Fisheries in Viet Nam include 2 types: (i) Freshwater Aquaculture and
Fisheries inland (lakes, ponds, rivers, streams); and (ii) Aquaculture and Fisheries in
salt/brackish water areas (coastal and offshore). This report considers only the
Aquaculture and Fisheries in salt/brackish water areas (coastal and offshore).

Figure A1. Fishing boat55

1. Resources

Viet Nam has a marine fishing ground of over 1 million square kilometres with over
2,000 species of fish that includes 130 species of high economic value and over 600
species of crustaceans, molluscs and seaweed. The total standing fisheries stocks in
Viet Nam seas are about 4.36 million tons per year56, excluding fish stocks of the deep
sea areas, floating mounds and continental shelf areas with 12% nearshore fisheries
resources, middle areas 19%, and offshore areas 69%. The fisheries grounds in Viet
Nam are classified into five fishing zones, including Tonkin Gulf (accounts for 17.3% of
total fisheries resource), Central Coast Zone (20.0%), Southeast Zone (25.6%), South
West Zone (13.4%) and Middle East Sea Zone (23.7%)57

According to the RIMF (2018), the average annual biomass of marine fish resources in
the 2011-2015 period was estimated at 4.364 million tonnes (fluctuated between 4.1-

55
Source: http://baochinhphu.vn/Hoat-dong-dia-phuong/Dieu-chinh-quy-hoach-cang-ca-khu-vuc-dao-
Cat-Ba/309129.vgp
56
RIMF’s survey of 2011-2015
57
RIMF (2018), Report on marine fisheries stock assessment in Viet Nam sea in the period of 2011-
2015 (submitted to MARD), Research for Marine Fisheries (RIMF), Hai Phong.

120
4.6 million tonnes)58, decreasing by 13.9% from 2000-2005 (5.071 million tonnes;
equal to annual decrease of 1.36% per year). In recent years, marine capture had
indicated a sign of overexploitation59 , leading to a decline in fisheries production
efficiency that was measured by the catch per unit of effort (CPUE). The CPUE of the
Viet Namese fleet has been decreasing continuously from 0.9 tonnes per horsepower
(hp) in 1990 to 0.29 tonnes per hp in 2010 (VIFEP, 2013) and to 0.26 tonnes per hp in
2019 (VIFEP, 2020) with annual decrease rate of 1.14% per year in the period of 2010-
2019 and 4.13% in the period of 1990-2019.

Viet Nam has the potential for marine and coastal aquaculture development with the
coastal lines of over 3,260km long, the numbers of islands over 3,000; 12 coastal
lagoons along the coasts; 112 coastal estuaries. In terms of potential locations and
areas, about 500,000 hectares60 of closed bays, nearshore islands, middle shore sea
areas and low tidal flats can be exploited for marine aquaculture development. So far,
about 57,000 hectares out of that area have been used for marine aquaculture
development and the rest of 443,000 hectares are still potentials for marine
aquaculture, especially the nearshore and middle shore areas.

In addition, a large number of low and high tidal areas of about 750,000 hectares61 in
all of the 28 coastal provinces are also suitable for brackish-water62 aquaculture
development and its majority is for shrimp farming. So far, about 720,000 hectares of
those areas have been used for brackish water coastal aquaculture farming along the
coast.

2. Present status

The aquaculture and fisheries sector is one of the long-standing traditional marine
economic sectors in Viet Nam. The main economic activities in this sector include:
aquaculture; fisheries; seafood processing, including traditional fish sauce making
developed in many coastal areas; ship/boat manufacturing/repairing; wire mesh

58
This 4.364 million tonnes do not cover the fisheries resources in the deep sea areas and continent
shelf areas of Vietnam as resource stock assessment there have not been conducted.
59
In 2011-2015, this study identified 1207 captured marine species, including 945 species of fish, 135
species of crustaceans, 48 species of cephalopods and 50 other species. According to the study,
fishing volume of demersal species reached the sustainable limit, fishing volume of pelagic species
(big pelagic and small pelagic) was within sustainable limits and capture of some other marine
species still had potential for greater fish catch volume.
60
MARD (2018), National strategy for marine aquaculture development towards 2030 and visions
to 2050, Hanoi.
61
VIFEP (2012), Master Plan for Fisheries Sector Development towards 2020 and visions to 2030,
Hanoi.
62
Brackish-water aquaculture is to culture aquatic species in the coastal ponds with water salinity of
3-25ppt (sometimes the salinity may go lower or higher that range but should not last for a long time).
This farming is mainly done in coastal areas

121
manufacturing, feed and seed manufacturing, and a host of other service jobs. Thus,
in addition to the direct workforce in Aquaculture and Fisheries, there is a diverse
workforce in many occupations that is an indirect workforce supporting the sector in
before and after specific Aquaculture and Fisheries work. Therefore, Aquaculture &
Fisheries is considered to create employment opportunities and livelihoods for a large
number of residents in the coastal areas of Viet Nam.

Over the past 20 years, the growth of production from the total fishery production
(including both capture and aquaculture) has quadrupled, from about 2 million tons a
year in 1999 to 4.7 million tons in 2009 and 8.15 million tons in 2019 (See Figure 2.2).
Out of the 8.15 million tons in 2019, the catch was 3.77 million tons, of which 94.6%
was caught at sea and aquaculture production was 4.38 million tons, of which 28% is
raised in coastal and marine farming areas.

There has been a strong structural change in the means of fishing as the total number
of small fishing boats and vessels operating in nearshore and middle shore areas have
reduced from 92,391 boats and vessels in 2013 to 66,135 boats vessels in 2019 (
reduction of 5.42% per year). However the number of offshore vessels has shown an
upward trend from 26,398 vessels in 2013 to 30,474 vessels in 2019 (D-FISH, 2019)
(increased by 2.42% per year). The reason for this structural change is partly due to
the Government's policies to encourage offshore fishing and limit inshore fishing, on
the other hand, due to the decline in near-shore fishery resources.

The logistic services for capture fisheries include 83 fishing ports (data in 2018) with
designed capacity of 1.8 million tons for 9,298 fishing vessels arrive/day; 25 first class
fishing ports (of which, 9 ports for fishing vessels with maximum capacity of 1,000 hp
and 2 ports for vessels with 2,000 hp); 58 second class ports; 66 storm shelters with
maximum capacity for docking of 42,464 vessels; 354 facilities of ice production and
643 cold storages with total capacity of about 78,700 tons of seafoods (D-FISH, 2019).

The marine and coastal aquaculture has shown an upward trend in the period of 2010-
2019 with the average growth rates of farming area for of marine aquaculture of 1.24%
per year and coastal aquaculture is 4.56% per year. This leads to a growth rate of
1.88% per year for total marine and coastal aquaculture, from 710,400 hectares in
2010 (VIFEP, 2013) to 840,000 hectares in 2019 (D-FISH, 2019)63. In terms of yield
volume, aquaculture production has been increased significantly in the last 10 years
with the annual growth rate of 6.5% per year, from 692,904 MTs in 2010 (VIFEP, 2013)
to reach the total of 1,220,000 MTs of seafood in 2019 (D-FISH, 2019) and its majority

63
D-FISH (2017), Annual report of fisheries sector achievements in 2017 and action plans for 2018.

122
has come from coastal land-based brackish-water shrimp farming (accounting for
61.5% of total coastal and marine aquaculture production in 2019). In Viet Nam,
aquaculture seed has been supplied by about 2,400 hatcheries nationwide, but
majority of them are for shrimp seed with 2,362 shrimp hatcheries64.

5.000.000
4.500.000 Aquaculture (tons)

4.000.000 Capture fisheries (tons)

3.500.000
3.000.000
2.500.000
2.000.000
1.500.000
1.000.000
500.000
-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure A2. Aquaculture and capture fisheries production in the period of


1999-201965

For seafood processing and exporting, the total seafood processing enterprises was
784 in 201966, exporting seafood to EU, Korea, China and other countries. During 2010-
2019, seafood processing in Viet Nam became a developed seafood industry, which
has met almost all strict requirements for food safety, product quality and other
sustainable development certifications from imported markets. The seafood
processing industry has contributed significantly in making Viet Nam become the third
largest exporter of seafood globally with its share of 6.9% of global seafood value total
in 201867. The value of its exports increased from USD 5 billion in 2010 to
USD 8.6 billion in 201968 (accounting for 22.5% of total export value of the agriculture-
forestry-fishery sector), with average growth rate of 6.1% per year. The share of
marine and coastal seafood (from both aquaculture and capture fisheries) in yearly
export value of 2019 was 78%; the rest is from inland freshwater pangasius catfish
(with pangasius catfish export value of USD 1.907 billion in 2019). The key processed
seafood products are shrimp (about 39.3%, equal to USD 3.38 billion of total seafood

64
D-FISH (2019), Annual report of fisheries sector achievement in 2019 and action plans for 2020.
65
Gathered and compiled from annual reviewing reports of D-FISH and MARD.
66
VIFEP (2020), Draft version of Sectoral Strategy for Fisheries Sector Development towards 2030
and vision to 2045
67
According to Statista.com, in 2018, the total global seafood market value was about USD 130
billion, while the total Vietnamese seafood export value was about USD 9 billion in 2018.
68
D-FISH (2019), Annual report of fisheries sector achievements in 2019 and action plans for 2020.

123
export value in 201969), tuna (export value was about USD 700 million per year),
octopus and squid (export value is about USD 600 million per year).

The contribution of Aquaculture & Fisheries to economic growth: According to


estimates, nominal GDP of marine capture & aquaculture sector has increased from
68.91 VND thousand billion in 2010 to 166.76 VND thousand billion in 2019. It
contributes approximately 72-89% of the whole nominal fisheries sector GDP, 15-20%
to nominal GDP of Agriculture, Forest and Fisheries sector and 2-3% to nominal GDP
of Viet Nam as well (see Table A1).

Table A1. The share of nominal GDP of marine capture & aquaculture sector in
national and Agriculture, Forest and Fisheries sector GDP
The share of ocean/coastal fish &
Nominal GDP (unit: VND thousand billion)
aqua GDP (%) in

Marine The
Year Agriculture, Whole Agriculture,
capture whole Viet Nam
Forest and National fisheries Forest and
& fisheries national
Fisheries GDP sector Fisheries
aquacult sector GDP70
GDP GDP sector GDP
ure GDP GDP

2010 68.91 - 2157.83 396.58 3.19% - 17.38%

2011 87.86 98.88 2779.88 543.96 3.16% 88.9% 16.15%

2012 95.13 - 3245.42 623.82 2.93% - 15.25%

2013 100.17 128.69 3584.26 643.86 2.79% 77.8% 15.56%

2014 112.41 - 3937.86 696.97 2.85% - 16.13%

2015 107.04 147.91 4192.86 712.46 2.55% 72.4% 15.02%

2016 114.00 - 4502.73 734.83 2.53% - 15.51%

2017 134.59 171.47 5005.98 768.16 2.69% 78.5% 17.52%

2018 166.11 190.12 5542.33 813.72 3.00% 87.4% 20.41%

2019 166.76 205.25 6037.35 842.60 2.76% 81.2% 19.79%

Source: Cao Le Quyen, 2021.

The estimated result shows that the annual growth rate of real GDP of the marine
capture & aquaculture sector was about 4.5% per year in the period of 2010-2019,

69
D-FISH (2019), Annual report of fisheries sector achievement in 2019 and action plans for 2020.
70
https://www.gso.gov.vn/default.aspx?tabid=715

124
which is slightly less than the annual growth rate of the whole fisheries sector (5.1%
per year), larger than the Agriculture, Forest and Fisheries sector’s real GDP (2.8% per
year), and more than a half of the growth rate of national GDP’s growth (6.3%).

Unlike industries and services with a very large share of foreign direct investment (FDI),
the agricultural sector in general, and the marine capture & aquaculture sector in
particular, the proportion of FDI is very small, and there is no outwards investment, so
GDP generated by the marine capture & aquaculture sector is also roughly on par with
GNI in this sector. Thus, almost all VA generated in the marine capture & aquaculture
sector will belong to the income of Viet Namese people/enterprises.

The Impact of marine Aquaculture & Fisheries on society and environment: Currently,
the majority of the marine Aquaculture & Fisheries sector is undertaken by the private
sector. The marine capture labor sector has approximately 750,000 direct labours (in
2019), together with about 500,000 indirect labours in service and logistic provision71.
In the marine and coastal Aquaculture sector, specifically brackish water shrimp
farming, with about 400,000 hectares of intensive and semi-intensive farming, and
about 320,000 hectares of improved-extensive and extensive farming, there are about
0.6-0.7 million72 local households with more than 1.1 million people directly working.

Table A2. Labour shares in marine and coastal capture fisheries and aquaculture
Annual growth rate in
Unit: labour 2010 2019
2010-2019 (%)

Marine/coastal Aquaculture 807,383 1,125,850 3.76

Coastal aquaculture 650,000 900,000 3.68

Marine aquaculture 157,383 225,850 4.09

Marine/coastal capture 500,000 750,000 4.61

Total 1,307,383 1,875,850 4.09

Source: Cao Le Quyen, 2021.

In addition to the number of direct employees of marine aquaculture and capture


above, a large number of employees work in the fields of processing, building and

71
According to estimation by VIFEP, the total number of direct and indirect labours in fisheries sector
(capture, aquaculture, processing and logistics) is about 4.5 millions in 2018-2019.
72
Self estimated by the authors in the following way: Each shrimp farming hectare of intensive or
sem-intensive may require 1.5 labours and improved-extensive or extensive may require 1.0 labour for
farm work and management; each local shrimp household may own an average of 1.0 hectare of shrimp
farming land.

125
repairing fishing vessels, manufacturing fishing gear, producing shrimp, fish feed, and
other services. It is estimated that in 2019, the total labourers in seafood sector
(aquaculture and capture fisheries) accounted for about 8% (approximately 4.5 million
labourers) of the total labour force in Viet Nam73.

3. Interaction with SDGs

The global SDG Agenda 2030 has been adopted locally in Viet Nam SDGs with the Prime
Minister’s Decision No. 622/QD-TTg dated on 10 May, 2017 on National Action Plan
for Implementing Agenda 2030 for Viet Namese sustainable development. In this
National Action Plan, the Goal No. 14 on Conserve and sustainably use the oceans,
seas and marine resources with the objectives and tasks No. 14.2; 14.4; 14.5; 14.6 are
linked to fisheries and aquaculture sectors and the detailed action plans to implement
those objectives are further defined in the agriculture Sector74 Action Plan at the
Decision No.1308/QD-BNN-KH of the Minister of Ministry of Agriculture and Rural
Development (MARD) dated on 13 April 2018. In addition, most of the other
Sustainable Development Goals are more or less directly related to the Marine
Aquaculture & Fisheries sector.

In order to link the capture fisheries and aquaculture sectors to the SDGs that they
influence in a positive or negative way, this research adapt established approaches
and scales of Stockholm Environment Institute75 for understanding this interaction as
follows:

Table A3. Scoring table between aquaculture and capture fisheries sectors and
SDGs
Score Description

+3 Progress in the sector delivers significant progress on the SDG

+2 Progress in the sector delivers progress in the SDG

+1 Progress in the sector delivers minor progress in the SDG

0 Progress in the sector is independent of the SDG

-1 Progress in the sector delivers minor negative effects on the SDG

-2 Progress in the sector delivers some negative effects on the SDG

73
GSO (2019), Press release on labour and employment in the first quarter of 2019, GSO.
74
Since 2007, fisheries sector in Vietnam has been merged with agriculture and rural development
sector and under the management of Ministry of Agriculture and Rural development (MARD)
75
https://doi.org/10.1007/s11625-018-0604-z

126
-3 Progress in the sector delivers significant negative effects on the SDG

From above table, we can then track the sector against the SDG Goals as follows:

Table A4. Linkage of aquaculture and capture fisheries to Viet Namese SDGs
SDGs Score Comments

Nearshore capture fisheries (accounting for 49.11% of total vessels in


2019 in Viet Nam) and small-scale aquaculture farming (60%) create
SDG 1 +3 sustainable livelihoods and incomes for poor communities in coastal
and island areas.

Nearshore capture fisheries and small-scale aquaculture farming help


to reduce poverty rate and ensure food security for poor communities
SDG 2 +3 in coastal and island areas

Providing seafood that improves nutritional levels and contributes to


SDG 3 +3 social welfare access for poor communities in coastal and island areas

Sustainable capture fisheries and aquaculture development helps local


SDG 4 +2 communities in coastal and island areas have more opportunities to
access to education and technical training

Many opportunities are created for women to participate in fish


SDG 5 +2
processing, marketing and aquaculture industry.

Aquaculture development uses water resources and may create


SDG 6 -1 negative impacts on environment such as organic pollution from feed
residues, mud wastes, and salinity intrusion.

SDG 7 0 No contribution

Contribute to economic growth and creates more jobs for local


SDG 8 +2
communities in coastal and island areas.

Contribute to improve infrastructures for coastal and island areas such


SDG 9 +2 as fishing port, storm shelter, roads, sluice, electricity,
telecommunication, etc

Nearshore capture fisheries and small-scale aquaculture maintain daily


SDG 10 +1 livelihoods for vulnerable local people, leading to reduce inequality
within local community.

127
Contribute to sustainable urban and rural development with more
SDG 11 +1
access to good foods and infrastructure building in coastal areas.

Organic shrimp and Marine Stewardship Council certification76 captured


SDG 12 +1 seafood products may contribute to responsible production and
consumption

Brackish water aquaculture development in coastal salinity intrusion


SDG 13 +3 areas (ex. shrimp farming) is considered as one of feasible climate
change adaptation solutions.

Ending IUU (Illegal, Unreported and Unregulated) fishing and relevant


SDG 14 +3 subsidies for capture fisheries will protect aquatic resources and
contribute to sustainable fisheries development

Shrimp-mangrove integration creates organic shrimp and contribute to


SDG 15 +1
protect and restore coastal mangroves.

SDG 16 0 No contribution

Partnership with international and bilateral entities to end IUU fishing


SDG 17 +2
and sustainable aquaculture farming.

Cao Le Quyen, 2021

76
Marine Stewardship Council

128
Appendix B. Oil & gas
1. Resources

Oil and gas are normally found in sedimentary basins. There are 8 sedimentary basins
located in the exclusive economic zone and continental shelf offshore Viet Nam: Song
Hong, Hoang Sa, Phu Khanh, Cuu Long, Nam Con Son, Tu Chinh-Vung May, Truong Sa
and Malay-Tho Chu basins. But only 4 basins are being exploited and 3 of them namely
Cuu Long, Nam Con Son and Malay-Tho Chu basins (are located in the southern sea of
Viet Nam) has a large number of oil volume, playing important role in oil & gas industry
in Viet Nam.

Figure B1. Bach Ho Mine77

The overall assessment data on the potential oil and gas reserves of Viet Nam's waters
today are not officially published. However, exploration and search work are still being
continued by oil companies and basing on study of (T.X. Cường. 2019) by the end of
2019 Viet Nam had only exploited about 50% of the discovered reserves . In addition,
according to N. Hiep, 2019, about 6.3 billion m3of oil can be found in the future.

2. Present status

The chain value of oil and gas includes 5 subsectors: i) oil & gas exploration and
production; ii) oil refining and petrochemistry; iii) gas transmission and processing; and
power generation.

77
Source: http://www.pvn.vn/Pages/detail.aspx?NewsID=6c377577-811b-4d9a-89ca-f26794938278

129
Figure B2. Value chain of the ocean component of the Viet Nam petroleum industry

Viet Nam’s petroleum industry consists of 2 dominant companies, Viet Nam Oil and
Gas Group (PetroViet Nam) and Viet Nam National Petroleum Group (Petrolimex), and
some other small private companies. However, only PetroViet Nam operates in all 5
subsectors mentioned above. As for Petrolimex and other private companies, which
mainly focus on trading and distributing petroleum products, not related to marine
economic activities, the following status assessment only talks about PetroViet Nam.

