Climate Change and Sustainable

NATIONAL ECONOMICS UNIVERSITY Taiwan Studies Project

INTERNATIONAL CONFERENCE Climate Change and Sustainability Management in Vietnam and Taiwan ICCSM-2020

Hanoi, 28th October 2020

LABOUR - SOCIAL PUBLISHING HOUSE

INTERNATIONAL CONFERENCE Climate Change and Sustainability Management in Vietnam and Taiwan ICCSM-2020

Steering Committee 1. Tran Tho Dat (Prof., PhD), Head of Steering Committee 2. Bui Duc Tho (Assoc. Prof., PhD), Deputy Head of Steering Committee 3. Dinh Duc Truong (Assoc. Prof., PhD), Member

Organizing Committee 1. Bui Duc Tho (Assoc. Prof., PhD), Head of Organizing Committee 2. Dinh Duc Truong (Assoc. Prof., PhD), Deputy Head of Organizing Committee 3. Vu Thi Hoai Thu (Assoc. Prof., PhD), Member 4. Pham Thi Bich Chi (Assoc. Prof., PhD), Member 5. Trinh Mai Van (PhD), Member 6. Pham Sy Long (MA), Member 7. Bui Duc Dung (MA), Member 8. Vu Trong Nghia (PhD), Member 9. Nguyen Cong Thanh (PhD), Member 10. Nguyen Dieu Hang (PhD, Member 11. Nguyen Linh Dan (PhD), Member 12. Nguyen Thuy Linh (MSc), Member 13. Tran Ngoc Thuy (MA), Member 14. Bui Huy Hoan (BA), Member

Editorial Board 1. Vu Thi Hoai Thu (Assoc. Prof., PhD), Head of Editorial Board 2. Nguyen Cong Thanh (PhD), Deputy Head of Editorial Board 3. Nguyen Dieu Hang (PhD), Member 4. Nguyen Linh Dan (PhD), Member 5. Nguyen Thuy Linh (MSc), Member

No. Topic/Authors Page

PART I: CLIMATE CHANGE

ICCSM-01 The Relationship between Carbon Dioxide Emissions, Energy 1 Consumption, Economic Growth, and Urbanization in Vietnam Nguyen Anh Tru ICCSM-02 Ethnic Minority Farmers’ Perception of Climate Change: Some 13 Insights from the Mountainous Area in Viet Nam Nguyen The Manh, Mokbul Morshed Ahmad ICCSM-03 Livelihood Adaptation to Climate Change in the Coastal Zones of 30 Vietnamese Mekong Delta: Case study in Ben Tre province Duong Truong Phuc ICCSM-04 Potential Effects of Climate Change on Food Security in Quang Binh 39 Province Nguyen Tien Thanh, Le Phuong Dung ICCSM-05 Assessment of Flood Vulnerability Index in Vinh Long Province 47 Nguyen Thuy Linh, Nguyen Thi Thu ICCSM-06 The Impacts of Climate Change on Agriculture and Solutions to 56 Enhance Adaptive Capacity in Quang Binh Province Duong Thi Mai Thuong ICCSM-07 Climate Change and Sustainable Agriculture Development in Mekong 66 Delta Tran Le Vinh, Nguyen Thi Mai Hanh ICCSM-08 Climate Change and Sustainable Land Management Issues in Vietnam 74 Pham Phuong Nam, Phan Thi Thanh Huyen

ICCSM-09 Climate Change Adaptation Pathways for Local Ethnic Minority 84 Communities in the Central Highlands of Vietnam: Comprehensive Solutions to Enhance Adaptive Capacity and Sustainable Development Ngo Quang Son, Vu Thi Thanh Minh, Nguyen Thi Thuy Phuong, Le Thi Nhu Quynh, Le Thi Luong, Tran Tien Hien

No. Topic/Authors Page

ICCSM-10 Adaptation of the Ethnic Minority Communities with Natural 101 Environment and Climate Change in the Northeast Mountainous Region of Vietnam Duong Quynh Phuong, Nghiem Van Long, Nguyen Phuong Anh

ICCSM-11 Impacts of Climate Change on Socio-economic Development in Vietnam 114 Le Thi Thanh Ha

ICCSM-12 Climate Change and Food Security in Vietnam 121 Dinh Thien Duc, Tran Thi Duong Ngan

ICCSM-13 The Application of Credit Policy on Sustainable Development of 128 Marine Economy and Environmental Protection in the context of Climate Change in Vietnam Nguyen Dac Hung

ICCSM-14 The Status of Urbanization, Climate Change and Policy Implications 136 for Sustainable Urban Development in Vietnam Le Thu Giang

ICCSM-15 Legal Policy of Raising Awareness, Education and Training on 145 Climate Change Nguyen Thi Thuy Linh, Nguyen Thanh Tung

PART II: SUSTAINABILITY MANAGEMENT

ICCSM-16 Using Fuzzy Topsis Method for Assessing the Sustainable Agriculture 157 Chia-Nan Wang, Duy Hung Duong, Thi Dieu Huong Duong, Hector Tibo ICCSM-17 Modelling the Dynamic Impact of Environmental Protection 168 Expenditure on Economic Growth in Taiwan Nguyen Thanh Tham ICCSM-18 The Impact of Land Use Rights Policies on Agricultural Production in 188 Vietnam Phung Minh Duc, Lam Van Son, Nguyen Van Truong ICCSM-19 Research on Causes of Urban Sprawl and Solutions towards 195 Sustainable Urban Development: Case Study in Central Highlands of Vietnam Nguyen Ninh Hai, Nguyen Minh Ky, Le Minh Son, Nguyen Thi Lan Thuong, Nguyen Thi Thai Ha, Nguyen Tuan Anh

No. Topic/Authors Page

ICCSM-20 Market-Based Instruments to Promote Sustainable Energy and Policy 209 Implications for Vietnam Vu Thi Hoai Thu ICCSM-21 Factors Influencing the Consumer’s Intention to Buy Safe Vegetables 218 Luu Thi Phuong Anh, Dinh Ha Linh, Vu Huyen Trang, Nguyen Dieu Hang ICCSM-22 Factors Influencing Green Housing Purchase Intention in Hanoi City, 227 Vietnam Pham Kieu Loan, Nguyen Minh Phuc, Pham Mai Khanh, Nguyen Thanh Lan ICCSM-23 Economic Valuation from Direct Use of Mangrove at U Minh Ha 244 National Park, Vietnam Nguyen Huu Dung ICCSM-24 An Overview of the Key Factors on Changing Local Awareness on 254 Biogas Adoption and Policy Implications – Opportunities and Challenges for Biogas Development in Vietnam Le Thi Thoa, Do Thu Nga, Dinh Duc Truong, Pham Ngoc Bao, Khanitchaidecha Wilawan ICCSM-25 Circular Economy Approach in Livestock Waste Management in Ba 267 Vi District, Hanoi Vo Huu Cong, Tran Duc Vien, Ho Thi Thuy Hang, Pham Minh Hen, Nguyen Hong Hanh, Nguyen Duc Luong, Tran Dang Anh ICCSM-26 Sustainable Marketing Concept: Framework and Application for 275 Business Sustainable Development in Vietnam Tran Thuy Nhung ICCSM-27 A Review of Green Taxes – Experiences and Lessons Learned for 288 Vietnam Nguyen Thi Thuy Duong ICCSM-28 The Economic Integration Process of Vietnam: Achievements, 296 Limitations and Vision toward 2030 Nguyen Thi Thanh Hieu, Nghiem Thi Chau Giang, Le Thi Thuy ICCSM-29 Attracting the Foreign Direct Investment (FDI) in High Technology 307 Farming towards Green Growth in Vietnam Nguyen Le Dinh Quy, Vo Luu Gia Huy, Ho Tuan Vu ICCSM-30 Digital Economy and Its Impacts on Vietnam’s Economy and 317 Productivity Dam Lan Nhi

iii

No. Topic/Authors Page

ICCSM-31 Digital Transformation: Opportunities and Challenges for Vietnamese 328 Enterprises Vu Hung Hai ICCSM-32 The Process of Crop Restructures: Case Study in Ly Trach Commune, 340 Bo Trach District, Quang Binh Province Mai Thanh Son, Mai Thi Khanh Van ICCSM-33 Sustainable Use of Sloping Land Resources for Agricultural and 350 Forestry Development in Thai Nguyen Province Le Thi Nguyet, Do Van Hao ICCSM-34 Solutions for Sustainable Agriculture Development in Thai Nguyen 358 Province Hoang Thi Tra Mi, Le Thi Nguyet ICCSM-35 Strategic Orientation of Tourism Sustainable Development: Case 367 Study of Ponagar Cham Towers, Nha Trang Le Thi Kim Lien, Mai Thi Khanh Van, Nguyen Thi Hang Phuong, Quan Ba Chinh, Nguyen Thi Mai ICCSM-36 Poverty Alleviation in Thai Nguyen Province during the 2010s: 376 Achievements and Recommendations Hoang Thi My Hanh ICCSM-37 Assurance of Equality in Education for Ethnic Minority Communities 385 in Vietnam Truong Tat Thinh ICCSM-38 The Role of Small Traders at International Market in Sustaining the 392 Environmental Protection in Vietnam Le Quang Can, Nguyen Thanh Duong, Hoang Thi Thanh Nga ICCSM-39 Sustainable Environmental Management in New Rural Construction 404 in Dai Tu district Thai Nguyen Province Nguyen Thi Que Loan, Tran Thi Hoai Linh ICCSM-40 The Requirements and Development Orientation for the Military 413 Schools in Vietnam in the Fourth Industrial Revolution Context Nguyen Trong Luat

PART I

CLIMATE CHANGE

The Relationship between Carbon Dioxide Emissions, Energy Consumption, Economic Growth, and Urbanization in Vietnam

Nguyen Anh Tru Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Ha Noi Email: [email protected]

Abstract

The article aims to examine the causal relationship between CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam between 1983 and 2017 using the VECM. In the short run, there is an evidence to found that energy consumption and GDP have positive relationships with CO2 emissions. Results also indicated that CO2 emissions and energy consumption positively affect GDP in the short run. We found that urban population has a negative relationship with GDP. Results of the Johansen co-integration test address that CO2 emissions, energy consumption, GDP, and urban population have relationships in the long run. In the long run, GDP per capita has a negative relationship with CO2 emissions, while urban population has a positive impact on CO2 emissions. Finally, policies are recommended to enhance economic growth and achieve sustainable development in Vietnam. Keywords: Carbon dioxide, economic growth, energy consumption, urbanization

1. Introduction

The theme on the relationship between carbon dioxide (CO2) emissions, energy consumption, economic growth, and urbanization has been strongly debated by scholars in the world. CO2 can be defined as a key source leading to the global warming since it releases more than 50 percent of greenhouse gas in the global (Nguyen, 2012). Due to rapid economic growth, the expansion of demand for energy, especially in the fossil fuel, has been a result of environmental degradation problems such as pollution (Al-Mulali et al., 2015). According to the 2nd ASEAN Energy Demand Outlook (2009), energy consumption in the Association of Southeast Asian Nations (ASEAN) will rise 3.9 percent annually from 343 MTOE in 2005 to 901 MTOE in 2030 with the rapid growth of transportation sector by 5.1 percent annually, corresponding to an equivalent growth in CO2 emissions (GFEI, 2010). By 2017, Southeast Asia has been recorded to account for 8 percent of global energy demand growth (International Energy Agency, 2018). By 2010, ﬁve countries, namely Indonesia, Malaysia, the Philippines, Thailand, and Vietnam accounted for about 90 percent of greenhouse gas emissions in Southeast Asia (ADB, 2015). Due to a rapid increase in energy consumption and heavy dependence on fossil fuels, greenhouse gas emissions of Vietnam reached 177 tons of CO2 equivalent in 2005 and it has been predicted to rise tripled by 2030 (World Bank, 2011). In Vietnam, due to the after-war housing pressures and land speculation, the process of urbanization occurs many years before the industrialization process, causing the urban model, and thinking to experience many crises. The problem development on the urban system in this country has been increasingly revealed the weakness, associated with issues such as incomplete

architecture, traffic congestion, domestic wastewater, free migration, and other difficult social issues. By 2020, the urbanization rate of Vietnam will be accounted for about 40 percent with the urban population of more than 45 million people (Chu and Nguyen, 2017).

Unlike previous studies that assess factors affecting CO2 emissions in Vietnam for the period 2000–2011 (Nguyen et al., 2018), effects of globalization, industrialization, urbanization, energy consumption, and economic growth on CO2 emissions in Vietnam between 1985 and 2015 (Le et al., 2018), and impacts of globalization on CO2 emissions of Vietnam from 1990 to 2016 (Nguyen and Le, 2020), this article focuses on examining the relationship between CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam between 1983 and 2017 employing the Vector Error Correction Model (VECM). More importantly, affordable policies are recommended to the government in order to foster economic growth and achieve sustainable development. The remainder of this paper is structured as follows. Section 2 presents the empirical review. Research methods are discussed in section 3. In section 4, we present results and discussion. Finally, the conclusion and policy implications are summarized in section 5. 2. Empirical review

The relationship between CO2 emissions, energy consumption, economic growth, and urbanization is a highly debated by scholars all over the world. Alam et al. (2016) investigated the relationship among carbon emissions, economic growth, energy consumption, and population growth in Brazil, China, India, and Indonesia between 1970 and 2012. They concluded that economic growth and energy consumption have positive influences on CO2 emissions in four countries. Results also indicated that the relationship between population growth and CO2 emissions is statistically significant in Brazil and India, but it is insignificant in China and Indonesia in both the short run and long run. Likewise, Behera and Dash (2017) assessed the effect of urbanization, energy consumption, and foreign direct investment (FDI) on CO2 emissions in 17 South and Southeast Asian countries for the period 1980–2012. They found that urbanization, energy consumption, FDI, and CO2 emission are cointegrated in all subgroups of countries. Moreover, in the alternative specification of regression, the result demonstrates that a cointegrating relationship between fossil fuel energy consumption, FDI, urbanization, and CO2 emission in middle-income countries. A study by Dinh and Tran (2017) examined the relationship between CO2 emissions, energy consumption, economic growth, and agricultural development of five countries in the Association of Southeast Asia Nations (ASEAN) between 1985 and 2011. Results show that a reduction of CO2 emissions has a negative effect on economic growth and agricultural development contributes to economic growth in the region.

Further, Dogan and Turkekul (2016) assessed the relationship between CO2 emissions, energy consumption, real output (GDP), the square of real output (GDP2), trade openness, urbanization, and financial development in the USA between 1960 and 2010. They found that the validity of the environmental Kuznets curve (EKC) hypothesis for this country was not supported. Results address that there is bidirectional causality between CO2 and GDP, CO2 and energy consumption, CO2 and urbanization, GDP and urbanization, and GDP and trade openness while no causality is determined between CO2 and trade openness, and gas emissions and financial development. A study by Chen and Huang (2013) examined the relationship between CO2 emission per capita and economic growth in 11 countries for the period 1981–2009. Results show that there is positive long-run relationship among CO2 emissions, electric power consumption, energy use and GDP. They also found that there is a bi-directional causality between CO2 emission and electric power consumption. Similarly, Ahmad et al. (2016) investigated the relationship between CO2 emissions, energy

consumption, and economic growth in India between 1971 and 2014. Results show evidence to support the environmental Kuznets curve (EKC) hypothesis in the long run. They found that there is a positive relationship between energy consumption and CO2 emissions and a feedback effect of economic growth on CO2 emissions. A research by Raggad (2018) evaluated the long run relationship between CO2 emissions, economic growth, energy use, and urbanization in Saudi Arabia for the period 1971–2014. He argued that there is no validity of the EKC hypothesis in this country because GDP and pollution have positive relationships in both the short and long run and urban development is not a driver leading to the improvement of environmental quality.

Nguyen et al. (2018) estimated factors affecting CO2 emissions in Vietnam between 2000 and 2011. Results indicated that the incremental change in CO2 emissions in this country is determined mainly by the consumption structure (100.5 percent) and consumption volume (219.4 percent) which are offset by the decline in technology (-132.7 percent) and production structure (-22.5 percent). Likewise, Le et al. (2018) assessed effects of globalization, industrialization, urbanization, energy consumption, and GDP on CO2 emissions in Vietnam for the period 1985–2015. They found that energy consumption, industrialization, and GDP have positive impacts on CO2 emissions in the long run, but globalization negatively affects it. Lastly, Nguyen and Le (2020) investigated the relationship among CO2 emissions, globalization, FDI, exports, coal consumption per capita, and fossil fuels electricity generation in Vietnam for the period 1990–2016. Results show that globalization increases CO2 emission, while exports contribute to a reduction of CO2 emissions. Coal consumption per capita and fossil fuels electricity generation have positive effects on CO2 emissions, while the relationship between FDI and CO2 emissions is statistically insignificant. 3. Methodology 3.1. Data and sources A panel dataset for the relationship between CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam for the period (1983–2017) is gathered from the World Development Indicators released by the World Bank. Thus, a total of 35 observations is entered for data analysis. The panel data is used for this research because of the following advantages: (1) it benefits in terms of obtaining a large sample, giving more degree of freedom, more information, and less multi-collinearity among variables; and (2) it may overcome constraints related to control individual or time heterogeneity faced by the cross-sectional data (Hsiao, 2014). 3.2. The Vector Error Correction Model (VECM)

The specification of a model is used to examine the relationship between CO2 emissions, energy consumption, economic growth, and urbanization can be defined as follows:

퐶푂2푡 = 푓(퐸푁푡, 퐺퐷푃푡, 푈푅퐵푡) (1)

Where: CO2 denotes CO2 per capita (metric tonne); ENt presents energy consumption per capita (kg of oil); GDPt means GDP per capita (current US$); and URBt denotes the rate of urban population in the total population (%). After transforming the functional form of Equation 1, we obtain the following model:

퐿푛퐶푂2푡 = 훽0+ 훽1푙푛퐸푁푡+ 훽2푙푛퐺퐷푃푡 + 훽3푙푛푈푅퐵푡 + Ԑ푡 (2) The procedure of a VECM includes three steps. The first step is to check the stationarity of the series or their order of integration in all variables. In this research, the Augmented Dickey Fuller (ADF) test and Phillips-Perron (PP) test were employed to examine the stationary state of the series. The second step is to check the presence of a long run relationship among all variables in the

equation. In this stage, the co-integration tests will be carried out to investigate the existence of long run relationships between the variables. In the third step, the residuals from the equilibrium regression can be used to estimate the VECM (Azlina and Mustapha, 2012). The VECM can be defined as follows:

퐿푛퐶푂2푡 = 휆1+ 훽1푙푛퐸푁푡+ 훽2푙푛퐺퐷푃푡 + 훽3푙푛푈푅퐵푡 + Ԑ푡 (3)

퐿푛퐸푁2푡 = 휆2+ 훽1푙푛퐶푂2푡+ 훽2푙푛퐺퐷푃푡 + 훽3푙푛푈푅퐵푡 + Ԑ푡 (4)

퐿푛퐺퐷푃푡 = 휆3+ 훽1푙푛퐶푂2푡+ 훽2푙푛퐸푁푡 + 훽3푙푛푈푅퐵푡 + Ԑ푡 (5)

퐿푛푈푅퐵2푡 = 휆4+ 훽1푙푛퐶푂2푡+ 훽2푙푛퐸푁푡 + 훽3푙푛퐺퐷푃푡 + Ԑ푡 (6)

Where: lnCO2t, lnENt, lnGDPt, and lnURBt denote the natural logarithms of CO2 per capita, energy consumption per capita, GDP per capita, and the rate of urban population in the total population (%); (λ1,…,λ4) are intercepts; (β1,…,β3) are parameters to be estimated; and Ԑt presents the error term. 4. Results and discussion

4.1. CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam: An overview

Table 1: Characteristics of CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam Variable Mean SD Min Max

CO2 emissions per capita 0.74 0.54 0 1.8 Energy consumption per capita 349.64 186.73 0 669.7 GDP per capita 751.04 705.35 0 2365.6 The rate of urban population 25.43 5.06 19.4 35.2 Source: Author’s calculation, 2020 Note: SD denotes standard deviation

The average CO2 emissions and energy consumption per capita of Vietnam account for 0.74 metric tonnes and 349.6 kg of oil, respectively. GDP per capita and the proportion of urban population account for US$751 and 25.4 percent, on average, respectively (Table 1).

Figure 1: CO2 emissions per capita in Vietnam

2 1.8 1.6 1.4 1.2 1

0.8 metric tonne metric 0.6 0.4 0.2

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1983 Source: World Bank, 2020

As seen in Figure 1, between 1983 and 2014, the average amount of CO2 emissions per capita of Vietnam presented an upward trend. By 2014, CO2 emissions per capita of this country accounted for 1.8 metric tonnes, increasing by 1.5 metric tonnes compared to that in 1983. This result may be interpreted by the expansion of industrialization and modernization in the socio- economic development of this country (Figure 1). Figure 2: Energy consumption per capita in Vietnam

800

700

600

500

400 kg of of oil kg 300

200

100

1989 1993 1984 1985 1986 1987 1988 1990 1991 1992 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1983 Source: World Bank, 2020 Figure 2 shows the average amount of energy consumption per capita of Vietnam in the period 1983–2013. Similar to CO2 emissions, energy consumption per capita of this country presented an upward tendency for the last three decades. For instance, by 2013, the average amount of energy consumption per capita reached about 660 kg of oil, which was 2.4 times higher than that of 1983. This reveals an increasing demand for energy because of the development of socio- economics in recent decades (Figure 2). Figure 3: GDP per capita in Vietnam

2500

2000

1500

current US$ current 1000

500

1990 1986 1987 1988 1989 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1985 Source: World Bank, 2020 As seen in Figure 3, GDP per capita of Vietnam tended to grow between 1985 and 2017. For example, by 2017, the average GDP per capita of this country accounted for more than US$2,365, which was more than 10 times higher than that of 1985. This outcome expresses a

remarkable success of Vietnam in the renovation of the economic management mechanism and integration of international economics, especially in 1986 onward (Figure 3). Figure 4: Rate of urban population in Vietnam

% of total populationtotal of % 10

1987 1998 2014 1984 1985 1986 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 1983 Source: World Bank, 2020 In Vietnam, urbanization has been extended along with the process of industrialization and modernization. For instance, after 35 years (1983–2017), by 2017, the rate of urban population accounted for more than 35 percent, increasing by more than 15 percent compare to that of 1983 (Figure 4).

4.2. The relationship between CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam 4.2.1. Implementation of the unit root test The unit root test is carried out to check the stationarity of the time series variables (Adeola and Ikpesu, 2016). In this study, the Augmented Dickey-Fuller (ADF) test and the Phillips-Peron (PP) test are used to examine the stationarity of CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam with the hypothesis as follows:

Null hypothesis (H0): The variables contain a unit root

Alternative hypothesis (Ha): The variables do not contain a unit root If a variable contains a unit root, then this implies that the time series of this variable is not stationarity. Table 2: Results of the unit root test ADF Test PP Test Variables 1st 1st Conclusion Level Level difference difference

LnCO2 Constant -1.22 -3.43*** -1.18 -5.52*** I(1) emissions Constant & trend -0.86 -3.57** -1.19 -5.59*** I(1) LnEnergy Constant -0.60 -3.93*** -0.72 -5.68*** I(1) consumption Constant & trend -0.99 -4.28*** -1.12 -5.99*** I(1) LnGDP Constant -6.18*** -11.98*** -4.01*** -5.15*** I(0) Constant & trend -12.98*** -11.05*** -4.87*** -5.40*** I(0) LnUrban Constant 1.84 -2.18 2.76 -3.58*** I(1) population Constant & trend -4.16*** -2.50 -5.46*** -4.56*** I(0) Source: Author’s calculation, 2020 Note: *** and ** denote statistical significance at 1% and 5%, respectively

The results in Table 2 show that the time series of GDP per capita and urban population (constant and trend) are stationary at the level [I(0)] because the absolute value of test statistic is greater than critical values at the 1% and 5%, respectively. However, the time series of CO2 emissions per capita, energy consumption per capita, and urban population (constant) are not stationary at the level. Thus, the first difference is carried out to examine the stationary of these variables. Results indicate that the absolute values of test statistics are greater than critical values at the 1% and 5%, respectively and therefore we can conclude that the time series of these variables do not contain unit roots and this suggests that the time series are stationary at the first difference [I(1)]. 4.2.2. Examination of the long run relationship among variables Before examining the long run relationship among variables, the optimal lag length should be determined. The purpose of this step is to specify the optimal lag for the VECM. Table 3: Selection of the lag length Lag LL LR df P FPE AIC HQIC SBIC 0 -51.33 0.000 3.570 3.630 3.755 1 114.28 331.25 16 0.000 2.7e-08 -6.082 -5.781 -5.157* 2 138.31 48.06 16 0.000 1.7e-08 -6.600 -6.058 -4.935 3 156.56 36.49 16 0.002 1.7e-08 -6.745 -5.961 -4.340 4 183.09 53.07* 16 0.000 1.2e-08* -7.425* -6.400* -4.280

Endogenous: LnCO2 LnEnergy consumption LnGDP LnUrban population Exogenous: Constant Number of observations = 31 Source: Author’s calculation, 2020 Notes: *denotes lag order selected by the criterion; LL means log likelihood values; LR represents sequential modified LR test statistics; FPE denotes final prediction error; AIC means Akaike information criterion; HQIC represents Hannan-Quinn information criterion, and SBIC means Schwarz’s Bayesian information criterion As seen in Table 3, results suggest that the optimal lag length, in this case, is four lags because this value is recommended by AIC and HQIC indicators, while one lag is only recommended by SBIC. Therefore, four lags (the number of lags is equal to 4) is chosen to run the VECM in the third step. The Johansen co-integration test is performed to examine the long-run relationship among variables. If variables are co-integrated, it suggests that there is a long term relationship among variables (Musunuru, 2017). The hypothesis to be tested can be identified as follows:

Null hypothesis (H0): There is no co-integration among variables

The alternative hypothesis (Ha): There is co-integration among variables In this study, the Johansen co-integration test is carried out by the trace statistic test. Trace test is a likelihood-ratio-type test, which operates under different assumptions in the deterministic part of the data generation process (Lutkepohl et al., 2001).

Table 4: Results of Trace statistic in the Johansen co-integration test 5% critical 1% critical Maximum rank LL Eigenvalue Trace statistic value value 0 70.15 123.56 47.21 54.46 1 120.27 0.95 23.33*1*5 29.68 35.65 2 128.90 0.40 6.05 15.41 20.04 3 131.93 0.16 0.00 3.76 6.65 4 131.93 0.00 Source: Author’s calculation, 2020 Note: *1 and *5 denote the number of co-integration (ranks) chosen to accept the null hypothesis at 1% and 5% critical values As seen in Table 4, we cannot reject the null hypothesis in the rank one (one co-integration) because trace statistic is less than the 1% critical value (23.33 < 35.65) and the 5% critical value (23.33 < 29.68) and these reflect that there is a co-integration at the 1% and 5% critical values among variables. 4.2.3. Estimation of the VECM Table 5: Estimation of the VECM in the short run Variables Coefficient Std. Error z P-value DLnCO2 per capita

LnCO2 per capita (LD) 0.030 0.11 0.27 0.788 LnEnergy consumption per capita (LD) 0.101*** 0.01 6.56 0.000 LnGDP per capita (LD) 0.050*** 0.01 2.77 0.006 LnUrban population (LD) 2.870 2.19 1.31 0.191 Constant -0.017 0.04 -0.39 0.700

DLnEnergy consumption per capita

LnCO2 per capita (LD) 0.444 1.44 0.31 0.759 LnEnergy consumption per capita (LD) -0.018 0.19 -0.10 0.922 LnGDP per capita (LD) 0.021 0.22 0.10 0.924 LnUrban population (LD) -8.786 27.55 -0.32 0.750 Constant -0.039 0.56 -0.07 0.945 DLnGDP per capita

LnCO2 per capita (LD) 0.894*** 0.28 3.09 0.002 LnEnergy consumption per capita (LD) 0.090** 0.03 2.34 0.019 LnGDP per capita (LD) 0.227*** 0.04 5.02 0.000 LnUrban population (LD) -35.57*** 5.51 -6.45 0.000 Constant 0.000 0.11 0.00 1.000 DLnUrban population

LnCO2 per capita (LD) -0.003 0.00 -0.49 0.626 LnEnergy consumption per capita (LD) 0.000 0.00 0.03 0.976 LnGDP per capita (LD) -0.002*** 0.00 -2.60 0.009 LnUrban population (LD) 0.482*** 0.13 3.69 0.000 Constant 0.009*** 0.00 3.54 0.000 Source: Author’s calculation, 2020 Note: *** and ** denote statistical significance at 1% and 5%, respectively

As seen in Table 5, energy consumption and GDP have positive relationships with CO2 emissions, and these imply that energy consumption and GDP are drivers leading to an increase of CO2 emissions in the short run of Vietnam. We also found that CO2 emissions and energy consumption positively affect GDP in the short run, while urban population negatively influences on GDP. Results show that GDP is a determinant contributing to a reduction of urban population in Vietnam. Table 6: Estimation of the VECM in the long run Variables Coefficient Std. Error z P-value

LnCO2 per capita 1 LnEnergy consumption per capita -0.115 0.08 -1.40 0.161 LnGDP per capita -2.511*** 0.10 -23.35 0.000 LnUrban population 11.959*** 0.99 12.03 0.000 Constant 20.291 Source: Author’s calculation, 2020 Note: *** and ** denote statistical significance at 1% and 5%, respectively

In the long run, GDP per capita has a negative relationship with CO2 emissions, while urban population has a positive impact on CO2 emissions. These suggest that economic growth may be defined as an alternative to reduce CO2 emissions in the long run of Vietnam. However, the expansion of urban population should be carefully controlled since it increases the amount of CO2 emissions in the long run. 4.2.4. Discussion In the short run, the evidence has been found to show that energy consumption and GDP have positive effects on CO2 emissions reflecting that energy consumption and GDP are drivers leading to an increase of CO2 emissions in Vietnam. Therefore, energy consumption and economic development should be considered by the Vietnamese government because these factors damage the environment. Results also demonstrated that CO2 emissions and energy consumption have positive relationships with GDP in the short run implying that energy use can be seen as a positive driver to facilitate the Vietnamese economy. We found that urban population has a negative influence on GDP and this suggests that urbanization process should be sensitively managed by the State because it decreases economic growth of Vietnam. By contrast, GDP negatively affects urbanization in Vietnam. Modernization and urbanization of Vietnam are very unequal between regions since it mainly occurs in two major cities such as Ha Noi and Ho Chi Minh City and consequently, the urbanization process can be assessed as the beginning in Vietnam. Most of Vietnam’s achievements on the urbanization may come to the next 2-3 decades and its economic, social and political outcomes will depend on the management skills of the government as well as on its incorporation into a sustainable vision concerning the environment because Vietnam is one of the most vulnerable countries when to face climate change (Remont, 2016).

In the long run, results indicate that CO2 emissions, energy consumption, GDP, and urban population have relationships. Similar to the short run, GDP should be fostered because it helps to reduce CO2 emissions. However, urbanization process should be carefully controlled by the government because it generates pollution in Vietnam.

5. Conclusion and policy implications

The aim of this article is to investigate the causal relationship between CO2 emissions, energy consumption, economic growth, and urbanization in Vietnam between 1983 and 2017 using the VECM. In the short run, results show that energy consumption and GDP have positive influences on CO2 emissions. We also found that CO2 emissions and energy consumption have positive relationships with GDP, while urban population has a negative influence on GDP. Results of the Johansen co-integration test conclude that CO2 emissions, energy consumption, GDP, and urban population have relationships in the long run. In the long run, GDP negatively affects CO2 emissions, but urban population has a positive effect on the pollution. Policies are recommended to enhance economic growth and achieve sustainable development in Vietnam. First, the relationship between CO2 emissions, energy consumption, economic growth, and urbanization should be considered by the Vietnamese government. According to the McKinsey report, “consuming class” of the ASEAN is predicted to increase by double from 81 million households in 2019 to 163 million households by 2030 and the “urban power of consumption” will have impacts at multiple levels, including (1) it will raise the city-based demand for consumable goods and services; (2) it will enhance the demand for developed land for residential, commercial, institutional, and other public uses (e.g. transport), along with a plethora of urban infrastructure and basic services; (3) the demand for city expansion at the urban periphery will cause an irreversible change in land-use – from agriculture and forests to urban built-up areas – with consequential concerns related to food insecurity; and (4) it is quite likely that such a staggering expansion of a “consuming class” will spur demand for private vehicles (car and other automobiles) and, in turn, create an enormous increase in greenhouse gas emissions, with the potential of further exacerbating climate change and its world-wide impacts (Heinrich Boll Stiftung, 2020). Further, GDP growth rate reduces poverty in Vietnam, but higher urbanization rate generates higher poverty rate (Nguyen and Nguyen, 2018). Second, economic development should be considered by the central and local governments along with policies on the society and environment since economic growth and energy use are addressed as factors leading to an increase of CO2 emissions. Third, the model for economic growth of Vietnam should be transformed from exploiting natural resources to using renewable energy sources (solar, wind, hydro, tidal, and biomass energy) because renewable energy not only reduces the dependence on fossil fuel (oil, coal, and natural gas), but also protects the environment. Lastly, urbanization process should be carefully implemented since it increases the pollution in both the short and long run.

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Ethnic Minority Farmers’ Perception of Climate Change: Some Insights from the Mountainous Area in Viet Nam

Nguyen The Manh1*, Mokbul Morshed Ahmad2 1Correspondence: Ph.D. student - School of Environment Resources and Development, Asian Institute of Technology, Thailand. Email: [email protected]

2Associate Professor - Department of Development and Sustainability, School of Environment, Resources and Development, Asian Institute of Technology, Thailand Email: [email protected]

Abstract Climate change has adversely affected the agricultural activities of the farmers in the mountainous regions of Viet Nam. This research investigates the ethnic minority farmers’ perception of climate change. Data were collected from 362 randomly selected farmers by using surveys, key informant interviews, and focus group discussions. F-test, post hoc analysis, and binary logit model were employed to determine the factors influencing the farmers’ perception on climate change. Results show that the farmers are aware of the weather change to be hotter over the last 20 years, and farmers also perceived less and unpredictable rain, this perception of farmers however was not supported by meteorological data. Furthermore, the results from binary logit models indicate that household size, education, farming experience, forestry area, income, access to credit, policy, training, and monetary investment are the factors that significantly affected the farmers’ perception on climate change. Our findings suggest that policymakers should consider farmers’ perceptions, and major contributing factors when designing and formulating climate change policies for ethnic minority farmers. Keywords: Adaptation, perception on climate change, ethnic minority farmers, Bac Kan, Viet Nam

1. Introduction Climate change has threatened humans and affected all aspects of society. Moreover, climate change is predicted to be more serious in the next decades (Thoai et al., 2018; IPCC, 2014; Huong et al., 2017). In developing nations, small households particularly ethnic minority farmers are greatly affected and increasingly vulnerable to extreme weather events induced by climate change. It is a fact that climate change could worsen certain natural disasters in terms of shifting the frequency, intensity, duration, and timing of many weather-related extreme events (Thoai et al., 2018). Ranked as one of the top five countries which are negatively affected by climate change, Viet Nam is vulnerable to climate change and natural disasters because of many factors such as a combination of climatic and geographic features and socioeconomic structure (Smyl and Cooke, 2017). The most likely climate change effects are an increase in average temperature, drier dry seasons, and sea-level rise. Climate change has resulted in more severe and frequent occurrences of natural disasters especially cyclonic storms, floods, and droughts becoming more extreme in Viet Nam. Agriculture is the most susceptible economic sector under the

changing climate scenario in recent years, particularly in developing countries (Li et al., 2017). Agriculture plays a vital role in the rural economy and is the main income source of ethnic minority farmers. There is a growing consensus that the impacts of climate change have a vastly adverse effect on the agriculture of the mountainous areas, and farmers in developing countries are the most vulnerable and hardest hit (Khanal et al., 2018). The negative impacts of climate change on agriculture in a country like Viet Nam are likely to be intense, uncertain, and extraordinarily catastrophic. Approximately 70% of the population in Viet Nam and almost 100% of ethnic minority farmers depend on agriculture, especially in mountainous regions (IPCC, 2014). For example, storms resulted in nearly US$ 4.5 billion worth of damages on properties in Viet Nam in the past century; and by 2050, rice yields could decline from 6% to 42% and other crops decrease between about 3% and 47% (Smyl and Cooke, 2017). Climate change not only affected agriculture such as a decrease in crop yield, but also damaged the soil, livestock, and farmer’s health. To reduce the adverse impacts of climate change, adaptation practices are the key responsibilities that have played a vital role in agriculture. In the context of agriculture, the success or failure in its adaptation to climate change relies on farmers’ individual knowledge, their perceptions, and attitude about climate change. Knowledge, perception, and attitude are linked and interact with each other in the process of climate adaptation (Soubry et al., 2020). Therefore, understanding farmers’ perception and the factors influencing farmers’ awareness of climate change is necessary; and it is the first stage of the climate change adaptation process (Di Falco and Veronesi, 2013). Farmers’ perceptions give consideration to farmers’ observation of the weather and climatic events over a long period of time which becomes the basis of their adaptation strategy (Soubry et al., 2020). Furthermore, perception is the practical knowledge rising from experience and concrete situations; and perception is also linked to local knowledge. Farmers’ perceptions could be influenced by several factors including social and cultural or objective factors such as the perception on the increasing and decreasing temperature (Varadan and Kumar 2014). In this paper, farmers’ perception on climate change is defined as the farmers’ understanding on the change of climate based on observation and individual experience in relation to the increase or decrease or no change in rainfall, temperature, and extreme weather events over a long period of time. There are many studies on farmers’ perceptions on climate change and the factors affecting farmers’ perception and adaptation strategies (Pham et al., 2019). Conversely, in the mountainous regions of Viet Nam, limited research on ethnic minority farmers’ perception on climate change, and the drivers affecting farmers’ perception on climate change have been conducted so far. To fill these gaps, this study aims to investigate the ethnic minority farmers’ perception on climate change and the differences among them; and to determine the factors that influence the farmers’ perception on climate change. In this paper, the concept of “farmers” refers to “ethnic minority farmers” (Tay, Dao, and Hmong farmers) who are ethnic minority people living in the northern mountainous area of Viet Nam whose livelihoods rely on agriculture. Hereafter, the term “farmers” will be used.

