June 2, 2010

Vietnam Environmental Forum NEWS

Most cities in Vietnam do not have wastewater treatment facilities

-Vietnam Environmental Forum  

Ha Long This Been Going On?

After a couple of weeks moving around Asia I feel a little like this guy, who was resting on the side of the road from Ha Long to Hanoi as truck, bicycle and scooter traffic whizzed by. Sometimes, you feel like you just can’t go on. But on we must. We’re heading back to Hanoi after a tour of the World Heritage Site of Ha Long Bay (“descending dragon”).

 
 

The route to and fro is cacophonous and winds through a half-dozen major villages and dozens of wide spots in the road where people peddle fruit (coconuts, pineapple and stinky durian) and other stuffs (sunglasses, hats and local go-juice for man and scooter) and friendly smiles.

The formations of Ha Long, with intricate caves and grottos, are of limestone and were created by erosion a few million years ago. The ocean flooded the plain, giving the place its eery beauty.

The bay is a Mecca for tourism and dozens of “junks” serve the international visitors that jam the quay. A busload of Japanese unload in front of us, led by a cheery hostess waving a yellow flag. The matching hats of the tour group go by in a single file in front of me as we wait for our guide to make arrangements for our private junk (the “Victory 8;”) Capacity: 42, Our group: 6. Not very carbon-friendly, I must say and I feel a little bit guilty about that, but we board and head out to cruise around the limestone formations that jut from the dark green water, like the undulating spines of a giant submerged dragon.

 

The Bay has short and long-term threats. Short-term stresses include contamination from runoff pollution and the discharge of untreated sewage from the rapidly-developing and urbanizing areas. In the long term, it’s sea level rise. If the seas rise 1 meter, then it is estimated that ~11% of the population of Vietnam will be displaced (about 10 million people, given population growth rates). The most critical areas at-risk are the Red River (which flows through Hanoi) and the Mekong region below Ho Chi Minh City.

The map shows the inundation zones if the average sea level rises by 1 meter. Much of these areas, particularly in the south, host agriculture and aquaculture. It’s not just about getting wet, the initial threats to agriculture, for example, are due to salt water intrusion pushing up into the fresh water growing areas (rice paddies), affecting crop viability and disrupting the food supply.

(“Challenges of Integrated Coastal Management,” Marea Hatziolos World Bank, ENV. ARD HUB Training Nha Trang, Viet Nam. January 14-19, 2008)

For the time being, we are watching the daily life of the Ha Long inhabitants, so many tied so deeply to fishing and life on the water, literally. Floating villages and boat-homes dot the bay, some well-appointed, most humble.

We cruised out for an hour and were served lunch as part of our tour package. After a while a small sanpan intercepted our course and came alongside, carrying two young girls. The boat crew did nothing to dissuade this contact; in fact, I think it was intentional and I would liken it to the symbiotic relationship between remora and shark. The remora gently cleaning the gills of the shark and the shark happy to oblige. The pink-hatted lass stood on the gunwhales of her sanpan and popped up to our window on the starboard side of the junk. She held a small puppy.

 

“Ms. Ha Long” solicited for small change and did it in such an endearing and gentle manner that we were glad to help her out. Rubbing her fingers together and communicating with her eyes, she looked at everyone at the table, in-turn. After making the rounds and collecting from our group, she lingered at the window, occasionally looking down at her companion who was in their boat. The remains of our meal sat on the table and she gestured towards the plates of rice and fish and a few fried spring rolls. We shrugged. What the heck. We passed the plates to her and she emptied them into some containers. Again, the crew was untroubled and didn’t rise (nor blink an eye). I imagine that all of the citizens around the bay know one another--directly or indirectly--and this is a fine and acceptable part of the tourist trade.

One of our group spoke Vietnamese and found that our visitor lived on a small boat with her sister. She was an orphan and had just turned 12. Whether all or part of that was true, it hardly matters; for her trouble she got around ten dollars from our group and the leftovers which would probably serve up a decent meal for two or three. After ten minutes and an offer to sell the puppy to us, young Ms Ha Long let go the side of our boat and drifted away.

 

We all wanted to take her back with us. The puppy, too.

Vietnam Environmental Forum (Really Why We Are Here)

“We don’t have the money to get samples. No cars or vehicles. [How can we monitor?]”

