Vietnam Country Environmental Analysis
Vietnam Country Environmental Analysis
Draft Concept Paper
Background
Vietnam’s economy doubled in size during the last decade, while its poverty rate was halved. Exports are growing by 20 percent per year, and Foreign Direct Investment (FDI) inflows by 10 percent per year. Future rapid economic growth (an expected doubling of GDP in the next 10 years) and associated industrialization and urbanization, and Government’s huge investments in infrastructure pose significant pressures on the environmental sustainability of Vietnam’s development.
Environment sustainability is included in Vietnam’s Comprehensive Poverty Reduction and Growth Strategy (CPRGS) and the accompanying Vietnam Development Goals, which together with other government’s strategies and action plans identify steps to address the environmental challenges inherent to rapid economic growth. The assistance programs of the Bank and other donors are explicitly aligned with the CPRGS. The Bank’s policy dialogue with Government has been broadly focused on public financial management, administration and state-owned enterprises (SOEs). Engagement on environmental policy issues has been modest, but its coverage in the Poverty Reduction Strategy Credit (PRSC) program is improving. PRSC3 (2004) included new policy actions on the national Law on Environmental Protection and regulations on pollution control, in addition to land and resource management issues that were included in PRSC1 and 2.
Government is raising the profile of environmental sustainability in its national and international dialogue. In 2003, Government created the Ministry of Environment and Natural Resources (MONRE), initiated separation of regulation of some natural resources from that of users, and approved the National Strategy for Environmental Protection (NSEP). In 2004, the EIA requirements for project approvals were increased and the Strategy for Sustainable Development (Agenda 21) was adopted. MONRE is now drafting amendments
Draft Concept Paper
Background
Vietnam’s economy doubled in size during the last decade, while its poverty rate was halved. Exports are growing by 20 percent per year, and Foreign Direct Investment (FDI) inflows by 10 percent per year. Future rapid economic growth (an expected doubling of GDP in the next 10 years) and associated industrialization and urbanization, and Government’s huge investments in infrastructure pose significant pressures on the environmental sustainability of Vietnam’s development.
Environment sustainability is included in Vietnam’s Comprehensive Poverty Reduction and Growth Strategy (CPRGS) and the accompanying Vietnam Development Goals, which together with other government’s strategies and action plans identify steps to address the environmental challenges inherent to rapid economic growth. The assistance programs of the Bank and other donors are explicitly aligned with the CPRGS. The Bank’s policy dialogue with Government has been broadly focused on public financial management, administration and state-owned enterprises (SOEs). Engagement on environmental policy issues has been modest, but its coverage in the Poverty Reduction Strategy Credit (PRSC) program is improving. PRSC3 (2004) included new policy actions on the national Law on Environmental Protection and regulations on pollution control, in addition to land and resource management issues that were included in PRSC1 and 2.
Government is raising the profile of environmental sustainability in its national and international dialogue. In 2003, Government created the Ministry of Environment and Natural Resources (MONRE), initiated separation of regulation of some natural resources from that of users, and approved the National Strategy for Environmental Protection (NSEP). In 2004, the EIA requirements for project approvals were increased and the Strategy for Sustainable Development (Agenda 21) was adopted. MONRE is now drafting amendments