2. Methodology 2.1. The study area Bac Kan is the most vulnerable to climate risks including landslides, flash floods, heatwaves, and cold spells. It is one of the poorest provinces in Viet Nam with a large diverse ethnic minority population, high illiteracy rate, low female education attendance, poor access to resources, and an economy that heavily depends on rainfed-agriculture (Smyl and Cooke, 2012). There are seven ethnic minority groups living in Bac Kan which include Tay (45%), Hmong (20%), Dao (21%), and others (14%). 2.2. Data collection Survey method, key informant interviews, and focus group discussions were used to collect the data. We developed the questionnaire using open and closed questions, prepared in English at first, and then translated into Vietnamese. The questionnaire was also pretested to avoid errors. The data were collected by a research team involving four research assistants and three local officers who were led by the first author of this research study. The research team members were trained regarding the research area and on how to collect data properly. Furthermore, we conducted a total of six focus group discussions with 8-12 mixed gender participants to collect farmers’ opinions on climate change impacts, natural disasters, perception on climate change, and local adaptation practices. Figure 1: Map of the study area

Sources: Designed by authors The research used a multistage sampling technique. Three districts (Cho Moi, Pac Nam, and Ngan Son) in Bac Kan province were purposively selected as the study area because they are located in different regions (low, mid, and high altitude) with regional topography which is generally mountainous; small plain areas thinly located between valleys and along the large rivers, and highly vulnerable and influenced by climate change and natural disasters (CARE, 2013). Furthermore, three communes namely Mai Lap in Cho Moi, Lang Ngam in Ngan Son, and Ngien Loan in Pac Nam were purposively selected. A simple random sampling technique was applied

for primary data collection at the household level. The fieldwork was conducted from June to October 2019. The target respondents were household heads who were ethnic minority farmers. About 400 respondents were interviewed for data collection based on the formula (shown below) of Yamane (1968), Saqib et al., (2016). Finally, a total of 362 respondents provided complete information with a 95% confidence level and ±7% margin of error.

n = sample size N = Total population of the research area e = Level of precision, set at ± 7% at 95% of confidence 2.3. Data analysis 2.3.1. Empirical regression model and selection of variables In adopting adaptation strategies to cope with climate change, farmers as decision-makers have faced multiple options based on the outcomes of their observation. Whatever option they choose for their farm always depends on their perception of climate change. The knowledge and understanding of how farmers recognize the climatic change are significant for policymakers to create effective adaptation strategies and policies (Abid et al., 2019). Adaptation to climate change includes two stages. In the first stage, the farmers observe the change in climate, and then they decide whether or not to adopt a specific adaptation strategy. To determine the factors influencing the farmers’ perception of climate change, several models were used in previous studies such as ordinal and nominal logistic regressions, binomial probit model, and probit model (Ali and Erenstein, 2017; Ado et al., 2019). This study used the binary logit model to measure ethnic minority farmers’ perception on climate change because of the essence of the decision variable, whether farmers perceived climate change. The binary logit model considers the relationship between a binary dependent variable (yes=1, no=0 answer) and a set of independent variables, whether they are binary, categories, or continuous. The formula for the binary logit model (Ado et al., 2019; Huong et al., 2017; Abid et al., 2019) is given as:

where Pi is the probability of perceiving a climatic change such as rainfall or temperature change, and Xi is an independent variable. The parameter βi is a vector of regression coefficients of the dependent variables to be estimated, and β0 is a constant. 2.3.2. Dependent and explanatory variables (see Table 1) Table 1: Dependent and independent variables were selected for the models Variable Description Mean SD Independent variables Demographic and socioeconomic factors Commune Mai lap=1; Lang ngam=2, Nghien loan=3 1.95 .76 Ethnicity Tay=1; Hmong =2; Dao=3 1.59 .75

Variable Description Mean SD Family status Poor=1; Near poor=2; Average=3; Good=4 2.11 1.02 Household size The number of members in a household 4.12 1.29 Household male Total male members of the household 2.11 .88 Gender male=1, female=0 .88 .33 Age Age of respondents 45.9 12.3 Education 1=Illiterate, 2=Primary school, 3=Secondary, 4=High 2.77 .94 school, 5=College, 6=Others Major occupation 1=Agriculture; 2=hired labor; 3=Own small trade, 1.27 .83 4=Officer/Worker, 5=Others Female labour Household female labours 1.29 .53 Farming experience 1=more than 3 years; 2= more than 5 years; 3=more than 3.46 .71 10 years; 4=over 15 years Assets Poultry The number of poultries that the household owned 38.2 33.5 Cow and buffalo The number of cattle that the households owned 1.19 1.92 Tractor Household owned tractors (yes=1, no=0) .42 .49 Harvesting machine Household has harvesting machines (yes=1, no=0) .42 .49 Television Household owned television (yes=1, no=0) .87 .33 Radio Household owned radio (yes=1, no=0) .37 .48 Smartphone The number of smartphones that the household owned 1.99 .91 Farm characteristics Residential land Land for building a house (m2) 157.5 218.5 Forestry area Forestry land of households (hectare) 2.64 3.65 Forestry years The number of years of the forest 3.79 3.36 Income Households’ income in year 2018 (USD) 2,101 1,381 Institutional factors Access to credit yes=1, no=0 .95 .21 Borrowing money yes=1, no=0 .49 .50 Amount of loan The amount of money that the household borrowed, (USD) 922 1,259 Info-training Respondents achieved CC information from training .20 .40 courses, (yes=1, no=0) Infor-phone Respondents got CC information from smartphone, .52 .50 (yes=1, no=0) Monetary Climate change resulted in more money for farm 1.35 .86 investment (1=increase, 2=decrease, 3=no change, 4=do not care) CC policy Respondents perceived climate change policies (1=yes, 1.94 .78 2=no, 3=do not know)

Variable Description Mean SD Training Respondents attended any trainings (1=yes, 2=no, 3=not 2.01 .56 remember) Dependent variables Weather change Respondents perceived climate/weather change .91 .28 compared to last 20 years, (yes=1, no=0) Temperature Respondents perceived increase in temperature, (yes=1, .88 .32 perception no=0) Rainfall perception Respondents perceived more and unpredictable rainfall, .84 .37 (yes = 0, no=1) Note: SD: Standard deviation One-way ANOVA, Post hoc test, and SPSS Version 20 were employed to analyze the data.

3. Results and discussions 3.1. Sample characteristics We interviewed a total of 362 respondents for the data collection, with 31.5% of the respondents coming from Mai Lap, 42.5% from Lang Ngam, and 26% from Nghien Loan. The average respondents’ age was 45.9 years and the average number of household members was 4.12. Regarding farming experience, 58.6% of the respondents had over 15 years; 29% had 5 to10 years; and 12.5% had 3 to 5 years. In terms of education, about 44.2% of the respondents completed secondary school; 29.8% had primary level education; 13.3% were high school level; 4.7% were college level; while 8% of the respondents never attended school. Regarding poverty, about 38.4% of the households were poor; 20.7% was near-poor; whereas, 32% of the households had an average economic condition and 8.8% had a good economic condition. 3.2. The climatic condition in the study area Meteorological data analysis shows that there was a change of weather in Bac Kan over the last 23 years. A positive trend of rainfall patterns was reported although it was not significant. Furthermore, Mann-Kendall test shows a positive slope of 0.01 mm per year (see Table 2).

Table 2: Annual meteorological data Mann-Kendall test for Bac Kan from 1997 to 2019 Kendall's S Var(S) p-value Sen's Result test tau slope Rainfall 0.212 49 1257.6 0.176 0.010 Positive non-significant trend Mean t0c 0.377 87 1257.6 0.015** 8.126 Positive significant trend Max t0c 0.290 69 1257.6 .05** 2.739 Positive significant trend Min t0c -0.060 -13 1257.6 0.735 -0.520 Negative non-significant trend *** p<0.01, ** p<0.05, * p<0.1 Source: Bac Kan meteorological data, 2019

Similar to rainfall, the Mann-Kendall test of mean temperature from 1997 to 2019 shows a significant positive trend, indicating that the temperature has increased. The lowest mean temperature was 21.80C in 2008 and the highest mean temperature was 23.90C in 2019. The highest temperature of over 410C was also recorded in 2019.

Bac Kan recorded the lowest temperature of 00C in 2009 and the second-lowest temperature of 1.40C was recorded in 1999. Generally, the minimum temperature tended to increase but the Sens’ slop Mann-Kandall test shows a negative value (-0.52). 3.3. Ethnic minority farmers’ perception on climate change For an understanding of farmers’ perception on climate change, we asked the question: “Do you think the climate/weather has changed during the last 20 years?”. We found that 91.4% of the farmers perceived a change in the weather compared to the last 20 years, while 8.6% of the farmers did not perceive any change. This shows that a small number of farmers still did not believe that the climate was changing. These findings are consistent with the previous findings of Huong et al., ( 2017). Out of 362 respondents, 53.6% of Tay farmers noticed climate change and 3.6% said no, while 22.9% of Hmong farmers perceived climate change and 2.9% did not. Approximately 14.9% of Dao farmers noticed the weather change and 1.1% did not. Furthermore, the ANOVA shows that there is a significant difference regarding farmers’ perception on climate change compared to the last 20 years at 10% level, with F (2, 359) = 2.95 and p-value=0.05 (see Table 3). However, only the Tay farmers’ perception on climate change was different from Hmong farmers, with (MD)=0.082 and p-value=0.04. Meanwhile, no significant difference was confirmed between Tay and Dao farmers, and between Hmong and Dao farmers (see Table 4). 3.4. Farmers’ perception on temperature, rainfall, and natural disasters Farmers’ perceptions on climate change play an important role in shaping their adaptation response. Previous studies show the increasing attention in the scholarly literature on farmers’ perceptions on climate change such as farmers’ perceptions on temperature and rainfall variability (Huong et al., 2017; Abid et al., 2019).

Table 3: Farmers’ perception on climate change over the last 20 years Farmer groups F-test Tay H.mong Dao Total yes no yes no yes no yes no 1 Farmers’ perception on 194 13 83 14 54 4 331 31 2.95* climate change (53.6) (3.6) (22.9) (3.9) (14.9) (1.1) (91.4) (8.6) compared to the last 20 years 2 Farmers perceived 186 21 82 15 51 7 319 43 .89 temperature increase (51.4) (5.8) (22.6) (4.2) (14.1) (1.9) (88.1) (11.9) 3 Famers perceived more 30 177 17 80 11 47 58 304 .45 and erratic rain (8.3) (48.9) (4.7) (22.1) (3) (13) (16) (84) 4 Farmers perceived more 134 73 70 27 28 30 232 130 4.62*** natural disasters (37) (20.2) (19.3) (7.5) (7.8) (8.2) (64.1) (35.9) Note: *** p< 0.01, ** p<0.05, * p<0.1, Percentage are in parentheses Source: Field survey data, 2019

3.4.1. Farmers’ perception of the temperature increase Table 3 shows that 88.1% of the farmers noticed an increase in temperature while 11.9% did not. This finding was supported by meteorological observation. Moreover, no statistically significant difference was found regarding farmers’ perception on an increase in temperature with F (2, 359) = 0.89 and p-value = 0.41. Many respondents stated that the present weather is too hot and the summer period seems longer than the last 20 years. The farmers stated: “We never used electric fan during the summer season in the past; but now, without the electric fan, we cannot live”. The result will be useful for policymakers and planners for building climate change policies in the future. Also, climate change has been happening and affecting farmers in the study area. Figure 2: The annual rainfall in Bac Kan from 1997 to 2019

2500.0 Rainfall = 12.713x + 1285.2 R² = 0.1107 1915.8 1985.9 1943.0 2000.0 1699.2 1605.2 1493.9 1656.9 1364.2 1424.3 1500.0 1339.7 1367.9 1490.4 1342.8 1251.0 1243.2 1343.4 1447.2 1340.1 1236.0 1299.9 1151.3 1000.0 1084.0 Annual rainfall (mm) rainfall Annual 1043.7

500.0

0.0

1998 2003 1997 1999 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years

Source: Bac Kan meteorological data, 2019

Figure 3: The annual mean temperature in Bac Kan from 1997 to 2019 24.5 Temperature = 0.0346x + 22.413 R² = 0.2351 23.9 24.0 23.6 23.5 23.2 23.3 23.3 23.1 23.1 23.0 23.0 22.9 23.0 22.6 22.7 23.0 22.6 22.5 22.5 23.0 22.5 22.8 22.5 22.4

22.0 22.4 22.0 Annual temperature (oC) temperature Annual 21.5 21.8 21.0

20.5

2004 1997 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years

Source: Bac Kan meteorological data, 2019

Figure 4: Maximum temperature in Bac Kan from 1997 to 2019

42.0 Maximum temperature = 0.0792x - 121.53 C) 0 R² = 0.1978 41.0 41.0 39.8 40.0 39.2 39.0 39.0 38.8 38.1 38.0 37.5 37.5 37.1 37.6 37.2 37.5 36.8 37.0 37.0 36.5 36.6 37.3 37.6 Maximum temperature ( temperature Maximum 36.8 36.736.8 36.0 36.4 36.1

35.0 1995 2000 2005 2010 2015 2020 2025 Years

Source: Bac Kan meteorological data, 2019

Figure 5: Minimum temperature in Bac Kan from 1997 to 2019 Minimum temperature = -0.0271x + 5.2119 R² = 0.0078

C) 8.0 0 7.5 7.3 7.4 7.0 7.0 6.8 7.0 6.5 6.0 6.6 5.3 6.0 5.4 5.0 5.1 4.4 4.6 4.3 4.1 4.0 3.8 3.5 3 3.0 2.8

Minimum temperature ( temperature Minimum 2.0 1.7 1.4 1.0

0.0 0.0

2018 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 Years

Source: Bac Kan meteorological data, 2019

3.4.2. Famers perceived more and erratic rain Remarkably, only 16 % of farmers perceived rainfall increase and unpredictability while 84% of the farmers perceived a decreasing phenomenon without significant differences between ethnic farmers’ perception on more and erratic rain, with F (2, 359) = 0.45 and p-value=0.64. However, Fig. 3 and Table 2 show that farmers’ perception on more rain was not consistent with meteorological data. This finding could be explained that during the last 20 years, rainfall occurred erratically and unpredictably, but the rain duration was short. Therefore, the farmers felt that rainfall had decreased. Furthermore, the farmers observed less water in the local streams and rivers compared to many years ago. Besides, the difference in education levels and location factors may have influenced their perception on rainfall. No significant difference was identified by the post hoc test among farmers regarding their perception on more and erratic rain (see Table 4).

Table 4: Post hoc analysis results Farmer groups MD p-value Tay vs H.mong 0.082** 0.040 Farmers’ perception on climate change 1 Tay vs Dao 0.006 0.098 compared to the last 20 years Hmong vs Dao -0.075 0.240 Tay vs Hmong 0.053 0.377 2 Farmers perceived temperature increase Tay vs Dao 0.019 0.916 Hmong vs Dao -0.034 0.803 Tay vs Hmong 0.030 0.781 3 Famers perceived more and erratic rain Tay vs Dao 0.045 0.692 Hmong vs Dao 0.014 0.970 Tay vs Hmong -0.074 0.423 4 Farmers perceived more natural disasters Tay vs Dao 0.164 0.053 Hmong vs Dao 0.239* 0.070 Note: *** p<0.01, ** p<0.05, * p<0.1 Source: Field survey data, 2019 3.4.3. Farmers’ perception of more natural disasters Table 3 shows farmers’ perception regarding more natural disasters, with 64.1% of the farmers perceived more natural disasters compared to the last 20 years while 35.9% did not. Out of 362 samples, 37% of Tay farmers noticed more natural disasters and 20.2% did not. About 19.3% of Hmong farmers observed more natural disasters while 7.5% did not. Approximately 7.8% of Dao farmers noticed more natural disasters and 8.2% did not. ANOVA shows a significant difference at 1% level regarding farmers’ perception of more natural disasters, with F (2, 359) is 4.62 and p-value = 0.001. However, only a significant difference between Hmong and Dao farmers was found, with MD = 0.239 and p-value = 0.07. No difference was found among other farmer groups (see Table 4). The result shows the important evidence that some farmers still did not notice that climate change induced more natural disasters and the evidence from ANOVA showed strongly the differences in terms of the perception of more natural disasters, meaning that ethnic minority farmers have a different perception regarding the natural disaster. Therefore, policymakers or local governments should consider when they build the programs or implementation of policies for them. 3.5. Factors influencing farmers’ perception on climate change We employed the binary logit model to analyze the data. Before performing the models, we tested the models’ multicollinearity and heteroscedasticity issues which are common in econometric regression analysis (Pham et al., 2019). The mean of VIF was 1.598 for Model 1, 1.568 for Model 2, and 1.57 for Model 3 (less than 10), indicating that multicollinearity is not an issue in these models. Moreover, White's test for homoscedasticity was applied and the result for Model 1 was Chi2(206) = 223.57 with p-value = 0.19; for Model 2 was Chi2(198) = 212.34 with p-value = 0.23; and for Model 3 was Chi2(198) = 211.6 with p-value = 0.24. These results indicated that homoscedasticity was not a problem for the models. All models were highly significant at 1% level. For Model 1, the results of Chi-square = 46.8, Prob > chi2 = 0.000 and Pseudo R2 = 0.388 indicate that these 20 explanatory factors explained

38.8% of the probability that farmers would know about weather change. For Model 2, the results of Chi-square = 44.7, Prob > chi2 = 0.001 and Pseudo R2 = 0.174 indicate that these 19 explanatory variables described 17.4% of the probability that farmers would notice rainfall and erratic rain. Meanwhile, the Model 3 results of Chi-square = 67.7, Prob > chi2 = 0.000 and Pseudo R2 = 0.251 indicate that these 19 explanatory variables explained 25.1% of the probability that farmers would perceive temperature change. 3.5.1. Socioeconomic factors influencing farmers’ perception on climate change The commune significantly influences farmers’ perception on rainfall patterns. It seems that the farmers who stay in different locations would notice different rainfall changes. It is perhaps due to the fact that the rate of change in rainfall and its impact differed across communes. Our result is supported by the findings of Hitayezu et al., ( 2017) who also found that farmers stayed in the Windy Hill Mistbelt agro-ecological region was more likely to recognize climatic changes than other locations such as in Wartburg/Fawnleas area in South Africa, meaning that farmers stayed in different locations will have a different perception of climate change, or another word is that location factors affect farmers perception of climate change. Family status is positively significant in affecting farmers’ ability to notice the rainfall and temperature changes. The poorer households are more likely to notice the rainfall and temperature change. This is because poor households depend on more farm productivity; they often care about their farm; and observe the change in rainfall and temperature. Our result is consistent with the earlier findings of Abid et al., (2016) and Ullah et al., (2018). Household size is found to be significantly associated with farmers’ perception of weather change, indicating that households having more members increase the probability of perceiving weather change (Opiyo et al., 2016). However, it is contrary to the results of Al-Amin et al., (2019) and Tesfahunegn et al., (2016). Similarly, education level was strongly positively and significantly correlated perception of farmers on weather change. This result suggests that household heads with a higher level of education are more likely to notice weather change. Further, the previous findings suggested that farmers attended more in education and training, the ability to receive and process information of farmers increase and improve farmers’ cognitive ability as well (Hitayezu et al., 2017), and achieving higher education level will be more likely to better understanding of climate change and its impacts (Alemayehu and Bewket, 2017). Therefore, education could be a key component for building policies and climate change resilience. This finding was consistent with the previous finding of Al-Amin et al. (2019) and Huda. (2013). However, education was positively insignificant in building farmers’ perception of rainfall, and temperature change (Imran et al., 2020). Female labour negatively and significantly influences farmers’ perception on weather change, indicating that households having few female labours are less likely to notice weather change. Farming experience significantly affected the farmers’ perception of weather change. This finding is in line with the earlier results of Ado et al., (2019). However, it is insignificantly correlated with rainfall and temperature change (Tesfahunegn et al., 2016). The household male is negatively and significantly associated with farmers’ perception of weather change, rainfall, and temperature change, suggesting that households having fewer male members are less likely to perceive climate change. This is because male members, particularly the household head, is the main person in the family who normally collects more weather information and works frequently on the farm and sharing the weather information with each other. Therefore, the household having more male member notices climate change better than the household having

more females. There was no evidence that ethnic group, gender, respondents age, and major occupation influenced farmers’ perception of climate change. 3.5.2. Households’ assets influencing farmers’ perception on climate change The households that own less poultry are less likely to perceive climate change. This is because when farmers own more poultry, they spend more time caring for the poultry and therefore notice the weather changes. The cow and buffalo factor positively and significantly influence farmers’ perception on climate change, representing that households who own more cattle and cows are more likely to notice weather change. This is because cows and buffalo are valuable assets, so farmers have a tendency to be concerned with the impacts of weather on cows. This finding is similar to the earlier results of Opiyo et al., (2016) and Ado et al., (2019). However, this finding is not consistent with the previous findings of Silvestri et al., (2012) and Imran et al., (2020) who did research in terms of agro-pastoralists’ perceptions of climate change and adaptation selections in agropastoral communities in rural of Kenya and they found that owning cows and buffalo did not affect farmers perception of climate change although livestock is an essential resource for coping with climate shocks (Silvestri et al., 2012). Harvesting machine is a vital asset which can help farmers in saving time and labor force for farm activities. We found that the households who own harvesting machines are more likely to perceive climate change. Similarly, the tractor significantly influenced the farmers’ ability to notice a temperature change, but it is insignificantly associated with farmers’ perception on rainfall change. Television and smartphone are insignificantly correlated with farmers’ perception on weather change, rainfall, and temperature change. Meanwhile, radio significantly influences the farmers’ perception on weather change (see Table 5). 3.5.3. Farm characteristics influencing farmers’ perception on climate change Forestry years and income which play a significant role for smallholder farmers were positively and significantly associated with farmers’ perception on weather change. This means that the longer the forest exists, the better the farmer’s ability is in noticing the weather change. This is because the farmers take more time to care about the forest. Hence, farmers notice the change in weather. Similarly, households who earn higher incomes are more likely to notice the weather change. These findings are consistent with the previous studies of Imran et al., (2020) and Ado et al., (2019) but in contrast to the study of Silvestri et al., (2012).

Table 5: Factors influencing farmers’ perception on climate change. Model 1 Model 2 Model 3 Perceiving Perceiving rainfall Perceiving weather change change temperature change Coef. R.St.E Coef. R.St.E Coef. R.St.E Constant -1.956 (3.484) -2.654 (1.797) -1.344 (2.091) Demographic and socio-economic factors Commune 0.407 (0.407) 1.080*** (0.305) 0.560 (0.376) Ethnicity 0.488 (0.410) 0.009 (0.282) 0.167 (0.305) Family status 0.491** (0.238) 0.520** (0.247) Household size 0.552* (0.334) Gender 0.857 (0.663) 0.264 (0.485) 0.307 (0.587) Age -0.001 (0.019) 0.011 (0.025)

Model 1 Model 2 Model 3 Perceiving Perceiving rainfall Perceiving weather change change temperature change Coef. R.St.E Coef. R.St.E Coef. R.St.E Education 1.193*** (0.343) 0.240 (0.201) 0.200 (0.268) Major occupation -0.495 (0.301) Female labours -1.086* (0.578) Farming experience 0.865** (0.409) 0.270 (0.341) 0.345 (0.414) Household male -0.705* (0.418) -0.313* (0.178) -0.446** (0.194) Assets Poultry -0.029*** (0.009) -0.014** (0.006) -0.020*** (0.006) Cow and buffalo 0.594** (0.286) Tractor 0.359 (0.360) 0.890* (0.460) Harvesting machine 1.817*** (0.676) 0.946** (0.419) 1.004** (0.498) Television 0.260 (0.454) -0.127 (0.571) Radio -2.323*** (0.814) Smartphone -0.252 (0.350) Farm characteristics Residential land -0.001** (0.001) -0.002*** (0.001) Forestry area -0.216** (0.092) Forestry years 0.442*** (0.152) Income 0.078*** (0.023) Institutional factors Access to credit 1.389** (0.651) 1.786** (0.761) Borrowing money -0.883 (0.617) -2.741*** (0.705) Amount of loan 0.010 (0.014) 0.058*** (0.016) Infor-training -0.842 (0.535) -1.345** (0.547) Infor-phone 0.548 (0.384) 0.708 (0.446) CC policy -0.715** (0.313) Training -1.475** (0.614) Monetary investment -0.553** (0.149) -0.797*** (0.176)

Pseudo r-squared 0.388 0.174 0.251 Chi-square 46.773 44.668 67.747 SD dependent var 0.280 0.367 0.324 Number of obs 362 362 362 Prob > chi2 0.000 0.001 0.000 AIC 169.489 303.110 237.665 *** p<0.01, ** p<0.05, * p<0.1 Note: R.Std.Err: robust standard error Source: Field survey data, 2019

Forestry area is negatively associated with farmers’ perception on weather change, showing that households with less forestry land are less likely to perceive climate change. This finding is indirectly consistent with the previous studies of Trædal and Vedeld, (2018). Surprisingly, residential land significantly affects the farmers’ perception on rainfall and temperature change. The households having less land area for building a house are less likely to notice the rainfall and temperature change. 3.5.4. Institutional factors influencing farmers’ perception of climate change The respondents indicated that climate change policies and attendance in training are negatively and significantly correlated with farmers’ perception on weather change. This means that the households who are getting less climate change information and are rarely attending training are less likely to notice the weather change. Our results are consistent with the earlier finding of Tesfahunegn et al., (2016) while these findings are contrary to the studies of Silvestri et al., (2012). Regarding the respondents who acquired climate change information from training (infor-training), this factor is negatively and significantly associated with farmers’ perception on temperature change but insignificant in relation to their perception of rainfall. Meanwhile, information from mobile phone (infor-phone) shows an insignificant effect on farmers’ perception on both rainfall and temperature change. Our results are consistent with the study of Partey et al., (2020). Access to credit is significantly correlated with farmers’ perception on both rainfall and temperature change. The probability of the farmers’ perception on climate change increases when more households have access to credit. This is because households need more credit to cope with climatic risks. Our results are similar to the findings of Al-Amin et al., (2019). However, these findings are inconsistent with the previous studies of Silvestri et al., (2012) who indicated that credit has an insignificant effect on farmers’ perception on climate change. Similarly, the amount of loan is positively and significantly associated with farmers’ perception on temperature change, but insignificant in relation to rainfall change. Meanwhile, borrowing money has a negative and significant effect on farmers’ perception on temperature change, but insignificant about rainfall change. This indicates that the more loan the households take, the more likely they are to perceive the temperature change. This result could be explained by the fact that households need more money to cope with temperature change. Monetary investment negatively and significantly influences farmers’ perception on temperature and rainfall change, indicating that when climate change has less effects on the farm, the farmers are less likely to notice the change of temperature and rainfall. Essentially, these findings provide policymakers an understanding of the impact of these factors on ethnic minority farmers regarding climate change perception. It is recommended that government agencies and other institutions dealing with climate hazards provide information, policies, programs. There should be greater efforts to promote more accurate information, advice, and financial support (loans and credit) regarding severe problems. Moreover, local government should also provide information about the impacts of climate change and scientific climate predictions in a way that farmers can understand easily. 4. Conclusion This paper examines the ethnic minority farmers’ perception on climate change and determines the factors that influenced farmers’ perception on climate change in Bac Kan province of Viet Nam. Farmers have observed the change of climate over the last 20 years. Although most farmers noticed the decrease of rainfall, this perception was not supported by meteorological data which showed a positive trend of rainfall. Moreover, farmers perceived the increase in

temperature which was consistent with meteorological data. This study found a significant difference in farmers’ perception on climate change compared to the last 20 years. However, only the Tay farmers have different perception compared with the Hmong farmers at 5 % significant level, while no statistically significant difference was confirmed between Tay and Dao, and between Hmong and Dao farmers. The results imply that ethnic minority farmers are heterogeneous in terms of climate change perception. However, farmers who perceived that climate change is occurring will be more likely to take the adaptation strategy. Besides, some farmers still do not believe that climate change is happening, policymakers should consider providing more climate education and information for them. The result of binary logit models indicated that demographic factors such as household size, education level, male household member, family status, female household labor, and farming experience played a vital role in terms of affecting farmers perception of climate change, In contrast, gender, major occupation, and ethnic group were not statistically significant influencing farmers’ perception of climate change. Most asset factors were statistically significant in influencing farmers’ notice of climate change. Hence, improving the household economy was a very important target of the local authority in this area. Farm features showed an important role in terms of affecting farmers perceived climate change perception of farmers. Furthermore, institutional factors as access to credit, climate change policy, attending training, and money investment in the farm were significant factors associated with farmers’ perception of climate change. The results indicate that to reduce the negative impacts of climate change, policymakers and planners need to understand in detail of farmers’ perception of climate change to avoid mistakes during designing, performing climate change adaptation policies for ethnic minority farmers. Furthermore, local knowledge has played an important role in ethnic minority families therefore releasing, documenting, circulating, and selecting suitable local knowledge to adapt to climate change should be taken into account. The local government, policymakers, and planners should consider and improve farmers’ access to education, attending training, access to credit, household income, climate information so as to enhance households’ adaptive capacity in the future process of adapting to climate change. References 1. Abid, M., Scheffran, J., Schneider, U. A., & Elahi, E. (2019). Farmer Perceptions of Climate Change, Observed Trends and Adaptation of Agriculture in Pakistan. Environmental Management, 63(1), 110–123. https://doi.org/10.1007/s00267-018-1113-7 2. Abid, M., Schilling, J., Scheffran, J., & Zulfiqar, F. (2016). Climate change vulnerability, adaptation and risk perceptions at farm level in Punjab, Pakistan. Science of the Total Environment, 547, 447–460. https://doi.org/10.1016/j.scitotenv.2015.11.125 3. Ado, A. M., Leshan, J., Savadogo, P., Bo, L., & Shah, A. A. (2019). Farmers’ awareness and perception of climate change impacts: case study of Aguie district in Niger. Environment, Development and Sustainability, 21(6), 2963–2977. https://doi.org/10.1007/s10668-018-0173-4 4. Al-Amin, A. K. M. A., Akhter, T., Islam, A. H. M. S., Jahan, H., Hossain, M. J., Prodhan, M. M. H., … Kirby, M. (2019). An intra-household analysis of farmers’ perceptions of and adaptation to climate change impacts: empirical evidence from drought prone zones of Bangladesh. Climatic Change, 156(4), 545–565. https://doi.org/10.1007/s10584-019- 02511-9

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Livelihood Adaptation to Climate Change in the Coastal Zones of Vietnamese Mekong Delta: Case study in Ben Tre province

Duong Truong Phuc University of Social Sciences and Humanities, VNU-HCM Email: [email protected]

Abstract The Vietnamese Mekong Delta's favorable conditions have allowed farmers to promote large- scale agricultural production to meet the needs of food security and exports. However, the agriculture sector in general and the livelihoods of farmers in particular, especially farmers in the coastal areas, are facing many risks that can be vulnerable to climate change. In that context, the issue of adapting and mitigating impacts from the hazards of climate change becomes urgent. Results from the survey of 90 coastal farmer households in Ben Tre province showed that farmers self-adapt through applying indigenous initiatives and transforming livelihood. Farmers appreciate indigenous initiatives as important and actively apply these initiatives in the adaptation to unfavorable conditions such as landslide, lack of freshwater, saline intrusion. Livelihood transformation depends on the interaction of the ecology, the market as well as the motivation and ability of the household. Based on the criteria of economic, social and environmental efficiency, the paper assesses the rice-shrimp and pineapple model as two models that bring great prospects for adaptation to climate change in coastal areas. Keywords: Climate change, livelihood adaptation, livelihood transformation, Mekong Delta

1. Introduction The Vietnamese Mekong Delta (VMD) is a land of abundant natural resources and socio- economic conditions that have been exploited by residents in the region to promote a large production base to meet the needs of national food security and export. However, this delta is considered as one of the world's “hot spots” for climate change and sea-level rise, with a very high risk of vulnerability (IPCC, 2014). These impacts bring new risks and highlight previously existing difficulties leading to a decline in crop productivity, threatening national food security, creating great challenges to the lives of farmers (Pettengell, 2010). Adapting livelihoods to environmental change, especially for coastal residents, plays an important role as these are the most vulnerable. Livelihood adaptation is seen as adjusting the behavior of each population group to reduce vulnerability to hazards while taking advantage of the opportunities available to promote livelihood strategies (Smit et al., 2000). Farmers in the VMD have many different ways to adapt. Adaptation solutions such as perfecting irrigation systems, diversifying crops and livestock, changing crop schedules, using resilient varieties, buying agricultural insurance, applying indigenous initiatives and knowledge... not only related to production activities but also to other aspects of life. Adaptation is essential to external environmental change (Adger et al., 2009). The term derives from natural science, especially evolutionary biology, through Charles Darwin's studies of natural evolution and selection (Smit & Wandel, 2006). In the context of environmental change,

adaptation is the behavioral modification of groups and organizations to reduce vulnerability to climate change (Pielke, 1998) or the adjustment of socio-ecological responses to climate stimuli and effects (Adger et al., 2009; Smit et al., 2000; Smit & Pilifosova, 2003). Agricultural production is the primary source of income for most rural communities. Consequently, adapting to the adverse effects of environmental change is necessary to stabilizing livelihoods and ensuring food security (Bryan et al., 2009). Agricultural adaptation to climate/environmental change is a complex and multi-dimensional process (Bryant et al., 2000), involving a wide range of stakeholders, including policymakers, extension agents, non- governmental organizations, researchers, and local communities (Bryan et al., 2009). There are many measures to adapt to climate change in agriculture (Bradshaw et al., 2004; Kurukulasuriya & Mendelsohn, 2008; Mertz et al., 2009) and various factors affecting the use of any adaptation measures (Deressa et al., 2009). Some research suggests that individual characteristics affect adaptation, while others suggest that production experience, access to information, credit, and agricultural extension services strengthen the ability to apply adaptive measures (Maddison, 2007; Nhemachena & Hassan, 2007). Farmers in the Vietnamese Mekong Delta have many different adaptive solutions such as improving irrigation systems, diversifying crops and animals, changing crop schedules, using highly resistant varieties, buying agricultural insurance... These solutions are not only related to rice production, but also aspects of life such as safety of life and property. However, adaptive solutions to floods, storms, droughts, and saline intrusion that are expected to be enhanced due to climate/environmental change are often ineffective due to structural homogeneity, challenges. institutions and governance and reduction of natural resources (Keskinen et al., 2010). Therefore, the combination of structural and non-structural solutions is expected to bring about high efficiency. The paper aims to analyze the coastal farmers’ adaptive capacity in Ben Tre province through the use of indigenous initiatives and the transformation of livelihood models. For indigenous initiatives, the paper synthesizes the initiatives being applied in the research area. For livelihood transformation, the paper uses the Livelihood Effect Index to evaluate the sustainability/ effectiveness of current livelihood models. The analytical results may contribute to policy implications for VMD’s adaptive strategy in the future. 2. Methodology 2.1. The research site and sampling survey The research area is the coastal districts of Ben Tre province including Binh Dai district, Ba Tri district and Thanh Phu district (Fig. 1). This is the area most vulnerable to climate change and sea-level rise in Ben Tre (WWF, 2012). The main livelihoods of local communities are cultivation (rice, crops) and aquaculture (clam, shrimp), which are livelihood models that are highly susceptible to adverse changes from the natural environment. Therefore, adaptive measures are regularly deployed to increase the resilient capacity of farmers. In addition to structural solutions, non-structural measures such as the application of indigenous initiatives should also be reviewed and integrated in order to incorporate into local adaptation strategies in the future. Data on households’ indigenous initiatives and livelihoods were collected using the sociological survey method with questionnaires around issues such as demographic characteristics; indigenous initiatives; current livelihood models. The study sample was selected in the form of judgment with the list of households provided by the extension staff in each commune such as

Thoi Thuan commune - Binh Dai district (30 households), Bao Thuan commune - Ba Tri district (30 households) and An Dien commune - Thanh Phu district (30 households).

Figure 1: The research area

Source: Designed by author 2.2. Livelihood Effect Index Composite index method - the Livelihood Effect Index (LEI) is developed and applied to assess the effectiveness or sustainability of current livelihood models in the study area to consider the possibility of replicating these models in the climate change adaptation strategy. This index builds on the connotation of the concept of sustainability (WECD, 1987) and the sustainable livelihood framework of DFID (DFID, 2001). The indicators in Table 1 are inherited from a number of studies done previously in the Vietnamese Mekong Delta (Lâm Văn Tân et al., 2013; Lê Hồng Việt et al., 2016; Nguyễn Thị Ngọc Lan et al., 2018; Nguyễn Thị Song Bình & Ngô Thị Thanh Hằng, 2013; Phạm Thanh Vũ et al., 2013). However, in the social and environmental factors, the criteria are encoded according to the Likert scale to facilitate calculation. For each factor as well as each corresponding indicator, weights were assigned by allowing farmers to evaluate themselves on a scale of 1-10 to ensure objectivity. The factors, indicators and criteria of the LEI are shown in Table 1. Table 1: The Livelihood Effect Index 1st 2nd Factors Weight Indicator Weight Criteria

(W1) (W2) Economic 9 Total proceeds (TP) 9 million P = TP-TC factor VND/year CE = P/TC (Ec) Total costs (TC) 5 million VND/year Profits (P) 8 million VND/year Capital efficiency (CE) 7 Social factor 7 Technology 8 1 2 3 4 5

1st 2nd Factors Weight Indicator Weight Criteria

(W1) (W2) (So) 1: Very backward; 5: Very advanced Market 9 1 2 3 4 5 1: Very unstable; 5: Very stable Seed 5 1 2 3 4 5 1: Least diverse; 5: Most diverse Labor 4 1 2 3 4 5 1: Labor shortage; 5: Labor redundance Agricultural 6 1 2 3 4 5 extension 1: Never; 5: Very regular Environmental 5 Soil degradation 7 1 2 3 4 5 factor 1: Extremely impact; 5: No (En) impact Water pollution 8 1 2 3 4 5 1: Extremely impact; 5: No impact Biodiversity loss 5 1 2 3 4 5 1: Extremely impact; 5: No impact Standardizing the results: d = X/Xmax d: standardized value; X: observed value; Xmax: maximum observed value

3. Results 3.1. Demographic characteristics The population groups in the study area are mainly engaged in agriculture (cultivation, aquaculture ...). These are all sensitive livelihoods with factors such as climate, land, water resources, prices and market, so farmers are very vulnerable to negative changes from those factors. Regarding gender, male householders account for a relatively high proportion in the study area (92.5%). Men are usually healthier and easier to grasp rice farming techniques than women, so they take on the job that generates the main income for their family. Regarding education, the majority of householders are at grade 9 or below with a rate of 93.96%. This meets the standard of universal rural education and also helps the householder to

access and understand at a basic level about agricultural policies as well as update production information, scientific and technical advances and other new farming models. Regarding production experience, the average age of the householder is 47.83 years old. At this age, the householder has a lot of experience, so they can accumulate indigenous initiatives. Regarding health, the survey results show that 90.42% of householders are in good health, most of them do not suffer from serious illnesses that can interrupt or decrease working capacity. Regarding household size, each household has 5 members or less (89.79%), of which 1-2 people are involved in agricultural production. The remaining members are the children and the elderly. The dependency ratio is generally quite high (averaging 0.82). 3.2. Farmers' indigenous initiatives and knowledge in adapting to climate change 3.2.1. Landslides, soil erosion Farmers have taken the initiative to plant trees to prevent landslides and soil erosion (Fig. 2a). Common crops are Sonneratia caseolaris, Avicennia marina, Rhizophora apiculata, Casuarina equisetifolia, Nypa fruticans… Each type of tree will be allocated in suitable areas to achieve the best results. Sonneratia caseolaris, Avicennia marina, Rhizophora apiculata are planted along canals and rivers because they have good flood tolerance, good soil-rooting systems, and extensive mudflats. Casuarina equisetifolia and Nypa fruticans are planted along the dike and around the dune. 3.2.2. Lack of freshwater In production, many farmers bravely transformed the crop structure. The common trend is to abandon rice cultivation that requires a lot of water, low productivity to vegetable crops that need less water, high productivity such as watermelon, peanut... On each farm, the farmers also covered with canvas to limit evaporation, prevent weeds, pests and avoid erosion. Many farmers also discovered the freshwater source on the sand dunes due to rainwater deposited at a depth of 2-3 meters (Fig. 2b). In daily life, many farmers buy big jars to store rainwater in the rainy season and use it in the dry season by adding activated carbon to clean the rainwater. Figure 2: Farmers' indigenous initiatives a b

Source: Author’s survey, August 2019 3.3. The effectiveness of livelihood models The basis for selecting five livelihood models including rice cultivation (triple-cropping), rice- shrimp, shrimp-vegetables, perennial crops (pineapple) and annual crops (sugarcane) came

from the results of the survey in the study area and the local agricultural development orientation for the period 2016-2020. 3.3.1. The result of partial assessment * Economic effeciency (Ec) The economic efficiency of the livelihood models has been assessed through 4 indicators as total proceeds, total costs, profit and capital efficiency. The result showed that shrimp-rice farming has the highest total revenue, total expenditure and profit; pineapple farming on saline soils has the highest capital efficiency. The economic efficiency of shrimp-rice farming is 8.5 (highest) and rice cultivation (triple-cropping) is 1.7 (lowest) (see more Table 2). Table 2: The result of assessing the economic efficiency of livelihood models Rice (triple- Shrimp- Shrimp- Indicator W2 Pineapple Sugarcane cropping) rice vegetable Total proceeds 9 0.104 1 0.133 0,315 0.120 Total costs 5 0.105 1 0.095 0.194 0.139 Profits 8 0.102 1 0.194 0.507 0.089 Capital efficiency 7 0.372 0.382 0.780 1 0.497 Economic effeciency (Ec) 1.7 8.5 3.0 5.1 2.1 Source: Author’s survey results, August 2019 * Social efficiency (So) The social efficiency of the livelihood models has been assessed through 5 indicators as technology, market, seed, labor and agricultural extension. The result showed that shrimp-rice farming has the highest technology, seed; shrimp-vegetable farming has the highest agricultural extension; pineapple farming on saline soils has the highest market. The social efficiency of pineapple farming is 9.1 (highest) and sugarcane farming is 5.9 (lowest) (see more Table 3). Table 3: The result of assessing the social efficiency of livelihood models Rice Shrimp- Shrimp- Indicator W2 (triple- Pineapple Sugarcane rice vegetable cropping) Technology 8 0.770 1 0.892 0.811 0.689 Market 9 0.300 0.333 0.400 1 0.400 Seed 5 0.797 1 0.703 0.891 0.523 Labor 4 0.474 0.842 0.632 1 0.632 Agricultural 6 0.727 0.809 1 0.864 0.773 extension Social efficiency (So) 6.0 7.6 7.1 9.1 5.9 Source: Author’s survey results, August 2019 * Environmental efficiency (En) The environmental efficiency of the livelihood models has been assessed through 3 indicators as soil degradation, water pollution and biodiversity loss. The result showed that shrimp-rice farming has the highest soil degradation and biodiversity loss; pineapple farming on saline soils

has the highest water pollution. The environmental efficiency of pineapple farming is 9.0 (highest) and rice (triple-cropping) and sugarcane farming are 5.5 (lowest) (see more Table 4). Table 4: The result of assessing the economic efficiency of livelihood models Rice (3- Shrimp- Shrimp- Indicator W2 Pineapple Sugarcane cropping) rice vegetable Soil degradation 7 0.478 1 0.489 0.739 0.478 Water pollution 8 0.524 0.651 0.744 1 0.524 Biodiversity loss 5 0.677 1 0.817 0.968 0.677 Environmental efficiency (En) 5.5 8.6 6.7 9.0 5.5 Source: Author’s survey results, August 2019 3.3.2. The result of overall assessment The overall assessment result showed that the shrimp-rice farming has the highest efficiency (LEI = 8.2), followed by pineapple (LEI = 7.4) and shrimp-vegetable farming (LEI = 5.3), sugarcane (LEI = 4.2) and rice (triple-cropping) (LEI = 4.0) (Table 5). Table 5: The result of overall assessment of livelihood models Rice (3- Shrimp- Shrimp- Factors W1 Pineapple Sugarcane cropping) rice vegetable Economic (Ec) 9 1.7 8.5 3.0 5.1 2.1 Social (So) 7 6.0 7.6 7.1 9.1 5.9 Environmental (En) 5 5.5 8.6 6.7 9.0 5.5 Livelihood effect index (LEI) 4.0 8.2 5.3 7.4 4.2 Source: Author’s survey results, August 2019 4. Disscusions Many farmers consider shrimp-rice rotation or intercropping to be highly effective. These farmers not only cultivate rice and shrimp but also cultivate nearby subsidiary crops to increase their income. According to farmers, based on the natural law, the more diverse the production model, the more sustainable it is, because different cultivars can promote positive factors and limit negative factors such as strengthening food chains, improving soil, cutting off the life cycle of pests... during growth and development (Fig.3). Figure 3: Rice-shrimp intercropping