(1) Petroleum Exploration & Production

Exploration & Production is the core business of the PetroViet Nam. Currently,
PetroViet Nam's subsidiaries and partners are exploiting fields located in 4 basins Cuu
Long, Nam Con Son, Malay-Tho Chu and Song Hong. The major subsidiaries of the
group operating this business in Viet Nam are PetroViet Nam Exploration and
Production Corporation (PVEP), Joint Venture Vietsovpetro (VSP), Bien Dong
Petroleum Operating Company (BDPOC) and Phu Quoc Petroleum Operating Company
(PQPOC). These subsidiaries in cooperation with many international partners are
currently operating 56 petroleum contracts as of April 2020. Some of these
international partners are Zarubezhneft, Rosneft, ENI, ExxonMobil, Gazprom, Petronas
Carigali, KrisEnergy, KNOC, PTTEP, Murphy, Premier Oil, Jadestone, Pearl Oil, etc.

PetroViet Nam subsidiaries together with the international partners have produced so
far nearly 700 millions m3 of oil equivalent in Viet Nam In this total production, Cuu
Long basin counts for over 75%, Nam Con Son basin counts for over 17% and Malay-
Tho Chu counts for over 7%. This explains the fact that most of the oil & gas
infrastructure are located in the Southeast and Southwest of Viet Nam (T.X. Cường,
2019).

130
Figure B3. Oil & gas production distribution among basins in Viet Nam (T.X. Cường,
2019 [34])

Figure B4. Oil & gas production during 2010-2019 (VPI, 2020, [37])

The historical oil & gas production data during 2010-2019 show that oil production
reached the peak during 2012-2015 and is now declining. Gas production has kept
steady from 2010 to 2019. Although the two mega gas production projects, Block B
and Ca Voi Xanh (Blue Whale), are a bit delayed, it is expected that when these fields
start production output will increase 20 - 30%.

In 2020, the domestic subsidiaries of PetroViet Nam along with their international
partners produced 9.65 million tons of crude oil and 9.16 billion cubic meters of
natural gas from offshore Viet Nam. The new reserves of 15 million tons of oil
equivalent also has been added.

131
The produced crude oil is partly supplied to Dung Quat Refinery located in Central Viet
Nam and partly is exported. The produced natural gas goes through 2 gas processing
plants in Dinh Co and Ca Mau then are mainly supplied to gas power stations Phu My
1; 2; 3; 4 and Nhon Trach 1; 2 in Southeast and Ca Mau 1; 2 in Southwest Viet Nam. A
small component of natural gas from these sources is supplied for industrial and
transportation use. The natural gas produced from Song Hong basin is minor and fully
supplied for industrial use in Thai Binh province.

Figure B5. Upstream investment indicators (VPI, 2020, [37])

The investment in the oil & gas exploration and production is usually measured by the
amount of invested money, number of exploration and appraisal wells and new signed
petroleum contracts. These indicators show that the investment level during 2016-
2019 and 2020 is declining.

PetroViet Nam also does upstream business outside Viet Nam through joint ventures
and subsidiaries operating in Southeast Asia, Africa, Middle East, former Soviet Union
and Central/South America. But these activities are not included in this blue economy
study.

(2) Petroleum Refining and Petrochemistry

In Petroleum Refining and Petrochemistry, the sub-sector has following two


subsidiaries and joint ventures, operating in refining business: 1) Nghi Son Refinery
and Petrochemicals (NSRP, operated since 2018), and 2) Dung Quat Oil Refinery and
Polypropylene (BSR, operated since 2010); two fertilizer plants, namely Phu My
Fertilizer Plant (PVFCCo, operated since 2004), Ca Mau Fertilizer Plant (PVFC, operated
since 2012) and two Gas Processing Plants (Dinh Co, operated since 2002 and Ca Mau,

132
since 2018). BSR refines the crude oil produced in Viet Nam, but to secure the input
by importing certain share of crude oil. NSRP refines 100% imported crude oil. All the
two fertilizer plants and the two Gas Processing Plants process gas produced in Viet
Nam to produce fertilizer and liquified petroleum gas (LPG) and supply dry gas for gas
power plants. Dung Quat Refinery processes approximately 6 million tons of crude oil
every year and serves around 30% of the domestic petroleum products market.

In 2020, the two refineries produced 11.85 million tons of petroleum products. The
two fertilizer plants produced 1.56 million tons of urea to serve around 70% of
domestic market.

Figure B6. PetroViet Nam petroleum products and urea production (VPI, 2020, [3])

(3) Gas sector

PetroViet Nam Gas Corporation (PVGas), a member of Petrovienam, is an unique unit


operating in gas transmission, processing and distribution. PVGas has been engaged in
many aspects of gas business from collection, import-export, transportation, storage,
processing, marketing and trading to fuel power plants, serve industrial facilities, but
the gas transmission and distribution are its core business. The corporation is
operating and number of gas pipelines:

The Cuu Long gas pipeline system to deliver gas to Phu My terminal, Dinh Co Gas
Processing Plant, Thi Vai terminal and other distribution stations.

The Nam Con Son gas pipeline connects the fields from Nam Con Son basin to gas
processing and facility onshore.

133
The gas pipeline PM3-Ca Mau which delivers gas from Malay-Tho Chu basin to Ca Mau
Gas Processing Plant to Ca Mau Fertilizer Plant and Ca Mau 1 & Ca Mau 2 Power Plants.

The Thai Binh Gas Pipeline connects gas fields in North Song Hong basin to industrial
customers in Thai Binh province.

The entire volume of natural gas is annually produced offshore is equal to the volume
of gas being transported, processed and distributed because until now Viet Nam does
not import natural gas.

(4) Gas power generation

For power generation, PetroViet Nam has one subsidiary PetroViet Nam Power
Corporation (PVPower). This corporation operates four gas turbine power plants
(Nhon Trach 1, Nhon Trach 2, Ca Mau 1 and Ca Mau 2). There are other gas turbine
power plants outside PetroViet Nam that are operated by Viet Nam Electricity
Corporation (Phu My 1; 2; 3; 4).

Figure B7. PetroViet Nam gas power production (VPI, [74])

In 2020, PVPower had produced 19.2 billions KWh.

(5) Technical services business

PetroViet Nam owns shares in partners working in a wide range of services covering
technical, finance, insurance, transportation, operation consultancy, scientific
research and training. However, at its core, is the technical services that provide a
substantial portion of revenue in this business area. The major technical service
companies, like PetroViet Nam Technical Service Corporation (PTSC), PetroViet Nam
Drilling & Well Service Corporation (PVDrilling), PetroViet Nam Transportation

134
Corporation (PVTrans), PetroViet Nam Construction Corporation (PVC), PetroViet
Nam Chemical & Service Corporation (PVChem) and PetroViet Nam Insurance
Corporation (PVI Holdings), are now main providers of technical and insurance service
to upstream operators in Viet Nam.

The exploitation volume of other mineral resources in Viet Nam's marine and coastal
areas is minor when compared to oil & gas. According to public information, there are
several mines of Coastal Heavy Mineral Sands (HMS) rich in titanium, and zircon.
Current producing mines are Quang Xuong (Thanh Hoa prov.), Cam Hoa (Ha Tinh
prov.), Ke Ninh, Ke Sung (Nghe An Prov.), De Gi (Binh Dinh prov.), Ham Tan (Bình Thuận
prov.) with small production volume.

The Thach Khe Iron mine in the coastal area of Ha Tinh Province has rather big reserves
of 532 MT. The ore body is located below the sea level, thus creating difficulties for
development. Thus, It will take a long time before this mine can be approved for
production.

There are indicators of the gas hydrates presence in the Viet Nam offshore, but
resources have not been quantified. According to USGS, Viet Nam is ranked 5th in Asia
regarding gas hydrate potential. It is predicted that in the next 15 to 20 years, this type
of resource still cannot be commercialized in Viet Nam.

(6) The meaning of Oil & Gas/Marine Resources in economic growth:

Oil and gas exploitation, transportation and processing, gas power generation, oil and
gas technical services are completely new industries in Viet Nam, operating on the
basis of modern, high-tech technology. If counting from when the Viet Nam - Soviet
Petroleum Joint Venture Enterprise (Vietsovpetro) exploited the first ton of oil from
the Bach Ho field (June 1986) and in 1987 the Vietsovpetro joint venture exported the
first ton of oil, it has only been 34-35 years. However, over the past 35 years, the oil
and gas industry has contributed greatly to Viet Nam's economy. In particular, the oil
and gas industry has contributed greatly to budget revenue, thereby contributing to
macroeconomic stability and social security. Oil & Gas's contribution to GDP and the
state budget in the past 10 years is as follows:

135
Table B1. The nominal GDP and contribution to the state budget of the oil & gas and
marine resources sector(1)
Nominal Nominal
State Sector
National Sector Sector Sector
budget contribution
GDP GDP contributio contribution
Years (thousand to the budget
(thousand (thousand n to the to the
billion (thousand
billion billion GDP (%) budget (%)
VND) billion VND)
VND) VND)

2010 2,158 204.2 9.5% 588 110.4 18.8%

2011 2,780 281.4 10.1% 722 160.8 22.3%

2012 3,245 318.9 9.8% 735 186.3 25.4%

2013 3,584 343.6 9.6% 828 195.4 23.6%

2014 3,938 324.4 8.2% 878 189.4 21.6%

2015 4,193 245.5 5.9% 998 115.1 11.5%

2016 4,503 203.4 4.5% 1,102 80.2 7.3%

2017 5,006 229.7 4.6% 1,289 97.5 7.6%

2018 5,542 276.2 5.0% 1,422 115.0 8.1%

2019 6,037 331.4 5.5% 1,539 108.0 7.0%

Source: Nguyen Hong Minh, 2021.

(1) Audited Unified Financial Reports published by PetroViet Nam on its website
(PetroViet Nam, 2020. Public information. www.pvn.vn) will be used as primary data
for the sector GDP calculation. The unified revenue less financial income will be used
for calculation. To adjust for non-marine economy of the oil & gas industry and
addition of coastal mining activities, the coefficient 0.91 will be applied. This is based
on expert’s view that the non-blue economy of the oil & gas industry counts for about
10% and coastal mining activities are estimated to be 1% of oil & gas activities.

The Table 2.5 show that the sector GDP varies according to the oil prices, but generally
remains steady in the absolute value. The contribution of the sector to the national
GDP and state budget declines mainly due to growth of the scale of national economy.

The real GDP contribution of the sector also is calculated. The Producer Price Index of
crude oil and natural gas are referred to GSO published data.

136
Table B2. The share of real GDP of the oil & gas and marine resources sector
Real
Nominal
National PPI (crude Real Sector Contribution
Sector GDP
Years GDP oil, natural GDP (thousand to the GDP
(thousand
(thousand gas) billion VND) (%)
billion VND)
billion VND)

2010 2,158 204.2 100 204.2 9.5%

2011 2,292 281.4 157.1 179.1 7.8%

2012 2,413 318.9 158.79 200.8 8.3%

2013 2,544 343.6 152.88 224.8 8.8%

2014 2,696 324.4 148.97 217.7 8.1%

2015 2,876 245.5 82.64 297.1 10.3%

2016 3,054 203.4 62.48 325.5 10.7%

2017 3,263 229.7 80.38 285.8 8.8%

2018 3,493 276.2 99.66 277.1 7.9%

2019 3,739 331.4 95.06 348.6 9.3%

Source: Nguyen Hong Minh, 2021.

Table 2.6 show that if we take out the price factor, the relative contribution of the
sector real GDP slightly increases compared to nominal ones. The overall growth
picture of the sector remains steady like nominal GDP in Table 9 shows.

The income of the sector (GNI) is estimated as follows:

Table B3. The GNI of oil & gas and marine resources sector in 2010-2019(2)
Real
Nominal Sector Real Sector Nominal
Total labor in GNI/Labor
Years GNI (thousand GNI (thousand GNI/Labor
sector (Billion
billion VND) billion VND) (billion VND)
VND)

2010 42,829 84.7 84.7 1.98 1.98

2011 50,445 103.4 65.8 2.05 1.31

2012 49,903 103.5 65.2 2.07 1.31

137
2013 55,084 139.0 90.9 2.52 1.65

2014 56,000 143.5 96.3 2.56 1.72

2015 58,423 116.0 140.4 1.99 2.40

2016 55,357 110.3 176.5 1.99 3.19

2017 52,127 120.8 150.3 2.32 2.88

2018 49,873 139.4 139.9 2.80 2.80

2019 48,263 188.0 197.7 3.89 4.10

Source: Nguyen Hong Minh, 2021.

(2) The fiscal terms for oil & gas exploration and production in Viet Nam allows 25%
for cost recovery. This percentage means maximum investment cost that the operator
can recover from produced barrels. In the unified revenue there are also investments
of businesses other than exploration and production, so we estimated KI to be 80%.
KF is estimated to be around 10% as discussed earlier. C refers to published data of
GSO.

Unlike many other marine economic sectors, oil & gas is an industry with a very large
proportion of FDI. On average, over the past 10 years, the GDP (real price) of oil & gas
is more than 2.1 times larger than the actual GNI of the industry, which means that
GNI is only less than half of the GDP, although in recent years, the rate GNI/GDP ratio
tends to increase.

(7) The Impact of oil and gas on society and environment

- For society:

The biggest contribution of the oil and gas extraction industry, especially in the first
stage of business, which is also when the Viet Namese economy began to innovate, is
to contribute to economic growth and especially for the state budget. During the peak
period, the oil extraction industry accounted for 20% of the total GDP and 30% of the
total state budget revenue. In the last 5 years, the contribution rate of Oil & Gas, the
GDP and budget growth has decreased, to only 10% and 3-5% respectively due to a
slow revenue growth of Oil and Gas and partly due to the increase of GDO and budget.

Thanks to the large contribution of the Oil & Gas industry to the State budget, the
State has been able to maintain macroeconomic stability and maintain social

138
development expenditures (education, health care, hunger eradication and poverty
alleviation).

For some coastal localities, the construction of petrochemical refineries (Quang Ngai,
Thanh Hoa), gas power plants (Ca Mau), nitrogen fertilizer factories, gas pipeline, etc
has significantly contributed to change the economic and social situation here
compared to before.

The petroleum industry creates many direct jobs along a value chain. Around 42,000-
58,000 employees work directly at PetroViet Nam and its subsidiaries. The number of
indirect jobs, mainly in the service business, can be estimated to be as many as direct
jobs. Petrolimex is estimated to have around 20,000 employees but the indirect jobs
can be double of this as many gas stations are franchised.

- For environment:

The impacts of oil & gas production on the marine environment in Viet Nam are not
fully known or fully researched. One significant paper on this theme was published in
the PetroViet Nam Journal in 2017 (B.H Diễm, 2017 [68]). The paper studied the
marine environmental changes in oil and gas fields in Cuu Long basin during the 1995
- 2015 period. The study focused on the monitoring of sea water quality, the
sedimentary environment and benthic ecosystem around offshore production
facilities of 16 oil fields in the basin. This study shows that the most important impacts
caused by disposal of drilling muds into the sea, during drilling campaigns.

In many of the oil fields, the content of Barium and Mercury, Zinc and some other
heavy metals and Total Carbon Content (THC) increase; but they generally are below
acceptable values according to the national standard QCVN 10-MT:2015/BTNMT. The
effect of production on indicators of benthic community, like Number of Species (NS),
Number of Individuals (NI) also tend to be not significant. The quality of sea water
through measured indicators, like Dissolved Oxygen (DO), Total Suspended Solid (TSS),
Total Hydrocarbon Content (THC), Total Organic Carbon (TOC), and Biochemical
Oxygen Demand (BOD) are all within the national standard QCVN 43:2017/BTNMT.

According to public data released in the Online Dialogue on Preventing and


Responding to Oil Spills in Viet Nam Sea on December 17th 2019 (tienphong.vn, [38]),
during 1992-2019 there were 190 oil spills in Viet Nam. Among them, 37 were offshore
(19%) and 88 were in coastal areas (47%). Some cases which were mentioned in the
dialogue include the VietSun Integrity shipwreck in Long Tau river, Ho Chi Minh City,
with 150 tons of diesel inside which later was pumped out by response team; accident
of Nordana Sophia ship with 180 tons of fuel inside in Ha Tinh province sea; Toan Phat
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68 shipwreck in Quy Nhon sea with 25 tons of DO inside threating oil spill into the sea.
According to this, up to now no oil spills caused by oil production or by transportation
of crude oil were recorded in the sea territory of Viet Nam.

3. Interaction with SDGs

Due to the specific nature of the industry, offshore oil and gas activities do not have
an equal impact on all SDGs. In fact, Oil & Gas/Marine Resources is closely related is
related to only a few objectives, the most affecting SDGs 1 and 7. The assessment of
the impact of Oil & Gas/Marine Resources on SDGs is as follows:

Table B4. Oil & Gas/Marine Resources sectors and Viet Namese SDGs
SDG Score Comments

Oil & gas sector contributes remarkable portion of state budget,


SDG 1 +2 thus helps the government to have resources to end poverty in the
remote and difficult areas

LPG produced from natural gas offshore Viet Nam may bring heat
to remote communities and help with food preparation and
SDG 2 +1
cooking; urea produced helps to get better agricultural outcrops. All
help to end with hunger

SDG 3 0

SDG 4 0

SDG 5 0

If not managed well, oil and gas can cause water pollution (-)

SDG 6 0 Oil & gas activities are mainly offshore and do not have impact on
onshore water. In some cases oil & gas exploration even could help
to find some water sources (f.e. Tien Hai) (+)

Developments in this area lead directly and significantly into


SDG 7 +3
affordable energy production for all.

The Oil and Gas industry creates many direct jobs in large energy
industrial regions like Southeast Viet Nam, Ca Mau, Quang Ngai,
SDG 8 +2
Thanh Hoa.... Besides, it creates many indirect jobs related with
services, trading and products distribution

SCD 9 +2 Oil & gas sector develops infrastructure and leads the development
for some industrial regions, like Ba Ria-Vung Tau, Southeast,

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SDG Score Comments

Southwest, South- and North Central Viet Nam. By this, it promotes


inclusive, sustainable development and fosters innovation in these
areas

Providing clean and affordable electricity indirectly reduces


SDG 10 +1
inequality.

Oil & gas industry contribute to sustainable urban development and


SDG 11 +1 communities (Vung Tau, Ho Chi Minh, Nhon Trach, Ca Mau, Quang
Ngai, Thanh Hoa, Thai Bình...)

Oil & gas industry today and its transition to clean energy
SDG 12 +1 (renewable energy) show responsibility in energy production and
consumption.

Oil & gas industry already has Action plan for mitigation of climate
SDG 13 -1 change (+), but as the main sources of GHG emissions this action
plan may not be enough (-)

Oil & gas sector uses the oceans, seas and marine resources and the
SDG 14 -1
process is unreversible.

SDG 15 0

SDG 16 0

The traditional close partnership in oil and gas sector promotes


SDG 17 +1
global partnership for sustainable development

Source: Nguyen Hong Minh, 2021.

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Appendix C. Marine renewable energy
1. Resources

The exploitation of marine renewable energy sources in general, and offshore wind
power in particular, is still a very new field in Viet Nam. The number of investment
projects and exploitations of wind power offshore and on islands in Viet Nam are still
very low. Apart from offshore wind, other forms of marine energy, such as tidal power,
ocean waves, and ocean currents are still in the research stage, but considered as
potential energy sources in the future.

