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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?
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
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
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
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.
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.
for more info visit... http://www.vietnamenvironmentalforum.com Mike Violette |
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