Source: Author’s survey, August 2019

Sea level rise and saline intrusion are a concern, but farmers have chosen the appropriate model in the context of many risks. The rice-shrimp rotation model has the highest level of bio- resource reuse. After a shrimp crop, the wastes are converted and absorbed by the rice plants, so it contributes to limiting the number of fertilizers and pesticides in the early stages of cultivation. In contrast, after a rice crop, the decomposing straw creates natural habitat and food source for shrimp in the next crop. As a result, this model contributes to reducing production costs, increasing productivity and profitability. In addition, the rice-shrimp rotation is a positive way to wash salinity in the rainy season, limit salinity, and prolong the life of land use. Many farmers in brackish and saltwater areas in the process of searching for crop plants and animals adapted to local farming conditions have found pineapple cultivation to be an effective adaptation solution. Thanks to the suitability of the soil and climate, the investment costs are low, simple care, fewer pests, harvest all year round and can yield up to 10 years for high salinity areas. 5. Conclusion Livelihood adaptation is a process that requires the participation of stakeholders to coordinate effectively in multi-level adaptation strategies. In the process, farmers have self-adapted by applying indigenous initiatives and livelihood model transformation. The transformation process is influenced by the interaction between the ecosystem and the market as well as the motivation and ability of the households. The models that have been assessed to be economically, socially and environmentally effective can be replicated in coastal areas to help farmers adapt to climate change, including shrimp-rice farming and pineapple cultivation. In the context of climate change, it can increase livelihood risks while farmers' adaptive capacity is still low, leading to heavy losses. Therefore, adaptation and support for adaptation are issues that need to be implemented promptly in the sound strategy. Acknowledgements The research was sponsored by USSH, VNU-HCMC (Grant number: TC2020-02). References 1. Adger, W. N., Dessai, S., Goulden, M., Hulme, M., Lorenzoni, I., Nelson, R., … Wreford, A. (2009). Are There Social Limits to Adaptation to Climate Change? Climatic Change, 93(3–4), 335–354. 2. Bradshaw, B., Dolan, H., & Smit, B. (2004). Farm-level adaptation to climatic variability and change: crop diversification in the Canadian prairies. Climatic Change, 67(1), 119–141. 3. Bryan, E., Deressa, T. T., Gbetibouo, G. A., & Ringler, C. (2009). Adaptation to Climate Change in Ethiopia and South Africa: Options and constraints. Environmental Science & Policy, 12(4), 413–426. 4. Bryant, C. R., Smit, B., Brklacich, M., Johnston, T. R., Smithers, J., Chiotti, Q., & Singh, B. (2000). Adaptation in Canadian Agriculture to Climatic Variability and Change. Climatic Change, 45(1), 181–201. 5. Deressa, T. T., Hassan, R. M., Ringler, C., Alemu, T., & Yesuf, M. (2009). Determinants of Farmers’ Choice of Adaptation methods to Climate Change in the Nile Basin of Ethiopia. Global Environmental Change, 19(2), 248–255. 6. DFID. (2001). Framework: Introduction. In Sustainable Livelihoods Guidance Sheets (pp. 13–14). London: Department for International Development (DFID). 7. IPCC. (2014). Climate Change 2014: Impacts, Adaptation, and Vulnerability (C. B. Field, V. R. Barros, D. J. Dokken, K. J. Mach, M. D. Mastrandrea, T. E. Bilir, … L. L. White,

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Potential Effects of Climate Change on Food Security in Quang Binh Province

Nguyen Tien Thanh1, Le Phuong Dung2 1Department of Hydro-meteorological Modeling and Forecasting, Thuyloi University, Email: [email protected] 2Thai Nguyen University of Education, Email: [email protected]

Abstract In recent years, a changing in climate has great effects on all aspects of socio-economic problems, especially for Quang Binh province in which the natural disaster risks often occur. In Quang Binh, agriculture sector mainly contributes to the gross domestic product of economic profile. Of course, it will be adversely affected by climate change due to largely dependent on climate variables. Therefore, the purpose of this study is to interpret the trend analysis of main climate variables and food crops. The potential effects of climate change on food security are then identified on the basic of multiple regression analysis under climate change scenarios of RCP4.5 and RCP8.5 for Quang Binh province. The results illustrate a strong deceasing in the yield of summer-autumn and cropping season rice and maize crops for the periods of 2016- 2035 and 2046-2065 under two scenarios of RCP4.5 and RCP8.5. Keywords: Climate change, clime variables, food security, Quang Binh

1. Introduction Food security is a key sensitive to climate variables. For instance, a year of deficiency or too much rainfall, a hot spell or cold spell at the wrong time, or extreme climate events (e.g., flooding and tropical storms) can have significantly effect on the food security of local related to crop yields and livestock production as special aspects. Until now, although modern farming technologies and techniques have helped to reduce the vulnerability due to adversely natural conditions and boost production, there are several evidences that changing in climate has significantly affected the food security represented at the quality and quantity of food production globally. Yuliawan and Handoko (2016) used Model of Shierary Rice with Geographical Information System to estimate the decreasing of rice production in Indonesia. The results illustrated the age of rice the shorter and decrease the rice yields with the rise of temperature. The effect of temperature rise to rice crop yield in Indonesia uses Shierary Rice model with geographical information system (GIS) feature. In Malaysia, it is illustrated that rice yields decrease by 3.44% in the current season and 0.03% in the next season in response to a 1% increase in temperature (Alam et al., 2014). In Vietnam, Mekong Delta as an example, during the dry season crops the report of Nhan et al. (2011) showed a relationship between the variables of climate like temperature and crops. It is indicated that if temperatures in January fall below 19°C, every 1°C drop would cause a loss of 0.12 tons/ha. For wet-season crops, each 1°C increase beyond 35°C would lead to a plunge of 0.38 tons/ha. In general, there is a quantity of food produced due to changes in climate variables. According to the USEPA (2011), a change in meteorological variables (e.g., temperature, precipitation, maximum temperature) sensitively affects the agriculture sector.

The effects of changing climate on agriculture sector are under direct and indirect. For example, the change in temperature and precipitation directly affect the photosynthesis processes and development of crop as well as CO2 concentration (IPCC, 2007). Quang Binh is one of the poorest provinces of Vietnam in which an estimation of over 80% of population depends on the sector of agriculture forestry and fisheries (ICEM, 2016). The key activities in this sector are production of rice and maize. In recent years, it is experiencing remarkably that the Quang Binh’s economic is rapidly growing. However, the natural disasters (e.g., floods, storms, heavy rainfall), especially in a global warming, have significantly affected and prevented the growth of targets for the present or future planning. Also, this is a big challenge for the socio-economic development generally and agriculture sector particularly for Quang Binh province. To date, it is especially noteworthy that there are no studies in the food yield problems in relationship with the changes in climate variables under climate change scenarios for Quang Binh. So, it is of importance to understand how yield of major food crops is responding to changes in climate variables (e.g., precipitation, temperature) due to a change in agricultural production affected farmers both economically and socially. For this, the study is to interpret how climate variables is affecting yield of major food crops in Quang Binh province. The potential effects of climate change on food crops are then quantified. 2. Materials and Methods 2.1. Research area Quang Binh province has a coordination ranging from 16°55’ to 18°05’ North and 105°37’ to 107°00’ East. It is bordered by Ha Tinh Province on the north with the Ngang mountain pass as the natural frontier, Quang Trị province to the south, Laos to the west, and faces the Eastern Sea to the east. The Annamite Range is the natural border between Quang Binh province and Laos with peaks ranging from 1000 to 1500 m, the summit of which is peak Phi Co Pi with the height of over 2000 m. In the east of the province are lower hills and then several narrow plains and river deltas. Figure 1: Sketch map of research area

Source: Designed by authors

Quang Binh belongs to the monsoon-tropical zone. The climate is distinctly divided into two seasons. Rainy season is from September to March next year. The annual average rainfall is 2,000-2,300mm. Heavy rains concentrate in September, October and November. Dry season is from April to August with the average of 24ºC-25ºC. In this study, the collection data includes (i) Hydro-meteorological data are precipitation, average temperature, maximum temperature and minimum temperature. They are collected from the National Hydro-Meteorological Service from 1995 to 2018. (ii) Yield of major food crops are rice and maize. The data is collected from general statistics office of Vietnam (GSO, 2019). Regarding to the projected climate data, the data is adopted from the CORDEX-SEA (https://cordex.org/data-access/). The climate variables are precipitation, average temperature, maximum temperature and minimum temperature under scenarios of RCP4.5 and RCP8.5 for the period of 2016-2035, 2046-2065 and 1986-2005. 2.2. Methodology Firstly, the simple regression analysis is applied to estimate the trend of average temperature, maximum temperature, minimum temperature and precipitation according to the winter- spring crop (November to April), summer-autumn crop (May to September) and cropping season (June to November). The classification of cropping season is based on the Vietnam Academy of Agricultural Sciences (http://www.vaas.org.vn/). Then, the methodology is the multiple regression analysis to estimate the equations that describe the relationship between yield of crop and climatic variables. The multiple regression method is widely applied in the agriculture field (Yu, et al., 2018; Palomares & Pauly, 1989; Nicholls, 1997). The equation is expressed as follows:

W = C+ αoX + α1Tmax + α2Tmin + α3Tavg (1) Where: W: crop yields (quintal per hectare) X: seasonal precipitation (mm) Tmax: Maximum temperature (oC) Tmin: Minimum temperature (oC) Tavg: Average temperature (oC)

αo, α1, α2 and α3 are the coefficient of precipitation, maximum temperature, minimum temperature and average temperature, respectively. C is a constant 3. Results 3.1. Trend of climate variables The trend analysis of climate variables for each growing season of the major food crops is done for Quang Binh province from 1995 to 2018. Time series data of average temperature, maximum temperature and minimum temperature from meteorological stations (i.e., Ba Don, Dong Hoi, Tuyen Hoa) are taken and analysed. As shown in Figure 2 to Figure 4, there is a trend of slight increasing in minimum temperature and average temperature in all crops. Opposite to this, maximum temperature slightly decreases in winter-spring crop (Figure 2). A slight increase in maximum temperature is seen during summer-autumn crop and cropping season (Figure 3 and Figure 4). Plus, precipitation is expected to slightly increase for all crops

during 1995 - 2018 (Figure 3 and Figure 4). It is noted that there exists high inter-annual variation in winter-summer precipitation (Figure 2). Figure 2: Trend of climate variables (X, Tmax, Tmin, Tavg) in winter-spring crop during 1995 - 2018

Source: Author’s calculations

Figure 3: Trend of climate variables (X, Tmax, Tmin, Tavg) in summer-autumn crop during 1995 - 2018

Source: Author’s calculations

Figure 4: Trend of climate variables (X, Tmax, Tmin, Tavg) in cropping season during 1995-2018

Source: Author’s calculations 3.2. Trend of yield of major food crops In this study, a simple linear regression is used to analyse the trends of major food crops including rice and maize yield from 1995 to 2018. The analysis shows that yield of rice is slightly increasing with coefficient of 1.1088 and 0.5829 during winter-spring season and summer-autumn season, respectively (Figure 5). Meanwhile, there is nearly no change in the yield of rice during cropping season during 1995 - 2018. For maize yield, there is slightly increasing with the coefficient of 1.4367 (Figure 6). Generally, with plus coefficients indicate that there increases in yield of crops significantly contributed to changes in crop management pratices and development of economic. Figure 5: Trend of yield of rice crop in different crops during 1995 - 2018

Source: Author’s calculations

Figure 6: Trend of yield of maize crop during 1995 - 2018

Source: Author’s calculations 3.3. Effects of climate variables on yield of major food crops Using the multiple regression analysis, the effect of climate variables on the yield of major crops is analyzed. Table 1 shows the effect of climate variables on yield of rice crops and maize with the p-value at the 5% level of significance. In general, it is shown that a negative effect of precipitation on all yield of rice and maize crops, except the yield of rice crop in winter-spring. Contrary to this, a positive effect of minimum temperature on the yield of rice and maize crops is seen, except the yield of rice crop in winter-spring (Table 1). Table 1: Effect of climate variables on yield of rice crops and maize Coefficients and Values Yield Tavg P-Value Tmax P-Value Tmin P-Value X P-Value Winter-Spring 11.04 0.185 -5.18 0.158 -4.20 0.610 0.005 0.610 rice crop Summer-Autumn -53.55 0.051 15.76 0.200 39.55 0.019 -0.002 0.801 rice crop Cropping season -52.30 0.081 23.72 0.072 28.45 0.101 -0.001 0.609 rice crop Maize crop -4.1 0.925 -13.34 0.376 34.48 0.258 -0.001 0.796 Source: Author’s calculations The effect of other climate variables on yield of crops it is seen that maximum temperature has positive relationships with the yield of rice crops in summer-autumn (15.76) and in cropping season (23.72), whereas there is a negative relationship with the yield of maize crop (-13.34) and rice crop in winter-spring (-5.18). A negative relationship with the yield of rice and maize crops is seen, except the yield of rice crop in winter-spring. Using the multiple regression, the relationship between climate variables and yield of rice and maize crops are expressed by the equations 2 to 5

For winter-spring rice crop: W = 20.034 + 11.04*Tavg - 5.18*Tmax - 4.2*Tmin + 0.005*X (2) With the regression statistics of Multiple R (0.412), R square (0.17), adjusted R square (-0.005) and Standard error (8.17). For Summer-Autumn crop: W = 37.786 - 53.55*Tavg + 15.76*Tmax + 39.55*Tmin - 0.002*X (3) With the regression statistics of Multiple R (0.552), R square (0.305), adjusted R square (0.159) and Standard error (5.81). For cropping season: W = -4.21 - 52.3*Tavg + 23.72*Tmax + 28.45*Tmin - 0.001*X (4) With the regression statistics of Multiple R (0.524), R square (0.274), adjusted R square (0.121) and Standard error (5.25). For maize crop: W = -237.625 - 4.1*Tavg - 13.34*Tmax + 34.48*Tmin - 0.001*X (5) With the regression statistics of Multiple R (0.639), R square (0.408), adjusted R square (0.283) and Standard error (8.94). Using the data of projected climate variables (i.e., average temperature, maximum temperature, minimum temperature and precipitation) adopted from the CORDEX-SEA project under scenarios of RCP4.5 and RCP8.5, the yield of rice and maize crops are calculated for the baseline period of 1986-2005 and the future periods of 2016-2035 and 2046-2065 on the basic of equations from 3 to 6. From that, the changes in yield of rice and maize crops are defined. The result of changes in yield of rice and maize crops is depicted in Table 1. It is indicated that there is greatly decreasing in the yield of summer-autumn and cropping season rice in the period of 2016-2035 and 2045-2065 with an amount of more than 800 quintals per hectare. For winter-spring rice and maize crop, a slight increasing is projected in both considered scenarios and periods (Table 2). Table 2: Changes in yield of rice crops and maize under climate change scenarios of RCP4.5 and RCP8.5 (quintal per hectare) winter-spring summer-autumn cropping season maize Period/Scenarios RCP4.5 RCP8.5 RCP4.5 RCP8.5 RCP4.5 RCP8.5 RCP4.5 RCP8.5 2016-2035 24.13 25.08 -205.72 -165.88 -818.52 -808.14 55.69 93.82 2046-2065 49.64 62.18 -196.31 -169.08 -818.52 -802.26 278.28 409.32 Source: Author’s calculations 4. Conclusions The study presents the trend of climate variables including average temperature, maximum temperature, minimum temperature and precipitation for Quang Binh province during 1995- 2018 for each crop season. In general, there slightly increase in average temperature, maximum temperature, minimum temperature and precipitation in all agriculture season, except slightly decrease in maximum temperature in winter-spring crop during 1995-2018. Plus, the trend of yield of major food crop is analyzed and interpreted. It shows an increase in yield of rice and maize crops. More importantly, the study develops the equations described the relationship between climate variables and yield of rice and maize crops for each agriculture season. It is of importance to analyze the potential effects of climate change on food security in future

under scenarios of RCP4.5 and RCP8.5. The relationship between climate variables and yield of rice and maize crops is fully interpreted. Although the majority of the climatic variables do not have significant p-value, this analysis illustrates the direction in which climate variables affect yield of rice and maize crops. Under scenarios of RCP4.5 and RCP8.5, the yield of summer-autumn and cropping season rice and maize crop is expected to strongly decrease for the period of 2016-2035 and 2046-2065. It is of vital to give the sensible policies and plans related to the security food problems in summer-autumn and cropping season rice crops. Regarding to the policies to ensure the food security in future under a change in climate, the authors suggest a switch from rice to non-rice crops like maize should be made during the summer-autumn season and cropping season. Furthermore, an adjustment of rice areas during winter-spring should be extended. References 1. Alam, M.M., B. Talib, C. Siwar, and Toriman. M.E. (2014). “Impacts of Climate Change on Paddy Production in Malaysia: Micro Study on IADA at North West Selangor.” Research Journal of Environmental and Earth Sciences 6, pp 251–58. 2. GSO (2019). “Statistical Yearbook of Vietnam 2019”. Available at: https://www.gso.gov.vn/default_en.aspx?tabid=778 (accessed March, 2020). 3. ICEM. (2016), Quang Binh Provincial Level Vulnerability Assessment for Ecosystem- based Adaptation. Published by Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE) 4. IPCC. (2007). “Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change.”, (M. L. Parry, O. F. Canziani, J. P. Palutikof, P. J. Van der Linden, & C. E. Hanson, Eds.) Cambridge, UK, Cambridge University Press. 5. Nhn, K.D., N.H. Trung, and N.V. Sanh. (2011). “The Impact of Weather Variability on Rice and Aquaculture Production in the Mekong Delta.” Environmental Change and Agricultural Sustainability in the Mekong Delta. A.M. Stewart and P.A. Coclanis, eds. Dordrecht, the Netherlands: Springer, 2011, pp. 437–51 6. Nicholls, N. (1997). “Increased Australian wheat yield due to recent climate trends.” Nature, 387(6632), 484-485. 7. Palomares, M. L., & Pauly, D. (1989). “A multiple regression model for prediction the food consumption of marine fish populations”. Marine and Freshwater Research, 40(3), 259-273. 8. USEPA. (2011). “Agriculture and food supply”. U.S. Environmental Protection Agency http:/ /www.epa.gov/climatechange/effects/agriculture.html 9. Yu, P., Low, M. Y., & Zhou, W. (2018). “Design of experiments and regression modelling in food flavour and sensory analysis: A review”. Trends in Food Science & Technology, 71, 202-215. 10. Yuliawan, T., & Handoko, I. (2016). “The effect of temperature rise to rice crop yield in Indonesia uses Shierary Rice Model with Geographical Information System (GIS) Feature”. Proceedings of the 2nd International Symposium on LAPAN-IPB Satellite for Food Security and Environmental Monitoring 2015, LISAT-FSEM 2015, pp 214-220

Assessment of Flood Vulnerability Index in Vinh Long Province

Nguyen Thuy Linh1, Nguyen Thi Thu2 1Faculty of Environment, Climate Change and Urban Studies, National Economics University 2International Centre of Environmental Management - ICEM

Abstract This study assesses flood vulnerability, levels of vulnerability and coping strategies for flood hazards. The vulnerability and resilience of the local communities in eight city and districts of Vinh Long province key concepts in this study. In recent years, most households in the are effected by flood. It is therefore important to measure their levels of vulnerability and assess their responses for current and future planning. A flood vulnerability index was used to measure the extent of flood vulnerability. The study uses the FVI approach introduced by Richard. F. Connor in 2005, Human Development Index (HDI) assessment method of UNDP in 2006 to normalize data of different units by identifying values from 0-1; and combined with the method of determining the weights for the variables based on Lyengar and Sudarhan's formulation (1982). The vulnerability to flood in this community is determined by four main components: climate, hydrogeological, socio-economic and countermeasure component with multiple indicators. This study mainly based on nine indicators including thetotal precipitation in wet season, average historical flood depth averaged slope of landscape, urbanized area ratio, population density, population rate under poverty, household income, population in flood areas and local training. The results show that Long Ho, Binh Tan, Tam Binh, Tra On are most vulnerable to flood (with FVI from 0.450 to 0.827), in which Tra On has the highest index; Vinh Long city, Mang Thit and Vung Liem are at medium level of vulnerability to flood (with the average FVI of 3.20 ) and Binh Minh is least vulnerable in the region. Keywords: Vulnerability, Flood Vulnerability Index, Resilience and Adaptation

1. Introduction Flooding is one of the natural disasters which is potentially dangerous and frequently threatens the lives of local people and the socio-economic development of our country. Floods often cause serious loss of human life and property. In Vietnam, especially the Mekong River Delta, thousands of households are flooded every year in the rainy season, many public works are affected, economic and social activities are disrupted (MONRE, 2019). Besides, the process of urbanization taking place in parallel with the impact of climate change and frequent heavy rains has caused flooding with an increasing frequency. In Vietnam, Vinh Long is among provinces heavily affected by floods with increasing frequency and severity (VMHA-MONRE, 2020). In 2018, Vinh Long province as well as the provinces in the Mekong Delta region suffered many impacts from natural disasters such as erratic rain and winds, high tide surges, river bank erosion. According to the report of the first 8 months of 2018 by Vinh Long Provincial Commanding Committee of Natural Disaster Prevention and Control, Search and Rescue, after the flood season, the whole province had 22 broken dikes with a landslide length of up to 417m, 134 dyke was flooded with the total length

of 93,894m, 23 dams were destroyed. As shown in the report, there were 54 dams, 1818 houses and 4 schools and 41.1 ha of crops in the local region were flooded. According to Vinh Long Department of Agriculture and Rural Development, the whole province currently has about 14,195 ha of productive and residential land located in the areas that is highly vulnerable to major floods. In order to enhance the flood response ability, in addition to structural measures (construction of dikes, reservoirs to prevent floods from upstream areas ...), non-structural measures also play a very important role. Many non-structural measures are long-term and sustainable such as land use planning, residential areas planning, and raising awareness of the people. In addition, the immediate flood warnings, flood forecasting, and population evacuation and relocation to a safe area ... are also very effective in limiting loss of human lives and property damage. The vulnerability concept used in this study is based on Connor’s deffinition of the flood. Connor's ressearch was about flood vulnerability assessment at river basin scale. The flood vulnerability is defined by identifying factors that influence people's sensitivity to floods. In order to enhance the applicability of theoretical research in practice, especially in proactive flood vulnerability assessment. Janet Edwards, in 2007, introduced another concept which was the flood vulnerability map. According to “Handbook for Vulnerability Mapping” by Janet Edwards in 2007, flood vulnerability map is a map that shows the location of areas where people, natural environment and property can be at high risk to disasters, and might have to face with serious consequences such as human damage and environmental pollution if the disasters occur. Quantifying the vulnerability of an area can provide the information needed to support decision-making against flood hazards. In order to assess the socio-economic vulnerability of floods, a multidisciplinary approach to integrated disaster risk management is needed to develop solutions to mitigate impacts caused by floods. The paper includes four sessions: session one introduces the research overview, session 2 includes methods to determine the flood vulnerability index, session 3 shows the analysis and the results of data processing, and the last session includes conclusions and recommendations. 2. Method of Determining the Vulnerability Flood Index 2.1. Richard. F. Conner Formula Flood Vulnerability Index (FVI) according to the formula Richard. F. Connor is used in flood vulnerability studies at the river basin level. This is an important tool for raising public awareness and assisting in the identification of priorities in investment and decision making. According to Richard. F. Connor formular, there are four main components in identifying Flood Vulnerability Index: FVI = C + H + S – M Where: C is Climate component, H is Hydrogeological component, S is Socio-economic component and M is Countermeasure component. 2.2. Development of nessessary indicators for identifying FVI Developing FVI for a specific area includes the following steps: 1- Selection of the study area; 2- Identify the set of indicators; 3- Normalization of variables (value of indicator) in order to compare vulnerability levels among regions;

4- Determine the weight of variables in order to compare the level of impact of different indicators to the vulnerability level of a certain region; 5- Calculate the FVI value; 6- Develop flood vulnerability maps. This study uses 9 main indicators to determine FVI: - Climate component: Total precipitation in wet season, average historical flood depth; - Hydrogeological component: Averaged slope of landscape, urbanized area ratio; - Socio-economic component: Population density, Population rate under poverty, household income, population on flood area; - Countermeasure component: Local trainings on flooding prevention. Table 1: FVI components and indicator Component Indicator Abbreviation Climate component Total precipitation in wet season (May- I1 October) (mm) Average historical flood depth (m) I2 Hydrogeological component Averaged slope of landscape (degree) I3 Urbanized area ratio (%) I4 Socio-economic component Popolation density (person/km2) I5 Population rate under poverty (%) I6 Household income (million/person) I7 Population on flood area (people) I8 Countermeasure component Local trainings on flood prevention (hours) I9

2.3. Data Normalization The values of indicators have different units and ratios, so they need to be normalized before calculating FVI. This study used the Human Development Index (HDI) introduced by UNDP in 2009 to normalize the values of indicators set. After normalization, the indicators will have values from 0-1. However, it is necessary to determine the correlation between indicators with the vulnerability. There are two types of relationships that can happen: - Positive correlation: The vulnerability index will increase/decrease with an increase/decrease of value of indecator. For example: flood volume, flood intensity…The larger the value of these indicators, the higher the vulnerability index of that area is. - Inverse correlation: The vulnerability index will increase/decrease with a decrease/increase of value of indecator. For example: literacy rate, flood risk awareness, flood preparedness ... The larger the value of these indicators, the lower the vulnerability index of that area is. There are a wide variety of functions that can be applied to normalize data. In this paper, we use the normalization scheme which was proposed by Krajnc and Glavic in 2005. The normalize function of the value of an indicator which has positive correlation with the vulnerability is represented by the formula:

Xij Min X ij i   xij  Max Xij Min X ij ii    (1)

The normalize function of the value of an indicator which has inverse relationship with the vulnerability is represented by the formula:

MXXax ij ij i   yij  Max Xij Min X ij ii (2) After defining the correlation of indicators to the vulnerability level, the value of FVI will be identified by: FVI = (I1 + I2) + (I3 + I4) + (I5 + I6 - I7 + I8) – I9

3.4. Determine the weights for the variables Determining the weights helps to assess the level of impact of each indicator on a certain area (in this case study, this step is used to determine the level of impact of9 indicators on a given district). Iyengar and Sudarshan in 1982 developed a method to work-out a composite Indicator from multivariate data and it was used to rank the districts in terms of their economic performance. This methodology is statistically sound and well suited for the development of composite Indicator of vulnerability to climate change also. A brief discussion of the methodology is given below. It is assumed that there are M regions/districts, K indicators of vulnerability and xij,i 1,2,...M ; j 1,2,...K are the normalized scores. The level or stage of development of th i zone, i y, is assumed to be a linear sum of ij x as K yxi  w j ij j1 Where w’s (0 < w < 1 and ∑ wj = 1) are the weight. In Iyengar and Sudarshan’s method the weights are assumed to vary inversely as the variance over the regions in the respective indicators of vulnerability. That is, the weight wj is determined by c w j  vxar(ij ) i (3) where c is a normalizing constant such that: 1  K 1 c    j1 vxar(ij ) i (4) The choice of the weights in this manner would ensure that large variation in any one of the indicators would not unduly dominate the contribution of the rest of the indicators and distort inter regional comparisons. The vulnerability Indicator so computed lies between 0 and 1, with 1 indicating maximum vulnerability and 0 indicating no vulnerability at all. All the data then will be calculated in Excel software. 3. Data analysis and results 3.1. Data normalisation Sources of data include (1) The climate data is the latest version 2.1 which the WorldClim was released in January 2020. This historical dataset represents the climate from 1970 to 2000; (2)

The dataset of flood model developed by JBA for MRC in 2017, based on baseline climate with frequency of 100year return period; (3) Digital population density 2020 from AsiaPop; (4) The DEM NASA SRTM 30m and (5) General Statistic Office of Vinh Long province in 2017. The collected data has different units, which makes it difficult to calculate and compare different values. Standardization of data solves the problem of unit differences. The raw collected data will be processed using normalized formulas (1) and (2). In which, the indicators of income per capita (I7) and the average number of hours of people participating in flood control training (I9) will be negative because these two indicators are inversely related to the vulnerability (the greater the vulnerability, the smaller the values and vice versa).

Table 2: Unnormalized values of indicators Counter- Hydrogeological measure Climate (C) Socio-economic component (S) component (H) component (M) Total Average Average Urban Pop. Pop. rate Annual Pop. on Training precipitation historical Income Slope areas density under flood area in wet season flood poverty per (May - Oct) depth capital (Person (Million (mm) (m) (degree) (%) (%) People (av. hours) /km2) /person) I1 I2 I3 I4 I5 I6 I7 I8 I9 Vinh Long 1.186 1.08 2.30 100.00 2994 0.6 74.1 118.409 2 City Binh Minh 1.243 1.07 2.34 17.04 962 1.9 42.6 40.887 1.7 Binh Tan 1.217 1.18 2.84 1.46 608 1.51 36.4 59.573 1.3 Long Ho 1.174 1.18 2.05 8.21 839 2.2 34.4 109.080 1.3 Mang Thit 1.181 1.10 1.89 1.41 621 2.89 40 99.074 1.2 Tam Binh 1.218 1.22 2.46 1.19 538 3.03 36.5 143.557 2 Tra On 1.259 1.14 2.52 1.31 512 3.06 31 87.141 1 Vung Liem 1.235 1.03 1.98 2.03 523 3.65 31.5 87.235 1.7 Source: Vinh Long GSO-2017; WorldClim-2020; MRC, JBA-2017, DEM NASA STRM 30m Table 3: Normalized values of indicators C H S M City/Districts I1 I2 I3 I4 I5 I6 I7 I8 I9 Vinh Long city 0.141 0.299 0.431 1.000 1.000 - 1.000 0.755 1.000 Binh Minh 0.813 0.232 0.474 0.160 0.181 0.426 0.269 - 0.700 Binh Tan 0.511 0.818 1.000 0.003 0.039 0.298 0.125 0.182 0.300 Long Ho - 0.817 0.164 0.071 0.132 0.525 0.079 0.664 0.300 Mang Thit 0.083 0.387 - 0.002 0.044 0.751 0.209 0.567 0.200 Tam Binh 0.513 1.000 0.602 - 0.010 0.797 0.128 1.000 1.000 Tra On 1.000 0.571 0.658 0.001 - 0.807 - 0.451 - Vung Liem 0.713 - 0.096 0.008 0.004 1 0.012 0.451 0.700 Source: Author’s calculation

Table 4: C, H, S, M values in Vinh Long province City/Districts C H S M Vinh Long city 0.440 1.431 0.755 1.000 Binh Minh 1.044 0.634 0.338 0.700 Binh Tan 1.329 1.003 0.394 0.300 Long Ho 0.817 0.235 1.242 0.300 Mang Thit 0.471 0.002 1.153 0.200 Tam Binh 1.513 0.602 1.680 1.000 Tra On 1.571 0.659 1.257 0.000 Vung Liem 0.713 0.105 1.444 0.700 Source: Author’s calculation

3.2. Flood vulnerability index results The values of climate, hydrogeological, socio-economic and countermeasure component will then be weighted by applying formula (3) and (4). Table 5: Weighted values of the variables City/Districts C Weighted H Weighted S Weighted M Weighted Vinh Long city 0.440 0.109 1.431 0.332 0.755 0.171 1.000 0.294 Binh Minh 1.044 0.258 0.634 0.147 0.338 0.077 0.700 0.206 Binh Tan 1.329 0.328 1.003 0.233 0.394 0.089 0.300 0.088 Long Ho 0.817 0.202 0.235 0.055 1.242 0.282 0.300 0.088 Mang Thit 0.471 0.116 0.002 0.001 1.153 0.262 0.200 0.059 Tam Binh 1.513 0.374 0.602 0.140 1.680 0.381 1.000 0.294 Tra On 1.571 0.388 0.659 0.153 1.257 0.286 0.000 0.000 Vung Liem 0.713 0.176 0.105 0.024 1.444 0.328 0.700 0.206 Source: Author’s calculation Figure 1: Rader Chart of FVI Components for 8 districts

High and Very High Medium Groups Small Group Groups

C C C 0.4 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 M 0.0 H M 0.0 H M 0.0 H

S S S Tam Binh Vung Liem Tra On Vinh Long city Binh Tan Long Ho Binh Minh

(Source: Author’s calculation)

Table 6: Flood vulnerability Index results and designation City/Districts FVI Vinh Long city 0.319 Vulnerability to flood Binh Minh 0.276 Vulnerability to flood Binh Tan 0.562 High Vulnerability to flood Long Ho 0.450 Vulnerability to flood Mang Thit 0.320 Vulnerability to flood Tam Binh 0.601 High Vulnerability to flood Tra On 0.827 Very high Vulnerability to flood Vung Liem 0.323 Vulnerability to flood Figure 2: Vulnerability map in Vinh Long province

4. Conclusion and recommendation The main objective of this study was to assess flood vulnerability and adaptation strategies of local cumminities of districts in Vinh Long province. The findings articulated the following factors that determine flood vulnerability: climate. hydrogeological. socio-economic and countermeasure component. The results show that Long Ho. Binh Tan. Tam Binh. Tra On are most vulnerable to flood (with FVI from 0.450 to 0.827). in which Tra On has the highest index; Vinh Long city. Mang Thit and Vung Liem are at medium level of vulnerability to flood (with the average FVI of 3.20 ). Binh Minh is the least vulnerable compared to other districts in the region, however, the FVI of this district is relatively high at more than 2.7. The figure of Binh Minh indicates that this district is vulnerable to flood but the level (in some indicators comparison) is still the smallest; the reason for this is due to the total area of Binh Minh and number of selected indicators for assessing process. From the weighting results among

components, Vinh Long city has a fair FVI index (0.319), largely due to the topographic features of the area. Besides, the number of people living in flooded areas is high. Tra On district has a high number of people living in flood-prone areas, a high rate of poor population, low per capita income (in 2017), and the number of trainings for people on flood prevention capacity is limited. These are the reasons why the district is highly vulnerable to floods The findings also revealed that this area is socially, economically and environmentally vulnerable to floods at different levels. Meanwhile. the physical and environmental components have minor contribution in the vulnerability of this area to floods. The overall finding of local cumminities of districts in Vinh Long province's vulnerability to flood indicated that the area has high vulnerability to floods. The main reason of this high vulnerability to floods is the lack of resilience. There are many coping strategies that the community is using and intends to use against floods. Of all the identified strategies. temporary relocation to safer places such as houses of relatives and neighbours. doing nothing and waiting for neighbours and government to help and evacuating to a safer area were among the most practised coping strategies. To build resilience against floods. the following initiatives are recommended:  There is a need for public awareness campaigns. particularly the development of efficient early warning systems. The availability of an early flood warning system will assist households in the expansion of their knowledge. Indigenous knowledge systems should be taken into consideration when developing these systems.  The community needs to develop strong collaboration with traditional leaders. municipal officials and households.  The municipality should commit more funds for disaster reduction activities.  It is important to build dwellings with durable materials. which requires channelling of extra funding to the community for housing.  Community leaders should not allocate plots in the floodplain area. Hence. there is a need for floodplain mapping.  The community leaders should develop response and recovery mechanisms by setting aside money for flood response and recovery.

References 1. Balica. S. F. (2012). Applying the Flood Vulnerability Index as a Knowledge base for flood risk assessment, CRC Press. 2. Connor R.F.. & Hiroki K. (2005). Development of a Method for Assessing Flood Vulnerability, Water Sci Technol, vol. 51, no. 5, pp. 61-7. 3. Damjan, K. and Peter, G. (2005). A Model for Integrated Assessment of Sustainable Development, Resources Conservation and Recycling, doi. 10.1016/j.resconrec.2004.06.002. 4. Edwards, J., (2007). Handbook for Vulnerability Mapping. EU Asia ProEco Project. 5. Fuchs, S., Heiss, K., and Hübl, J., (2007). Towards an Empirical Vulnerability Function for Use in Debris Flow Risk Assessment. Nat. Hazards Earth Syst. Sci., vol.7, pp. 495-506. 6. Heyman, B. N., Davis, C., and Krumpe, P. F. (1991). An Assessment of Worldwide Disaster Vulnerability. Disaster Management, vol.4, pp. 3-36. 7. IPCC, (1996). Second Assessment Report.

8. IPCC, (2001a). Climate Change 2001: Impacts, Adaptation and Vulnerability". Summary for Policymakers. WMO. 9. Krajnc D. and Glavic P. (2005). How to Compare Companies on Relevant Dimensions of Sustainability, Ecological Economics, Vol.55, No.4, pp.551-563. 10. Lyengar, N.S. and Sudarshan, P. (1982). A Method of Classifying Regions from Multivariate Data, Economic and Political Weekly - Special Article, vol. 20, pp. 48-52 11. MONRE, (2019). [Online]. Available at: http://www.monre.gov.vn/Pages/boi-canh-xay- dung-quyet-dinh-cua-thu-tuong-chinh-phu-quy-dinh-muc-nuoc-tuong-ung-voi-cac-cap- bao-dong-lu-tren-cac-song-thuoc-pham-vi-ca-nuoc.aspx. 12. Pollescha, N.L. and Daleb, V.H. (2016). Normalization in Sustainability Assessment: Methods and implications, Ecological Economics, vol. 130, pp. 195-208. 13. Son, N. T., and Van, C. T. (2014). “Part 3: Calculation of the Vulnerability Index due to Floods by Weighting Method-Testing on Communal Units in Thu Bon River Basin.” Vietnam National University, Journal of Science and Technology, vol. 30, no. 4, pp. 150-158. 14. Van, C. T. (2015). Study to Establish the Scientific Basis for Assessment of Serving Vulnerable Flood Prevention in Vu Gia-Thu Bon. Ph.D. thesis. Vietnam National University, Hanoi. 15. Vietnam Meteorological and Hydrological Administration, (2020). [Online]. Available at: http://kttvqg.gov.vn/kttv-voi-san-xuat-va-doi-song-106/vinh-long-uoc-thiet-hai-do- thien-tai-hon-331-ty-dong-7163.html. 16. Vinh Long Provincial Commanding Committee of Natural Disaster Prevention and Control, (2018). [Online]. Available at: http://phongchongthientaivinhlong.com.vn/chi- tiet-tin?/bao-cao-tinh-hinh-thiet-hai-do-thien-tai-gay-ra-trong-thang-8-va-tu-au-nam- 2018-en-nay-tren-ia-ban-tinh-vinh-long/11407184.