- Le Dai Thang, Ministry of Natural Resources

Implementation. In the end, this is the rub. The expansion of Vietnam’s economy has been Priority One for the Vietnamese government over the past 15 years. And, against many metrics, it has succeeded. In 1990, over 60% of the population was living at or below the general poverty line (food poverty, defined as the inability to deliver 2100 calories per day per person was over 25%). The overall poverty level has dropped to 13% as of 2008 (and a food poverty target of 4% in 2010 is likely to be met). (Source: http://www.ausaid.gov.au/country/country.cfm?CountryID=33). Much of the poverty is concentrated in rural areas. The urban population, which we interacted with mostly, is a mix of rich (Mercedes) and the working poor (hustling on cyclos and street-side hawking) and a spectrum in between (with much of the population on the low end).

Economic development has sundered the environment, certainly, as it has in China. As our briefing with the US Commercial Service laid out (find those folks and talk to them if you’re poking around internationally), the difference between Vietnam and China is that the former is taking a different tack from the latter in dealing with the environmental depredation, that is, dealing publicly with the issues and giving air to the discussion. The attendees at our forum got an overview of policy and practice on the part of the government.

To kick things off, we were welcomed by Ambassador Michael Michalak at his residence in Hanoi for a casual evening, great hospitality and discussion about the route that our engagement should take. Here: Peter Gourlay, the Ambassador, Alex Koff and your correspondent.

On the following day, the opening of our conference was attended by 200+ people in Hanoi (with a similar number in Ho Chi Minh City two days later). The Forum brought many witnesses to bear on the issues--and the solutions--that may be applied. The interesting perspectives were brought by the

representatives from the government, including Vice Minister Nguyen Van Duc, Ministry of Natural Resources and Environment (MONRE). The frank assessment of Vietnam’s condition was held forth by many of the speakers. The challenges, too were, not minimized. Something as simple as gathering air or water samples to bring to a laboratory are a challenge; many agencies don’t have the funding for vehicles to take to the monitored sites. How can one do an assessment without data? Understaffed and overstretched.

For example, there is ONE guy in HCMC that is in charge of monitoring oil spills in the Saigon River. Discharge of industrial waste and sewage into the rivers and streams require ongoing assessments in order to ascertain and focus on problem areas (and offenders). The need for data (baseline and ongoing) is huge. Maybe we can help.

The notion of Public-Private Partnerships, common in the US has a critical role to play in Vietnam. The Vietnamese government can improve the effectiveness of its policies by expanding the engagement with the private sector. As the government enacts regulatory and systemic reforms (increased openness and transparency), opportunities expand for companies that can provide solutions. Our conference is an example of that engagement as it represented a unique blend of three elements: Government, Academia and the Private Sector, with the objective to create a lasting cooperation between Vietnamese and U.S. firms that can join resources to apply solutions to Vietnam’s environmental needs.

War Legacy

Some of these needs have been created by the burgeoning economy and some, unfortunately, are legacy issues left over from the war. One area that affects the social, health, environmental and emotional state of affairs is the dioxin contamination left over from defoliation efforts during “the American War in Vietnam.” An estimated 19 million gallons were sprayed over heavily forested areas to deprive the VC from cover.

The resulting environmental nightmare affected the local population immediately, not only causing disfigurement by direct contact, but by creating grotesque and tragic birth anomalies in ensuing generations. Erosion caused by the destruction of the habitat and loss of important tree species and destruction of the mangroves have had long and lasting effects. It has been estimated that the mangrove swamps will take 100 years to recover, if at all.

The map at left shows the wide (dark) areas that were sprayed during the campaigns, which lasted until 1971 (even after the side effects on human health were known. (Source: http://www.lewispublishing.com/map1.htm)

Experts at Columbia Analytical services discussed the dioxin issue with Dr. Lan Le who is on our delegation. The emotion that is connected with the topic is palpable and there is still a large sense the the US is not doing enough to mitigate the effects of its actions 40 years on.

Equitization, Privatization & Socialization

The cost of climate change adaptation in Southeast Asia is estimated to be 6% of GDP.

-Koos Neefjes, UNDP

In a Marxist economy, one doesn’t privatize a State-Owned Entity of SOE. One “equitizes” or “socializes”. To refer to the “P” word is bad form. In Vietnam, 40% of the enterprises are SOEs and they represent the largest polluters.

This is par for course in a communist - cumsocialist centrally run economy that is transforming itself. The difficulty is to convert inefficient industries that cause the majority of the pollution to cleaner and less-offending types of technologies.

 

The largest of the SOEs are in the electricity (Electricity Vietnam, EVN) and petroleum (Petro Vietnam) sectors. Their political and economic clout is huge, obviously and this is not going to change anytime soon. If one looks at the genesis of the Rural Electrification Administration (REA) or Tennessee Valley Authority (TVA) or the Interstate Highway System in the US, it is against the same paradigm. Only a public-sector entity has the resources to build out (and often maintain) major infrastructure. The water sector, too, is largely government-owned, but unfortunately poorly-managed.

