Institutional Aspect of Sustainable Development in Vietnam

Dr. Bach Tan SinhNational Institute for Science and Technology Policy and Strategy Studies

Presented atThe 2nd Asian Science and Technology Forum

September 8, 2006. Tokyo, Japan

Outline of Presentation

• Institutional factors influencing SD • Prospects of Science and Technology

related to institutional factors• Possibilities for cooperation in S&T policies

related to SD among participating countries

Outline of Presentation

• Institutional factors influencing SD • Prospects of Science and Technology related

to institutional factors• Possibilities for cooperation in S&T policies

related to SD among participating countries

Institutional Factors influencing SD

• Integrated approach in decision-making• Participation of citizens in decision-making

Integrated approach in decision-making

• Overview of SD process in Vietnam • Conceptual framework of institutional approach

to SD• Implementation of SD by Government,

Business and Civil Society

The emergence of environmental consciousness and awareness on SD in

Vietnam (1)• Phase 1 - Identification of environmental problems in

the 1980s• First State Research Program “Rational Utilization of Natural

Resources, 1981• VN National Conservation Strategy, 1986 but never approved

• Phase 2 - Increased awareness and institution building in the 1990s• The Nat.Plan for Env. and SD (NPESD) endorsed 1991 with

establishment of Ministry of Environment, LEP, DSEE/Ministry of Planning and Investment

• Vietnam Capacity 21 to strengthening national capacities to integrate environment into investment decisions : 1995-2000 (for planners)

The emergence of environmental consciousness and awareness on SD in

Vietnam (2)

• Phase 3 - Progressing toward 'SD‘ during 2000s?• 2002: Strategic Orientation for SD in Vietnam (Vietnam Agenda

21) and its report to Johannesburg• 2002: SD Report of Vietnam prepared by Civil Society • 2003: Vietnam National Strategy for Environmental Protection

until 2010 and Vision toward 2020.• 2005: new Law on Environmental Protection• 2005: Plan for Natural Resources and Env. Sector (2006-2010)• 2005: Establishment of National Council for SD (NCSD)

Domains

Dimensions

Government Business Civil Society

Cosmologicalor discursive

sustainableeconomicgrowth

sustainablebusinessgrowth

sustainablelivelihood andcommunitydevelopment

Technologicalor material

impactassessment

cleanerproduction/ecologicalmodernization

access to andcontrol overresources and monitorperf .of Gov and bus.

Organizationalor operational

Hiera. networkingwithformal/adminis.establishments

corporatist/com-panymanagement

public participationInterest group structured and looseformation

Conceptual framework of institutional approach to SD in Vietnam

The cosmological or discursive dimension

• Different basic worldview assumptions or beliefs concerning development, environment and their interrelationships, different interpretation of new doctrines of sustainability.

• Debates found in texts programs, books and articles.

• Tensions Gov/business and civil society - competing sustainability over development activities.

• Critique of alliance between two domains.

The technological or material dimension

• Practice (different ways) to achieve sustainability.

• Government: impact assessment as mechanism to integrating social, economic and environmental concerns into development planning, thus achieving sustainable economic growth.

• Business: cleaner production to pursue sustainable industrial development - ecological modernization.

• Civil society: access to and control over resources for sustainable livelihood and community development.

The organizational dimension (1)• Between theory and practice

- discursive and operational dimensions is the organizational dimension reflecting different strategies and organizational initiatives to translate concepts debated at discursive level into practical activities at technological level.

• Government: tensions within Gov. agencies regarding way to implementing concept of sustainable economic growth in plans & programs – Vietnam Capacity 21 Project and Vietnam NCSD to overcome the tension.

• Business: attempt to set up Business Council for SD.

The organizational dimension (2)

• Civil society: VN Association of Conservation of Nature and Env (VACNE), Public inquiry to environmental performance of enterprises in HCM City.

• Local community at grass-root level to manage their natural resources to sustain their livelihood, e.g. Water User Group in Thai Long Irrigation Project or

• Community and People's Participation to improve environment and energy.