However, in recent years, the investment, construction and operation of renewable


energy power projects in general and offshore wind power in particular have
"exploded" strongly. The number of renewable energy projects, primarily solar and
wind power, including offshore wind, registered by private investors, has increased
rapidly. The explosion of registrations for these projects is driven by two basic reasons:
first, the rapid advancement of solar and wind power generation technology, making
construction and equipment installation cheaper which reduces electricity production
cost per unit. Secondly, strengthening of the mechanisms and policies to encourage
investment, especially the purchase price of electricity from solar and wind power of
the Government of Viet Nam1.

Figure C1. Offshore wind turbines of Bac Lieu Wind Power Plant78

78
Source: https://Vietnamnet.vn/vn/khoa-hoc/viet-nam-buoc-dau-phat-trien-dien-gio-99651.html

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Therefore, even though the share of offshore wind power in total electricity output is
currently modest, if this growth rate is maintained, the share of renewable energy
which comes from offshore wind will certainly be much larger than today. Perhaps this
is also one of the very important reasons that is responsible for the changing structure
of the electricity industry in the future and one of the reasons why the Government of
Viet Nam is implementing power development master plan in period of 2021-2030,
vision to 2045

Sea wind resources

Viet Nam is evaluated as a country with relatively high potential for diverse renewable
energy sources, including solar energy, wind energy (including offshore wind power),
tidal energy, ocean waves and ocean currents, etc. A summary of renewable energy
sources that Viet Nam can exploit both inland and offshore is referred as below:

Solar energy: Solar energy is available around the year, relatively stable and widely
spreading throughout in various geographical and climate zones. Solar energy,
especially in the Center and South regions, can be used 300 days/year on average,
making Viet Nam have a high potential of solar energy (GIZ, 2016). In the Center and
South regions, average solar radiation is 5 kWh/m2/day. Meanwhile, in the North solar
radiation is about 4 kWh/m2/day79.

Electricity power from ocean tides, ocean waves and sea currents: Eastern Sea
provides high potential of marine energy through wave power, ocean current power
and tide power of at least 500 MW/year. Though these technologies are not yet
matured it may become one element of mix of power generations in Viet Nam in the
upcoming decades.

Wind energy: As a coastal country in monsoon tropical zone, Viet Nam is considered
to have a very good potential of offshore wind energy. However, like other developing
countries, potential offshore wind power of Viet Nam was still not quantified at a
reliable level because of lack of wind measurement data and current data sources of
wind.

Regarding the concept of "offshore wind power", according to Decision No.


39/2018/QD-TTg dated September 10, 2018 of the Prime Minister (Viet Nam), that
“Offshore wind power project” refers to any grid-connected wind turbine power
project constructed and operated offshore and outside the mean low water mark

1 Ministry of Industry and Trade, 2014, Maps of solar energy in Vietnam; and Institute of Energy,
2018, report “National solar power development plan”.

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baseline of several years (18.6 years). This is considered as legal background for the
assessment of marine wind power potential including near-shore and offshore wind
power projects of Viet Nam in this study.

Assessment of offshore wind power potential by installed capacity (MW) or electricity


production (MWh) needs sufficient and suitable data to establish standards and
regulations. This is since a small difference of wind speeds can lead to a significant
difference in electricity production (annual electricity production and levelized costs
of electricity (LCOE). Therefore, in order to assess the potential of offshore wind
power, it needs to have wind measurement data. However, so far, no offshore wind
measurement in Viet Nam has taken place sufficiently except one project with wind
measurement tower installed on sea in Soc Trang province and one project using
LIDAR fixed on a buoy in Binh Thuan province, but data of 12 months according to
regulation are not available when this report was being prepared.

Until now, no activity of assessing offshore wind power potential “officially” was
carried out by related ministries and sectors of Viet Nam but there are some initial
overview studies (including domestic and overseas studies) which provide encouraging
“values” of power capacity and electricity production which may be developed though
there are big differences between these studies. The differences may be due to
different methodologies, approaches and data sources used. The following is summary
of offshore wind power potentials of Viet Nam taken from different assessment
sources.

According to a research report by an independent group of experts, there are two


types of offshore wind potential that are considered using wind data at 100 m altitude
to assess the entire East Sea of Viet Nam. Average wind data were available for
duration of 10 years, 2006-2015, with net 10 kmx10km. Tool used is software WAsP.
Calculation results are summarized in the following Tables.

Table C1. Total theoretical and technical potentials of wind energy

No. Sea Theoretical potential (GW) Technical potential (GW)

1 Offshore 162.300 2.054

2 Coastal 297.924 4.321

Total 461.224 6.375

According to the assessment of Energy Sector Management Assistance Program


(ESMAP)/World Bank (WB), the total technical potential of offshore wind power in Viet

144
Nam is about 475 GW, including 261 GW of fixed and 214 GW capacity. However, the
report also states that converting this potential into actual must take into account the
infrastructure connectivity, economic, social and environmental considerations of
each region.

According to the Viet Nam - Denmark partnership program in the energy field, the
review of the offshore wind power development roadmap mentioned the potential of
this wind power source and considered that this power source can play an important
role in Viet Nam's green energy transition. Preliminary and presented findings show
that Viet Nam's offshore wind theoretical potential of around 160 GW.

According to the national power development plan period 2011-2020, with outlook to
2030 (revised PDP VII, according to Decision No. 428/QD-TTg, dated 18/3/2016), the
annual target for development wind power as follows: 800MW (by 2020); 2,000MW
(by 2025); and 6,000MW (by 2030)4. There are 11 provinces that have prepared
provincial wind power development planning according to Power Plan VII and revised
PDP VII, of which 7 are bordering the sea.

So far, the total capacity of wind power projects that has been has added to the
planning is 11,800 MW, mainly in the Southwest and Central South regions. In fact, as
of March 2020, in addition to the projects added to the above-mentioned power
development planning, the Ministry of Industry and Trade has received proposals from
250 wind power projects with a total capacity of about 45,000 MW from the provinces.

According to calculation results of the draft PDP VIII80, by 2030 there will be 19,500MW
of wind power, accounting for 14% of total generation capacity; wind electricity
production of about 48.3 billion kWh, accounting for 9% of the total electricity
production.

2. Present status

- National overview of the Electricity of Viet Nam: Annual growth rates of the installed
capacity and the produced electricity of Viet Nam power system were approximately
11.19% and 10.10% respectively in the period of 10 past recent years. Evolution of
growth rates of the installed power capacity by energy type and electricity load of Viet
Nam power system in period 2010-2019 is shown in Table 2.10 and Table 2.11.

As of the end of 2019, total capacity of power plants in Viet Nam is 55,939MW81. Of
which, capacity of coal fired power plants accounts for 36.23%; medium and big

4. Institute of Energy, Ministry of Industry and Trade, July 2020, First work shop on PDP VIII
81
EVN, 2020, operation report of Vietnam electricity system in 2019

145
hydropower plants (>30MW) accounts for 30.31%; gas turbines accounts for 13.31%;
oil fired and diesel power plants accounts for 2.86%; imported power accounts for
1.02%, and renewable power plants82 from renewable energy (RE) resources accounts
for about 16.22%.

Table C2. Evolution of installed capacity of power plants in period 2010-2019


No. Power plants Unit 2010 2015 2016 2017 2018 2019

Total capacity of National power


MW 21,542 38,642 41,422 45,410 49,410 55,939
plants, in which:

Traditional power plants,


1 MW 21,042 36,524 39,036 42,274 44,818 46,250
including:

1.1.1 Coal TPPs MW 2,745 13,251 14,595 17,089 18,945 20,267

1.1.2 Gas TPPs MW 3,179 7,446 7,446 7,446 7,446 7,446

1.1.3 Oil TPPs MW 537 1,242 1,242 1,242 1,579 1,579

1.1.4 Big HPPs MW 7,633 14,585 15,753 16,497 16,848 16,958

2 RE power plants MW 500 2,119 2,386 3,137 3,976 9,072

3 Share of RE power % 2.32 5.48 5.76 6.91 8.05 16.22

Source: National Load Dispatch Centre, Electricity of Viet Nam (EVN), from 2011 to 2020, Annual
operation reports of Viet Nam electricity system and Nguyen Duc Cuong.

Table C3. Growth rates of electricity load in period 2010-2019


Content Unit 2010 2015 2016 2017 2018 2019

Produced/gene
mill. kWh 99,106 163,501 182,166 197,610 219,976 240,101
rated electricity

Growth rates of
Produced/gene % 14.35 13.04 11.42 8.48 11.32 9.15
rated electricity

Source: National Load Dispatch Centre, Electricity of Viet Nam (EVN), from 2011 to 2020, Annual
operation reports of Viet Nam electricity system and Author (Nguyen Duc Cuong).

- Current status of RE and marine RE: In the past recent years, construction of power
plants with various types of RE technologies and putting them into operation in Viet
Nam were relatively strong, which brought into effect in some locations/provinces in

82
Including solar power, wind power, biomass power, waste power and small hydropower (according
to regulation, capacity of small hydropower plant is ≤30MW)

146
the South of Viet Nam. Two main drivers of this development are: i). Support policy
mechanism for development of RE – based power projects, in which the most effective
is electricity pricing mechanism (UScents/kWh) for wind power, solar power; and ii)
Specific investment costs/or CAPEX. (USD/MW) of solar power and wind power have
been being reduced over time.

With the features described above, growth rate of the installed capacity of RE power
plants in period 2010– 2019 reached higher levels than that of traditional power
plants, at about 37.99%/year on average. Of which, during only one year, from June
2018 to the June 2019, the total installed capacity of solar PV power plants in Viet Nam
increased 53 times, from 86MW to 4,695MW (not including over 200MW of rooftop
solar power systems installed in the same period).

Table C4. Capacity of RE (including marine RE) power plants in period 2010–2019
Annual growth
No. Contents 2010 2015 2016 2017 2018 2019
rate

Total installed capacity of


1 the national power 21,542 38,642 41,422 45,410 49,410 55,939 11.19%
system (MW)

Total installed capacity of


2 500 2,119 2,386 3,137 3,976 9,072 37.99%
RE power plants, In which:

Small hydropower(MW) 500 1,984 2,172 2,971 3,322 3,674 24.81%

Total wind power (MW) 30 90 126 152 243 377 31.48%

In which: offshore wind


0 22 105.2 105.2 105.2 105.2 -
power (MW)

Solar power (MWp) 3 5 8 10 86 4,696 126.44%

Biomass power and others


24 24 80 319 319 325 33.58%
(MW)

Source: National Load Dispatch Centre, Electricity of Viet Nam (EVN), from 2011 to 2020, Annual
operation reports of Viet Nam electricity system; and Author (Nguyen Duc Cuong).

- Economic present and infrastructure of Electricity of Viet Nam: Table 2.13 below
describes current status of infrastructure, economy of Viet Nam’s electricity sector in
period 2010 - 2019.

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Table C5. Main indicators of Viet Nam’s electricity sector in period 2010-2019
No Items Unit 2010 2015 2016 2017 2018 2019
I Infrastructure of Viet Nam’s electricity
Total power
1 MW 21,542 38,642 41,422 45,410 49,410 55,939
capacity mixed
Of which: Total
capacity of RE MW 500 2,119 2,386 3,137 3,976 9,072
power
In which: Total
capacity of marine MW 0.00 51.02 105.2 105.5 105.2 105.2
RE power
Share of marine RE
% 0 2.41% 4.41% 3.36% 2.65% 1.16%
in total RE
Share of marine RE
in total national % 0 0.13% 0.25% 0.23% 0.21% 0.19%
power capacity
2 Substations
500kV MVA 12,000 22,500 26,100 29,400 33,300 34,050
220kV MVA 20,020 39,103 45,028 48,553 57,441 62,236
110kV MVA 28,183 49,556 52,307 60,058 65,725 75,614
3 Transmission lines
500kV km 3,890 6,957 7,346 7,414 7,799 8,496
220kV km 10,015 14,198 16,589 17,126 17,861 18,391
110kV km 13,141 19,414 18,511 20,584 21,708 24,783
II Business data of Viet Nam’s electricity
Total electricity
1 GWh 100990 163433 181988 197433 221040 240101
produced
Total electricity
2 sold (consumed by GWh 85,674 143,680 159,790 174,650 192,360 209,420
customers)
Average electricity VND/
3 1,061.4 1,630.96 1,661.57 1,660.19 1,731.04 1,864.44
selling price kWh
Total revenue
Billion
4 from electricity 90,934 234,339.5 265,510.7 289,954.7 332,983.3 390,451.0*
VND
sales
Note: (*) estimated based on average electricity selling price of the year 2019

Source: + National Load Dispatch Centre, Electricity of Viet Nam (EVN), from 2011 to 2020, Annual
operation reports of Viet Nam electricity system; and Author (Nguyen Duc Cuong).

In 2010, total power capacity of power plants in Viet Nam was 21,542 MW. Total
capacity of substations at voltage levels of 110/220/500 kV is 60,203 MVA and total
transmission lines at voltage levels of 110/220/500 kV is 27,046 km. By the end of

148
2019, the total installed capacity of power plants has increased 2.57 times, reaching
55,939 MW. Similarly, the capacity of substations and transmission lines has increased
by 2.85 times and 1.91 times and reached 171,900 MVA and 51,670 km respectively.

In accordance with the average electricity selling price (VND/kWh) and the amount of
consumed electricity (kWh) (households) in the period of 2010 - 2019, the total
revenue of Viet Nam's electricity industry increased from VND 90,934 billion in 2010
to about VND 390,451 billion in 2019. The average revenue growth rate reached about
17.58%/year in the period of 2010 - 2019.

- Economic present of marine RE: Until now, the investment and exploitation of
renewable energy projects at sea such as offshore wind power projects, floating solar
power or solar power projects on islands in Viet Nam is still very modest. The
contribution of offshore wind power is almost non-existent but still in its infancy.
Hpwever, in recent years, wind power projects have increased rapidly.

Table C6. The share of real GDP of offshore wind power in National and Electricity
level GDPs
Year Nominal GDP (unit: VND thousand billion) % GDP offshore
windpower/GDP Viet
83
GDP Viet Nam GDP of offshore Nam
windpower sub-
sector
2010 2,157.83 0 0.00000%
2011 2,779.88 0 0.00000%
2012 3,245.42 0.0015 0.00005%
2013 3,584.26 0.0358 0.00100%
2014 3,937.86 0.0595 0.00151%
2015 4,192.86 0.1533 0.00366%
2016 4,502.73 0.3371 0.00749%
2017 5,005.98 0.4333 0.00866%
2018 5,542.33 0.5080 0.00917%
2019 6,037.35 0.5266 0.00872%
Nguyen Duc Cuong, 2021

The growth rate of real GDP of offshore wind sub-sector was about 131.8% per year in
the period of 2012-2019, but the contribution rate is very small in the real GDP of Viet
Nam and real GDP of the power sector in 2019, only 0.0141% and 0.2131%
respectively.

3. Interaction with SDGs

83
Estimate based on electricity revenue

149
Perhaps with the nascent state of the marine renewable sector, it is still too early to
assess the link between offshore wind energy and SDGs. However, initially, it can be
said that offshore wind power will be a key contributor to sustainable development.
Its net impacts will go beyond the energy/electricity sector: from human wellbeing to
employment growth. In addition, offshore wind power is important to support
significant progress on the Paris Agreement on Climate Change as well as SDGs.

Impacts of offshore wind power including economic (GDP, stable prices, employment,
secure supply, and investment); environmental (pollution, emissions, energy eficiency,
biodiversity, greenhouse gases); and social (health, diversity, jobs, etc.).

-Small renewable energy projects are often located in remote and mountainous areas
(mountains and islands). The development of renewable energy projects in these areas
not only contributes to ensuring the goals of energy access and quality of electricity
supply services (Goals 7 and 10 of the 17 sustainable development goals) but also
promotes promote socio-economic development for these remote areas.
Construction works in remote areas will create employment opportunities, develop
local transport and improve infrastructure for communities (Goal 8).

Table C7. Link offshore wind power to the SDG

SDGs Score Comments

SDG 1 +1 Attending to reduce poverty that bases on providing new jobs during
constructions, installations and operations.

SDG 2 0

SDG 3 +1 It may also indirectly support the achievement and ensuring good health
and air quality .

SDG 4 +1 Contributing opportunities to access to education and knowledge for local


residents.

SDG 5 0

SDG 6 +1 Contributing to access to clean water that bases on providing adequate and
stable supply of energy.

SDG 7 +3 Offshore wind power is an energy source that meets affordable and clean
energy requirements.

SDG 8 +2 Promoting economic growth and create more jobs for youth.

150
SDG 9 +2 Fostering innovation and infrastructure development in some coastal
localities.

SDG 10 +1 Providing clean electricity indirectly reduces inequality.

SDG 11 +1 Contribute to sustainable urban development and communities in many


coastal areas.

SDG 12 +2 High demands for responsible consumption and production.

SDG 13 +3 Offshore wind development is center on urgent action to combat climate


change that bases on proving green power source, replacing fossil fuels and
reducing greenhouse gas emissions.

SDG 14 -1 May affect biological species in the project areas.

SDG 15 0

SDG 16 0

SDG 17 +1 Partnership with international and bilateral entities.

Nguyen Duc Cuong, 2021

Links and interactions between offshore wind farms and other sectors are summarized
in the table below:

Table C8. Interactions between offshore wind farms with other sectors
No. Interactions Type of Constrain Description
with other interaction rate/scores
sectors

1 Fisheries Social and -/0 Offshore wind development sites restrict


economical access for fishing practices.

Foundation constructions and electricity


cables installations can temporarily increase

suspended sediments in the water with


negative impact to fisheries

2 Aquaculture Social and -/- Electricity cable and other cable installation
economical can affects both intertidal (near-shore area)
and offshore sites. Coastal aquaculture and
maricultural of fish, shellfish, and seaweed.

+/+

151
Offshore wind farms can be a "fulcrum" to
develop offshore marine farming.

3 Offshore Economical -/0 Oil and gas supply pipe lines can affect some
hydrocarbons (technical) offshore sites.
(oil and gas) and social

4 Tourism Social 0/+ There is small affect, e.g. sailing, coastal


hotels, beach, cruise on boat, surfing,
particularly for near shore areas

5 Transportation Economical -/0 There is small affect, e.g. marine routes.


(technical) Particularly for near shore areas.

6 Biodiversity Environment -/0 During the period of the pre-construction and


construction activities can affects both near-
shore and off-shore areas, but more likely to
impact in near-shore areas.

Nguyen Duc Cuong, 2021

Appendix D. Coastal and marine tourism


1. Resources

Viet Nam has many beaches with over 125 beaches that have a length of over 1 km or
more, and some beaches stretching up to 15-18 km long. The most beautiful beaches
are located along the central coast, Quang Ninh province and on some large islands.
Along the coast of Viet Nam, there are many lagoons and bays that are also valuable
tourism resources.

Preliminary statistics by Le Duc An (1996) show that there are a total of 2,773 coastal
islands with a total area of more than 1,720 km² and distributed mainly on the coast
of the Northeast region (2,321 islands), stretching border-to-border from Quang Ninh
to Kien Giang province, from shore to far from the shore within 135 to 155 km (Bach
Long Vi, Hon Hai) and with an area ranging from a few hundred square meters to over
500km2. Some provinces with many islands are Quang Ninh has more than 2000
islands, Hai Phong has 243 islands, Khanh Hoa has 100 islands and Kien Giang has 159
islands.

