30/06/2016
Investment in natural resources and environmental protection, waste management and pollution control and environmental improvement consists of investment activities relating to the wise use and conservation of natural resources and activities that prevent, mitigate and remove adverse impacts of anthropogenic socio-economic activities on the environment.
In development investment, the Government has focused on investments in natural resources and environmental protection. Investment activities have, to some extent, met objectives: improvement of the living environment quality; enhancement of development efficiency and avoidance of GDP losses; livelihoods of future generations.
Investment in natural resources and environmental protection consists of investment expenditures and recurrent expenditures on development of technical infrastructures in prevention and overcoming of natural resources and environment incidents and assurance and promotion of natural resource and environmental protection. Budget spent for the natural resources and environment sector preliminarily consists:
Non-business environment expenditure: For ministries, sectors and localities: recurrent expenditure budget used for environmental protection for ministries coming from the state budget expenditure, in 3 years (2011, 2012, 2013) is 510.0 billion dong, 730.0 billion dong and 980.0 billion dong respectively. According to Decision No. 151/2006/QD-TTg by the Prime Minister, central budget expenditure accounts for 15% of the total annual non-business environment expenditures, 85% belongs to the local budget expenditure.
Development investment budget: investment budget is balanced for natural resources and environment protection allocated for ministries and sectors (details in attached 2010 - 2014 data table)
ODA
State budget for Ministry of Natural Resources and Environment, Ministry of Agriculture and Rural Development (ministries that are mostly relevant to natural resources and environmental protection) consists of domestic and foreign sources in 2010, 2011, 2012 respectively: Ministry of Natural Resources and Environment: 880.479 billion dong, 1,252.216 billion dong and 1,473.936 billion dong; Ministry of Agriculture and Rural Development: 3,153.848 billion dong, 3,678.894 billion dong and 3,589.162 billion dong.
Investment state budget in 2011, 2012 and 2013 corresponding to clean water and rural environment sanitation is 353 billion dong, 400 billion dong and 433.0 billion dong; forest protection and development activities (5 million ha reforestation project) is 610 billion dong, 720 billion dong and 820 billion dong.
Vietnam Environmental Protection Fund gave the loan of approximate 500 billion dong for investments in wastewater treatment system of paper factories and in construction of urban waste treatment factories;
FDI investment in environment
Currently there is no official data on investment of enterprises in environmental protection activities. Surveys on enterprises by the General Statistics Office of Vietnam in 2002, 2004 and 2005 showed that: the rate of surveyed enterprises investing in environmental protection facilities and works in this period was very low, only 4-7% of the surveyed enterprises. Majority of Vietnamese enterprises are small and medium; investments in environmental protection must be based on own fund while this fund is very limited.
The private sector participates in providing many environmental sanitation services: wastewater treatment, solid waste treatment and collection, etc. However, currently there is no official statistics on the investments of the private sector.
These above funding have been used for enhancement of the state management capacity on natural resources and environment; renovation or improvement of the national monitoring network on natural resources and environment; strictly handling of serious environmental polluters and overcoming the impacts of hazardous chemicals used by the American during the war in Việt Nam; collection and treatment of solid waste, treatment of wastewater; protection and development of forest; conservation of biodiversity; management of river basin and other tasks. Particularly, thanks to ODA, many projects relating to rehabilitation and treatment of environmental pollution requiring big investments have been implemented, contributing to reduce adverse impacts of the economic development to the ecological environment.
Annex: 2010 - 2014 data on investment (Source: Planning handbook, DSENRE, MPI)
|
Year |
Content |
Natural Resource and Environment Sector |
Water supply and waste and wastewater treatment |
||||||
|
Total (billion dong) |
Central |
Local |
Ratio % |
Total (billion dong) |
Central |
Local |
Ratio % |
||
|
2010 |
Whole sector |
2468.9 |
450.0 |
2018.9 |
2.1 |
4,647.8 |
280.0 |
4,367.8 |
4.0 |
|
|
Domestic |
1301.5 |
400.0 |
901.5 |
|
4,199.9 |
230.0 |
3,969.9 |
|
|
|
Local budget and balance addition |
807.4 |
|
807.4 |
|
3,733.9 |
|
3,733.9 |
|
|
|
Outstanding balance for ministries, sectors |
400.0 |
400.0 |
|
|
230.0 |
230.0 |
|
|
|
|
Targeted support and addition |
94.1 |
|
94.1 |
|
236.0 |
|
236.0 |
|
|
|
Foreign |
1167.4 |
50.0 |
1117.4 |
|
447.9 |
50.0 |
397.9 |
|
|
2011 |
Whole sector |
2,954.3 |
580.0 |