• Local opposition against a development project in Ha Long City.

Integration perspective of SD by government agencies:

• Environmental degradation as ‘externality’problem, integration as conceptual solution, ecological rationality as key variable in social-economic decision-making.

• Impact assessment as way to integrate environment with development at project, program and plan level!

• Institutional learning towards integration principle.

Impact assessment by Ministry of Natural Resources and Environment (1)

• Technology assessment: (1) 1981 as narrowly defined hardware - characteristics: (a) result of assessment; (b) technical terms as technological level; (c) carried out by technicians.(2) during 1990s replaced by a new broader one :- defined as complex activities of systematical analysis of all positive & negative impacts including technical, economic, social and environmental aspects.

• EIA Concept: - regulatory instrument for appraisal: limitation associated with weak enforcement and monitoring. - integration instrument in decision-making for improvement of project development.- application at higher level of decision-making (strategic environmental assessment), e.g. industrial zones and regional development.

Impact assessment by Ministry of Natural Resources and Environment (2)

EIA development process• Phase 1: learning (pre-1990)

- academic scientists, education and training- ad-hoc & isolation from development planningLearning and make it work in Vietnam.

• Phase 2: formalization & implementation (1990-- gradual take-over by bureaucrats. - formalizing role of EIA in development planning after issuance of LEP and EIA regulations.- national network of EIA appraisal: (MOSTE/NEA;DOSTE). - National capacity in integrate environment intoinvestment decision – Capacity 21 Project at MPI.

Vietnam Capacity 21 Project

(1996-2000 )

EnvironmentalEconomic

NationalCapacityBuilding

Sustainable Development

Planning

DemonstrationProjects

NetworksPoliciesSkillsTools

Phase 1

Phase 2Hanoi Lam Dong Quang Ninh Energy/ Tourism

sector

Improvement of the Development Planning SystemAdjustment to Development Policies

Incorporating environment into investment decision by Ministry of Planning and Investment

Plan Preparation(socio-economic sector,

area/urban plans)

Draft Planincluding: environmentalguidelines and controls

Plan Approval

InvestmentPrograms

Programimplementation

InvestmentProjectsApplication for

investment licence

Investment decision

Assess Proposalagainst: environmental guidelines and

controls

Area EnvironmentImprovement Programs

Review and approval byenvironmental authorities

against: environmental guidelines and controls

Environment Action Planincluding: environmental guidelines and

controls

Mon

itorin

g an

d Ev

alua

tion

STAKEHOLDER

PARTICIPATION

Environment Study:including: environmental profile and

analysis of issues

Planning Process

Environmental Integration in Regional Planning

Preparation of Environmental Studies for Plans

Preparation of Urban Environment Plans

Economic Analysis in Environment Studies

Use of Economic Instruments in SustainableDevelopment Planning

Environmental Integration in Investment Projects

Plan Preparation(socio-economic sector,

area/urban plans)

Draft Planincluding: environmentalguidelines and controls

Plan Approval

InvestmentPrograms

Programimplementation

InvestmentProjects

Application forinvestment licence

Investment decision

Review and approval byenvironmental authorities

against: environmental guidelines and controls

Planning Process

Area EnvironmentImprovement Programs

Environment Action Planincluding: environmental guidelines and controls

Environment Study:including: environmental

profile and analysis of issues

Assess Proposalagainst: environmental guidelines and controls

Stakeholder Participation in Sustainable Development Planning

Area Environmental Improvement Programs

Sustainable Agriculture Improvement Programs

Local Environment Funds

Handbooks

STAKEHOLDER

PARTICIPATION

Mon

itorin

g an

d Ev

alua

tion

Harmonizing poverty reduction and environmental goals in policy and planning for SD by Ministry of Natural Resources and Environment (2005-2010)

• Objective: improved institutional capacity for env. policy making, strategy development and regulation.

• Outputs:– Development and implementation of SD and env. legal framework

with broad participation of people and stakeholders.– Improvement of institutional mechanism and capacity to integrate

poverty reduction and env. concerns into development policy and planning framework.

