VIETNAM

THE QUANG NINH AND PRONG

COASTAL REGION

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kt~- their provinces and the: mare advamd regions itn East Asia,

There ;m: many cases around sk wodd when wise use of diversc msouxes such a9s those

trbjWivse The Quang

regian while mzrirnlainiag aq'pulr t dimssiasls with the soit loan ~sources; ta sup efa'rcieftt manna, based

(As of M a ~ h 1,1999)

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Bank af Thailand

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INTRolaucTrosu:: THE CHAMGERC C ~ N T E ~ - - - ................................................................................... A CMALLWCE AND AM OMRTUNITY 1

......................................... PART ORE: FOUR Pl LLAW Jp9R CoMPltEHWSfVE DEVIEWPMENT 7

................................................................ ring J ~ & $ c I ~ 12n$ Tmde 8

PART mV0: f&T10N% WR &LCTIOPY AND ..... .......................... THE ROLE OF THE I N ~ R N ~ T I O M A L C O ~ M N U N ~ .,,, ., . 5 7

Table 1 +

Table 2. TabIe -3. Table 4. Table: 5. Table 6, Tabk 7, Tabls 8, Tabfe 9. Table 10. Table I, 1,

Ii-eanorni~ icmwth SteeB Industry Cerneat IndwtPy Fo~igrm Diwt Inwstment in Hai Phang and Quafig Ninh

Is far Eronamic sad Spatial Phning 1s ftx Endusr~ a d ~ m d e '

Pmpmls far Uham Deve

s for s fsp

' Figwe I . Annual J& Grwvth in ffai 1996-1 938 Figme 2, Papugion Cmwth in Mai F h g and Ha kmg Citie

Box 1. 3Box 2. Bax 3. Box 4. Box 5- Bllix 6. Box 7. Box 8. Box 9. Box f 0. Bax 11. Box 12, Bax 13, Box 14.

Box IS. Box I& BOX 17. h x 1; 8. Box 't 9. Box 20. mx 221.

Amex A Anmx A- f Table A* I .

Table: A-2. Table A-3.

.BOXES

Raduct.ivi@ md Emplaymmt in Coal Mining Policies ta Pramate Efficient IndwiMat D%v~lopment Wsi &mg% Shoe Induw 'FRe Apptmcb t6 In 'Fhr: Triangle: A Ke r Striltea Key A~fhne for Emf~yweng InrlusPry and Tmde Tredrs in Ebe Regiun's U r h kkra8 Urbm Solid W s k Maage:asrenl in Hai m a g "'Small Bricks" - A E.3ei&hhaod Approach to Municlpl I ts TDurism bjectf'ass fba Qanang Nit& atxi Hai %ong Key Actions for Sminablle 'burism

Jntegmt ent The Phi 1 Zme Managmat of the BaWe;;ns lBay bgim Cw'I Mine D i s ~ h a r p Key ktim fur Envirmmmta1 %a: Permanent 1n)Eabitwts of R

nt Initiatives: Lessons Lamed Study on Emtimnmtatal Managewent far Ha Lang Bay

Infomtian on Viaham, Qu~n& Ninh and W&i Phgng Vietnam at a Glance Population and Economic Gmwth of Q m g Ninh md Hai Fh~ag M n w

* ( I 991-1898]

Key Eavi~mmslatbl Issues - !3 and Hai Phanp, Region

for €he BaFkgmd Boc

A itlaiqrae raad Emrt.omi~aHIy %mpmtlt: worn, mown thmu ezr;l&d heritage, the .ke.ang Nit& aKta Hai sang a;; activities that befiefir the lives af miillians af Vietnamneso, Ammd the wrurjcl,

the am is famous for Ha Lmg Bay and its ~w&isu9&tlg gealogicsn!, C U ~ twml, s m i ~ and bialagjcnl wlues. But the p t w caastaX mgim, including Ha Ewng and Hai Phmg cities, i s bta h o w as an eiconsbmic centgz olf g~dh for notthem Vietmm. The mast h m d i c .a~ala@ca1 festures ~f the region. are ciwtered in Ha k8ng Bay ("'Bay af Desmding f)ra@~ns*"), mi exmdtiniary spectacle afabout 2,fl00 limeme islands. Bssed on tkir mique geol~gic f m t i o n s and natketie qualities, TJNESCO d a ~ Z a ~ d an wee of abut 800 af these islands a World Hed&g~ Site in 1994. kdjacmt to- #he World Meaibgi? Site i s Cat Ba Islnn8, two-thirds of which is FFmigttcaM a national park, (Sat Ba emtains a number oaf im~wta t : bidogical fmhlses including a primate: species that is f ~ w d n a w h else in the warld.

An Integral Part @f the Victnatmaae Essnaany. Both Q m g Tljinh and Hai P h g have contributed siwifi~~catl almost all af Vietnam's c-B has been a driving fww of &e pGnci;ll, cconemy far dacedcs. As t Qrgrof3aia~ pmik $a& for some 85,000 worker%. The cm&l region*$ idustrial canter is EHai

cantidaetes ta play a centrat rote as a grcsvider ofport S M T ~ C ~ S fw the north. In recent iwdustry* indrmding cement and steel, has, b e p i rt give way to c x ~ ~ - a . i e n t s d Ifgb which currently tea& in job creation aad has akhcted irnpc&hne levels o f~ ivaxe bntrestment,

A Core (Zarnpoais~l st the Nartbrm Eca~cmnie TrPsngte. The simificancr: af this greater cmstaE e g i w led ta I& inclusirm in the Northem Ec~nornie akiangle, abehieh consis& aP the ma between Hanoi, Hsi Phwg and Rn Law, Master plans far the segian focus on three mas af octivi5: eeratinued industdalizatiQn through newt inwsms~ls in power, sW1 and chemicob, md ind~~tritlf park dcwlapm~~t; additional Qnnspart inhsmcase with the cansmstinn af WEW

m d ~ , POPZ fwififies and ait-parts; and tourism dcvelspmeat with new hotets and ~;~Eco~PTI;@s+

Wirxh and Hai P h g m~.l region ppgvitks

potential grawth; since District. En aa&casff uaf gmw& E'R Mans lQi over &e five-year ppesid md 15 pmmt since 1996,

Asia Cdsis is ?%?tnam. Vi 's emx~orny is currently in difficulty, the m g i d &$is that k t Asia in t 937, Annual ill

&-ass D o ~ ~ c ; hd11CL (GDp) is down significantly &am eZre pr4osrs teve:Is af8-8 p e n t and

b e f i @ from &E economic Vietnam's ~ma&el

Investment was

induMaf izatim, add

small and d i m

Fsut CampXemm@q Pillars. Camphdre dertslrrpmient af the Qua& Nih and Hai P b g cm%m% m@m could be b a d (m actions to. suppar4 faur wmplemeattary pillsrrs for sustairaod Img-rwm a wlgl~yment gmmkn pwrty alIeviatiata:

should also 'be caslsi$c~& far diversibtion af- industrid mtor tbugbi th mmmmt af the mfe of industrial mnes ;and: ewaluai~an af tlxe patentiill role of emerging induwm in the regim.

cmpemi~n with Hai

Pmmdng Sus~*uebEe r"m~&~lt, Tkw: region's unique I B B ~ ~ ! beauty anid gicoxknity to major %~opulatian wtm are with the potentiat ta yield subu;tmtiwl Iwng-am

fit^ frm the pmvisian cr ces, They are arguably h&mmal to a

remhex@am the b y via 8 popular W h ~ e m 4 1

ptential and get beyond ianprov@m&ttts in paduct

Rate ~f the Itatewsth1~~1 Community. Whik h e national, povincizll md 1maI .ts w a l d h e wwibZli.ty for a d irnphmeth sfm A&?I)B

id rcqnrirrr w e i l q ~ n i d suppart &om a3 fin~czcial indtutlms, bilateral

nam-gwmmahl wganimtions. Support for in~r@5:arrsents from

sectw inv%Sters would have to be mobilized, acring bnrh guarantees, apart credits and other mlakd mwlmanism provide suppar& -6sr s ~ l m t d planning acBiIpi.tics; GIobP

W B a Wwld QP intema~mwl d

cis1 and emomic mlums,

thsa lmg-tern ps- ail&atim will ultimaIte1y depend ~ t a tmp!aymie:n~ creation i~r growth stars. Q~ang Ninh and Hai Phang have important ackrmagle5: milria8 to be dmlapcxl in the form of ~C~W-CUS$ l a h and pxi rn i ty to iatemarri~~at ma&&.

+ S : Y ~ ~ @ ~ R F P~i@d@ Invmmt~mk Tfie restricted amilaMliq of investment fur& man&&% that only c;ll.eMly s~xmd, well-justifid priority investments cam be suppfied, whether large BB small. inv=stm6:n& should sorengtlm the govern ability to basic inbtnrctrare and facilitate the ability s f fhc private Irct invest infmsmtcbre a u l d be encaumgd, h v i s b n s skodd and energy for the establishment of ~otasdmaus and se capaeie for mst recovery. Support eauld be prmided fix welt-targeted a~tims in indu~$)F, urbm infmstmcture, m d transpo$ parts a d h h a s , S p i a l m i s m c e would be mqaired to amist in activities for institmtioml tkning, m m t u G n g and modmiatl@a, and in~reased eficileny in existing h~iiitiea.

* m w ~ f i w Acdazts to AwaId Mk@r qiafblr~ CDS& nimwkiw tke @onstslliab OR available rewarrces fsu bath itl,~esmmts and recurrent ieu~ts, a prmium should tae g l a d on undertaking gmvsntive xtians to avoid majar future costs. $tick actians include pfiaaning measures t@ avoid and/or reduce p#eat.ial problems though tools suah a% integatd ~ ~ a s h l m e m ~ m t mb w i a 1 assessmat. Anoher critical arm for preventive &&on is the d u r n ofm~pti~n dsEs iawd with tBtg Mmpoa af ail and @$her hirssardous @ tbc World Heritage Site and in the main harbors, camplam 4 &ills in ~il-spill contingmcy planning nnb cm~tgmey addition, signiamnt, coat savings could be achbtrd, and the generatian rdoui3 and mlid reduced, dcyltim pre~mtt-m md wwtr-minimktion program far tk key af s w m

+ Di~1?pdciflc~tIsn offbe Irtw~Irn%nsSSiro~~~ The Initi~tive would support merrlsures for divcmificatian of thz imxshent strarlegy by facilitating m k c e d private sector inkmst in the regian and tgt addressing constraints domestia and foreign inuestws. in a sang% of activities both large oad small. Given its high p&%mtial far direct slsd indirect cmpfayxsamt ~mtiora, spxial emphsh wauld be p l w d m diversiftcatSon DF&P rotatism idusw, including ~atxfaily pl md well&ign%d public and private seetot. invesbnenb in &aditimal tourism, s ~ ~ h as imrovem~nt o f k h i I i ~ w at €kt Ba

ecsbugsm and to imorease the m;gs of tourist attm~tiuns fw Vi , Chi@@% anid other international tcaurisfs, in addition, the rapidly expoding trade and invesb%nZs links with China, especially in the Mmg Cai am, sbuld k carefially esamined.

Rapid C A R . Vittnm h&6 achieved isnpmssive ecmmrni~ p W h , &vmp;ing 8-5 gerccnt fmm 1990-97. While agriculturaI

averaged 1 2.9 percent and semi

p q n t . of GDf" in 1987. Fafglip h v a r' ahut9 of GDP in t 997, Dam

GDP tci 9 percent by IW7. In di@b, During &is wid., Viemm

f rice, G~griedtuml prdu gwwimg at OW 25 ts in the standard ofliving.

CromEr Treads fr @ang Marh and HA Pbong. Fmm 1990 to 1897, mnamic p w t h in the- no-sm provinces of percent per year. Fn Hai P h national average, and indussi.at groWR 33 p slightly Bai@er thm tk aatiaml average. In slighay positive, and i n d u ~ a l gr~wth in the wceaf., hawwa, was m a

High fir C ~ h a GDPC MiEe GDP pes cspita irr Quang Ninh was lower than h natiad aver- kt 1990, it was abut T 7 pmt hi@xz by 1997. ln Hsi Phmg, GDP p a capita war% ab~trt 30 percent hi& t h th the aoional average in 19963. Wi @is&bu~es at Ierast 5U pe~:

+ From 1994 tct .Q X9P"B, the situation

Indugtrial growth w more the 20 geiced a yew* fueled w S;eCtor g.owrh slowed to half o f hdvstri

economic growth was fueled by large capitat Infiows; credit to SOBs.

GDP pas cap& 5997 [ US$) Sector GDP growth 1990-97 {per year)

&ricdQM~r~~LryEfi.~hede5 lrodustry S @ N ~ ~ S

5e&s shsm d GtlP 1a2' AgriWral[MeWfi&d~t

Ompact of i he Crisis an Rqgioad Gmwtb. The Esst Asian crisis bas charged dsamticsl.lfy the trends in ecatlomic growth in the region. After three decades o f remarkable expsian, the

and Thailand began c a ~ a w . Singape, Rong Kang and Taiwan, d q i g financial q s t n s and high wwtpva, nwwthclrt;ss saw th ir mpmf markets and cantract ais well. China and Vie&- mnsition economics p r o ~ c t d by ecrni-closed capfbl srcmwnts and law ratios sf hrt-ewn debt ta reserves, f d added challenges ~f diminished prqct s . for areports and ~api&d inflaws.

Red~cF.irtn in TmBa +The spread of t%le crisis has paaicuiar@ detrimental la t h ~ trade swtar, which was fhre engine sf growthfor %st Asia' nr expansion, Oversll mde in the region, as a share of GDP, increased considaably from IS percent in 1330 to 59 pepcent isr 1995, Exports grew by over 10 p e m t p@r yr~ar in virtually every quarter. Tkm, in 1996, trade crashed and growth startcd demlefating dmmpiatfy; by the first quarter of 1996,

in East Asia and reeptivc rates in China a d the Newly Industrializ tk see~nd q sf 19196, aport grmptl.a hits r m a W dow, wi& rhe e x c ~ t i o n of China and khc PhiFipim.

Dedime: h In&~--11)xoal Trade. In fhe fast years, inm-regionat trade has made am inmasing cdntriiution to &aow@t. In 19% fhehe sbfe of h*-regiansl trade awlopmM febr about 40 gmeent af total apOTts3 up from 32 pemmt in 19630, reflecting an h m s e d s ~ c i ~ I i z a ~ o n amon8 c u m ~ e s in the region. Pafter July 1997, these mde li& b m e a lfabili& kcause they provided a perfect charnel far the? mtagian to spread. It i$ e s m ~ a l &at iratm-regiansl Lrade link bec~mte again hth an asset and e means to spreading economic rao~wy.

urzrrarlngs The East Asia etisig also senses as a mtalyst for uadedaking miticat re! an~ira l mtm-, in cwparate management a& i~ relaions

i~ and Pke private sator, C~mentries h u g k a u t the aqka se! d@ing new,

kz brier mia l safety nets, which kfep11d mshian the imgaMs of maaansic daline on the rnmt gpagIw~mb1~ parts of tk population, and would a l l w cornpnim to bke skps

eimtly and improvimrg ~ h c i i ~ i i t y S

t b paw of refom amferaks a d the int respaards pmibvely, th maon will find itrself800~ m &E m d to t o m ~ r y .

Asfa W h in VIetYlam. Vieham% ee the ~gioaaai ~rlsis $kt Zlregm to hit &s

G m s Domestic t (GDP) is doaw si$mific;antly from the growth in export wmirsgs is de~lining from a high of 25 pefeena The imfract af tk crisis has come at a tim whm the C M K ~ ~ was reap mbstatltive hef"a% from the mnomic m f o m that were firsf intrudusied a d d e ago. As a M ~ g i h a l ecmsmy, Viewam% marks and export- orientisdm was leading w riidng iracomes arid h, and Foreign Direct Investment was king cornmiad at impressive il$:vab. nt has male cle-ar* in order f i r these frendb $0 br: sustained, economic and s must cmiinw and even accelerate, In this regard, the East Asia crisis presentti policy makers at the national and partvincial levels to review their approach

e smtw and ieaviro~lmmhl issues, N m, and are likely to

selecriv~ly-4-r risk borniag non~caatlpcti~we and in region.

Slawer Emaomic ~rawfb, While Vietnam has not h ~ n affected to &E same degree as other East Asian comaiss, the Vi8lmam~;se wowmy is not insulated f ~ a m the ntgadvse an growth and inveammt- The East Asian ms&et ~CCQLSPIYS fix almost 70 pe;rcare of Cri exports, md is the s o u ma of FDf and mare than anc-&ird of inwnatjanal visitors. 'Ptze: monl~mic 1988 i~daite at first sight a relatively gosd perfommce, It may not have been a resuit sf strong dornmtir, and fore6 d for Vietnam's g d s and miccs , hawever, biit rathw a build up ofinvtnt-casis eqxcidfy ndustrisl se~tor, If the aunromic growth prirndly refleets a build up in inve't.l;rsty, @a:

prospects for 1999 rnay be even less optimistic &am paviously anticipated. factm that point in this dirgetian:

wth. Export g r d slowed to almovst a m in 1998, down from Qf indusMai products,

textiles and shes .8 p m t in 1998. Tkis inam= in textil- and

crisis. to off%€ by a mbusr

increase to Europe: md the United Sh,lies,

- a~urce sf wmm irc p w & , s h e d in 1998. New wsnsnilFrapmb by half, from abut $2 billion & less that $1 bi,iflisn, Up mxil 19 aceumulaEbxt FllX ~amnaimenb were disbusd within Wm

behind, If di 1988 shauld 3-4 times higher than

they were* 'This indisam ghat many invwtm hve pspstpnwi their imsmat plans in

tight of tk East Asian clsis. If this sentiment cmtinues, FDI disbumment wuId %$I fhther.

d##rp.'i~zlzh'm @fa Di~ciImir in PDI fh- GPW Donr~d~kic #awstm@rcMs I~Ilfmfdd Oumab~, d T~urism, me potential 81 i~t: FDI eaaaait be . FDI has in recent y m ts&l go@$ domcs~ic

investment irs has an sfmazt 25 percent shas of instima1 oa$@ and output fmm FBI inda~kfiat paarnts has k e n growing 2-3: times fastw &an oatput P i mte md non-state industry, The FDl sector is also a significa~ mntributot ta exports, with about US$2 billion in 195)&. The reducticm in FDZ disbi~arsements in 1998 had suhantial

ovemtl grass &mastic inuestt9lmt in Vietn~rn for the year, &ms invefsfisnent ed to hitve deeained f i a bhl of US37 b-rltion mcM in 1997 f28 w e n t sf

GDP). Even if a further decline in FDI can be g~vented in 1999, emnmisr growth is likely to slaw further unless damcstic savings am! i n v e m t picks up sig~ificantty, T~urism is alga affected-intcmationaJ tauri~t tlrriv~ls declined by 12 percent in I, 998, f'm 1.7 million in 1997 to 1 .S miliien in 1398, a Z t ~ an annval i n c r m ~ of 31 pemtmt daring 18Q2*97. This is partially affix% by an increase in d~mcstit: tsurise (by 17 pem-cermt, up f m 8.5 miltion in 1997 to 10 rniIlion in 1338).

lmpsst ir Qztamg Nirrtr sad Rsi Pfimg;, Like much a%Vimnm, $kc-e the amt of the- crisis Qmg Ninh and Hai Phang gmvincw have mpe~enced significantly Iower md a cts!lapt: in foreign and domestis investmentt Expxf,ed ~ 6 w t h mtes have fallen drrtmslticalty. SO& are: fmruding themse!ves incmsingiy won-eumptttieivc, gtrd #here is greater stress cm h k s due to nun-pwfomiag toms, There is; a need fa altcmte awibble capitail mote eficicnot;g~, & revieit: exisring d%velopmant plans and ta devefol, a fmnamtwk for stmtrgic grawth. While tvezy effort must be made to encourage trhc renrm of FDf, as an engine af growh, it is uxacernin whethw or when it wilf reach its pre-crisis Ievcls. In sl.lori, Ihc Qumg Winh and Wai Phong coma1 region, ns the resf of Yiemam, faces a rmo~se-consmined finae~ial eprvironmmt. T?K proGnces will havc ta adjust tol lower levels at: FDZ and p l a ~ e m t c r emphasis sn mobilizing dommtic invcrrsrment. Two wankples of the impact are J ~ S tbllows,

I, Quscfg NSTclt-fI~d C~ld i i t~ed I R P ~ Q ~ ~ I P C ~ . L * ~ of CpuC. Economic growth in Qumg Niab has Bccn and still i a tied ho Be coal seefor, which cantributes two-thirds ofthe province's industrial GOBB A k strong wl sector output and export go~vlh thraughaut most of the IWOs, mX expart volume fiI% by 15 p a in I: 99'7-1888, largely from e slatlap in demand in Esst Asia, With dmlitaing exports, total sales wlut in tb ctlal -to$ fell by as mdeh as 25 t dtePling this perid. hmomic growth in 1998 was ~Rictecl aeersdi~tgly. Aans for rxpnsion in cement: mteeti;an am unBHk1y to rectify sikuatian due to the gIut in the market fos this cawmedi@, Hawever, to~%dm m y have ~at~wfial to grow du(: t~ sdrowg demand by Chinese visirors

e Hai Pbgng-fndusfriai I~dusuiaE growth in Hai P h g is reported to have increased by E 8 percmt 1993, goWh in the shahsie and ~ernent. =tars a for ME than wwthird~ ~f irmdus~al outpnt gmwth, fueled by a sharp ilac~easc in sho~ txpm and ouxpur &am a new cr=mmt ptasxt that c~mmencs$ production. The effwts af the crisis an light industr;r a n eacpted b $eeome mare avideat in 186'41, but over thc fanscr knn the outlook f ~ r many of Hai Phong's msfnufae~urem is very bright,

PorslaSf olf Corxewm Goals* The Qmg Ninh a d Hd PfPoag eamhl ~ g i m has great ~r mtatiaf, and is destined ta ppl t rate in the waaomy of

realizing their wisian far compsehensive d likely to sham a sea ofmmman gwls: alfevisriag pave, fas&mtg corn ng cfi~iemk urban centm, a d aswing mvimmtut4el har@:@ty.