2,374.3 |
2.1 |
5,609.6 |
260.0 |
5,349.6 |
4.0 |
|
|
Domestic |
2,274.3 |
550.0 |
1,724.3 |
|
4,894.6 |
260.0 |
4,634.6 |
|
|
|
Local budget and balance addition |
1,598.2 |
|
1,598.2 |
|
4,351.0 |
|
4,351.0 |
|
|
|
Outstanding balance for ministries, sectors |
500.0 |
500.0 |
|
|
260.0 |
260.0 |
|
|
|
|
Targeted support and addition |
176.1 |
50.0 |
126.1 |
|
283.6 |
|
283.6 |
|
|
|
Foreign |
680.0 |
30.0 |
650.0 |
|
715.0 |
|
715.0 |
|
|
2012 |
Whole sector |
3,553.2 |
800.0 |
2,753.2 |
2.1 |
6,343.9 |
300.0 |
6,043.9 |
3.7 |
|
|
Domestic |
2,713.2 |
750.0 |
1,963.2 |
|
5,553.9 |
300.0 |
5,253.9 |
|
|
|
Local budget and balance addition |
1,861.2 |
|
1,861.2 |
|
5,076.0 |
|
5,076.0 |
|
|
|
Outstanding balance for ministries, sectors |
600.0 |
600.0 |
|
|
300.0 |
300.0 |
|
|
|
|
Targeted support and addition |
252.0 |
150.0 |
102.0 |
|
177.9 |
|
177.9 |
|
|
|
Foreign |
840.0 |
50.0 |
790.0 |
|
790.0 |
|
790.0 |
|
|
2013 |
Whole sector |
3,763.3 |
601.0 |
3,162.3 |
2.2 |
6,181.6 |
222.0 |
5,959.6 |
3.7 |
|
|
Domestic |
2,936.8 |
540.0 |
2,390.8 |
|
5,610.1 |
222.0 |
5,388.1 |
|
|
|
Local budget and balance addition |
2,048.2 |
|
2,048.2 |
|
5,106.0 |
|
5,106.0 |
|
|
|
Outstanding balance for ministries, sectors |
500.0 |
500.0 |
|
|
222.0 |
222.0 |
|
|
|
|
Targeted support and addition |
388.6 |
46.0 |
342.6 |
|
282.1 |
|
282.1 |
|
|
|
Foreign |
826.5 |
55.0 |
771.5 |
|
571.5 |
|
571.0 |
|
|
2014 |
Whole sector |
3,529.3 |
615.0 |
2,914.3 |
2.2 |
5,855.9 |
205.0 |
5,650.9 |
3.7 |
|
|
Domestic |
2,689.3 |
545.0 |
21,144.3 |
|
5,085.9 |
205.0 |
4,880.9 |
|
|
|
Local budget and balance addition |
1,892.0 |
|
1,892.0 |
|
4,700.8 |
|
4,700.8 |
|
|
|
Outstanding balance for ministries, sectors |
545.0 |
545.0 |
|
|
205.0 |
205.0 |
|
|
|
|
Targeted support and addition |
252.3 |
|
252.3 |
|
180.1 |
|
180.1 |
|
|
|
Foreign |
840.0 |
70.0 |
770.0 |
|
770.0 |
|
770.0 |
|
Remaining, weakness
Due to subjective and objective reasons, investments in natural resources and environmental protection have not been paid adequate attention to; therefore, in recent years, many natural resources have been exploited to scarcity, wasted and ineffectively used which are affecting next generations. Natural environment in many areas is being destroyed, polluted and degraded seriously and at an alarming rate. The policy system and legal tools are not synchronized to integrate 3 development areas: economic, social and environmental protection in the socio-economic development plan in an effective manner. Sustainable development objectives have not been paid appropriate attention. In reality, in recent years, investments from the society in general and from the state budget for natural resources and environment are very limited.
The unbalance between the demand and ability to mobilize investment funds, particularly investment from the state budget, while pressures on economic development and addressing of social issues are very high, this requires sectors and provinces to focus more funding on activities that have direct impacts to the socio-economic development, such as establishment of new enterprises, development of projects on transportation, irrigation, schools, hospitals, office construction, etc. pay less attention to invest in natural resources and environmental protection. The budget for this sector is the outstanding amount after being allocated for other works and projects.
On the other hand, the selection of investment projects in natural resources and environment protection is not based on specific criteria, is mostly emotional in prioritisation of projects; the distribution of investment funds for projects in the natural resources and environment protection is scattered; investments are not consistent and in line with plans; investment projects usually last many years that cause thrift and reduce the efficiency of investment funds.
In addition, funds mobilized for investments in natural resources and environmental protection are very low and the decentralisation of investment management in natural resources and environmental protection is not efficient. The Government does not have specific mechanisms to promote and mobilize funds from domestic and foreign economic components for investments in the natural resources and environment sector. Foreign aids for natural resources and environmental protection accounts for a small proportion in the total ODA fund.
Private investors are increasingly participating in providing environment services. This is a positive trend that is appropriate with the socialisation orientation of environmental protection. However, private enterprises have limited financial capacities and scientific and technological knowledge; therefore, the implementation of large-scale projects faces a lot of difficulties.
Compared other countries in the region and in the world, investments for protection and development of natural resources and environment in Việt Nam is very low. State budget spent on environment only accounts for 1% of the total state budget since 2006, of which the investment in environment is about 3 - 4% GDP in China and ASEAN countries.
Nguyễn Tuấn Anh
Deputy Director - Department of Science, Education, Natural Resources and Environment
Ministry of Planning and Investment
