The need for more “green” funding

The need for more “green” funding

Double the annual state expenditures on environmental protection activities. This is what the Vietnam Environmental Administration asked the National Assembly yesterday as only 1% of the total annual state expenses was allocated to environmental protection in 2006 – and hasn’t increased or changed since. Deputy Director of the Vietnam Environmental Administration Hoang Duong Tung, in his speech at the 2010 National Environment Report conference, stated that in 2010, the state spent VND6.59 trillion (US$314 million) on environmental activities. This amount was nearly double the budget in 2009, but it still wasn’t enough to address the increasing number of alarming environmental problems today. In fact, the figure only accounted for 0.4 percent of the country’s GDP. This is such a small percentage compared to China and ASEAN countries whose annual investment for environmental activities usually cover between 2-3 percent of GDP.

Though Vietnam has gained many socio-economic achievements over the past year, and in fact generated an average economic growth rate of 7.2 percent, it still wasn’t enough compared to the economic growth combined with the rapidly growing population and urbanization which were placing a great toll on the environmental sector. This statement is according to Pham Koi Nguyen, Minister of
Natural Resources and Environment.

In 2010, Vietnam’s population totaled to 86.9 million people, ranking third in Southeast Asia. According to world statistics, it has one of the highest population densities in the world. The rapid increase of population all over the world over the past years is too much for the environment to handle. Moreover, improper disbursement of capital and/ or corruption makes the problem ever worse.

Official data showed that the allocation of capital to localities was done without any participation or supervision from local departments of Natural Resources and Environment or People’s Council. As such, only one out of eight projects planned for 2006-2010 was materialized: access to clean water by residents in rural areas. But then again, the target was only 75% while the percentage of people in the rural areas who needed access to water rose to 79%.

The five-year environmental plan includes a 100% implementation of standardized waste water treatment systems in all industrial and processing zones, completion of legal documents on environmental protection, improvement of pollution management efficiency, rise in public awareness, and an expansion of international cooperation. In order for all of these to be possible, a close working
relationship between the government and citizens is needed.

Investment in the natural resources and environment needs to be encouraged more than ever. An increase in the budget for environmental protection has to work hand in hand with strong governance in order for it to be successful. There is a need to modernize the environmental observation system to make environmental studies and assessment more accurate. Moreover, state budget should be focused on developing human resources since they are the ones primarily responsible for helping maintain the diversity of natural resources and decrease, if possible stop, the total destruction of our environment.