Environment and Climate Change

1 Viet Nam: Environment and Climate Change AssessmentThe Asian Development Bank (ADB) is preparing sector assessments, thematic papers, strategies, and road maps to help align future ADB support with the needs and strategies of developing member countries and other development partners. A thematic paper is a working document that addresses a crosscutting theme to help inform the development of country partnership strategies (CPSs). This Environment and Climate Change thematic paper highlights development issues, needs, and strategic assistance priorities of Viet Nam and ADB, focusing on environmentally sustainable growth during the 2012 2015 CPS period. It analyzes priority development constraints, the government s strategy and plans, other development partner support, lessons learned from past ADB support, and possible future ADB assistance.

2 The product serves as a basis for further dialogue on how ADB and the government can work together to tackle the challenges of Climate Change and environmental sustainability in the coming the Asian Development BankADB s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region s many successes, it remains home to two-thirds of the world s poor: billion people who live on less than $2 a day, with 828 million struggling on less than $ a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional in Manila, ADB is owned by 67 members, including 48 from the region.

3 Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical on recycled paperEnvironment and Climate Change AssessmentViet NamAsian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, in the PhilippinesEnvironment and Climate Change AssessmentViet NamPrinted on recycled paper 2013 Asian Development BankAll rights reserved. Published in the Philippines. ISBN 978-92-9254-131-6 (Print), 978-92-9254-132-3 (PDF)Publication Stock No. RPS135693 Cataloging-In-Publication DataAsian Development Bank. Viet Nam: Environment and Climate Change City, Philippines: Asian Development Bank, Environmental management. 2. Climate Change . 3. Viet Nam. I.

4 Asian Development views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB.

5 Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of :In this publication, $ refers to US ADB Avenue, Mandaluyong City1550 Metro Manila, PhilippinesTel +63 2 632 4444 Fax +63 2 636 orders, please contact: Department of External RelationsFax +63 2 636 and Figures ivCurrency Equivalents vAbbreviations viAcknowledgments vii I. Introduction 1 II. Environment and Climate Change in Viet Nam: Issues and Challenges 2A. Drivers of Environmental Degradation and Climate Change 2B. Viet Nam s Natural and Mineral Resources 4C. Predicted Climate Threats 5D. Impact of Climate Change on Development 7E. Transboundary Issues Linked to Environmental Management and Climate Change 11 III.

6 institutional Framework for Environment and Climate Change 12 IV. Environmental and Climate Change Mainstreaming 17 V. ADB s Support Program 19 VI. Development Cooperation 22 VII. Mapping an ADB Strategy for Viet Nam Operations 24 VIII. Moving from Strategy to Action 27 IX. Guiding Principles 31 Appendixes1. Review of Climate Change Scenario and Impact Assessment Studies 362. ADB Country and Regional Assistance for Environment and Climate Change in Viet Nam 413. Climate Change Donor Assistance 484. Funds Through ADB for Carbon Finance, Adaptation, and Environmental Initiatives 515. Globally Available Funds and Facilities for Carbon Finance, Adaptation, and Environmental Initiatives 52 References 54ivTables and FiguresTa b l e s1 Key Climate Change Scenario and Impact Assessment Studies 62 Predicted Climate Change Impacts in Viet Nam 93 Key Government Strategies and Plans on Environment and Climate Change 134 ADB Approach to Climate and Environment Activities in Viet Nam (by Sector)

7 32 Figures1 Carbon Dioxide Emissions in Viet Nam by Sector, 1980 2030 22 Areas under Inundation in the Mekong Delta Region of Viet Nam in 2100 under an Assumed Sea-Level Rise 73 ADB s Strategic Approach to Environmental Management and Climate Change 26vCurrency Equivalents(as of 12 December 2012)Currency Unit = dong (D) = $ $ = D20, Asian Development BankAFD Agence Fran aise de D veloppementANR agriculture and natural resourcesAusAID Australian Agency for International DevelopmentCCWG Climate Change Working GroupCIF Climate Investment FundDONRE Department of Natural Resources and EnvironmentEIA environmental impact assessmentGDP gross domestic productGHG greenhouse gasGMS Greater Mekong SubregionGMS EOC GMS Environment Operations Centerha hectareIFPRI International Food Policy Research InstituteIMHEN Institute of Meteorology.

8 Hydrology and EnvironmentIPCC AR4 Intergovernmental Panel on Climate Change Fourth Assessment Reportkm kilometerLao PDR Lao People s Democratic Republicm3 cubic meterMARD Ministry of Agriculture and Rural Development MOC Ministry of ConstructionMOIT Ministry of Investment and TradeMONRE Ministry of Natural Resources and EnvironmentMOT Ministry of TransportMPI Ministry of Planning and InvestmentMRC Mekong River CommissionNGO nongovernment organizationNTP-RCC National Target Program to Respond to Climate ChangePMR Partnership for Market ReadinessPRC People s Republic of ChinaREDD United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing CountriesSEA strategic environmental assessmentTA technical assistanceUNDP United Nations Development ProgrammeUNFCCC United Nations Framework Convention on Climate ChangeviiAcknowledgmentsThis report was managed by Lauren Sorkin, Environment and Climate Change specialist, Viet Nam Resident Mission (VRM) and Pradeep Tharakan, Climate Change specialist, Southeast Asia Department (SERD), Energy Division.

9 The report was written by the Asian Development Bank (ADB) and the International Centre for Environmental Management. Guidance and support were provided by Tomoyuki Kimura, country director, VRM; Ancha Srinivasan, principal Climate Change specialist, and Richard Bolt, advisor, Office of the Director General, SERD. Useful comments were provided by the ADB social development team, including Bart Edes, director, Poverty Reduction, Gender and Social Development Division, Regional and Sustainable Development Department; Suphachol Suphachalasai, economist, Economics and Research Department; and the Greater Mekong Subregion Core Environment Program team led by Sanath Ranawana, senior natural resources specialist, SERD. Thanks are also due to Pham Quang Phuc, Environment officer; Huyen Le, Environment and Climate Change consultant; and Dang Huu Cu, external relations officer; VRM; as well as to the staff of the Department of External Relations for their support in publishing the Introduction1.

10 The Asian Development Bank (ADB) has approved its country partnership strategy for 2012 2015 to support the Government of Viet Nam (ADB 2012). The objective of this paper is to provide guidance to ADB s Viet Nam country program on applying ADB s corporate strategies on Environment and Climate Change and responding to lessons learned in Viet Nam s operations to improve ongoing and future priority sector activities. The paper does not attempt to give a comprehensive scientific analysis of Environment and Climate Change in Viet Nam; rather, it is a review of major Environment and Climate Change issues in Viet Nam and their impact on socioeconomic development. It summarizes these major issues, reviews government initiatives to address them, and discusses ADB strategies for continued technical support and investment.