The Impacts of Climate Change on Agriculture and Solutions to Enhance Adaptive Capacity in Quang Binh Province

Duong Thi Mai Thuong Quang Binh University Email: [email protected]

Abstract Climate change is one of the biggest challenges facing humanity today. Climate change can have serious impacts on economic development, especially in the agricultural sector, as it is exposed to direct exposure to weather and other natural conditions. Vietnam is considered as one of the countries most affected by climate change (IPCC, 2001); especially, the coastal areas are most vulnerable. Quang Binh is a coastal province. Climate change causes changes in temperature, precipitation, erratic and unpredictable due to natural disasters, storms, floods and droughts. That has had a strong impact on the crop, livestock and hydrology sectors. Therefore, the adaptive solutions drawn based on the study of climate change, its impact on Quang Binh agriculture are essential for the sustainable development of the future agriculture. Key words: climate change, impact, adaptation solution, Quang Binh agriculture

1. Introduction Climate change is one of the most significant challenges facing humanity today. This phenomenon has serious impacts on the earth. It not only causes a change in average temperature and precipitation but also increases the frequency of floods, droughts, heat waves, and the intensity of typhoons and hurricanes following the change in temperature and precipitation patterns. Climate change presents one of the greatest environmental challenges to economic development, especially in the agricultural sector, due to its direct exposure to and dependence on weather and other natural conditions. According to Binh Thi Thanh Trinh in 2015, Viet Nam is ranked as 13th of 170 countries, in terms of its vulnerability to the impacts of climate change over the next 30 years. Extreme climate events have increased both in frequency and intensity. Climate change has made hazards, especially storms, floods and droughts, more intense. Climate change strongly affects the socio-economic development of the country. Quang Binh is a coastal province where agriculture is an important sector of the local economy. Agriculture and those dependent on agriculture-based livelihoods have affected of extreme climate events and gradual climate change. Therefore, research into the impacts of climate change on Quang Binh agriculture and the development of suitable adaptation solutions for Vietnamese coastal provinces is extremely essential. 2. Methodology Methods of data collection: collecting and using secondary data on climate change from reports of Quang Binh Department of Agriculture and Rural Development, agricultural plan of rural development from 2016 to 2020; synthesis of indicators on the results of agricultural

production and rural development in 2011-2015, the 5-year plan 2016-2020 and statistics on local climate change. In addition, the authour collects documents and data based on research by some researchers on climate change in Quang Binh. Synthesis, descriptive, and comparative methods are used to clarify the current situation and the impact of climate change on Quang Binh agriculture. The aggregated data were processed based on extraction from agricultural data and data of climate change in the whole province of Quang Binh. Moreover, research on agricultural subjects of Quang Binh province is conducted in order to get additional data sources. 3. Results 3.1. Conceptual approach 3.1.1. Climate change The official definition by the United Nations Framework Convention on Climate Change (UNFCCC) is that climate change is the change that can be attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods (United Nations,1992). The Intergovernmental Panel on Climate Change (IPCC) defines climate change as a change in the state of the climate that can be identified by changes in the mean and/or the variability of its properties, and that persists for an extended period, typically decades or longer (World Meteorological Organization, 2019). The projections of future climate patterns are largely based on computer-based models of the climate system that incorporate the important factors and processes of the atmosphere and the oceans, including the expected growth in greenhouse gases from socio-economic scenarios for the coming decades. The IPCC has examined the published results from many different models and based on the evidence has estimated that by 2100: - The global average surface warming (surface air temperature change) will increase by 1.1 - 6.4 °C. - The sea level will rise between 18 and 59 cm. - The oceans will become more acidic. - It is very likely that hot extremes, heat waves and heavy precipitation events will continue to become more frequent. - It is very likely that there will be more precipitation at higher latitudes, and it is likely that there will be less precipitation in most subtropical land areas. - It is likely that tropical cyclones (typhoons and hurricanes) will become more intense, with larger peak wind speeds and heavier precipitation associated with ongoing increases of tropical sea surface temperatures. 3.1.2. Impacts of climate change on the agricultural sector The impacts of climate change on agriculture will be one of the major deciding factors influencing the future food security of mankind on the earth. Agriculture is not only sensitive to climate change but also one of the major drivers for climate change. Understanding the weather changes over a certain period and adjusting the management practices towards achieving better harvest are challenges to the growth of agricultural sector as a whole. The climate sensitivity of agriculture is uncertain, as there is regional variation in rainfall, temperature, crops and cropping systems, soils and management practices. The inter-annual variations in temperature and precipitation were much higher than the predicted changes in

temperature and precipitation. The crop losses may increase if the predicted climate change increases the climate variability. Different crops respond differently as the global warming will have a complex impact. The tropics are more dependent on agriculture as 75% of world population lives in tropics and two thirds of these people’s main occupation is agriculture. With low levels of technology, wide range of pests, diseases and weeds, land degradation, unequal land distribution and rapid population growth, any impact on tropical agriculture will affect their livelihood. Rice, wheat, maize, sorghum, soybean and barley are the six major crops in the world grown in 40% cropped area, and contribute to 55% of non-meat calories and over 70% of animal feed (Rosenzweig, C., and D. Liverman, 1992). Consequently, any effect on these crops would adversely affect the food security. Agricultural production is carried out through the selection of crops suitable for the climate of a specific region and application of proper farming methods. Therefore, agriculture is a climate dependent bio-industry with notable regional characteristics. Regional characteristics refer to the ecosystem characteristics determined by the climate of the region. Climate change disturbs the agricultural ecosystem, resulting in the change in agricultural climatic elements such as temperature, precipitation, and sunlight, while further influencing the arable sector, livestock and hydrology sector. The flow of the impacts of climate change on the agricultural sector can be illustrated as shown in Figure 1: Figure 1. Flow of the climate change impact on the agricultural sector

Source: Kim, Chang-Gil et al., 2009, p.36.

3.2. Climate change impacts on Quang Binh agriculture 3.2.1. Climate change in Quang Binh province * Temperature variations The annual average temperature has had changes. In general, the temperature tends to increase, the average temperature increase about 0.0440C/year, temperature fluctuation amplitude between years is 23.40C-25.50C. The maximum temperature tends to increase about 0.250C/year, the minimum temperature tends to decrease by about 0.610C/year; amplitude fluctuates between dark temperatures high and minimum temperature from 14.90C-31.40C. * Precipitation variations In the period 1964 - 2019, the average annual rainfall is 2,261.4 mm/year, rainfall tends to decrease and decrease an average of 89.03 mm/year. Record the variation between the annual average rainfall maximum and minimum is very large from 1,569.6 mm - 3,091.8 mm, the difference in rainfall is up to 1,521.4mm. Average monthly largest rainfall: From 2006 to 2019, average rainfall the largest month tends to increase markedly from 371.2 mm to 930.5 mm, an increase of 559.3 mm. * Increase natural disasters Quang Binh is one of the twenty most hazard prone provinces in the country, affected annually by various hazards including: flood, flash flood, tropical depression, storm, typhoon and drought. Due to climate change, the intensity and geographical scope of these hazards will increase.  Storms In Quang Binh, storms normally occur from July to September every year. However, in recent years, it seems storms have already started to become more unpredictable and have happened even in March and April, or alternatively in October. Storm intensity has apparently also increased. With increased frequency, intensity and unpredictability, the damages caused by storms are likely to increase with climate change.  Floods Quang Binh province is particularly vulnerable to storms, floods, whirlwinds, river and sea bank erosion and salinity intrusion. During the rainy season, storms and tropical low-pressure systems often cause heavy rains and tidal floods, resulting in inundation in lowland regions and flash floods in mountainous and hilly areas. Due to the topography of the province, all the rivers of Quang Binh are relatively short and steep. When storms bring heavy rains, then combined with the nature of the river system this often results in floods with a very rapid onset with high velocity flows and high erosive power. Floods usually occurring from Aug to Oct are considered a normal feature of life in Quang Binh Province. Other types of natural hazard in the Province are early floods, which occur from Apr to Jun, whirlwinds, thunderstorms and salinity intrusion. The average number of events reported per year (referred to as “data cards”) in Quang Binh is eleven. In most cases when a disaster happened, particularly as a result of storms and typhoons, it affected all seven districts in the province. Heavy rainfall and floods in some cases affected the whole province, while in other cases had more localized impact. These hazards have a significant impact on the province’s economy, natural resources and the lives and livelihoods of the population.

 Drought, saltwater intrusion In addition, Quang Binh is also impacted by hot dry winds, the so-called “Laos wind”, that occurs from January to August, but mainly from Apr to Jul. The hot wind accelerates the evaporation rate and reduces both humidity and soil moisture, adding to the severity of any drought and water shortages. In 1998, 2002, 2003 and again in 2005, low rainfall and hot dry winds limited the water supply available for domestic uses and irrigation. The water level in many reservoirs such as Phu Vinh, An Ma, Tien Lang, Cam Ly, Vuc Sanh, Dong Ran, and Be, was very low due to a combination of reduced rainfall inflow and increased evaporation, and was unable to supply irrigation needs. Additionally, saltwater intrusion deepened the problems during the drought period, intensifying the damage to agricultural production. The 1998 drought was the most severe in 30 years. 312,000 people (38.8% of the provincial population) in 65 out of 148 communes had restricted use of clean water. This drought severely affected 25,600ha of rice during the winter-spring season. It was estimated 9,700ha of rice, 436 hectares of sugarcane, 280ha of rubber trees, and many hectares of coffee plants were destroyed. Many parts of Kien Giang River dried out. Approximately 150 meters of the riverbank were severely eroded, and many houses and roads were destroyed, resulting in atotal loss of about 193 billion VND. At the end of 2018, due to low rainfall, the volume of water in lakes and dams in Quang Binh and Quang Tri provinces is only 40 to 70% of the design capacity. The extreme weather from the beginning of the year until now with the prolonged heat of nearly 400C makes the water reserve increasingly dry. Some reservoirs have had their bottoms left or were below "dead" water levels. In 2019, heavy rains appear little, the total duration of rain is short, floods are common in medium and small floods. The total amount of flow in river basins in Quang Binh is low and lacking much compared to the average of many years. * The different sea level rise scenarios for Quang Binh According to different climate change and sea level rise scenarios for Quang Binh in “Quang Binh provincial level vulnerability assessment for ecosystem-based adaptation” of Mackenzie, Catherine and Mather, Robert (ICEM) and et al, inundated areas will evolve as follows during 2020-2100: Figure 2: Inundation caused by sea level rise in Quang Binh - Scenario B1

Figure 3: Inundation caused by sea level rise in Quang Binh Scenario B2

Figure 4: Inundation caused by sea level rise in Quang Binh - Scenario A1FI

Under the low emissions scenario (B1): inundated area will cover 0.34 - 1.23% of the province area by 2020; 0.47 - 1.41% by 2040; 0.47 - 1.36% by 2050 and 0.95 - 1.83% by 2100. Under the medium emissions scenario (B2) inundated area will increase from Scenario B1 but not significantly: inundated area will account for 0.34 - 1.29% by 2020; 0.47 - 1.41% by 2040; 0.52 - 1.50% by 2050 and 1.11 - 1.91% by 2100. Under the high emissions scenario (A1FI): inundated area at high tide levels will account for up to 1.29% of the province by 2020 and 2.07% by 2100. Many of the inundated areas will occur in rice cultivation land, urban land and residential areas, as well as in aquaculture land. Inundated areas in Dong Hoi will be the lowest in terms of volume share, but highest in terms of value share. 3.2.2. Climate change impacts on Quang Binh agriculture * Impacts on the arable sector Every year, Quang Binh is affected by 4 to 5 typhoon or tropical depressions, of which 1 to 2 typhoons directly hit the province. Accompanied by typhoons is heavy rain causing flash floods in mountainous areas and flooding in low-lying plains. Storms and floods often occur in September and October at the end of the Summer-Autumn season, when many crops are not harvested yet, causing great damage to crop. Rice and other crops in the Summer-Autumn season have not been harvested yet and damaged by storms and floods; industrial crops (rubber, pepper), fruit trees are broken; seeds, agricultural products, food were flooded and damaged. Super typhoon No.10 landed in Quang Binh on September 30, 2013, the storm center in the area of the North of Dong Hoi city, the intensity of storm is very high with the level 12 wind,

shocking on level 12 (stronger than the 10-year storm. 1983, just 30 years ago), the time lasted more than 5 hours, causing serious damage to Quang Binh agricultural production. According to the report of the Provincial Steering Committee for Flood and Storm Control, there were: 274 ha of rice, 260 ha of vegetables, 3,149 ha of crops of all kinds were damaged and lost; 980 ha of fruit trees, 7.529 ha of forest trees were broken; In particular, there were 13,797/18,220 ha of rubber damaged, of which 4,773 ha of losses were completely liquidated to be replanted. From 2014 up to now, Quang Binh has been severely drought, the rainfall in 2014 only reached 60% on average every year, many reservoirs are lack of water, leading to summer-autumn crop, many areas cannot be sowed, crop productivity decreases. In summer, prolonged hot sun accompanied by dry Lao wind makes the water evaporate quickly, leading to drought in many places. Droughts often occur in July and August right at the middle of the Summer- Autumn crop, when the crops are in flowering period, so the harm is huge. The drought has reduced productivity, even the loss of some crops, and many areas cannot be planted due to lack of water. Every year, Quang Binh suffers from 3 to 4 waves of cold air overflowing, causing severe cold and cold on a large scale. Cold spells usually occur in December and January, right at the start of the winter-spring crop. The cold in Quang Binh is often accompanied by rain, so the damage is greater. Newly planted crops, especially rice, often die due to cold and flooding. The weather is complicated, erratic rain and sun has created favorable conditions for pests and diseases to arise and cause widespread damage. Summer-autumn rice crop in 2018, the whole province of Quang Binh implements an area of 15,165 ha/16,000 ha. According to the Provincial Plant Protection and Plant Protection Department, the plant protection stations in the province, in many fields, pests and diseases appear and destroy on a large scale such as stem borers 160 ha, 285 ha dry-sheath disease, white backed planthopper nearly 680 ha and especially the small leaf worm’s outbreak with the infected area of more than 1,270 ha; The common density is 10 - 15 individuals/m2, the place is 30-50 heads/m2 high, 80- 100 pieces/m2 locally. In addition, due to erratic weather conditions also create conditions for diseases such as physiological gold leaf, silver leaf and black streaks on rice that cause harm. The arising and harm of pests and diseases will affect the growth and development as well as damage to productivity and crop yield. * Impacts on the livestock sector In the livestock sector, climate change brings about biological changes in areas such as fertilization and breeding. The increase in temperature accompanied by extreme weather phenomena caused affected livestock and poultry species serious. Hot sun causes cattle, poultry to grow slowly, feed consumption increases, electricity and water costs are high and easy to cause summer diseases... The frequency of storms and floods affects Quang Binh more and more and the level of harm is getting bigger and bigger. Most recently, the historic flood in early October 2010 and the super typhoon No.10 in late September 2013 caused serious damage to Quang Binh agricultural production. According to the report of the Steering Committee for Flood and Storm Control in Quang Binh province, after the historical flood in 2010, there were 2,981 cattle, 31,399 pigs and 488,022 poultry died and swept away. Super typhoon No. 10 in 2013, there were: 315 cows, 3,379 pigs and 448,866 birds died and swept away.

* Impacts on the hydrology sector Quang Binh is a coastal province, hydrology sector plays important roles for food supply, nutrition, provides jobs and income generation for local people. This sector already faces multiple stresses, including overfishing and water pollution. Climate change may worsen these stresses. Temperature changes could lead to significant impacts, particular for aquaculture. The increase in temperature also creates conditions for pathogens to grow, harming shrimps, fish, and other aquatic species. At the same time, high temperature increases resistance of aquaculture species declined. According to Quang Binh Provincial Statistical Office, as of the end of July 2018, shrimp diseases have occurred in 47 farming households in 6 communes and wards of 4 districts and towns with a total area of near disease. 24 ha, accounting for more than 2.1% of the province's farming area; losses of 13.2 million breeding shrimps. In particular, white spot disease is nearly 22.6 ha/52 ponds/44 households in Ngu Thuy Trung (Le Thuy), Dong Trach, Ha Trach (Bo Trach) and Quang Tien and Quang Thuan wards (Ba Don); Hematopoietic and epithelial necrosis disease over 1.6 ha/4 ponds/3 households in Vo Ninh commune (Quang Ninh). Climate change along with increasing natural disasters causes huge damage to aquaculture areas. Rising sea level will change the habitat of many marine species, firstly shrimp and natural fish. Traditional aquaculture models are at risk of bankruptcy. The process of saline intrusion into the inland will be deeper, concentrated in coastal communes, such as: Nhan Trach, Hai Trach (Bo Trach district), Quang Hung, Canh Duong (Quang Trach district), Bao Ninh and Quang Phu (Dong Hoi City) ... and fresh water will be more scarce. 3.3. Adaptation solutions 3.3.1. Adjust plant structure Adjusting the structure of plant varieties in combination with a reasonable seasonal schedule to dodge the disadvantages of the weather: From the practical guidance of production in Quang Binh, show that the beginning of the winter-spring crop of new plants cultivated, especially rice, often die due to cold, damaging and flooding; In the late summer-autumn season, the crop is often lost due to storms and floods. Therefore, it is necessary to adjust the structure of short-term plant varieties, especially rice. The winter-spring crop changes from using long-time rice varieties such as X21, Xi23, IR353- 66, NX30 ... to use high-quality and short-term medium and high-quality varieties such as: P6, TBR45, PC6, HT1 ...; Summer-Autumn crop changed from using medium-day varieties to using short and short-day varieties such as PC6, HT1, Bac Thom 7, P6 mutations ... to shorten the growth time (Tran Dinh Hiep, 2015). On that basis, it is combined with the adjustment of a reasonable seasonal calendar: the late winter-spring crop is late to avoid damage from cold and inundation in the beginning of the season, the Summer-Autumn crop is harvested early (before September 5) to avoid damage from storms and late floods. 3.3.2. Research, select and input production of plant varieties and animal breeds adapt to climate change Crossbreed to create new species more adapted to the changing climate with increased tolerance for arid conditions, high salinity, flooding and pests.

Select short-term and high-yielding plant varieties that can withstand good drought and cold weather to limit adverse impacts of climate change. Selecting varieties of perennial crops such as rubber trees, fruit trees and forest trees need to pay more attention to the ability to resist peas to limit damage caused by wind and storms. Encourage farmers to use new high-yielding varieties. Investment in building on-site seed production establishments; select, nurture, and preserve precious local seed sources. Perform strict seed management to create seed sources with clear origin, quality assurance. 3.3.3. Application of technical advances in production Actively apply replication to production of intensive farming processes. Research to apply advanced technological processes such as water-saving irrigation in the form of drip; planting trees in greenhouses can adjust temperature, humidity, light according to plant physiological characteristics... in order to form and develop high-tech agricultural production, minimize dependence on nature. In the field of animal husbandry, the provincial agriculture sector also aims to "green breeding", which means to increase the application of biotechnology applications to livestock to both reduce environmental pollution and be limited disease. Encourage on synchronous implementation of many solutions in livestock waste treatment such as building biological safety breeding models, processing biogas technology, biological products, bio-ponds learning, biological padding... 3.3.4. Other solutions - Strengthening capacity to respond to climate change for officials at all levels and people. Especially, raising awareness and capacity to adapt to climate change for farmers are necessary - Constructing infrastructure and technical facilities considering the impact of climate change to ensure the least affected plants and animals. - Support farmers to buy insurance for plants and animals; experiment, proceed to expand the project to support farmers to buy agricultural insurance which is being implemented by the Ministry of Finance so that when risks occur, people's lives are still guaranteed and they can reproduce; build a set of indicators to prioritize policy support. 4. Conclusion Climate change is a topical issue. For Quang Binh, a coastal province, agriculture depends on nature, so the impact of climate change is severe. The change in average temperature and precipitation, extreme climate events have increased both in frequency and intensity, especially storms, floods and droughts... affects arable, livestock sector and hydrology sector. Therefore, it is necessary to adjust plant structure; research, select and input production of plant varieties and animal breeds adapt to climate change; application of technical advances in production... to develop sustainable agriculture in the future. References 1. Binh Thi Thanh Trinh. (2015). An Analysis of Climate Change Adaptation in the Agricultural Sector of the Red River Delta, Viet Nam, Doctoral Thesis, Ha Noi Water Resource University, Viet Nam, Griffith University, Queensland Australia. 2. Chang‐Gil Kim. (2009). The Impact of Climate Change on the Agricultural Sector, Korea Rural Economic Institute.

3. Chang-Gil and et al. (2009). Impacts and Countermeasures of Climate Change in Korean Agriculture (in Korean), Research Report No. 593. Korea Rural Economic Institute. 4. Department of Agriculture and Rural Development of Quang Binh Province (2016), Agriculture and Rural Development Plan for 2016 - 2020. 5. Department of Agriculture and Rural Development of Quang Binh Province (2016), Synthesis of Indicators on the Results of Agricultural Production and Rural Development in 2011-2015, the 5-year plan 2016 - 2020. 6. Mackenzie, Catherine and Mather, Robert (ICEM) and et al. (2016). Quang Binh Provincial Level Vulnerability Assessment for Ecosystem-based Adaptation, Institute of Strategy and Policy on Natural Resources and Environment 7. Nguyen Thi Quynh Hoa. (2013). Studying the Effects of Climate Change on Agricultural Production in the Coastal Plain of Quang Binh Province, Master's thesis, Hue University’s College of Education. 8. Rosenzweig, C., and D. Liverman. (1992). Predicted Effects of Climate Change on Agriculture: A Comparison of Temperate and Tropical Regions. In Global Climate Change: Implications, Challenges, and Mitigation Measures, ed. S. K. Majumdar, 342- 61. PA: The Pennsylvania Academy of Sciences. 9. Tran Dinh Hiep. (2015). Impacts of Climate Change and Response in Agricultural Production in Quang Binh Province, Journal of Science and Technology Information Quang Binh No 3. 10. United Nations. (1992). United Nations Framework Convention on Climate Change (UNFCCC). 11. Viet Nam Administration of Aeas and Islands. (2014). Climate Change and Adaptation Mitigate Solutions and Mitigate the Effects of Climate Change on Coastal Areas, Viet Nam Publishing House of Natural Resources, Environment and Cartography. 12. World Meteorological Organization. (2019). IPCC Climate Change and Land Report Marks Critical Contribution to Global Effort. 13. Quang Binh General Statistics Office. [Online]. Available at: www.cucthongke.quangbinh.gov.vn.

Climate Change and Sustainable Agriculture Development in Mekong Delta

Tran Le Vinh1, Nguyen Thi Mai Hanh2 1,2Department of Agriculture and Food Technology, Tien Giang University

Abstract Among the partner countries of the “The New Southbound Policy”, Vietnam is the first choice of Taiwanese businesses when investing in Southeast Asia because Vietnam has a stable economic development, a large market and diverse consumer demand. The deepening of agricultural cooperation and the increasing openness of agricultural trade and investment, bilateral agricultural cooperation will have broader prospects. However, as many countries in the world, climate change has become a prominent factor to the agricultural productivity development in the world. Vietnam is on the list of 5 countries in the globe most seriously affected by this bad situation and the current condition of climate change is complicated. The Mekong Delta is considered one of the world's three most vulnerable deltas. The Mekong Delta region is regarded as Vietnam’s primary agricultural region, which makes a significant contribution to whole agricultural output. In the dry season 2019-2020, the total area of fruit trees and rice in the Mekong Delta are affected by drought and salinity, equaling 39.1% of the total area of fruit trees and 2,7% of the total area of rice. Adaptation measures and climate smart agriculture help Mekong Delta increase resilience to climate change. This paper focuses the adverse impacts of climatic changes on the crop production, some measures of sustainable agricultural production that is adapted to climate change in the Mekong Delta. Keywords: Climate change, climate smart agriculture, crop production, sustainable agriculture.

1. Introduction Vietnam is endowed with a favourable climate and soil conditions for the production of a variety of crops all the year round. The rich genetic diversity, the richness in ecosystem diversity have been the major of advantage. Agriculture is the backbone of the country and is synonymous to the food security of the country. Pressure for increased crop production is triggered by the rapid population growth and it is the most important challenge. In the last 10 years (2009-2019), the GDP growth rate of the entire agriculture sector reached 2.61%/year, the production value growth rate reached 3.64%, making a significant contribution to the GDP growth of the whole industry country and employ 40% workforce of the country. For these reasons, the government has put topmost priority to the agriculture sector. Climate change accelerated the intensity and frequency of occurrences of salinity, storms, drought, irregular rainfall, high temperature, flash floods, etc. that resulted from global warming that is directly and indirectly related to crop production. Ensuring food security for all is one the major challenges that Vietnam faces today. Despite significant achievement in food grain production and food availability, food security at national, Vietnam's agriculture is facing difficulties and challenges. Sustainable agricultural production in the context of climate change is an inevitable requirement. Sustainable agriculture is designed with the intention of preserving the environment, helping maintain soil quality, reducing erosion, and preserving water. Sustainable agriculture is agricultural production that is economically viable and does not degrade the environment over the long run. The priorities of different countries and stakeholders

are to achieve more efficient, effective, and equitable food systems that address challenges in environmental, social, and economic dimensions across productive landscapes. The concept of climate-smart agriculture is to improve the integration of agricultural development and climate responsiveness. It aims to achieve food security and broader development goals under a changing climate and increasing food demands. Climate smart agriculture initiatives sustainably increase productivity, enhance resilience, and reduce net greenhouse gas emissions, and require planning to address trade-offs and synergies between the three pillars of productivity, adaptation, and mitigation. Climate smart agriculture technologies and practices present opportunities for addressing climate change challenges, and for economic growth and development of the agricultural sector (Ninh et al., 2017). This paper aims to provide background information for adverse impacts of climatic changes on the crop production, some measures of sustainable agricultural production that is adapted to climate change in the Mekong Delta. 2. Methodology The statistical and retrospective documentary methods are used on this research to synthesize similar studies in the world and in Vietnam. The method of comparison and analysis are used to point out the difference between climate smart agriculture in the Mekong Delta and climate smart agriculture in other countries in the world. 3. Results 3.1. Possible impacts of climate change on agriculture 3.1.1. Impact of climate change on rice cultivation Agriculture is the most vulnerable sector as its productivity totally depends on climatic factors like temperature, rainfall, light intensity, radiation and sunshine duration, which are predicted to be erratic. Incidences of floods, droughts, high temperature, etc., are predicted to be more frequent and intense. Salinity could be more acute problem in future due to sea level rise. Every crop has a temperature range for their vegetative and reproductive growth. When temperature falls below the range or exceeded the upper limit then crop production faces onstraints. Rice, one of the most important staple crops, feeds more than one half of the world’s population. In the world, Vietnam is one of the largest exporters of rice with the majority of production occurring in the tropical, low-lying Mekong Delta. Rice is the staple for a vast majority of the population in the Mekong Delta and has been so for thousands of years. It is likely to remain the staple for many years to come for reasons including tradition, land suitability, staple food and marketability. Most plants cannot stand waterlogging and inundation. Rice, on the other hand, is a semi-aquatic plant, the shoots of which possess aerenchyma cells that transport oxygen from the leaves to the roots, allowing rice to grow under waterlogged soil conditions (Netbitt, 2005). The Mekong Delta accounted for 60% of the total rice production of the whole country in 2017, and 52% of the total planted area. The rice produced in this region also accounts for 90% of the rice exported from Vietnam (Tivet and Boulakia, 2017). Thus, the Mekong Delta also occupies an important position in terms of the international rice market and hence global food security. Rice production could be impacted by several factors including warming and water availability, and in Vietnam’s deltaic regions in which much of the agricultural land lies 2 meters below sea level, by the risk of salinity intrusion and inundation (which impact the area considered suitable for rice). Warming, pest incidence, and other factors are expected to impact rice yields. The national level rice yields would be 4.3 percent lower over the 2016–2045 period than would have been the case in the absence of climate change (World bank, 2016). It can be concluded

that they become the most prerequisite for intensification and increasing crops in this region. However, due to being as much dependent as on the climate condition, the agricultural potentiality is susceptible to yield losses from rising temperatures, saltwater intrusion, and land use change as urban expansion replaces productive farmland. In specific, the changes of climate cause decline agricultural productivity and compound the risk of food insecurity in Vietnam and in the world generally. Particularly, cultivated rice is an important model because this one feeds more people than any other staple food item. In terms of food security problems, people around the world have depended on the rice's productive potential in the Mekong Delta clearly. Despite these facts, there has been little opportunities for local farmers to defeat this challenge and how this area will respond to future climate scenarios even though it faces acute threats from climate change. The rice area from 2016 to 2020 has decreased markedly. The cause is because of drought, salinity and plant restructuring (Figure 1). Figure 1: Rice area in Mekong Delta

Source: GSO Vietnam, 2019 In the Winter-Spring crop season 2019-2020, the total area of rice in the Mekong Delta is affected by drought and salinity about 41,900 hectares, equaling 2.7% of the total area of the whole region, such as, Ca Mau (27,200 hectares), Ben Tre (5,104 hectares), Tra Vinh (624 hectares), Kien Giang (172 hectares), Soc Trang (1,000 hectares) (MARD, 2020). 3.1.1. Impact of climate change on fruit cultivation As in many other countries in the world, Vietnamese agriculture has been remaining ahead of the race against climate change. Growing fruit is susceptible to yield losses from rising temperatures, sea level rise. More frequent and prolonged droughts, fluctuating rainfall patterns and relative sea level rise have already begun to alter the hydrological regime. Rainfall and sea level rise models suggest that this alteration will become more severe. Furthermore, shortages of freshwater are likely to be further accelerated by the increasing impacts of upstream hydropower dams reducing freshwater flows reaching. In addition, this region has a tropical monsoon climate, so seasonal rainfall patterns form distinct dry and rainy seasons. To be more specific, dry seasons are becoming hotter and dryer; thereby, reducing freshwater surface flows. During the dry season when freshwater supply reduces, the East Sea tidal differences, often accelerated by strong east winds, interfere with the water supply. This aggravates freshwater shortage and is damaging crops that are unable to withstand high levels of salinity. Sea level is expected to rise between 5cm and 77cm at the end of the 21st century.

Fruit production has been increasingly playing an essential role in agricultural production in Vietnam. In 2016, the area of fruit trees in Vietnam reached 848 thousand hectares with an estimated productivity of over 8 million tons of fruit. Major fruit trees have been cultivated under large areas including banana, citrus, longan, mango, dragon fruit, pineapple, durian and rambutan. In order to adapt to climate change, the Vietnamese government is making changes in its investment policies for agricultural productivity. The nation is also concentrating on investing in breeding and selection of fruit tree varieties that are tolerant of drought, resistant to major diseases, and have salt-tolerant rootstocks. The breeders have successfully selected some fruit varieties/cultivars of good salinity tolerance used for citrus production (Nguyen Quoc Hung and Vo Huu Thoai, 2017). In the South, provinces along the Mekong River Delta are the main tropical fruit producers of the country with an area of approximately 300 thousand hectares that contributes to 36.5% of the national total fruit production. The source of fruit trees in the Mekong Delta is very diverse. Besides the varieties with high nutritional value for humans, there are many wild and rare genetic resources which are able to tolerate the adverse environmental conditions or are resistant to insect pests and diseases, valuable in the breeding of new varieties. The Mekong Delta has many kinds of special fruit trees which offer competitive profits in the domestic market and export such as Cat Hoa Loc mango, Lo Ren Vinh Kim star apple, Ngu Hiep durian, Cho Gao dragon fruit, Tan Phu Dong soursop, etc. In particular, Tien Giang was dubbed the Fruit Kingdom of the Mekong Delta in which has been the largest fruit tree area in the country, with more than 72,000 hectares, rate was 8% nationwide, accounted for 25% of the fruit area of the Mekong Delta. Vietnam is one of the countries that have suffered most from the effects of climate change, such as great impacts on agricultural production in Vietnam. In the provinces along the Mekong River Delta, salinity intrusion is increasing in terms of both land area and severity. More than 10,000 hectares of fruit trees have been salinated to various degrees. In the dry season 2019- 2020, the total area of fruit trees in the Mekong Delta is affected by drought and salinity about 130,000 hectares, equaling 39.1% of the total area of fruit trees of the whole region, such as Tien Giang (28,360 hectares), Ben Tre (12,350 hectares), Long An (12,900 hectares), Tra Vinh (12,350 hectares), Vinh Long (8,580 hectares), Soc Trang (13,650 hectares), etc. The drought and salinity were severe and prolonged in March 2020. The Mekong River Delta has 80.6 thousand hectares of damaged fruit area due to saline intrusion (about 23% of the total area of fruit trees in the whole region). The mango, banana, dragon fruit, pineapple, citrus, longan, rambutan, durian, jackfruit... have been seriously deprived of water. 3.1.3. Impacts of climate change on animal husbandry Global warming and the associated increase in extreme weather manifestations such as typhoons, floods, storm-induced high waters, violent winds and downpours will greatly threaten the animals’ life cycles. Climate change also raises the risk of epidemic breakouts. Reductions in feed sources will affect livestock growth and reproduction. Livestock breeds will have a hard time adapting to new, warmer conditions (FAO, 2011). According to General Statistics Office, the production of pigs and buffalos decreased rapidly in period 2016 to 2020. The Mekong Delta has been severely affected by several outbreaks of African Swine Fever in 2019 and early 2020. Many households have to destroy their pigs. Besites, in order to reduce the risk of saline intrusion, some areas have converted inefficient arable land to grass for cow, causes a substantial increase in cow production (Table 1).

Table 1: Cattle and poultry population in the Mekong Delta (thousand heads) Year 2016 2017 2018 2019 Pig 3.803 3.504,9 3.456,4 1.685,9 Buffalo 31,4 28,8 26,2 23,0 Cow 711,9 726,8 748,4 849,6 Poultry 64.646 66.094 70.196 82.505 Source: GSO Vietnam, 2019 Most of the livestock owners in the country perceive there is a climate change impacts on Livestock production and productivity. The major effects of climate change on livestock production include feed shortage, shortage of water, livestock genetic resources loss, reduced productivity, and decreased mature weight and/or longer time to reach mature weight in their order of importance. Higher temperatures resulting from climate change may increase the rate of development of certain pathogens or parasites that have one or more life cycle stages outside their animal host. Furthermore, the spatial distribution and availability of pasture and water are highly dependent on the pattern and availability of rainfall. Shortage of feed and water contribute to reduced productivity and reproductive performance of livestock. This includes slow growth rate of animals, loss of body condition, reduced milk production and poor reproductive performance in mature animals. Bush encroachment as well as population pressure lead to diminishing availability of good pasture and hence to a decline in the total number of animals. Different adaptation options are followed by Livestock owners, such as Conservation of feed, out-migration of some household members to earn additional income, destocking, settlement and intensification of livestock production, undertaking supplementary income generating activities and awareness creation on the factors affecting climate change (Solomon and Firew, 2018). The impacts of climate change on animal husbandry in the Mekong Delta is illustrated below: Figure 2: The impacts of climate change on animal husbandry

Source: Summarized by authors

3.2. Developing sustainable agriculture with climate change adaptation 3.2.1. Short-term measures Select crops suited to climate change (short-term crops with short maturity, crops with enhanced resistance to harsh conditions of drought, high acidity, high salinity, pests and diseases, etc..): OmonRice has researched and successfully selected many salt-resistant cultivar of rice, such as OM9921, OM9916, OM5464, OM9579, ect. Adjust the growing seasons and sowing times to meet the changing climate conditions. Adopt new, more suitable cultivation practices (e.g: planting distances, fertilizer application, weed control, plowing, post-harvest straw mulching, pest control, crop rotation, etc...): The Mekong Delta is facing drought and salinity. The sowing schedule of the winter-spring crop of 2019 2020 is 1 month earlier in order to avoid the adverse effects of salinity. Research results of Qi et al (2017) showed that although delayed sowing shortened the duration of potato growth period, non-significant thermal time differences after flowering stage was found among the treatments. However, greater precipitation was shown in three intermediate treatments. Potato yield was significantly affected by sowing dates, and intermediate sowing dates showed greater yield compared to the earlier or later sowing dates. Delayed sowing dates significantly improved water use efficiency (WUE) in a drier year. As for a normal year, earlier sowing dates promoted WUE because of less water consumption, but these increases came at the cost of reducing yields. Adjusting sowing date affected duration, thermal time, and precipitation over potato growth period, and the optimal sowing date exhibited higher yield by obtaining greater precipitation, which could improve potato adaption to climate change. 3.2.2. Long-term measures Crossbreed to create new species more adapted to the changing climate with increased tolerance for arid conditions, high salinity, flooding and pests. Redistribute regional crop and livestock production to better suit changing climate conditions: Rice shrimp farming is a typical farming system of coastal provinces of the Mekong Delta. The areas used for rice-shrimp farming have traditionally been used for wet season agricultural crops, and do not impinge on mangroves. The shrimp farmed in this system are stocked at low densities and feed inputs to the ponds are low. The freshwater rice crop provides a buffer between the brackish water shrimp crops. The inundation of saline water during the dry season does not appear to lead to a long-term build up of salts in the soil, thus rice yield performance is not compromised in the rice-shrimp system. These characteristics of the rice-shrimp system avoid many of the negative impacts that can results from intensive shrimp farming. Thus, in common with other extensive systems, the rice-shrimp system appears to one of the more ecologically sustainable approaches to shrimp farming (Brennan et al., 2002). 3.2.3. Climate-smart agriculture Many projects and programs which have been implemented contain adaptation and mitigation solutions linked to increased farmers’ productivity and incomes such as models of ‘One Must, Five (six) Reductions”; ‘Three Reductions, Three Gains’, Alternate Wetting and Drying (AWD); VnSAT project and linked to sustainable development. Model “Three Reductions, Three Gains” for rice production (3R-3G): since 2005 when MARD issued the acknowledgement of 3R-3G as a method to raise economic efficiency of rice production in the Mekong River Delta, 3R-3G model has been applied nationwide with a higher concentration in Southern provinces (of about 770,000 – 800,000 ha equivalent to 45-48% total

3R-3G area applied in the country). According to research of Chi (2008), This technology adaptation depended on the ecosystem (irrigation source, fresh or saline water area, inland fields or near to the coastal area) To increase the adoption of three reductions and three gains, farmers should be increased their knowledge about the benefit and economic efficiency of this technology. Thus, mass media should reach all farmers, especially in the remote areas. Enhancing capacity on the extension and management of the extension staff, increasing fund for extension activities, and merging the small farms are needed for wider adoption. Model “One Must, Five Reductions” for rice production (1M5R): this model is developed based on the success of 3R-3G campaign. Additional studies were conducted to prove that reduced inputs (water, energy, seeds, fertilizers, and pesticides) and post-harvest loss without impacting yield could be realized by extending 3R-3G. This method encourages use of certified seeds (which is considered as “a must”). Five reductions refer to reducing use of water, energy, post- harvest loss, fertilizers, and pesticides. 1M-5R model has been replicated in provinces of An Giang, Can Tho, Soc Trang, Bac Lieu, Tra Vinh. Alternate Wetting and Drying (AWD) has also been practiced in different rice producing provinces of Mekong Delta, such as Dong Thap, An Giang, Kien Giang, Can Tho, … According to research of Yamaguchi et al (2016) showed that with AWD, rice paddies in An Giang province are intermittently irrigated, except during the rooting and flowering stages, reducing water use by 15%-40%. AWD is a management practice in irrigated lowland rice that saves water and reduces greenhouse gas (GHG) emissions while maintaining yields... The timing, frequency, and extent of the wetting and drying cycles depend on rice growth stage. After holding the initial flood for 3 weeks, it is common to refrain from applying a flood for five or more days between wet-dry cycles when using AWD. According to research of Meryl and Sander (2014), AWD can reduce water use by up to 30%. It can help farmers cope with water scarcity. The Vietnam Sustainable Agricultural Transformation (VnSAT): The overall goal of the VnSAT project is to contribute to the implementation of the agricultural sector restructuring plan through strengthening the institutional capacity of the sector; Renovation of sustainable farming practices and enhancement of value chains for rice in the Mekong Delta. Economic objective: With 200.000ha of rice production of 140,000 households (HH)s applying advanced technology, farmers' profit per hectare may increase by 30% equivalent to 40 - 60 million per year. Social objectives: Approximately 140,000 HHs in the Mekong Delta access to sustainable farming practices and linkages in the value chain from production to consumption with enterprises, cooperatives and farmers increase income by about 30%. Environmental objectives: Minimize negative impacts on the environment by reducing irrigated water, fertilizer and pesticide used in cultivation (Department of agriculture and rural development, 2019). 4. Conclusions Climate change is already having an impact on agriculture and food security as a result of increased prevalence of extreme events and increased unpredictability of weather patterns. Agriculture must transform itself if it is to feed a growing global population and provide the basis for economic growth and poverty reduction. Climate change will make this task more difficult under a business-as-usual scenario, due to adverse impacts on agriculture. To achieve food security and agricultural development goals, adaptation to climate change and lower emission intensities per output will be necessary. Integrated crop-livestock systems, which enhance the natural biological processes above and below the ground, represent a synergistic combination that: (a) reduces erosion; (b) increases crop yields, soil biological activity and

nutrient recycling; (c) intensifies land use, improving profits; and (d) can therefore help reduce poverty and malnutrition and strengthen environmental sustainability. References 1. Brennan, D., N. Preston, H. Clayton and T.T. Be. (2002). An Evaluation of Rice-Shrimp Farming Systems in the Mekong Delta. Report prepared under the World Bank, NACA, WWF and FAO Consortium Program on Shrimp Farming and the Environment. Work in Progress for Public Discussion. Published by the Consortium. 10 pages. 2. Chi Ngoc Thi Truong. (2008). Factors Affecting Technology Adoption among Rice Farmers in the Mekong Delta through the Lens of the Local Authorial Managers: An Analysis of Qualitative Data. Omonrice 16: 107-112 (2008). 3. Department of Agriculture and Rural Development. (2019). Project: Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods (md-icrsl) subproject: Improving the Ability of Flood Drainage and Developing Stable Livelihoods, Climate Change Adaptation in the plain of the Northern districts of Dong Thap Province. Environmental and Social Impact Assessment Report. Page 16. 4. FAO (2011). Strengthening Capacities to Enhance Coordinated and Integrated Disaster Risk Reduction Actions and Adaptation to Climate Change in Agriculture in the Northern Mountain Regions of Viet Nam. 10 p. 5. Faroque M.A.A., M.A. Kashem and S.E. Bilkis. (2011). Sustainable Agriculture: A Challenge in Bangladesh. Int. J. Agril. Res. Innov. & Tech. 1 (1&2): 1-8, December 2011 6. Hung Q. Nguyen and Vo Huu Thoai. (2017). Ensuring a Sustainable Tropical Fruit Industry in the midst of Climate Change: The Vietnam Story. International Symposium on Tropical Fruits. Page 38-42. 7. Meryl Richards, B. Ole Sander. (2014). Alternate Wetting and Drying in Irrigated Rice. Implementation Guidance for Policymakers and Investors. 6 pages. 8. Ministry of Agriculture and Rural Development (2020). Bao cao tinh hinh han han va xam nhap man khu vuc mien Nam 2019-2020. [Online]. Available at: http://phongchongthientai.mard.gov.vn/Pages/bao-cao-tong-hop-tinh-hinh-han-han- xam-nhap-man-khu-vuc-mien-nam-2019--2020.aspx. Last updated: 02/03/2020 9. Nesbitt, H.J., (2005). Water Used for Agriculture in the Lower Mekong Basin, MRC Discussion Paper. Mekong River Commission, Vientiane, Lao PDR. 61pp. 10. Ninh TN Nguyen., Roehrig, F., Grosjean, G., Tran, DN., Vu, TM. 2017. Climate Smart Agriculture in Vietnam. CSA Country Profiles for Asia Series. International Center for Tropical Agriculture (CIAT); The Food and Agriculture Organization. Hanoi, Vietnam. 28 p. 11. Qi Hu, Ning Yang, Feifei Pan, Xuebiao Pan Xiaoxiao Wang and Pengyu Yang. (2017). Adjusting Sowing Dates Improved Potato Adaptation to Climate Change in Semiarid Region, China. Sustainability 2017, 9, 615; doi:10.3390/su9040615. 12. Solomon T. A and Firew T. A, (2018). Impacts of climate change on Livestock production and productivity and different adaptation strategies in Ethiopia. Journal of Applied and Advanced Research 3 (3): 53. 13. Tivet, F., Boulakia, S. (2017). Climate Smart Rice Cropping systems in Vietnam. State of knowledge and prospects. Montpellier, France: CIRAD, 41 p. 14. World Bank. (2016). Transforming Vietnamese Agriculture: Gaining More from Less. Vietnam Development Report. Washington, D.C. World Bank.