Biodiversity in national parks and protected areas, as well as mangrove forests is an


important tourist resource. Currently, there are 16 marine protected areas on the
mainland, islands or underwater from the North to the South. Most of the global

152
biosphere reserves in Viet Nam are located in the coastal areas and islands. Coastal
bird sanctuaries in the Mekong Delta are also very popular with tourists.

Figure D1. Binh Thuan Beach84

Hot mineral water can be found in many places along the coast, from Quang Ninh to
Ba Ria - Vung Tau. This is a foundation for the development of health and relax tourism.

In addition to natural resources, there are many cultural and heritage resources
(nature, culture) that have special significance for the development of marine - coastal
tourism. Most of Viet Nam's World Heritage Sites are located along the coast, of which
the most significant ones are Ha Long Bay (Quang Ninh Province), Cat Ba Islands (Hai
Phong City), Hue Ancient Capital, Hoi An Ancient Town and My Son Sanctuary (Quang
Nam).

About one third of Viet Nam cultural relics are located along the coast, the highest
density of relics are in the North from Quang Ninh to Ha Tinh province (59% of whole
region), followed by the next segment from Quang Binh to Quang Nam (19%).
Historical relics account for about 50% of total cultural relics, followed by architectural
relics (23%).

The coastal fishing villages on the island are also very interesting to tourists, the place
where many different sea festivals take place are the foundation of typical "sea
culture" seen in Viet Nam. The handicraft village is also an attraction for sea-coastal
tourists.

84
Source: : https://Vietnamtourism.gov.vn/index.php/printer/21826

153
In general, tourism resources along the coastline of Viet Nam are copious, diverse and
valuable which could be developed for sightseeing, ecotourism, relaxation, sports and
culture tourism.

The distinction is relatively clear by geography: in the North there is a high


concentration of cultural relics and landscape (e.g. Ha Long bay), in the Central area
there are nice beaches and world heritage sites, in the South are mangroves and
wetland ecosystems. This is very important to develop a variety of unique and regional
tourism products.

Tourism products can be divided into five main groups to assess the attractiveness of
tourism resources of the coastal areas/provinces as follows:

- Sun and beach, water sport and diving: this group refers to tourism activities directly
related with the ocean.

- Sightseeing and relaxation: sightseeing can happen at the sea or in land, the same is
with relax (resorts)

- Cruise ships: this is fast growing and typical marine tourism product. Although not all
oceanic destinations could develop cruise tourism, it would bring big revenue to cruise
destinations with land services, visa fee, land tours, food & beverages, souvenirs and
personal spending of tourists.

- Heritage tourism: this includes visiting cultural relics, war nostalgia, festival, craft
villages etc. this is related with tangible and intangible tourism resources.

- MICE (Meeting, Incentives, Conferences and Exhibitions) tourism: this is a distinctive


type of tourism, and would be in a separate group.

The following table introduces the assessment of tourism business within each
province in the coastal area. In this table, the maximum score for each item is five,
making the maximum total up to 25. The weight is closer to 1.00, the bigger is tourism
development potential of the province is.

Table D1. Assessment of importance of tourism products of coastal provinces


Sun and Significance
Sightseeing, Heritage
beach, sport Cruise MICE Total of tourism
relax tourism
and diving sector

1. Quảng Ninh 3 5 4 2 3 17 0.68

2. Hải Phòng 3 4 1 1 4 13 0.52

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Sun and Significance
Sightseeing, Heritage
beach, sport Cruise MICE Total of tourism
relax tourism
and diving sector

3. Thái Bình 0 0 0 2 1 3 0.12

4. Nam Định 0 0 0 2 1 3 0.12

5. Ninh Bình 0 5 0 4 3 12 0.48

6. Thanh Hóa 5 4 0 3 2 14 0.56

7. Nghệ An 5 4 0 3 2 14 0.56

8. Hà Tĩnh 3 3 0 1 1 8 0.32

9. Quảng Bình 4 5 0 2 2 13 0.52

10. Quảng Trị 3 4 0 4 1 12 0.48

11. TT-Huế 4 4 3 5 4 20 0.80

12. Đà Nẵng 5 5 5 3 4 22 0.88

13. Quảng Nam 4 4 0 5 3 16 0.64

14. Quảng Ngãi 3 2 0 3 1 9 0.36

15. Bình Định 4 4 0 3 2 13 0.52

16. Phú Yên 5 4 0 2 1 12 0.48

17. Khánh Hòa 5 5 5 3 4 22 0.88

18. Ninh Thuận 4 3 0 2 2 11 0.44

19. Bình Thuận 4 5 0 2 2 13 0.52

20. BR-VT 5 5 3 4 4 21 0.84

21. TP HCM 1 0 4 5 5 15 0.60

22. Tiền Giang 0 0 0 3 3 6 0.24

23. Bến Tre 1 0 0 3 3 7 0.28

24. Trà Vinh 1 0 0 3 2 6 0.24

25. Sóc Trăng 0 0 0 4 1 5 0.20

26. Bạc Liêu 0 1 0 2 1 4 0.16

155
Sun and Significance
Sightseeing, Heritage
beach, sport Cruise MICE Total of tourism
relax tourism
and diving sector

27. Cà Mau 1 3 0 1 0 5 0.20

28. Kiên Giang 5 5 5 3 5 23 0.92

Source: from specialist’s analysis

The last column shows the percentage of the total weights of each group of tourism
activities over the maximum value of 25 points, this value demonstrates the relative
importance of the tourism industry to the tourism potential of each province.

Thus, according to the results of this assessment, some province show that there is
potential for tourism development and tourism to play an important role in socio-
economic development, includes Kien Giang, Da Nang, Khanh Hoa, Ms. Ria - Vung Tau,
Thua Thien - Hue, Quang Ninh, Quang Nam, Hai Phong, Ninh Binh, Quang Binh, Ho Chi
Minh City, Binh Thuan, Thanh Hoa, Nghe An, Binh Dinh, Phu Yen, Ninh Thuan, Quang
Tri, and Quang Ngai.

2. Present status

Tourism is becoming more and more important to Viet Nam’s socio-economic


development, in which marine tourism is the most important among products range
of Viet Nam tourism. In 2019, Viet Nam welcomed 18 million international tourists and
served 85 million domestic tourists. Total revenue from tourism reached 32 billion
USD, making an essential contribution to economic growth of the country, having
made 9.2% of country’ GDP. Although there are diverse resources, distributed
throughout the coastal route, the development level of Viet Nam's sea and coastal
tourism in many regions is very different, depending on market factors, natural
conditions, tourism resources, technical infrastructure, tourist facilities and many
other factors.

* Major tourist development indicators

Assessing the tourism development of all 28 coastal provinces, cities of Viet Nam, one
can observe some characteristics as follows:

- The number of international visitors to coastal provinces increased 13.6%/year, lower


than the national average (14.8%/year) from 10.9 million in 2010 to 35.7 million in
2019;

156
- The number of domestic tourists to 28 provinces has increased from 44.0 million in
2010 to nearly 145.6 million in 2019, enjoying the annual growth rate of 12.3%, which
is higher than annual national average growth of domestic tourist market of 11.8%;

- In 2019, the provinces attracting the most international visitors in the region are Ho
Chi Minh City (8.5 million), Quang Ninh (5.7 million), Quang Nam (4.6 million), Khanh
Hoa ( 3.6 million), Da Nang (3.5 million), while the provinces attracting the most
domestic tourists are Ho Chi Minh City (32.8 million), Ba Ria Vung Tau (15 million),
Thanh Hoa (9.4 million), Quang Ninh (8.3 million), Hai Phong (8.1 million), Kien Giang
(8 million);

- Total revenue from tourism of 28 coastal provinces is over 508 trillion VND (67.3% of
the whole country);

- The total hotel rooms of 28 coastal provinces has increased from 147,725 in 2010 to
398,234 in 2019 and accounts for 66% of the total number of hotel rooms in the
country, mainly high-end hotels of the country are located in this area (except high-
end hotels in Hanoi). Provinces with the largest accommodation system are Khanh Hoa
(49,600 rooms), Ho Chi Minh City (44,200 rooms), Da Nang (40,000), Thanh Hoa
(40,000), Quang Ninh (34,000), Ba Ria - Vung Tau (25,500), Kien Giang (23,000).

- The total number of direct tourism workers in coastal provinces has increased rapidly.

Figure 2.12. Tourism arrivals to provinces in coastal


region
200.000.000

150.000.000

100.000.000

50.000.000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

International Domestic Total

Figure D2. Tourism arrivals to provinces in coastal region

157
Figure 2.13. Hotels rooms in coastal provinces and cities
450.000
400.000
350.000
300.000
250.000
200.000
150.000
100.000
50.000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure D3. Hotels rooms in coastal provinces and cites

- Cruise ship tourism: cruise tourism has been developing fast in the world and the
region. Despite a huge potential, cruise ship tourism development in Viet Nam is far
behind expectation due to infrastructure shortage and diversification of tourism
product offers. Cruise ship tourists account for about 1-1.5% of total international
tourists of Viet Nam, or 2-2.5% of international tourists of coastal region. In 2019, Viet
Nam served about 260,000 cruise visitors.

The figure 3 shows the total number of direct tourism labour in coastal provinces
based on reports of coastal provinces and processed in relation with the total number
of direct tourism labour as introduced in the Tourism Development Strategy to 2030
of Viet Nam (approved by Prime Minister in January 2020).

Figure 2.13. Tourism employment in coastal provinces and cities


800000 738.979
700000 661.540
576.794
600000
501.819
500000
400000 365.188
331.208
295.148
300000 265.742
219,156 233.079
200000
100000
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure D4. Tourism employment in coastal provinces and cites


Source: Viet Nam Tourism Development Strategy to 2030, provincial Tourism Development Strategies

158
* Coastal and marine tourism products

Major tourism activities in coastal provinces include:

- Sun and beach tourism:

+ North and North Central: Thanh Hoa, Nghe An, Hai Phong, Ha Tinh, Quang Binh

+ South Central Coast: Da Nang, Khanh Hoa, Binh Thuan, Binh Dinh, Phu Yen

+ The South: Ba Ria - Vung Tau, Kien Giang

- Sightseeing, heritage: Ho Chi Minh City, Quang Ninh, Quang Binh, Thua Thien - Hue,
Quang Nam, Khanh Hoa, Da Nang, Kien Giang, Ba Ria - Vung Tau, Ca Mau

- Entertainment: Ho Chi Minh City, Hai Phong, Da Nang, Ba Ria - Vung Tau, Kien Giang

- Ecotourism: Hai Phong, Quang Ninh, Quang Nam, Khanh Hoa, Kien Giang, Ba Ria -
Vung Tau (Con Dao), Ca Mau

- MICE Tourism: Ho Chi Minh City, Da Nang, Quang Ninh, Hai Phong, Ba Ria - Vung Tau,
Kien Giang, Khanh Hoa

* The tourist market in the coastal areas

- 10 out of 28 provinces and cities welcomed a total of over seven million tourists in
2019, with the highest numbers being Ho Chi Minh City (41.3 million) and Ba Ria - Vung
Tau (15.5 million arrivals).

- There are seven provinces with high proportion of international tourist market over
40%, of which Quang Nam and Khanh Hoa especially have high proportion of
international tourist market over 50%.

- Provinces with the lowest proportion of international visitors are those in the north
of Hai Van pass, whose main tourism product is sun and beach (main tourism activity
of Quang Ninh is bay sightseeing). Some provinces in the South Central Coast have just
started tourism development (Phu Yen, Binh Dinh, Quang Ngai, Ninh Thuan).

Ba Ria - Vung Tau is the traditional destination of domestic tourists, so the proportion
of the international market is low, the same situation is with most of the Mekong Delta
provinces including Kien Giang. In the Mekong Delta, the two provinces of Tien Giang
and Ben Tre have many international visitors, but the tourism products of these two
provinces are not directly related coastal and marine tourism, their main products are
rural tourism and the Mekong delta exploration.

159
*Total revenue and GDP from coastal and marine tourism

The total revenue from coastal and marine tourism has achieved a high growth rate in
the last decade of 13.32% per year and reached 508,045 billion VND in 2019
(calculation based on nominal price). During the period 2010-2019, the total tourism
revenue from 28 coastal provinces fluctuated between 66-70% of the total tourist
revenue of the country, demonstrating the very important role of this area for Viet
Namese tourism. Only expenditure of cruise visitors on land (service fees, ground
handling, visa, foods and drinks, entrance to attractions etc.) is accounted, expenses
on cruises are excluded.

800.000

700.000

600.000

500.000

400.000 Coastal
Country
300.000

200.000

100.000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure D5. Tourism revenue


Table D2. Total revenue of the Viet Nam tourism sector and coastal & marine
tourism segment
(Unit thousand billion VND, nominal price)

Total
Tourism
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenue

Coastal 59,720 86,522 108,631 196,602 211,105 233,212 277,970 366,645 448,121 508,045

Country 96,000 130,000 160,000 289,840 322,860 355,550 417,270 541,000 637,000 755,000

Source: VNAT and provincial reports

In the tourism sector, currently tourism GDP is calculated by 70% of the total tourism
revenue, so the tourism GDP of the coastal provinces is shown in table below.

160
Table D3. GDP of Viet Nam tourism sector and coastal & marine tourism segment
(Unit thousand billion VND, nominal price)

Tourism
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GDP

Coastal 44,822 60,565 76,042 137,621 147,774 163,248 194,579 256,651 313,684 355,632

Country’ 67,200 91,000 112,000 202,888 226,002 248,885 292,089 378,700 445,900 528,500

Source: Calculated from VNAT reports, provincial reports and consultant estimation

Table D4. Economic performance of tourism sector


Tourism
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GDP

Nominal Price

Country’ 67,200 91,000 112,000 202,888 226,002 248,885 292,089 378,700 445,900 528,500

% GDP 3.1% 3.27% 3.45% 5.64% 5.74% 5.91% 6.48% 7.55% 8.03% 9.2%

Coastal 44,822 60,565 76,042 137,621 147,774 163,248 194,579 256,651 313,684 355,632

% GDP 2.18% 2.29% 2.42% 3.94% 4.02% 4.14% 4.54% 5.29% 5.62% 6.1%

Pure marine 23,253 31,421 39,449 71,396 76,663 84,691 100,945 133,148 162,736 184,497

Real Price

Country’ 67,200 75,048 83,261 143,990 154,721 170,710 198,153 246,799 281,051 327,247

Coastal 44,822 49,948 56,035 96,905 104,127 111,972 133,357 166,096 189,147 220,207

Pure marine 23,253 25,192 29,070 50,272 54,019 58,089 69,183 86,167 98,126 114,239

Table D5. Average Annual GDP growth rate of tourism sector of the country, coastal
provinces and pure marine tourism

Average GDP Annual Growth Period


Rate (real price 2010) of: 2010-2015 2015-2019 2010-2019

Whole Tourism sector 31.51% 24.22% 20.21%

Coastal Provinces 30.88% 25.29% 20.38%

Pure marine tourism of Coastal


30.88% 3.48% 12.05%
provinces

161
The estimation result shows that while the growth rate of the Tourism GDP of coastal
provinces has kept similar pace as the one of the whole country's tourism industry, the
growth rate of pure marine tourism GDP has dropped in the second half of last decade.
That proved that the tourism product range has been diversified by the fact that pure
marine tourism activities are growing much more slowly compared to country as a
whole, the growth of tourism sector GDP in coastal provinces is still higher that the
country's average.

* Coastal tourism GNI and GNI per employee

Prior to 2000, FDI played a significant role in tourism development investment,


however the competition from domestic investors has risen strongly since then.
Access to land in tourism potential areas has been among most crucial constraints of
this situation, alongside with the very fast growing capacity of domestic investors.
During the first decade of 21 century, some mega FDI projects in tourism sector were
licensed but they could not be implemented. Since 2010, total capital of licensed FDI
projects in tourism sector (hotel and restaurants only) vary from 300-500 million USD
per year, accounting for about 20% of total investment in hotel and restaurants sector.
However, it has become relatively common for Viet Namese investors to buy shares in
foreign tourist hotels in the past and there is not enough information about these
transactions. It can be a real challenge to accurately calculate the foreign ownership
share of tourism businesses. Considering that hotels and restaurants generate around
50-55% of tourism revenue, it can be said that the GNI in this sector is around 92% of
the GDP. This matches with the statement of the Prime Minister before National
Assembly in early 2020, when asked about GNI, he said: the difference between GNI
and GDP in Viet Nam is not big, usually under 10%. In 2005, the contribution of foreign
investment sector to national GDP is only 1.84%, it rose to 3.8% in 2010 and reached
7% in 2018.

Taking into account the above facts, GNI in coastal and marine tourism could be
estimated at about 95% of its GDP (2019). In 2015 tourism GNI could be at 95.5% GDP
and 96% GDP in 2010.

Table D6. GNI of country' tourism, coastal provinces and pure marine tourism sector
Tourism
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GNI

Nominal Price

Country’ 65,856 89,180 109,760 196,801 219,222 241,418 280,405 363,552 423,605 502,075

162
Coastal 43,926 59,354 74,521 133,492 143,341 158,351 186,796 246,385 298,000 337,850

Pure marine 22,788 43,988 38,660 69,254 74,363 117,357 96,907 127,822 154,599 175,272

Real Price

Country’ 65,856 73,547 81,596 139,670 150,079 165,589 190,227 236,927 266,998 310,885

Coastal 43,926 48,949 54,914 93,998 101,003 108,613 128,023 159,452 179,690 209,197

Pure marine 22,788 36,277 28,489 48,764 52,398 80,495 66,416 82,720 93,220 108,527

* Tourism employment and training

According to reports from 28 coastal provinces and cities, in 2019 the total number of
tourism employment in this area is 739,000 persons (direct tourism labour) while the
total number of direct tourism labour in the whole country is 1,026,500 persons, or
72% of national direct tourism labour are employed in the coastal provinces and cities.
This figure is taken from the National Tourism development Strategy of Viet Nam to
2030, which was approved by Prime Minister in January 2020. However, in some
occasions, VNAT has announced another number of tourism-related direct labour,
which is about 1.3-1.4 million. In this case, the total number of tourism labour in
coastal provinces would be about one million. Tourism in HCMC engages the largest
number of employees with about 154,000, followed by Khanh Hoa and Quang Ninh –
at 130,000, and Da Nang at 51,000.

In the accommodation industry, globally there is an average of one employee for each
hotel room. One job in the core tourism industry creates about one and a half
additional jobs in the tourism-related economy. Furthermore, there are three workers
indirectly dependent on each person working in hotels, such as travel agency staff,
guides, taxi and bus drivers, food and beverage suppliers, laundry workers, textile
workers, gardeners, shop staff for souvenirs and others, as well as airport employees
(UN-WTO and ILO: Measuring Employment in the Tourism Industries - 2014, page 17).
In this study, assuming that there is one and a half additional jobs in the tourism-
related economy created by one job in core tourism industry (one job in core industry
equal to one hotel room), and 40% of working time of those who are "indirectly
dependent on each person working in hotels" are paid by tourism, we can roughly
calculate the total number of full time posts paid by tourism (hereinafter called
Equivalent tourism labour). This result will be subsequently used to estimate the GNI
per employee in tourism sector.

Division of GNI by number of Equivalent tourism labour will show the GNI per capita
(per equivalent tourism employee). The table below shows the GNI per equivalent
employee, calculated in nominal price and real price.
163
Table D7. GNI per equivalent employee in the last decade
Unit: Million VND

GNI per
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
employee

Nominal
80 105 121 183 181 184 187 211 232 229
price

Real price 80 87 89 129 128 126 128 137 140 142

Source: consultant estimation (Hoang Dao Bao Cam)

* Marine tourism affects society and marine environment

- Development of marine tourism contributes to promoting the development of many


other economic sectors: Marine tourism is an interdisciplinary economic sector, so the
development of marine tourism will lead to the development of many industries. First
of all, the development of tourist resorts, attractions, and entertainment will create
an increasingly large demand for the construction industry. The demand for tourist
transportation will promote the development of the transportation sector, including
the shipbuilding industry; building and improving airports and harbours. During
operation, the need for travel and excursions; accommodation; entertainment;
shopping of visitors will be the driving force to promote the development of the
transport, aquaculture, production of handicrafts, and agriculture. Marine tourism
development would also boost economic development of neighbouring regions.