• Outcome: Economic growth takes into account env. protection and rational use of natural resources for poverty reduction.

‘Ecological Modernization’ (EM) perspective of SD by business:

• EM as a way to achieve ‘positive sum game’in business: restructuring business through integration of environment into the existing business system.

• Way of renewing business with different techniques to rationally exploit natural resources for maximizing economic profits.

Greening of the industry: A case of Vietnam’s Coal Corporation (VINACOAL)

• Why VINACOAL is interested in environmental protection?- Pressure from local communities and authorities

VINACOAL’s environmental strategy (1)

• Environmental strategy:- defensive strategy (compliance with law) due to:

(1) small market opportunities by environmental protection; and

(2) high environmental risk

VINACOAL’s environmental strategy (2)

• Effort to comply with regulations- establishment of its Environmental Management Centre with 30 peoples.- applying Integrated Environment Management for environmental monitoring and implementation of environmental policy.- applying a set of SD indicators.

• ‘positive sum game’ or “win-win” approach in the business.

Critique perspective of SD by Civil Society

• Critiques of mainstream development and search for alternatives of development– Critical journalists, writers, scientists, local

community organisers,

Institutional Factors influencing SD

• Integrated approach in decision-making• Participation of citizens in decision-making

Participation of citizens in decision-making : The case of local

opposition again development project in Ha Long City

Ha Long Coal Washing Plant

• Institutions involved:1. Hong Gai Company: design and construction of railway lines, water supply & sewerage system.2. BMCH (Bulk Material Coal Handling Pty Ltd.): design of the plant.3. EFIC (Australian Export Finance and Insurance Corporation) provide loan.4. MOSTE’s appraisal of EIA without consultation with local environmental authority (DOSTE).

Opposition process

• started in 1992 but have to stop after two years of construction due to opposition by local communities and authorities.

• opposition led by chairman of the Ha Long City with 14000 signatures (50% coal workers).

• decision of Prime-minister to relocate project out of city centre.

• company lost 1 million US$ for the construction of foundation.

Lesson from the Ha Long Coal Washing Plant

• consultation between stake-holders and negotiation in early planning process to manage conflicts at a level close to that at which they occur.

• local participation as way for expressing local concerns in decision-making.

Institutional Factors influencing SD

• Integrated approach in decision-making– Promoted and applied by governmental agencies,

e.g. Ministry of Investment and Planning, Ministry of Natural Resources and Environment (Capacity 21, Harmonization of poverty and environment for SD).

– Advocated by Business communities (integration of environment into the business development).

• Participation of citizens in decision-making – Promoted by civil society organizations.

Outline of Presentation

• Institutional factors influencing • Prospects of Science and Technology related

to institutional factors• Possibilities for cooperation in S&T policies

related to SD among participating countries

Prospects of science and technology related to institutional factors

• Strategic Environmental Assessment to incorporate environmental Concerns into development planning at higher level (program, regional plan, policy and strategy).

• Product life cycle analysis, clean technology and cleaner production.

Possibilities for cooperation in S&T policies related to SD among participating countries

• Innovation System– “Innovation”: activities and processes associated with

generation, production, distribution, adaptation and use of new technical, institutional, organizational/ managerial knowledge.

– Exploring patterns of partnership and participation of wide range of actors.

– Analyse institutional learning – finding ways to do things in new ways, changes in rules and games and behavior toward SD.

• Foresight – Involvement of wide spectrum of communities: research,

government, business and civil society.

Innovation system and ForesightInnovation system and Foresight

Feedback/Learning

People who understand

markets

Communication

People who understand

technologies

ConcentrationPossible Futures

Attractive Futures

Foresight Dialogue

Co-ordination

Consensus

Commitment

InnovationAnd

Competitive Advantage

Feedback/Learning

Knowledge

Information

Knowledge

Information

Corporate Innovation SystemCorporate Innovation System

Local Innovation System

Regional Innovation System

Sectoral Innovation System

National Innovation System

ClustersClusters

Thank you for your attention!