Four Pillars for C~rngrle!hessfve Devebpment. The ways in which these gmls are prioritized, trafmc& mid achieved Is a cmkplex matter in wbieh there no simple m'swas, It is clear T M ~ & C ~ C = t1mt a m ~ g y for wrnprehmsiue dwelopment fm &is mgim codd include fmr main pillars, a c h of which is inevitably linked ta the otiws:

+ Esrrpowdlzg lndrrstrjr and Trade

+ Cmabg Livable and Efficienl Urban

+ Pmmatiing Sustainable Tourism

Each pillar L ~xpdumd kIc1w with a v i m to infming a di~ic&art of ~pticvm and the daision making pmcss.

The Role af farfms4rlucture. It is impostmt 40 note the critical role that infmsrWctue plays in each afthe four weas. Roads, bridges and ptts, for tmzmple, are fmdamenp41 to the expansian of trade7 induswy a d tourim. The develapmmt aflivilble and eficient cities requires a m g e of inhtnac;turc; invastflle0;ts - hotkt Iwge and small. Of SO-, the way in which sucb investmtmts are ~Jsckd, fin and managed is fm I to the cmaributim t b t each makes toward cemp~&etlsive d sustainable bgvelwm9nt, EEeetias and efEeimt *

"Rardw~" is inevitably d-nbt on high quality "sfEQrwe,"

THE FIRST PILLAR:

EMPOWEWNG INDUSTRY AND TRADE

A teadimg Fare@ for h-prnat, Tfke indusy and trade sector in the QUBPI~ Ninh 4 Hni Phottg coastal region is &C source of empIoqfmen4 rnkat i~n over the yarn* K;or it to d iva i@ away fmm the lmg~api ta l intensive em domestic comtimiim, and ratme toward a broader- ted awd lahr*intensiwe strategy. This shift is already acurring in same areas, and. could be nccelertited by impmved a@~e523 to credit, diminigfted baderg ta trade md entry, and isnpr~vemmts in inf"tasbcmre.

Centrd to the E ~ a o m y . With ealmated coal rtxewes of 3.5 billion tms, Qumg Ninh su~pl ies a b u t 90 t of all coal consumed domersticalfiy and 1GsO percent of e~purted ~431.

VTNACOAL is th t ernpXayer in the province* proding jobs w 85,W workers. The industry is like2y to remain an imporfans economic facus i w the province i ra tk fomsscablr: future, fiadlpctian is currmfiy at. about 1 IO million tom per onzpum, and is fzarimatsd to inc abut i6.7 million tons in 2005 and about 20 million gxknl to which thils wiiI yield h e f i ~ depends on the industrial mmctuxing I pm-tian measues unrkWaken,

Pri~ing Cuns&aInh. The slcctor cu&rrtly faces multiple challmges arising tiom structural distortions and From dificttft regional ecarremic conditions brought on by the East h i a n crisis. %me of VIWACOAL's difficultjes are attributable to cod p r 3 c e ~ e t at fhe mtr~l lewf--- which are suh&ntidly below the cmt ofproductiaa fm sales to the domestic power stxtix* Q~K:

of the largest and fastest gowing ml rnmairkefii, This is esti USS7.5 and 12 m nually. The* losses hawe mttic&d fads r q ~ k d to exp1,~itatim.

nLy:5;iat? Bn Export& "T%rle industry is also facbg dslini~l,g expar&+ which have tradi~binally same of foeeign e;xct.tange earnings. These amamfed to abut U$$60 mi tlim to il totat ourprat warth af WS$ZOO million, Bespite th6 exw-8 i in,

t~alume of em1 is forecast tai decline as a restmla: af emnomie difificultim in the East Asian region and increased competition Erom c b h c coal expolrzm.

Need far klfpmaded Tsthn4~w. Adjusting to t b wit1 require- an upgrading sf technology fa increese peaid~ctivity, d e s w waste gene reduce effGraflmm@l impacts. Caal &posit8 easi fy weessible by suthce mining have Iarg~ly b.ee-n exploiteb. Of the vast 3, t Billion tans of %%timat& coat reserves mder the managemmb crf VmkkCOAL, only 9.8 gcment is expl~litable by -pit pniniog teckan~'liogy+ In order fa s~WY f-tttm d. udwpamd mining will k l o m e the prevalent exploitati~a method. l71e share afmai a n i d

undermund L m p k d to ~WGTMW h m 38 percent of atEd ItPrrrQiu~tion in 1998 to SO pe%"aeat 201 6. Adoption d m produc~vt: s is apeetd t6 k fbllly coimpicmtlrt8~ with

Z peffmsme. (see Boxes 1 and 2).

Bnrploytnent Ersues. Emplomettt in Quang Ninh will be d v m I y affected by the iruevikble intmdlmctioln of new miniag twblogy. GrawtEr in Iabr pradulefivity amrnpazanying &t kchlegical upps"$de - d l make it unworaamisnl to maintain tobay's large lahr force. Accdirxg to m e batn, aver the next 2-3 y ~ m s VWAOAL is tzxpcted ta lay 15.000 seasonal wstkeml and to carefully review the n d for p n a t t m t mployment w a nlecessary step tuward impovcd emciewy. fo is imponant to identify new emplapent opgommitia f a thase Wdho will EPIf affected and to m k e surer that present ar glmed social safety mas can amefiarate the g ~ l ~ i g l impact of mring in the coal mining se~t~r.

Box 2. Policles to Promote Efflcfent Industrial Development 1

Thh mblam is trot unique for Vletnarn. &vsnuns& FR Ixr& mhlly pansred and in ecllnornies wtlh stgnlmt: hare ~f SOEa faca pmssum fmm magars and mr2r~sa ba p M c l tha

%at alinrinating pm&den

envimn

In andher example. tfie Chi kvy spcstm in 191SO, w e d ~

Sted While steel productian does nat sc t for B Imge p p a t i o n of th,e ouPguf the sector hm mrndrnes kea a f"ocu& of efforts to induMrializr: in both ~ovinoes, Due to pw4 invwmants and low inkmatianal psicw, utilization of existing 51551 ~ a p a ~ i l y in Vi~Wrn is

mt ap~nni&ic. StockpiTes am eumntly

ninefold 00 abut 38 percent. At he

2,4 million tons, iw3fing tur 2994, steel prdwtion was ~ l & w 1 y in'line with total of 1.36 miillion toms of mpaci?y m s added,

O.66 million tm f r ~ m 1994 10 1997, Tkis

Stmt p r o d e n 1 CdII bn~] 597 (ml tr;rm)

~ R S ) for next 9-45 years {mil!

expasion will sipificrsratly in tmkS5 f k G G R - E ~ ~ ~

ovem~pEly of office buildings and hatela.

hlurle Pmm~te, A h h t eaaE and lime: ~h a mfm-d site fur ctrmrc:x~$ prduc%ian. Beaus@! profit m a w are: - mpibEy, FS. These factoirs, combined with a de~linrre in demand 11 i~ North hmim, is bping to excess p~"arXuct'im capacity* %which the

t@ k On the mder CbP2 milfiion tarn. fh.rrent market candirim, redgpaal econamie dawnmm, likaly rfsdbt&an r~f past exknsivl: &ow

suppar?, md t h ~ d t are all key msmhb to rapid sect~r p* in ghe nearterm*

w cement plants ~ t h a mmbind capity of 8.4 mill

thesir phtmed pduelaim mpacity* ami the ather prim@ &d, Vietnam will hare added

. T h i s w u l d be in addifian to 5.8 mflli~n tans sf

A High Growth Sector. Light indwtxy has cmcrged in recent y a m as one afthe highest; grow& sectom in B e Rai tmomyr. There i s reawn to believe that this trend will

significant cm.trilrrxtiu~s to jab matian, and &at Q iflkr is a k a in a positicrtl this tfement in i& belopment ~hkgy. Tke esxaM t of industrial ZBW and

Textilrs and Gsrmeaxts 'l;Ple taxtilm and seoto;or; with 6,008 emglayms, is tlre s m d m d ]imp~%nt Light h d w ~ h the rs 19catcd almost em F o l l o ~ g a period afrapid growth, however+ it b ken kit bard in the la

se:~aked iato quota a d nonquota mark-, ta qwta mdcet~ md, &us have to depend pri Ew%@ rts ta the former SuGet: U~im ELB'lpt

e &wn, At t h ~ %%me: timef pri;vab siecwr tlltnr customers are saiil placing d m s and tkir main coltstmint is; ftmc;im fix exmsion, ra- ekan lack of orders. PriMtJI Bight It~du~w i~ being financed by the lok-al s t a r a& thrrtugh suppliers' credits from fmei* Pqws. ents andl shaes haw sfrang mtmtial in expat markets and wi tl likely continue to fx m imp-t source of incfusPrial g r a d .

High Technokgy, The high twholom and i n f m ~ i i a n technofogy (IT) frr arroillary suppart if they are ta be SUCWX~U~, At present €&wig Ninh and Hai Pbng cb nut

possess any type of ccimptitive admtage in this seetsr* h a u s e they dci nctd pass= the requisite suppart mema such as network be ic lg oaaap~nies w t~hnicel and vocational collegee elhat feed into t5Ee IT industry. Furfh,mwe:, locai dmilfld dipr the products of high-tech industries is iiso Zimikd giwa the relative absence af fwb~sl@glly ial#msive bushe= practices.

[nds&striat %a&& Fadbtstrial mes (Ha) are sn i stfsm&m have b m ted by Ute a u ~ ~ t i e g . The ce, ho;mws has ken mix& ss FDI has declined a ions cler&i&e &me a w m ,

ve not done we bo be too expensive, ofien k ~ u g t : ~f~vezbiuift industry. In contrast, tfmsse that b ~ v e shcpwn limitad

swcess such as the An Taang and &e: Raub f 4 Zane in Hai Phang, hve bhenefitr:d h m vowimity to sum1 papulationt agmmt: flexibility, relative Jlia~m and akeimce eF

urntic camml (sw B

T3.w G r a d g Private Swt~t in Baf PLang. Local a u w t i e s in Hai Phmg have k p n to r e ~ ~ m i m the impflanicct of tk private satar in gemmting eranomic growth artd emgtfiaymmt omclplunide?a. "Flhe private secm has grown rapidly in the past three pars, pacfi~~flaly in the shnrz md gmmt expsrt;scd:m, Employmml ia this smm has dwn fmm nlmost ;ta&ing f~ f 5,QOO smgfigiyes in the past three ycars. Tdne private sector is quick to sear& out am^ market% and g~ods, as derencsnmiec~ by its entry &to the soccer bif e x w market in the past two years. Expart values fur private -sator bduhw have also &m guiekly, fmm 58 billion DQEII~ in 1994 ta 900 billion Dong in 1987. C~ntinued sortka p s p e m are encoumging, dewire *a Etst Asian crisis, Shm expark this p a r will bc crg, approximtety 6 gmarit. In coatrast, centrally-awned SOEs in Hai Phmg b v c k e n reducing N u c r i o n and exportis every y ~ z since 1395.

Empl~ymesL Generation. The private sector i t ~ gcrted Ira~ played an impu~ant role En tlae gememtion af rrcw jobs in Nai Phong. During 1996 and 1997 Iiwi Phong ~ a e w h d 55,470 jobs, about 30,000 af shese in tlw private sector. I n 1998, the private Sector wras reswtasible h r nearly all, jab creation, During the Ewt nine mo~ltlao sf 1998, the copomte private sectrrr created 4,250 jab%: awl alie Ruuschdd sacmr cfenaed 9,054 jobs while the entim stak sector was ws~assible k-js creating: on ty 305 jobs fz%e F i g u ~ 5 abva).

Private Secfar Credit Canshin&. The suaess afthe private =eta- k ~ s B C C U ~ ~ in spite of pabiie =%or advanbges aver prjvate entreprenerrm* such as r&gu!arioaz~ qtriring that r lr t private , w a r 4 u t not the public sccrar-provide collilt~ml for hank Suang, In many cases, private ectrpr bmitlesses do not haw adequate papsnvsrk an &eir assets snd as a msutc cannot rnatasgc them. When they are: able to mongqe liq~ir assets, they are iimirsd to no mom than 70 percent of the vsfue offixed assets. Average assets of a private srdar business in Hai PI~orlg are 500 miiliorr Dang, implicitly leaving diem witlo n maxi~nut~lr crdil, litke of 350 millinn Dong 4$25.000). Banks a n alsa ~ o l a i l ~ \ ~ r d Lo gmn t loans for working capital, b ~ t are limited tc, short.. term prqjext Eoms. 6n dxe other hand, as s&te eaatergrises are not required to put up any ~oiIa&rai dbr barr~wit~g. tlleis impticit borre>win$ limils are mucll higher. Also, state entcpriom can get: access EO eat^ crC3dili~ for lvvaretirlg capital.

Customer-FFrm Ceaperafi~e Arm-angamanb. Wh"lle p r i v ~ ~ c sector firms have not beell able fo get access fa creedit thrwgh aflricia1 fitrancia! inwi9tnlt.ions. they h Y e been able Lo access Fiaance through their erustarnans. Firms establish m-olprative wlatio~~ships wit11 cus~~pt~ers t b t r~ser~~ble an informal Ieaslsitlg arrangemeat. 'This kind of arriai~genlent is very 5rgmnlog in the prarrcrbr and shoe industry, The cusornas supply npcessaw capitol equipmeilt a ~ d the &mt finances the qrripma& by rducing its grduct prices by rail agreed percel2Itage. ACE-&:= b credit in the form of customer-firm leasing arrangema% is one of the reasons why tdai Phonp's privwge x z ~ r has g ~ w m - quiekty in shoe and garments.

h a 1 Snppert -ta t k ~ Private Seetar. A second important reasan for private se:ieet~r gr()\w$R is the inrgliuit suppoE it bas received $ram local govenmcot nud infnrmat networks. The Council caFNtlat-b-State e?n%rrpsises in Mai Phcsnp CCQI-IASMIP) is ala asressive advocate af the rib&& af

private SCXPD~ %UB~PP$S=S, It is m active os@nimtion, akin to B Cbmkr o f Cornmeme, The ~ v i c c s thag it praaPide4s to its: mwnkm inelubr: mining p 01:enizing marketing campaisa iarmcf credit assistance. With inf"omal ac a a m g advocate, she private w t w k tfarimd,

FDE iii Viritnrtm. fa mewt years FDI hs hecome an imprsarmt source sf gowthFf'or the ese economy, -=idly I A1mcss.t; 80 pcment of FDE is mnseamted in

a'pt~cs, whose f9apctl4lti Both Qumg Ninh and Rai PRomg a g the top eight pravinces- Forei@ ~ B V C S I ~ O I ~ Z ~ haw mest activs: in heavy indrtq, i and steel, where thq aow are respnnsibl

68 iaad 88 permr arfoufpaot. While the foreign se~tmr now plays a central role in E aulprat, the c a p i t a l - i n t i n a m e of the invesmc:n& hm imprtinnt employment

iar~fiaacbs;, Although it; accounts for wearily 50 pacent. of iadus~iaH outt>iut, the foreign sector pvides for less than 114 pcrccnt of elf idus~h8 mplayment. By the end of 1997, there wag about EES$32 bill i~a of approved FDk is VieWn, af which disbursed FDI funds stmaunrd ta around U%$lO t-ldli~a, In the first SIX wmth~ of 1898, an additional US82 Mflim sf ED1 was sppmved. FDI is concentrated in c tion, real emte and the taurism s t m . Tbac wlrctors sceoun~ed for 45 pemcat af total w ~ t m u l a t d ~ i p p m d FEN through f 896, The FDI iharc in heavy industry was I7 pcrmlt, ~tw3 9-6 percent En Iiyhl idvstry.

FBI In MaI Phang, By 1998, Rai Phcxng psovincc had atmted USSt .3 billion afaproved FIJI in sixtyeight prajw&. Zmluditng a major invesmenr las the Chin Foag Cmmt Ptant Of&e FDt somfniaed, a b u t 61 Wcent has been didmrsad, comp~ed to sbaut 33 prtrcent few all of Viebarn. +#%is FIX con'hibterf subshatially ta the indus~al mwth pate of t 7 p e r m t k m m 1990 and E 887. New EDl sppaoraf;~t in Hai PPhang in 199% were substantially lower. hnwevw, a ~ ~ o a k r ~ t i ~ g t'ar only 0.6 p c e n t of boa! sc~umlaiated appovals, compared to 6 percent narionwidc. With a relatively Esw madisbursed FDI balance, a rapid dr:c~e%= of FDJ in 1998, and 8 belay oFxlew projects by invmtots, the pv&pwt% fur funhcr FDJI-fun&d indu~&ial growth appear limited in ah near-tern.