Climate Change and Sustainable Land Management Issues in Vietnam

Dr. Pham Phuong Nam1, Assoc. Prof. Dr. Phan Thi Thanh Huyen2 1,2 Faculty of Land Management, Vietnam University of Agriculture 1Email: [email protected]

Abstract The study aims to identify the negative impacts of climate change on land management in Vietnam and propose some sustainable land management solutions to climate change. The study collects data from articles, research results, books, legal documents related to climate change and land management. The study uses methods of comparing, analyzing, and assessing the impacts of climate change on land management. Saline intrusion causes the cultivated land to decrease, from which the coefficient of land use can be reduced from 3-4 times/year to 1-1.5 times/year. Natural disasters, storms and floods will increase the erosion, washout, erosion of riverbanks, coastlines, and sedimentation, leading to serious impacts on land resources. The warmer temperature makes the evaporation process faster, the dehydrated soil becomes arid, the transformation in the soil is difficult to happen. Proposed solutions include improving policies and laws related to land management; formulating, adjusting and supplementing land management- related planning; building and operating a modern land management information system. Keywords: Adaptation, climate change, sustainable land management, Vietnam

1. Introduction Climate change is one of the biggest threats to mankind with a growing impact on socio- economic development, including global land management. Vietnam is one of the countries most affected by climate change. Over the past 50 years, the annual average temperature of the country has increased by about 0.62°C; the coastal water level in the period 1993-2014 has increased by about 3.34 mm/year; Natural disasters increase in both intensity and frequency. Climate change is an existing threat to the country's goals of sustainable development and poverty reduction. Losses and damages will continue to increase, requiring urgent action to promptly mitigate damages and strengthen state governance on climate change (Prime Minister, 2020). To date, there are different studies on climate change and sustainable land management. The study of Mai, H., N. et al. (2015) focused on management and use of agricultural land to adapt to sea level rise. The study of Nguyen, H., Q. (2015) aimed to propose solutions to agricultural restructuring to adapt to climate change. Research by Pham, P., N. (2016) initially proposed a number of climate change adaptation measures in land management and use. Weith, T. et al. (2010) and Zerihun, N. et al. (2017) focused on researching sustainable land management solutions. Studies to date have not yet clarified the impact of climate change on sustainable land management and have not yet come up with overall solutions to address the negative impacts of climate change on sustainable land management. Therefore, research to comprehensively assess the impact of climate change on land management as a basis for proposing sustainable land management solutions is necessary and meaningful, especially in specific conditions of Vietnam.

2. Methodology The study focuses on assessing the impact of climate change on land management in Vietnam and based on climate change forecasting to propose sustainable land management solutions. The study also uses data published in scientific papers, state documents and scientific research topics related to climate change and sustainable land management. The study uses the method of comparing, analyzing, and assessing the impacts of climate change on socio-economic, environmental and land management in Vietnam. 3. Results and Discussions 3.1. Overview of climate change and land management * Climate Change Climate change with the full name "Earth climate change" is the change of the climate system, including the present and future atmosphere, hydrosphere, and lithosphere by natural causes. natural and artificial (Zerihun et al., 2017). The main causes of the earth's climate change are increased activities that generate greenhouse gas emissions, over-exploitation of sinks and reservoirs of greenhouse gases such as biomass, forests, other terrestrial, coastal and marine ecosystems (Institute of Meteorology, Hydrology and Environment, 2011). Manifestations of climate change on earth include warming of the atmosphere and earth in general; changes in the composition and quality of the atmosphere are harmful to the habitats of humans and all living things on earth; sea level rise caused by thawing leads to inundation of lowlands and small islands in the sea; movement of climatic zones that persist for thousands of years across different regions of the earth, leading to threats to the life of organisms, ecosystems and human activities; changes in activity intensity of atmospheric circulation, natural water cycle and other bio-geochemical cycles; changes in the biological productivity of ecosystems, the quality and composition of the hydrosphere, biosphere, geosphere (Pham, P., N., 2016; Nguyen, H., Q., 2015). The economic losses caused by the impacts of climate change plus the cost of repairing the damage reduce the economic growth of many countries and on a global scale, including Vietnam (Mai, H. , N. et al., 2015; Nguyen, Q., N. et al., 2016). Research results of the United Nations recently announced that by 2030 the global economy could lose more than $2,000 billion due to climate change and global warming. Oxfam NGO data show that developing economies could lose up to $1,700 billion a year by 2050 (Le, M.N., 2019). To adapt to climate change, countries around the world met in New York on 9 May 1992 and adopted the United Nations Framework Convention on Climate Change. This Convention sets out the goal of stabilizing atmospheric concentrations at levels that would prevent human intervention from the climate system. Levels must be reached within a timeframe sufficient for ecosystems to naturally adapt to climate change, ensuring food production is not threatened and enabling economic development to progress. develop in a sustainable way. Recognizing the seriousness of climate change, countries around the world have approved the Paris Agreement on climate change at the 21st Conference of the Parties to the Climate Convention in Paris in 2015 and took effect in 2016. Under Article 7 of the Paris Agreement, the Parties to the Agreement are responsible for developing and implementing a National Climate Change Adaptation Plan (Prime Minister, 2020). * Sustainable land management The World Bank defines sustainable land management as a process in a charged environment between environmental protection and the guarantee claim of ecosystem services on the one

hand. On the other hand, it is about productivity of agriculture and forestry with respect to demographic growth and increasing pressure in land use. Sustainable land management is defined as a knowledge-based procedure that helps integrate land, water, biodiversity, and environmental management (including input and output externalities) to meet rising food and fiber demands while sustaining ecosystem services and livelihoods. Sustainable land management is necessary to meet the requirements of a growing population. Improper land management can lead to land degradation and a significant reduction in the productive and service (biodiversity niches, hydrology, carbon sequestration) functions of watersheds and landscapes (World Bank, 2006). The United Nations Economic Commission for Europe applies the term in a much wider context. Besides agriculture and forestry, they include the mineral extraction sector, property and estate management (Lucy & Katherine, 2018). Land management is the process by which the resources of land are put to good effect. It covers all activities concerned with the management of land as a resource both from an environmental and from an economic perspective. It can include farming, mineral extraction, property and estate management, and the physical planning of towns and the countryside (Seppelt et al., 2011; Phastraporn et al., 2020). In the course of national politics and programmes, few European states use the terminology "sustainable land management". Here Australia and New Zealand are to be mentioned, as both countries have agreed on sustainable land management with respect to climate change as part of their government programmes (UN Economic Commission for Europe, 1996). In the European context, the definition of the European Network for Land Use Management for Sustainable European Cities may be used as a reference (Didier, 2008). It emphasizes the inter- and transdisciplinary cooperation on sustainable land management: As management is the human activity meaning the action of people working together in the aim to accomplish desired goals, land use management is a process of managing use and development of land, in which spatial, sector-oriented and temporary aspects of urban policy are coordinated. Resources of land are used for different purposes, which may produce conflicts and competitions, and land use management has to see those purposes in an integrated way. Therefore, land management covers the debate about norms and visions driving the policy- making, sector-based planning both in the strategic and more operative time spans, spatial integration of sectoral issues, decision-making, budgeting, implementation of plans and decisions and the monitoring of results and evaluation of impacts (Weith et al., 2010). 3.2. Situation of land management under the impact of climate change in Vietnam * Situation of climate change in Vietnam Climate change and extreme and unusual natural disasters are no longer a threat, but already exist and have a great impact on socio-economic and environmental conditions, including land. In 2018, natural disasters occurred in Vietnam consecutively in the regions of the country with 13 storms and tropical depressions, 212 thunderstorms and thunderstorms; 14 flash floods, landslides; 9 strong winds at sea; 4 severe cold spells, damaging cold; 11 heat waves, 23 cold air waves; 30 large-scale heavy rains; caused economic damage estimated at 20,000 billion VND, causing 218 deaths and disappearances. It is forecasted that by 2100, the Mekong Delta region is at risk of being flooded with 89,473 hectares if the sea level rises by 100 cm (Nhat, L. M., 2019). It is estimated that by the end of the 21st century, compared to the 1980-1999 average, the average temperature in Vietnam may increase by 2.3oC, the annual rainfall will increase by about 5% and the sea level may rise 75cm (Tran, T., D. & Vu, T., T., H., 2012).

Floods and rising sea levels will lead to the loss of arable land in agriculture. If the sea level rises by 1m without effective preventive measures, about 40% of the Mekong Delta, 11% of the Red River Delta and 3% of the other provinces in the region and coastal areas will be flooded. Flooding will make nearly 50% of agricultural land in the Mekong Delta submerged and no longer cultivated. According to the analysis of the World Resources Institute on the impact of floods on GDP, Vietnam ranked 4th out of 164 countries surveyed about the serious harm of flooding to the whole economy, damages 2.3% of Vietnam's GDP each year... According to research results of the Agricultural Environment Institute, climate change reduces the yield of some key crops. Specifically, the yield of spring paddy will decrease by 0.41 tons/ha in 2030 and 0.72 tons in 2050 (Nguyen, Q., N., & Nguyen, V., T., 2016). In 2016, drought and saline intrusion affected 527.7 thousand hectares of rice damaged, of which about 44% of the area was completely damaged. The effects of climate change also affect livestock, forestry, biodiversity, forest fires, wetland ecosystems, aquaculture..., so for agricultural production, it is necessary to have a new and more comprehensive viewpoint placed in the context of agricultural production affected by climate change (Le, M., N., 2019). Climate change also affects transportation activities, according to the study of the climate change scenario, if the sea level rises by 1m, there are about 9% of the national highways, 12% of the provincial road system, 4% of the railway system will be affected, with the largest concentration in the Mekong Delta, accounting for 28% of the national highways and 27% of the national roads, followed by the central coastal provinces. and heap in the Red River. Climate change affects urban development, industrial zones and housing, the impact level depends on each region, locality and location according to the distribution topography. The overall study shows that the coastal areas are mainly affected by storms, the mountainous areas are affected by flash floods, cyclones, landslides, the midlands and deltas are mainly flooded, cyclones, hail (Mai, H., N. et al., 2015). Studies according to the sea level rise scenario show that, if the sea level rises by 1m, most coastal industrial zones will be flooded, the lowest level is over 10% of the area, the highest level is about 67% of the area. In addition to the negative effects of climate change, we also have to look more comprehensively about the positive effects, such as agricultural production, on rainfall, in addition to the negative effects. There will also be areas of positive impact. In agricultural production, the structural change of crops, animals and crops due to climate change needs to be carefully analyzed so that the positive and negative aspects of economic efficiency are used as the primary criterion version for evaluation (Tran, T., D. & Vu, T., H., T., 2012). * Impacts of climate change on land resources The saline intrusion in the coastal area has narrowed the area of agricultural land. A significant portion of arable land in the Red River Delta and the Mekong River Delta is salty because these two deltas are both lowland areas. Saline intrusion causes the cultivated land to decrease, from which the coefficient of land use can be reduced from 3-4 times/year to 1-1.5 times/year. If the sea level rises by 1 meter, about 1.77 million hectares of land will be salty, accounting for 45% of the land in the Mekong Delta and it is estimated that there are about 85% of people in the Mekong Delta. need agricultural support. Agriculture is very vulnerable to natural disasters due to its high dependence on climate, natural resources and global trade. Climate change increases natural disasters and increases these risks. But the risk is also partly due to poor planning, pressure on land and water resources, degradation of ecosystems, migration, and increased social stress and vulnerability (Mai, H., N. et al., 2015).

Improper farming increases the amount of CO2, reduces the organic source of the soil, increases erosion, and increases nitrogen loss in the soil. The work of forecasting and early warning is still limited, leading to timely response and adaptation to the agricultural sector in general as well as difficult crops... There have been many solutions designed to help the agricultural sector. However, in order for these solutions to really promote their impacts, it is necessary to have a deeper identification of the subjects and coins. Firstly, the sustainability of agricultural production to the impact of climate change and sea level rise; agricultural sectors and farmers are the first to be vulnerable to these challenges, a risk that has been in an increasingly extreme trend in recent years. The value chain of agricultural products in production is still loose and small in scale, leading to low competitiveness, productivity and economic efficiency. The fluctuations of the export market, leading to market risks. Under the impact of climate change, especially sea level rise, the loss of residence for residents and the most fertile land for agricultural production will be a big challenge for the agricultural sector. Natural disasters, storms and floods will increase the erosion, washout, erosion of riverbanks, coastlines, and sedimentation, leading to serious impacts on land resources. Water shortages and droughts will lead to desertification, especially in the central provinces. The number of storms is more intense, the hurricane season ends later and many storms have unusual orbits. After storms, there are usually floods, landslides, flash floods, and tube floods. Soil which is already degraded due to overuse of inorganic fertilizers, the phenomenon of drought, washout due to increased rain will lead to more serious soil degradation. The warmer temperature makes the evaporation process faster, the dehydrated soil becomes arid, the transformation in the soil is difficult to happen. Acid rain has completely washed away nutrients and microorganisms that exist in the soil. The phenomenon of compounds in the soil releasing ions that can be toxic to the plant. Sea water receding reduces groundwater, drying currents and wetlands. Causes sedimentation, soil displaces wet areas. Bad weather events tend to occur more like: effects of storms, tropical depressions, thunderstorms, saltwater intrusion and drought. From the above phenomena of climate change, it will put considerable pressure on the agricultural production area of the province, which may be narrowed on a large scale, affecting productivity and efficiency. plants and animals, at the same time increases the pressure on the development of neighboring areas (Nguyen, Q., N. & Nguyen, V., T., 2016). 3.3. Solutions to improve the efficiency of land management to adapt to climate change * Completing policies and laws related to land management Complete policies and laws related to climate change adaptive land management. Amend and supplement regulations on climate change adaptive land management in order to use land in the most economical and efficient manner under the impact of extreme conditions. Policy to support people in transforming crop structure to adapt to climate change. Along with that, it is necessary to promulgate the Law on Adaptation to Climate Change as the basis for the activities of production, business, trade and services to adapt to climate change, to limit negative impacts on the environment. Encouraging people to convert agricultural land in the process of land accumulation and consolidation to expand production, reduce costs and improve production efficiency. Especially, contributing capital with land use rights, leasing land use rights or transferring land use rights to expand agricultural and non-agricultural production with high technology application and climate change adaptation and mitigate negative impacts on climate. In addition, there should be policies to attract and encourage investment in clean production, low energy consumption through policies on land finance such as exemption and reduction of land

use fees, land rent, fees and income taxes related to land. The State also needs to promulgate agricultural value chain lending policy. Complete the legal framework to develop a comprehensive supply of new financial services to increase access to credit on a large scale and longer term for farmers, farms, cooperatives and businesses in agriculture and rural areas. At the same time, it is necessary to continue to implement agricultural insurance for key agricultural products of the region, step by step linking insurance and credit in chains. Develop social insurance policies for informal employees. Regarding trade policy, it is necessary to perfect the quarantine apparatus, ensure bio-safety, epidemiological hygiene for import and export goods. Continue to promote the implementation of policies to support agricultural value chain link building. Develop a dispute mediation mechanism in agricultural, forestry and fishery off-take contracts in order to resolve disputes over arising conflicts, proceeding to build a price-sharing mechanism among actors in the price chain. to ensure the interests of all stakeholders and to ensure sustainable development. * Formulating, adjusting and supplementing land management plans Updating new socio-economic development plans, sector plans on the basis of climate change scenarios and assess the impacts of climate change, especially for sectors, vulnerable areas due to the negative impacts of climate change. Promoting the integration of climate change adaptation into planning and strategy systems through the development and issuance of mainstreaming guidelines; assessing the integration of climate change adaptation in the system of strategies and planning; mainstreaming climate change adaptation with disaster risk reduction. Monitoring and evaluation to improve the effectiveness of climate change adaptation, including the issuance of a set of criteria: climate risk assessment; identification of climate change adaptation projects and tasks; evaluate the effectiveness of climate change adaptation activities. On that basis set up and operate monitoring and evaluation system for climate change adaptation activities. * Building and operating a modern land management information system Applying the achievements of the Fourth Industrial Revolution to building a multi-purpose land information system and integrating other information systems from the central to local levels, between branches and fields of reliability, high confidentiality, timely and accurate forecasts of adverse climate events for effective land management measures. Promote adaptation actions that bring co-benefits in ensuring prevention of natural disasters, mitigating risks caused by climate change, and economic, social and environmental efficiency; periodically update climate change scenarios according to reports of the Intergovernmental Panel on Climate Change; build scenarios of impact, loss and damage for Vietnam; establishing and operating national climate change databases and tools to support climate change management and policy making; develop mechanisms, policies, mobilize and allocate financial resources to encourage and attract investment in climate change adaptation. * Applying scientific advances in production and life Research and apply advanced irrigation models, save water, increase the use of organic fertilizers, pesticides, and treat livestock wastes and agricultural by-products in a friendly way. protecting the environment, limiting greenhouse gas emissions... Researching to create varieties of plants and animals with high productivity, good resilience, and adaptation to climatic conditions to increase the value. Development of mixed livestock models such as models of gardens and ponds, models of food and energy production from livestock, models of adaptive farming based on ecology, good husbandry practices, and smart agriculture with a climate, high-tech and closed

breeding. Research and apply science and technology in production and processing. Encouraging services to support farmers in acquiring and applying science and technology, empowering farmers and businesses to participate in the evaluation and ordering of research and extension agencies; Promoting the socialization of agricultural science and technology activities; decentralizing agricultural extension activities to farmers' organizations and businesses. Improving infrastructure of branches and fields; investment, implementation and replication of activities and adaptation models. Investment projects and improvement of natural systems and infrastructure must ensure consistency, inter-region, interdisciplinary, with reasonable focus, focus and roadmap. Creating new crop varieties with high yield, good resilience, adapting to extreme climatic conditions to ensure food security, alleviate poverty, and towards diversifying products for recovery; crop for export in combination with the application of anti-erosion techniques, maintaining the protection of soil moisture and fertility by planting cover crops, cultivating terraced fields, and changing vegetation cover; proactively supply water for crops, implement watering economically and effectively such as digging ponds, spraying water, dripping irrigation, saving energy, irrigation pump, expanding area of self-flowing irrigation, economical irrigation, irrigation high technology. * Changing the structure of plants, animals, and farming methods To change the crop structure on agricultural land in the direction of reducing the area of rice cultivation, increasing the area of drought-tolerant crop land, giving high economic efficiency suitable to the conditions of each locality in association with environmental protection. In other words, the development of agriculture is associated with quality and value-added enhancement, environmental protection, response to climate change... Application of integrated models, models linking cultivation and blanket farming and fisheries, peri-urban agriculture, agroforestry, farming and ecotourism. In particular, the research, development and transfer of new crop varieties (rice, maize, peanuts, soybeans, vegetables, coffee, tea) with high yield and quality, adapting to farming conditions salinity, drought tolerance, alum tolerance), farming regime (flooding, drought) for commodity production under climate smart farming model is focused on maintaining crop productivity... For land areas that are at risk or have been deserted or flooded, there is a need for diversified farming systems, farming techniques, linking intensification of productivity with protection of environmental resources and risk control. due to the negative impacts of climate change. Developing cultivation processes for key crops in each region, ensuring productivity, protecting soil, and being able to adapt to adverse climate change conditions such as drought, inundation, and invasion. Salty encroachment, damaging cold... Change farming methods towards ensuring ecological balance and sustainability, improving soil quality, reducing the area of degraded and degraded land. Apply scientific farming methods on sloping land, prevent leaching and erosion. Prioritizing the use of land that is good for agricultural production, land with low productive capacity or no longer capable of production for non-agricultural purposes. Improving the quality of long-term land use forecast. In particular, it is necessary to improve the legal system, policy on management and conservation of land resources. Must be used in an efficient and very economical manner: Urban land; industrial land; land full of water; forested land; mineral soil; agricultural land, fisheries and protected areas, natural heritage. Perform synchronous measures to prevent soil environmental pollution, especially to control and treat generated wastes; prevent, limit and mitigate consequences of natural disasters. Incentive policies should be strengthened such as allocation of land and forest to households, afforestation and watershed protection, agroforestry production, perennial tree development,

river basin management and land shore. For planted forests on low hills and scattered forests on the plain, it is necessary to study trees of high economic value that can be exported, combined with local demand; conserving and restoring wetlands, in order to effectively use wetlands, protect biodiversity in the region, and at the same time maintain ecological, economic and social functions of these regions. At the same time, to raise public awareness about the rational and economical use of land resources. * Organizing the implementation of land management Raising awareness and knowledge about climate change and natural disasters at all levels of authorities, social organizations, and communities; strengthening capacity, developing female human resources, promoting gender equality in climate change adaptation. Promoting the role of communities in land management adapting to climate change. Strengthening the resilience of communities, economic sectors, and ecosystems through investments in adaptive action, science and technology, and awareness to adapt to climate change. Strengthening international cooperation and fulfill its obligations to participate in the United Nations Framework Convention on Climate Change, including: assisting domestic agencies to build capacity to become recognized for Green Climate Fund, Adaptation Fund and other funds; develop and periodically update a National Report on Climate Change Adaptation for the United Nations Framework Convention on Climate Change. Monitoring and assessing the impact of climate change response activities in the world on Vietnam, identifying solutions to minimize impacts and take advantage of opportunities for socio-economic development. Improving infrastructure to increase the resilience to climate change of sectors and fields. Monitoring and protection of water resources; improving water storage capacity and efficiency in using water in the context of climate change, giving priority to areas prone to drought, water shortage, and adversely affected by saline intrusion. Deploying and expanding agricultural intercropping models suitable to drought and salinity conditions; model of cultivation and husbandry that can adapt to climate change. Implement climate change adaptation activities in the agricultural sector; improve the efficiency of agricultural land use; arrange crops and crops structure in line with comparative advantage and market by region; prevention and control of diseases for plants, animals and aquatic animals; developing and multiplying varieties of plants and animals; increasing effective forms of fishing and aquaculture; improving methods, techniques and improving infrastructure for the fisheries sector. Upgrading and renovating traffic works in areas with high natural disaster risk and vulnerable to climate change. Strengthening resilience capacity of the system of urban infrastructure and concentrated population spots, industrial parks, coastal and island resettlement areas; combating urban flooding in the context of climate change and sea level rise; developing and building safe houses against natural disasters, climate extremes and sea level rise; to apply new technologies and materials capable of adapting to climate change in the construction and urban sectors. Upgrading and improving the infrastructure of industry, energy and commerce, industrial production facilities associated with synchronous implementation of environmental protection measures, appropriate use and exploitation Efficiency of natural resources in areas vulnerable to climate change. Developing the health care and healthcare network to meet the requirements on prevention of epidemics, diseases and new diseases arising from climate change, and ensure sanitary and environmental conditions; implementing solutions to technology and equipment for prevention and treatment of diseases caused by climate change; strengthen the system of early warning and monitoring of climate change impacts on health;

build and replicate models to improve community resilience, climate change adaptation of the health sector and public health. Maintain, conserve and upgrade the system of infrastructure, historical and cultural works to improve resilience to climate change. Improving the resilience of natural ecosystems and biodiversity to the impacts of climate change through strengthening the management of ecosystems and biodiversity; enhance resilience of natural ecosystems and protect and conserve biodiversity from the impacts of climate change and sea level rise. Developing and replicating models of ecosystem-based and community-based climate change adaptation; increase participation of local communities in biodiversity monitoring, conservation and management. Managing and protecting forests and improving forest quality through forest regeneration, restoration and enrichment solutions; Increasing community participation in plantation development to improve livelihoods and employment opportunities in forestry. Disaster risk reduction and damage mitigation, preparedness to respond to disasters and climate extremes increase due to climate change need to synchronously deploy solutions related to capacity building to forecast, early warning of natural disasters and climatic and extreme weather conditions; improving disaster risk management systems to reduce vulnerability and increase preparedness to respond to extreme climate events; implementing timely and effective adaptation measures to minimize damages caused by the short, medium and long term impacts of climate change in the future. Willingness to respond to climate change hazards through strengthening capacities for climate change monitoring, hydro-meteorological monitoring, forecasting, warning, and communicating about natural disasters and climate extremes. Ensuring safety for the system of irrigation works and natural disaster prevention works in order to actively respond to natural disasters tends to increase in both frequency and intensity. Improving the natural disaster risk management system, implementing the work of identifying, zoning and forecasting levels of natural disaster risk; strengthening capacity, managing measures and promoting disaster risk reduction, focusing on community-based disaster management solutions, promoting local knowledge in disaster prevention to minimize vulnerability and increased preparedness to respond to extreme weather and climate events. Minimizing disaster losses under short, medium and long-term climate change-related impacts through timely and effective implementation of disaster prevention measures, focusing on at- risk areas. highly affected by storms, floods, flash floods, inundation and landslides. Preventing riverbank and coastal erosion; coping with drought, increased saline intrusion; solving the problem of losses and damages caused by the impacts of climate change. 4. Conclusion Climate change has a negative impact on the entire socio-economic situation of countries, including land management. Vietnam is among countries most heavily affected by climate change. Saline intrusion causes the cultivated land to decrease, from which the coefficient of land use can be reduced from 3-4 times/year to 1-1.5 times/year. If the sea level rises by 1m, about 1.77 million hectares of land will be salty, accounting for 45% of the land in the Mekong Delta and it is estimated that there are about 85% of people in the Mekong Delta need agricultural support. Improper farming increases the amount of CO2, reduces the organic source of the soil, increases erosion, and increases nitrogen loss in the soil. Natural disasters, storms and floods will increase the erosion, washout, erosion of riverbanks, coastlines, and sedimentation, leading to serious impacts on land resources. The warmer temperature makes the evaporation process faster, the dehydrated soil becomes arid, the transformation in the soil is difficult to happen. Acid rain has completely washed away nutrients and microorganisms that

exist in the soil. For sustainable land management to adapt to climate change, it is necessary to implement solutions such as improving policies and laws related to land management; formulating, adjusting and supplementing land management-related planning; building and operating a modern land management information system; applying scientific advances in production and life; change the structure of crops, animals, and cultivation methods; organizing the implementation of land management. References 1. Didier V. (2008). Land Use Management for Sustainable European Cities, LUMASEC. 2. Institute of Meteorology, Hydrology and Environment (2011). A Guide to Climate Change Impact Assessment and Identification of Adaptation Options, Vietnam Map and Natural Resources Publishing House. 3. Le, M, N. (2019). Adaptive Agriculture to Climate Change, Nhan Dan Weekend. 4. Lucy. E. and Katherine, A. S. (2018). Rethinking Sustainable Land Management Planning: Understanding the Social and Economic Drivers of Farmer Decision-making in Africa, Land Use Policy, December 2018. 5. Mai, H., N., Tran, V., T., Vo, T., C. and Mai, V., T. (2015). Solutions to Managing and Using Agricultural Land to Cope with Climate Change and Sea Level Rise for the South- Central Coast, Journal of Science, Hanoi National University, No. 3/2015. 6. Nguyen, H., Q. (2015). Restructuring the Agricultural Economy to Respond to Climate Change in Vietnam. 7. Nguyen, Q. N. and Nguyen, V. T. (2016). Climate Change and Coping Solutions for the Mekong Delta. http://www.tapchicongsan.org.vn / Home / Viet-nam-on-new-line-new / 2016/38598 / New-year-for-year-and-for-season-for-dong -bang.aspx 16: 4729/4/2016. 8. Pham, P. N. (2016). Solutions for Climate Change Adaptation and Mitigation in Land Use and Management in Vietnam. National Workshop "Managing and Using Land to Respond to Climate Change", September 23, 2016, Faculty of Land Management, Vietnam Academy of Agriculture. 9. Phastraporn, S., Nicolas, F. and Takuji W. T. (2020). Reasons for Adoption of Sustainable Land Management Practices in a Changing Context: A Mixed Approach in Thailand, Land Use Policy, July 2020. 10. Prime Minister (2020). Decision No. 1055 / QD-TTg dated July 10, 2020 Approving the National Plan to Adapt to Climate Change Period 2021 - 2030, with a Vision to 2050. 11. Seppelt, R., Dormann, C., Eppink, F. V., Lautenbach, S. and Schmidt, S. (2011). A Quantitative Review of Ecosystem Studies: Approaches, Shortcomings and the Road ahead, Journal of Applied Ecology. 12. Tran, T., D. and Vu, T, H., T. (2012). Climate Change and Coastal Livelihoods, Reference Book, Vietnam Development Forum. 13. UN Economic Commission for Europe (1996). Land Administration Guideline. With Special Reference to Countries in Transition, Geneva, ECE/HBP/96. 1996. 14. Weith, T., Schulz, K., Gaasch, N., Seppelt, R., Werntze, A. and Eppink, F. (2010). Towards Integration: Sustainable Land Management. A new German Research Funding Measure 15. World Bank (2006). Sustainable Land Management. Challenges, Opportunities, and Trade-offs. Washington, DC. 16. Zerihun, N., Atsushi, T., Nigussie, H., Enyew, A. and Steffen, A. (2017). Factors Influencing Small-scale Farmers’ Adoption of Sustainable Land Management Technologies in North-Western Ethiopia, Land Use Policy September 2017.

Climate Change Adaptation Pathways for Local Ethnic Minority Communities in the Central Highlands of Vietnam: Comprehensive Solutions to Enhance Adaptive Capacity and Sustainable Development

Assoc.Prof.Dr. Ngo Quang Son1, Dr. Vu Thi Thanh Minh2, M.Sc Nguyen Thi Thuy Phuong3 M.Sc Le Thi Nhu Quynh4, M.Sc Le Thi Luong5, B.A Tran Tien Hien6 1Director General of National Organization for Community Education, Continuing Education and Development (NOCEAD VIETNAM) 2Director of Institute of Ethnic Minorities Cultural Studies Editor-in-chief of the Journal of Ethnic Minorities Research 3Principal of Bao Loc High School, Lam Dong 4Deputy Head of Testing Laboratory and Education Quality Control Ha Giang Department of Education and Training 5Lecturer at College of Education, Thai Nguyen University – Lao Cai Campus 6Specialist of Education and Training Division of Bac Ninh City

Abstract In recent years, there have been a number of studies on natural disasters, but there are no general studies on the situation of natural disasters and solutions to improve disaster prevention capacity of local ethnic minority communities in the Central Highlands. Therefore, the study of a system of comprehensive solutions to improve disaster prevention capacity for local ethnic minorities to respond to climate change, prevent natural disasters and manage sustainable development of the Central Highlands in the current period is extremely important and urgent in both theory and practice. The authors have investigated and surveyed the current status of disaster prevention capacity of the local ethnic minority communities in the period 2016-2018, then proposed a system of overall solutions to improve natural disaster prevention capacity for local ethnic minorities in the area to respond to climate change, prevent natural disasters and manage the sustainable development of the Central Highlands in the current period. Research method: Group of theoretical research methods; Group of practical research methods; Other support methods. Keywords: Capacity of natural disaster prevention; Local ethnic minorities; Responding to climate change and developing sustainably; Total solution system; Central Highlands.

1. Introduction With a natural area of 5,465,960 ha, accounting for about 1/6 of the country's natural area, including 5 provinces of Kon Tum, Gia Lai, Dak Lak, Dak Nong and Lam Dong, the Central Highlands has a population of about 5,107,437 people with 47 ethnic groups. In which, there are 13 local ethnic minorities groups with more than 1.5 million people, accounting for about a

quarter of the population of the whole region, but they are residents for a long time, understand very well nature, heaven and land in the Central Highlands. Each ethnic minorities group in the Central Highlands has a valuable cultural identity, traditional customs and practices to preserve the environment of forests, land, water and air in order to protect their lives. For sustainable socio-economic development, while natural disasters and climate change are a global issue, building capacity for disaster risk prevention, fighting and mitigation for local ethnic minorities communities in the Central Highlands, especially for local ethnic minorities, it is more urgent than ever. In recent years, there have been a number of studies related to natural disasters, but there are no general studies on the situation of natural disasters and solutions to improve disaster prevention capacity of the local ethnic minority community. Therefore, the study of overall solutions to improve disaster prevention capacity for local ethnic minorities to respond to climate change, prevent natural disasters and manage sustainable development of the Central Highlands in the current period is extremely important and necessary in both theory and practice. Through an overview of domestic and foreign studies related to natural disasters, the community's ability to respond and prevent natural disasters, shows that domestic and foreign studies have formed and developed a complete and comprehensive basic theoretical system on natural disasters and related theoretical issues. Most studies go into depth researching each type of natural disaster, clarifying complex and unpredictable changes, analyzing its causes and impacts on nature and society. This is a global issue that threatens the survival of many countries around the world, including Vietnam. Natural disasters are increasingly complicated and their consequences are extremely dire. However, in each territory, each historical time is associated with natural, socio-economic conditions... whose influence level is different. Under the strong impact of the global climate change phenomenon, natural disaster developments become more complicated, unpredictable, causing serious consequences. There have been many solutions to prevent natural disasters, the proposed disaster response solutions are built from both technical, human and financial perspectives; overall solutions, local solutions for the situation...for the whole world, region, sub-region and each country with the aim of minimizing the risk of natural disasters. In order to effectively adapt, mitigate, combat and overcome the impacts of natural disasters, one of the priority solutions is to start from building disaster response capacity for each locality community and regions, paying special attention to disadvantaged groups. In recent years, a number of researches have linked the exploitation and development of the Central Highlands with the requirement of sustainable development. Research have analyzed, interpreted and proposed solutions to rationally exploit this potential land as follows. - For Vietnam, there have also been many studies focusing on clarifying the phenomenon of natural disasters, its causes and impacts on the community, thereby proposing total prevention solutions. However, the studies mainly focus on areas with many natural disasters, high intensity and devastating levels of destruction such as the Central Highlands region, the Red River Delta, the Mekong River Delta and the Northern mountainous region. For the Central Highlands, overall research on natural disasters is still very limited, especially research on the ability of local ethnic minority communities to respond, prevent and avoid natural disaster risks, in which: -There are no studies to summarize types of natural disasters and assess the impacts of natural disasters on socio-economic life and the environment in recent years in the Central Highlands.

- No in-depth research on the capacity to prevent and avoid natural disasters, factors affecting the capacity of natural disaster prevention and avoidance of local ethnic communities in the Central Highlands in recent years. - There are no comprehensive studies on solutions to improve disaster prevention capacity for local ethnic minority communities in the Central Highlands. Thus, the scientific works in the country as well as in the world in recent years have gained many achievements, which are significant in both theory and practice. Natural disasters have always been a global concern and the damage caused to humans is enormous. Although there have been many studies and proposals to prevent natural disasters, but in fact, this phenomenon has not decreased but tends to increase. Therefore, it is very necessary to study and propose overall solutions to improve disaster prevention capacity of local ethnic minority communities in the Central Highlands. 2. Research method 2.1. Theoretical research methods In the process of researching the topic, experts have read related secondary documents at the National Library, Information Center, Ministry of Science and Technology; Central Highlands Program Office 3 and a number of research institutes on Central and Central Highlands belong to the Vietnam Academy of Social Sciences, Institute of Geography of the Vietnam Academy of Science and Technology. Relevant documents include: - Study documents on natural disasters, climate change, natural disaster prevention and response and local ethnic minorities in the Central Highlands. - Study resolutions of the Party; Law of the State, the National Plan of Action of the Government...on the issue of natural disaster prevention and mitigation. - Study overview of strategies, plans and plans on natural disaster prevention and mitigation of the whole country and of the Central Highlands. - Research specific policies related to environmental protection, prevention and response to natural disaster reduction in the Central Highlands - Research documents on environment, natural disasters, natural disaster risks, climate change in Vietnam in general, mountainous and ethnic minority areas and the Central Highlands in particular in recent years. - Study documents on natural conditions, population, economic, social, cultural characteristics and environment of local ethnic minorities in the Central Highlands. - Research on the role of folk knowledge, traditional experiences, and customary laws of local ethnic minorities in the Central Highlands in environmental protection, contributing to natural disaster prevention, response and mitigation. - Literature review of disaster risk prevention, response and mitigation capabilities, community- based models, domestic and international lessons learned. - Study international documents on natural disaster risk prevention in climate change scenarios and coping with climate change.