- Developing marine tourism creates job opportunities: tourism, including marine


tourism is labour intensive. The development of marine tourism has a very important
role in create jobs and improving livelihood of local communities.

3. Interaction with SDGs

Table D8. Tourism & SDGs


SDGs Score Comments

SDG 1 +2 Tourism is a labor-intensive industry, so it plays an important role in hunger


eradication and poverty alleviation in many coastal areas of Viet Nam.

SDG 2 +2 Tourism is a labor-intensive industry, so it plays an important role in hunger


eradication and poverty alleviation in many coastal areas of Viet Nam.

SDG 3 +2 Marine tourism improves the livelihoods of local communities, enabling them
with conditions to take better care of their health and their family health.

164
SDG 4 +2 Sea tourism promotes local youth to participate in learning because they can
understand the clear differences that education and knowledge could bring.

SDG 5 +2 As one of the sectors with the highest share of women employed and
entrepreneurs, tourism can be an efficient tool for development of women,
raising their roles and significance in families and communities.

SDG 6 +2 Tourist development also would probably improve water supply and drainage
infrastructure, increase sanitation standards, and help improve the living
conditions of local people.

SDG 7 +1 Local people can learn from innovative affordable and clean energy solutions
in ecotourism establishment.

SDG 8 +3 Tourism has contributed 9.2% of national GDP and coastal and marine tourism
is accounted 2/3 of entire tourism sector, is very direct tool for decent work
and economic growth.

SDG 9 +3 Improve infrastructures for coastal regions and islands such as tourism ports,
airports, roads and bridges, drainage, power supply, telecommunication, etc.
where there are tourism development potentials.

SDG 10 +2 Marine tourism contributes to narrowing the gap and promoting development
in remote, isolated and underdeveloped areas, reducing inequality, and thus is
an important contributor to reduce inequity

SDG 11 +3 Good contribution to sustainable urban development and coastal communities

SDG 12 +1 Well-mannered tourists with ever growing awareness on sustainability would


encourage local people and suppliers in responsible consumption and
production.

SDG 13 -2 Tourism both contributes to and is affected by climate change.

SDG 14 +3 Coastal and maritime tourism, tourism’s biggest segments, rely on healthy
marine ecosystems. So preserving and developing life below water is
completely in line with the future of coastal and marine tourism.

SDG 15 +2 Natural landscapes, natural reserves, rich biodiversity, and natural heritage
sites are often main objectives of tourists. Sustainable tourism can play a major
role, not only in conserving and preserving environment, nature and society.

SDG 16 +2 Contributing to enhancing cultural exchange and mutual understanding.

SDG 17 +1 Strengthen cooperation with stakeholders to contribute to sustainable


development together

* Coastal and Marine Tourism development and other marine economic sectors

165
Tourism is a general economic sector, which has intensive interactions with many
other sectors. Critical analysis of interactions between tourism and other blue
economy sectors are described in the table below.

Table D9. Correlation between Coastal and Marine tourism and other marine
economic sectors
Interactive Interaction Impacts Remarks
sectors type

Marine Social 0/+ No serious conflict detected except some possible


Renewable disruption to sailing routes from areas with wind
Energy turbines, but it's avoidable

Windfarm near coastline could be tourism attraction (i.e.


Bac Lieu wind farm)

Oil and gas: Social and 0 / + Oil spills may affect beaches and sea water
economical
Oil rigs Conflict in landuse between oil industry development
(refineries, oil ports etc.) and tourism, but it can be
Refineries solved through appropriate planning
and port
Oil industry would be a high spending market for tourism
services

Fisheries and Social and + / - Tourist consumption benefits greatly fisheries and
Aquaculture economical aquaculture

Fishing would be a attractive tourism products

Landuse conflict between tourism development and


aquaculture farms, traditional landing site of the fishing
community. Aquaculture farming is also source for
pollution if not properly managed

Maritime Social, 0/- Landuse conflict between tourism development and port
Economic development
and
Environment Maritime route may disturb sailing routes and cruise
lines if not sufficiently planned

Biodiversity Social and - / + Biodiversity is an important tourism resources


environment
Tourists may damage sealife if not well managed

Wastes from tourism activities could create pollution


and affect negatively the biodiversity

166
Appendix E. Maritime sector
1. Resources

The East Sea is one of the busiest international maritime trade routes in the world,
connecting the Indian Ocean and the Pacific Ocean. The development of many
economies in East Asia is closely related to this sea route. The international shipping
route through the East Sea is considered to be the second busiest in the world with a
trade value of about 5.3 trillion USD annually. The volume of goods exported through
the East Sea by Southeast Asian countries is 55%, the newly industrialized countries
are 26%, and Australia is 40%. In this region, there are major ports such as Singapore
- the largest seaport in Southeast Asia and the second largest in the world in terms of
container ports. If a crisis occurs in this sea area, and ships have to follow new routes
or circumnavigate South Australia, the freight charges will even increase fivefold and
become no longer competitive in the world market.

Figure E1. Cat Lai Port85

Viet Nam is a country with a long-standing marine economy. With a coastline of more
than 3,000 km, the maritime and coastal transportation systems are the lifeblood of
the country with about 90% of the volume of import and export goods going by border
and 100% of the goods going across the East Sea.

Viet Nam's maritime industry rapidly developed in the 1990s when the economy and
trade began to open up. In 1990, the National Assembly passed the Viet Nam Maritime

85
Source: https://vietship.net/van-chuyen-hang-hoa-tu-cang-cat-laihcm-di-cang-hai-phong.html/

167
Code, the first specialized code at the time, which demonstrated the state
management way of thoughts by legal tools for the shipping industry and created a
legal foundation for business activities within the industry. The leap forward
development of shipping in the years following the post reform years - a typical figure
shown by the volume of containers moving through Viet Namese seaports has
increased at a rate of more than 1,500% in the period 2001 – 2019. This shows that
new, urgent and drastic requirements for the organization of the seaport system along
the length of the country are needed.

2. Present status

The maritime economy includes three main sectors: shipping, port construction and
services, and ship building and repair.

(1) Marine Transport

Ocean transport is one of the five main modes of transport in Viet Nam including road,
rail, inland waterway, sea and air transport. While sea passenger transport accounts
for a negligible proportion, sea freight transport accounts for more than 90% of the
country's import and export freight volume and accounts for about 20-24% of the total
volume of goods transported by all modes. Developing and exploiting effective sea
transport brings competitive advantages for import and export goods. This shows that
maritime transportation plays a very important role in the economy.

Ocean transport has advantages over other modes of transport such as the ability to
transport large volumes, long transport distances with low costs, safety but slow
transport speed, and relatively complex exploitation organization. It is necessary to
have a synchronism between ships and technology of loading and unloading at
seaports combined with many other types of logistics services to be effective,
especially container transport. Sea transportation mainly handles goods with large
volumes such as containers (accounting for about 35%-40%), crude oil, petrol, gas,
coal, ores, cement, iron and steel, grains,... Currently, Viet Nam has established 32
main shipping routes, of which 25 are international and 7 domestic.

In 2019, there were nearly 493 million tons of goods transported by sea, accounting
for about 23.2% of the total transport volume of all modes and accounting for 95.6%
of the volume of imported and exported goods (corresponding to about approx. 65%
of the value of imported and exported goods). The total volume of goods through the
seaport in 2019 is 2.5 times higher than that of 2011, the average growth in the period
2011 - 2019 is 9.18%/year, of which container cargo increases by 3.1 times, the
average growth 13.4%/year.
168
Table E1. Transport volume and market share by modes in 2019
International Transport
Total volumes Transport only
Transport Modes transported market share Volume Market
(Million tons) (%) (Million share
tons) (%)
Road 1,340.53 63.04 13.78 3.61
Rail 5.10 0.24 0.84 0.22
Inland Waterway 286.88 13.49 1.06 0.28
Maritime transport 492.75 23.17 364.58 95.62
Air transport 1.27 0.06 1.01 0.26
Total 2,126.53 100 381.27

Looking at the economy as a whole, although the most important role of shipping is to
ensure the safe and efficient transport of goods, maritime transport itself is also a very
competitive business because it brings huge revenue from freight, which can be up to
tens of billions of dollars per year. However, up to now, this revenue has mainly fallen
into the hands of foreign enterprises with about 90% of Viet Nam's international
shipping volume due to foreign shipping lines winning the right to transport while
domestic enterprises are only responsible for transportation equivalent to about 10%
due to low capacity and competitiveness.

The fleet of shipping vessels owned and operated by Viet Namese enterprises (also
known as the national flag fleet, referred to as the national fleet for short) has more
than 1,000 units, but mainly small, old ships, ships carrying general cargo while the
international transport market needs specialized, modern, large tonnage ships that
require large investment and high level of exploitation such as container ships, oil
tankers, and LPG ships. The main reason is that domestic enterprises do not have
sufficient financial capacity and exploitation capacity is also very limited. Therefore, at
the present, ships of Viet Namese enterprises only transport goods on domestic routes
and international transport on close routes; with a very low volume of container
transport.

Currently, there are about 40 foreign shipping lines in operation, including some of the
biggest names in the world such as Maek lines, NYK line, CMA CGM, MSC. The world
shipping lines with large tonnage fleets currently with modern technology, strong
financial potential along with a global logistics network and the establishment of
alliance groups, all Viet Namese shipping lines are in a state of unequal competition.
Up to now, about 90% of the international transport market share (import and export
freight) of Viet Nam is carried out by foreign shipping lines.

169
Figure E2. Container transport ships of domestic enterprises

Meanwhile, the number of shipowner enterprises in Viet Nam is quite large, but mainly
consist of small-scale enterprises with weak financial capacity, so their
competitiveness is still very limited. Among nearly 600 ship owners, only 33 ship
owners own fleets with a total tonnage of over 10,000 DWT, the rest are owners of
small ships belonging to small-scale private economic sectors, and many shipowners
only manage 01- 02 ships. The organization and management of service provision of
Viet Namese enterprises are still weak, there is a lack of linkage between shipping lines
and shippers. In addition, with the characteristics of the international shipping market,
which is often heavily affected by regional and world economic crises, wars, epidemics,
oil prices... Viet Namese shipowner enterprises are very low, their business is not
efficient, they suffer serious losses and many businesses go bankrupt

(2) Seaport operation

Due to the trend of opening up and global integration, the volume of goods through
the seaport system has a deep correlation with trade growth and economic growth.
Over the past 20 years, Viet Nam's seaport system has made a remarkable
development in both quality and quantity, basically meeting the development goals
according to the planning of each period, creating a driving force for the development
of economic and industrial zones and coastal urban areas, ensuring the clearance of
import and export goods and freight transport by sea between regions in the country,
meeting the requirements of socio-economic development and economic integration.
international security and national defence.

170
By the end of 2019, the nationwide seaport system had 588 wharves of all kinds with
a total length of 96,275m, 4 times higher than in 2000; The total volume of goods
throughput reached 664.6 million tons, 8 times higher than in 2000; the average
growth of goods through the port in the period 2000 - 2019 is about 10 - 12%/year,
the average growth of container cargo is 13.4%/year.

According to the geographical area, Viet Nam's seaport system is classified into groups
of seaports in accordance with economic zoning. From 2000 to 2020, the seaport
system is divided into 6 groups, including the Northern seaport group from Quang Ninh
to Ninh Binh; Group of North Central Seaports from Thanh Hoa to Ha Tinh; Group of
Central Central Coast seaports from Quang Binh to Quang Ngai; Group of seaports in
the South Central Coast from Binh Dinh to Binh Thuan; The group of seaports in the
Southeast region includes Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria-Vung
Tau; Group of seaports in the Mekong Delta.

From 2021 according to the master plan on the seaport system to 2030 approved by
the Prime Minister, Viet Nam's seaport system is divided into 5 groups, according to
which there is no longer the Central Seaport group, but the ports in this group.
included in the North Central Coast group and the South Central Coast group.

According to functions, Viet Nam's seaport system is divided into international


gateway ports, national general ports, local general ports and specialized ports.
Modern general, container, and specialized wharfs have been formed, especially
international gateway ports in Cai Mep - Thi Vai area (Ba Ria - Vung Tau) and Lach
Huyen port (Hai Phong). ) be competitive enough in seaport operations with other
countries in the region, able to attract and receive large container ships, reduce the
rate of transshipment abroad, and reduce logistics costs for import and export goods.
of Viet Nam. Most of the general and regional ports, including Quang Ninh, Hai Phong,
Nghi Son, Ha Tinh, Thua Thien - Hue, Da Nang, Quang Ngai, Quy Nhon, Khanh Hoa, Ba
Ria - Vung Tau, City. Ho Chi Minh City, Dong Nai, Long An have been newly invested
and renovated, allowing to receive ships of up to 30,000 DWT and larger in line with
the development trend of the world fleet. At Hon Gai (Quang Ninh) and Phu Quoc (Kien
Giang) have been invested to build specialized passenger ports, when these ports are
completed, they will allow to receive international passenger ships with a tonnage of
up to 225,000 GT to meet the needs of international tourist passenger transportation
by sea. This is an important basis, affirming the capacity of Viet Nam's seaports,
creating a premise for shipping lines to use Viet Namese seaports as a link in the global
shipping chain.

171
Table E2. A summary of current capacity of Viet Nam's seaport system
Group Group Group Group Group Group
No. Parameter Unit Total
1 2 3 4 5 6

Number of
1 Harbor 67 20 25 28 102 36 278
ports

Number of
2 Wharves 128 55 52 61 211 68 575
berths

General,
a Wharves 76 23 27 30 89 39 284
container

Berths
b Specialized 52 32 25 31 122 29 291
bridge

Length m 19,964 9,727 9,531 10,562 37,101 7,048 93,933

Port Million
3 throughput 184.0 75.6 46.8 34.3 301.7 22.3 664.6
in 2019 Tons/year

Proportion
of cargo
4 through % 27.7% 11.4% 7.0% 5.2% 45.4% 3.4% 100%
ports in the
system

Viet Nam's container port operation is concentrated mainly in two main centers, Ho
Chi Minh City - Vung Tau and Hai Phong - Quang Ninh, accounting for 70% and 25% of
the total container volume of the country, respectively. The compound growth rate
from 2000 to 2019 is more than 15%.

Along with the development of seaports, there are also many related maritime
services and logistics such as inland transportation services, logistics services,
forwarding services, etc. According to statistics of a number of related projects
implemented there are about 1,300 enterprises in the whole country engaged in
providing maritime and shipping services, 70% of which are based in Ho Chi Minh City.
Many large shipping companies in the world have joined the Viet Namese shipping
market. Most of Viet Nam's shipping businesses operate at level 1 (self-service
shipping) and level 2 (providing second-party shipping services).

172
In general, Viet Nam's transportation service providers operate on a small scale, with
a low workforce, of which more than 90% of enterprises have registered capital of less
than 10 billion VND, 70% of which have no registered capital assets, only 16% of
enterprises invest in equipment and means of transport, 4% of enterprises invest in
warehousing, and the rest must outsource (data from the Ministry of Industry and
Trade announced at the Logistics Forum in 2018). Domestic enterprises only meet a
quarter of the market demand and are stopping at providing services for some initial
stages (packaging, warehouse leasing, customs services, etc.) for closed transport
service chain. There are only about 30 major shipping service providers (in terms of
revenue size and employers), such as: Saigon Newport Corporation, Gemadept,
Transimex, Sotrans, U&I Logistics , MP logistics, and Bac Ky Logistics. Some foreign
shipping companies are operating effectively and occupying a large market share in
Viet Nam such as: DHL, Nippon Express, Yusen Logistics.

(3) Ship building and repair industry

Viet Nam's shipbuilding industry began to receive strong investments in 2002. From
the initial capacity of building only 3,000DWT ships, up to now, Viet Nam's shipbuilding
industry has built most of the synthetic ships, bulk carriers, oil tankers, car carriers. To
build a number of supporting industrial establishments and to support the shipbuilding
industry and technology design for several grams of bulk carriers it is necessary to form
infrastructure and labor force nationwide. Initially, an important technical and
material base of the shipbuilding industry has been formed with a number of active
shipyards whose ship products are internationally accepted for quality.

Viet Nam currently has 97 shipyards (from 1,000 DWT or more) belonging to SBIC,
Vinalines, PVN,and a number of military enterprises and private enterprises. There are
92 factories in the North, 13 factories in the Central region and 15 factories in the
South. The total design capacity of newly built factories is 2.6 million DWT/year, but
the actual capacity is only 0.8 million DWT/year (31%) equivalent to 150-200
ships/year. The export capacity has increased from 0.5 to 0.6 million DWT, but has
slow delivery and low localization rate. Currently, about 42-46% of Viet Nam's fleet are
repaired at foreign shipyards.

173
Figure E3. New product of Viet Nam's shipbuilding industry

In addition to Viet Nam Shipbuilding Industry Corporation (Vinashin), established in


2006, which is now the Shipbuilding Industry Corporation (SBIC), plays a pivotal role in
Viet Nam's shipbuilding industry also has shipbuilding facilities. Owned by Viet Nam
National Shipping Lines Corporation, Viet Nam National Oil and Gas Group and a
number of other State-owned corporations and corporations has shipbuilding facilities
under the management of the Ministry of National Defence, local enterprises public
and private, and foreign-invested enterprises.

However, after going through a very hot development period, Viet Nam's shipping
industry fell into a spiral of crisis after the breakup of Vinashin. After a long period of
crisis, up to now, Viet Nam's shipbuilding industry is showing signs of recovery, but
there are still many difficulties and challenges as follows:

- Fierce competition in the world shipbuilding market when shipbuilding demand is


declining, prices in all ship segments are relatively low and shipbuilders in general are
competing fiercely in all areas such as strategy on types of ships, prices, financial
issues, services...

- Construction capacity of Viet Nam's shipbuilding industry currently only reaches 30-
40% of design capacity. The development speed of supporting industries is still slow,
investment is scattered, and the target of localization rate has not been achieved. In
terms of design, the technical design stage currently only meets the requirements for
small and popular ships. Viet Nam does not have an international standard model test
tank to develop new designs, all technical designs of export ships are still purchased
from abroad.

174
- The restructuring process of Vinashin- SBIC has not given the expected results: In
2013, the Prime Minister approved the project to continue restructuring Vinashin.
Accordingly, SBIC was established with the model of a parent company - a corporation,
with 8 member units being the core shipyards of the former Vinashin Group. However,
because the consequences from the Vinashin era were too great, due to both
unfavorable objective factors, in which a number of related mechanisms and policies
have not been thoroughly implemented, the restructuring has not achieved the set
out target.

(4) Identifying the contribution of maritime sector

Compared to the remaining marine economic sectors (renewable energy, fishing and
aquaculture, tourism, oil and gas), the maritime industry has a special element of
shipping services and port services. The sea has been considered as an input cost for
the production of products of other industries, so the calculation of GDP and GNI
values of the maritime industry here should only be understood as a way of estimating
Economic Output and Revenue. The industry's income is comparable to that of other
industries. In fact, determining the proportion of maritime industry's contribution to
the GDP, and national GNI will have to be determined by different methods and
formulas.