FBI in Q u ~ n g Ninh A p p v e d FDI per capita in Quang Mi& is a h t 15 percent higher than in Mni Phmg md in~ludes twenty-eight projects which are snemlly larger than &hose in Wni Phong, but disburmemt stands at an unwwaflqr law level of 15 pscent, which is less than half af the avEmge: fm Viaam. On 8 per capiie basis, disbursed PDI is Jess than 30 percent af the kvel in Phi Pbleng. With an expected ;FrU in the annual mtput p w t h of calf Oa a b u t 4-5 prcmt over the nexr Fen yeom, and ~l very w m a i n c8ima& for attracting FDI for significant invatments in cement anid d~sel, mlmrees d G D P goWb will be rat& limited. "ftam-rr are, howvcr, three wcas with putenxialfy high pmpccts. P i ~ t , the province cs)'~mld diver:~lilP its iadudrial wccor by fostcing xau~-state nrad FD'I investmrrrrts iq =ston wi tk high p w t h p~tmtial, Second, incrc?a~d trade with mt&hern China l h u g h Mong C + i C P I U I ~ be iumtive, Third, impraving tourism scmiws and attractions with adsqwte ialfras~rwturc: supprt emld tncrease the ZmgCb of visitor %sty as wIl as attract a larger shw tlif the tsadgrn market+ See Table 4.

f~maloyrnent per million US$ disbursed 1 1 I

7 I -1 3 I

Futtdam~ntsl to Development. Tmspartation infmstfuctmle is of fu~pbamental irnparanec for r31c economic develoipnmt of rhe Quang Ninh and Hai Phurtg region. 11 litlks cities, pwlimcl-ian centen and parts; facilitates inban growth; and when r;al?ef~~lly slimid czn accelemtte emomic gmwk. Emproved li&s k ~ c m Hai Phong, Ha brig City, and Hanoi are need4 tu t.sslize the full pdentiaf of &e N W k Bsnomic 'Prihnglc. Road m&or rail Iirmk~ kta hnmg C3G would also h ~ v c to be improved in order ta trpk hall advantag oftmding app Ckisa. in det~miairrg which invrt%tmcnt,% aog justified, e~ormmie analysis is as other tom. W g tal, impacts should alsa be b h into considemaim,

Rsad Lgwks- The mad infkmtmcture in Qusng Winh and Hai P b n g i~ beffer than in msr otl1w areas cPS"VEctnam. A n u m b afwbtaxntive invatmen& are p l a ~ n d or h ~ v e alm* been made in links betwm rn~jsr poiabg h the N o T~angle (see Map 21, Route 55, cennec~ng; Ha Noi and Hai Pkng wars mmtly csmpIeaetJ, OEhws such as Rtlxitrrs i 83, wki~b cannects Routes 5 with Route i 43, are nearing campl&on. Piamrs PO upgmde Rauh iQ 8 wmEd king irn~mx~a economic oppflunides a@ m a ~ y camtal wrnmunitics, and nSm improve the link bclwvem the region's two main urka areas, Hai Pbng md HB h n g , AIm af4rnportance is work on ~~pgading the Route 18; link Hanoi with Ha Long d the Issrdes with China,

vehicle damage from rmd ea&i~aans md l$ng-term, high-~o~r milmlenance. Ribh devef ugment patterns &dmt at 0% mmy sf rmmhern Vietnam % main rmdf; ere im far ~ 1 , rogl S ~ S W that wili same siptificanrly i vo1ume:s of ~~ntainer md cstker mck traffic. Tmck standards have yet lo be es~slblished. Majw 4 s need Mfeieng md polluticllru testing sbfians to ~ ~ S U T I ? : curnplian~~ and ~ o a d safety.

Urban Trram~psgatiom. d d h n pubEic @m@mt.lsn ig rapidly d e v e l ~ i a g bugkallt Viekt.lam, and the nan-&fe sxztm play5 a major role in the fam of matdjkes, small vans maf taxis, Neither Hs bag am- Hai P h n g h&$ an m h bas ar E ~ W H warn, but, m micszl?ea& ferry stwl$;f: ~ ~ t f k l ~ ~ t s key river cr~aings. Hai msng md Ha h n g City hava= wsarjou8 ;f"ams of

atiea~tl S @ G ~ as G ~ G ~ G S , m~or~yc le s , vans and b u ~ s . hbljc b w s rsed mi1 seneice P L Hai Phmg province sonneet the rsgiorr eu Hanoi QD Iimitssd raotes- The p h f i a l far impraving ur$m

public mnswmGon is Barge, not 3~wt beau% af i ~ ~ m i n ~ lwleI5 afhmc congestion duc to w m nrtmkrg uf~nrc91.s~ a,= md metoreyclm.

17. Id& tR0 M*m MmDmwQum

h i n a n c e of M Chi M catchmat areas br wta$lishment of ind

The Mangh puns akng Rou% No Hai Phgng to Ha Long and finally The Govmmenl of Vi@W;rm has 'rden1f:d faur m b r amas d mm& p W a l *En the

rewuw {mel, Pan nt, fertilizer, machinery

O LigM iMr~@tw (t@&I@a, pbtlm a d ffmd paocessing). O Expadon d Cha @%im la1#JF4n&n6'wce axport industry &aments, shoes, leather}.

The goueatrnna has &traWnd that in&quab Infpas!.rucbre in YhES area is a serious h a e n d !a- rqkrr$I g r to addwss ibis oonr;taIn5 the gevwmeat piam mjoc

, Industdel Z Q ~ S and part wnstru&on. The &4&ngW p r S o W and =urns d hvlsstnaent 6m the Notthem Economic

Qwe~ebpmt! Trim$@ in inhe d im km am: O Ailderni~ ~BslEidSk~g plan& in hmwy and fight Itlndustiy and food $mxxwirrg (fbmestic

Rmncw;). o Imleass am.oess ea 6mhn aired Inyestmmt FBI] and CX3cial WekrpmRt Assktame

(WA1- O W e l a p capad* k e nW 15ghl Wus nd foreign Wmniccph

( m e & zmi bmbn

O 1% ymds @r smp s M +

In additkn, Ehs: govmrsrent has i&nBM the Rortfi as the W n W wnbr far #@ %%in1 a d machine industry in Vi&%m.

P

HAI PHQMG PORT

Marjar Part, Hai Phangi P d is the main safeway to the world far the tlai~henr priwinces, -pially the provims in the Red River Detta. The part is !inked sa a welt-dcwlopd

mtrlola network, ineluding Route 5, Router 88, railwayd and watenvays connecting the pots

toas af knxghput in 1993 to 5.5 million ms in 1998, Funher expnsion to meet the pwrjng demand for eontiairier shipping is p8anned.

Cumeat Capatley. Hai Phong's t capcity iis 6.5 million It is estimated tbaf the p r t can he upmded to a m a a u r n ~ a p c i q of 10 million tans, dlevel

lanned capacity of inilialily 2 nsiiliata tms md ermtu;slly 12 million toaa Tcral plan~ted port rapacity In Hwi Phmg upon completion of both; planned upgades win thus be over 20 rnillinsn tans per year. I f the demand for port activities gmws at an mnud mte sf 15 percmt, an optimii~tia: scenario, them the cutrent upgrading plans will be su mtjl 281 8, whm dentand tmugd reach aver 20 malim toas per year. The main cu ~0 e g p s i ~ n ~fbfi Hai Bong; % m ~ and Dinh Vu pwt is siilratian at the mouth of tbc Bach Dang fiverr &kite costly

is expected t;a access t~ ve-Is up to 10,OM dwt (or 30,000 dwt drrsign is btirag uitdctcmkn with assistance from tk iQ.vcmw a n o m i e (OECF) of Japan. 'f"ht estimated total cost of upgrading Haf PTaong Pan and the dredging sf a new chanx~ef is US% 1 2 I3 mil Usn.

A Histarlc: Port Ares. Quang Mi& was destination w h ships were fired 4 t h catl. With the decline of steam sbippi~g* Qu its irnpmpt~e as a shipping

ptm in Ha Long 1%e Cai %;sn Putt was propod far tern msm;ans= First, it is a water port that ssn easily acmmmodate ships up to 20,M0 dwt md auld bke ships

up to 50,060 dwl in liwtare. Second, the cmm'l go\ren~rnent% No&ern %~:onamic 'fiarxglcr strarcgy has PIa Long as a center of hwvy industry timt wild require- a port. This invest-E14enr is based on a compreheafl~ivle. amroach to infnstmctuire im~vemM3ts whiieh would indude the Cai Lan Part ninvesm~aa, ~ombined with investmw$ in Rute 118 ztnd 8 milwy, b ~ r h mrtwing between Ha h n g City ~6d Hanoi.

Prmemf: Chi TI,am P ~ x t , The present Cai b n Facility is ~1n&vdy smali, wiih n eapei& af if(W.000 tom per year. TotaI t h u a p u t in 1998 of ~boul4M,mO tans was mostly due to n v ~

n'ctv fareign joint venture-owed plants. Previausfy the? volume ~hmugh Cai h Pakt was mly 4.0,QW tons per year. The Cai %.msibil>iliily study d $ ~ s m d rising 10 2.7 millia~ tans by 2000, equal to wci31itcd with the thee ned In P k f ~ frhe C2if.i kan Part expansion. This b.e b d on ;in approach that estirnlttes total grawth far all ~arphcrn port services t h a g b 20107 and 9 smes that the demand fw @ai Em Part wiXt be this amun t Jess t h exktim capacity ofthe H8i B h g Port.

Hew h t p p Facftitiia, The expandon a t p o ~ facilities at Cai h n 3s orle of the largest public int.sssmenrs being pu~srrsd in the region. The w i n justilicatian is rltnt it may affix the htsr optian [as a deepwakr prt along the n a ~ b r m camstline, The initial amroved iinvemmt wwId provide a major facility with t h e new b d l i n g containas. 'Kroughput ar t2& h a wwXd incrase sipificantly, and access to the inteariled to be bbr ships up to aitPoa8 30,OQQ dwt (during high tide). +M estin~atd cost aZ mparadhg the Gsi ban hrt is a b u t US% $5 rniXifim fnr the finr phase, bviaer~ly, c~taxidemtaan h~ld Ibma $vie%lt~@ enab1hg SLX~SS larger &ipsa but

time yet. A proposal also exis& far the ~1ocation ofthe B 12 oil pm% which i~ &a &e cn to Bai Chai Bay, If implementeds his woa~ld remove oil hafic fmm thc: Wmid H e l a c Site and the narrow and heavily-mEehd wou& oaf the Bay. The slrrm~an afthe B12 ail p& wcrtlfd ~

decrease exit9istzng naviga~ma't. risks md the possibility of oil spills ia ~p and etfefos& w t @ r ~ .

wlana l Bemefib, Tke le%p:Qtiore is thnt these wmbinc-d facilities will anmcf ~antainm m inChusfTi- in Hanoi a d a&ar locafims in the no* - possibTy including China. The

"s step'livise appmch to full .wale- expmboa and a~smht63(% inve~&eats is probably well f a ~ n d d a7sp~cially in Zipkt of the dx:Mwating regional ecotzir~c siaation,

-

I -.- .,.-

b x 6. Key Actions for Empowering industry and f mde . u".-\

THE SEiCONBI Pl6CLAR:

Ha2 bClr@mgs Ha Lartl!g a~d1Wo~g .eat= The am main urban enters in the regiem, while: slliEerrimg gmatly in sim srad monnic signifiance, faes: ratsay of the m e challenges and spprtuaitbs. As mgims afwht each is csific-sily impftsnt in mising incsmes and alleviating pave* in urhn as wfl as nrmO Thw c i t i ~ are a h eanduits to the internstianal mo&e$lsm snd gmrrwide servica that m~&ih%ie isignificmly to the! development of the entire NBathm R ~ n m i c 'Wangle - and beyond. Hai Phong Ha Long md Mcrng Cai are cumdgy dealing ,with ragid ppulation growth, industrial restnrcturin~ and eqtsitimtian, and irrcseasing demand for sesiattt services. Nevertheless, them are already indicrdiisns #hat effwtive plicies and invetrncsnts we turning these challenges into appomnitks, Indeed, dmng local governance, inaemaisnaf or~de links and the drive and crdivity o f m i d a s sre assees that will yield wmrns for mtxr~y years to ecarne. The scope for creating tivabb and flcimt cities k s never k e n greater.

EEc:anumle S&f@ i5r U F ~ I I Ar4a. At the muthem lend of the coastal wian, Hai Phong is undergoing a transition. fa wonwy, which has for years on a ceamt induwgl district: h i i t around the prsn aad d o m i i ~ t d by k v y industry, is diuie3siQitrg as labr-inamsive light indtlsfrles h e emegd a d kpm tu pfay leading ro#e in&b cre&ism, This is resukting in

a number of demographic and structum! chalg~s that me sPanse;Faming the meter ofthe city. The tendency toward tight, la&-intensive, eahpsn-relakd manuf*turin& Pas ex-ample, has meant ris of enterprises spialising in &a pksdustian ofg~mentr; and s b the crmtian ofjobs in which young wornerr t a d to specialize. The cbnging stmcture of

industry aim m a s retocatian tn psl.i-urban a ~ a s where smdi w d medium isxdusPPits offer erp m1 p~ulaf ions . This 8 pa~itive @em& eBt%m tc, i n c ~ a ~ a efficiency in thR

Erebw force. Rcdustinnx in latgc sscalc SOEs will need to fo offwa by mpid pi)w?k in nnn-srae e m p ! o ~ m a ,

Ha b~aog City. Like Hixi Phon&, the grvp~lation of ihr: W1 Long and C m f X h area wiil p w sitr;nificmtky wer the coming decde, and the area is mpe~ted 10 absorb nei&bring dish^& into m apanding u&m ragglame~adatt [ s e Figme 2 above). Ha hrng City, the capi@l af the pr~rsince, acqadid city slams in 1994 nhr~u& m i n g the t o m s af Hang Gai and Bai Chai, each Eocakd om one: bank af the Dien Vong River estuary, Industries and the admini%mi~ion are rnosfEy in tEte eastern $~.e, W s q Gai, whik tourist hotels are in the wc%tem put, Bai msi, A master plan ibr t ~f Ha bang City ou t l in~ aa arnhitiaus inveshtmt f;?rograw to sappf y majar in for the dty, including a bridge between Bai Chi and Nong Gai, dcvelapsmmt af rlte Cai Lsn lBol-t and extensive inrnesmmas in thg ma1 itldugw tlnd dcvclopmnt of nfiv industries and housing in the area. Tht greater Ha Ixmg City rn js exw~ted Lo remiitin' l~eavily tied to nhe coal indwby, although fhme are plans to rmnve cef l~in be'ilities fknm Hmg Gai in khe- near tern, Significantly, expansion has ken occurring in ehc tourism sector xvhich is linked to the atmctisns of kla kcmi Bayb". Gumen$ iiaavastmns plms hcus on apandcd industrial, infrasltructfsrr: asad pan inirescmmb. la cmtragt ta Hai Phmg and Mong Cai, bw emphasis apvars to br? placed on the'mic? of the noiot-$bte scctor. See: h x 7.

A rru& c@ clhanges are cmxm in the wtabl.*@d urban areas of Wa Qulrrw NEnh and W& mash1 rwirn-

would guide brig-brm

0 Ha LOW Cify and me A r m ~pqw!at&m: 40D,000). The Ha tong City Cam Pha area remains heatrjly tied tu #-is ma1 industry: however, important qarrsbn is

r whkh is %k& b W ;rtbeli

Bemlapment of a St~aQe@c Visim. f~temati~rpal exp~mce-fwm a nunmkr af regions has s b m the irnwrLance of a smtegie vision b guide long-tern urban devglqmmt. in this cantext, it has been propod hat Hai Phone: wdd be s: model city for this coastal ~ d ~ a r and far Vietnam. Creaking a mt;s:@c vision fbs Hai Bm guide its &an dewlo

pmes. The a h g i n g nature of the ;a brsod mnge OF uutcamc3rs q ~ d ~ i n towism, WW~CES, finance, and ordm to provide Nai Phmg

with a mare robustly diveaifid eccl~lamic fuhrre. Through aeigfihlrfrd &w~fiaprnlen~c. swat~giias wing a cg.rnunitgr-hsed apmch, the: city of Mai Bhang can take: small skp to i m p m &e

~ r v i w future of su~-abl;e growth, ~313 wi Lazng City wuld direiztlqr clmw upon

Mau*emen& Finance and Gov~nance. One a%e sbampd chalEmps fix tlere city ia ta fix soaomic developmeat mmbl ~ W c i e ~ ~ ~ g t ; much of &is challenge

~nrgrnvirtg management, ftnan . The f i i lMai refom, as t h y ciky dmirristration, m a n that cities &auld with greater autan~m y in .

rdx of citizens, delivering ~~rv iws and in turn b meet these needs, and collecting taxes and fees w-fimce them. It is also iM h t these b c r i m be carried out in an open and transparent way, mcJ thirt t& city ~ ~ 1 3 6 d slccountabfie for the results, The: exknsion of t k ta the local lwc3 in &i P h g and Ha &R$ would pfsce them in a leademhip pai t i Vietamam" cities ia dernensmtiag thii approach.

Xmngradng Urbm EmvEranrrrtlenbl Services. Asz pm of ri govemetnt i;;m1ew $0 k e l q infiastmcture to prumee inv&strnmts in the N o r t h IEconarnic TPimgl~ a iavmtrP1en% i s being mad grade watm, wastewater md mlid waste maailg Hai Phong, Ha b a g and %la. The idflal phaw of intenrentions in iimpfuvem8.~ent of water supply; a msnd phase: will address sani drainage aznd sewerage: network% kttm f l d proteetion and 1wt~os.emmts in Hai Phmg wovlid irmcMa a mw water pumping &Gm, water plant, extmsive imprwements in the distrikticarr qskm a d flav5sion efwater meters. In the case of Qwng Ninh support would be pviM fir deep wells, raw wtep ission md pmpirtg, tw wakr treatment plants and extewsiow of the d i s ~ b u t i o ~ R e &aus mvimnmenhl impacts to mr$aac mkr qusli agdi~mali measures will need to be mkm to sw* ter treatment and di ipnprovemcmt~ q a i r e both mditioml Iarge-gmk iuvtments fur ihe core infmsmtur~ and he use ofthe "'wnalt brick$' ~pproaeh to mabilisa ~ e m m m i ~ e s ia making bcai im~arcm%nts and maintaining the ~ s t m s , See Box ff. .

Crw(r%ag Effileimt ard Eivabb Weighbiorhtwda Gowmancc issues are incx~wbly linkad on of a modem city's A key s@&t;&m is for tk city to b ~ a m ~ y involved di-cl%etfy at el w h publi~ infiaslrs%cttmrr i under-

capitalized. En the case sf Hai Pharig, the city has aiwdy d~mmsmted excellent ntiutts in impcaving sustiiiinahle service delivery throu@ a scrieg uf'fac-tiviks including bstta water supply a d other service in phwrigs and rczidwlltial blacks, Such "small* hicks" programs involve the cmation of f~ilities md ervices ta amdimate b % t h and we3 bre and ta suppart small-=ale imprwcmenb w h as me

bald be a central ef mm t of sum@ fer cs , W d m i s 9 b pieces md

The Pillar Sf

AddraMag ehanginy; Canditfam. AB i trend in Hsli Pkflig; is the proccsrs of a l ~ t i r z n sf industrial enterprises to the

" urban am and into new sites in adjwacent ml areas wXfh high labar availatsilify. 72th ig creating a Fsrmer industrial sites in the part area and a shift in th weas &at It is alsa g t m m & l merit: pwiblcm to n m mas. The wntiraued cantainc pwt facilities ine demand fur space fcir both caaminm sbekimg md hmdliag and truck mi~g a d accm, This strmgO?hm the role sf& cdlmtlcrn and Iranaip-t ef$'w&s r a k &an as areas o f concentmtion 04 trial

s, As s mule, Hai Phag is likely to kccmae Insreasigly m i a 3 i d in dhe provision of txxviees to the bmder regim af the Red R i w axtd the corridor ta Hanoi, In the ase df Ha L4ng it, may result in a rduoed Iwe1 a f h d h a l investment & s cfifl~mx re of investments.

EnLancirg Urban AmenEtBm, Ad-aing the n q ~ a f i g in Ha h n g City and Hai Pkorig will requi* attention to mafm ag of green spaces; c~n;trol of noise and congestion; agwent of mfltic Ieveis: an8 mafnknaplce o-f the cultural and historic aspwts which give the city its chamter, fn b a k cities, the= are hemasing on the mcsationsl and tourism areas m u ~ d the main urban carex* Reviblhrian of historic districts a d historic bullags, cspechily in the case of Hai Phngf pswidw an opportunity tio Imcrcas s~mmef~:ial activity, axtend the m q e of ~ttractioas to tourists and conserve eullumE ha4hge.

Redwe1agment"af Bw both urban areas m a t e s a new mmgemiewf "bornfields" or farmer industrial r areas within 'the Iuatre growth pateems of the ci fwilities in central a r m provik a raze addition to creati wilf need 'to be un

Stren@leloBlsg Urban llfmagernent. Plaming, fd use en~mnmental rnmagemmt in bath citks would Benefit from sumort ta s af capcity nnd

to upgrade planning tw6s 3;nd d& systems to met rapidly It as establishment of zr CIS for lcm0ion of paccclq f;md use p ~ d cliecupancy mzlpping af ctti*litits, Witla regmi ta municiP;rl and industrial paEliwtioa, hes to be eonsidered for trggdilvg mlmicipat: enuitonrna&l pe~omncrt wout f e h g , analyzing a d presmhng data on ambient enviramme quality and m8ated a basis for acti.ian; aenghcning the

cornmp1nit-y ppar9-icip~an in i&ntiftcstiorr sfmvi rwhing agreemept aua ppn~tical step to move f~rnad.