2.2. Practical research methods 2.2.1. Questionnaire investigation (collecting quantitative information) * Purpose: Collecting quantitative information reflecting the current situation of natural disasters, the ability of the local ethnic minorities in the Central Highlands to prevent, respond and mitigate natural disaster damage and the intervention and support of the State; Evaluation of results and limitations in capacity to prevent and respond to natural disasters of local ethnic minority communities in the Central Highlands. * Criteria to define the survey sample system of the topic: - Investigated area: Research topic of 5 provinces in the Central Highlands. In which, focus on villages and villages where local ethnic minorities live; - According to topographical criteria: The place with the highest, medium and low terrain; - According to criteria of impact of natural disasters in recent years: The area most seriously affected, medium and less affected; - According to criteria on typical natural disasters such as storms, floods, landslides, droughts, forest fires; - According to the criteria of the level of maintaining the characteristics of the traditional society such as village structure, management by customary law, respect for traditional knowledge/local knowledge...; * Subject matter investigated: Objects of investigation include: - Staff of the agency managing environmental policy and disaster risk prevention; - Local ethnic minority households, which focus on the elderly, reputable people, ethnic intellectuals, village elders, village chiefs, women ... * Content and form of investigation: - For officials of grassroots environmental management agencies: (1) Form of investigation: questionnaire (2) Content of the investigation: Clarifying types of natural disasters, natural disaster risks and achievements, limitations in the implementation of measures to respond to natural disaster risks in the area; implementing solutions to improve the local ethnic minority communities' capacity in preventing and mitigating natural disasters in the locality, results and limitations. - For people: (1) Form of investigation: Investigated by questionnaire (2) Content of investigation: clarifying residence characteristics, production practices, knowledge, traditional customs and practices related to environmental protection and prevention and mitigation of natural disaster risks; coping capacity and factors affecting the ability to respond to natural disasters and natural disaster risks; people's wishes and recommendations in environmental protection, prevention and mitigation of natural disasters (3) Number of questionnaires: 2150 sheets

2.2.2. Group discussion (gathering qualitative information) * Purpose: In order to collect qualitative information, people's representatives about the situation of natural disasters, the ability to prevent, respond to and mitigate natural disaster risks of the local ethnic minority communities in the Central Highlands, the State intervention and support; Evaluation of results and limitations in capacity to prevent and respond to natural disasters of local ethnic minority communities in the Central Highlands. * Request: Democracy discussion with representatives of the people, no imposition, no answers, no prejudice, in order to get honest and accurate information and opinions from the people, in which attention should be paid to the opinions representing reputable people, old people, women, young people. (do not allow leaders of commune, district, province leaders to attend and direct answers) * Objects and locations: Each commune chooses a village, the topic will discuss with groups of 07 members: - Secretary of the village cell (representing the voice of the Party at the grassroots level) - Village head (representing the grassroots government and people) - Fronts (representing the people, unions, great unity of the people) - Village patriarch, village chief, family head (representing reputable, experienced, knowledgeable people). - Elderly people (representing the elderly, experienced) - Youth Union (representing the young generation) - Women (representing the voice of village women) * Skill: - The topic is carefully prepared and printed out suggestions for discussion, group discussion, according to topic content and suitable for ethnic characteristics. - During the discussion, the host can take notes or use an audio recorder (if agreed by the group) 2.2.3. In-depth interview (to collect qualitative information) * Purpose: Gather qualitative information from experts with knowledge of ethnic groups and leaders of provinces, districts and communes on the situation of natural disasters, the ability of the community to prevent, respond and mitigate natural disasters. local ethnic minorities in the Central Highlands, the State's intervention and support; evaluation of results and limitations in capacity to prevent and respond to natural disasters of ethnic minority communities in the Central Highlands. * Object: - Leaders of 05 provinces - Leaders of 15 districts - Leaders of 15 communes - Specialists who are knowledge able about local ethnic minorities: are people who are knowledge able about natural disasters, have experience and the community's ability to prevent, respond and mitigate natural disasters.

* Skill: - The topic carefully prepares the interview questions according to the content of the topic and according to the characteristics of the ethnic groups in the area, at least 2 weeks in advance to the authorities at all levels, to prepare the contents in advance. - During the interview, the host can take notes or use an audio recorder (if agreed by the interviewer). 2.2.4. Case Study * Purpose: Through in-depth research, assessment, analysis of specific cases and situations, in the area where natural disasters have occurred, encountering natural disaster risks, the ability of natural disaster risk prevention, response and mitigation of local ethnic minority communities in the Central Highlands, the State's intervention and support; evaluation of results and limitations in capacity to prevent and respond to natural disasters of local ethnic minority communities in the Central Highlands. * Objects and locations: The topic chooses each province at least 03 cases to conduct in-depth research. Locations of communes, villages are selected by the Provincial People's Committee according to the criteria of the topic, where natural disasters have occurred, natural disaster risks, and have good ability to prevent, respond and mitigate natural disasters. * Skill: The expert group conducted in-depth research in the area by technical methods such as: Collecting, analyzing information, documents; ethnographic fieldwork; discussion groups; sociological investigation, collecting people's opinion; professional solution,... 2.2.5. Investigation products: - A set of documents gathers questionnaires, notes, audio tapes, photos and reports on working results, group discussions, in-depth interviews. Report sets, discussion minutes, group discussions - Data and information that reflect the opinions of local people and government officials on natural disasters and the ability of the local ethnic minority communities to prevent, respond and mitigate natural disasters. Central Highlands, State intervention and support; evaluation of results and limitations in capacity to prevent and respond to natural disasters of local ethnic minority communities in the Central Highlands. - Quickly report key findings, issues related to natural disasters, natural disaster risks, and capacity to prevent natural disasters of the ethnic minority community. 2.2.6. Study, survey and study experiences in the Northern mountainous region (Lao Cai, Ha Giang) * Survey purposes and requirements: - Research and survey experiences on natural disaster prevention and mitigation in local ethnic minority communities in Lao Cai and Ha Giang provinces. - Organize 2 scientific seminars in 2 provinces to exchange and learn experiences in disaster prevention and mitigation and learn about views, policies and solutions in environmental protection and disaster response. - Interviewing some officials and people in depth to get multidimensional information, in-depth information on experiences in natural disaster prevention and mitigation in the ethnic minority community.

* Content of research, survey: - The province's macro policies on environmental protection and natural disaster risk prevention and control - Experience in responding to natural disaster risks of the government - Experience in mobilizing the community to participate in natural disaster prevention and control - Survey models of effective natural disaster risk prevention and control * Survey results: - Lessons in building policies of local governments on natural disaster risk prevention and control - Lessons in mobilizing the community to participate in natural disaster risk prevention and control - Lessons on building models of natural disaster risk prevention and control 2.3. Other methods Using mathematical statistical method, SPSS software to process survey data. 3. Research results 3.1. Current situation of ethnic minority communities' capacity to cope with major natural disasters in the Central Highlands today Basically, local ethnic minorities in the Central Highlands have a certain awareness of the types of natural disasters that often occur in the area in recent years. This is shown in the survey results for the sample of the people that the research team conducted in the 5 provinces of the Central Highlands with the number of 1,300 households, specifically: Gia Lai has Ia Broai commune. (Ia Pa district) and Doan Ket ward (Ayun Pa town), Kon Tum are Ngoc Tu commune (Dak To district) and Dak pxi (Dak Ha district), Dak Lak is Krong Na (Buon Don district) and Hoa Phong commune. (Krong Bong district), Lam Dong selected Son Dien commune (Di Linh district), and Dak Nong was Quang Phu commune (Krong No district). These are areas where natural disasters such as storms, floods, landslides, thunderstorms, tornadoes, droughts often occur in recent years, are affected by hydropower projects, and some places are severely damaged. in terms of people and property, at the same time there are local ethnic minority communities. The survey results are also consistent with the report of the Department of Agriculture and Rural Development of the Central Highlands provinces, the province's permanent unit on flood and storm prevention, when listing the common types of natural disasters in the Central Highlands. That is: flood is a type of natural disaster that frequently occurs (the rate of respondents is 88.1%), followed by droughts which are also very serious in recent years (the proportion of respondents is 74.9%), storms are also natural disasters occurring in the area (62.8%), lightning is fourth (60.8%), forest fire is the fifth result of drought ( 57.3%), hail (56.3%), erosion (46.8%), tornado (42.8%), landslide, soil collapse (41.3%), flash flood (34 , 2%), frost and fog (32.6%), dam failure (25.8%), polluting rain (22.2%), desertification (4.3%) and finally earthquake (4.2%). Surveying on the frequency of natural disasters, the results showed that the types of natural disasters with frequent occurrence are: flood (the rate of people choosing the frequency is 58.4%), drought (54.1%), thunderstorms (33.9%), forest fires (34.3%), storms (35.6%), erosion (36.3%). Types of natural disasters with less occurrence rates are: landslides, land cracks (22.2% of respondents), cyclones (21.6%), hail (20.8%). fog, frost (17.5%), flash floods, tube floods (16.8%), polluting rain (13.6%), dam failure (12.6%).

Types of natural disasters rarely occur: earthquakes (1.2%) and the rarest phenomenon of desertification (only 0.7% of respondents). The Central Highlands provinces also upgrade and modernize communication systems, research patterns that cause heavy and intense rain, develop flood risk forecast maps, flash floods, and tube floods for the whole region. Functional departments quickly survey and update annually the current state of floods, flash floods, and identify areas prone to floods and flash floods, build flash flood warning systems...to not only limit the damage. about people and assets of the ethnic minorities but also well serve the requirements of socio-economic development for the Central Highlands. Scientists also propose and recommend the Central Highlands provinces to protect and restore existing forests; At the same time, increase investment in afforestation to increase forest cover, plan, re-arrange residential areas, produce, invest in construction of irrigation works ... rational, scientific and effective. in disaster prevention. In the Central Highlands, in recent years, natural disasters such as floods and flash floods have occurred more frequently. Almost every year floods, floods, flash floods occur, the damage caused by floods and flash floods in recent years is very great, especially the damage to people, civil works, works, water transportation… In the past, when the population was still sparse, in the sloping lands, there were few people to live and cultivate. But now it is different, the population has increased but the land has not increased, and people are forced to go to places that were once considered remote places to live and farm. Forests were burned and destroyed for cultivation land, housing... many new villages have been formed along streams or hillsides where floods and flash floods are in danger. The Central Steering Committee for Flood and Storm Control is implementing the flash flood prevention planning program for the mountainous provinces. The content of the program is to research and develop criteria to identify areas at risk of flash floods; to conduct surveys and statistics on population areas that are directly susceptible to flash floods, especially areas along rivers, streams, and hillsides with thin soil layers; develop a plan to relocate households living in areas prone to flash floods to a safe place. Implementing the Directive on some measures to prevent flash floods in mountainous provinces, up to now, the Ministry of Agriculture and Rural Development has directed localities to closely combine the implementation of integrated hunger elimination programs. poverty reduction, socio-economic development with the requirement of preventing floods and flash floods for the population of the mountainous provinces. In response to the current drought, local ethnic minority communities in the Central Highlands are using measures such as: - Take advantage of water from rivers and streams and use it economically: In the dry season every year when the water in rivers and streams near the living area has dried up, people of ethnic minorities in the Central Highlands wear it. Go find and scavenge water from the riverbeds and streams farther away, so they can use it at the most economical level. In places where the water still penetrates, people also take advantage of bringing clothes to the river to bathe and wash. - Dig wells, drill wells to find water sources. When the water in the rivers and streams has dried up, people dig wells to find the deep underground water. However, finding groundwater from digging wells is extremely difficult because dug wells often encounter rocks and limited depth. Some households drilled wells to a depth of several tens of meters, but during the peak periods

of the dry season the amount of water collected is also very limited. Not only lack of water for domestic use, many industrial crops, wet rice fields and crops are drying up. People have used pumps to get water from drilled wells for irrigation but cannot meet the water demand for crops. - Make use of clean water from drilled wells. In Krong Pa district, about half of the households in the district have access to this clean water source. However, recently, the works are deteriorating, and the pumps are broken, so water scarcity still occurs in the dry season. - Construct many reservoirs (such as Ia Mlah, Bien Ho, Ayun, Ea Kao, Ea Knop ...), in order to serve people's daily life, especially for ethnic minority communities in remote areas. and have a difficult life. Gia Lai province has more than 330 permanent irrigation works, Kon Tum province also has more than 400 irrigation works, large and small, of which 70 irrigation reservoirs are storing water, the largest reservoir holds more than 10 million m3. However, during the peak periods of the dry season, the water from the reservoirs dry up, not enough to provide water for domestic use as well as for agriculture. Typically, Ia Malh Lake was built in 2005 with a capacity of 54 million m³, enough to supply water for domestic use for about 36,000 people and enough to irrigate more than 5,000 hectares of agricultural land in 6 remote communes of Krong district. Pa, but there are times when there is still not enough water for living as well as water for plants. - Develop water regulation schemes and plans in hydropower and irrigation lakes, making the most of water resources. During drought days, in Dak Mil district, Dak Nong province, around the Dak M'bai reservoir area, Dak Lao commune always has from 20 to 25 water pumps running at full capacity around the clock to suck irrigation water. the coffee. Take measures to prevent drought and ensure water sources for agricultural production and daily life of the people. The functional departments of Gia Lai and Kon Tum provinces have directed the dredging of canals, water intakes, pumping stations, ponds, wells, to clear the flow. Increasing the use of advanced, water-saving measures for rice and high-economic-value upland crops ... Provincial Departments of Agriculture and Rural Development have also coordinated with district Agriculture Departments guide people to have suitable planting plans to avoid drought by arranging a suitable plant variety structure. Areas that often lack irrigation water should consider switching to upland crops that use less water to irrigate or remove, without cultivation to ensure production efficiency...Due to the unusual and unpredictable nature of the weather phenomenon, especially dangerous tornado in general, especially the type with high speed, it is very difficult to prevent. During the tornado, people must immediately find shelter in the basement or a solid place in the house...On the street, if the tornado swept through everyone needs to quickly find shelter, so get under ditch or ditch and cover your head, or look for something carefully covering your head. Some other experts believe that people should take shelter in permanent buildings, not in temporary houses or under the shade of trees. Absolutely avoid hiding in cars and shelters as they can be blown away at any time. Do not stay in large houses with wide roofs such as auditoriums, or supermarkets that are prone to collapse. The Institute of Construction Science and Technology (Ministry of Construction) has come up with technical solutions to prevent natural disasters in building people's houses. This is also a content of the construction sector's cooperation with UNDP (United Nations Development Program). Accordingly, scientists in the Vietnam Construction industry recommend that the planning on selecting construction sites for residential areas should pay attention to taking advantage of the terrain and terrain to block wind and storms. Make houses gather into each area, arrange staggered houses. Avoid building houses in open areas, in fields, along villages, riverside,

coastal areas, on high hills or between two hillsides or mountainside. Avoid aligning the houses, easy to create wind bags or dangerous turbulence. Architecturally, the house size is reasonable, avoiding thin and long houses; strengthen the structure around the rooms to provide shelter for people who are indoors during a disaster. Thus, in order to minimize the impact of storms and cyclones on people's homes, in addition to actively choosing safe solutions for construction, people can use temporary support measures to prevent roof speeds and resistance increases stability for the house before natural disasters, storms and floods. The National Strategy for Natural Disaster Prevention, Response and Mitigation to 2020, approved by the Prime Minister on November 16, 2007. The strategy's point of view is: natural disaster prevention and control is the prevention, response and overcoming of consequences in order to minimize damage caused by natural disasters, ensure sustainable development, contribute to social stability and ensure security and defense. The Central Highlands is an area where many ethnic communities live, their lives are still difficult, natural disasters caused by tornadoes, thunderstorms and hail have caused severe consequences on the lives of ethnic minorities, photos affect the general social stability and also affect national security and defense of the Central Highlands. Like natural disaster prevention and mitigation in general, the prevention, fighting and mitigation of natural disasters caused by tornadoes and hail should comply with the motto that the State and people work together; Integrating the content of natural disaster prevention, fighting and reduction into the socio-economic development planning and plans of each region, each socio-economic field, the life ... of each region, each region. The prevention, combat and mitigation of cyclone and hail natural disasters here also need to promote and inherit traditional experiences, draw lessons from experience, combine with modern knowledge and technology. The overall goal is to minimize the loss of life and property, and limit the destruction of natural resources, the environment and cultural heritage. Forest fire control besides the important role of firefighters and forest rangers, local communities and people have the biggest role in preventing fire, causing human and property damage. To achieve the goal of preventing forest fires and protecting forests, creating a community effort where all parties, people and authorities are involved is of paramount importance. During the fires, local people were the most knowledgeable of the local conditions. Therefore, efforts to join the community in the fire prevention and fighting provide information to minimize damage caused by fire losses are essential. Fire management is directly linked with benefits. Only when local communities know that they will benefit from protecting their forests will they do everything they can to prevent wildfires. The construction of solid reservoirs to store water to store large water sources for forest fire prevention and fighting is extremely important because forest fires often happen in the dry season and water resources are very limited. Besides, there should be equipment such as high- capacity pressure pumps ... Forest fire detection watchtowers are extremely important in early detection of forest fires. Depending on the area and topography, to build different types of huts and different densities. Building signs, banning fire signs and forest fire forecasting boards to warn and raise awareness for people to recognize the flammable forest area, the danger level when a forest fire occurs or the area. no fire… Preventing and mitigating the consequences of natural disasters in general, landslides and land cracks in particular for local ethnic minority communities in the Central Highlands is a process

in which the communities are facing natural disaster risks. is particularly important, especially in the context that climate change is affecting more and more the Central Highlands region. In addition to the efforts and efforts of authorities, sectors and localities, the community of ethnic groups in the Central Highlands, especially the local ethnic minority community, has actively participated in the identification and distribution of analysis of risks of cracking and landslides, planning, implementing, monitoring and evaluating activities aimed at mitigating vulnerability and enhancing resilience, community. This means that people are at the center of the whole decision-making process and implement activities to prevent and mitigate the consequences of landslides and landslides. People need to be fully informed and need support to have the capacity to predict the risks of landslides when heavy rains, flash floods ... identify measures and action plans to mitigate consequence. These measures can range from pre-disaster mitigation and prevention activities to during and after a disaster response, recovery, and adaptation measures. Although there are different models and practices, disaster management activities are often carried out in a certain cycle. From the position of vulnerable communities, people are often concerned about what they do "before", "during", "after" natural disasters. As for the position of implementing community-based disaster management, officers often follow the steps of planning, implementing, monitoring and evaluating activities. Using community-based risk assessment methods, people will actively participate in the process of gathering, synthesizing and analyzing information, especially together identifying hazards and their impacts. affecting vulnerable groups such as women, especially women headed households; Elderly; children; People with disabilities and other vulnerable groups in the community (hazard assessment); Identification of vulnerable groups under the impact of natural disasters (vulnerability assessment); Available resources, skills, experience and community response strategies (capacity assessment) with gender considerations. 3.2. Comprehensive solutions for improving disaster prevention capacity of the local ethnic minority communities in the Central Highlands 3.2.1. Raise awareness of the local ethnic minority communities in the Central Highlands on disaster prevention Raising awareness of local ethnic minority communities in the Central Highlands about natural disasters and natural disaster prevention and control is the first important solution, creating a foundation to improve the community's ability to prevent natural disasters. Because, people are closely attached to nature and communities here, more than anyone who has to face directly with natural disasters that often occur. Meanwhile, for many different reasons, people pay little attention to natural disasters, and when they encounter it, it is considered destiny. People do not have proper awareness of natural disasters (they also worship Giang for rain in drought); There is little and no natural disaster forecast and warning information has been received. Most of the people still do not know how to prevent and avoid natural disasters, but also passively cope. Therefore, raising awareness about natural disasters and preventing and combating natural disasters will help local ethnic minorities and communities to properly and comprehensively aware of natural disasters, forecasting, warning, preventing and responding. harm reduction and recovery after natural disasters, minimizing human and property damage, limiting the destruction of natural disasters to natural resources, the environment and cultural heritages, contributing to economic development. economic - social.

3.2.2. Foster and develop the ability of forecasting, warning, preventing and recovering after natural disasters for local ethnic minority communities This is the most important solution to directly foster, develop and improve the ability to prevent and avoid natural disasters and bring into play the ability of the local ethnic minority community in forecasting, warning, and prevention work. responding, minimizing harms and recovering from natural disasters, contributing to minimizing damage caused to natural disasters. Fostering and improving basic and essential skills on natural disaster prevention and control for local ethnic minority communities, including the following contents: Improving skills, ability to forecast, warn, prevent and respond dealing with natural disasters; community's ability to prepare to respond to natural disasters through participatory activities; community's ability to manage natural disaster risk; communication capacity serving natural disaster warning and response for local ethnic minority communities in the Central Highlands to ensure timely information when natural disasters occur; improve the ability to identify, forecast, and early warn various types of natural disasters in order to raise solutions suitable to each type, contributing to improving efficiency in preventing and avoiding natural disasters; the ability to access and use advanced technical means in natural disaster prevention and control; capacity to self-prevent natural disasters, especially community-based natural disaster prevention and mitigation; capacity to develop natural disaster prevention and avoidance plans; capacity to organize production associated with natural disaster prevention and control activities; capacity to adapt to different types of natural disasters ... 3.2.3. Preserve and promote cultural values in environmental protection and disaster risk prevention Cultural values, especially traditional culture, have been deeply ingrained in the community's life (including cultural values related to environmental protection and natural disaster prevention and control). All solutions to improve the capacity of natural disaster prevention and control for local ethnic minority communities must be based on the indigenous culture, suitable to the ethnic culture. Preservation and promotion of cultural values will arouse and promote existing living capital of the community, respect and promote good cultural values, promote the existing abilities of the people and promote effectively. local capacities of the community such as: cultural values, experiences learned from practice in disaster prevention, in order to improve efficiency and minimize post-disaster damage to ensure both promote existing strength. and create an environment to form and develop new capacities and capacities for the community. 3.2.4. Strengthening the cohesion of ethnic communities living in the same area in coping with natural disasters Solidarity and attachment are precious traditions of the ethnic groups of Vietnam in general and the Central Highlands ethnic minorities in particular. In particular, before natural disasters, the enemy's enemy of the spirit of solidarity and community solidarity is even more evident. Currently, due to the impact of many factors, especially the reverse side of the market mechanism, it has been and is affecting strongly ethnic relations and community relations. In the face of natural disasters, the urgent requirement is to strengthen the cohesion and help of the communities, together to overcome difficulties and challenges. Strengthening the cohesion of communities in the same area in order to promote the strength of communities, multiply the strength of communities in preventing and avoiding natural disasters; create solidarity, mutual assistance and assistance in the process of coping with natural disasters. This is also an inevitable solution to create a strong enough capacity to cope with complicated developments and the growing devastation of natural disasters in the Central Highlands.

3.2.5. Develop mechanisms and policies to improve the resilience of local ethnic communities Supplement and complete mechanisms and policies to create a favorable legal basis for natural disaster prevention and control in general, improve the capacity of 6+ for ethnic minority communities in the Central Highlands, contributing to effective response. results and mitigate natural disaster damage. Supplement and complete a number of mechanisms and policies for 6+ capacity building for local ethnic minority and ethnic minority communities in the Central Highlands, the policies include: Mechanisms and policies to support financial resources for 6+ capacity building activities to encourage the community to actively participate in 6+ capacity building activities; Supplementing mechanisms and policies on the management and implementation of 6+ capacity building activities for the local ethnic minority communities in the Central Highlands; To formulate and supplement synchronous policies on investment in the construction of key natural disaster prevention and control works and support localities in building natural disaster prevention and control works as decentralized by the Government; Policies on Training, education, training and propaganda to raise awareness of the community and people in compliance with the law and participation in natural disaster prevention and control; Increase investment in infrastructure in areas prone to natural disasters; relocation of people living in dangerous areas to safe places; support for life and production for subjects damaged by natural disasters, with priority given to areas frequently affected by natural disasters and vulnerable objects; Policies to encourage organizations, households, individuals and communities to take initiative in taking measures to prevent and fight natural disasters; encourage organizations and individuals to invest in the construction of works, research and apply scientific and technological advances to natural disaster prevention and control activities. The State protects the legitimate rights and interests of organizations and individuals. people participating in natural disaster prevention and control; incentives and incentives for insurance enterprises to deal in natural disaster risk insurance; support for enterprises to invest in production and business in areas frequently affected by natural disasters in accordance with the law on investment, the law on enterprises and the law on natural disaster prevention and control; policies on exemption and reduction of corporate income tax for contributions to natural disaster prevention and control; Issue and supplement natural disaster relief policies for each region: living with floods, distributing floods, slowing down floods, areas at high risk of flash floods and landslides, ... 3.2.6. Increase socialization of resources in preventing and mitigating damages caused by natural disasters The complicated developments of natural disasters and the serious consequences caused by natural disasters require improving the ability to prevent natural disasters for the community, especially ethnic minorities. However, this is a difficult and complicated task, and it is necessary to mobilize resources from the whole society. Socialization of resources to mobilize all resources, creating synergy in environmental protection and mitigating natural disasters is an important solution, facilitating in all aspects to implement content, form and methods to improve natural disaster prevention and avoidance capacity for the community. Enhance the socialization of human resources, financial resources in natural disaster prevention; Implement a socialization policy for natural disaster prevention and mitigation, in which: creating conditions for people to participate in the process of drafting legal documents, planning, planning, management and supervise the implementation of programs and projects in the locality; To continue building and expanding socialization models in natural disaster prevention

and control; To work out plans for socio-economic development associated with natural disaster prevention; Mobilize all resources to prevent natural disasters, ensure safety of lives and assets, and minimize damage caused by natural disasters. 3.2.7. Organize prevention and mitigation for the localities In order to improve the capacity to prevent, avoid and mitigate natural disasters, along with enhancing the capacity and promoting the role of the local ethnic minority community in the Central Highlands, it is necessary to have conditions and ensure environment. Well-organized natural disaster prevention and mitigation in localities will create favorable conditions and environments for the process of improving the community's ability to prevent natural disasters. The goal of this group of solutions is to create favorable conditions for the environment, facilities, techniques, technologies, forces and means for natural disaster prevention in the localities. Concentrate on creating favorable conditions for residential areas, material foundations, forces, means and resources to ensure the prevention and avoidance of natural disasters. 3.2.8. Propose efficient models for each local ethnic minorities community forecasting, warning, preventing and recovering after natural disasters Deploying the replication of a number of models of natural disaster prevention * Household disaster risk reduction model The model of disaster risk reduction based on natural disaster risk reduction planning with the participation of households, is an activity that has been implemented in many projects on disaster management based on community and is applied at district, commune or village levels. In this model, the position and role of the people is involved in the planning process. As for the household level, people will be able to directly develop specific action plans on natural disaster prevention and avoidance and people are proactive in choosing activities that fully match their needs and characteristics of my family. * Community learning center model for disaster prevention This model has been implemented by the ECOLIFE project (founded by the Center for Community Service Initiatives (CSIP)) implemented in a number of localities. The results of the implementation of this model show that this learning center has a higher friendliness, closeness and interaction with the community than the forms of propaganda and dissemination of knowledge through radio, newspaper, or poster. People often pay little attention to information that is reflected in a "one-way" style on newspapers, radio or television. * Model to improve the community's resilience to natural disasters through the participation of women and girls There are many organizations interested in educating and raising awareness about climate change for people such as officials, farmers, and women. But only in recent years have children and young people been of interest to many organizations and considered to have important roles in the response to climate change (Save the Children, National Plan in Vietnam, Action Center for Urban Development, CECI, etc.). Among them are disaster risk reduction activities with the participation of children carried out by the Child Relief Alliance and the International Plan in Vietnam in Yen Bai, Thanh Hoa, Quang Tri, Tien Giang and one Some other areas from 2005 up to now have shown significant successes and new approaches.

* Model of integrating disaster risk reduction and climate change adaptation into local socio- economic development programs To contribute to solving the above problem, Oxfam in Vietnam has piloted the model of integrating disaster risk reduction and climate change adaptation into socio-economic development planning. The result of the pilot process is the drafting of "Guidelines for integrating disaster risk reduction and climate change adaptation in social and economic development planning". * Develop an Information, Education and Communication Model based on the active participation of the community for forecasting, warning, preventing, responding, minimizing harms from natural disasters and recovering after disasters Criteria for selecting model construction site The selection of sites to build the model is based on the following 2 criteria: - A place where many local ethnic minorities live; - A place often affected by natural disasters. Construction location of the model has been determined by the topic as: - Model 1: The Information, Education and Communication (IEC) model is based on the community's active participation in natural disaster prevention, response and mitigation to the Gie Trieng ethnic community in Dak Chap village, Dak Pet commune, Dak Glei, Kon Tum province. - Model 2: The Information, Education and Communication (IEC) model is based on the community's active participation in natural disaster prevention, response and mitigation for the Co Ho ethnic community. Gia Bac village, Tan Nghia commune, Di Linh district, Lam Dong province. 4. Discussions For local ethnic minority communities, they are directly affected by natural disasters, so in order to contribute to minimizing damage caused by natural disasters, on the community side, it is necessary to do well: - Actively participate in programs and activities of local authorities on awareness raising and capacity building in natural disaster prevention and control; - To be more proactive in preparing for natural disaster prevention and control, according to the motto of being active, proactively and promoting internal strengths, proactively saving themselves when an emergency natural disaster occurs; - Actively participate in new livelihood building models that both increase income and are highly adaptive to changing climate conditions; - Coordinate closely with local authorities in implementing activities on natural disaster prevention and control ... 5. Conclusion In the current context of global climate change, natural disasters have become more complex, impact more strongly and cause more serious consequences for people in all regions above. country, including the local ethnic minority community in the Central Highlands. Researching the ability to respond to natural disasters and proposing comprehensive solutions to improve prevention capacity of local ethnic minority communities in the Central Highlands is a very urgent issue, has a very practical and effective meaning. basic, permanent.

Regarding the status of the capacity to respond to natural disasters of the local ethnic minority communities in the Central Highlands today, the topic has analyzed and raised the current status of the available means and techniques used to respond to nature. for forecasting, warning, preventing, responding, minimizing damages, recovering after natural disasters. The topic has also raised the current situation of the capacity to cope with common natural disasters of the local ethnic minority communities in the Central Highlands such as floods, flash floods; drought; thunderstorms, tornadoes; Forest fires; landslides, soil cracks; storm. The proposes a system of overall solutions to improve disaster prevention capacity of local ethnic minority communities in the Central Highlands, including 7 groups of solutions with specific objectives, contents and implementation methods. Based on the identified views and requirements, the topic proposes to replicate a number of models of natural disaster prevention. The project has also developed and implemented 2 models of Information, Education and Communication based on the active participation of the community to forecast, warn, prevent, respond, and minimize harms. The results of natural disasters and post-disaster recovery have been achieved with high feasibility when replicating.

References 1. Benson C. (2004) - Understanding the Economic and Financial Impacts of Natural Disasters Charlote Benson, Edward Jclay - Washington Publishing House, D.C: The World Bank. 2. Cuong, H.D (2012), Research and Application of WRF Models for Weather and Storm Forecasting in Vietnam. 3. Dao, B.M (2000), Traditional Cultivation of Indigenous Ethnic Groups in the Central Highlands - Publishing House. Sociocultural. 4. Dao, B.M (2010), Organization and Activities of Villages in Sustainable Developmen in the Central Highlands - H: Social Science. 5. Dao, B.M (2011), Development status of the Central Highlands and Some Solutions for Sustainable Development - H: Social Science. 6. Dao, B.M (Editor), Lan, B.T.B (2005), Poverty Situation and some Solutions to Poverty Reduction of Ethnic Minorities in the Central Highlands. H:Social science. 7. Decision No.172/2007 / QD-TTg dated November 16, 2007 of the Prime Minister approving the National Strategy for Natural Disaster Prevention, Response and Mitigation to 2020; 8. Hanh, B. (2006), Early Warning, Good Prevention, Timely Remediation: 3 Factors of Disaster Mitigation. 9. Hoang, N.H (2009), State Administrative Solutions for Forest Protection and Sustainable Development in the Central Highlands 10. Central Committee for Flood and Storm Control (2014), Overview of Damage caused by Floods, Flash Floods, Landslides and Prevention Direction in Recent Years, Online Conference on August 20, 2014 of the Central Committee for Flood and Storm Control. 11. International Cooperation and Research Center – CECI. Sharing Experiences in Vulnerability and Capacity Assessment (VCA) under the Project “Building Capacity to Respond and Prevent Natural Disasters for Vietnamese Upland Communities”, International Cooperation and Research Center – CECI 12. Trung, L.T (2003), Disaster Preparedness Community - H: Medicine, 2003

13. Tien, N; Tuan, N.D (2001), The Disasters of the 20th century- H: Youth. 14. Tuong, L.V (2008), Discussing some New Measures to Adapt to Climate Change. Journal of Natural Resources and Environment, February 2008. 15. Tiem, N.V (1998), Investigating and Evaluating the Impact of Socio-economic Development on the Lives of Indigenous Peoples in the Central Highlands in the Reform Years (phase II). 16. UNDP funded SCDM project Institutional capacity building for disaster risk management in Vietnam, especially risks related to climate change” was established in accordance with Document No.1568/TTg-QHQT September 22, 2008 by the Prime Minister. Loss Equation. Soil Science Society of America Journal, volume 50, pp.1294 - 1298.

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Adaptation of the Ethnic Minority Communities with Natural Environment and Climate Change in the Northeast Mountainous Region of Vietnam

Duong Quynh Phuong1, Nghiem Van Long2, Nguyen Phuong Anh3 1,2Lecture of Geography's Faculty, Thai Nguyen University of Education 3Student of Business Administration's Faculty, National Economics University

Abstract The Northeast region of Vietnam is residence area more than 30 ethnic groups, of which ethnic minorities account for over 50%. In recent years, climate change has strongly affected people's lives. However, because ethnic minorities have their livelihoods mainly based on natural conditions and natural resources, in the process of living and developing, they have adapted to the natural environment and the affection of climate change. The results are obtained by synthesizing articles on climate change and indigenous knowledge of ethnic groups in books and newspapers; combined with actual documents and survey results in some localities. This article introduces the most basic information about the theoretical framework related to research direction and climate change adaptation of ethnic minority communities in the northeast mountainous region of Vietnam. The research results show that the Northern mountainous area is always heavily affected, with the most damages of life and property due to climate change. Therefore, relying on community, exploiting indigenous knowledge in using and protecting natural resources, coping with climate change will be the scientific basis for giving suitable solutions to minimize the impacts of climate change, ensuring livelihoods for people, towards the goal of sustainable development. Key words: Adaptation; Climate change; Ethnic minority; Mountainous; Northeast

1. Introduction Climate change is one of the biggest challenges with humanity in the twenty-first century. Climate change has been and will be seriously impacting production, life and the environment all around the world. For Vietnam, climate change has affected many regions, including the northeast mountainous region. The phenomenon of climate change in many localities in the Northeast mountainous has been negatively affecting the lives and livelihoods of the ethnic group (IMHEN&UNDP, 2015). In recent years, extreme phenomena tend to be complicated and change both the frequency, intensity, and extent of damage such as landslides, flash floods, tube floods, rock mud floods, heavy rain, droughts, bad cold, ... In the face of that situation, localities need to have plans to cope with climate change in accordance with regional characteristics. This is a difficult and complex task which requiring a lot of research and finding suitable solutions. For ethnic minority mountainous areas, it is very important to clearly identify the people's adaptations to the natural environment and difficult conditions in mountainous areas, and to minimize the negative impacts of climate change.

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Among the ethnic minorities in the Northeast, the ones with a large population are: Tay, Nung, Mong, Dao, Thai. Therefore, within the content of this article, the authors focus on analyzing the adaptation with natural environment and impact of climate change of some ethnic groups which accounting for a high rate of the total population of the ethnic minorities of the Northeast. 2. Methodology 2.1. Data sources After identifying the research problem, the authors have collected, codified, and analyzed relevant documents from many different sources, including: data used in books, textbooks, monographs on indigenous knowledge of ethnic groups and response to climate change, workshop reports on climate change, documents on ethnic cultures and indigenous knowledge of ethnic groups. In addition, the study is also based on the database of surveys and actual surveys in some areas in the region. Based on the application of scientific methodology of dialectical materialism, historical materialism, scientific geographic methodology, this study uses the following main research methods: (i) Collecting, processing and synthesizing documents method: books, newspapers, specialized magazines, works, research topics that have been accepted and other scientific works related to the field of indigenous knowledge and climate change; (ii) Field method: conducting fieldwork, observing and interviewing local people in the northeastern mountainous region about using land, producing agro-forestry and protecting natural resources, adaptation to the natural environment and the affection of climate change. Documentation and actual observations are analyzed and synthesized in combination between interpolation and extrapolation; (iii) Expert method: During the study, the authors consulted with many researchers in the fields of environment, climate change, cultural, researchers, ethnographer and geography. 2.2. Data analysis Data analysis methods such as statistical methods, data description and analysis are used by the authors to study the indigenous knowledge and experience of some ethnic groups in adapting to the natural environment and respond to climate change. 3. Theoretical framework 3.1. Overview of indigenous knowledge Over the last few decades, indigenous knowledge has been of interest to scientists and managers. An international network of research and use of the indigenous knowledge was established in 1987, through the research center of indigenous knowledge for agricultural development at Iowa State University, USA. Currently, there are over 3000 experts in 124 countries around the world working in the field of research of indigenous knowledge. There have been many research works on the indigenous knowledge in most of the world; Indigenous knowledge is considered as an indispensable part of the sustainable development strategy, at the same time, the indigenous knowledge is increasingly playing an important role in socio- economic development projects in mountainous areas. Article 22 of the Stockholm Principles (Conference "Environment and People") states: "Indigenous people and other communities of local have an important role in development and management environment through their indigenous knowledge and traditional customs. Countries should recognize and support appropriately their cultural identity and interests, helping them to participate effectively in sustainable development”. Countries participating in the Convention on Biological Diversity also commit that: “Many indigenous communities and local communities are tightly bound to

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biological resources, and countries must use using their own knowledge to protect and sustainably use biodiversity. Countries must protect and maintain such indigenous knowledge and local and promote the wider use of this knowledge. In Vietnam, the study of indigenous knowledge of ethnic groups in the management and use of resources in mountainous areas has received special attention. Regarding the role of ethnic communities and indigenous knowledge of the ethnic groups in the field of management and use of natural resources in mountainous areas, there are works: “Indigenous knowledge of upland people in agriculture and management nature resource” of the Vietnam Forest Science Institute (1998); The Center for Forest Ecology and Environment has translated the full text of the book: " Handbook: Gathering and using indigenous knowledge" (Recording and using indigenous knowledge: A manual) of the International Institute for Rural Reconstruction (IIRR). edited by Everlyn Mathial in 1996. Because the indigenous knowledge has a very high specificity, the experiences of an ethnic cannot be considered to represent an ethnic group or a large territory. Therefore, up to now, there have been many studies on indigenous knowledge with the use of resources of many ethnic groups in different areas. The management network and sustainable development of mountainous resources under the Center for Resources and Environmental Studies - Hanoi National University has many research topics on the indigenous knowledge of ethnic minorities in the Northeast, Northwest, Central Highlands. Besides the majority of authors approach the problem from a macro perspective, some network members approach the problem from the perspective of a community combined with practical local experience. Outstanding is the research work: "The role of the community of northern mountainous ethnic groups in the use of forest land resources" by Dr. Vuong Xuan Tinh, in which the author has affirmed: talking about the role of the community is to pay attention to its self-governing role on the working basis of customary laws; Customary law is considered as a tool to control the activities of a population unit, depending on the social context, how much this tool affects. In-depth research on the indigenous knowledge of ethnic minorities such as the Mong, Dao, Tay, Nung...representing ethnic groups in low, middle and high belt in response to Climate change in mountainous areas currently has no research works, so this is a new and practical research direction. 3.2. Fundamental concepts 3.2.1. Ethnic communities The community of ethnic groups is understood as a concept arising from the combination of more than one to many ethnic groups in a certain territorial space. Each ethnic is formed and developed in certain historical conditions, with basic characteristics: the same language, cultural characteristics, territory of residence and national self-awareness. All form an ethnic community sticking together in traditions, duties and interests (Duong Quynh Phuong, 2010). 3.2.2. Ethnic minority In the world today often use the terms: Indigenous people (Aboriginal people, native people), Indigenous ethnic minorities, tribes, clan, ethnic groups, ethnic minorities...In Vietnam today, the term ethnic majority and ethnic minorities are being used. The term "ethnic minorities" refers to those with a few populations, accounting for a low proportion in the correlate comparison of population in a multi-ethnic country.