Based on the calculation principle of this method, the GDP of the shipping industry can
be calculated as follows:

GDP (Maritime) = GO (Shipping) + GO (Port) + GO (Shipbuilding)

= VA(shipping) + VA (Port) + VA (Shipbuilding)

+ VA (shipping) is calculated by the total shipping revenue from the freight collected
from the total volume of import and export sea freight and inland by year (according
to the average international freight rates for different types of goods: container, dry
cargo, liquid cargo from Viet Nam to the markets of Europe, America, Asia, Africa and
domestic freight) minus total costs.

+ ∑ VA (Port) is calculated as the total revenue from seaport operations in Viet Nam
including revenue from loading and unloading activities and warehousing at the port
for goods transported by sea through the port by year (to be determined by the
average freight rate for each container, dry cargo, and liquid cargo to international and
domestic markets) minus the total cost.

175
+ ∑ VA (Shipbuilding) is calculated as total revenue from shipbuilding and repairing
activities in Viet Nam minus production costs.

Because the collection of aggregated data on production costs of enterprises in the


fields of shipping, seaports and shipbuilding over the period 2010 - 2109 is beyond the
capacity in the current situation, ∑VA (shipping), ∑VA (Port) and ∑VA (Shipbuilding) are
calculated by expert method and determined by the average profit value of
enterprises in this field.

• ∑ VA(shipping) = 8% of international shipping revenue + 6% of domestic shipping


revenue.

• VA (Port) = 17% of port revenue

• ∑ VA (Shipbuilding) = 0 because for many years this industry has suffered a loss, not
bringing added value.

Calculation results of GDP, GNI of Viet Nam's maritime industry are shown in the table
below with comparison with GDP and national GNI.

Table E3. The maritime sector's share of nominal GDP/GNI in national GDP/GNI
Maritime Maritime
Maritime GNI transport transport
National
Year transport Maritime National GNI percentage in percentage in
GDP
GDP transport national GDP national GDP
(%) (%)

2010 20,575 11,857 2,157,830 2,075,087 0.95% 0.57%

2011 22,364 12,481 2,779,880 2,660,076 0.80% 0.47%

2012 24,309 13,138 3,245,420 3,115,227 0.75% 0.42%

2013 26,423 13,829 3,584,260 3,430,668 0.74% 0.40%

2014 28,720 14,557 3,937,860 3,750,823 0.73% 0.39%

2015 31,218 15,323 4,192,860 3,977,609 0.74% 0.39%

2016 33,932 16,130 4,502,730 4,314,321 0.75% 0.37%

2017 36,883 16,979 5,005,980 4,651,399 0.74% 0.37%

2018 40,090 17,872 5,542,330 5,198,567 0.72% 0.34%

2019 43,576 18,813 6,037,350 5,686,985 0.72% 0.33%

176
Source: maritime team

The above results show:

- The nominal GDP of the maritime industry increased from VND 20,575 billion in 2010
to VND 43,576 billion in 2019. The average increase was about 8.7%/year during the
whole period; equivalent to about 0.7-1.0% of Viet Nam's nominal GDP.

- GNI of the maritime industry increased from 11,857 billion VND in 2010 to 18,813
billion VND in 2019. The average growth rate was about 5.3%/year for the whole
period; equivalent to about 0.3-0.5% of GNI of Viet Nam.

Table E4. Compare labor productivity of the maritime industry with the country

Unit: million USD

Maritime GDP Per GNI Per


GDP Per GNI Per
transport capita in capita in
Year capita capita
labour Maritime Maritime
national national
(person) transport transport

2010 94,084 218.69 126.02 41.17 39.59

2011 101,166 221.06 123.37 51.93 49.69

2012 108,780 223.46 120.77 59.17 56.80

2013 116,968 225.89 118.23 64.56 61.79

2014 125,772 228.35 115.74 70.54 67.19

2015 135,239 230.83 113.30 74.89 71.05

2016 145,418 233.34 110.92 79.29 75.97

2017 156,364 235.88 108.58 90.29 83.89

2018 168,133 238.44 106.29 97.97 91.89

2019 180,789 241.03 104.06 105.53 99.41

Source: maritime team

Preliminary calculations on direct human resources in the shipping industry in 2019 is


about 181,000 people with an average growth of about 7.5%/year in the period 2010
- 2019. Labor productivity of the industry in terms of GDP, GNI compares with the
country as follows:

177
- Labor productivity of the maritime industry calculated by GDP is about 241 million
VND/person, about 2.3 times higher than the national average labor productivity.

- Labor productivity of the maritime industry according to GNI is about 104 million
VND/person, about 1.05 times higher than the national average labor productivity.

3. Interaction with SDGs

Preliminary assessment of the correlation between maritime economic development


and SDGs in Viet Nam is as follows.

Table E5. Maritime Development and SDGs


Goal Score Comments

Shipping activities, seaports and shipbuilding industry have certain


contributions to job creation and income for coastal areas and islands.
For example, many coastal localities have had jobs by participating in
SDG 1 +1 seaport operations, operating in the shipbuilding industry and working
in shipyards, working as crew members on ships, since then. have
income, improve the quality of life, eliminate hunger and reduce
poverty.

Maritime contributes a part to the state budget, thus helping the


SDG 2 +1 Government with resources to eliminate hunger and reduce poverty in
remote and disadvantaged areas.

Shipping activities will help increase local revenue, thereby indirectly


contributing to the improvement of health and a good life in the
regions. Emissions from shipping are significant, but only one of many
SDG 3 +1
sources released into the atmosphere and released into the sea.
However, transportation has a limited impact on substance abuse and
traffic accidents globally.

Shipping activities will help increase local revenue, which will indirectly
SDG 4 +1
contribute to quality education.

Shipping is one of the industries with a much higher proportion of male


employees than female employees. The development of maritime
SDG 5 -1
transport without proper attention to gender equality will lead to
deeper gender stereotypes.

SDG 6

Shipping also contributes to the development of clean energy in the


SDG 7 +2 world such as renewable energy solutions - biofuels, hydrogen, solar
and wind power, improved energy efficiency and continued

178
Goal Score Comments

implementation. emission reduction solutions to achieve zero


emissions.

Maritime accounts for over 90% of Viet Nam's import and export goods
(over 60% of value), so it plays a vital role in Viet Nam's economic
growth thanks to the development of valuable and value-added service
SDG 8 +3 industries. high. It is necessary to apply modern, competitive
technology, etc. Furthermore, jobs in ports, on ships and other
maritime-related jobs offer many opportunities for young people of all
skill levels.

Building modern seaport infrastructure and fleets contributes to


creating a synchronous transport system, thereby reducing national
logistics costs, increasing trade capacity and competitiveness of foreign
SDG 9 +3
trade goods, promoting develop sea tourism.

Maritime has a limited direct impact on inequality between countries.


Coastal States are responsible for organizing search and rescue
SDG 10 +1 operations.

Maritime has a limited direct impact on inequality between countries.


Coastal States are responsible for organizing search and rescue
SDG 11 +2 operations.

Maritime contributes to improving market access and promoting the


export of Viet Nam's key export products in a sustainable way (reducing
logistics costs); Contributing to strengthening the distribution system
SDG 12 +3
and developing the national product supply chain.

World shipping annually emits about 940 million tons of CO2 and
accounts for about 2.5% of total global greenhouse gas (GHG)
SDG 13 -2 emissions. Switching ship-utilized energy from fossil fuels to low-
carbon alternatives, including renewables in the future, will contribute
to reducing greenhouse gas emissions.

Maritime activities may pose some risks to the marine environment


SDG 14 -2 such as large number of vehicles or oil and chemical spills, maritime
accidents. The shipping industry contributes 20% of marine pollution.

179
Goal Score Comments

Transport is the single largest contributor to the transfer of alien


species. Emissions into the atmosphere contribute to the acidification
and eutrophication of the oceans. Maritime operations have been
minimized discharge of ballast water, chemicals, waste, oil and
wastewater, reduced emissions into the atmosphere during operations
as well as introduced anti-biological pollution regulations to prevent
the transfer of alien species, minimizing disturbance to marine life, by
minimizing acoustic noise and by identifying appropriate operational
measures in the most environmentally sensitive areas.

Maritime operations have released ballast water. Exotic species


introduced by ships can affect terrestrial ecosystems.
SDG 15 -1

Maritime operations are the primary transport of goods, which may


include illegal goods. It works around the world to reduce opportunities
SDG 16 +1 for corruption, bribery and illicit flows by enhancing transparency
about goods, destinations, financial transactions and the use of agents.
agent and mediator.

Maritime is one of the important topics in bilateral and multilateral


negotiations within the framework of international trade
organizations.

Maritime contributes to improving the value and competitiveness of


Viet Nam's foreign trade goods.
SDG 17 +3

Maritime and seaports are very suitable to promote public-private


partnerships, especially in the field of investment, construction and
operation of seaports. Shipping can make an important contribution to
the partnership, and there is a dedicated international organization
(IMO) to develop international policies and regulations.

180
Appendix F. Environment, Biodiversity & Ecosystem Services

Figure F1. Con Dao flooded area86

This section examines mainly from the perspective of considering the marine
environment and marine ecosystems as the foundation, the basic space on which the
marine economic sectors operate. The development of marine economic sectors from
time immemorial considered marine resources as the object of exploitation. Due to
the small scale of exploitation and the undeveloped tools and techniques of
exploitation, the degree of damage to the marine environment and marine
ecosystems is almost negligible. Today, as the scale of exploitation of marine resources
increases, leading to increased competition, while in addition to increasingly modern
technology and mining tools, destructive fishing tools also increase, leading to the
increased risk of encroachment on the marine environment and marine ecosystems.
Thus, protecting the marine environment and marine ecosystems is very urgent, both
on a global scale as well as on a national and local scale. The protection of the marine
environment and marine ecosystems today itself has become an integrated, multi-
sectoral and growing economic sector. However, this report only analyzes some
activities related to the protection of the marine environment and marine ecosystems
as a basis for the development of other economic sectors.

1. Resources

86
Source: https://kinhtemoitruong.vn/dat-ngap-nuoc-chong-bien-doi-khi-hau-tam-la-chan-bao-ve-bo-
bien-19807.html

181
Viet Nam's sea area is located in the East Sea area with geographical coordinates at
latitude: from 30 to 260 north latitude; longitude: from 1000 to 1210 East longitude;
is one of the largest seas in the world with 90% of its circumference surrounded by
land. There are 9 countries bordering the East Sea: Viet Nam, China, the Philippines,
Indonesia, Brunei, Malaysia, Singapore, Thailand, and Cambodia and one territory is
Taiwan (belonging to China). The East Sea is not only an important strategic area for
countries in the region but also for the entire Asia-Pacific region and the Americas. The
East Sea is also home to important marine natural resources for the life and economic
development of surrounding countries, especially biological, mineral and tourism
resources. The region is under great pressure for environmental protection,
conservation and development of marine ecosystems. In the East Sea, the territorial
sea directly related to Viet Nam's territory has two large bays: the Gulf of Tonkin in the
northwest of the country, about 130,000 square kilometers and the Gulf of Thailand
in the southwest, with an area of about 293,000 square kilometers. The East Sea is the
only sea in the world that connects two oceans - the Indian Ocean and the Pacific
Ocean. The sea of Viet Nam is strongly influenced by the prevailing monsoon regime
in the Northeast and Southeast directions. Therefore, the Viet Namese sea bears many
risks of natural disasters and marine environmental incidents of the East Sea,
especially from oil spills and waste oils of unknown origin brought into the coast of
Viet Nam.

The quality of Viet Nam's marine environment is relatively good. According to the
report of the Ministry of Natural Resource and Environment (MONRE), as of August &
September 2020, out of more than 70 coastal monitoring points in 16 coastal
provinces, only 2% of points exceed QCVN 10-MT:2015/BTNMT for parameters N-
NH4+ and 11% exceeded QCVN 10-MT:2015/BTNMT for parameters of total mineral
oil and grease87. However, Viet Nam is still facing a deterioration in the quality of the
marine environment due to various reasons such as pressure from population growth,
inefficient use of marine resources, marine activities, etc. uncontrollable marine
economy, and limited management capacity.

Viet Nam's sea is evaluated as having rich biological systems and diverse ecological
landscapes, ranked 16th in the world in terms of diversity of biological resources. Major
marine species and groups such as fish, crustaceans, molluscs, seaweeds, etc. are superior
to or equivalent to neighboring seas. To date, more than 11,000 marine species have been

87
Official Dispatch No. 3987/TCMT-VPTC dated December 10, 2020 on the implementation of
sustainable development goals under Decision 3756/QD-BTNMT

182
identified88 in more than 20 typical ecosystem types, belonging to 5 different marine
biodiversity regions, distributed over 1 million square kilometers in the East Sea89.
(MONRE, 2016).

Biodiversity of marine and island ecosystems is the foundation for the sustainable
development of a number of marine economic sectors based on natural conditions and
marine natural resources such as tourism, fisheries, and marine medicine. This is also the
basis for UNESCO to recognize Viet Nam as having many world cultural and natural
heritages such as Ha Long Bay, 06 world biosphere reserves90, 04 wetland conservation
areas91; established 07 national parks92 and 16 marine protected areas93. Preliminary
surveys over the past time have shown that in Viet Nam's seas, there are about 35 types
of minerals with exploitation reserves ranging from small to large, belonging to the
following groups: fuel (notably oil and gas with reserves of approx. 3-4 billion tons of oil
equivalent), metals, building materials, precious and semi-precious stones, liquid
minerals. Along the coast have discovered placer, heavy minerals of rare and precious
elements such as titanium, immelite, and ziecon.

Viet Nam's sea has about 20 ecosystems, including marine ecosystems, aquatic
ecosystems around coastal islands, offshore islands, especially water areas, and deep
seabed areas (the sea around Hoang Sa and Hoang Sa archipelagos and islands in the
East Sea and South Viet Nam). Truong Sa). The coastal area, where hundreds of
estuaries, lagoons, bays, islands and archipelagos are concentrated to create a system
of complex and diverse habitats with many types of ecosystems: tidal flats and
swamps, mangroves, estuaries, lagoons, coves, coral reefs, deltas, sandbanks, tidal
mud flats, upwellings, brackish aquaculture lagoons. Mangrove forests, coral reefs,
carpets Seagrasses and lagoons are considered the most important and typical

88
According to the 2016 National Environmental Status Report, out of the 11,000 species of
organisms that inhabit our waters, there are 6,000 benthic species; 2,000 fish species (with 130 fish
species of economic value); 653 species of seaweed; 657 alluvial animal species; 537 species of
phytoplankton; 225 species of marine shrimp...
89
Tidal beaches, estuary mangroves, lagoons, lagoons, bays, conifers, ponds, coral reefs, seagrass
beds...
90
World biosphere reserves in coastal and island areas: Can Gio Mangrove Forest, Cat Ba Archipelago,
Red River Delta, Kien Giang Coast and Sea Islands, Cu Lao Cham, Ca Mau Cape.
91
Wetland Reserves (Ramsar) coastal and island areas: Xuan Thuy, Ca Mau Cape, Con Dao, U Minh
Thuong.
92
Coastal and island national parks: Cat Ba, Con Dao, Bai Tu Long, Phu Quoc, Xuan Thuy, Nui Chua,
Ca Mau Cape.
93
Marine protected areas: Tran Island, Co To, Bach Long Vi, Cat Ba, Hon Me, Con Co, Hai Van - Son
Cha, Cu Lao Cham, Ly Son, Nam Yet, Nha Trang Bay, Nui Chua, Phu Quy , Hon Cau, Con Dao, Phu
Quoc.

183
ecosystems because they have high biodiversity and highest conservation value
(Figure 1). Coastal landscapes and coastal islands have a unique ecosystem. Natural
ecosystems with high biodiversity are also the foundation for economic activities such
as tourism, aquaculture, etc. In addition, marine ecosystems also contain important
functions such as absorption and storage. carbon capture (seagrass, mangroves),
climate regulation and disaster prevention.

The typical marine


ecosystem of Viet
Nam

Coral Seagrass Cove,


Mangroves Lagoon
reef beds Bay

Figure F2. The typical marine ecosystem of Viet Nam

(1) Mangrove Ecosystems

Mangroves are mainly distributed and thrive in the South, accounting for 70% of the
total area of the country (Ca Mau alone accounts for 50%); about 28% distributed in
the Gulf of Tonkin. Changes in the area of mangroves in Viet Nam follow two trends,
including: decrease in primary forest area and increase in new planted forest area.94
(Figure 3). Up to now, the primary mangrove forests are almost gone95. This leads to a

94
According to a report of the Ministry of Agriculture and Rural Development (2016), as of November
30, 2015, new forests have been planted: 1,968 hectares (mangroves 1,103 hectares; wind- and sand-
proof forests 301 hectares, production forests combined with protection forests). : 564 ha); zoning,
promoting forest regeneration and restoration: 1,105 ha (763 ha of mangrove forest, 343 ha of wind and
sand barrier forest); contracted forest protection: 12,681 ha (special-use protection forest: 12,326 ha;
production forest: 355 ha). In Decision No. 120/QD-TTg dated January 22, 2015, the Prime Minister
approved the Project on Protection and Development of Coastal Forests to Respond to Climate Change
for the period 2015-2020. It is because of the conservation and afforestation projects in the coastal area
that the forest area on the wetland is Melaleuca forest and mainly coastal mangroves increased
markedly from 2016 to 2019.
95
Between 1943 and 2005, at least 220,000 hectares of mangroves disappeared partly due to war and
on the other hand due to deforestation and aquaculture development. Primary mangrove forests have
almost disappeared in many coastal provinces (MONRE, 2019). According to the National State of the
Environment Report for the period 2011-2015, statistics show that up to 56% of Vietnam's total
mangrove area is considered "planted mangroves" with a very low number of species. Currently,
mangrove forests are mainly planted forests, with poor quality in terms of size, tree height and species
diversity.

184
decline in marine biodiversity, especially loss of spawning grounds and habitats for
aquatic species, and destruction of nearby ecosystems such as chives and seagrasses.

250000 235569
225802
Area (ha) 213142
203473
200000 190000

150000 139046
131520
120188

100000 84502

57211
50000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure F3. Area of mangrove forest in the period 2010-2019


Source: Ministry of Agricultural and Rural Development, 2019

(2) Coral reef ecosystem

In the waters of Viet Nam, four main coral reef distribution zones can be distinguished:
the coral reefs of the Paracel Islands and the Spratly islands; coral reefs of the Gulf of
Tonkin islands; coral areas in the central coast; and coral reefs of the East and South
West Seas. In which, the majority of corals are concentrated in the waters of the
Truong Sa and Hoang Sa archipelagos and the central coastal region (Vo Si Tuan and
Nguyen Huy Yet, 2003), with more than 200 sites. These are areas with rich potential
in biodiversity conservation, natural seafood seed sources, marine life resources and
ecotourism development. In the coral reef ecosystems of Viet Nam, more than 1,780
species have been recorded and discovered, in which, fish is the group with the highest
biodiversity; molluscs have more than 400 species.