RapEd Cmup$hr af Moag Csti l*own. The p w t h af Mmg Cai is one of ahe most encuwaa&~g ifspec@ of developmemt in @ang Ninh in meat yean and may gtny a major role ia detgrmirsi~tg the fublturr: direction of economic growth in she p m i w wid i n d d the rcgiotp. This 'border town irll the nclrtbeast sf the pmvincle was granted the sagus sf m exphrnt~tal Bordgc Zone (675-TTg) by the cmpral government in Septmbcz 1%. Sime &he W e r with Oiaa was ofzenerl in 1989, economic growth has b m vesy mpid - lat least partly as zr result of 1&1 eEarts aiinsed at fodering a v tmck semkes sm@rt A-ge aannud m i c paWh in Mmg Cai over the f ivey~ift period fmm [99 1 -1996 was -fled ts~ 36 v e ~ &

Mong Caf, and nearly 95 p compmies in wang Niah private T m t e secm i

ell ecanamic activity in tk district, A g i w I t ~ ~ e in 1989, Per capita GDP in the dis&i_ct is arw

Travel. Mong Cai% ppnpufatian has grown from 2O+W in I989 to S,DtB in 1998. Most migrants have come from the csa% m m s f&m Pha and Cua Ong, by trading oppamnities and cheap land. Althau& this mpid estpsioaa has strained

urban planning and services, tk local a~thoTifi@$ seem to k wiing well. China and Vietnam both allow v i m - h e tsavea for residents, although the Chinese authorities require that resid~nts who am nut part ofa tour return ts China by 5 pm, The Ten border has I~td ta zi fast-mwing murism industry, with more than 25 tourist campanim ,slewing Chinese towis&. The Tra Co k x h area claims rlhet 90 pmesax &its loco8 ccsmrnic activity is di~rctly .y$aisd to the t~ugs~ Edwtry.

hcsntiva far Enve&tna~k %maw of its rmo& brdm location, the Vistnamesp: gaRmment aRis iamtives to businesm (faeim and d cj chat invet is Mang Cai.

wntives include tax waivtm, d w e d mqmrati. income taxes f ir eight. p r s a ~ d 50 e d u d land rents, Foreign invesmmr has b m limited ta one taxi company and to a

single btel which is planned to be moshctled. b d authucitics sonsick the tenrparary ~ 3 t ~ n - t

of tbe "aperirnrzntal'W~oder Zone status ss the m ~ i n reason they cannot attra~t rnm foreign invcstmcnt. If the stm5 were made s ~ m h o w more pm@niM.lcnr, they feel &is might ease investor mnccms and encawage investment. b c a l oEcials expressed a clear preferennlca far invesmcnt in exgort-orirnkd light industry over heavy irodusq.

h c a l Fiscal Autlrorhyisrs E v a mcrrei iwmt %ban invmssaent i n m l i m the earn1 government has arltmd M a g allows the $i&ct g w a m t fB retain 50 J u m M

10 billion b n g annually 108 bitfiw in It997 and 1998. The nzibined h d $ have been ta devptq i n h s ~ ~ u r c to -r,supprot.a the rapid growth &Mmg Cai TDW. This irnctudgs the

of Route 18A, connecting Mong Cai with Cam P b and Ha Long City, Qn this Cai authafitics have inve tiaa Dong to u p ~ d e brjdm and duer

~rclrssings. h e 1 trulhorities have also infmstrucm (water, elec@icity, roads] in reqmnse to mpid ppula Lsca1 autho~tits in Mmg Cai are Iwking firr ways to meet teal inkmcture needs Thezy have so fm undertaken 33 di pmjox& w d 107 frilfiort DmgP+.

Falure Pr05ptxP& Mong Cai will mntinue b play a very i rule in devcIapk bde with China. Mo~P$ Cai cm take advirr$r@ of its bd;h areas in O T ~ t~ expand passibilitia as a d~sfination for G i n e ~ terrrim- If Mong Cai is able to get "Free Trade Sr;ituSt in s 85 kilometer mdius dMong Cai Tom, trhm thm will k gr itias to deveIop p e s i n g industritrs for expart w China andi hyand. IaEat omials ara: &at otbgr previnces with k @ a r

es Ekanomic Zsnea. The cmtinmd sucow &Men@ Ctli w im ra physicat i n e m , as wet1 a5 1he palicy inkiasXmc&re that supports trade md isvemall. Without hotm policy infmse+ucture, $xr,w& iis Nong Cai may stow or stop altogether i65 Chinese pialieies change atld ather towns in Vimam arm able ta get preferendal policies.

ProlposeB Free Twde Zoae. Mmg Cai dis;hict ~Weisls, with the suppot? of the Qarang Minh provincial govenument, haue nquemd that the mbl gwmxnent provide them with special m t ~ s as a E 5 kkilometm= '"Free Trade Zomew along, the border. Within such a zone, there would no mde taxes TLSI&J evm gmatet decmmfjzsti ty, By c=rea$ing an "'export e casing zane" atonospbm witbirr 15 kiiamete;rs; aftthe qwzd tb~ Chines buinetzss wifl cansider moving porscesing a c M ties md Xi stry ta the Viehams9 slide of the hrder. While tIrh fwapasaf is c tly under msidemf:iw, lwal atlpEmorities Rave atmdy set up " b r b gait@%'' at the 1 5 ki tm rk mi CBW out routin c&o!ms of &rucks m~ving past tR;mt: point. The district gmcmment has alsa set: up twa 1~gr: &sing weas at the IS kilometes mark in aaticiytian of central government apprevaf. In Eke view of local si%"ficiab, crating conditions h t lead k the develment of Mtrateifareign secbr light idus&y is of thcs highest priority in moving Mong €hi up the dieve-lopmt kddw,

A P~tential Model, A rcalisfic provirsdal indwshisl devehprnent strategy will be o m that build& tisn tlte dynamism in the ecanonry, mt me that a%tc:wE rs dtvelap En q i t e of it. lhlver the medium f m that s Quang Niah could actively promote its tande-based ties to China and find ways to fo and inwtwrent bNm China md Vietnam. This will likely include infmstmcfiure imp~ovenmenes, cspially on the rad behvwn Mmg Cai and Ha Lsng, In order ta maintain the gmWPh and develraprn~rtt of the Mong Cai b d e r it is impcvmt that the cmmi govemm&t consider further decemtsali;%ation md flexibility fos Mong Cai, znd d m lessom for othwrtities. C~mhl y tbc lessons of China's exwrie-nce with Special Ecanomic h e s that thm zones would not be staew~fwl without decentralization sf authority

ty to the? locaf level.

A LAsf~pTem Gmwth Sector. The =dm's wniqptc mbml beauty a d p x i d t y $0 major population m t t w are 115s- with rhe ptmtia l to yield h e f i t s h m the g~ovidun of ~r#imar. are arguably f ~ d a m d n b j iQia a coqlreattnsi~e ireevefrrpramt stmtew. Evidmm fk &st Ash ?bat tapping -this potmdak will mq* imot-hg ease of trnvel, develapmat of

ate inhstnrcpuse. RwEdy such the W ~ r l d E&~age Sit: and Cat % I s k & which are a d k s d fuaxha him.

Majar To~rise A#r&Mitm. Har M g Bay is Victrmtmm's kt i -bom 8uurist atwaciian, visited by one thid of ail faardp viztitars, Some: of tk Bay% lim-ne isiands sm visible h m &e: s h , but ttw: real almctian oily bewrnes evident From hat &ips b u . & the hl&. Mcsst taud;sts .dfe at hotels in the mi C h i wtian a Nbb% Ha b a g City, although a small but gaawing n ~ m k experience the b y ban IsZarid in Hsli Phang wtpince* which

ia WBuw . Pak

Tourism's EanomIc C~mMburtf&n. Qfftcial Brrh saureis show Hiii Pbng tau~sm by t W7. b include anfy hotel

m M h ~ r n t in %BBiPMg iMd. 105 T d s m accounW for n Qumg Ninh

S,

SZovvdaawn in Taurlm Gmwth. On a najrimal level, $he nramw QF bait tourists in~rmsat fror2.r 6.9 millim in 1945 ts m estimated 9 million in 1998 (14 pwtnt pe3 yew).

Cmtinwtion of su& @dl gmwtb

Need far RsdW. Ta harness Vietnam's cclunsihbfr: pornrial and wad t k %gw deshation: zmtrket eejling will wquhz mjer imp~ovmmts in gdwt quality (eqaiallgr acslccamm&tion 1rad ctxm m), &ce h1fvm-y (regukhg a * $ f i a t miniamg

efifort) and market. a p p l . The Vietnam's acmim indbtsq f i inta the raext s&ge o f d e ~ l ~ m ~ ~ t mil have to be em-k$ CM ia tke mslidemble mwtisn from its A S E M n&@hs, which are already some wa . Negotisetim with

disproportiamkly higb c o ~ @'@in& & Hmai, which currenay makes Vietnam a ~biively cwtly place m visit. F

Kg A@r;rcttaas, Qwng 'ftilinh. is wet1 known for the Hs h g j Blty Warid Heritage Site, Though @;mg Minh alw b ather r o w sites, su~h as Tm CQ beach and the Yen Tn Pa@@, nearly all tourist in~pmwenb, acrivitjs, ratmd revenues sue cumt ly made in Ha LO&g ~Giqc Mung €hi has a I9 Ikifomer-long Mach; Tm Co, which hgtrrs 5 kifaqnetms from the: h&r$ is bcavily visited by Chime day visitars wha do wt need a visa. 7%- are nrr hotels sunid, wly minimal hcif it i s in Tm Cta.

b p i $ Growth. Tire n u m k el t o d a ~ grew at an avem* a t 95H1 $a 1996. An avmge annual wte of 52 percat growth in mvetliu~ ma s9me pxid, The fast in reventre: may mfEe;@C expansim in hotel towism se~$gs is all dl, hswevet. Direct tzmploymerrt in the seotm has nucmted

ycara, and menw per t-aurisr has been lets thm U'S20 pea visit= far five

suslkained wid growth fm a numibet of y a m kfcm it m f i d pv ide mplwmat for a large segrramt of the ~ ~ I a f j o n , I in she: nwnkr orf visitom notwitManding,

ra Ma b ~ g may ha= ncptiue impsca in t h Vig%&tm

daysin 1990-41. P

The GmMsg Chines tarark~t: hf$s been @awing quickly, with 900,000

anfy 40,OIFK) sf tkm tormrist~ wig1

Quang Ninh 4s make the faw bar jounaiey to Ha bwg and q m d h e ni&t

now p l u m e W wi aimed st. intena~fiolild svisitms* is

Sit:, linked to h rwinlmd by a k d g tea f b r n Wand, s m s is ~htirety di

C h i is w c h ~ d by a 4-5 how drive from Wami. Bagai,g rmti h~arcmtl& m y wdwe this time by an bur or w.

Tamism Eh Ij[& m a g , Haj P b g had mon: 406,000 tomists h 1997. Alf blta I 1,OW were k w h vidtm, Hanoi. Visitors stayi to stay only 1.8 nights tse@tie trawling 1~1asards: k~ revenue per visitor in 1997 was wily US$19,60, Csmpl and Hsi Phmg to I

~ts to DO Sm. Wile: msny will

fix hotels and r&uran& and

Get Ik I s h d . Cat Ba is

far mrkelhg, although this Is heavily exploited with

the first ftdf of 1998.

Ba hotefs 4 rest~warmbs p d d e vidtm in b k d m not benefit @om these t ~ u r s .

bs d m t m are $S high ES 108,OQQ per of 2-3 days. Peak 1898 p&ods m M 1,OOQ

i s t o ives

M f o n m n t e l education m i d Emmaser Visitor enjaymat kcrease mimrrbt awa-s in the region, which Is

MANAGENG THE EN NMIEHT AND COMSERVPP~G NAY'

SIgniagatpt bt~f C o a ~ s W n g Castizl E~dranmeta;, The Qumg Nib and Hai Plkng n~luritcs a series

can t of the rctS;an. This includes the Red R i w tawism are& of h $on arc:

lacate$. The Qwng Ninh caastline is camplex, that arc &R@ by mongravesi, large inte32idaf zones, and at selected pain& in the crntsml and &em mims d r h s area, 1mg m d y beaches. In the center af the ptavirace is Ha Long City, whieh borders Bai C h i Bay, a majar sfr;rillaw es . TQ Ehc east of #a rn Phs, which is &rnin;lted try surface md undnrpund c m l opemtiams, A c ains runs immediately adjacent to the coast, mMctiag #he am~unt of viding saw materials for the cement and csmstrucrioa materials; industries. In a&ition, tb rwo pmvinw shm an exceptionaf archipelago of oflshore isBands which fiam west to -st. includes Cqt @a, a Iwge island; a mnssive number of limstaaet: towers that d~mfmte ]&Is brig Bay, and a number af Iaqg and medium size islands characmizd by a. tmriee of geotsgical conditim, which extend ra the Chinese brdcr, A swn of the e.nvirnnmmtrrl rrnd natural remvrces issues in Quarig Ninh and Hai Phmg is provi&d asl Anenex C,

Greater Ha tom Bay. Most enrimnmental md intctmationdly. are f o w d on pkntiak impacts to the Hs Eong Island. The cml indwtv, urban and iftduWsa8 dwefapimmt at Ha a p w i n g tourism ~ c t o r atle! having sf W r n e m B I effect an the ca Ntbugh tourism does naa =em tu bc directly aafwted at p i t e n

area, mainuining gad water quality is ;1~m issue of lang-tm iaue is the risk ofoil spills into WD LOwg Bay fmim ~ ~ v i g a t i m widen& by enkern making &livmies te the e:rcisti~g or apandsd 61, t m i d in &i Lan FQtZ [Nag 5).

k y ~ n d Hn b n g Bay, d Ha E ~ a g Bay and include 20~%1ized cant gsltutian, i~sufficient corr~ersicm of mtca&ally 6 and 73., Coal mining weas in Qumg Niph provi health effwts on wo&er%

af the ncmhore cm1. reefs kd W&bge Site md Cat Btr Islmd. Primary w b am pwlstian gmtw$br aad a

indblsbriaX growth, urban expansion, sgriculmrr: and aquil.r:u]tus develop hawe in w i d q ~ a d filling and caaversim of coastal rnmgmves throwghout Ikp: region and ~aqe-scafe darnage 80 inmidaf area% adja~eat l t ~ majw urban and indwkid zones, The toss sf these snl~c11 Xa~bitats; in the long tern plaxs h BivelihQaB of an eriltimaM 45,0108 fifiermen En the mgiaa at risk. See BOX 12,

Fishery 200

Endra~msatai ~ntsnfng and Maaagemead Intematianal experience dcmanspraXE$ t b ~ she

ctfeBwtiv@ gDanning and es rather than s 1lowjj'~1g 0s W O ~ O

Q w g Miah and Mai Pho eauiroamentnl &ject-3= mn be when fulky in~mted 13s elements sf a long-tm wgimat devef;apmmt s t ~ a t o ~ . Bai % n g pvLnicts--espwially the greater Ha Long Bay region i a c h d i ~ C"nt perhaps more tbati any a& place is Vietnam could ipra-rridtt an lexmllent ax-IP of haiw t6 achievg sustainable d&wePelo~rnertt. EwHlbfal for the dizatian afthem treaefifs is the eflFd= internation of r~tavito

mic and mia l p lmin

impEmmgatim af

and fi&rd~s (fshtrq, fry gakkwing ssKI aqumlktre* The bay is Iiln& vviipl m m than fifty

r n q m e n $ J;=m5;' wm, ddlResr8 and wditidW) an8 urban m ~ f f am dEschatgeQ tnta the bay, Expanded &wbprnenk astf'w@w &I the am& haw inmm the dsk of envlronmearetal deglmdatlosr. This has triggered need for sxtrnpntlanskre arsd infmrated e n u i r o ~ u l pbnning and management b emwm the sustsi ~ r x i d ~ and pkmrked s6itlvlttss.

0 W %;&Mwg up and w d o n a l ~ z a m of an eRWiv~f rtaull-ml M W o n a l enanpement fOr IEM

V the active iaaW~mC p&ab sedu,~ ln Wing dGk mvironmenM I signing d vo~mtary ag &uu ihgommt

o tsnsnt pm&cts k r s-;mira~y land fill, a organic; fertilizer), a

port trmtment and dispasal fad%;ity fet ship wid port wastm amd a tmfc and hasarcbus wsb sbfwe and Ireia&mnt fadlily

ree a t u d l i @ d s ~ t ) p ~ o ~ fndudiag the &eye ilc Envimmtubl Managemant Ph, fhe

of the Zmal Wter Use P the envimnmntal &engWn@ snd pu$5ic

". , .~.

MANAGEMB~OF COASTAL RSOURCB

for b v y itadmtrim, esgeei~1ly coal and cement b t h coal a& timestone, an emb11isW pa l of

The high Im1 a16 bman 8ctivity has resulted in cmidmbte rndficaian d n of targe meas of farest, mangroves and inteddal flats to othm us&, Batfa $K

nowoves and i n ~ i d a l flats h ~ v e s wdler bidivcrtsify ztsard %me as a n w q ground for mangowe area dlecmad from 1988 to 13 tidal are@ haw been mlaimed by coal mining activities far d o v i : l ~ m t QJWWI shipping poi-& aired displ~al of eoal w@ste, while 30 kzbl~cs were rwhimed

b n d ratamia~on wnvmions have along the sbrtline, cha ag id cmditims, a g water quality and reduce impaflant areas of habitat. This is O and &mag%$ cum@$ ative ~ v s e r a psiad sf tgme, yhich makes Phem ofpriadty C W C ~ fm mvirnmm&l mmgmmt.

hfoc-rOon, We: fowsted, the ~tkepslbpd hiflg M & g iFhP: m s t and m the l a m h sf thcir famt cornE Tk removal sf &.ho forest caves faas led am chanreals, ken c d d in& clsrw+im and delta$ trap ;amd are a variety of causes, includiag demand far materiais fop mt

mimink exgloitaticrtx fir limestone and building materials, agriculture expami- sand b s i ~ g mnsmr;tian. Histmi

civil PlAuch n d e d re fomlrr efforts now dispo~al s i b is lirtQitcel, kQw~am~ dm ta the insta2lilily of steep slopes of averburden waste. It is repart& ht"in recent yeas, 5,600 h e c h w a of land was rlefomted in Qung Ninh, of whisk 3,380 k & r d y w r was finaced a h ~ ~ h e coal mining-related $pant and lam from the gw 4. In additirra, mines have th~ir awn pmgram fir cil?fohe@tion and rwlam~w, o f ~ n e sites*

Wgter Quality. ?Pie @an& Ninh ;and Hai Phmg region, while having j resources, has widespread probjeras with water quality assmiatled with or suspe~~ded =dimen& d dis;chmga h m

h g csRfe, buE~la, md especially pig-is n mjw murca: of waWpolt&on, while aqmctm~tus iis a growing some of mqcm for watw quality in @@dosed mshl ams. "

t emdnre end marine life t b t is under f l;t%& quality from inadaquaxely mk

gou~es, exkmsiw ailbtion fmm the coal industry, and ?he mr,*cmion of gmifrcant areas of critical habitat. Unmppod poten~d dbr f i w e s devclopmcla$, imhdkg aqwcu$tlUe ~ n d maricultu~, it; consider& ta high. Caolisrg, ant.! fmzinp Bciliaies in Hai P h g hive lang 8epyOd as both a di*baaaian and boccwiii9ig center fw mprt and damesgc markeb. In additicm

to the local market ~f 26 million ge&. g Ninh is ti&? na-t to a hu$e Chinese market for seafsod, white Hai Pkng k n e f i ~ &m a transporktian mt.work that connects it 1bth to domestic sad internsPjarial marker% The majority af expast items are frozen or ice-bfoicked and mfd at Bow prices whems @hey w t d axld much higher p.i~%~i if expmed fmh.

