1. Dr. Dao Trong Tu
VNWP
Yangon- Myanmar 3/10/2013

2. CONTENTS
1. Water of Vietnam
2. Legal and Institutional Framework for Water
Resources in Vietnam
3. Financial Policy in Water Resources Management in
Vietnam
4. Identification of Financial Needs for Sectors in
IWRM
5. Recommendations

3. Vietnam and SEA countries

4. 1
WATER OF VIETNAM

5.  Country Area: 331.690 km2
 Population:
90 million people (2012)
 River system: 2,372 rivers/watersheds with length > 10 km,
13 river basins with area > 10,000 km2
 Water resources: 830 - 840 Billion m3/year
(63% of which from neighbour countries)
 Actual annual renewable water resources per capita: 9,700 m3
(Asia: 3.970 m3, World: 7.650m3)

6. 106º00'
104º 00'
110º00'
108º00'
Hµ Giang
Cao B»ng
Tr ung q uè c
m
G©
ng
S«
Lµo Cai
22º
00'
B¾ K¹ n
c
S«
ng
L«
S«
ng
Hå
ng
Lai Ch©u
S
«ng CÇ
u
Tuyª n Quang
Hå Th¸ c Bµ
S«
ng
§
Yª n B¸ i
µ
S«
ng
Hå
ng
S¬n la
S«
ng
§
S«
ng
M
·
River basins in Vietnam
úC
ï ng
Th¸ i Nguyª n
VÜ Yª n
nh
ViÖ Tr×
t
µ
22º
00'
L¹ S«ng KS¬n
ng
Hßa B×
nh
H- ng ng Luéc
S«Yª n
Phñ Lý S«ng
S«
ng
§
S«
ng
M·
¸y
Nam § Þ
nh
l µ o
H¹ Long
H¶i Phßng
Cö
aT
h¸
i
Trµ Lý
Th¸ i B×
nh
Cö
aB
aL
Ninh B×
nh
20º
00'
B» n g Gi a n g -Kú Cï n g
Fl v = 12.880 k m2
W = 8,92 k m3
am
L
B¾ ôc N
c Giang
S«ng
B¾ Ninh
c
Hµ Néi S«ng § uèng
Hµ § «ng
H¶i B×nh
S«ng Th¸ iD- ¬ng
B×
nh
Hå n g v µ Th ¸ i B× h
n
Fl v = 168.700 k m2
W = 137 k m3
¹t
S«ng Chu
Thanh Ho¸
20º
00'
S«ng Yªn
M· -Ch u
Fl v = 28.490 k m2
W = 20,1 k m3
S«
ng
C¶
Vinh
i Ó
Hµ TÜ
nh
Th ¹ c h H· n
Fl v = 2.660 k m2
W = 4,68 k m3
n
§
«
18º
00'
Lam
B
S«ng
C¶
Fl v = 27.200 k m2
W = 24,2 k m3
18º
00'
n
S«ng
Gia
nh
g
§ ång Hí i
N
S«ng
LÖ
hËt
GIANH
FLV = 4.680 KM2
W = 8,14 KM3
H- ¬ n g
Fl v =2.830 k m2
W = 5,64 k m3
§ «ng Hµ
S«ng Th¹ ch H· n
QuÇ ® Hoµng Sa
n ¶o
S«
ng
Bå
HuÕ ¬ng
H
ng
S«
Vông CÇ Hai
u
§ µ N½
ng
Th u Bå n
Fl v = 10.496 k m2
W = 19,3 k m3
16º
00'
16º
00'
Tr µ Kh ó c
Fl v = 4.680 k m2
W = 8,14 k m3
S«ng Hµn
S«ng Thu Bån
Tam Kú
S«ng Tam Kú
Qu¶ng Ng· i
S«ng Trµ Khóc
S£ SAN
FLV = KM2
W = KM3
14º
00'
Ko n e
Fl v = 2.980 k m2
W = 2,58 k m3
Kon Tum
ng
S«
Ch ó d Én
n
Sa
Sª
Plei Ku
14º
00'
S«ng Kon
Qui Nh¬n
Hå Nói Mét
Ia
Flv : DiÖ tÝ l- u vùc
n ch
Ay
un
W : Tæ l- î ng dßng ch¶y
ng
S«ng C¸ i
S«
ng
Ba
Sr ª Pè k
Fl v = k m2
W = k m3
Tuy Hoµ
§µ
S«ng
R»ng
h
Hin
S«ng
Bu«n Ma Thuét
re k
S po
S«ng
Ba
Fl v = 13.900 k m2
W = 2,58 k m3
Nha Trang
12º
00'
12º
00'
§ µ L¹ t
Hå § ¬n D- ¬ng
S«ng BÐ
Hå DÇ TiÕ
u ng
m
p u
T©y Ninh
c h i a
S«n
gB
Ð
m
Vµ
ng
S«
ai
§ å n g Na i
Fl v = 42.655 k m2
W = 30,6 k m3
ai
10º
00'
Phan ThiÕ
t
gN
ån
g
«n
n
Ti Ò
Sg.
S«n
gV
µm
Cá
T©
y
T©n An
T©n An
Cao L· nh
S«n
Long Xuyª ng TiÒn
VÜ Long
nh
R¹ ch Gi¸
S Th¬
CÇn«n
S«ng La Ngµ
Thñ DÇu Mét Hå TrÞAn
Biª n Hoµ
Hå ChÝMinh
§
ng
S«
§
Cá
Cöu Lo n g
Fl v = 795.00 k m2
W = 520,3 k m3
S«ng
§
c ¨
Phan Rang Th¸ p Chµm
ång
N
§ ång Xoµi
S«ng Vµm Cá
Vòng Tµu
Mü Tho
S«ng Cöa
TiÓ
S«
u
ng S«ng
Hµ BÕöa Tre
C
n §¹
m
Lu
i
«n
g
Trµ Vinh
gH
Ëu
u
HË
Sg
Sãc Tr¨ ng
B¹ c Liª u
Cµ Mau
10º
00'
Cö
aC
un
gH
Çu
Cö
a§
Cö
Þh
n
aT
An
ra
nh
§Ò
S«ng Chµm Chim
Nguån: Hå s¬ Tµi nguyªn n- í c ViÖ Nam
t
N¨ m: 2003
104º 00'
QuÇ ® Tr- êng Sa
n ¶o
106º00'
108º00'
110º00'