185
Table F1. Distribution of reef-forming coral species in some seas of Viet Nam
No. Waters Number of species

1 West Gulf of Tonkin 176 species

2 Central region 252 species

3 Hoang Sa 201 species

4 Southern 406 species

5 Truong Sa 333 species

6 Southwest Bo 251 species

Source: Vo Si Tuan, 2014

Table F2. Distribution and area of corals in the coastal waters of Viet Nam

Area of coral reefs in Number of


Estimated reef
Area Location marine protected hard coral
area(ha)
areas(ha) species

Đảo Trần* unknown unknown 48

Cô Tô* 370 370 121

Hạ Long-Cát Bà* 500 500 171


Gulf of
Bái Tử Long unknown unknown 115
Tonkin
Bạch Long Vĩ* 1.578 1.578 93

Hòn Mê* unknown unknown 72

Cồn Cỏ* 274 274 166

Hải Vân-Sơn Chà* unknown unknown 102

Đà Nẵng 105 unknown 226

Central Cù Lao Chàm* 311 311 227


Coast Lý Sơn* 1.704 1.704 79

Phú Yên 303 unknown 139

Vân Phong 1,618 unknown 292

186
Nha Trang* 731 183 350

Ninh Hải (Núi Chúa*) 2.330 1.070 310

Hòn Cau* 506 506 184

Phú Qúy* 1.488 1.488 239

Côn Đảo* 903 903 307

Coastal Nam Du 80 unknown 126


East,
Southwest Phú Quốc* 474 292 251

Thổ Chu 80 unknown 198

Tổng 13.355 9.179 403

(*: marine protected area under the planning - Decision 742/2010/QD-TTg)

Source: Vo Si Tuan (2014)

Studies on biodiversity in coral reefs in Viet Nam show that coral reefs have a very
diverse and rich biome in species composition. It can be said that reef habitats have
the largest number of species compared to other marine habitats, with
representatives of almost all phyla and classes of animals mainly living in seas and
oceans. Studies show that the fauna living in coral reefs in the sea of Viet Nam has
about 2,100 species, of which coral reef fish are the most diverse with 763 species,
followed by molluscs with nearly 700 species, crustaceans - more than 250 species,
polychaetes - about 170 species and echinoderms - nearly 100 species [MONRE, 2020]

Coral reefs in the sea of Viet Nam are decreasing in area and coverage of live coral.
Coverage of living corals on reefs in coastal areas is decreasing over time, in some
places up to over 30% in the past 10 years. Only about 1% of the coral reefs have high
coverage (coverage > 75%), while the number of coral reefs with low coverage
accounts for over 31% (coverage < 25%), the number of coral reefs with medium and
relatively low coverage are at 41% and 26% respectively (Institute of Oceanography,
2008).

Table F3. Quality of coral reefs in Viet Nam


Type Live coral coverage Percentage of area

Very good >75% live coral 1

Good 50-75% live coral 26

187
Relatively good 25-50% live coral 41

Bad <25% live coral 31

Source: World Resources Institute, 2008

(3) Seagrass

Seagrass ecosystems are concentrated mainly in coastal sea areas with a depth of 0-
20m in some coastal water areas, tidal lagoons at small estuaries and along Viet
Namese islands, concentrated around Phu Quoc island. and some estuaries and
lagoons in the central region such as Tam Giang - Cau Hai lagoon, tidal lagoon, etc.
According to the National State of the Environment Report for the 2016-2020 period,
the area of seagrass beds in our country that has been identified and discovered so far
is estimated at 15,000 ha, of which 14 species of seagrasses and 14 species of seagrass
have been identified. 1743 species of creatures living in seagrass beds (Ministry of
Natural Resources and Environment, 2020). Seagrass ecosystems are in danger of
being degraded96. The area of seagrass beds has been reduced due to human activities
such as fishing, boat mooring, aquaculture causing environmental pollution, port
construction activities, and tourist facilities (MONRE, 2019].

(4) The lagoons

In Viet Nam, the lagoons are concentrated in the central region, where there is a rich
source of coastal sand deposits, strong wave dynamics and low tides. From Thua Thien
- Hue to Ninh Thuan, there are 12 typical lagoons with a total area of about 458 km2,
distributed over about 21% of the coastline of Viet Nam97 [Trần Đức Thanh et al.,
2009]. All 12 lagoon ecosystems have been degraded at different levels in terms of
structure, function, and distribution area. In which, the ecosystem of Nai lagoon is
severely degraded, and Thi Nai lagoon and TG-CH are moderately degraded. In
particular, the intertidal ecosystems, seagrass beds, mangroves and economic and
rare species that are important ecological components in the lagoons and lakes have
been rapidly degraded in terms of both quality (coverage, biomass) and size of
distribution area (MONRE, 2020).

96
Cao Van Luong et al. (2012) have shown that the area of seagrass beds has decreased by 50%
compared to 1999, the seagrass beds in Tam Giang - Cau Hai lagoons have decreased by 60%
compared to the previous year. 1999; According to Nguyen Thi Thien Huong et al. (2017), in the past
two decades, the area of seagrass has decreased by 45.4% and the average annual rate of decrease
in the whole country is 4.4%.
97
Vung Vinh along the coast of Vietnam and its use potential, 2009

188
Table F4. List of lagoons in Viet Nam
No Lagoon’s name Area Depth (m) Province River-sea interaction
2
(km )
1 Tam Giang-Cầu 216 Average: 1.6 Thừa Thiên-Huế It is a shallow water
Hai Deepest: 6-7 body with more than
(cửa lạch) 10 rivers pouring fresh
water into the lagoon.
Outflows to the sea
through the gates of
Thuan An and Tu Hien.
2 Lăng Cô 16 Average:1.2Dee Thừa Thiên-Huế Due to the great
pest: 2.0 influence of the sea,
the salinity is often
high.
3 Trường Giang 36.9 Average:1.1Dee Quảng Nam -
pest: 2.0
4 An Khê 2.9 Average:1.3Dee Quảng Ngãi -
pest: 2.0
5 Nước mặn (Sa 2.8 Average:1.0Dee Quảng Ngãi -
Huỳnh) pest: 1.6
6 Trà ổ (Châu 16 Average:1.6Dee Bình Định Receives fresh water
Trúc) pest: 2.2 from watershed
streams. Water from
the lagoon to the sea
through the Chau Truc
River is about 5 km
long. The lagoon gate
is not opened often,
encroached by sand in
the dry season.
Freshening water.
7 Nước ngọt (Đề 26.5 Average: 0.9 Bình Định -
Gi) Deepest: 1.4
8 Thị Nại 50 Average: 1.2 Bình Định Receives fresh water
Deepest: 2.5 from many rivers
pouring in, the largest
is the Con River. Water
mass and salinity

189
depend on river water
flow and tidal current.
9 Cù Mông 30.2 Average: 1.6 Phú Yên The lagoon is relatively
Deepest: 3.5 deep, only connected
to the sea by a narrow
gate, influenced by the
sea.
10 Ô Loan 18 Average: 1.2 Phú Yên The lagoon has many
Deepest: 2.5 properties of a
saltwater lagoon.
11 Thuỷ Triều 25.5 - Khánh Hoà The lagoon has many
properties of a
saltwater lagoon.
12 Đầm Nại 8 Average: 2.8 Ninh Thuận A deep lagoon, more
Deepest: 9m (in dominated by the sea,
creek of lagoon belongs to the salt
middle) water body type.
Source: Trần Đức Thạnh et al., 2012

(5) Coves and bays

Viet Nam's sea has a total of 48 coves and bays with an area between 2 and 560 km2
and a total area of about 3997.5km2, 9 times the total area of the coastal lagoon
system in Central Viet Nam. Of which, there are 13 large coastal coves (accounting for
27%), typically Bai Tu Long Bay (area, 3055.4 km2 - accounting for 76.4% of the total
area of the bay - bay), there are 6 pools - bays of medium type, 17 coves - small bays
and 12 coves - very small bays (Tran Duc Thanh et al., 2009).

Table F5. Groups of bays - bays along the coast of Viet Nam divided by area
Area Very small Small Average Large Total

Number 12 17 6 13 48

Proportion 25 35.4 12.5 27.1 100


(%)

Area (km2) 65.8 462.3 414 3055.4 3997.5

Proportion 1.65 11.56 10.36 76.43 100


(%)

Source: Tran Duc Thanh et al., 2009

190
Figure F4. Distribution of bays - coastal bays of Viet Nam
Source: Tran Duc Thanh et al., 2009

(6) System of Viet Namese islands

The island system of Viet Nam is divided into coastal islands and offshore islands,
specifically as follows:

(i) Coastal island

The coastal island system is a large corridor to the east of the Indochina peninsula;
This corridor extends North-South over 2,000 km, not only is the open door that is the
facade of the whole country for external trade and international integration, but also
the gateway to the sea of many countries and regions. This includes Western
territories such as Yunnan (China), Northeast Thailand, Laos, and Cambodia. According
to preliminary statistics of Le Duc An (1996), there are a total of 2,773 coastal islands
with a total area of more than 1,720 km² and distributed mainly on the coast of the
Northeast region (2,321 islands), ranging from Quang Ninh to Kien Giang border, from

191
shore to far from shore is about 135 to 155 km (Bach Long Vi, Hon Hai) and has an area
from a few hundred square meters to over 500 square kilometres. The number of
islands distributed by sea areas is shown in Table 6.

Table F6. Distribution of coastal islands by sea areas

No Waters Number of Ratio (%) Area (km2) Ratio (%)


islands

1 Northern coast 2321 83,7 841,1571 48.88

2 North Central Coast 57 2.06 14.29 0.83

3 South Central Coast 200 7,21 172 9.99

4 Central Coast 257 9,27 186.25 10.82

5 South Coast 195 7,01 693.47 40.3

6 Gulf of Thailand 165 5,96 613.13 35.64

7 Total 2773 99,98 1720.88 100

Source: Le Duc An, 1996

(ii) Offshore island

Two offshore archipelagos including Hoang Sa and Truong Sa are located in the northern
centre and southern central part of the East Sea - it is the largest marginal sea of the
Pacific Ocean, semi-enclosed by the Asian mainland and the coast of the Malacca
peninsula to the west; the island of Taiwan, the Philippine archipelago and the island of
Borneo to the east and southeast. These two places have high biodiversity values and
many important ecosystems, especially coral reef ecosystems.

2. Assessment of the current state of the environment and biodiversity in


the process of economic development in Viet Nam

(1) Current status of the environment and biodiversity

a) Sources of pollution

First, waste from the mainland:

Most of the pollutants are discharged from land into rivers and into the sea by rivers,
including wastewater and garbage from factories, factories, industrial parks, economic
zones, urban areas, and coastal residential areas. Noticeably, domestic wastewater

192
from urban areas, coastal tourist areas, aquaculture wastewater and industrial
wastewater from coastal industrial zones are discharged directly into the sea or
through underground sewers without being handled or handled not up to the specified
standards. In the total amount of wastewater generated in the basins, domestic
wastewater and industrial wastewater still account for the largest proportion.
Currently, only 13% of urban domestic wastewater is collected and treated to meet
prescribed standards, 89.28% of industrial parks, and 16.5% of industrial clusters have
centralized wastewater treatment systems (in 2019) (ISPONRE, 2020)98.

Besides the above wastewater sources, a large amount of solid waste is not controlled,
and dumped indiscriminately, not only polluting canals and rivers but also obstructing
the flow in some places. The rate of solid waste collection and treatment in urban
areas is ~86.5%, and in rural areas this rate is only ~63.5% (in 2019). Thus, there is still
a fairly large amount of solid waste that has not been collected and treated according
to regulations and hence, a large part is discharged directly into ponds, lakes, canals,
canals, flows into the sea or discharges directly into the sea. An estimated 70% to 80%
of marine litter originates inland (MONRE, 2016)99. Currently of great concern, plastic
waste, which usually accounts for about 50-80% of marine litter (ISPONRE, 2016)100.

Plastic waste is a major threat to the environment and marine biodiversity. Many types
of marine life mistake plastic for food (such as fish mistaking plastic beads for plankton,
birds mistaking plastic fragments for squid or other prey, and sea turtles confusing
plastic bags for jellyfish) and ingest plastic. This causes gastric emptying leads to
possible starvation or possibly severe intestinal obstruction and organ damage.
Various types of fishing nets and plastic ropes floating in the sea can catch and kill
many sea creatures such as shrimp, fish, turtles, marine mammals, even dolphins,
whales, and sea birds. Plastic fragments also absorb pollutants, especially persistent
non-degradable organic pollutants (POPs), bio accumulative compounds and other
toxic compounds (PBTs) and thus affect living organisms. According to the latest
statistics of the Ministry of Natural Resources and Environment, each year, on average,
Viet Nam discharges into the sea from 0.28 to 0.73 million tons of plastic waste
(accounting for about 6% of the world's plastic waste), ranking fourth in the world.
Marine litter pollution not only affects the quality of the environment, but also
destroys habitats, degrades biodiversity, destroys the living environment of

98
Institute of Strategy and Policy on Natural Resources and Environment, 2020. Report on Evaluation
of implementation results of the National Environmental Protection Strategy to 2020
99
Ministry of Natural Resources and Environment, 2016. Report on the status of the National
Environment in 2016 - Urban Environment
100
Institute of Strategy and Policy on Natural Resources and Environment, 2016. Research on
theoretical basis, international experience on plastic waste control at sea.

193
ecosystems, and affects economic and community development of coastal
populations.

Along with economic growth, more and more waste sources are generated: waste
sources from industrial parks, domestic wastewater, and waste sources from marine
activities such as fishing, oil and gas exploitation, and marine transportation.
Currently, from 70% to 80% of marine waste originates inland when factories,
factories, industrial parks, and residential areas discharge untreated wastewater and
solid waste into rivers, coastal plains or discharged directly into the sea [VASI, 2018]101.
Viet Nam has 112 estuaries, this is the source for garbage drifting into the ocean and
many creatures mistake garbage for food or get stuck in fishing gear, so they die,
resulting in habitat destruction.

The discharge of waste into the sea by economic zones, industrial parks, factories, and
business establishments is taking place every day with increasing discharge volume
and is complicated and difficult to control, especially in activities. discharge activities
of coastal and marine aquaculture households. In many economic zones, concentrated
industrial parks, and factories, monitoring and supervision are not regular and
continuous, along with inadequate and outdated monitoring and supervision
equipment, so violations have occurred. Hence environmental legislation is needed to
monitor discharge untreated waste into the sea and pollution of the marine
environment. According to reports of 28 provinces and centrally-run cities with the
sea, there are currently 647 units and enterprises that have activities of discharging
waste directly into the sea with a flow of 88,667,902 m3/day and night, of which
154/647 units and enterprises, accounting for 23.8%, have a discharge volume of
1,000m3/day into the sea; Some localities reported late, incomplete reports on the
status of waste treatment systems, wastewater and environmental monitoring
activities for 357 units and enterprises at the request of the General Department of
Seas and Islands of Viet Nam.

Second, marine waste:

Besides waste sources from land, wastewater, solid waste, waste oil, chemicals of
ships operating at sea (such as cargo ships, cruise ships, etc.) as well as oil and chemical
spills. The toxic effects of mining rigs and oil tankers are all serious sources of marine
environmental pollution, greatly negatively affecting the environment and marine
ecosystems. The risk of oil spills tends to increase in recent years, on average, each
year in Viet Nam's waters, there are 3-4 oil spills occurring at sea. According to

101
Marine Biodiversity Report, 2018

194
statistics, Viet Nam is one of the three countries (along with the US and China) with
the highest number of oil spills in the 39 countries listed. Oil spills at sea have caused
serious economic damage, polluted the marine environment, seriously affected the
ecosystems of mangroves, lagoons and coral reefs due to toxins and causes ecosystem
destruction. Oil pollution and oil spills even at an oil concentration of 0.1mg/l in water
can be lethal to plankton species and greatly affect the juveniles and larvae of seafloor
organisms (MONRE, 2015)102

(2) Current status of marine environment

Due to the influence from the estuary area and the waste reception of coastal
economic development activities, some sea areas have high TSS content. In addition,
the increase in organic matter and grease content is also a concern for the quality of
coastal seawater in Viet Nam in recent years.

The problem of pollution by organic matter in coastal seawater has been quite
common in coastal provinces of Viet Nam. Concentrations of monitoring parameters
such as COD, NH4+ in the period 2011 - 2015 in most areas were at a high level
exceeding the QCVN threshold (for aquaculture and beach purposes), especially in the
coastal area to the east. Tho Quang boat dock (Da Nang) is one of the hot spots for
seawater pollution. The level of organic pollution in the northern coastal area is higher
than that in the central and southern regions but tends to decrease gradually in the
period 2011-2015.

The content of mineral oil and grease in seawater tends to increase in port areas,
which is a common problem. Some seaport areas have mineral oil and grease content
exceeding the QCVN threshold. The main reason is due to the operation of ships that
leak fuel and grease.

(3) Current status of marine biodiversity decline

Despite being considered a country with high biodiversity in the world, Viet Nam is
facing increasing biodiversity loss. The inevitable consequence will be to reduce/lose
the functions of the ecosystem such as regulating water, preventing erosion,
destroying waste, cleaning the environment, ensuring the circulation of matter and
energy in nature, and preventing disaster reduction/climate extremes, consequently
the economic system will be degraded due to the loss of values of natural resources
and environment (natural capital).

102
Ministry of Natural Resources and Environment (MONRE), 2016. National Environmental Status
Report 2011-2015.

195
Currently, wetlands are being strongly impacted by human economic development
activities and the effects of climate change. The area of wetlands tends to shrink due
to increasing pressure on the exploitation and use of wetlands and natural resources
on wetlands. The area of natural mangroves has decreased by over 85%, compared to
the time before 1945 (Figure 3), while the artificial wetlands have increased
(hydroelectricity, irrigation). Coastal wetlands are encroached by ponds for
aquaculture, salt production, construction works, and development of urban areas;
rivers are changed due to the system of dams and hydroelectricity. Natural resources,
including living and non-living things in wetlands, are exploited beyond the allowable
limit, even destructively,... Natural aquatic resources in the area such as water bodies
in the northern and central provinces are almost exhausted; In the East and Southwest
regions, reserves are reduced by 50% compared to the time before 1945. 12 Central
coastal lagoons, unique wetlands not only for Viet Nam but also Southeast Asia have
been exploited and are being exploited. The waterfall exceeds the allowable limit,
including Tam Giang - Cau Hai Lagoon in Thua Thien Hue province. Many wetland areas
are located in the lagoon system, even being "killed", levelled for urban development,
roads, wharfs, etc...(VEA, 2016)103. According to the 2012 Red Book of the World Union
for Conservation of Nature (www.iucnredlist.org), Viet Nam has at least 135 globally
threatened species residing in continental freshwater, intertidal and coastal habitats
at the seaside. This figure is forecasted to increase if there is no effective management
solution (Tong Minh, 2020).

First, for mangroves:

Old-growth mangrove forests in Viet Nam have declined greatly in recent years in area,
data on mangrove area from 1943 to 2015 show that the area of mangroves in Viet
Nam has decreased from 408,500 to 57,211 ha.

103
Vietnam Environment Administration, 2016, Project Report on Conservation of Important Wetlands
and Associated Habitats

196
Figure F7. The decline of mangrove areas in Viet Nam over 50 years
Source: Forest census data of the General Department of Forestry, 2015

The current mangrove forest area is mainly planted forest, pure type, poor quality in
terms of size, tree height and species diversity. The primary mangrove forests are
almost gone. The severe reduction of mangrove area has led to a decrease in marine
biodiversity, especially loss of spawning grounds and habitats of aquatic species. The
destruction of mangroves has also caused the destruction of neighboring ecosystems
such as chives and seagrasses104.