Dad@ng, Nsvfgaliian 1Rt.ij;lrs and UiI SglEs, sd hrge wle dredging operations wd subsequent mintienranm c%resd@ng for the propase smwt of Pk Hd PbngDihh Vu Pans and the Chi k*Ln Pat wi re very cmfu% envi-tat gmmt EPM1 nonifgiyjng of clperatims, mnspm and di processes to avoid gomtially signitimnt impa@ts !er, marine wmurcet~ The plzaned expasian tsf Mei $Chon& Port, &ve:lopmma of Cai h PO@

ail tminsl irtgide B B ~ Chai Bay spills* lass of bazardws a m , Tfiis i s eswidly shipping hne to Ha brig City, which tramits the World Heritage Si@- hiwity should be given to measures to r e b e navigation risks a d mareagemat of ail spills,

Industry and Enuf mament, T k diversity of tfae: ierdw~rtf structure, size cmditlions and age af Ocilities in @arrg Ninh and Hai Pbng pmsmts a sp&mm of mviron cnncms. The pfim~ry idUe&Ies in Xai f i m g lwlude cernsd, steel, shipbuildiag d r gameat% and text.ilrs, plmics, w a f d gtupcessing, bricks. aiie, glass ansl ceramics. Wk domirated by the con1 industry, mang Ninh alsa hns a cement arpd hilding materids imdustry, as well ai; m8ler industries a d foal pmlessiRg ~ m t i c m a . Empartant issues include cast- effwtive ~ a n k r ~ l of pallution in older indllstaiw t b t a h cconomially mginali; iudgpti~a of clean and Iow waste irxhed~gies invesments i n c r e d envi~mmental awa~cenesr; o f public and private mtw parties in i manibring a d mf~rc-cemmt system, Qf sgecissf concern is the n d for p w i n g and dwelapmcnr afpsrwpx Facilities For &he dis(aoa8 of irid~stt"ja1 WS- which. iafe m w o h

of in municipl ar In this m&?;t, ;a

ctisrr would be tk t ptan on the h s i s of site inv~stigations.

e ofair patluti~la in the segiarrr, household heaeing, w&icfes and mat~~zL.d qer pawing car%h.iba. The primary industrial con$ibutioes to air plfution include; dust, $02, MOx, CO and V W fiom fuel intcnsiw iabustria such as cement, pafeelsin, brick atxi Itile, ghss a d thermal pwer gmmtim; sulvtsnts f r m pint, pla&cs, mbkr, w d metising and c h i c a l Wuctian. and H2S and NH3 from mim, meat a d Esk p~messi* industria

Water Patlutfon. The primary industrid cana.i;butims to water pollutiw in he region include high org~nk and in s~me cases brtcterial t d s ficrm paper, wile, leather, a l w b l snd beer, f a d and fish processing; mechanics1 and ~Xlemicsl i n d ~ i e s , batteries, tanning* and caoEiq waiter tim; high 1mds sf P, K and N fmrn fcnilizer prdwtim and stctmg~; and ail polIutiorr from mexharaitxii corrrpmka a d ship op(im6ions. Inds~tdal d i ~ h a ~ t i s : tepre%nt approximately ;ZfB p m n i of the to&$ w~s&%mm in i4aZ !?hang City. In mans Ninh water ptlution is dsmimtid by a 1 mining, whi~h includes major discharges ~ T w i d i c water h r n mims a i ~ d wash w w r frm processing (see Ekm 15).

Nanage:mewt of lnd~strial Growth. Beeenmtsalimtim and relocation; af indrrstriaf p w t h and the expaasilm of small ium idpxsgim gmern~ 1 management mncem. We ented trends in the Hai indr~srPies are refocatiag to the edge sf tam or to new i n d ~ h a l zma while many smll aed medium induslrirv are dispe~ing; themsefrps into mraf maw in ehe Red Rivm Delta. F P Q ~ am cnlparrainma~t pmpecriw, the d~wlapment of new i n d M e s at well, indus-iol maes, sueh as the Mamuxa zone owids af Hai Pk~ng, enviaanmcnaal screening of investments, gmvislat? of p m p envim facilities and rawtine mniraring by DClSTE. The trend toward establishment af mlt, rand medium indbtstria in rural areas, often in the vicinity of major rmds, pre$en& aan irag environmental mmanagrment problem that &auld k radhssd in the short tern though taqrted support to planning bd ics , DOSE and investors,

mines, is a major envimnmmt;al maaagement c indimt imp&. ThRl mast visible imp-ip~t l i a in ewer 1- pam afthe landsape in r31e regim. motmtains near the n the Cam Pha region and an be sets @t many srnlle~ anking

Watmcamses =hading from the mining artm ta the sera are Elled with cool wa stricts channel flow and makes these s m s sipificantfy mure

12 Cam Pha and In &e eastern sanilm o f B B ~ ChwZ b y , these wask paszt~ak sx~et~d into the cmaitI area, damsgirtg vege&tion a i d gdvemly ;zffirEtjng sEshlem ma18 md other values,

Mhp! Wsrsste Manaf~cment Over tht: last mrury, which saw the full-scars dmclament of the cat1 m6,urces of Qwng Ninh. it is euimsted ahat 2430 million tans of cod have been mined and E billian tons of overburden generated, covering an estimaM 1.5W of the landscape adjalzc~t tn major mines. This waste material bas o k n ken disposed at" in vatlys or m s with low slapcs aa&ide the mines. Several of the larger ~ff-site dumps we as high as 200 meters and cover hundrds of hectares, The Cam $ha arm is facing the most dimcaeEr situation since it is estimated that dusin~?, sRe l i v e af tho axistifig surface mimes, zs musk 1 billion ~dditimak toas of uvmburb rnw $rF ted. requiring 5IM-7W EE~0:tam of ~;canx fan$ Far dmping sits.

a m t i - md move out of the Horag Gai dist;.rict @€Ha Long resmttem lsnd use and remedy damage ftdm industrial use c;rf pl~kntial ~habiltta~ion sites inelude the existing hding dock with three krtkts, aa &jaicat stamgc site and two l e ~ e areas historically uSedl fw coiitl wsshtng that cover 24 hedases, The rehabilitation of these sites should be a priority far d~m@nstrat-ilon activities for cmslaL aam ma~aagement md ar&;rn devetqpnent ID Ha h n g City.

generated firom tire proc8$stn(l apratiofis and are also eroded from overburden stockpiles, open surface areas and defcm3stet.I slopes. Coal stockpiles adjacent to the =st at shipping facifib &a

wllwi; and risks

indusbks b urban margins and 6- of new small Elnd medium inbustries in rural amas, sspedraUythe . e d ~ t i r e t ~ , ~ h o u t d k s u b j e d # s y s t ~ ~ r e v i e w . ~ ~ ~ ~ shwkl be dsvebaed to avoM sefbus emlmmental problems occntm with the dmmtraIizalbr~ of industry.

A MaJor Rmtr r~a The main feature of the 1,500 squm killomfa Ma Long Bay (Iitemlly 'The Bay of Demdfng hgnm'q) i s an extraordinary spkctacne sf abut 2 , W limestone islands, mme ~mtaining Caves md grottoes. k s ~ d on itheir unique h u e and geutogic famntians. # h u t 800 of these islands sawring 434 square kilometers were declared a Wmld Heritage Site by CO in 19%. 1Importaat m~ltural arad historic sites an: l~cated OR" the adjacent mainland. Thr: W d d H d h g e Sitclics eatirely in Quang Ninh pmvirox. in the ceatrstl and eastern portions af the Bay. Majm shipping laat8 pass &rough the Sik,

Qtt&mdiw 1Feabtara Ha Long Bay m a is of ovtstaatding grx,lagical, clalm1, and seeni~ v a l ~ . In addigtva, it is notable far its Bir4, 1, mdl inreeebmte sgesim, Wa h f i g Bay's limst;Qfff: b t gwm~cpfiology is significm8nt at the ~lj iowal and global Lvd. It is LrnqssestimtaBy r n ~ of the worId's tap ten h w t sites and the most immilint bmt area in $aukhest Ash. The area i s mnkd globally second in a&m Y-shurr in China, In terns of@w%ace landforms, Ha Long Bay's "feqlin i~ the moa itatwant karst type [sevemB examples are included within the World Heritage Site)* me Bay" iislaa~ds are anddera8rly more irnporfamt far canwvatian than the Xheaviby-de~&d coastal mainland, where tkae fastdisapgearing rnangFQves support critiwl species and prohbfy underpin the a r a r s irmp*nt fishing industry.

Use Patterns. The World Ht~hgr: site is a multiple-use area, suppMtirlg fishing. toupism and shipping, while aubjtx€ to aTad Industria2 pollution. Boat trip tho%& th

dmmd far these services cmtlnues nsufficimt regularion of quality ~ ~ r $ f r ~ f tourism, oRcn lasing thsir railturc: c

va l~es in the prac.g&a, Most of tb %-line facing Ha b a g Bay frrrmm1y sapported mangroves, "Fheg.sc have largely ksccn 8@suoyed in heavily i n l d u s ~ a l i d areas kt remain more a less intack in less-usad areas. The Bay a h has ~zlbstantial shrimp and fish tions, attracting kmdwds of small fiahing boa@, some af which make up flarting settlemeats inside the War141 Heritage Site (see Dax 17).

m n g the 191afl& sf Me Long &&yon small

Management SLrsmcturs Ths Ha Long Bay Manltgmca Bmd m e t up in 195% as a pmvhcial departmeat, althoqb it also reparts to the National WESCO Committee in the Ministry af Cdture. The Board has 100 staff ; t a d one hnctioning boat. The Board grroaridm

cast rc~~vcry. by aliecting and using esltay fees from b a t visito- unique wrangcment in &I su~pplemm t a me: billion C Q S ~ . Effective

management is eonstmhd 4 limitad re espmsibifities with a muItitLOde of at urbm and conservation fwes.

Cat B ~ V ~ ~ m s r n ' ~ Hrsdi 1Yntbad Park Adjamt part of W a tong Bay contains Cat Bn Mirtianal Bark-Vi occupies two thirds of Cat Ba nseianal park coven 9,800 hec and includes 370 islands. Cat Ba is descrikd and contains endemic W@m md fauna,

Lfniqae Specie% The Natiiainal Biodiversity Action Plan far Vietnam gives Cat Ba National Park the highezt conservalion priority. Cat Ba lsfand is & 8e-t.g d i s ~ c t within Hai Phong a d was excluded from th Wmld Heritage Site, minly to avoid the chtlenge of inter-provincial coordination. Cat Ba Nation& Park md tf%e Wwfd Heritage Sik s b r e a wmmm m d n e brder. At bath global; and national levels, the mest 3mpmnr animal in the mea is the G~jdcn-headed h n p r (FU~rpn~pi~keco~ ~D~~o~~IJwIus) a monkey h t wcurs only at Cpt Ba [see Box 18). A major recent decline h m rra;de*ven hunFing places it in immiraent danger af extinction. Ttse in~eflebrate fauna of Cat Bg, notably cave fautunsl and land sn~ils, is very rich, pmbby with many mdernics. Highlights include ithe rnmt northerfy mue-adadpted emb, and four species OF me cave snails, all &which are new to science. Caves adopted fa tourism are no longer suitable for inveficbrates, Major gco1ogicaT and wol@gL~ai dif%esews l e a Cat Ba and tk World 1Ierihge Site mean that bto~h ares need consewation fm fulf qesmtatim.

The G411*&habed bngw a f m of monkey, occurs nowhere irs th wr1d blrt ctrmprex 8xof tangus foms r@@tri@d %o bms, Vietnam end southern Ch&. which lkie mt& on IhesZane

n

Diverse Presstsres. Ppabgcfiun and managment of Cab Sa is rlmdy linked ta Psunism issues. The park faces a variety of threats due to mvironmmM law violatians, includiny poillution from a fish processing plant and fishing boa@, lack of urbm waste disposal, dynarnib fishing, damage to artifacts in caves and, destru~tion of coral. Controlliag each ofthese problems is &chniafly the resyonsibiliw @Fa different natiansnal olmw, but none are ~ e p r a n & d om the island, making the district adntiinisbtian re;lalively apltanomous,

Mamagemmt $tr@chre. Maagmea1.t of Cat Ba Matiwal Park by the Forest Prot&ign Minfsgy of Agr ieu ' l~ and R m l Der~l~ptnent is limitd in its cf fa ivena ,

by ineffective law enfarccmmt, mpid small-scale unwdakd tourism devefopment m the islmd md arimmXzally4ama&g mad c~nstmction. Majer cswi@ md mativa~un building ~ B Z n e d d for the rrranqgcmmt and staff. Tourism could be used to help builid a emstitumy o f s ~ p r t Sbr Caa Baa Interpretive materials developed as part afan s w a r m e l d i n program m u l d hefp all visitors unde~hnd and appciak~fht: paik"s importance. Cisnet farming and dtxr ne-stmking h~ve; Bsm prapsst;-b far Cat Ba Natimaf Park lsut these are irrelevant to the garkE"s c o n m i o n priorities a d should be di-atinued, Xn cctxatrast ta the Nrttionwl Park, n d y milifmy insbllatiom and private o y s t ~ farm sites are r iw6p~~ly mN@d and protect,, TRme may be oppaslrmities to mltahmte with these ~animtisns in wildlife pratecaian.

al Areas. Northern Vietnam estuaries mQ deltas supgm~ m a ~ f ~ k n d i n g ofs]6sg@ebitds in winter, gossibly undyribIIAd aagywhm else in the world in terns OP af &reaGned spmks md the proportion oftheir wmrd latian in the wea. The

black-faced SpmrilBitl (P l t z fa !~ minor) is critically endangered [ t k wrld population is u~b&r 400), blardanixnrs"~ G r e e s h k (Tringa grrifijkr] Saanders's Gull [ t d ~ r u ~ ~ ~atmdergi) md tk Chin- B p t [Egmf~a ~ P I o ~ ~ P Q Z ~ ~ ) ara! all edangeaed. $Re Spoon-billed Sandpiper (Cabid~is pyg~rtae~u"] and Spctt-billed Pelican (PeJe~~awus phiIippnsi$) am vulnaabie a d several ~ thm speaies are aear-thare?amed. 7&i fa-shrinkin4 habitat is acutely th~atepled by canmicrsl k agrimlture, aqaatufi6re and manpave glanbtioe%. 1dRntificatian and es&blislrrnmt of a wdm sf coasgal fix the sonwsv~risn of migratory bid sp Id saggart tk mhbnmce of glabat as ml t as regional biodiversity. In addition, these s wwtd support div~miflcation sf sites Em tourins to visit smd cram " wt@ratd to bid watching.

Eastern &law&, An o p m n f v =is& to adapt m a w e s for corp Ion of amas H d b g ~ Qik, Some of

rxu-emc fowland eve

iun value &at we reported ta . AlWugh a detailed

field sumy wsuld be requid, available inf6pmatic~ I tkat ~fiirsns of Ba Mun and Cai Quit islands shauId be co&&rd fm estab1ishcitat and demlagmat as conservation areas, The inci~sim of L U C ~ protected would dlow ereation of a mamagemat mne aknding fim the Thai 'fhuy N a m ~ e s e ~ e tk cea& mt)l of Hai Bhng, to the Cat Ba Ma~epnal Park acra i~ &I L ~ n g Bay md k m the eastern Islaah.

Coml Red Emsystem, CDml reefs are distributed alosli the caastal islads sf the re@on Long, soytfiwest of f i t Ba and mtmdwl to the

and flora of these coral reef f r a b i ~ iacfude malogical value md scientific es and taurism, t h q we currently aver

5 ~f ~ w S S @ ~ E Qfl tke I'BZfs WE CQ~S~I~

eim f i m mislirrg and qtaa~ying md use of ssn. TbBe =&bZishment Q.P a

of Maine h w e d Aeas has ken

the lnternarirrriaa C o d Reef Initiative (KXT) and to provide a basis far improved mana t: of

Wsiiar !&m&ti~n, Lctwast invastman& W d $a made irr vilsfhr hhmbian and m n w r m t b n &uca&ra r @ t W to tRs Wrld H e ~ l q e Site a d Caf Ba Isfarad, bo&uopesatDm and'guides@hould be tmln&, r ~ u l a e a n of tm back f n m w measurets s W d klB & k ~ n .to dwabp sf= as high qualie@ brtg-tm tourist

AtatgeW pmgmm &md &r? CEewbW with

Id suppart impmed faall

CmperalkF~ M h s w of nduW forests and vmmUm to plantations fs an important Int@nena=8 af bbdbmity MI the mai islands. A dialogue skrautd b ~k'5bt41LheB with r@pmentBiivBs of Be @tic and p

hteMal araas as pad t Uynaml~s may cause

andi &wW. whftm possible, be manwed krr them. Ha t m g Bay W N Hedtage Site8 Mmurea ahauld bs: supgrctrta tg s-frwngtkmm the Ha Long Bay Mafiagemant Wad mb to pwmta maw Mc%tive d l a b m t l o ~ ~ with grwlem 88 ibb frps shipping, fishing, law snformmrr-a, Lz?w%rn end other m l e m is;a~@. M ~ n a p m f of Caf Ba Ma and regutafecf devit3amat should undertaken to m a b Gat I38 Island and iis Intqmted wtoerrrim destiwlsn, indudling a waM- manap& p W with strid I b costs wra km mvwed by fmm visitor her; and the d ~ l I k ~ l y Of high-quality servkes b hn'&s (visitor in ete.1, with kwWw deveioprnnt af the Consewaian d thr, Easlem [stam* shouad be md8d f ~ r mwey, planning and ~~vskopmnt of pmteaed areas in the remirring intertlcbl zones to m m e ndgrery bird s W @ s rsf gbbal signifieanm, - Man'na Amm. Pl;rnning and establishment of a MajJae Protected A m system *uld be

c resour- and e?n&ngered specks, fhis muld qu im fisPd su I daliarerlirm d mniww. Man@mw@ Mana@@mM. A p r ~ w m fw wnmatbn af mstomWn program imlvlng local: comaruniflm shstul measures to avoid seeding mangroms in pmdu&fs InterWal Fieid Srtrvsys, A systematic program of field sutwys s impraved undanbn- of the natural Featupiag of &t)l pratected'area~ @mi to provMe a sou r manwermant af nature both wihis, and r p u t s i ~ p&&ed arwas. TRL should hide bath tem.ilr"lsl and rnafiw surveys and mfaIusBonri af the lessss ktxrwm t s k d s and mml reek.

OPTIONS FOR ACTION AND THE ROLE OF THE

Csrngr*haskte &v~I@pmmt = &a Xaeltrske! Appmiach. Comgre ve. dwclqment is an apprmch ht enmurages national and intematilonsl parties t ~ r work tog&er tu melt the

ecmornie growth, povwty aBIwfi

i t ims, w c i a l l y tbxe in pgveq. Zt caslplernenary in-agims: smistud, human and pRysieal. the skills of gvemwsmmt in plaaunitl financial rnamssnent and

its we af an exxlended timrsfmma, as laag as 20 y a m , ta allaw fot the phased plannin~ atpd impbmsn@;fti~n of a wide rage ofcowlemenry m m u ~ e s and mlizaticm of objectives e~tabli- for inia;ia~ves.