As the free market forces expands and consumers demand better reliability (and accountability) a shift will occur in proper accounting for costs in these arrangements.

For example, the electricity sold to consumers and industrial users is anywhere from 30 to 50% of the COST to generate this electricity. By forcing the tariffs to an artificially low level, consumers are pacified, but not incentivized to conserve electricity. In addition, the loss of revenue makes it difficult to fund the build-out of the electricity infrastructure and invest in cleaner technologies.

EVN delivers about 50% of its electricity from hydropower stations, which is “green” from carbon point-of-view (but damaging in other environmental ways). The topology of Vietnam, coupled with its relatively rich water resources, makes hydro a good option. The concern is that the nation’s rising electricity consumption and the eventual build-out of the hydro energy (there are only so many rivers to dam) makes the development of coal-fired plants the more attractive near-term option.

As for other resources, the wind conditions in VN are favorable, particularly along the southeast coast and wind farms are coming on-line. The problem with wind, as in other places, is that the cost would have to be subsidized. Nuclear? Just this past March, the US and Vietnam signed an Memorandum of Understanding (MOU) to engage in development of the peaceful use of nuclear power. Apparently, it’s not an exclusive club as Japan, France, China, South Korea and Canada have signed similar agreements.

Whatever the outcome, and there are multiple scenarios that all are affected by different inputs, the one overarching concern is the effect of climate change on the country. It is estimated that the SE Asian nations, most at risk when it comes to climate change, will need to spend upwards of 6% of their GDP coping with climate change effects. The key, again, is implementation of programs to physically cope with the effects and, unfortunately (or fortunately, if one looks at opportunities) there are few projects that are ‘in the works’. This is a commentary primarily on the central governments priorities, which at the moment are focused on maintaining the vision of improved economic opportunities for its citizens. At the same time, it is conceivable that the populace will be demanding clean water, safe air and long-term health.

The Mekong

Take a little sticky rice--a gelatinous goo-gob about the size of a baseball-- and toss it in a wok of super-heated peanut oil. If you have two ladles and the right technique, in about five minutes you’ll have the largest Rice Krispee in the world.

The ball is cut with scissors and used to roll up a bit of the fish with some nước mắm (fish sauce) and elephant ear fish.

 

Maybe it’s a little the same with business in Vietnam; the place sticks with you, but it’s bound to get hot and hopefully it’s not just filled with empty space, but has some “meat” to it.

Book-ending our trip with a visit to My Tho and Dragon Island in the Mekong River gave us the opportunity to see both ends (north and south) of the imperiled environment, as tourists anyway. The Red River in the north flows out to the Gulf of Tonkin. The Mekong flows through an expansive delta to the South China Sea.

The trip down the river has been documented in this space before (http://acbcert.com/blog/ Vietnam Four Stories.pdf) but not with the poignancy as we learn more about the envi ronmental threats.

 

As there are few wastewater treatment plants in Vietnam, much of the pollutants from the urban areas, not to mention agricultural runoff and other surface contamination, ride the rivers to the oceans (not unlike our own beloved Chesapeake Bay.) The key to our engagement is to find ways to work with the Vietnam public and private sector to develop meaningful projects that will bring a benefit to the country as a whole and to the people individually.

As Jim Winkler with DAI pointed out during our visits, “what is the role of the private sector and can it deliver on its commitments?” Vietnam is losing its competitive edge because of basic problems with its infrastructure, which could potentially cost up to $350B to address and upgrade. But, before that can happen, the regulatory process has to be in place in order to secure investor confidence, which means the country needs to develop a concise “deal flow” and a good track record. Implementation.

Driving back from the Mekong along Highway One (a 50 kM stretch...an amazing experience when you’ve done the kidney jarring local roads) gives a sense of the future of Vietnam. Certainly, 30 or even 20 years ago no one would have imagined a 60+ story skyscraper going up (with a “Hyundai” banner) in the middle of Saigon.

Now, the nearly-finished building greets the incoming traffic, which is routed along a greenish-black canal that serves as a colon for the city. So you have paradox and contradiction. On the one hand, an emerging vibrant country with exceptional promise. On the other hand a nation with natural beauty scarred by environmental wounds. It will take a full-press on every level to get the balance right.

Hopefully, at the end of the day, some good will come of it. The industry of the individuals--the cyclo drivers, entrepreneurs, cooks, cleaners, new professionals and tour guides--is inspirational. We gotta try.

Xin cam on

Mike Violette

for more info visit... http://www.vietnamenvironmentalforum.com

Mike Violette
ACB & Washington Labs

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