Comparative Analysis of Water Sector Reforms
Tracking Progress in Asia and the Pacific
Phase 1- Assessing Water Sector Policies and Reforms - Country Briefs
Viet Nam
Vietnam is undergoing rapid economic growth in association with the Government's steps to develop an open market economy. Water resources are consequently meeting increasing demands (Vietnam is the world's second largest rice exporter, for example), while at the same time is under increasing stress from quality degradation. Water resources management recently has been transferred to the Ministry of Natural Resources and Environment, signalling evolving perceptions of water in national development.
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NATIONAL POLICIES AND REFORMS
Sector review and strategy development is ongoing, with a National Water Resources Strategy to be formulated during 2004. The Law on Water Resources, passed in 1998, embodies important policies although some gaps need to be filled and implementation of the law is not yet fully effective. The "apex" National Water Resources Council is becoming increasingly active as the senior coordination/advisory body.
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WATER RESOURCES MANAGEMENT
Progress in WRM is mixed. Assessment of social and environmental effects is legally provided for, but the extent and effectiveness of the process is not clear, and adverse effects seem to be downplayed. Decisions with regard to projects generally are taken at a high level, with some internal discussion among government bodies, but there is increasing public debate about large water sector projects. Flood mitigation is highly developed, although predominantly structural in nature, and progress is being made in forest/catchment/wetland conservation. Water allocation mechanisms, the availability of water-related data, and the management of water quality are areas requiring more progress.
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IMPROVING WATER SERVICES
In most service-related elements of the ADB Water Policy, limited progress has been made to date. Services generally are provided by the state, with limited autonomy, accountability or responsiveness to customers. In public irrigation systems, poor or variable service delivery discourages beneficiaries from paying fees, so that a high level of subsidy (or system deterioration) is required. (It should be noted that there are many small irrigation systems that are managed by water users or local authorities, with no government involvement; there has been limited progress to date with PIMD or IMT). Some limited private sector investments are being made in water services.
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CONSERVING WATER
Water services are heavily subsidised and tariffs are not well structured to encourage efficient use. Cost recovery to maintain infrastructure is included in policy but is not effectively implemented, and regulatory mechanisms in general are at an early stage of development. The benefits of public participation in project planning and operation increasingly are recognised, and participation is a feature of NGO and IO-funded projects, but implementation in general is at an early stage. Similarly, public education and information on water issues is beginning, especially in regard to water supply, but is not yet systematic in the water sector as a whole.
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PROMOTING REGIONAL COOPERATION
Vietnam is an active member of the Mekong River Commission but there is still little cooperation with PRC in the Red River basin. Some progress is being made with joint projects, engagement with other countries, and collaboration with regard to management of shared waters, although Vietnam tends to manage resources on a unilateral basis.
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FOSTERING PARTICIPATION; CAPACITY BUILDING; NETWORKING
Participation of civil society and government-community partnerships are weakly developed, and most water-related activities are carried out by government. Gender-related issues in regard to WRM largely are neglected. Capacity building is well developed in regard to training and education for higher level officials, particularly in engineering, and increasingly is built into IO-funded projects. There is limited networking, although Vietnam participates in international activities organised by organisations like MRC and UNESCO.