An Oppmaity for Enbmocmea;t., t, ieoonomie wadifions rewlfing from the E a t Asian crisis p v i d e an apsnulib upon tlx gavementC$ s6ng commitrnmt tu camp~heasivc W e f q m t as an fw Zcmg-km dmejopmt ofthis i m v m t coastal region. National, pmsvincial n caul& in this mtext, make needed refms, put new pficim in place arwi lin slam into their strategy far dmlament. By strm@benin$ institut$ow invwing in pubk promm, mtionatizing &c rtsgulatsry framework a d rrddopting matuimnmmI planning and managemetat, tk Pegion can

ncc in growth Given

build upon etamenb sf & resgmd to the issues and

Movisg Farward-f me la ping an Idtiative, major factws me required far srrccess in undmking a suaxmd"%~l fimprehcnsive Development ftairiative at t h ~ rcyionaai ]eve& creation of a shard visim, w&hd political commitment and public support, and a bmd- baxd partnership (BQX 20). These ffncors are most o k n ~Ji2jed tftr~ugh 8i prmess ctf

developing a common appmach EG det!rtloprncs%b ehdtenges by gavmment, donors and busineatxi. This can Bcili&tc effective coardinato.Em, assist in inE@m%ing priority activities into

-national dewlapmed isnvestment plans and suppa* timely resource mobiliatim fwrn intem6snal ssurces. The Governments af Vietnam, blink and Wai Phnng elauld sx~ragtkn cr~adirration and management structures and create a broad-Bs-sed partnership with a coal ition of ~liorasal; and internatitpnal parties who share a cammitment to 5upprfing the chllenge of cclmprehrnsive dwclopmmt. Given the range aC actions and the 1wg-tern D ~ B ~ S L T C of ahc Initiative, spccifie: measures should be mkcn to pravidcr; fix an ackivc rale by yarovincinl and local governments, lacar communities and nang.avemrnentai aganimfions.

Dcvetaprncnt of an AMiari Ppogram. A C3oqrehcnsive Dcvellepmrnt Initiative shauid lead fa msbtfts QO the ground as soon as pwiMe, While a multi-phased process would be required far long t ~ m su-arccess, an initial step could he the fmulation ofan Action b w m that \vouEd identify priority a~tivities, ln order to effectively prgceecl with devel wpment of sn AeEi~n Progmn~, a clear consemus must be reached with the G~vremmmt aF Vieman md &e provincial authorities on their intenst itnd cammiwsfent ta this process. The eziprie~rce of the W~rfd ESs~li and other danolis indicates that natisnal o m e ~ k p is the rnw critical f~ctor fix s w c s in both the planning and implcmear&d~tf phase% rsd"mh activities, XR addition, s~urca o f ~tapprt: far an Action PTog~am must be idendgeb from naGmf and inbernational sources, B m u z of the very many options and pssitzilities, eaardinsted d w r a&sranm twuld be wful ta suppart the evaluation ~fissues md development of wet1 d e @ d gpr"orities,

Role d & e lntemagiansal Comrn~earity~ Whi!c ck naiom1, ~oldnciak and tacah would have the respunsibilily for prcpctmtiota innd impkmaasian: of" an Action

Program, the role of the intecnatianaLmmunit)r would k significant. G i w cumnt censtmincs, successfief deveiapment md impiementation waufd rerquiw well-organid support fmmn external sources inctudi~g international tlinanciat institutions, bilateral donors, private Fown&tions and nmgovc+mmentnI arsnhtions. Support far investments from the inteanational community w ~ u t d include tuans s ~ f t Istsns, and grants of a variety of types. Con~umatly, private sector investom would have ta k mobilized, acting. bath an heir own and with sumo@ Cmm risk guarantees, apor t credits and other reiated meehznisms. A number ofdmars may be able to provide sugpart Far selected pla&inl: activities; GEF rwurces may be accessible fnr meeting irscremenml casts unda- i ts Bialogical Diversity md EntmatimaF Watw Pmgrarns for the mawem&t of the n a ~ n l resour= and marine envimnmmt of the region givexl their gI&d importance. Cansideratian should b given to passihle s ~ p o d from the UWESCOl Wwfd Heritage pmmm and other special instruments dcw~lapd tc~ CGBSFSMT?. value5 af intcmatianal sign i tic;mce,

@ t i ~ f ~ f @ ~ A c $ i o ~ and fdtrs R& uflkcz Pnborrtationnl Cumrnmip GI

I Box 20. Compmhttnstve DovehyMwMt lnitlslthros: Lessons Lea& 1 archas

M large 4 a d i issues. Thess prugmms must use a Bme frame of often 10-20 years. due b the Reed to p&@ plan and undertake actjwrs amoemirg poldes, pfaming, investments and instihrtjonal development. Internaha4 experience vdh planning and impmtat ion of large-- dwebpment iniiatfves at the mgimal and nsfioreal he4 has muW in the identifrcath of three

oorrrrrdtm- and broad-based puMc support are m ' a l to achieve s m in development and kmp4ementation of mmpebmive development initiakes. Measures should be taken to support interested patiies to develop political 00-t and to work through nongovesnmtal orgmizatians and other parties to mats public suppoct

CurreaC Ilaternartionat Suppart. The Cmprr:kmsive Deivetnprnent Initiative would build upon @uwent ;and ptamed donw activities smre as a m~chanim to ereate "sytle~r"ban$ '"added vatu$' from the activities of the ViWme$& and mix in~mofional comrrtunify. As a Fmmmmk foa regions? dmelopmmt, t b Action Program wodd s& to provide opp~Mit i e s~~ fix the Government and the interntima1 cmmuniQ t~ develop a cormmaa agnda to facilitate quafit+y g ~ w t h Bnrr inv t and planned ilratmatimS1y w p p d aaivEtim in Qwmg Ninh and Hni Phung i ed as Anna B. "his mvim shows a @ma breadth s f a~tiirities ranging &am large which are individual1y and cumul~tivgly canff'ibuting to th

rt ig providdl by the Study an hvirontrs.%ntaI Mmagement af Ha Long (see 30% 2 I), w being undemken by the GovgrrtmenP oFVhmam with assistance Erom the 3apa.n Inre (HCA). This study and other ptannied and onwing interwationally used as '%wiIding b1rrrch'Y~-r realb~iwr of the hitialive and m

ng serBected priority aactions in this i nt podm of &E reginn.

&a. T M study area mwrs Ma ~ R Q Qty* Cam PRa T m , Hmnh Rt B M part of V m Hung and ail sf Cat 6% Ishnd.

me& wlll be hbgmPed En@ @I enuimmmrat and tan#

mnagment; aolid waste rnanag~m8nt; End oontrol; oonlxal d f d mining, proeassing and .transpo&Naat; mAama rnintng areas; and rsgula&n ab tourism; envJronmmf m a n a g a m of ttre UNESCO Ha Long Bay Worfrll H~rRage

emant &t! ErmlaljJ~at rasaumes; ers~EnrrwnerrMl Taae plan will also include mmmmdsb ilasMtuUcwt;ai

amn$Bm& for plan imp!eme&tiaw and a &tailed finenciai analysis of the md and b n d b . - -, , ., ,,,,, --

A Stradeg for GompmhensIve M.zOpme~t, Taking futl advantage ofthe sbwe mpomnities will require a st%p+w a d c engive appmaah &at balances shm- a d long-

8rgcr manmic gads and is eampta.%ie %with national aspirations and Iscat; m d s , TEFe th0rirti.e~ musf have ammh@ and pky s feadership role. A Eul arsak~ for cam YE development wi kt be one that;

a Efl&~1@ AIt6cates Scff rce R @ ~ Q ~ P ~ B ~ I

e~lcrymcnt and productivity, and mduees poverty msprenr reviews czf public investments using m d m twIs of amly4s; incsased capacity and ca~~dinatiotr amng agencies remnGb2.e for planning, suclxss the Ministry of Planning and Ilnvestmat (MPi), mainline ministries, and Bmrvirrciat People's CommiBees; and aw af the wiaeP eoonomic outlook ia Em1 Asia. Exp&eltlcc?: in provinces w h e small- sad medium-sid eDttcrprises are gmwirsg rapidly toas shawi that X~rag-tern poverty ali~viotisn %it1 uttimtely d c p ~ d on aplayrnent aa3atismn in the p~wz lr kctors, Q m g Ninh and Hoi Phmg h v ~ i m g ~ m t advanrages \%siting taa k develovd in the d"m of l~w~cost; Iatwr md pmximl@ ta intmatiwal m m b .

.rb i k f ~ b i f i ~ Mm $@arc= af Finance* Firaancial resources must be raaM1kd h r n both new and Bradi~anal sraurces, but espf;eiaHy From the. csntinuow ef t k domestic small- and medium-mle priv~tr; sectlor. mile this will. r q u i r ~ a range ofpolicies at tbc mtianal lwei, the pmvitlcies help by expressing thir ptefmce for speedy refm sf tihe banking sector and investment regulations. Hai BtZaag is 8bwdy making v e y ~YXX!

Optio?aIar Adio?~ and the A ~ E ~f Be I~~fr rnuf im~I Carnmulilily 53

pmgm In areas such as quitimtkn; Qwmg Mnh fass the poten~isl w do the =me, Maw a for the provincial ald c i e m govm ~ m c t ve atad mplapmr-r&h saxtors sach eve@ towism, and gain re1aM assism= from hteested d m r ajpncies.

+ S u p p m Bdawcecf h m l reaf grow& and environ k p ~ ~ e d as m u ~ l l y reinl rcik wtkw murully desmcti dmeF

3 demadiig this appr'o~ch i

in Qu Phng mmpatibip, with fisheries; polluting indwh-ies in %fiw cities develap in w a p t h f do needs oafttre ewrisrn indmhy andbthe k l t h of lwa3 r~ddmts: and e aeg~lations do nc4 unn dcveIopmmt sf new and Gbrant empfaymmt- ermting indus&s, fnfe far tcchraicd assistance tD foster this approach can a%eady be seen in Wh Q m g Ninh and Hai Phon~, ilt is feasible that additionat assistainm could be aetractd for Initktira ra improve @&an e~tviranmaal planning and sonstal mm mmageaaent.

EEam~ats of a B:orrapmheardvip: D~vefopmmt i l a i tb~vk On the basis ofconsllltalio.ns and field-based reviews mdemken by a goup of World Bank staff and Vietnamese cc~nsulanl, a

ent has k e n made of ptmtL1 ~irnaents sfa Gmpleknsive bvefapment Initiative for the Qunng Winh and Mai Pha3ag costal region [Tables 5 to I I), This pmsentatiorn is intend4 tu provide am srverview for initi J discussion by interested p a A ~ s within aMlaur%ide Vimam af the wide range of carnpfernentq actions that could be corr~idemd for admion and support under the Inititttive. These actions iaslude policy arid pgapaning ac.tivitics, pblic-wvate p;tr~nmhips, invatments of a variety afscalez, gmvmtive wcasmrm and in~t-Ei strenghening achns. Iza devclopmm of the preIirrrinaw @ssrrpmt, a set sf well as e series of potential strategic priorities was tdcratjfied. Thew are gre~anted klw in a summary f~m*

Five Arws for kctiam. l%2 p ed Tnitiariw could Iwf~dt five O ~ M S PQT a~lion f b t would sttpp~tt quality p w t h and lead to rea'limtion of mmpf13:hRnsivc h d ~ c n t . "The potential arcas fw action under the Initiative cauid imlirade:

+ Strem@kened ,B-c~I"+ PIa~cnhg iu ~ I I X : Sasf~igaMe Da~ctaprncnc; This ~ ~ o u l d focus on actians atb estabfish a cwdimtd planning dructure far the region that expands inter-pravinciaf cmrdinatiun and reduces fmgmantarion in dwisilm making, kt worrid sugprt measures to i n t e m ~ e envhmenaf planning m @ l W and tmis in& physical and s-pnbal pIanraizag and the d e ~ ~ s i ~ n - r n k i process. Suppart would be provided tto strengthen €he skills of"d~is~cm~mkms and plmaers in develapmcnt and implementzttism of updated p f w on the basis a f k ~ppostuni-ties and constmints prcxnkd by the crisis, This would include ~pgmded training in project plaming and maberrgmmt, financial mmgemmt and acmunling and use of envimmemal assessments and environmental audits.

+ kp-crtrdgrd ~ B l i c - P ~ f ~ PsdnemL@sf@~ darsmaqed E n e p l ~ ~ c n t Grrrwtk, Given $he need 0 mobilize additional resources far investments, griaa^@ would b given to the expansion of pubtic-private parulerships to provide for employmat g m t h , iu~~reased ilfcames and water oppomnilies for the Memres to be adbtes=d would include simplification ~f the business regi~tratictn g business skills; mining and cxpnded

m a 1 credit. Actions related to aw3d include towering the tax rate, sfoht same tax sckedutes for a af entqcirtes ;nd eshblishia~

ures far b~nkrugtcy, fin addition, cnniderati~n shauM k giuesz to revision of existing Land regulatians to p m i t free l:smnsfm and zarorfgagng,

6. S-ppJZfor Eavrndpft~n& 13Fe restrict~d avaZlaWlity orinvcsrmcnt fwrds mandates that only eamfUlly scxd, well-justified priority inm~tmcnts can be *

stfpprted, whether large or inwtments shcruld strengthen the government's ability te pmuide ture and facilitate the ability of the private sector to invest and crea far gmmating private pa@icipilEim ia

auld be made in u r h infmsmpctrere

+ &wluco"lpd Ae&1%8 #Q AvdQ m u m 1 costs, a

rcs to avoid an&m red

hit~bxpb, ~mplfpmmted by ~fm-i@bened skills in dl-spill contingmcy planaing and mwgmcy mmmge Mitian, significant GO@ saving cauld be achieved, and the genefatian of bxic, s and stllid wastes reduced, thmrmgh adaption of pollution pre~ermtiw-i and msgsminimimtion programs fof the key IndusE.aia1 stxtors and parts-

* D~~~sr ' f icpu~ia~ 0JBe b Smtegy. 'Ptaff- Iaeiliative H I O U I ~ support m a u e s for diumsifiation of the investment strategy by facilibting enhsn~ied viwte =;em interest in the region anpi by addressing i~onsvraints to dssarezitic rrnd fororeigm irnvestors in a rarrgu of activities bath large a d sonall. Given its high potmtid fer direct and indirmt employnrat @amtian, spe~irml emphasis wauld be placed on div&ficatiask sf t h towism industry, inelding cmefiilly planned md w~rll-desi@e$ public and p~vake metor invesmab in traditional towisnr, such as impr~vcnrmt dtk f~cilifia at Cat Ba Notim~l Psk. This would be ~ ~ m p l e m e n l d qaoMs%n and to imreasc t b ~ range oftaurib Vicwantese, Chinese and o&er infmational tourists. In addition, the rapt mng mde and invegtrnmts links with China, especially in the Mong Cai area, bjRou1d be C P F ~ € B ° I I ~ examined,

Strategic PrioriBtfes. Strategic prioritit% under o cornprchcnaive belapment approach may include:

+ H@vfndu-. appmacfi, heavy iadaasfryq ly c d mining and prmesslng+ wou1 ta k v e s key role in the 8 ent prQwss Simi.bimt

ng would be requid f~ll~wiozg carefully be iaped plms W a e r: swiat dimemian of a h m * f t. is anticipakd that wmami~al~y

attractive b v y indu p e r i p ~ q tZQ.wevets New h=sm~nts would be

Ily evsfuated, t;rP mpowive to w k ~ t cmditims md envim industries wwEd be antiaipated ta haw limited polmtial fbs p w t h in

cmplayment.

rr Light I ~ ~ M s P F ~ , Light industry this nppm~ch and focus an cxp~a- orimted wtors swh as; hoes , . BiveaiAatrion efforts wa~fld also be made io -den, the range in the form af c d its and advisory support would k ma medium enhrises, including

in& the Red Rixw Delta. Mensure$ would h taken ta attract private re pmpsr worker hmtth and safety, and mcou

with miGmal envimnmmtslt concerns, These: industries p r o ~ d e a high job cmtiaat f i both mm md women,

gne: priadty and include suppart for mi% eFFcimcy afmuni~ipal ga by improving mmagerncnt, fiaam~e

amc. E q W s wwld be ptaG hening &an plsffning to addresg the cb1lmges 1 growth and fef;mtim, exp~a$ian o ae@tm and changes; in routes, InwSrneaaEs ~voujld be mde exxpansim of water slupply, was tm~~kr c~llmtim and tapameakf, mlid was@ management ;and rrrh transpart, These activities would provide rmcrdaatf: potential far impromv job cmatim during the uanstrrrction phase. Commoriitiies. could makg s m e urban impmvemm~ a1 the lacal level themselve% u s i ~ the "smdl bricks appachm"

* I n f w s ~ ~ ~ a x e J F ~ Y ~ ~ ~ Z B I I ~ S * Impoflaat infmsmeterre investments ofn wriq of s i 7 s would k made under rhis apema* however, they wwfd be car~fuIly =view1 tc~ assess h t h need and timing. In same eases a p b e d a p p m h would be adopt& far

tnts, ta allow them ra pracd in o wries .sfplanned stages that spread casts over time nnd faeifititte a mare "demnd dPivenm apprwcch. Actian$ would imlude continued upgmding of the road network b $c&r link major urban, iAdu%trial and tamism areas, and impmvcm~nes in pad facilities wken jugfiRedby traffic bcmands, C~rmsideration would aha be giwn $0 mi1 md airport iinapcavemmb. Thw activities provide a large pa&nrid for tempawry jot, creatioa far k i k d and scmi-sEIfed workers.

I, Turrrisno Dm~148pwemf. It is anticipated that targeted investments. wauld be mark in Wai Phang City, Cat Ra Island ~ n d B e Ha Loreg Bay area to promote 8mrism. This wo~ld include upgrading holeis and improving e~viaainmental wnditi~ins an beaches. SpeciGc siaurcc mrkets wwfd be .lr:rgete4 fo meet the needs and i n w s b of Vie@amcse, Chinem and ~tbm iratemtional vigitms. Compfemcnbry hvelopment ~Fgltema~ve tourism att.K.actims would increase the number af visitor days while at the m e tame reducing p%esstkrcz on cunmtfSr develsfxrd sites. "PRese activities would provide ;a high ptcnrial far employmmt &aamatim for both men and ~ m m .

~r Etz~ l I~~~wer~t~d Maaagemerpr, A divewd series of plsaning, curative nnd preventive enviruwmcn@l. mmagemcnt activities would be utde&km, Ccnml ts this would be omper;ttive preparatio~l of n~ Entegratcd Caa&l Zmc Managemat Plan. This would include measures to dwrease the rate a€ habitat x t ~ v m i o n , reduce industrial paflurim, improve water quality and address enviro~men&t issum in coal mining. S u ~ ~ ~ ~ u l d be provided to expand food productian nad incomes &om fishing, aq5t-a~ultmre rrnd mariculture. These activities w v l d support maiiratenssrce and impravlement of p~.atblir: h d t h and the integrity ofecosystem, I tared incarnes would be awcdated with activities; for Eskries and aquacultu~.

these re-mrces &P

f the Nai hng Bay Wwld

souma of i n m a r i m 1 s i g i new sites far v i ~ i t m .

* hcilitats expanded trade with arri would be pate a& the Marig

goven-t may retain a large ptuprtiion o td k maint;irined, PPjoriQ would be placed an locally financed muni imptove linki-qes with Ha Long City and Hai Phoag, Esonamic p ~ w t h in this m a wouXd create a wide range af mplaymmk opportunities in a less-hvcfepead poftion of Quany Ninh

Table 5. Proposals for Economic and Spatial Planning SPRENGl'ilEN STRATEGIC RUNNING TO ENSURE. COWREtI€NGME DEVELOPMEDJT

pdate Plans. SllpijSi3"- and pimmri in and 04 a

and -.!!?anag--tfrnandal - acpm- --- P ~ E ~ Z Z ~ ~ E S ~ E ~ ~ W P ~ ~ .. + Create Enabfing Environment. Undertake measlrres to desian and &-T&wimnrnenf

and towism. COSTS

bmprmnt an lnkgratd-coaskd Zone MamgementPlan

nof

I b A N D P U B W A T E PAiKNEFZSmPS FOR NCEAsED E W L O Y M E N T G R ~ R e d ~ c e P e i a e D k r l w t i o n s . A d o p t ~ t o e t i r n i n a t e p r i o e ~ $ 1 p r f c e s f w k e y ~ , s u c h a s

~~b a . vhkh creates m instiZutbnal ~ - k w k w m m y prhrade ftrms. s u ~ j ~ ~ + & ~ ~ s I._- •

Support ~ ~ r t ~ and Rk&d&ion. Pravkje s tmat b re&uciurin;bsnd mcKfemiatiorr of

..---- UNDERTAKE P R E V E M ACWNB TO AVOID MAJOR FUTWE COSTS

Table 7, Proposals fur Urban bwlopment -N -7'EGIC P ~ & f f i TO ENSURE COWPREENSM MVELWhb&JT

--- U p d a t e ~ ~ P I a n a R W a n d ~ ~ & m a s t e r p l a n s B o ~ f i i r w x x l o m i c

ianal W in or& to facili i sharing of in a fuil ~fcomron-- 1:~ PUBUCPRNATEPARTF(E~H~PS E ~ O V M E N T ~m

auhns krbuding ,wh&iWh of Wiw, reuse af hdushial& and irnprovemnb inin~s-- suPo#r PFZEoRnV t a J V E S ~ - - , - -. --- . tml#MN) Wsfer and Wastemter !bfvkes. Undertake phased progmTd7he ime~ b knpro\le wter and

I - - -- . - - - - - - - - . . - - --

WAND PFBUCPWAYE PARTNERSHIPS FORIEC-~O~-~~-OROWM -..--, Consider sate Sector Partlcllxstlon ln Inh-asbucaim. C~Consider m w e s for ~~ of 6 - z

relocation. Fur(her use in clasnt foatbn may require an extended dafety plan.. ---. - UNDERTAKE P m ACM)OJS TO Ax- MAJOR N N R E COSTS ...