7. WATER OF VIETNAM
Long-term average annual precipitation
Long-term average actual renewable water
resources
1.980 mm/year
830-840 billion m3/year
Actual annual renewable water resources per
capita
% of total actual renewable freshwater resources
withdrawn (MDG Water Indicator) (FAO
AQUASTAT)
Groundwater withdrawal as % of total freshwater
withdrawal (FAO AQUASTAT)
9 220 m3/inhabitant
Total area equipped for irrigation (FAO FAOSTAT
and AQUASTAT)
4 600 000 ha
9.3 %
1.7 %
% of the cultivated area equipped for irrigation
(FAO FAOSTAT and AQUASTAT)
45 %
% of irrigation potential equipped for irrigation
(FAO AQUASTAT)
49%

8. 2
LEGAL FRAMEWORK FOR WRM
IN VIETNAM

9. Laws and Under Law Documents:
 Law on Water Resources 1998 and revised in 2012;
 Law on Environmental Protection (2005)
 Law on Land (2003)
 Law on Fisheries (2004)
 Law on forest protection and development (2004)
 Decree on River Basin Management (2008)
 Decree on Dykes (2006)
 Ordinance on Exploitation and Protection of Irrigation
Works (2001)
 Law on Inland Waterway Navigation 2004,

10. LEGAL REFORM (Cont’)
 Decree 120/2008/ND-TTG: River Basin Management
(12/2008)
 Decision No. 277/2006/QD-TTg dated 11/12/2006:
National Target Program for clean water supply and
sanitation in the 2006-2010 period.
 Decree No. 149/2004/ND-CP dated 27/07/2004: Permits
for water resource exploration, exploitation and use, or
for discharge of wastewater into water sources.
 Decision No. 05-2003/QD-BTNMT dated 04/09/2003:
Licensing of surveying, exploiting of under ground Water
Resources
 Decision No. 104/2000/QD-Ttg dated 25/08/2000:
National Strategy on Rural Water and Sanitation
Strategy up to 2020

11. Institutional Arrangements
 National Level
 National Water Resources Council (2000): National Policy
Advisory Body: apex body
 MONRE (2002): National Water Resources Policy and
Management (Surface & Ground W)
 MARD (1995): Irrigation, Water related Disaster
Management (Flood, Drought), Rural Water Supply:

12. Institutional Arrangements (cont.)
 MoIT (2002): Hydropower Development:
 MoT: Inland Water Transportation

MoC: Urban Water Supply

MoH: Water Hygiene

MPI: National Water Investment Planning and Policy

MoF: state Budget control

13. Institutional Arrangements (Cont.)
 Provincial Level:
 DONRE: Provincial Water Resources Management
 DARD: Irrigation, Water related Disaster Management, Rural
Water Supply in province.
 DoIT: Hydropower Development (small hydropower <30 MW):
 DoT: Provincial Inland Water Transportation
 DoC: Provincial Urban Water Supply
 DoH: Water Hygiene
 DPI: National Water Investment Planning and Policy
 DoF: Provincial Budget Control

14. Functions and Task of Institutions Relating to WRM
Ministry
Ministry of Natural Resource and
Environment (MONRE)
Ministry of Agriculture and Rural
Development (MARD)
Functions and tasks of water resources management
State management of water resources, meteorology and
hydrology, synthesis and unification of sea and island
management
State management of agriculture, salt production, aquaculture,
irrigation, rural development, dyke management, flood control
Ministry of Industry and Trade (MOIT) Development of hydropower, construction and operation of
hydropower dams/plants
Ministry of Science and Technology
(MOST)
Ministry of Construction (MOC)
Ministry of Transport (MOT)
Ministry of Health (MOH)
Ministry of Finance (MOF)
Ministry of Planning and Investment
(MPI)
Development and provision of guidance on the application of
water related criteria
Implementation of water supply and drainage plan in urban
areas, industry zones and residential areas.
Management and development of navigation, waterway
structure and harbors.
Management of criteria relating to clean water, sanitation and
food safety
Provision of guidance on water related fees and taxes.
Synthesis of investment projects on water resources and
submission of plans, cost estimate of water resources projects
and water related damage mitigation projects

15. 3
FINANCIAL POLICY IN WRM IN VIETNAM

16. Financial Principles in WRM
Vietnam also applies principles to finance WRM:
1.
Polluter Pays: creates conditions to make pollution a costly
activity and to either influence behavior (and reduce pollution) or
generate revenues to alleviate pollution and compensate for
welfare loss.
2.
Beneficiary Pays: allows sharing the financial burden of water
resources management. It takes account of the high opportunity
cost related to using public funds for the provision of private
goods that users can afford.
3. Equity: a feature of many policy frameworks for water
management. It is often invoked to address affordability or
competitiveness issues, when water bills, driven by the first two
principles, may be disproportionate with users' capacity to pay.
4. Diversification of budgets for water investments (Irrigation,
hydropower, water supply, environment protection etc)

17. Financial Policy in WRM
Law on Water Resources 2012:
Financial sources:
 Water resources tax and fees and charges
 Licensing for granting the water resources rights
 Compensation and fined for the State due to violation on the field
of water under regulation of laws.
Who pay:
 Organizations and individuals to exploit the water have to pay
for granting the water exploitation in following cases:
 Water exploitation for business hydropower generation
 Water exploitation for business activities, services and nonagricultural production
 Groundwater exploitation for industrial trees growing, livestock,
fishery cultivation with large scale.

18. 4
IDENTIFICATION OF FINANCIAL NEEDS
FOR SECTORS IN IWRM

19. What Kinds of Investment for WRM ?
 Non-Structure/Software
 Administrative system
 Building capacity
 Public awareness
 Structure
Irrigation
Water supply
Hydropower
River Training
Environmental protection
Recreation
Water related disaster

20.  Water Administrative Financing:
 Water resources policy and administrative management:
Water sector policy, planning and programmes;
 Water legislation and management;
 Institution capacity building and advice;
 Water supply assessments and studies;
 Ground- water, water quality and watershed studies;
 Hydrogeology. Excluding agricultural water resources.
 Water disaster: developing knowledge, natural risks
cartography, legal norms for construction; early warning
systems; emergency contingency stocks and

21.  Infrastructures
 Agricultural water resources: Irrigation, reservoirs,
hydraulic structures, groundwater exploitation for
agricultural use.
 Hydropower: Hydroelectric power plants
 Water resources protection: surface waters (rivers, lakes,
etc.); conservation and rehabilitation of groundwater;
prevention of water contamination from agrochemicals,
industrial effluents.
 Inland transportation:

22. Water for Uses
– Domestic Water Supply (Urban and Rural)
– Agriculture
– Hydropower
– Navigation
– Recreation
– Ecosystem and Environment
– Other needs
Protection and Mitigation of Water Related Hazards:
– Water Drainage in urban and rural ares
- Water quality Control
– Flood and Inundation
– Water born Diseases
– Others

23. Money Stream of Investment in Water Resources
(2002-2011)
No.
Users
Annual average
government
expenditure
(million constant
2010 US$)*
Percentage
(%)
Annual average
official
development
assistance gross
disbursements
(million constant
2010 US$)
Percentage
(%)
1
Hydroelectric power plants
577.63
50.6
29.54
12.3
2
Agricultural water resources
197.54
17.3
37.29
15.5
3
Basic drinking water supply
and basic sanitation
172.12
15.1
31.92
13.3
4
Water supply and sanitation in
large systems
144.97
12.7
80.54
33.5
5
Disaster prevention and
preparedness
31.00
2.7
24.36
10.1
6
Water resources policy and
administrative management
11.15
1.0
12.79
5.3
7
Water resources protection
6.16
0.6
9.02
3.7
8
River development
0.00
0.0
15.06
6.3
1140.57
100
240.52
100
Total annual average

24. Water Related Investment in Brief
During 2002 to 2011:
Water related investment: 22.9 % of total Gov,’s expenditures
1) National budget:
o
o
o
o
2) ODA:
US$ 1, 140.57 million/year
Hydropower:
Irrigation:
Water supply & sanitation:
Others
50.6%
17.3 %
27.8%
14.3%
US$ 240.52 million/year
o
Water supply & sanitation
46.8%

25. Main Activities of Water Investment

26. Water Supply
 2006 – 2010 Programme: mobilized budget US$ 1.4 billion,
(91.6% of planned budget), 3 times higher than mobilized
budget in the period of 1999-2005. Objectives of program
has met.
 Capital mobilization diversified in comparison to many
other programs, Gov.; Private, people and International
one
 International support: around US$ 200 million (14.3% of
the total mobilized fund).
 Soft credit: US$ 450 million (32.6%).
 Private and people: US$ 170 million (12%)
 Government and others: US$: 580 million (41,1%)

27. Agriculture Water Finance policy in future
Targets to 2015:
 Policies on water pricing and responsibilities to ensure quality of
water service :
 70% of O&M fully recovered by 70% of urban service providers;
 25% of O&M fully recovered by 50% of irrigation service providers;
 A resource management charging regime developed and
implemented for equitable recovery of costs of water resource
management activities.
Orientation to 2020:
 100% of O&M fully recovered by all urban service providers.
 50% of capital and infrastructure replacement costs fully recovered
by all major urban service providers
 50% of O&M fully recovered by 75% of irrigation service providers.
 100% of attributable resource management costs being met
through water resource use charges.

28. Expected …
2012-2015: US$ 1.35 billion
- State budget: US$ 210 million 4.100 tỷ đồng
(15%);
- Local governments: US$ 155 million (11%);
- International aids: US$ 410 million (30%);
- Credit fund US$ 450 million (33%),
- People contribution: US$ 155 million (11%).

29. Information….
Vietnam has 753 urban areas (2011):
2 Special urban areas: Hanoi & Ho Chi Minh City
 3 Cities urban categories I: Hai Phong, Da Nang & Can
Tho.
 8 Provincial cities categories I: Hue, Da Lat, Nha Trang,
Quy Nhon, Buon Ma Thuot, Thai Nguyen and Nam Dinh.
 11 Provincial cities categories II: Bien Hoa, Ha Long,
Vung Tau, Viet Tri, Hai Duong, Thanh Hoa, My Tho, Long
Xuyen, Pleiku, Phan Thiet and Ca Mau.
 47 Urban areas categories III: towns or provincial city
 42 Urban areas categories IV: towns, township,
&townlets
 640 Urban areas are categories V that are townlets

30. Information…
• 2006-2010 : Rural people enjoyed clean water
about 52 million (or 75% of total rural people
in Country) increasing 13,2 % in comparison in
2005...
Where budget come from?




State budget: 12%,
Soft credit: 40%;
International fund: 20%;
and People: 28%

31. Drinking Water Supply and Sanitation

32. Investment in Irrigation
 4 decades (80’s up to 2010): Investment for highly intensified
cropland systems: 6125 trillion VND ( about US$ 3.2 billion)
 100 large to medium scale hydraulic works. More than 8000
other irrigation systems used mainly for paddy field
irrigation.