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3.2.3. Mountainous area In Vietnam, most of the land is sloping mountain, in some places very sloping and plateau. The terrain is complex and diverse which has many rivers and streams forming a great divide, it is the main living place of ethnic minorities that is mountainous. Criteria: 2/3 of the land area of them has a slope over 25o (forest and forest land); Socio- economic develop more slowly compared with the delta; Production land has both water fields (flat valleys, terraces) and production on sloping land; The life has many difficulties, the transportation is not as favorable as the delta; Residents are ethnic minorities and ethnic majority living intermixed or ethnic minorities living together or living separately from each ethnic group in a mountainous area. 3.2.4. Climate Change Climate change is a change in the state of the climate that can be determined by changes in average value and / or changes in its properties, and in a long period, usually a few decades or longer. Climate change can be due to internal natural processes or external influences, or continual changes because of human to the composition of the atmosphere or in using land. Climate change leads to changes in the frequency, intensity, spatial scope, period and duration of weather phenomena and extreme climate phenomena and harsh climate which has never seen (IMHEN&UNDP, 2015). 3.2.5. Adapt to climate change Adaptation is a very broad concept and when it applies to climate change field it is used in many cases. Adaptation with climate is a process by which people reduce the adverse effects of climate on health, life and use the favorable opportunities that the climate offers. the term adaptation means correcting or passive, or reacting positively, or being prepared in advance, and is given with meaning of minimizing and improving the harmful effects of climate change (http://occa.mard.gov.vn). 4. Results 4.1. An overview of the ethnic minority communities in the Northeast mountainous region of Vietnam Northeast is the headland of the country; the north and northeast of the region are bounded by the Vietnam-China border. In the west and the southwest, the Northeast region lean against the Hoang Lien Son mountain range, the South contiguous the Red River Delta. This area includes 11 provinces: Ha Giang, Cao Bang, Lang Son, Lao Cai, Bac Kan, Quang Ninh, Yen Bai, Tuyen Quang, Thai Nguyen, Phu Tho and Bac Giang. Most of the topography of the region is hill and mountain, divided complexly and diverse with valleys, high mountains and plateau. Along the Vietnam-China border of the Northeast sub-region are stone highland Dong Van - Lung Cu, many mountain ranges high over 1.500 meters such as: Tay Con Linh (2.419 meters), Kieu Lieu Ty (2.402 meters), Mau Son (1,541 meters), Nam Chau Lanh (1.506 meters), Tam Dao (1.591 meters) (Duong Quynh Phuong, 2010). About ethnic communities, this is the living area of more than 30 ethnic minorities, belonging to language groups such as: Mon - Khmer, Mong - Dao, Tay - Thai, Tang - Mien, Viet - Muong, Ka dai...The residence and production activities have specific characteristic of each ethnic group. Also, low belt resident, The Muong and Thai live in stilt houses, but the structure of stilt houses of each ethnic group is also different. The Tay and Nung live in traditional stilt houses, but in many localities, especially in the border areas, they live in land houses and wall make by

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soil. The main production activities of the Tay, Nung, Thai, and Muong...are agricultural production and farming. The middle and high belt ethnic groups usually live in land houses, there are also some ethnic groups living in stilt houses. The Dao and H'mong often live in villages on relatively high elevations (over 500 meters), scattered and clustered with some roofs tottery on slope of land mountain or stone mountain terrain, but it is necessary to have water sources and terraces. The Dao and Mong live on the ground floor. They usually made by wooden planks, roofs are made of thatched leaves, and sword materials in place. The main production activities of these ethnic groups are farming in mountain valleys, cultivation on sloping land, terraced fields and upland fields. 4.2. Adaptation of ethnic communities to natural environment and climate change 4.2.1. In the field of farming and using land Geographical circumstances have that cultivation system. To survive and develop sustainably, each ethnic group, each sub-region has its own specific farming system, showing the adaptation of each ethnic group to ecological environment. Here are some typical production models of ethnic minorities in the Northeast region: * Model of planting trees on sloping land of the Dao ethnic group In recent years, the impact of climate change on agricultural production of the Northeast region in general and of areas where many Dao ethnic groups reside in particular are very clear. The amount of rain in a rain increases but the rainy time is short, leading to a large concentration of water in a short time, the amount of surface runoff increases, causing tube floods, flash floods, landslides also increase. Large surface currents also lead to soil on agricultural areas being eroded, leading to discoloration, difficult to cultivate or cultivate but inadequate productivity. Severe cold, irregular colds, leading to death of some winter crops, in addition it also effects to cattle. To adapt, the Dao people have a cropping system on sloping land suitable for natural conditions and at the same time also the adaptation to limit the impacts of climate change. Since ancient times, the Dao people know very well how to exploit the strengths of hills and forests in forestry production activities. On the sloping land, the Dao have planted long-term industrial crops such as cinnamon, tea, bamboo shoots...(Ha Thi Thu Thuy, Duong Quynh Phuong, Vu Nhu Van, 2012). Cinnamon are indigenous trees of the Dao people in some provinces in the northeast mountainous, in the traditional society as well as today, cinnamon has a particularly important position in both cultural and spiritual life, production activities of the Dao people here. In sloping land, the planting of cinnamon has many advantages thanks to forest soil with a thick rotten layer and a thick humus layer, good moisturizing retention, and loose soil. Cinnamon has high economic value to help people reduce poverty, get rich, and contribute to protecting the natural environment, keeping land and water in sloping mountainous areas, limiting the impacts of Climate Change; preserve and develop the diversity of precious genetic resources of indigenous plants. The traditional way of planting of the Dao is to grow cinnamon in the garden of the hill around the house intermingled with fruit trees. After Tet holiday, when the spring rains come, the Dao grow cinnamon. Cinnamon is grown in the hilly garden with dense density, then pruned until the 5th year leaving pure cinnamon forest. The Dao have an inherited secret in planting cinnamon, that is planting cinnamon overlapping in the forest so that one tree can be harvested, the other begins to grow, so the forest has just been harvested all year, with new intercropping, both contribute to ensuring that the soil is not eroded. The Dao also often remind their

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descendants that they should not leave bare land after the cinnamon harvest, they plant cassava, then weed and alternate new cinnamon, they also plant bamboo shoots alternately in the empty time to increase income and keep the land from being fallow with the experience of cutting down bamboo shoots to quickly grow and retain soil. - Tea tree: is also a traditional tree which was popularly grown in the Dao villages. Previously, tea tree grew naturally in the forest, tall trees just need to break the branches to get the leaves to drink. Their way of growing tea is also very simple, that is to grow tea in rows according to contour lines, just cut 1-2 times to the ground with each hole, then drop 4-5 tea seeds in, cover with soil. Tea trees planted by the Dao people never fertilize or spray pesticides, but always let the plants grow naturally, only clear the grass and clear the plants for growth. Tea tree is very useful in soil protection, suitable for topographical conditions, climatic conditions, mountainous land, for high productivity and quality. - Bamboo shoots: are plants that are able to adapt to sloping soil conditions, cover bare land and bare hills, do not have pests and diseases, give high productivity, quickly harvest and bring high economic efficiency for Dao people. According to the experience of the Dao people, to get delicious bamboo shoots, from the beginning, when planting bamboo, it is necessary to dig a hole about 6 square inch deep, fertilize the muck and then cover the soil, then bring seedlings to plant. Bamboo bushes are about 3-4 trees. In the bamboo shoots season, people often water the plants so that the plants can grow and develop well, many bamboo shoots and fat trees, that can be easily to consume bring high economic efficiency. The model of growing perennial industrial crops on the sloping land of the Dao ethnic group in the northeast mountainous region is considered as one of the typical models that can be replicated in regions with similar natural conditions. Because of the effectiveness of the model is: firstly, economic efficiency, people's living standards have been improved and advanced; secondly, environmental efficiency, contributing to limit the impacts of climate change. * Model of cultivation on rocky mountains - behaving intelligently to nature of the Mong The H'mong mainly live in high mountains, where the terrain is rugged and mountainous, their livelihood is mainly based on agricultural cultivation, with the farming method of rock-hole cultivation, shifting cultivation and terraces. Although the weather, the hydrological regime and the terrain are craggy, the Mong in highland soon learned about the farming techniques adapted to the difficult natural conditions of the rock mountainous areas. The H'mong people call shifting cultivation by a general word is "te", that is the land plots caused by burning forests, cutting trees in the way of "dao canh, hoa chung". "Tetia" is a relatively flat shifting cultivation with little rocky, relatively favorable for cultivation, and high crop yield. "Te xa" is a sloping shifting cultivation or a shifting cultivation culture with a rock hole, divided into two types: "Xua te" is a type of shifting cultivation with many rock cavities available a little soil. "Dau te" is a type of shifting cultivation consisting of rocky cavities about 3-4 square meters wide, in places where the rock is wide, the surface is relatively flat, the Mong here have to bury soil to pour it on the surface and cultivate like "Xua te". They are very good at distinguishing rock fields from shifting fields. According to experience, they think that up to 80% of rock field is rock, 20% is soil; in contrast, soil field is 80% soil, 20% is rock. The Mong have quite unique experience in choosing a field. According to their experience: the place where the shifting cultivation is chosen must be sunny, not too slope; land for shifting cultivation often has many well-grown trees; The black and loose soil is suitable for growing maize. If the land is yellow, then cultivate the field. According to the experience of the H'mong here, the meat

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soil is used to grow food crops; The gravel soil for planting peanuts, beans, and maize will give high productivity. The shifting cultivation they take place in the dry season. According to people's experience, they create a space of about 2 meters. Burn terrace field opposite the wind, burn from the foot of the hill, let the fire spread, to avoid forest fires. With the terrace field is long and have much soil, the rocky banks are high embankment, running along the low side of the terrace field, with a large area that can be made into terraced fields. Stacking rock banks requires a lot of effort and technology to stack the overlapping rocks so that the rocks are fit, creating stability and the soil does not erode in the rainy season. Stone hole farming: from dry cat-eared rock holes, they carried on their backs each pile of soil and then picked up small handfuls to fill the rock hole. Along with that, people not only stack stones in large areas, on the upper slide of the terrace field, where there are many rocks that cannot be leveled, they often embank themselves into closed rock hole, then carry more soil poured into it, each hole can usually only grow 1-2 maize plants. Stacking rock banks requires a lot of effort and technology to stack the overlapping rocks so that the rocks are fit, creating stability and the soil does not erode in the rainy season. Thanks to the creation of rocky hallow cultivation and corn cultivation on rocky fields, and the intercropping of crops, people here are able to adapt to special natural conditions to stabilize their lives. The rocky hallow farming method is considered as a testament to the ability of the Mong people to adapt to difficult upland geographic environment. * Experience in land use of the Tay and Nung ethnic groups Tay and Nung are two of the ethnic minorities with a large population in the Northeast region. Up to now, the main production activities of the Tay and Nung people are mainly farming. Table 1: The main using land types of the Tay, Nung Order Land types Type of using land Kind of using land 1 Filed land 2 crop rice land Spring rice - season rice 1 crop rice, 1 crop Spring maize - season rice of crops land 1 crop rice land Empty - season rice Land for crops Maize, bean, potatoes, tomato, cigarette 2 Terrace filed land Filed for crops Maize, peanut, soybeans, green beans, white beans, taro 3 Land for perennial crop Land for fruit tree Plums, tangerine, orange, pear, custard apple, peach... Garden land Vegetable, tubers, fruit, cassava, ginger 4 Forestry land Plantation forest Anise, cinamon, Tai Tuong glue, eucalyptus, bamboo... Natural forest Wood clenched, wood nail, ironwood... Source: Authors survey results Through reality surveys in Lang Son, Bac Kan and Thai Nguyen provinces, during the using land process, most of the family of Tay ethnic people conduct land classification. People can rely on various factors such as soil porosity, soil texture color, location of land plots, or tree species that

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usually grow...to classify and chose trees are considered. priority planting. The most common is to divide field land into three types: good, average, and bad; The cultivated land is divided into 4 types: good, medium, bad, very bad. Each type is selected for planting several suitable plants. Soil classification is concretized by the following table: Table 2: Classify terrace fields land being cultivated Color, structure Indicator Type Indicator tree Priority crops of land animal Good Brown-black; fluffy Worm (++) "Co chi" Sticky maize Cricket (++) Plain maize Potatoes Medium Brown-red; less fluffy Worm (+) "Co chi", "Co Plain maize Cricket (+) may", "Co ga" Pea's tree Bad Red; high adhesion Termite (++) "Co tranh" Pea's tree Ant (++) "Co ga" Cassava Very bad Balck; dried-sporadic Termite (++) "Co gung" Cassava (-) Ant (++) "Co nghe" Source: Authors survey results Table 3: Classification of field land Type Characteristics Indicator tree Priority crops Good Brown-black; deep fertile floor "Beo tam" Sticky rice "Co bo" Plain rice Medium Brown-red; medium fertile floor "Co gau" Plain rice "Co mat" Bad Silver-black; shallow fertile floor "Rong duoi cho" Plain rice (-) Source: Authors survey results Note: (++): Lots; (+): Many; (-): Little After land classifying, the Tay ethnic group arranged suitable crops for each soil type (Duong Quynh Phuong, 2010): - Good soil types are preferred to grow maize, especially sticky maize. In addition, potato varieties can also be grown in this soil type. - Medium soil is usually planted with tedious maize and legumes, bad types are planted with legumes, cassava. Particularly very bad land is often not able to plant anything or only cassava. The Tay, Nung ethnic groups is residents who presented a long time ago in the northeast mountainous region, they have chosen for themselves favorable areas for living and production. Their cultivated areas are mountain valleys, streams, fields in the middle of mountains, on low sides of hill, next to favorable water and land. During the development process, the Tay and Nung ethnic groups here have accumulated valuable experiences in agricultural cultivation, in improving and protecting land resources, adapting to natural conditions and the effects of climate change.

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4.2.2. In the livestock sector In livestock cattle and poultry, the most of ethnic minorities in the northern mountainous and highland areas still breed mainly in the form of natural grazing. Cattle and poultry are allowed to roam freely all day on the hill, in the terrace field or on the grass near the house. Due to the difficult economic situation, the people do not have the expense to build solid stables, so the stables for livestock are very simple. Therefore, in the face of abnormalities of climate, weather such as cold, damaging cold or prolonged hot sun...the ability to withstand the effects of weather on cattle and poultry is very little. However, ethnic minorities have a lot of experience in caring for, preventing and curing animals. It is can be demonstrated through reality of some ethnic groups of the Northeast. Because the lives of ethnic minorities are heavily dependent on the forest, they are famous for curing ways from herbal medicine which collected in the forest. When the animals get sick, they hardly use veterinary medicine but only treat with forest trees based on knowledge passed down in the family, community or knowledge accumulated over time. Treating stomachache, defecating liquid feces for pets, people often use Tang Tai Nua trees (also known as Tang Tanh trees, Tang Tai Meng, Dao translated means green plants) to boil water for pet’s drink definitely cure. Tai Nua has a large stem, consisting of two types, one is larger, has a smooth face and has feathers under the young leaves, when cutting down, creat red sap is less used. A smaller stem and leaf, less sap. Dao people often take leaves and bark to boil water for pets to drink. When it is heated, the water smells more unpleasant than the first, but the therapeutic effect is better. For pigs, you can take green sapodilla, crush them to get water and mix with dilute salt water for pigs to drink. Treating of scabies and boils: take the Tang Tai Nua with small stems and leaves, with a pungent smell to grind the pets. In addition, ethnic minorities often take forest banana flowers, chopped, crushed to get water to bathe the animals, the scabies will heal very quickly. Treating foot-and-mouth sores for buffaloes or being bitten by insects, Dao people often take the fruit "To dua", this is a fruit nearly as big as a small bowl, causing itching, just peel the fruit to get the inside part to wear to buffalo and cow will be cured. Pets are bitten by snakes when released in the forest that find out intime will use "Bac ha" to cover the wound. Due to the climate's characteristic of the Northern mountainous region that has a cold winter, the places where ethnic minorities live often have extreme weather phenomena such as frost, cold and damaging cold ... In this season, Cattle are easy to get cold, hard to legs, spread, the risk of paralysis and death is high, so to prevent the cold, people often clean up their cage, cover them, add dry banana leaves to line the cages and burn firewood or rice hulls, add a few soapberries in front of the cage door to prevent cold for cattle and poultry. People often take betel leaves then crushing and boil water to squeeze the buffalo's feet or use the old betel leaves with salt to cover the bandage, combined with drinking betel leaf juice. Betel leaves are no longer used frequently to wash pets' wounds because it is a popular plant. When the chicken showed signs of being sick, the people fed raw garlic. The above indigenous knowledge has extremely important implications for ethnic minorities in livestock cattle and poultry and coping with erratic and complicated changes in the climate in the North.

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4.2.3. In the field of forest protection and development In fact, climate change affects resources in many different ways. With regard to forest resources, the most obvious impact is that the forest area is reduced due to extreme weather events. In many localities in the northeast mountainous region, the natural forest area is seriously decreasing due to flash floods, landslides, cyclones, forest fires ... Along with that is the decline in biodiversity due to the loss of forest area. As for the local people in the highland mountainous areas, in many generations, they have lived near the forest and depend on the forest, so they have valuable knowledge in forest protection and development. For example, for the Dao ethnic group, they have customary laws on forest exploitation and protection. Nearly every village has forbidden forests (ma poong kim), usually these forbidden forests are in the watershed water slot of the village. According to the custom, in this forbidden forest, villagers can only come on the occasion of performing forest worship rites, absolutely not cutting, releasing or tying buffaloes in the forbidden forest, if anyone violates this taboo, they will be fine pig, rice, or white silver. In addition, the Dao also have a custom when building a family, the young couple must grow bamboo, melaleuca or cinnamon. When a child is born in a family, villagers and relatives visit each person to bring a cinnamon seedling to plant for later as a property or dowry for the child (Duong Quynh Phuong, 2014). Generations of the Dao people also passed on by word of mouth regulations when exploiting forest resources. “It is forbidden to clear old forests for shifting cultivation, to build houses without cutting big trees, to cut one tree to plant seven trees. Cutting big trees to leave seedlings, so that the forest will not be lost...”. As an ethnic group living in the middle and highlands, their life for many generations depends closely on nature, so the Dao people understand very well the role of watershed forests with life and crops. It can be said that forests contribute to nourishing people and when each person dies, the forest welcomes and cherishes like a mother. The Dao people have a saying: "Nam kim ui, pay kim piec" (That is: Live in the forest, die in the forest). Forests provide people from bamboo shoots, vegetable tops, mushrooms, medicines ... to the pillar to build a house, a coffin upon death ... The protection of forests, especially watershed forests, sacred forests means duty and responsibilities of each person have become the customary law of the village. Dao people talk about forests, sacred forests and each person's responsibility to protect forests in a specific way, everyone understands: “A tree with feathers (meaning an old tree), like the old with beard, green forest, is the watershed forest, the water-head forest, the forest of sacrifices, the forbidden forest, the sacred forest...Protect the forest for today, for tomorrow and for forever generations: “There are forests, there are trees, with ripe fruit. Birds, bees, butterflies, all kinds of things will come. If not, butterflies and birds will leave. That is only natural common sense”. Forest in the mind of the Dao as the heart of the community, expressing conventions, customary laws and traditional cultural values that are worshiped and revered as with their ancestors. For the Hmong ethnic group, an ethnic group representing people living in highland areas, they have the custom of worshiping forests, almost every village manages a forest area or 2-3 villages sharing an area of worshiping forest. H'mong people consider the village's worshiping forest as sacred forest, so it is strictly protected according to the village's convention. This convention stipulates: It is strictly forbidden for all villagers, including outsiders, to go into the worshiping forest to cut down trees, take firewood, graze cattle into the forest ..., if anyone

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violates, they will be fined by money corn or rice is paid to the fund. Due to strict regulations and penalties on great economic value, no people violate the worshiping forest, so this forest is very well protected. Every year in January or February, people organize forest worshiping festivals. In addition to the purpose of praying for the help of the forest god, people can be safe with good crops, the village also stipulates that each family in the village must plant from 1 to 5 trees enter the forbidden forest area for better forest development. When going to the forest, when encountering big trees of rare and precious wood, the family that finds out first will set up an altar at the foot of the tree. They often worship these big trees on Tet holiday, January 5th with the meaning that the tree will shield the wind and storm, keep the soil, preserve water and bring luck to family and brothers in the clan. This belief has special significance in the issue of protecting forest resources, because each altar set up under a big tree in the forest means that a precious tree of the natural forest is protected and there is life. With forms of forest management and protection, especially sacred forests and watershed forests of upland ethnic minorities, this has achieved the dual goal, that is: conserving genetic resources, ensuring biodiversity form at the same time also has a very good effect in reducing emissions. Protected forests will increase water storage capacity and reduce wind speed, thereby mitigating natural disasters caused by climate change. 4.2.4. In the field of using natural water region The ethnic minorities in the Northeast, because their lives depend mainly on natural conditions, each ethnic group has a very special way of using natural water. Below, the group of authors would like to mention the experience of using natural water resources of the Thai people. The Thai ethnic minorities, whose livelihood activities based on traditional agricultural and forestry economy have created diverse ethnic knowledge store, which is drawn from production experiences based on natural resources and specific ecological environmental conditions of mountainous geographical regions. The Thai settled into villages in fertile valleys along rivers, streams, and fields between mountains. They reside in stilt houses in clusters, several clusters into one village with about 40 to 50 roofs. Each Thai village has many different families and lineages, with arable land, residential land, and grasslands for breeding. Thai villages often retreat to the foot of the mountain, where the slope is gentle. The Thai are mainly agricultural residents, cultivating water fields in the valley. By exploiting the valley, taking advantage of the alluvium of the rivers in the region, the people here have created fertile fields. In the wet rice fields, the Thai ethnic group is famous for its technique of leading water from the ravine into different high and low fields by the technique of "muong, phai, lai, lin" and water-wheel, also known as "pat nam", is the creation of a quite unique craft technique in the irrigation system. Methods of making "muong, phai, lai, lin": Digging ditch and banking "phai" is a popular method of using water for Thai people. This practice is used in flat fields, deposited by alluvium, or in large basin fields with rivers and streams flowing through. Banking "phai" is actually building dams across the water source, stopping water to bring water into the field. Combined with banking "phai" is digging ditches. This ditch system consists of a big ditch that leads water from "phai" in and a small ditch that leading water from the big ditch into the field. In order to regulate water when floods come from the source, to protect the "phai" safely, Thai people know that a short section of "phai" to discharge floods, this section is constructed in the form of a spillway and called is to "lai".

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When floods come back, water overflows to "lai", protects the "phai" safely and regulates the amount of water flowing into the ditch at a normal level, not causing flooding in the field. The method of banking "phai" and digging ditch are popular irrigation method with long-term effects. At present, this form of irrigation is still a popular and effective way of using irrigation water in Thai agricultural production. For tall fields, terraced fields, field in vertical slots cannot bringing water back from the source by banking "phai", digging ditches, the Thai have used the method of irrigation with "con-lin". "Con" is a form of automatically placing the water wheel in the stream bed at a steep slope, the water flows strongly, the stream bank is erect, taking advantage of the water force to turn the reel. On the surface of the reel, there is a tie on the bamboo tree tubes to scoop up water and run into gutter into the field. Lin is a form of using a trough made of bamboo tree as a water pipe from above sources. Lin is a method of irrigation in agriculture and includes daily water using by daily family living in vertical slot areas, with natural water sources in high mountains and near homes, near the cultivated areas. Using water troughs to bring water to home is a familiar way of using water of Thai people. From understanding the flow and natural water energy, the Thai have created a reel that takes advantage of the flow of water to bring water to the field at will. Depending on the high and low fields and the speed of the water flow, they make waterwheel. Building water-wheel rafts requires experience in choosing location and installation techniques related to the dry and flood seasons. The prominent residential feature of the Thai people is along the lowland valleys, where there are many rivers, streams and lakes, that is why the ethnologists classify the Thai as the residents representing the valley civilization. 4.2.5. Proposing some measures to strengthen the capacity of ethnic minorities to adapt to natural environment and climate change. In the current conditions of the Northern mountainous region, to respond to climate change and achieve sustainable development goals, it is necessary to pay attention to the following solutions: Firstly, in daily production and livelihoods, localities need to support people in ensuring crop productivity and output; must adjust production activities towards adapt to climate change; Cultivation and husbandry activities must be controlled to reduce greenhouse gas emissions and negative impacts on the environment. Secondly, preserve and promote the indigenous knowledge of ethnic groups in the use and protection of natural resources, cope with local climate change. To promote and preserve the indigenous knowledge, it is necessary to have a number of specific and practical solutions; in particular, to pay special attention to policies that prioritize investment, support ethnic minorities in economic, cultural and social development in order to improve their material and spiritual lives. Therefore, the people feel secure to settle down and settle in their land for a long time and that is the basis for promoting the indigenous knowledge. At the same time, enhancing measures to maintain and improve community cohesion, promote customary laws of the lineages and villages in the exploitation and protection of natural resources. Thirdly, from an education perspective, it is necessary to pay attention to educating the people about the impacts of climate change on all aspects of socio-economic life ... to help people increase their adaptability, coping with unusual rage of nature which is increasing, it is to raise

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awareness of all parts of society, including understanding and knowledge of possible risk, as well as proactive measures to prevent and respond. 5. Conclusions Whatever of the circumstances, people will also find ways to behave suitable for the natural conditions and environment in which they live. In the diverse economic activities of all ethnic groups, agro-forestry production based on natural conditions is still the decisive factor for the existence of the community. Currently, in the context of climate change, extreme weather phenomenon and natural disasters take place increasingly strongly and complicatedly. Before outside intervention / support, the people of ethnic minorities had to find ways to cope on their own to protect themselves, their family and the community. The initiatives they apply are mainly mobilized from indigenous knowledge gathered from many generations. Therefore, in the northern mountainous region of Vietnam, it is necessary to recognize the value and potential contribution of indigenous knowledge to reduce poverty and mitigation of the negative impacts of climate change. The localities in the northeast mountainous area also need to have plans, clearly define the specific tasks of responding to climate change for each sector such as: Agriculture, forestry and fisheries; water resources; land resources; industrial; transport...Along with that, it is necessary to raise awareness, understanding for people about climate change, knowledge about sustainable farming methods livelihoods adapt to climate change. based on indigenous knowledge for ethnic minority communities, building many models of agricultural production adapting to climate change in suitability with the actual local conditions. References 1. Duong Quynh Phuong (2010), Ethnic Communities with Using of Natural Resources (In the case of the Northern Midlands and Mountains), Culture Ethnic Publishing House. 2. Duong Quynh Phuong (2014), Impacts of Climate Change in the Highlands of Northern Vietnam: Situation and Response Solutions based on the Exploitation of Indigenous Knowledge of Ethnic Minorities, Research Journal Southeast Asia, No 8 (173)/2014. 3. Ha Thi Thu Thuy, Duong Quynh Phuong, Vu Nhu Van (2012). Hmong, Dao Ethnic Groups: A Multi-dimensional Perspective from Geography, Ethnography, History and Humanities Ecology in the Northern Mountainous Region, Culture and Information Publishing House, 2012. 4. IMHEN & UNDP (2015), Viet Nam Special Report on Managing Disaster Risk and Extreme Phenomena to Promote Adaptation with Climate Change, Natural Resources Environment and Cartography Publishing House. 5. MARD (2019). [Online]. The Concept of Adaptation with Climate Change. Available at: http://occa.mard.gov.vn/Giai-phap-mo-hinh/Mo-hinh-thich-ung.

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Impacts of Climate Change on Socio-economic Development in Vietnam Assoc. Prof. Dr. Le Thi Thanh Ha Institute of Philosophy, Ho Chi Minh National Academy of Politics Email: [email protected]

Abstract Vietnam is a developing country with low greenhouse gas emissions compared to the world average, but it is one of the countries most affected by the climate change. Recently, the impact of climate change on socio-economic development has been increasingly evident in Vietnam. The paper outlines several impacts of climate change on key aspects in Vietnam and recommends some solutions to mitigate the impacts of climate change on socio-economic development in Vietnam in the coming time. Keywords: Climate change, socio-economic development, Vietnam

1. Introduction Climate change is the change of the climate system (including atmosphere, hydrosphere, biosphere, lithosphere, geosphere) by natural and man-made causes in a certain period. Natural causes are due to the change in solar activities, changes in the orbit of the earth, changes in the position and size of the continents, changes in ocean currents and circulation in internal atmosphere. The cause is artificially caused by global greenhouse gas (CO2, CH4, N2O, ...) emissions that have continuously increased since the industrial revolution due to human activities, especially the use of fossil fuels for industry, transportation, agriculture ... Greenhouse gases have been accumulated for a long time, causing greenhouse gases, changing the Earth's climate. Recent studies have shown that the main cause of climate change is the human activities affecting the climate system causing climate change. Therefore, people need to take practical actions to prevent those changes. Climate change in Vietnam over the past time shows signs of high temperature rise, unusually long cold air, strong storms, heavy rain, rising sea levels, drought, desertification, desertification, forest fires, floods, saltwater intrusion, ... An annual assessment of the country’s most severely affected by extreme weather events in the 1997-2016 period, Vietnam ranked 5th on the Global Climate Risk Index 2018 and 8th on the Long-Term Climate Risk Index (CRI) (David et al, 2017). The total damage caused by natural disasters to Vietnam in the last decade from 2009 to 2019 is nearly 250 trillion VND and the loss of life is more than 2500 people (NCMF, 2019). The paper outlines some effects of climate change on key aspects in Vietnam and points out some solutions to mitigate the impacts of climate change on socio-economic development in Vietnam in the coming time. 2. Methodology The paper uses secondary data and documents collected from various sources. Synthesis, descriptive and comparative methods are used to analyse effects of climate change on socio- economic development in Vietnam.

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3. Results 3.1. Impacts of climate change on the development of agriculture and fisheries According to research by, Vietnam currently ranks first in the list of countries with endangered levels of damage to agriculture and fisheries caused by climate change, that is at red alert. In particular, the fishery sector alone lost about 1.5 billion USD in 2010 and this loss will increase to 25 billion USD by 2030 (Nhandan, 2020). According to the ADB, if the temperature increases by 10C, the rice yield will 10% reduction, this situation seriously threatens national food security and affects tens of millions of people. Climate change causes the temperature to rise, causing drought in agricultural development. In recent years, prolonged drought has led to desertification in some areas, especially in the South- Central region, coastal sandy areas and sloping lands in the midlands and mountainous areas, reducing the cultivated land area. affect crop productivity. Climate change makes flooding more frequent, causing difficulties in the process of agricultural production and aquaculture. Generally, in the period from 2000 up to now, there have been over 300 tube floods, flash floods, landslides, killing and missing nearly 1,000 people, many houses, traffic and irrigation works damaged. severely damaged, many tens of thousands of hectares of crops were flooded completely; hundreds of thousands of hectares of land were washed away, the land decertified for agricultural production, destroyed many irrigation systems and aquaculture areas. In particular, in 2019, the flash flood on August 3, 2019 in Sa Na village, Na Meo commune, Quan Son district, Thanh Hoa province, even though it only took place for 15 minutes, made 10 people dead and missing; 35 houses completely collapsed; Many hectares of crops were washed away, total damage estimated at 120 billion VND according to Quang Ninh Provincial People's Committee report in 2015. Over the past few decades, due to the impact of climate change, almost every year our country has had hail, with the most dozens of times, once hail on a large scale of thousands. km2. The Central Highlands and the Northwest are among the regions with the most hailstones. The areas where hail reappears are areas cultivated with crops of economic value, so they are easily damaged by hail. For example, hailstorms that appeared in early 2020 have severely damaged hundreds of hectares of crops. Across the country, nine people died, 37,630 houses were damaged, 21,635 hectares of rice fell and fell; 7,455 ha of crops are crushed and damaged. Total damage is 461 billion dongs. Particularly from April 22 to April 24, five people died; 6.403 houses were damaged; 321 hectares of rice were collapsed and fell; 1,470 ha of crops were crushed, damaged 71.5 billion VND with damage (NCIF, 2020). Saline intrusion in the coastal area is also shrinking agricultural land. In particular, saline intrusion in the downstream provinces of the Mekong River Delta in recent years has been relatively complicated and tends to be more and more severe due to the influence of El Nino. Salty drought has damaged many areas of rice, fruit trees, aquaculture, and vegetables, both agricultural production activities and daily life of the people are negatively affected. According to the National Center for Socio-Economic Forecasting, in 2019 - 2020, only in the Mekong Delta region, the 2019 season rice will lose 16,500 hectares, losing 14,000 hectares; Winter-spring rice 2019 - 2020 lost 41,900 hectares, lost 26,000 hectares; 6,650ha of fruit trees were damaged, 355ha lost completely; 8,715 ha in aquaculture lost (Thai, 2020). While Vietnam's agriculture accounts for 52.6% of the labor force and 20% of the country's GDP. The effects of climate change are and will increase unemployment, and at the same time, there is a risk of food insecurity.

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3.2. Impacts of climate change on industrial, transport, energy and tourism development Industries, especially coastal industrial zones, are severely affected by climate change. Storms, heavy rain, thunderstorms, hurricanes, floods and droughts increase in intensity and frequency, causing industrial works to deteriorate quickly, and costs for maintenance and repair to increase, affecting economic efficiency, health. For example, in 2015, in Quang Ninh province, heavy rains lasted from July 25 to early August 2015 were considered to have the greatest intensity and coverage in the past 50 years in the province. Rainfall in some places was over 1,000 mm, plus rainwater with no drainage or slow drainage, caused heavy flooding in many places and landslides in the form of severe mud and rock floods. heavy damage to many areas such as Cam Pha and Ha Long. As of early August 2015, 17 people had died; 32 people were injured; about 3,700 households, schools and clinics were flooded; hundreds of houses collapsed; 4,863.2 ha of rice and crops damaged; 2,258 damaged fish cages; economic infrastructure, badly damaged traffic; Coal industry drifted 300,000 m3 of rock, tens of thousands of tons of coal ... estimated damage was up to 2,700 billion VND, of which the coal industry lost more than 1,200 billion VND (Tinmoi, 2013). Unusual rain, storms, high temperatures due to climate change have damaged and degraded infrastructure systems and transport works, increasing repair and maintenance costs. The high temperature causes the bridges to deteriorate quickly due to deformation of the joints between the stretches and the train tracks. Rain, thunderstorms, floods ... delayed airways, railways and roads, causing great losses. Rising temperatures deplete currents, making transport by water difficult and damaging economic development. Climate change causes the temperature to rise, leading to an increase in energy consumption in some manufacturing industries as well as in the daily life of the population due to the need to use many equipment such as electric fans, air conditioners, and refrigerants. industry ... or water pump for irrigation of crops. Research by the Institute of Energy, Ministry of Industry and Trade shows that, when the summer temperature increases 10C, the load during 9-16 hours is 2.2% higher than the load at other times of the day. Yearly, the demand for energy also increases by nearly 1%, especially in the civil and commercial-service sectors. As the temperature increases, the efficiency of the steam turbine heat cycle decreases, resulting in a waste of fuel. Unusual storms and storm surge caused by climate change will negatively affect the operation and exploitation of power transmission and distribution systems, drilling rigs, oil and gas pipelines to the mainland, and oil supply. into the oil tanker. On the other hand, due to unusually large floods, the reservoirs of hydropower projects cannot be properly regulated, leading to an increased safety threat to the downstream area. Climate change causes rising temperatures and sea level rise, threatening the future of Vietnam's tourism in general and marine tourism in particular. The increase in temperature makes the hot season last longer. Meanwhile, the good time for foreign tourists to Vietnam is autumn, winter and spring, when the temperature is around 15 - 220C. Therefore, this has a significant impact on the revenue of the entire tourism industry. Furthermore, climate change increases extreme weather events, making it more difficult to organize sightseeing tours and outdoor entertainment. Tourism mainly includes leisure, entertainment and travel activities, so it depends a lot on weather factors. Therefore, if the weather is bad, the tour must be canceled, the tourism industry will lose revenue. Vietnam is a country with a long coastline, many beautiful beaches and a coastal area with many integrated ecosystems, so it has many resources for tourism development. However, climate change is making the sea level rise, accordingly, some coastal beaches may be lost, others are pushed deep inland, damaging cultural and historical heritages, conservation areas, ecotourism areas.

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3.3. Impacts of climate change on the development of society and public health Climate change is directly and indirectly related to social life and public health. In our country in recent years, the number of people losing their homes and falling into economic difficulties after each storm, flood ... is huge. Every year, hundreds of people die, go missing, thousands are injured, tens of thousands of houses collapsed, roof blown away, swept away, hundreds of thousands of houses are flooded, damaged by natural disasters, floods. floods, hurricanes ... with economic losses amounting to billions of dollars per year. Over the past 10 years, natural disasters have caused 4,305 deaths, 3,737 injured people, 138,000 houses collapsed, 1.4 million houses damaged, an average of about 1.4 million people per year in shortage. hungry. Total resources for the State's relief in the past decade were 280,243 tons of rice and 8,583 billion VND. The consequences of natural disasters caused by climate change not only stop there, their effects also exist after a long time, people's quality of life is seriously affected by lack of food, housing, health care, education is not guaranteed and the environment is polluted. Climate change in recent years has also negatively affected employment and labor income in most economic sectors, in which the agriculture - forestry - fishery sectors are most severely affected. Many workers have to change occupations, migrate to cities or industrial areas to find jobs, making it difficult for the social management process in urban areas, even causing disorder and security conflicts. migrants and localities, social evils arise, slums, hamlets, temporary houses, encroachment on sidewalks cause environmental pollution. The cost to solve these social problems is very expensive, with the participation of many branches and fields in society. Climate change is also the cause of environmental conflicts, social conflicts due to a sharp decline in cultivated land and depletion of water resources leading to lack of land and water for production. The same river, for local communities, is the source of fisheries, irrigation water and domestic use. But for some other groups of people in society, it is the body that develops hydroelectricity, or is a place to store waste products. Therefore, conflicts have occurred in many localities in recent years. Complaints and complaints due to environmental conflicts and natural resource conflicts are increasingly common. These conflicts are potentially causing social instability, political security disturbances if these conflicts are not resolved in time. Climate change is directly and indirectly related to people's lives and health. The direct impact of climate change on human health through the physical and energy exchange relationship between the human body and the surrounding environment, leading to changes in physiology, habits and abilities. the body's adaptations and responses to those effects. Indirect impacts of climate change on human health through pathogens, increasing the likelihood of outbreaks and spread of diseases such as influenza A/ H1N1, influenza A/H5N1, influenza A/H7N9, diarrhea, cholera ... Climate change increases the likelihood of some tropical diseases such as malaria, dengue fever, Japanese encephalitis, due to the increased growth and development of many types of bacteria and insects, disease-carrying hosts (flies, mosquitoes, mice, fleas, ticks). Human activities cause increasing greenhouse gas emissions, the ozone layer is destroyed, leading to an increase in the intensity of ultraviolet radiation on the ground, which is the cause of skin cancer and eye diseases. In particular, the whole world is now focusing their efforts on the epidemic of acute pneumonia caused by the new strain of corona virus caused by Covid - 19. The epidemic broke out in Wuhan city (Hubei province, China) in December 2019, now rapidly spreading globally with 215 countries with infected people. Number of Covid's victims - 19 increased day by day, of which hundreds of thousands died. Facing the Covid disaster - 19, many researchers around the

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world have been searching for the origin and cause of the epidemic. Experts all believe that the corona virus is not a product in the human laboratory. But the source of the infection is in the same common house - Earth - where we live. Due to the human overexploitation on the environment such as indiscriminate deforestation, exhaustion of natural resources, discharge into the environment with a lot of toxic substances, causing climate change, causing ecological imbalance, destruction. rupture of environmental security… is the source of SARS-Cov-2 virus. Recently, according to a report of the Inter-National Committee on Climate Change, it has affirmed that climate change also causes death and disease through the consequences of natural disasters such as tsunamis, storms, floods, drought ... According to the World Bank, Vietnam annually costs 780 million USD for health care due to climate change. Economic damage caused by climate change to human health includes costs of: medical examination and treatment, loss of working days due to sick leave, losses of family members taking care of the sick, losses loss of life and premature death. In addition, climate change also causes the annual society to deal with a large amount of the disease burden of the people. According to World Bank calculations, if we do not act, then the total costs and risks posed by climate change, equivalent to a loss of 5% of GDP per year. Considering risks and impacts with a broader amplitude, the calculated (annual) loss could be up to 20% of GDP or greater. In contrast, the cost of taking action to reduce greenhouse gas emissions, the cause of climate change, may be limited to only 1% annually. 4. Policy implications for mitigating the harmful impacts of climate change on Vietnam's socio-economic development 4.1. Climate change adaptation strategies The most important issue in preventing the damaging effects of climate change in Vietnam today is climate change adaptation. This is the process by which people adjust, either respond positively or precede, to mitigate the harmful effects of climate change. In Vietnam over the years, though, the country's priority goal has been to achieve rapid economic growth. But the Vietnamese government is also aware that controlling and mitigating the consequences of natural disasters is also a key issue and has developed an action plan for natural disaster prevention, fighting and mitigation. However, that action plan only focuses on immediate extreme climatic conditions, passively before the consequences of natural disasters rather than actively responding and reacting to climate change in the future. Therefore, in the coming years, we need to have adaptation options targeting the most vulnerable sectors of the country caused by climate change, including agriculture, forestry, fisheries, and quantity, travel, health, transportation ... In order to well perform the key task of climate change adaptation in each socio-economic field, in the short term, it is necessary to build capacity for climate and natural disaster monitoring and warning through expansion and development, modernize the hydro-meteorological monitoring and forecasting system in the direction of combining hydro-meteorological monitoring and forecasting with climate monitoring and warning; enhancing the development of information and data systems on climate and climate change for policy making and implementation of climate change response activities; continue to update and complete climate change scenarios announced before the period of socio-economic development plan formulation to integrate and timely adjust plans. Next, it is necessary to build the capacity to proactively prevent and mitigate natural disasters in accordance with the conditions of each region and region in the context of climate change by consolidating, upgrading and building new sections of weak sea and river dykes. ; planting

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wave-break forests, sand-shielding forests, and coastal mangrove forests to mitigate natural disasters under the climate change scenarios, especially in the Mekong Delta and coastal provinces; proactively prevent floods and droughts through flood control, flow regulation, planting and protecting watershed forests. Improve the infrastructure system's resilience to climate change. To change the structure of crops, animals and cultivation methods suitable to ecological characteristics of regions and localities in order to actively adapt to climate change; change livelihoods, jobs, ensure social security for people, strengthen the system of risk insurance in agriculture and fisheries, especially in vulnerable areas due to climate change. Review and adjust standards and regulations, develop strategies, master plans, plans on development of technical infrastructure, socio-economic, urban areas, residential areas, construction codes and standards suitable for climate change scenarios. 4.2. Climate change mitigation strategies This is a process of GHG emission reduction in line with the country's sustainable development goals towards low carbon. In near future, the model of production consuming a lot of energy and increasing greenhouse gas emissions will no longer be consistent with the general trend, requiring each country, including Vietnam to take deflation actions. greenhouse gas emissions. Therefore, the investment strategy for GHG emissions mitigation to limit climate change is necessary. To do this task well, in the coming years, Vietnam needs economical and efficient use of energy, development and use of new energy, renewable energy in industry, construction, and transportation. Promote the transformation of low-carbon growth models, restructure economic sectors to give priority to developing industries and fields with low energy consumption, step by step limit development of economic sectors. consuming a lot of energy, causing environmental pollution, low economic efficiency. Actively implement programs and projects on the development and use of bioenergy, new energy, research and technological innovation in socio-economic development. At the same time, promote greenhouse gas mitigation actions and strengthen greenhouse gas sinks by promoting sustainable agricultural techniques to reduce greenhouse gas emissions in agricultural production. Karma. Change agricultural farming methods, promote green agricultural production, ensure sustainable development, national food security and poverty reduction. Promote the regeneration and afforestation of coastal mangroves, protect natural grasslands, primary forests, marine ecosystems, and natural carbon-absorbing platforms. In addition, it is necessary to build a national greenhouse gas inventory system, supplement and perfect mechanisms and policies for periodic greenhouse gas inventory. Assess potentials and opportunities for GHG mitigation in accordance with the country's conditions and sustainable development goals. Prepare the necessary conditions to form a domestic carbon market and participate in the global carbon market. 5. Conclusion In order to well implement the tasks of climate change adaptation and mitigation, in the short term, it is necessary to strengthen leadership and direction of the Party committees and authorities at all levels, promote propaganda, education and promotion. awareness, forming a sense of proactive response to climate change and the sense of self-awareness to protect environmental resources among the people. Putting response to climate change and protecting environmental resources into the contents of the activities of the party committees, social unions, and education for students in the school. Disseminate propaganda on response to climate change in mass media every day. Integrate climate change response goals into village's conventions and contracts, internal rules of agencies, mass organizations and society. To

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socialize propaganda, education and training work on response to climate change and protection of natural resources and environment. Building a core force for awareness raising in all agencies and departments on climate change response. That party renews, supplements and completes policies and laws on response to climate change and protection of environmental resources. Develop a Law on Meteorology and Hydrology, Law on Natural Disaster Prevention and Mitigation, Irrigation Law, Law on Development and Use of Renewable Energy, New Energy, in line with the requirements of sustainable development of the country.

