Vietnam Environmental Technologies Export Market Plan

Deforestation continues, however. Slash-and-burn
agriculture is still practiced in many areas, with harvesting
cycles too short for forests to be replenished. Land
designated for protection is still used by rural farmers
for grazing livestock. State-owned forestry enterprises
have been allowed to continue operations, because
officials are concerned about increasing unemployment
in the already poor rural areas.
The government has initiated several action plans to
try to readdress the problem. The 10th National Assembly
approved an forestation plan covering 5 million hectares.
Two million hectares will be protected forest, and 3
million hectares will be used for industrial purposes. The
government’s goal is to have 14.3 million hectares of total
forest area by 2010, an increase from the current 9.3
million. Total funding needed for the project is estimated
at $2.5 billion.
There are concerns that this plan will be as unsuccessful
as the plans implemented earlier in the decade, such
as the “Greening the Barren Hills” plan of 1992.
According to the World Bank, this plan failed because
the day-to-day concerns of local populations were not
considered. Incentives to protect or manage the resources
in a sustainable manner did not outweigh the immediate
need for income, shelter, and fuel. As a result, natural
forests areas have continued to decline.
Liberating Vietnam’s agricultural sector and dismantling
its rural cooperatives have led to tremendous growth
in farming. Since beginning its renovation process in
1986, Vietnam has moved from a net importer of rice to
the world’s third largest exporter. Regions that once only
grew one crop of rice a year now can harvest two or three
crops. This productivity growth has been accomplished
through the use (and overuse) of fertilizers and pesticides
(Table 11.2).
Anecdotal evidence from farmers in the Mekong Delta
point to declining fish stocks due to the overuse of
pesticides. The Ministry of Agriculture has conducted
surveys of farming families in the north, south, and
central regions of the country. Use of pesticides in all of
Table 11.2 Pesticide Use in Vietnam, 1980–1999
(tons per year)
Year
Volume
these regions has increased by 80 percent to 90 percent
since 1986.
Studies conducted in the Mekong delta and in the Red
River delta show that pesticide levels in the water, soil,
air, and produce, are higher than standards set by the
National Environmental Agency. In a survey of vegetable
growing areas in Khanh Hoa province on the south central
coast, 25 percent of the vegetables sampled had pesticide
levels 2 to 6 times higher than standards. Thirty-nine
percent of 423 soil samples taken showed levels 2 to 40
times higher than standards.
11.2—Market Opportunities and
Competitive Situation
The forestry sector has received a substantial portion
of overseas development assistance (ODA) commitments
over the past five years. Many of the largest projects in
the sector were developed in the mid-1990s, with
implementation in 1997 and 1998. Table 11.3 shows some
of the largest forestry ODA projects to date.
While attention is still focused on improved management
of Vietnam’s natural resources, ODA and government
funding trends are moving away from forestry
toward urban pollution problems (water supply, drainage/
sewerage, wastewater treatment, etc.).
Coastal Wetlands Protection
A $65.6 million coastal wetlands protection and
development project is expected to help restore the
Mekong delta’s depleted coastal mangrove swamps. The
six-year project will develop sustainable resource use in
six provinces, including Ca Mau, Bac Lieu, Soc Trang,
and Tra Vinh provinces. About 60 percent of the
mangrove coverage in these provinces have been lost
since 1984 because of logging and uncontrolled shrimpfarm
development. Project financing will come from a
$31.8 million loan from the World Bank, $11.3 million
loan from Danish International Development Assistance
(DANIDA), and $22.5 million loan from the Vietnamese
government. The project is scheduled to be carried out
between 2000 and 2006.
1984 10,000
1992 21,400
1995 30,000
1999 130,000
Source: Ministry of Agriculture and Rural Development.
42 U.S. Department of Commerce, International Trade Administration