~=N"'GTHEN STRATEG~~PLANNING TO ENSURE COMPREHENSIVE DEVEL~PMENT - . - - . - -

1. Prs~are Reatonal Tourlsrn Stabesy. ~r&r iand irnolemertt a rd ina l tourismstratem that builds

and Waknent tc

mnsidmtFcPn shukd bbe

fteroolWr;ltbnamongttwtwoprovincssandrelwantnd~.Thepr'rva2eaedwcouldalsobe~- * A d o p 4 P o l l u t f o n P l w e n t i o n P r o g r a m s . ~ ~ ~ a n d w a s a e ~ ~ ~ k e y

'hk&riA sedws. Train

I SUPPORT PRIQRIM INVESTMENTS -..--. -...-.---.--. • Priority Coastal M w c~cttons~k&ntify and bmpbment a series of priarily 6&-nt-- for impcrwed.

s u r v ~ ~ declaration d areas, training of m - t a ement pwsonnel and monibdng. -- UNDERTAKE ~ ~ - r i m ~ A ~ O N S TO AE%D M A ~ U T U R E COSTS - . - . . .. - . . . - . - . . . . . - - . - . - - . - - . - . . . - . - . . .. - - . - . - . - - -- - - - . - -.-----..-----m.-..""a -..-----

I a n d e s ~ i c t t d Surveys. Undertake a systematic progm of fieid surveys to assess current status of k g

- - . - ~NERSIFY ME I ~ ~ E ~ ~ E N T STRATEGY ~-b%SerVitOi < o l n t e r O d a l ~ F o ~ u p p O T s ~ 6 G G ~ d e v e b p m e n t of protected mo in ttte t

'

at a glance

EX,

INFOBntlATlUN OH VIETNAM, QUrNG PUFR? &%I PEOFIG:

Vietnam at a glance

TaMe A m $ . Popula@on and b m m k FmHbth of Quarsg Nfnb and Moll Phong M r t c e ~ f$QSZ - 3!H!@)

QUANG MNH AND HA8 PHONG BEGION

r4 not olre a m w t

to further amendment,

Asim DmIopllteM Bwk. " h e Asian f p i e ~ ~ ~ ~ ~ t Bank (ADB) has a p p m d a I- sf U$$80 miflion f i r a Paw~r Dis~buh Rehbilibtkm

Vietnam. ms prusjmt i s expected hing the area is the USS57 mil.

Ruject, which ~ i m s to improve the basic cture at ten fifPhebje8 ports (one of whi& is on Cat &a Island], inellading the upgrading ozs ta lex~l0i.t ~ f i ~ b h e waters within the limit of sustainable resource yiddg, Inn a similar veh, the ADB is abirtgitering the *hied asistanae for a prefeasibility smdy h d e d by a 'IFm2.7 million pant &om Slwedm's

fernentation af a cmstaf an an far Y es in Cb

years and the includes a case study at Cat Ba Idmdl. The ADB i s also AminiHeMg a I- of ffS$60 million .for the Red Riwr Delta Water Pmjjeet, wki& k p in AM1 o.f 1995 and i s expected to finigh in ex 2.000. W s is an umbrc2la project c~vering 25-30 imigation, drainage, and f l d emliJQ1 subprcriee@ in tlk Delta. me ADB is also ca-&isxt$ing with the World Bank a Poptm1atiw and FaxniW Hmlth Prajieef which includes Hai Phang.

AEIS~MP~Q. %ugh n tmt fund a p m e n t with the W ~ f l d &mk, th@ &vemmcnt of Ausmlie is supporting tke US$QQ,OOQ M litm mvimmmtitl Impvefplent Pmmm

(MEIP) for Nai Phong which will &st urban plmrmm to design and implement practical salutions $QP the en ' entisf, *llageco o f h n growth. If; btas nlm funded ex- frm &e WCNto g bialogiml diversity in the Q Phang xgiun.

access c h m t l of the Hai Pbng ), wpl for ppMt,icimto~y w a t m w ma~@lerne&t in Qmng Niah's Be DisHct (tkwgh FAQ), md am dm "Capcity Build@ fbr E n ~ m m a k @an@ Niah povin~e (Flemish Gave- ch comp%~ments a, European Union grant. Sail loans ($10 milIictn) haw k n the purchase af s waste incineram and the extension of the railway in Hai P dditian, w major Belgim investment (IPEM) in the pQrt d~velog.arsmt oPDinX1 Vu i s in

ng mammt of Scimw3 Technatagy and E is rgebc9 by the USf25.6 million gmat Ram &c Gin

Dewlment Agcncy {CIDA) ffo the Vie&s a& hvi;mnment Mpn (VCEQ, which aim a&& the Matianral Envi~mment Age j-pm in Hai Pborag i s h o m i n g a center of excellence in sir quslitiy mn.itcMing a d manap,emen2. A smand phase sf W E P is ltndcr prepa~ation. Severihf RxqIe's Credit b d branches have been set up in both ppor~fp~es ns pa~t of a US$2 mil lim project, undr: colbb~ratr'on with the. ADD, ta expaw.d credit to stimulate kcom+gme~irtg activities $he pow* mpeciwfilly in ma1 arms. Ap~oxirnawly USS2.2 million of the Rural Infms;Ruc~InB~id Watmays Fmject wit1 bz used far impravema$ along thn Red Nvm system. CIDA k also supparting the Quang Ninh Wam~ra'st Unicm's msistmoe to a Womm"a Coal Workem Caapetative. Carradii suppart been provided fix ' deveXQpmnt afa gmgraphic infamaPim Itas% for the Quang Winh a d Haf Pbang wim t h @ ti WE& h d with the Wartd Bank.

De1pmaf%5 ark, acting t h u g h Banish In dona8 Wttwrnm~ kfsbnw (I3 a. It is cursratly &sbuming a grant w m h US$lO+Q million for a water supply afad sagaibtion fs~ojtxt, including a flood w n b a g City and mrming d I 203, B tied US$13 miilia tol Lung: one is aimed a thk %wag@ ayaem.

An ianprbnt oatput is tlw W&1ishea of EM piddiae boob: a g a d guid~iirnt: . AM, a draft

anmmtaf A.wssment of the Develrrpmlejlt M fm Ha Lsng City (I 994-2010) is being sxecuted.. To that d, a GIS d a t h i e is establiskd EOF the case study ZWL Tha e&blisiam.erat ofthe GIs d a t h e for Ha Long city is strmshed flmngh the; project ""Cafswiby BuiI&ng a d m a t e

a r n a ~ i q asE Belgium

Fhl~aB. The G ~ m a t af Finland, acting $braugh L.asE3& bas eoncen&atd Pb a&tfis" on studies and cksitgns for water sappSys mitation, and mvir t. To this ewd it c~mmied US% 18,s million t~ two &wb in his sacbr far Hd Phag md Hanoi.

Frorr~;@. Acting through its Finanm, France has provided bridge mkbilhatiotr, aelluIat @lephons P b g City and UI

a t ~ a s;btpparted by Aw1f-Urcf, m dercating nearly 450 pupils in each p

Ge~aean~". Gemany is mtian af rhu: gr~ject for "Affarestation .in @iarog Ninh" and s id lar projects s (Bac Gisq and h g Son), with h d i n g of US$5,8 rnillisn. It is also involved with ''Sprg,~po~ tu the N a b 8 1 Cente~ far and Care," which imlstdes a grant sf US$SW mitlia-n, This p j e & f w t r ~ ~ a center in Hanoi bur provides to a second mtm in Hai Pb~ng+ supparted a -Feasibility Study m train co~necuon fw PIainoi-I3[a b n g and kal-Haf Phage

Siarlyl. 3Tic Oav af Italy is just wmpleting a projat wigh tlre Tim Yen Peop;lc's Committee ifi Q m g Ni* province to prom at^ the s&irtatple use of faes& far tconumi~ dcwelopment &rap& a U$$1-8 million p t to -@ha Viiemarn's Nathmai FomRry Ar=tim Plan (MFAP)z

ajor m d a leading fo t h e ; porn. Tml loan commitments tbbtgb the QECF arnomt to US%340 mit1io;zr fm three mping projects ia &e trmprtn~on 4 infrastrucm =tor, O E F i s pviding two additional haas for gwojet~ to upgrade Matianal Rmte No. 10 md No. 18, which kgan ifl I99$, of'approx 1 50 Inilfim (17,792 3PYj and $160 million (1 1,863 JIYY) resp&iivefy. A reomtiy cowl thr"0u~k: gCA af US$1.8 mif for aiy impmvmmt study fix Highway 18, In nqmw %a ii reqaesf fmm the 6%~ t of JlCA is candr2dng a &@y on Enviroment;tf

a Long Bay. TIac study started in early 1998 aPltll aims to f i a ; t f a k an a p m t plan for We Lmg Bay &art is cornpatibI~ with the c o n s m ~ ~ o m of

nature, and ta transfer ter:Irno1o$y to esrratiwfn pmonnei Sn coltme ofthe study.

Kwea. Tbte G en€ of zmppro'r'ed a loan amuraeirtg to 18,335 rniflicpn Won (approximately U%$114.6 million, d n g current encbge r a i ~ ~ far usp~ad;Eag $52 kitornetem af National Route fJQ. I El horn Chi LSnh to Bieu N&i in Ocbbef, 1995, TEPg prdcct started in Decernbr E 996 and will be complded by Augugt 1 999.

The Nefherfwnd~, Support h m the Gnvmnent af the Metherlands h s foe~lsed oa &i Phmg, through esst dm.ring wi an its Prrblic mtian R~fann pmjrxt and

nd. Tmst fa the Me~&m& have alss provided to PPze World Bank tct wppa% its US$62010W W&apolitars hUiraamtlfl~I

imp l y

this a m fgaS been sefeekd as a pilot site- far the b

i& has psovi;& a tredmica l design rrmrd wl imbsy imp1a;eJxtatim ieatam, The 2-year p j m t hues an

foarr ams in Camba&s, na, It f se5ds an activiq in md i g due to be wrnplcf~ in early 2999. A phase of this pegiamtf projpm bs and this h~liffiwdm Cat Bsm Island.

$witge~&~d~ cahe Swis mwlmmt mi in a t i m 1 economic ara

t M project is U W miltion and its g a l i s to

suppart for a study of b i d i m i @ uf&o Ma h n g Bay area.

. The United Slca&s Asia hvirmcnhl11mmhip (TJSAW) has md ~ ~ a d w t afthe LICcmfxemx an O ~ ~ W S for Coirnpseh g Ninh sanmd hi P h g Caastal Bggim-"

#@d@yt8 mveIoprnmt miltioaa projrxt active in css, am af which is

is sharing the cost of the pFDjrrsct &$dh S d b ~ l I of the project is ta msum h t the

projects: ~ y g p the past twct yeam, dl of

and its cwp.

ding of US$98*6 ~ 1 l i a n { t a g e k with H m ~ i a d Ba implf:men%tiow until 20&2, AnrJWx projm;ct which will S$"J msroillim] has r~ent ly m m p l d i& fwdbitility

study. In aclditim, &e El to mrsy out a s - P ~ " B ~ ~ G saiid waste glmning d y fnr the Ha tang axnf. Cam Fha wbm swea. Thle Matr~poli- &Vriarmrrarznh1 [MEW fw Hai Phmg will start in 2996 a d be By the Bmk wgt US$da0,m frsm the Dutch Tnrst Fund (ifS5f18,000) and the A~sWian Tmst,Fund fCIS$12.@,00Q]. The purposes of MEIF in &i Phag are to farc~su]a,M: an mfirmnanetlebl s t r a ~ a a d sctian plm and ta mi= ;ecnvimmewbI p b i k avvnrma~s. A wedit im tk4: t-atai[ amaunt of

r 1997 far EB Efer~b"i&w Ttsmmidon, Mstt.ibtP~ofi allmted a fuml of abut US10 milliafi ZO twor;k-s in Ha Lung City. Hssi h n g is me of 20

rim of* Popiulatation md Family Hal& Rcjat, a W d d . The taw1 h d i n g &OK& the W d d Bmk i s

US%SQ million alloat4 fos 9 gravinws aver the priud of 19962M3. USW3 rnilIiurh from ihe Asian &wlspm~nt Bank hag b m altmlatd fur tk remaining 1 I pmvinm including Mai F'hag*

WQ& Bcf~tk - fatprtfafic~~ai Flns~cg Carpsr~~iion (6f C]. 7%~ IFC has prvidled !i;3 1 rni81kx-1 in laarms to finance a f lwr mill lia Cai Lan. IFC aDso had& a m c r b glass f a c t ~ y in Eaai Phong producing caatitkrs foa the domcijtic wstd aptit. m r k a ~ . The IK's M c h g m$a$ Development hcilit). (MPDF), which is support& by gamerrt: and ~hgp; comngs, 7 % ~ -IFC is afsa working cl Committee in a pilaf equitimrim pmgmrn funded by A quitize sixpy-thc sate-awed rnwfia (SO&); halfaf" t k will be done thmugh a Q~nsporent auction system,

Ti"~sspaH+ The road systm in Hifi Bhong is beiag u p ~ d e d with bridge and mad ~bbi t i ta t i~n , Fmee funded rehabiliaat ion of the An D ~ n g k d g t d~ll"ng 1996-1987, Xn addition to e,xEmal hnding, the Ga%mmmr el' Viellilarn (COV) has a W g e t foir ZOm283 0 fm she cansauctim uf Binh bridge* Hationait Highway WHW) No. 5 H-i-Hai Phang is being upmdeb and apandled with a lmn fram the f a ~ p f e OECF, The OECF is also prali8ing two additions.] ~ Q ~ V I S Par prahw ro upgada Nafj;ml Rwtes No. 10 and W0.18, which k w n in t BB,o% &lwproximswly % i5;Q million C 17.742 ]BY) md SlBa rniliim (1 1,863 PY) m~pctively, CompBemmtaw tn this, the GOrJ will use i s bud@& to upgrade PruvincT~1 Rsrlxte NO. 14 and the district m ark, with US$30 millilpn and UTrSSO mi7lilfion resptive1y, for the period 19W- 210 10, The praviw a =at last yyaar of USS350,004) kmv;ad~ mxbimblc dewlopmel.rt of the Route Na. 18 cornidat., Korea a r ~ p ~ o v d a 1oan ,armauntin% 20 18,335 million Wan (appmx, US.% t4.6 znilliwm, rilsi~g cumnt exchange rates) for upgmding 562 kilometes of Naticnal Route No. % 8 fmm Chi kinh to Bicu Nghi in October 7995.3719: m ~ t darted in k e m k r t 996 md will be cornplead by &august 1999, ~Ymld Bank-9 uppde af Nacianal Rmte PZQ. la in%tt.a&\pes a small part in Hai Bhang City. @ema;ny undettwk a p-fmsibiliq st* m a train cmncc~on for Haaai-Ha h n g and Hanoi-Hai Fbang but hm had no ifollaw up. Belgium hs

at1 s podon @fits US%10 million-wrfh sf wfa X"hw

Fclm swd Ng~6at-s. Several projaw have been i m p i e m t d fix the sewices in Mai Blhsrag, Th9. mhabilitatian of the port 1s fund& by OECF completed in 2000. A f d b i i i ~ study was CbfTj~d our by a WSA-Thaila port in i3irnb; Vu ?kt would be an integrated part of the Dinh Vu I ~ ~ P B B E $ has been nu fuehw wwk on Cbaf pwf by the Ane~c-wmai group- A msjos Belgian liave&mmt {PM) in &e port devclopmmt of gi& n ptlgkess, huw~a. Other pas^ -is haw r&v& e x m a 1 ai&mes ~ ~ 8 b 1 y h chmmzl of Hai P b ~ g PC& the improvemefit of which was studied &ng a gnm& fmm Bel@pma; the of Hei Phang haaIwt, which naeiv&

md cantiline handling trai~ng which is cmmly being ca&& rrul and dmds. In Qua$ Ninh, the OB[SF: plans &

deep-sea pwf f"acility at Cai bin, appraxirnatdy SO kiimegem of Hai. Phmg. The

improve the badc infra at tm fir;h~rim ports, an@ of which is an Cat Ba, Islad. The TJS52.2 niHian pilot Canada's Run1 InEnstruetu~~In~and Wa provides for dweluprnwt and maiatenmce of a comdar rrT the Red River syst~m kmmn Ha h n g Bay and the Ta; hi Themat Pawer plant.

Efiergp fmprrrl;rtemdd~b~ The ADB has provided %I laan of US$W million fbr the ~ W C P

Di*ibutiora Rebbilihtim Rojwt, whkh Mnc'amily &fee& Hanoi, Hai Phwg md Mam Dinh, The gmject is expeemd to be mmp1e:ted by fane t 999 aard is ccmsidmed the %%st phase o f a

fix ~fratsiiitartion a d expsion ofpwc;r transmi and di$@i,bu~ion Vietnam,

W&er and Sewags I n t p w m m t ~ ~ . The water supply and sewage sy sbms in k i muJ~ag are goor in general but have k e n i w a v e d d u ~ n g the last few years as a result of several projects. Water supply and sani8ation peojeca funded by DA through a grant to IHai Phmg"r PC (and 10 Hanoi 8s well) provided fwibility @dies and detailed &signs for the citieshater srad efliitatiun programs, Upon a request fram the GOV, the World Bank has ma gr;ajec&, am wch in I-Eai Phang s d Ha Lmg, that are divided into (a) mter suppiy and fb) sanitation. [ n i ~ a l ofPfS$295.m0 and IJS$23B,MO wwe E& wc:h city dwig1;g 1996- 1 998 to prepare for Eaan assisbrzse psajwted at US323 million for Wai P h g and a smewhat smaller arnsurtt for Ha Long, which will be usex! kt, upgrade the eities;%warier supply systems, An~FEatr World Bmk project, this one to upgrade the Hai Bbfag sslwag system far US$30 million, has recently completed ias feasibility sfady- DANEDA has a US$ E 3.8'million water s~pply ad sanitation project cumently urtdenvay fm Ha Long Ci Cam l%a Town. W I B A has dm committed US$J3 mililion fm sys&m and fos impwing the city" d i d waste management qstCt.rn,

T ~ ~ r & n r (tltr~ugJ~ &&FP#~ Seeco~ PaHic@&~]. Bl$h%%en 195% and 1998, it is edimsw t h t Fnwip D i r ~ t Iav&menb VDE] in t a ~ s m dwelqment, rnairnty in betel d her infmstmemre facilities in Hai P b g , m o u n ~ to VS$lS9 miflian, with s w n praj-t~ funded Pry invat~rs fmm Belgium, Franceg Hang Kmg, fapa, Singapre* 31vit.=rlarrd and nailand. I'he

Hinh T o ~ m W 5 : e has rqurtm3 278,4240 to [ W q W fomigneys) a d S bililium (ld'W,M million) so fw this yew, an incmsr: ef 1 1: pmcnt ovw &@ me- md

Last ywr* N~verthelcss, the n u m k of foleigs trturim bs bmasrsd by 9 percent.