Second, for coral reef ecosystems:

In recent years, coral reefs are being destroyed and have a strong tendency to
degrade, mainly in populated areas such as Ha Long Bay, central coastal provinces and
some islands. Some people live in the Truong Sa archipelago and area also affected.
According to a report from the Program on Protection and Development of Aquatic
Resources in Quang Ninh to 2020, with a vision to 2030, the coral reef ecosystem in
Co To sea has lost 90% of its coverage and extent. Many reefs are 100% dead,
becoming the area with the largest and fastest degradation rate and extent recorded
in the coastal area of Viet Nam (Pham Hoach, 2020). Survey results in recent years in
7 key reef areas of Viet Nam show that only 2.9% of the coral reef area is assessed to
be in very good development condition, 11.6% in good condition, 44.9% in bad and
very bad condition. The coverage of coral reefs is decreasing, leading to a decrease in
species diversity of some fish families closely associated with coral reefs such as
Butterflyfish family Chaetodontidae, Angelfish Pomacanthidae, and Spinach
Acanthuridae in Nha Trang Bay and Van Phong. On the other hand, some harmful

104
Ministry of Natural Resources and Environment (MONRE), 2016. National Environmental Status
Report 2011-2015

197
organisms are tending to develop, typically an explosion in the number of prickly
starfish Acanth aster planci (>0.15 children/100m2) - a predator that eats corals,
reducing the level of coral. hard coral cover, causing fish degradation on the reef105.
Area reduction and damage of many coral reefs reduce biodiversity, ecology and
marine environmental quality; loss of livelihoods of coastal communities and damage
to tourism and fisheries.

The cause of the decline in coral reef area is that the fishermen have been overfishing
using destructive forms such as explosives for a long time. Meanwhile, coral reefs are
the shelter, hiding, breeding and development of many marine species that develop
along the natural food chain. Currently, despite the successful planting, restoration
and reproduction of corals in the wild, the restored area is still very low.

Third, for the seagrass ecosystem

Seagrass ecosystems are in danger of being damaged and degraded. The degradation
of seagrass beds is reflected in aspects such as species loss, narrowing of distribution
area, pollution, habitat degradation, biodiversity loss and economic benefits of
associated rare and precious species. According to the general statistics of the whole
country, the area of seagrass beds in Viet Nam has been reduced by 40-60% (VASI,
2017)106. Seagrass cover in some areas is only half what it was 5 years ago (VASI,
2017)107. The degradation of species diversity is also taking place in the seagrass bed
ecosystem.

The coastal islands of the North Central Coast are being severely degraded with an
average rate of 6 - 7%/year (grades II - III) such as Ly Son, Nha Trang Bay. The grass
beds along the South Central Coast decline more slowly with an average annual rate
of about 3-5%/year (grades I - II) such as Hon Cau and Phu Quy. The rate of decline of
grass beds in the South is lower than in the Central region with an average of about
3%/year such as Phu Quoc and Con Dao108.

According to a report by the United Nations, as of July 2020, Viet Nam's population
reached more than 97 million people, ranking 15th in the world, an increase of more

105
Vietnam General Administration of Seas and Islands, 2017, Report on collection, information and
documents for the development of project outline
106
Vietnam General Administration of Seas and Islands, 2017, Report on collection, information and
documents for the development of project outline
107
Vietnam General Administration of Seas and Islands, 2017, Report on collection, information and
documents for the development of project outline
108
Vietnam General Administration of Seas and Islands, Draft Report on Status of Marine Biodiversity
in 2018

198
than 10 million people compared to 2010 (86.9 million people). Rapid population
growth increases pressure on the natural and social environment. The load capacity of
the natural environment is limited, when the population increases rapidly and
untreated waste is discharged into the environment, it will exceed the self-cleaning
capacity of the natural environment, causing pollution every day.

Table F7. Degree of seagrass degradation in some studied islands

Distribution Depression Recovery


No Area (ha) Distribution status
area level Capacity

Can be
Areas of Bai Bon, Rach Vem, Bai
1 Phu Quoc 10.000 Level I-II restored if stop
Vong, Bai Thom - Xa Luc
impact

Areas of Con Son Bay, Dam Tre, Ben Can be


2 Con Dao 500 Dam, Bai Dat Doc, Bai Ong Dung, Level I-II restored if stop
Hon Cau, Hon Tre Lon, Hon Bay Canh impact

Northwest of Hon Tranh, West, Can be


3 wealth 31 Southwest and Northeast of the Level I-II restored if stop
island impact

Can be
4 Hon Cau* 3 Southwest and North Island area Level I-II restored if stop
impact

Areas of Dam Tre Bay, Dam Gia, Can recover


5 Nha Trang bay 78 Vung Me, Hon Chong and Lo River Level II-III naturally but
estuary slowly

Can be
6 Nam Yet 8 North and South of the island Level I-II restored if stop
impact

The area to the southwest, Can recover


7 Ly Son 45 southeast of the island, in the coves Level II-III naturally but
around the island slowly

Areas of Bai Bac, Bai Ong, Bai Chong, Can be


8 Cu Lao Cham 50 Bai Bim, Bai Huong and a very small Level I restored if stop
number at Bai Nam impact

Ghi chú: (*) Additional census data in 2015, remaining islands in 2010 - 2011

199
(source: Institute of Marine Environment and Resources, 2017)109

(4) Current status of marine pollution and incidents

The deterioration of the sea water environment due to pollution and environmental
incidents leads to the destruction of natural habitats of species, causing great loss of
biodiversity in coastal areas.

There have been serious environmental incidents occurring, causing great


consequences on ocean environmental pollution, damage to ecosystems and directly
affecting people's daily life and livelihoods. In 2016, there was an incident of discharge
of wastewater containing toxins that had not been treated up to standards into the
environment by Hung Nghiep Formosa Ha Tinh Iron and Steel Co., Ltd, causing mass
death of seafood and affecting some marine ecosystems. In the four central coastal
provinces of Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue as a primary example.
Coral reefs are the most affected objects in marine ecosystems, 100% of coral reefs in
the survey area show signs of bleaching, most of the coral branches die off. Typical
reef areas are: Hon Son Duong - Ha Tinh (first point), the highest coral mortality rate
is about 90%, Hon Nom (Quang Binh) and Hai Van, Son Tra - Thua Thien Hue (end
point), the rate of coral loss was 66.7%. Organisms on coral reefs are still very poor,
fish density is very low, the lowest is Hon Son Duong, Hon Nom (MONRE, 2018)110.
Formosa Company had to compensate Viet Nam with a total amount of 500,000,000
USD (equivalent to over 11,500 billion VND).

In addition, oil spills occur more and more complex in nature and extent. From 1992
up to now, 190 oil spill incidents have occurred in Viet Nam's waters, of which 37
occurred at sea (accounting for 19%), 88 cases inshore (accounting for 47%)
[SOSmoitruong, 2020]. In particular, for example, the oil spill incident of Formosa One
ship occurred in 2001 at Ganh Rai bay (BR-VT province), because the Formosa One ship
crashed into the Petrolimex-01 ship, spilling about 900m3 (equivalent to 750 tons). DO
oil to the sea; or the oil spill of Hong Anh ship, which occurred in 2003, due to high
waves sinking the Hong Anh ship in the Ganh Rai bay area, spilling about 100 tons of
FO oil, directly affecting the Can Gio protection forest and aquaculture areas. The total
economic and environmental damage caused by the incident is up to tens of billions
of dong...[Quang Vu, 2020].

109
Vietnam General Administration of Seas and Islands, Draft Report on Status of Marine Biodiversity
in 2018
110
MONRE, 2018, Report on the State of the National Environment 2018-Water environment in river
basins

200
(5) Current status of climate change

Viet Nam is one of the countries most severely affected by climate change, especially
in coastal wetlands, typically mangrove areas in Ca Mau, Ho Chi Minh City. Ho Chi Minh
City, Vung Tau and Nam Dinh. The impact of climate change makes the problem of
pollution, environmental degradation, and biodiversity loss in our country increasingly
complex and unpredictable.

Climate change in particular is sea-level rise, making saltwater intrusion in coastal


areas become more and more serious and become one of the most difficult problems
in some localities. The Mekong Delta with 1.77 million hectares of saline soil
accounting for 45% of the area, is the region with the largest saline soil area in the
country. If sea level continues to rise by 30cm up to 2050 climate change scenario,
land loss and saltwater intrusion will increase in the Mekong Delta and some areas of
the Red River Delta, seriously affecting national food security. In addition, rising sea
levels force aquaculture farms to relocate, and the reduced mangrove area will lose
the habitat of aquatic organisms (VASI, 2020)111

In addition, increasing temperature will change the distribution area and biome
structure of many marine and coastal ecosystems: tropical species will decrease in
coastal ecosystems and tend to move to high latitudes and regions than in terrestrial
ecosystems; temperate species will decrease; The structure of food chains and webs
also changes. Rising temperatures also make coral reefs home to many marine species,
shielding against coastal erosion and protecting mangroves that will be degraded.

3. Viet Nam marine ecosystem services

Ecosystem services are “The benefits humans derive from ecosystems include
provisioning services such as food and water, regulatory services such as floods and
droughts, and supporting services such as soil formation and nutrient cycling. and
cultural services such as entertainment, spiritual, religious and other non-material
benefits” (MEA, 2005). Accordingly, ecosystem services include four types.

111
Vietnam General Administration of Seas and Islands, 2020, Summary report on the current state of
national coastal zones

201
Table F8. Types of marine ecosystem services

Service provided Regulatory Service Cultural services

Human products obtained The benefits that humans The non-physical benefits
from ecosystems: derive from the regulation obtained from the
of the ecosystem: ecosystem:
Food,
climate regulation, spiritual enrichment,
fuel,
breakwater, develop awareness,
yarns,
thinking, creativity
erosion control,
soft drink
aesthetic experience.
pure water,
genetic resources.
disease control, etc.

Support Services

Provide the necessary operations for all other types of services

oxygen production; accretion.

Source: MEA (2005)

Biodiversity and marine ecosystems in Viet Nam are considered to be of great value
for economic activities (tourism, fisheries, transportation, etc.), disaster prevention,
climate regulation, absorption,and carbon storage. Research on the evaluation of
marine ecosystem services has received more attention recently in terms of research
quantity and quality. However, the general assessment shows that the number of
valuable studies of the ecosystem is limited, only a few small studies have been
conducted, focusing mainly on coral reef and seagrass ecosystems, mangroves in
specific areas such as wetlands112, islands 113. Other ecosystems such as inland
wetlands (rivers, lakes), marine ecosystems such as lagoons, lagoons, bays and
offshore areas have not been studied and evaluated yet. In particular, to date, there
have not been any announcements by state management agencies on the value of
marine ecosystems through the results of investigation, assessment, inventory,
statistics, evaluation and accounting; There are no legal guidelines on the economic
evaluation of marine ecosystem services. Therefore, the awareness from various
management levels to the community about the value of marine ecosystem services

112
Tam Giang – Cầu Hai, Thái Thụy – Thái Bình..
113
Bạch Long Vĩ, Thổ Chu và gần đây là huyện đảo Trường Sa…

202
is still limited; the value of marine ecosystem services has not been adequately
analyzed in the process of formulating, implementing and evaluating development
strategies, master plans and plans at all levels and sectors; Policy tools implementing
the principle of beneficiaries, using the value of marine ecosystem services to be paid
for have not been applied, leading to unfairness. The Law on Environmental Protection
2020 has regulations on payment for marine and wetland ecosystem services,
currently being concretized in a Decree for the Government to promulgate and will
take effect in January 2022.

To the extent of some initial single research results on coastal mangrove ecosystems,
we can see that wetland ecosystems are an extremely important natural resource in
Viet Nam, bringing many benefits. and great value in terms of socio-economic,
entertainment, tourism and especially cultural, social and historical values. Over the
years, Viet Nam has risen to become the second largest rice exporter in the world;
seafood export turnover in 2017 reached 8.3 billion USD, ranking in the top 10
industries with high export turnover [Van Hao, 2019]. Wetlands in the Mekong Delta
have biodiversity values and are fertile land for farming. This is the largest rice granary
of the country, contributing to 80% of the national export rice output.

In the Red River Delta, at the mouth of the Ba Lat - Nam Dinh River, the total economic
value of the wetland ecosystem is estimated to bring about VND 88,619 billion/year
including direct use value, indirect use value and non-use value [Thuy Ngoc, 2014].
Research by Nguyen Mau Dung et al. (2017) in Thai Thuy Wetland Area, Thai Binh
Province has specifically evaluated economic values and divided them into direct use
values and indirect use values, specifically is the total economic value of Thai Thuy
Wetland Area, Thai Binh province is 23,034 million USD; direct use value accounted for
(72.53%), indirect use value accounted for 26.32% (see Table 3) for details.

Table F9. Total economic value of mangrove areas in Thai Thuy district
No Economic Values Total value 1 year Percentage (%) of
total value
(millions of dollars)

DIRECT USE VALUE

1 Aquaculture 11.381 49.45

2 Fishing in the mangroves 1.289 5.60

3 Coastal fishing 2.479 10.77

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4 Beekeepers 0.200 0.87

5 Travel services 1.343 5.84

Total direct use value 16.692 72.53

INDIRECT USE VALUE

1 Disaster mitigation 1.787 7.68

2 CO2 storage value 2.190 9.52

3 Clean water 2.100 9.12

Total indirect use value 6.077 26.32

NON-USE VALUE

1 Conservation of biodiversity 0.265 1.15

Total unused value 0.265 1.15

Total economic value (TEV) 23.034 100.00

Source: Nguyen Mau Dung, 2017

In the study by Merriman, JC, Murata, N. (2016), the total economic value of the
wetlands of Thai Thuy district is estimated at 15 million USD/year and 60.3 million USD
from carbon accumulation (calculated 1). times), smaller than the estimated results in
this study ($20.84 million/year and $73.4 million from carbon accumulation for one
time - equivalent to $23.034 million/year). This is because the study by Merriman and
Murata (2016) did not take into account the benefits from beekeeping, from tourism
services, from water treatment or cleaning, and benefits from biodiversity
conservation of the wetlands in the Thai Thuy district.

Nguyen Mau Dung et al (2017) also conducted a similar study in the Tam Giang - Cau
Hai lagoon area, Thua Thien Hue province. The estimated annual value of the TG-CH
lagoon is around $77,291 million. The direct use value accounts for the largest
proportion (over 99%), the indirect use value accounts for nearly 1% of the total
economic value. It is quite surprising that direct values (fishery and non-fishery) have
a high contribution to total economic value compared to other value groups (Barbier,
Acreman, and Knowler, 1997; Janekarnkij and Mungkung , 2005; Schuyt and Brander,
2004; Kyophilavong, 2008). This shows that the TG-CH lagoon plays a very important
role for the livelihoods of communities living in and around the wetland conservation
area. The main reason for the high proportion of direct values of Tam Giang - Cau Hai

204
lagoon in total economic value is the richness of biodiversity and geographical
conditions. According to fisheries experts, Tam Giang - Cau Hai lagoon is very rich in
food sources and has ideal conditions for the development of different aquatic species.

Table F10. Ecosystem service value at Wetland Ecosystem in Tam Giang - Cau Hai,
Thua Thien Hue province
No. Economic Values Total value 1 year (million Ratio (%) in
dollar) total value

DIRECT USE VALUE

1 Aquaculture 71.777 92.87%

2 Seaweed 0.214 0.28%

3 Wild caught 3.204 4.15%

4 Agricultural activities 0.697 0.90%

5 Travel 0.383 0.50%

Total direct use value 76.275 98.69%

INDIRECT USE VALUE

1 CO2 storage value 0.542 0.70%

2 Clean water 0.107 0.14%

Total indirect use value 0.649 0.84%

NON-USE VALUE

1 Biodiversity conservation value 0.367 0.47%

Total non-use value 0.367 0.47%

Total economic value (TEV) 77.291 100%

Source: Nguyen Mau Dung et al., 2017

Research by Nguyen Huu Ninh, Mai Trong Nhuan et al. (2003) has evaluated the
economic value of typical coastal wetland areas in Viet Nam including Tam Giang - Cau
Hai lagoon, Thi Nai lagoon, and beach. the southwestern dynasty of Ca Mau and the
estuaries of Bach Dang, Ba Lat, Van Uc and Tien Day rivers. The results of the total
economic value are shown in the following table:

205
Table F11. Total economic value of some coastal wetland areas

No Areas Total economic value (TEV)


(USD/ha)

1 Đầm Tam Giang - Cầu Hai 2,301

2 Bãi triều Cà Mau 4,593

3 Cửa sông Bạch Đằng 503.57

4 Đầm Thị Nại 503.57

Source: Nguyen Huu Ninh, Mai Trong Nhuan et al (2003)

From the calculations on the economic value of the wetland ecosystems of the authors
in Viet Nam, it shows that, if compared with the economic values of the wetland
ecosystems in the world, the economic value per 1 ha in Viet Nam belongs to the high
group, this is an advantage for Viet Nam, so it needs to be preserved and developed
to take advantage of this.

4. Interaction with SDGs

Preliminary assessment of the correlation between Environment, Biodiversity &


Ecosystem Services and SDGs in Viet Nam is as follows.

Table F12. Environment, Biodiversity & Ecosystem Services and SDGs


Goal Score Linked to Environment, Biodiversity & Ecosystem Services

Biodiversity conservation, environmental protection and the


expansion of ecosystem services enhance potential for economic
SDG 1 +2 activities (marine tourism, fisheries, renewable energy, etc.), increase
the number of job opportunities that bring higher income for coastal
residents.

Biodiversity conservation helps increase the fisheries resources that


SDG 2 +2
yield high value of food supply.

Marine ecosystems (mangroves, coral reefs and sea grasses) can be


SDG 3 +3 valuable raw materials for the production of medicine. Clean water
helps to protect everyone's health when swimming.

206
Goal Score Linked to Environment, Biodiversity & Ecosystem Services

SDG 4 Biodiversity provides broad and rich knowledge through marine flora
+2 and fauna surveys that support biological students, researchers, and
more.

Women are a large force in all activities related to biodiversity


SDG 5 +1
conservation.

Protecting the marine environment and biodiversity will contribute to


SDG 6 +3 protection and supply of clean water. Notably, desalination is an
important process to ensure enough clean water in some countries.

Maintaining a safe marine environment will indirectly support wind


SDG 7 +1
power development and offshore oil and gas production.

Protection of the environment and marine biodiversity contributes to


SDG 8 +2 the sustainability of marine economic sectors such as tourism and
fisheries.

There is a two-way relationship, positive and negative: Positive and


SDG 9 0
negative, considered neutral.

Increasing job opportunities for coastal residents through protecting


SDG 10 +1
environment can help reduce inequality in society.

Cities in 28 coastal provinces of Viet Nam have many opportunities


SDG 11 for urban development if they maintain the protection of marine
+2
environment and biodiversity and utilize sources of revenue from
ecosystem services.

SDG 12 +3 High demands for responsible consumption and production.

The mangrove ecosystem makes an important contribution to climate


SDG 13 change response and disaster prevention. One of the most essential
+3
roles of marine ecosystem services is carbon storage - an
indispensable solution to mitigate climate change.

SDG 14 Enhancement of marine environmental protection and biodiversity


+3
conservation is the realization of SDG14.

SDG 15 Mangroves play a role in preventing storms, natural disasters,


+3
protecting forest ecosystems and inland resources.

207
Goal Score Linked to Environment, Biodiversity & Ecosystem Services

SDG 16 Protection of the marine environment and biodiversity requires aid


+3
from all people at all levels.

Strengthen cooperation between the parties to protect the marine


SDG 17 +2
ecological environment.

Source: Nguyen The Chinh, 2021

Table F12 shows that the link of environment, biodiversity and ecosystem with
sustainable development goals is mainly positive and positive, except for goal number
9 which is evaluated. two-way impact, for industrial development, infrastructure has
a negative impact (-), for creativity, environment, ecosystem and biodiversity has a
positive relationship (+), as Therefore, the total relationship is assessed by O. This
suggests that industrial and infrastructure development needs to be studied carefully
before deciding to compensate for the losses that industrial and infrastructure
development. effects on the environment, ecosystems and biodiversity towards
balance

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