2005: US$ 120 million
2008: US$ 240 million) ;
Irrigation subsided budget:: US$ 82 million
Up to 2010: > US$ 850 million) (48% of budget for
agriculture sector) -7 times increased.
 For Mekong Delta 2012-2050: VND 171.700 billion (USD

33. Investment for Agriculture in Mekong Delta
(Irrigation and DRM in Climate Change)
2006-2012: 14,870 billion VND (USD 700 million) under
MARD’s management and about 4,970 billion VND (USD
2,485), under local authorities.
Averagely, investment for Mekong delta about
USD 110 -120 million/year.
• Under climate change, in period of 2012-2020 and
vision to 2050: 171,000 billion VND (USD 8.59 billion) of
that,
• Sea dike construction: USD 248 million;
• Improvement of river dyke of USD 588 million;
• Irrigation canal system of USD 249 million,
• Flood control projects of USD 249 million

35. Irrigated Agriculture

37. Investment for Hydropower
Up to 2013:
- Contribution of hydropower to state budget:
Annual: VN 6.500 billion (US$ 330 million) by tax, fees
etc.
- Estmated investment ranging from US$ 20.5 billions to
US$ 27 (1 MW x US$ 1.5 - 2 million)
 Annual investment abount US$ 1 to 1.3 billion/year.

38. Hydropower Potential
 Range of among 14 richest potential of hydropower
in the world.
 Total theory potential : 30-35 thousand MW install
capacity.
 Technical potential: 18-20 thousand, now, 85 %
exploited.
Install Capacity (2013):
- 2013: 13.694 MW

39. Investment for Environment Protection
Estimated investment demand for solid waste treatment in the
various periods
TT Content
Unit
By 2015
By 2020
Municipal Hazard ous Municipal Hazardo us
solid waste solid waste solid waste solid waste
1
2
3
Demand for
treatment
Demand for
investment in
treatment
Total demand
for investment
tone/day 35,990
2,860
39.196
2.726
VND
billion
7,200
31.300
6.800
VND
billion
28,800
36,000
About US$ 1.8 billion
38,100
About US$ 1.9 billion

40. Areas Flood Trans-boundary may occur

42. Water Disaster Investment 1996-2000
Region
Government
International Total
Red River
2730
1643
4373
North Moutain
1362
192
1554
North Central Part
1739
718
2457
Central Coasatal Part
1093
122
1215
338
37
375
9
2
11
2749
77
2826
10020
2791
12811
Central Highland
South East
Cuu Long Delta
Total

44. Investment for Urban Drainage
Last 10 years: drainage system in urban areas has had large
investments for upgrade and expand the drainage systems;
reduce local flood and improve sanitation conditions.
Out of 100 cities and towns, 32 urban areas had ODA projects
that have been implemented with different progresses.
Total investment: VND 32,000 billion (US$ 1.6-1.8 billion);
However, still many shortcomings in drainage systems in urban
areas.

45. Mitigating Floods and Droughts

46. Investment for Urban Drainage in Future
Total investment demand for drainage (including committed
projects) by 2015 is around: VND 85,000 billion (US $ 4.3 billion)
focusing on addressing main tasks:
In 2011 – 2015:
– Developing master plan for drainage in urban areas from
categories III to higher ones that have not got master plan yet.
– Continuing implementation of the approved urban drainage
projects with the funds committed by donors.
Total investment demand for development of
drainage: VND 70,000 billion (US$ 3.5), focusing main tasks:
In 2015 -2020:
– Investing in completion of wastewater treatment stations and
sewer routes for collection in large cities such as Hanoi, HCM
City, Da Nang (VND 30,000 billion or US$ 1.6 million).
– Continuing to invest in drainage system for urban areas of
categories from IV to higher. (VND 40,000 billion or US$ 2.0
billion)

47. Water – related Disasters
Note:*Water-related disasters’ within the scope of this WCB study do not include droughts.

48. Water Intensity in Industry

49. Conclusions and Reconmendations
 Large investment but more focusing on source
generating rather than distributing
 Waste and pollution control weak
 Self-sufficiency improved but far from the target
 Irrigation fee backing and confusing
Study constrains
 Assess to data difficult
 Data are managed/stored by different
agencies/sectors and not consistent

50. XIN CẢM ƠN
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