E~dmfxaoamcal Manqattbsnt. The Hai Phrmg *re's Crmmittee is carrying out a project during f 948-20QO tct uplgrisde &a Hai Phwg wlid w t r ; means the cstabli&ment of two mom dumping sigs of f a r bta t 'es each and the improvement sf associakc! waste c~lle@aiaa facilities, CDA is pmviding hnding mder the Vietnam-Canada Environment hje?ct (VCEF) b mrppot"f: fg) envirtlnmatal plmitig d monitaring @) urban and industrial potEdna conml; and (a) eavimnmmtai impact assessment @A) in fiur provinces, in Md Pkang. ?%e W D P provided a grant of U$%T27,800 to mdme negative env real impact of o~faepaa cml mining in Quang Minh. In Nai P b g , a Mcmpalitan %vimamm&l fmgmwmmt program (MEIP) wit1 be etxeeuted by tk Bank with a total [DA pang of USS20,01)0 h m the Dutch Trust Fund [USSSOQ,000) nntf the Atts~aliam 'Ym4t Fund (IISfiB 201,0001, JECAwfunded study on Enviranrnent;al Mamgomerat ftwP EPa Lmg Bay aims: tu famutate an envimnmmtal manescment plan for Ha Lswg Bsy that is eamgsr~ble with the colnserwtion of nature. Belgium and the Eumpcan Union are jointly supving a 'Capcity Building fw Environmental Mnnagemml" proj@ar, which includes; a GIS-bad amsmant of Quang Xliinh province. Carladian wpprf; has k e n pmvided d"sr tb dmelerpent of a GI3 base for &e Qwng Ninh md Hai Phmg region ~ o u g h a Wxt fmd with the World Bank

N o f u ~ l Rtmurre Ma~tagmtenc. Bdgium p i d d a mnt of 61S$1.7 miillion to ~kprave i ns t i t $~6o~~ l suppot? for menagerncnt of the watmked ma in the Hoang Bo DiizIriicr of@ang Nmh, Cmmuniw pgaPticiptory inv81v@mm~ was an imps-nt cornpsncmt of the pmjwt. Italy recently funded a. pmjat working with the Tien Yen Pmpje's Committee of Qoang Ninh to promote the sumnimble use of forests t h & a tlS$l.$ mJlim gra~l t . There am very few projects ehst havc been cand~zctd or pfamed fbr natm eopl5ev~atiun e m though Cat Ba fdawd with its Harim81 Park has great p~tmtial for biodiversiey eonscmtliaa and e~ataurism. Tlkt: Cnvcrnment of Swit~rlmd has provided suppopt for a study of Biadiwsi~jr ira the BB h n g Bay area. Recently, ant af the tap three meional nwqmpcrs in Japan, ''Ktimi Shimbenifo, provided US%105,406 via JIFFlRO develop a forest area on Cat Ba HsIand, This pmjest aims at recovering pine fore~t under the Rvc-million-hcc~rr aflotestaticrn pramm ofthe COV. The Government af France has also provided support for park plaming a d management an Cat Ba Islad. Gemany ha8 an affamststion prajext under prvrakiam in Qmng Ninh end two other provinces with funding of IfS$5,9 millime UNESCO has pmviW gants fab bout $6O,a)0 For training, equipment and a gcalogiieab study for the Ha h n g Bay World HtMbge Site. A two- phased ADB regional technical assistance witb ffurrdiag from SIBA aim% to make a coastal a d nurine environmental actictn pian for 6 coastal pmvibeces in Vietnam inctuding Quacap Minh (Ha Lmg Bay) and Itai Pheng (Cat Ba Islmd). 'I%(: Ndkrlanb has sefceted this area as a pilot site tb"e3rhe Integrated Coastal Zane Management Propm.

Ad~t?i&&~Era~i.~n a~pd P~BBYP~C~. Most prjec@ listed under the various sectors include an admirtismta've c s ~ c i v building component. The UNBP, hawever, is funding a projeet whieh covers puMie: adminisaation En a broader sense: the USS2.4 rnilliow public adminismiti'on refam project pfanned far Hai hang, co-financed with the Ndhflmds. %ncTude?d in the W 3 P w r k

program far t999 is a U5;$3.5 milflon project active in t h e pwvim~es, one ofwhich is Q w ~ g Ninh, to incarparate e n v i r a m m ~ l cmcems into national and pr~virtcial m n m i c and development planning ( C s p c i ~ 21), Canada's Rum! Finance T e h i s a l Assistance Project, which is king implcmmtd in close mllaboration with the ADD, has set up a number of Peaipie" Credit Fund [PCF) branches in Quang Minb and Hai Phmg, The P C F network is expanding m d i t to stimulate incame-genmting activities mmns the pmr, aspexhlfy ira pural arm. a A Is alse supporting Q m g Minh Women's Uairm's a s s i ~ c e tu a Wmen's Coal Workas Cmprative.

RLL~CER~ C B ~ . Hai Phmg is me. of f h ~ Provinmx under the Fspulatdan and Emily Health Project, a World Bank-Adwn LkwEoprnat Bank mb-sharing probmrn. Total tianding fram the World Bank is 'US350 millim afid 14SIS-43 million from the Asian Dewlopment athcated far tht remainhg 11 pmvinw including Hai Phong, A prolject to su centers far arthapdie hlning and cue is being funded by C;I&many for US$5.9 million. HLli Ph~ng's Vict Tiep Wospiul, reaov-ated in 1995 wilh Fmch loans, cantinufs to ~woplwak with &e Hospital af Rwen { E m ~ e ] for equipment a . Courses in Fmcb me follow4 by 1 10 smdmt_s at ithe medical university and are su the Agenee: uraiwersitaim de fa Ftmcaphonie (Aupel P-Urn 0,

Carlvers* fm A g d d m and Aquacralhwa - S?aiass ant$ of h&ngms e

Stam and OF IntettidaE W WaB

SL DOCmEIW"S ON THE QUkMS. M1%BeE AND MA1 PROM REGION

Binnie & Partners, Snowy Mountains Engimeri-jing ACN Pty Ltd., and Delft Hychufics. 1995. RedRivc~ fXflec

$iluarion uad a P!anf&r the Futum. P ~ E % of Vietnam Minisw sf Sciaw, Tech~atogy and Envirwment.

2

Bowm, John R. 3 998. Regional 5wtaipt1~&!~" Reporf.

Can, Le Tbac. I%+ "Perspective md s eflnfmbucmm Bevdqmmt Planning in Hai Ninh Coastst Am,'"vimcnt and Sagainahfie &vekopmemz Ccnm.

Mai Phg-Quang Minh Regonat I)ievelupxn~:~~t Cwfmeace, Viemarn. 16- 22 Sept+ 1988.

ne Envimnment S-, h and Cansuf%atian (CMBSRC), 19'96. GrmPal and Marf~e Eaviruamenm~l Muplage~~c~f~u~ f;da %@cg b y , Socialist Rqubiic Fie! N Q ~ + TeEhnicnl A~aexer;. Prepared far Asian Develapment Bank, RETA 5,552.

Chhg Fmg Naigkomg €2 r: Co., Etd. 1 994. Etl b?Srunmc#ia! I m p f Asasmeat ojFChing- Foag HaipIr~rtg ~ C F M ~ ! R # Piand ptT&?~d,

h a , Ngmym Thi led+), 1997. Comrcnl Biodiversity Priorif& lite Yidibrt~ra. Pracatadiqgs ~f the Workhop rn Coastal Bindiversity Priorities irl Vieritlam. Ncrvemk 4-6, 1999. ]Hang Kmg Umivaiw 8f S~icncx and Technology, Forest Protection M a Wide r"md for Hasrue.

Ikprtment of Soience, ~ & a t i m and Ekvironment, MPI. 1998. E~virasme~fal h~resmeaf arrd Swtkei~uZafe & w I ~ p ~ ~ e a # tif6ml Mind~g &IUP in Yictplm: A Case Stdy C ~ a l

Technical C iun sf the mvmnaer~t af WEand (DES"ECh Minisq of Pllming and Invesment, Viemam [MPE); and the brtdiarr Intem;~tiomak Beaetop~eernt Cooperation Agency* Bangkok (a1CPA).

ESSh Technaloges Ed. f 9%. CoimpdCda#p &eprf ~n Water Envf~unmercal Qudiiy TPIHG Lmg Bay. Yi& Urn. it$&& Vigt Hsm Sustainable Ecaasmic Dcvsl~pmmt

(VISED) and Hai Phmg htitu& of Ckan~1og.y CftIO).

ESSA Te&nologies Ltd,, 0EC Gkobl EnruimmenttlP Cartsultants Ltd,, Seaconsutit Marim ResearrcR Ltd,, and Burnside Enviranmenhl hd , 1998. Hb Long Bay ~ n v I f 0 ~ ~ 4 6 r ~ c n l PofItrtion 3tudy. Q~tarrg MnCr Prmi~ce, Vi6ht.n~ - FiauI Rqwrf* Prqmrd fw ths rpeP t of Science, Tecboloby md farent, Quanp NinB Province.

Hid Pbng lkpament of Planning and Z n v m a t , Hai Pkotzg Pdtetrdi& o d Envirronm~mt @fh? ~ ! # t @ t k .

Nai Phang Fmple's Conah*. f 995. basic Orieafatd~rrfar the PFarr ~ f k z - geam~ic il~pmtsras in Hai Pkattg yp fa 2000. [in Vietrmmea)

Hai P h m g People's 1 W6. Repark OF# &cia - E@#ontic H@i PAQR~ City 1WS - 2UiQ. {in BbieWmes)

Matziolos, Mares E., et. al. T898. Assmbnenr of h-ard #ad A w Man-m~l d MAP (1 %886M),

Medi, EnvironmerztaE Technical Assistance Ragram and Uplit& Nagm Envirammt Pmmmme.

Hei, Hguyen Ch, Le Diem Duc, Bhan Nguym Won$, and Npycn Kharc Kitah (edsJ 1996. Nafirn~~C We~~ia~td C ~ n . ~ m f ioa ~ w d LPtracqp: &pus. UtiIi~afIm.

Cammtdofi a& Managemart&. Worksh~p p c d h ~ g ,

Ffd, lalguyen Chu. 1497, thsesi~i k d k l i ~ ~ Mmituriag b E&A~PI@: Ha bngB$Fp em@ sf*. Regard for fhe latematima1 Csnfmmce md Ehibitim on Plollu~iae P r e d o n and Control, Movemb 12- 16,1997, Bangkok, Thailand.

"i

Phmg - Qnmg Ninh," S c i c a ~ a ~ d Techalaa ~~~ P1~1mhi Prepred fw: Hai Phaag - @ang Hi& Regional De~elagrnmt Can September 1622,1998.

Hang, Vu Xum Nguyet. 1998, '"Report on the Fietd Tdp to &i %as& md Quang Minh - Septembr 16-22, 1998." T k Central lnsrilRrQ for E ilc M3mag~mes.tlt.

Huan, Mguy~n &o. 3 998. "Re~port on Biodivtsity a d Protected hkm iri; Cat Bs Ma~onal %rk and Hs Long Bay." R e p o ~ fw the Wc~rLd B a d . Bmai Na~sr;el Univtfsiw.

hi6 - Swial- Ecola~mi~ Charract&dics ofk;lai Phmg Tvnd " m a r & fa: Hai

a m b r I6-2Z

Instituge a f M bning Scieme and Tmhology . 1997. Emvjrotirtiegllfu Mano~"ppfaz~t in Tt?pe~-Pif M i~ i t~g in Qud;l~lg Hitib Prowiaclt, Prepred %Ba Minisw of Inrf

V f E/B5/003.

Kampax Inkmatioaal and Ass~ciates. 1997. Ha Long City Fatc.r S ~ p p f y urtd Sorsii(9tion Pmjec"c Incvptio~ Reprr. Submiad to Ministry of F~1vf ip Affairs-bpi& and the Socialist Republic of Vietnam.

Kaanpsax 1neern;ationat and laassmiat-. f 998. Ma Lsrg E"i@ Wafer Srcppe ~ritdlSCI~it(~~ti~a Bmjecf. S~~fic6fio~a FmiAiEir~ Sfttdjr - $tamp)r.c~ly Rc~parr a& Ertvi~ort$~@t~cx6 I~P~WC~ Aqu~essr?re*nf. Submitted €0 MinisQ QP Fareign Affairs-Danida and the Socialist Rqaab8ic abibvietnam.

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%

World: Wide Fwd Fix Nature, f 994. Survey Report an the Binrjjptm,si4 &ero#d~r~r+ WiIizad!Iorr r ~ r r d i?ti~~.~'omt~tinrr PoacaIriaf r r fC~o kvlat~rix, Quattg ninli. EE, Piet~arn. P w a d by Vietnam MaAne Cansewatim Northern Survey Tam, H a i p h g fnstituec" af &lc;?anolugy,

MEMBEm OF THE PREPARATION TEAM

9

's Marthem Economic cities of Hai Phmg and

mge af economic ac~vitimia, ineluding extmssf@das~ heavy md light Endusary, and expansion o f exiaixt

&ap 2 - M@i" m9~g snb Ha Long ses all af Maf Wong pmvince, ar\d six ~ f t h e ~ i e f v e districts

+ Hal Phung Prsdrce. Hai Pimag i s the major idustriaf. msr:~ of the norrh-rn mhard, with its ports, railway and roads providing an impmnt trade l i ~ k - i & bath south and cmtral Vietnam, and with wutheweps8 Asia gmewtly. Outside ~f u r h Hiii Phone;, the pnoviaoe is chamctehlxd by a*csnltzlral lowlands where Pi= paddy and other a&culrum is ps@domimt. The nasallorn district o f TRuy Myeym, howverP is atso home to the T'raig Kmh and MiaR h c industrial zmes, The coastal t o w of Ba Son has long fu~lcti~ned as a hdidily b a b sgcllt, Much sf fie province's Cat Be Island is designated a n a ~ ~ a a i park, The Island b g r~scently enjsyd a suqc in &e number of ~oud~ts *ifing+

9 Q ~ a n g Ninh f tavhce. Southern Quafig NinA is a study in contrasts, with X ~ F O U T ~

ewtnxtiart snd v e s s i n g (prdminaakly coal and cement) in mme taudsm and -mat.imbin others. Uong Bi "is an industrial ceata that p d u c e s cement, while C m Ptra is the a 1 mining, cmter of the pravirncc. Ha Long City is Q a a q Fdbtzh's drninistrafiw center, however it is also home m 2a lare t;agmism

saI pacessing, a d 8 number sf ports. Ha LOT h y is protected as a Wodd Heritage Site, yet Utr: area stiBl summ an active f i sbq. A number

*of majar shipping charnels: pass through the site. Bai C h y Bay i s characterid by tidal flats, m a n p w ~ and skuimp faming, with n&&bri;g; t o w playing bt to numerous small i d u s ~ e s .

Mnp 3 .- M~T~PF Jmd~ditrirzE S$m k ~ u r r b Hai Pkaf~g, AS the mja g a t ~ w ~ y Beme= a d the =a, Hai fik.mg is a majar indus~al m d paat city. lit is home to

pn&u@ed m@ng &am cement, st=[ and g1 slzm~; and chemicals. Much af the i n d u s ~ d development is coacentmted aloa R i w , in close praximity to the eityk rail, bighw* and part nehmrks. The older kmy itadustry, which was mee Iscatd on the autskirts of s much smaller city, is mow i w the middle: of thtz city. %- oF&e:s% crIdm plants have gaoblms af ineBcieney and plfa~m. Hai P h q plans t~ eansy ~ u t a number sf indus&ialiat%an; programs, including the ampall planning and dereEopmlent of five majar industrial m e & and many major hvcr;mmt projects. The Lorn a nombr of large indus~al plants and meas of rest city thew is significant cement ptodwti~n, as well mi limestame quarrying, There are

w sites pradrnchg building materials moh as mrnent bf;or;ks, brick md tmhr.

tWep 4 - Lmd S P I M V ~ @ Amawdr Ha: L@#g City @rsd B d C k I Bq* *Phis map pk-ouides an, overview of l s ~ d sensiGtivIty m u n d Ha E q City and Bai Chai Bay. it imiudes a,n uverview sf planned devel~pment until 2010, ~o~aa;is&mt with the pwpwls of &G Ear Long: Baiy Mastm Plan. The map dm= its in fonna~m bmm Rua sowces: &e Sick coastal mnr: sensitiviv mapping project and the Ma Lortg City Master Plan. The caloca:d polygm

t degree of' semieivit)r of the Fand type. Ovednin oa the sensidpri.ty map is phmed developmat afvslmsirrus types to 2910. Of particular inter& i s the plnrm~d dedopm~ent for the northern part of Bai Chziy Bay. 3 % ~ tmd types he= ine%u& mrigroves, tidi31 flatrs and ather msitive ecologiebif zmes, It is Inrp~mnt: to mte that there is cram1y very little available agieulntral $and in this region.

Map 5 - $J'N=CO Ha +ang B q Wadd 13:erl'fagtt Ste. This map includes the bowme%; of the Ha Lsng Bay World Heritage. Site and commt>nly used shipping fanes. Scmic: Ha Lung Bay, with its thousands of karat islands, was desigated s tR4BCO Mrarld Hegtage Site in E 994. Wifh a number of nlsjw ports located along rbc h r e s &He Long Ci%y and Cam Pha districts, the Wrarld Hciri:tag~ Site is trmver~d f~eqwmtky by cargo shiw, oil tankers and coal barges, Also plying tlte Bay are many smaller hats, iiaeludi~ mmwcia i and subsistme . fishing vessels, tourist b a t s and ferries. 'BIB: pre c: of these b~zits sed strips Iaxs Ha Long Bay at risk of mafine accidents; dumping and s thr f m s sf pllution; and illegal cmal mining and fishing.

i M q 5 - I j i e t ~ m m e L a ~ d CImsi;@@rfon fmm Hwg C@i tdc Cua 0~g. Vicmam Institute far; Agri~ultZIm1 PLaming mIAPP) is sible for l a ~ d cla&ficatiosr. This map is based an a 1995 mgp done at a wade of 2:250,000, It is timpnant to be aware, however, that land clmsificati@n dues not wccessartly equate to current lalad use. The msitive nature of f9ai Chai Ray is clearly sppaent by t h ~ mngc sf c1mjficatim r g r p present: mangrave% tidal Wsa. paddy Imd, and auwl howfmteadj Band. A~mrdhg to the Vietnamese land classification system, ~nwh afthe area in whish resoume extr-detisn ~ I I W C ~ Hang Gai and Cua Ong wcuss L dcsipated as either rnhem;l: exploieationn land or ~vaskland. W~tlerhcfcss, that are large: areas of nntural, plrvnted and manmove PwhCcb have been or m in M g e r d being t h a m e d by coal mining, ei&er in terns afacrual remume extmcticm or by the dw;nping sf overburden. In addition the region's ri s and coastline are mlnerablc to mnoff, dust and ~ctssmatition.

Map 7 - Rgsaume Er8rrtcbiarr a~md PmcrssirpagJ~om Hang Gai Po G w Orwg; Quang Ninh is Vietnam" llargesr CBSL pdencimg province. A 10 EEomdw wide faufted t r a ~ h zcm

. stretches east-wat for a b u t 140 kilometers, Rewwce amcrion and pr%rcesing is heavily crmuic~mted between Horrg G;ki and Cam Ph, with the Iam3seq.e dotted! by open pit mines, large mauntrpins sf st.erburdcn, sipiEcmt pnitlns ofgeclaimed shoreline, ssmg and port [barge) fa~ilities, and numerous large dump trucks and hopper em. Cam Pha i:; home lo six major mines, afwhich blfwe undesmtlnd and half arc s p a gird The dischiat oEMa Long City has two major open pit X P E ~ P I ~ S and bvo underpund misrcs, Addi t i a d mittera1 rewurces exploited in the area, include lirnustannie, clay and kaalin. These are used in cem~nt, brick and rile indus&es. Metals am not Found in signikant qwtities. COB! dust md. other suqrndcd solids cafe a sig2ificant regional probletn,