References 1. David, E., Vera, K., Laura, S. (2017). “Global Climate Risk Index 2018: Which Countries will be most affected by Getting extreme weather?”, accessed by August 2018. 2. National Center for Meteorological Forecasting (2019). Measures to Prevent Flash Floods and Rockslides. [Online]. Available at: http://tuyengiao.vn/, November 6, 2019. 3. Nhandan (2020). Hail, Thunderstorm caused 461 billion VND in damage. [Online]. Available at: https://nhandan.com.vn/. 4. Quang Ninh Provincial People's Committee report, (2015). Environmental Status Report in Quang Ninh. 5. NCIF (2020). Saline Intrusion in the Dry season 2019-2020 and its impact on Production in some Mekong Delta provinces. [Online]. Available at: http://ncif.gov.vn/ 6. Thai, T. H., (2020), Assessment of the Impact of the Extreme Climate under the Influence of Climate Change with Sustainable Development. Available at: http://hdll.vn/, dated 20/06/2020. 7. Tinmoi (2013). Vietnam Fisheries Suffered the Most Damage due to Climate Change. [Online]. Available at: www.tinmoi.vn

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Climate Change and Food Security in Vietnam

Dinh Thien Duc1, Tran Thi Duong Ngan2 1Faculty of Economics, National Economics University 2Graduate school, National Economics University

Abstract In the Asia-Pacific region, climate change and natural disasters have a very strong impact on socio-economic activities, cause several damages to production process, especially agricultural production, disrupt the food supply chain, and destroy resources. Recognizing this problem, the practice of ensuring food security and moving toward sustainable agricultural development in order to adapt to climate change are important issues for not only Vietnam but also the Asia-Pacific region and all over the world. These practices have an important meaning in ensuring inclusive development and improving social welfare for all people. Vietnam is one of the economies most vulnerable to climate change as annually it is facing many national- scale natural disasters such as droughts, saltwater intrusion, floods, prolonged cold, unusual prolonged, freezing, flooding. In this context, finding pathways off development is a priority to Vietnam. When we figure out the suitable pathways, we can turn the challenges caused by climate change into development opportunities of the agricultural sector. Keywords: Climate change, agricultural production, food security, Vietnam

1. Introduction Climate change is changes of regional or global scale in historical climates that arise from natural and/or artificial causes and lead to extremely disruptive but increasingly frequent impacts. Climate change has become a topic because of its impact on people's lives and the future of the world. In particular, it affects food security, livelihoods and social security very adversely and in many ways. Food security is widely understood as the availability of food in the world market (FANTA, 2003). However, the global food availability does not translate into household food security. This is because food in the world market may not be suitable for the poor and vulnerable, especially those in developing countries. On the other hand, Devereaux and Maxwell (2001) defined food security as the success of local livelihoods to ensure access to enough food at the household level. However, according to FAO (2006), food security is defined as a state where everyone, at all times, has physical and economic access to sufficient, safe and nutritious food, enabling them to fulfill your dietary needs and food preferences for an active person and a healthy lifestyle. There are many different aspects of food security. According to FAO (2008a), there are four main aspects of food security: food availability; access to food; using food; and the food system is stable or affordable. Interestingly, climate change affects all four aspects of food security. This means that the availability of food does not mean food security as it may always not be accessible and affordable for everyone and the community. As such, efforts to address food security issues must be comprehensive. Therefore, programs and projects designed to mitigate the adverse effects of climate change on each of the key components of food and nutrition security are key (Vogel & Smith, 2002; Clover, 2003). On the other hand, the concept of livelihood has been widely explained by the Department of International Development (DFID)

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of the UK and other organizations as well as researchers and individual developers. Livelihoods observed by Carney et al. (2000) includes the capabilities, assets, and activities required for a means of living. The Sustainable Livelihood Framework (SLF) developed by DFID (2001) identifies livelihoods as an individual or household profits and various factors influence the extent, maintenance and enhancement of these increases. Akudugu (2011) defined livelihoods as the ability of individuals and households to take care of health, education, food, society and culture and save money for future use. As a result, individuals, households and communities participate in a number of activities and strategies to make a living. Among the livelihood strategies and activities in rural areas is agriculture, which causes more damage from climate change. This assertion is in line with the observations of the Intergovernmental Panel on Climate Change (IPCC, 2007) that agriculture is highly vulnerable to increased frequency, severity and unpredictability of Severe weather-induced events caused by climate change such as storms, droughts, floods and rising sea levels among others. The IPCC further observes that globally, different models predict the moderate impacts of climate change over the next two decades suggesting that all regions will experience rising temperatures and pattern changes. Rain will affect agricultural production as well as food security and nutrition. However, opportunities may arise for producers in some countries because the effect of fertilization by carbon retention and potential expansion of arable land in temperate regions could increase the yields of some crops. Although early models predicting world food demand and supply in the twenty-first century often show that global food supplies will match or exceed global food demand for at least two to two. for the next three decades (Devereux & Edwards, 2004), terrestrial reality shows differently. One shortcoming of these models is that the scale of the models is very coarse and that conceal regional disparities is a major concern for food insecure areas (Stephen & Downing, 2001). Another shortcoming is that the models pay little or no attention to climate change, a major threat to food security in many parts of the developing world, largely dependent on production. Agriculture uses a lot of rain and labor (Parry et al., 1999, 2004; Döös & Shaw, 1999; IPCC, 2001a). Drawn mainly from the reports of the Intergovernmental Panel on Climate Change (IPCC) (e.g., IPCC, 2007) and the Food and Agriculture Organization (FAO) study on climate change and food security (FAO, 2008a), shows signs that the tropics will be most adversely affected by climate change. FAO and IPCC studies have predicted these results by showing how temperatures are rising and how precipitation patterns change, resulting in higher rainfall. According to studies by FAO and IPCC, rising sea levels will affect the livelihoods of the majority of the population living in coastal areas. As a result, it is clear that due to climate change, all aspects of food security and livelihoods can be at great risk in both temperate and tropical regions. The impact of climate change on food availability, accessibility, use and stability will ultimately be experienced differently, depending on location. For example, moderate warming (1 to 3°C increase) is expected to benefit crop and grassland yield in temperate regions, while in tropical and dry seasons like Asia it does. can have a negative effect, especially on grain crops. Warming of more than 3°C is expected to have a negative impact on production in all regions (IPCC, 2007). The supply of meat and other livestock products will be influenced by trends in crop production, as forage crops occupy about 25% of the world's arable land (FAO, 2008a). This paper seeks to examine the impact of climate change on food security and rural livelihoods in general in Vietnam. Vietnam's choice goes against the context that this is the most vulnerable part of the country in relation to these factors. The authors' articles are divided into four main parts. The first part is an introduction and overview of previous studies.

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2. Methodology The paper uses qualitative methods to review and summarize results on climate change and food security in Vietnam. In which, 2 main qualitative methods used include: (1) Document reviewing: This method is performed with the aim of gathering secondary data from previous reports or studies; (2) Secondary data analysis: The previous research results are compared and analyzed, then conclusions and policy recommendations, which are suitable to the current research context, will be proposed. 3. Results 3.1. Causes of climate change Climate change is a change in the climate system of the earth including the atmosphere, hydrosphere, biosphere, lithosphere due to many different natural and man-made causes. This phenomenon causes significant effects on many of the components and self-healing or reproductive capacity of many ecosystems on earth. Climate change determines the difference between the long-term mean values for a climate parameter or statistic. The average is performed over a defined period, usually several decades. Climate change is attributed directly or indirectly to human activities that alter the composition of the global atmosphere and contribute to natural climate variability in comparable times. According to the latest UN report, the causes of climate change are 90% human, 10% natural. After a debate lasting more than 30 years up to now, scientists have agreed that socio-economic development activities with an increasingly high rhythm in many fields such as energy, industry, transportation, Agriculture - forestry - fisheries and human activities have increased the concentration of greenhouse gases in the atmosphere, warming the earth, changing the climate system and affecting the global environment. Ratio of human activities to total greenhouse gas emissions (IPCC, 2007): electricity production 25.9%; Industry 19.4%; Forestry 17.4%; agriculture 13.5%; Transportation 13.1%; Trade and consumption 7.9%; Waste 2.8%. 3.2. Impacts of climate change on agricultural production and food security in Vietnam Vietnam is located on the Indochinese peninsula, fully located in the tropical climate, and is a leading country in rice export. Natural conditions have many advantages for agricultural development, especially wet rice cultivation. The people have gathered a lot of valuable experiences in production, have relied on the inherent conditions of nature to expand arable land, improve productivity through each season. Today, in addition to the experience, people have been applying many scientific and technical achievements to cultivation to improve their energy and output. With the great achievements of science and technology that have brought about many innovations, people's lives are improved day by day, but their harmful effects also have a significant impact on the environment. 3.2.1. The area of agricultural land is shrinking The increase in temperature is favorable for farming in temperate regions but reduces food production in the tropics. This is the largest agricultural area and focuses on feeding poor countries. The rising water level makes many lowlands and cultivated areas in the downstream of the river shrinking and salinity affected productivity and yield. Sea level rise makes many coastal and delta areas saline. Since then, the cultivated area is decreasing gradually. The UN's research results show that desertification is increasing at an alarming rate, double that of the 1970s. According to the UN, Vietnam will be the second country (after India) to lose a lot of agricultural

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land due to climate change. It is estimated that each year, our country loses about 20 hectares of agricultural land due to flying sand, flowing sand and hundreds of thousands of hectares of land degraded. According to forecasts, when the sea level rises to 1m, Vietnam will lose 5% of its land area, 7% reduction in agricultural output and 10% of GDP. In the Mekong Delta, in normal years, there are about 230,000 ha of land saline, and in drought years, there are about 744,000 ha (accounting for 18.9% of the Mekong Delta area). According to forecasts, when the sea level rises by 1 meter, 90% of the Mekong Delta's agricultural land will be submerged in seawater. 3.2.2. Lack of water Climate change causes high temperatures and changes in rainfall resulting in a great need for watering and leading to a shortage of water use. If the temperature increases by 1oC, the demand for watering crops will increase by 10%, making the irrigation capacity of the current irrigation works not enough. The average global temperature for the period 2015-2019 tended to be record high compared to any previous 5-year period, with a heat base of 1.1°C higher than the pre- industrial period 1850-1900 and 0.2oC higher than the period 2011-2015. According to research by Snnye Masile and Peter Urich (2009), in 2050 the cost of water supply to the livestock industry in Africa could increase by 23% due to the impact of climate change. In Vietnam, climate change leads to El Nino phenomenon, reducing rainfall by 20-25% in the Central region - Central Highlands, causing prolonged drought. 3.2.3. Increased epidemics Climate change changes the hydrological laws of rivers, causing drought. Changes in soil, water sources, and temperature will lead to changes in crop structure and season. Climate change also changes the living conditions of organisms, the loss or alteration of links in food chains and nets leading to the disappearance of some species, and the opposite is also an increased risk. all kinds of epidemics. The increase in temperature in winter creates conditions for the source of pests and diseases to grow faster and cause more damage. Climate change gives rise to a number of new strains and worms, causing harm to the production and preservation of agricultural products and foodstuffs. In recent years, diseases of blue ear, foot-and-mouth disease, African swine fever, influenza A-H5N1 in livestock and poultry have seriously affected the development of the livestock industry. The degree becomes more serious when these diseases spread to people and endanger human lives globally. Hotter earth temperatures increase insect densities. Many species of flies and mosquitoes that only grow in hot and humid weather are more favorable when their space and habitat are enlarged. As a result, areas at higher latitudes will appear colonies of flies, mosquitoes and insects that live in low latitudes. Many people who previously lived in cold regions are now confronted with a range of diseases brought by mosquitoes. Whereas in the tropics, the ease of adaptation and metamorphosis of bacteria and viruses will be the premise for new diseases that rarely appeared before. 3.2.4. Reduce productivity and output Climate change affects growth, productivity, planting seasons, and increases the risk of pests and diseases spread. Climate change affects the reproduction and growth of cattle and poultry, increasing the likelihood of pathogenesis and transmission. With the warming in the whole territory, the adaptive time of tropical plants expands and that of sub-tropical plants shrinks. Boundary of tropical crops shifted towards higher mountainous areas and high latitudes in the North, adaptive range of sub-tropical plants will be narrowed further. Climate change has the potential to increase the frequency, intensity, volatility and extremes of dangerous weather events. Storms, cyclones, storms and other heat and rain-related disasters such as hot and dry

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weather, floods, inundation or droughts, damaging cold, saline intrusion, pests, reduce productivity and yield. Research at the International Rice Institute (IRRI) showed that rice yield decreased by 10% when the minimum temperature increased by 1oC. According to a study at the University of Reading (UK), when the temperature rises only a few degrees above normal for a few days during flowering, pollination of wet rice, wheat, peanuts, and soybeans will decrease the productivity is very serious. Scientists estimate that a 1°C increase in temperature results in a 17% decrease in food yield. Consequently, food prices will rise, and hunger will rise in countries where 1 billion people today are undernourished. Therefore, competition for food supply between humans and animals will become more and more intense. The IPCC's assessment report on the impact of climate change on food crops shows that in the tropics, the increase in temperature will adversely affect yield by directly affecting the flowering and pollination period (1oC for wheat and maize, 2°C for wet rice), a rise of 3°C would cause extreme stress on crops in most regions. The temperature increases to 1oC, the yield of maize decreases from 5-20% and 60% if the temperature increases by 4oC. Similarly, rice yield decreased by up to 10% for each degree of increase. The yield of these crops is likely to decrease significantly with higher winter temperatures. Temperature also reverses the male sterility of hybrid rice mother lines, making it more difficult to produce hybrid rice varieties. 3.2.5. Impact on production and human life Climate change has a negative impact on people's lives and activities, especially in health and resettlement issues. The increase in temperature increases the tropical pressure on the human body, especially the elderly and children, increasing diseases, especially tropical diseases, transmitted through the development of bacteria, insects and animals. owners of diseases, nutritional regimes, and environmental sanitation decline. Climate change is threatening human health, especially for the poor. The most obvious consequence is the formation and development of a number of infectious diseases that fluctuate over the years, with a high risk of outbreaks, especially malaria and gastrointestinal diseases such as cholera, dysentery, typhoid, Acute diarrhea infects tens of thousands of people each year. Recently, many new diseases causing high mortality such as SAR, influenza A-H5N1, H1N1, nCoV… have also increased strongly in dengue and malaria. Changes in malaria prevalence and some diseases spread through drinking water are related to floods, droughts... 4. Conclusion and policy implications for Vietnam From the results of the above analysis, climate change is being felt in most regions in Vietnam, where the majority of people depend only on climate and natural resources for their survival. It affects food security and rural livelihoods adversely. Therefore, climate change is a worrying trend and something urgent and effective must be done to minimize its negative impacts. The less people rely on climate for survival, the more dependent they will be on available natural resources such as forests and other unsustainable and destructive systems. Obviously, that will cause greater climate uncertainty and the problem will continue to worsen. In general, people must understand the causes, impacts and possible and alternative solutions to the problem. Discussions on climate change have to be done in the village squares if we start trying to solve the problem. However, the people who will lead those discussions have to understand the problem very well and not confuse everyone. Specifically, the following are relevant to the policy: - Firstly, to promote cooperation and mutual assistance in building and developing sustainable green agriculture, sustainable fisheries, climate change adaptation and technological innovation in agricultural production to ensure food security and nutritional security...

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- Secondly, to increase research and transfer science and technology to advanced technologies in the production and processing of agricultural, forestry and aquatic products in order to increase productivity and product quality; Promote the application of information technology in agricultural management; Strengthening research cooperation on food security and nutrition security and minimizing food loss and waste. Outreach, implementation and innovation will allow producers (especially small producers) to increase sustainable production, reduce imports, use and protect eco-service systems and build resilience to the effects of climate change. - Thirdly, promote coordination and information sharing in the sustainable management of natural resources and water resources, including transboundary water resources management. - Fourthly, promote rural-urban development, make efforts to connect with remote areas, promote the role of communities and businesses through public-private partnerships in investment and development. infrastructure, transportation, telecommunications, internet, especially in underdeveloped regions. Integrate the regional connectivity program, including the ASEAN connection and the Mekong Sub-region connectivity programs. - Fifthly, actively implement the Disaster Risk Reduction Framework in the region, cooperate in building a system of natural disaster prevention, improve sustainability and post-disaster resilience; Focusing on community-based disaster risk management, sustainable rural development and ensuring the interests of coastal communities... References 1. Akudugu, M. A. (2011), Rural Banks' Financial Capital and Livelihoods Development of Women Farmers in Ghana, Journal of Enterprising Communities: People and Places in the Global Economy, 5(4): 248-264. 2. Bryant, C.R., Smit, B., Brklacich, M., Johnston, T., Smithers, J., Chiotti, Q., and Singh, B. (2000), Adaptation in Canadian Agriculture to Climatic Variability and Change, Climatic Change, 45:181–201. 3. Carney. D, Drinkwater. M, Rusinow. T, Neefjes. K, Wanmali, S. and Singh, N. (2000), Livelihoods Approaches Compared: A Brief Comparison of the Livelihoods Approaches of the UK, Department for International Development (DfID), London. 4. Clover, J. (2003), Food Security in sub-Saharan Africa. African Security Review, 12: 1– 11. Department for International Development (2001). Sustainable Livelihoods Guidance Sheets, London, UK. 5. Devereux, S., and Edwards, J. (2004), Climate Change and food Security, In: Climate Change and Development, Yamin, F. and Kenbar, M., Eds., IDS Bulletin, 35:22–30. 6. Department for International Development (2001), Sustainable Livelihoods Guidance Sheets, London, UK. 7. Devereux, S., and Maxwell, S., Eds. (2001), Food Security in sub-Saharan Africa, London, UK: Intermediate Technology Development Group Publishing. 8. Döös, B. R. and Shaw, R. (1999), Can We Predict the Future Food Production? A Sensitivity Analysis, Global Environmental Change, 9:261–283. 9. FANTA. (2003), Food and Nutrition Technical Assistance Project (FANTA) and Food Aid Management (FAM), Food Access Indicator Review, Washington, D.C.: Food and Nutrition Technical Assistance, Academy for Educational Development. 10. Food and Agriculture Organisation (2000), Guidelines for National FIVIMS: Background and Principles.

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11. Kamara, A. B., Mafusire, A., Castel, V., Kurzweil, M., Vencatachellum, D., and Pla, L. (2009), Soaring Food Prices and Africa's Vulnerability and Responses: An Update, Working Papers Series No. 97, African Development Bank, Tunis, Tunisia. p.36. 12. Intergovernmental Panel on Climate Change (IPCC). (2001a), Climate Change 2001. Synthesis Report, Intergovernmental Panel on Climate Change (IPCC), Cambridge University Press: Cambridge. 13. Intergovernmental Panel on Climate Change (IPCC) (2001b), Climate change 2001: Impacts, adaptation and vulnerability, IPCC Working Group II, Third Assessment Report. McCarthy, J. J., O. F. Canziani, N. A. Leary, D. J. Dokken, and K. S. White, Eds. Cambridge, UK: Cambridge University Press. 14. Intergovernmental Panel on Climate Change (IPCC) (2007), Fourth Assessment Report: Climate Change 2007. 15. Parry, M., Rosenzweig, C., Iglesias, A., Fisher, G., and Livermore, M. (1999), Climate Change and World Food Security: A New Assessment, Global Environmental Change, 9:S51–S67. 16. Stephen, L., and Downing, T. E. (2001), Getting the Scale Right: A Comparison of Analytical Methods for Vulnerability Assessment and Household-level Targeting, Disasters, 25.2:113–135. 17. Vogel, C. and Smith, J. (2002), The Politics of Scarcity: Conceptualizing the Current Food Security Crisis in Southern Africa, South African Journal of Sciences, 98:315–317.

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The Application of Credit Policy on Sustainable Development of Marine Economy and Environmental Protection in the context of Climate Change in Vietnam

Assoc. Prof. Dr. Nguyen Dac Hung Faculty of Economics, Hung Yen University of Technology and Education Email: [email protected]

Abstract Vietnam has great potential for marine economy. But the exploitation of marine economy development in recent years is causing great concerns about environmental pollution, sustainable development, and climate change. In order to effectively exploit the potential of marine economy, combat climate change, sustainably develop coastal localities in particular and the national socio-economic in general, the Party and Government have issued a number of decisions on marine strategies, policies to support credit capital for fishermen in this field. The author uses qualitative research methods, reviews secondary documents, analyzes secondary data of a number of functional agencies, evaluates the status of implementing credit policies using investment banks for Vietnam's marine economic development by the Government in the current period, mainly the preferential loan policy for shipbuilding, coastal fishing, coastal aquaculture, and advantages, specifying a number of limitations and causes, and proposing relevant solutions. Keywords: Credit policy, sustainable development, marine economy, environmental protection, climate change

1. Introduction Resolution No. 09-NQ/TW, dated 9/2/2007 of the Party on "Vietnam Sea Strategy to 2020" (MARD, 2017-2019), which has clearly shown its goals, promoting development of marine economy associated with strengthening strong national defense and security on the seas and islands of the homeland. Along with that, developing the field of aquaculture and exploiting aquatic resources in far sea areas, in association with the protection of national security and defense; quickly develop offshore fishing forces along the direction of investing in equipment and facilities, modern technology, synchronous development of infrastructure, fishery logistics services, storm shelters and anchorage areas according to planning ... This is a major policy and policy that has been paid special attention by the Party and the State in the past as well as now. The Government's preferential credit policy is a great solution with a leading position in the implementation of the Vietnam Marine Strategy to 2020 and a vision to 2025. The content of this credit policy is to provide loans. preferential capital for ship owners building and upgrading offshore fishing boats, higher fishing productivity and greater economic efficiency. Fishermen do not fully exploit coastal aquatic resources. On that basis, contribute to limit the negative impacts of sea level rise due to climate change, contribute to the protection of coastal ecological environment and sustainable development of marine economy. However, up to now, in Vietnam, there have not been sufficient, comprehensive and updated scientific researches on credit policy for marine economic development, with the focus on preferential loans policy. Offshore seafood bowl. The main content of the article focuses on this research gap. The article

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is about practice, with the limited scope of a conference paper, it does not build the theoretical basis of the study. 2. Methodology The paper researches on the practice of developing and operating macroeconomic policies on credit capital, without conditions to use quantitative methods, to survey and calculate the impact level of factors. The author uses qualitative research methods, analysis, synthesis and comparison based on secondary data sources, documents of functional agencies, such as: State Bank of Vietnam, General Statistics Office and a number of other agencies involved in the development and administration of credit policies, exchanging with experts with bank officials and corporate officials to make comments and assessments according to research objectives. of the post. 3. Results 3.1. The Government's credit capital policy promotes marine economic development In order to implement the above important policy of the Party, on July 7, 2014, the Government issued Decree No. 67/2014/ND-CP on a number of fisheries development policies. The Government prescribes policies on investment, credit and insurance; tax incentives and a number of other policies applicable to Vietnamese organizations and individuals engaged in fisheries activities; organizations and individuals (called ship owners) order to build new ships or upgrade ships in service of fishing activities. According to the regulations, ship owners building new or upgrading ships are entitled to bank loans up to 95% of the total investment value in building and upgrading; loan tenor up to 11 years; the lowest interest payable by shipowners is 1% / year and the highest is only 3% / year. When building a new offshore fishing logistics service ship (with a total main engine capacity of 400CV or more), for steel-hull ships, the shipowner can borrow from commercial banks up to 95% of the total construction investment value. new with the interest rate of 7% / year, of which shipowners pay 1% / year, the State budget subsidies 6% / year; new building wooden-shell ships ship owners can borrow up to 70% of the total value of new construction investment, with an interest rate of 7% / year, of which ship owners pay 3% / year, the state budget compensates 4% / year (Vasep, 2014). The Decree has basically met the requirements and aspirations of fishermen. The content of the Decree focuses on encouraging offshore fishing, supporting and creating favorable conditions for fishermen to build steel ships, new materials and large-capacity materials, thereby reorganizing tissue production and application. modern production model, increasing income, improving living standards for people, contributing to promoting the development of marine economy in the whole country in general, in the Central Coastal provinces and the Southern provinces in particular; at the same time also contributes in the cause of national sovereignty and territorial protection (Vasep, 2014). After Decree 67/2014 / ND-CP was issued, the Government, ministries, central branches, localities and agencies, organizations and units drastically and urgently implemented. Up to now, the Government has issued 2 Decrees, 1 decision and 1 resolution to amend and supplement Decree 67/2014 / ND-CP; has been amended and supplemented as Decree 17/2018 / ND-CP (Vasep, 2018). Specifically, on February 2, 2018, the Government issued Decree 17/2018 / ND-CP amending and supplementing a number of articles of Decree 67/2014 / ND-CP. According to the new regulations in this policy, when building new offshore fishing ships, offshore fishing logistics

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ships with main engine capacity of 800CV or more, ship owners will be supported once after the investment. when eligible for the following support:  For new-built steel-shell fishing ships or logistics service ships (including new equipment), the shipowner is entitled to 35% of the investment in new construction for fishing ships with total capacity. main engine from 1,000 CV or more, but not more than 8 billion VND / ship. Ship owners are supported 35% of the value of new construction investment for fishing vessels with a total main engine capacity from 800CV to less than 1,000 CV, but not exceeding 6.7 billion VND / vessel. (Vasep, 2018)  For Ship owners and logistics service ships that build composite shells with a capacity of 800 CV or more (including new equipment), the shipowner is entitled to 35% of the investment in new construction but not over 6.7 billion VND / ship. The Ministry of Agriculture and Rural Development, the Ministry of Finance, and the State Bank have issued many circulars, decisions, and guiding documents for the implementation of the Decree (Vasep, 2018). The localities have set up steering boards and assisting teams; organize propaganda and dissemination of the Decree's provisions and contents to fishermen; inspect, evaluate and promulgate decisions on recognition of establishments that build, upgrade and repair qualified fishing ships. With the drastic and synchronous participation of the Government, ministries, branches and localities, and especially the people's active participation and participation, the implementation of Decree 67; Decree 17, in recent years, has gained many important results. Regarding investment policies, according to the report of the Ministry of Agriculture and Rural Development, although the requirements have not been met, the State Budget has initially maintained priority to allocate investment capital for targeted support programs in the field. fisheries including storm shelters for fishing ships; investment in aquaculture infrastructure development; aquaculture seed development program. Although the state budget has prioritized the arrangement to implement the goals of Decree 67 and Decree 17, the bigger source of support for fishermen is the credit capital, with the active participation of the bank system (MARD, 2017-2019). 3.2. Results of implementing the capital policy for fishermen developing marine economy According to the data of the State Bank of Vietnam (SBV), implementing Decree 67/2014, as of June 30, 2017 (before the amendment and issuance of Decree 17/2018), commercial banks Commercial signed a credit contract to build and upgrade 993 ships (593 wooden ships, 333 steel ships and 67 new material ships), accounting for 92% of the total loan applications. Total committed loan amount is VND 9,814 billion; disbursement of loans according to the progress of ship building and upgrading reached VND 8,928 billion, outstanding loans reached VND 8,762 billion, an increase of 14% compared to December 31, 2016 (SBV, 2017). If on December 31, 2017, the time to stop signing credit contracts for building and upgrading ships under Decree 67, commercial banks (commercial banks) have signed credit contracts to build and upgrade ships. granting 1,178 ships with the total committed loan amount of nearly VND 11,700 billion. With a leading role in investing in agriculture, farmers and rural areas, Agribank is considered a pillar bank in implementing this program. As of March 31, 2019, Agribank had loaned 622 newly built ships under Decree 67 in the coastal provinces with a loan balance of VND 5,445 billion (Agribank, 2019).

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According to the Ministry of Agriculture and Rural Development, as of July 31, 2017, there were 761 newly built fishing vessels, including 301 steel-shell vessels, 53 composite ships, 407 wooden ships and 105 upgraded fishing vessels into production activities (MARD, 2017-2019). As of mid-2017, 27/28 coastal provinces and cities have approved the list of shipowners eligible for loans to build and upgrade 1,948 / 2,284 ships, including 1,510 new ships, 66.11% (steel ships and new materials are 768 ships, accounting for 51%; wooden ships are 742 ships, accounting for 49%). Number of fishing vessels classified by job group: 85 fishing boats, 420g net fishing; 427 mesh fishing; 341 units for fishing nets and logistics ships of 237; number of upgraded ships 438 (MARD, 2017-2019). Table 1: Results of the implementation of credit policy for marine economic development in the 2016-2019 period Criteria Unit 2015 2016 2017 2018 2019 The bank signs a credit Number of ships 510 820 993 993 993 contract with the shipowner The amount the bank Billions Dong 5,000 9,814 11,700 11,700 11,700 commits to lend The amount the bank has Billions Dong 1,200 8,928 8,928 9,400 9,400 disbursed for the loan Balance at the end of the period Billions Dong 1,200 8,762 8,762 9,200 9/100 Number of ships insured Billions Dong 10,602 12,579 12,600 12,620 12,650 Total insurance value Billions Dong 25,169 39,722 39,850 39,900 39,950 Total insurance value Number of ships 120 510 768 800 800 Source: Author compiled from sources: Agribank (2019); MARD (2017-2019); MOF (2018- 2019); SBV (2017) In addition, commercial banks disbursed working capital loans to 267 customers. In order for fishermen to reassure themselves to reach the sea and minimize the risks occurring during fishing activities, the Government has issued policies to support insurance for ship hulls and fishing nets. The results of this insurance policy are as follows (Agribank, 2019). In 2015, the total value of insurance was VND 25,169 billion; the total number of vessels participating in insurance for hull and gears is 10,602 fishing vessels; The total number of crew members covered is 102,784 crew members; The total premium is 261.9 billion dong ( MOF, 2018-2019). In 2016, the total value of insurance was VND 39,722 billion; the total number of vessels participating in insurance for hull and fishing nets is 12,579 fishing vessels; The total number of crew members entitled to insurance is 128,291 crew members; The total premium is 400 billion dong. The size of the total insurance value in 2017, 2018 and 2019 remains as stable as 2016, equivalent to VND 40,000 billion (MOF, 2018-2019). Along with the credit support policies, implementing Decree 67, ministries, branches, and localities have implemented many other policies such as policies to support training for crew members; policy to support freight (MOF, 2018-2019). The localities have elaborated plans, funding estimates and organized training and guidance for fishing boat crew members to operate new steel and material-shell ships. To date, technical

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guidance on exploiting and preserving products with new technologies for 2,347 crew members has been spent with a budget of VND 9,409 million (Agribank, 2019). In the middle of 2017, after nearly 3 years of implementation, Decree 67 has actually come to life and is highly supported by the public opinion, meeting the aspirations of many fishermen; bring efficiency and express the interest of the Party and the State towards fishermen; fishing vessel accidents reduced significantly; actively contribute to protecting national security and sovereignty at sea; fishermen peace of mind to cling to the sea of production, people's lives have been improved, many new production models on the sea have been formed and developed, contributing to the development of marine economy under the Party's Resolution (SBV, 2017). The international organization that came to Vietnam to check clearly noticed the change in Vietnam's fleet developing rapidly and strongly. It is due to the motivation from Decree 67. It is also important to change the perception of fishermen, residents' activities on fishing vessels with a more professional, safer and more efficient working style. 3.3. Evaluation of some limitations, difficulties and implementation of policies to promote the development of marine economy according to Decree 67 With the above results, it can be affirmed that the effect from this Decree 67 is huge. However, in the process of implementing Decree 67, there were some limitations in the content and organization of implementation; Specifically: (SBV, 2017). Firstly, the investment policy has not met the actual production requirements. The fishery infrastructure is both low and inconsistent, the investment is not commensurate, and has not created a quality fishery infrastructure to support the development of fisheries. The system of surveillance of fishing vessels at sea is inadequate, not ensuring safety for ship operation at sea. Providing loans for offshore fishing, high-capacity offshore vessels often have high investment value, but lack necessary and effective insurance forms such as ship insurance, crew insurance. In some cases, the shipowner has bought insurance but when it comes to a risk, he / she will not be paid by the insurance agency for a variety of reasons such as: captain and chief engineer who have not yet been issued with a professional certificate; the ship has not met the technical requirements to set sail ... Thus, the risk of irrevocable loan burden on the bank (SBV, 2017). Secondly, the credit policy implemented by commercial banks has not met the requirements of reality, slow disbursement, and procedures still make it difficult for fishermen. Insurance policies still have problems, making implementation not synchronized and effective. Quality control of fishing vessels is an issue that needs serious review. The commercial bank's loan appraisal has many unsolved problems, such as no specific provisions on the norms or value of a ship for a specific profession (829CV steel-shelled ships, net fishing) so that commercial banks can use that as a reference when deciding on loan capital. There is no specific regulation on depreciation period of fishing vessels, which can easily lead to conflicts between borrowers and banks. For example, in a customer's business plan, the depreciation is 20 years, but the actual fishing gear, engine ... only use up to 8 years. If the actual depreciation is applied, the high total cost results in low profit and no guarantee of repayment, so it is difficult for banks to make loans (MARD, 2017-2019). Besides, another difficulty is that banks have not managed the cash flow of debt repayment of customers. When participating in offshore fishing, ship owners often sell their products immediately to fishing logistics facilities at sea and directly collect money. So banks can not

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manage the money and debt collection. The handling of collaterals is also difficult because the ship is operating offshore, even when it is not on the shore, but to other localities. Although banks are creating favorable conditions for customers, access to loans is facing difficulties. The reason is, according to the credit policy of Decree 67/2014/ND-CP, the borrowers must be operating fisheries effectively, financially, and have specific business and production plans. Provincial People's Committee, cities under central authority's approval. But the specific regulation as to how effective fisheries activities are still left open (SBV, 2017). Third, the professionalism, responsibility, and conscience of some shipbuilding facilities is still poor. In particular, the stage of supervision of construction, registration and shipbuilding is still limited, so many ships in some localities do not meet the quality, causing damage to fishermen and causing annoyance in society. Fifthly, it is necessary to urgently overcome the problem of damaged steel hull ships in the provinces so that fishermen continue to sail to the sea, which is of both economic and high political and social significance. Besides, checking and inspecting the quality of newly built and converted ships. It is necessary to strictly handle individuals and organizations that have made mistakes in the case of ship building damaged or newly built, not up to quality. It is required to consolidate and review the shipbuilding establishments, bringing them into quality units, removing them from the list of unqualified establishments. Must review the design of fishing vessels, if not appropriate, it should be more appropriate. Sixthly, the process of registering fishing vessels needs to be done very strictly to ensure the quality of ships shipped. If the ship is not operating properly, the registry is responsible. At the same time, it is necessary to strengthen supervision of the shipbuilding process, people and fishermen also need to participate in this process to see which parts the fishing vessel needs, which parts are removed. Seventhly, coastal localities need to review and re-plan the number of fishing vessels, to see if it is necessary to increase or decrease the number of ships. Review and link with the results of the investigation of aquatic resources to ensure that aquatic resources are at the same time suitable to the exploitation capacity and meet the requirements to participate in the protection of national sovereignty and sea and island sovereignty. 3.4. Evaluation of the Government's current new policy on capital for marine economic development After more than 3 years of implementing the Government's capital policy on marine economic development under Decree 67, on February 2, 2018, the Government issued Decree No. 17/2018 / ND-CP amended and supplemented. a number of articles of the Government's Decree No. 67/2014 / ND-CP on a number of fisheries development policies, including the Ministry of Finance's additional guidance on objective and force majeure causes arising from reality. In addition, investors can apply the risk management mechanism in accordance with Decree 67/2014 / ND-CP (MOF, 2018-2019). The new policy stipulates that the central budget will invest 100% of the funding for the construction of essential items of grade-I fishing ports and regional storm shelters (including wharves; embankments, breakwater, sand shield; dredging channels into and out of the port; the ship's anchoring works; mooring facilities; sewage treatment system; classification house; operator; yard and internal roads; lighting system; system of buoys, signals, signal lights;

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specialized communication system) and investment in building 05 big fishing centers (motive fishing ports) (MOF, 2018-2019). The central budget shall invest 100% of the funding for the construction of projects under the management of ministries and central branches of central infrastructure areas of concentrated aquaculture; concentrated seed production areas include: water supply and drainage systems (ponds, tanks, drains, canals, water supply and drainage pipelines, pump stations), embankments, embankments, roads, electricity systems, works general wastewater treatment; upgrading the infrastructure of national aquatic breeding centers and regional aquatic breed centers; Center for Monitoring and Warning of Aquaculture Environment, Centers for testing, testing and verifying aquaculture at central and regional levels (MOF, 2018-2019). Deploying Decree No. 17/2018/ND-CP, dated December 17, 2018, the Ministry of Finance issued Circular No. 123/2018/TT-BTC amending and supplementing a number of articles of Circular No. 114/2014/TT-BTC dated 20/8/2014 guiding interest rate subsidies due to the implementation of credit policies under Decree No. 67/2014 / ND-CP (MOF, 2018-2019). One of the contents of Circular No. 123/2018 / TT-BTC that is of interest to ship owners is the risks due to objective reasons, force majeure, which is supported by the state budget with interest rate support. Objective and force majeure causes prescribed in Circular No. 123/2018 / TT-BTC are determined on the basis of proposals arising from commercial banks in the process of restructuring the debt payment term. for ship owners (MOF, 2018-2019). According to Circular No. 123/2018/TT-BTC, the objective and force majeure causes include: Ships damaged by natural disasters must be repaired; ships arrested and detained by foreign countries; The ship is crashed, damaged and must be repaired (not due to the ship owner's fault); Ships of newly built ships of poor quality, damaged, which must be repaired, thus leading to inactive fishing activities due to shipbuilders' faults; The ship owner is sick, has an accident and cannot go to sea (in case the ship owner directly goes to the sea); ship owner died, missing; Conversion of ship owners in accordance with the Government's Decree No. 17/2018/ND-CP of February 2, 2018, amending and supplementing a number of articles of Decree No. 67/2014/ND-CP and the guidance of SBV (MOF, 2018-2019). Loans which are subject to risks due to the above objective and force majeure reasons shall be rescheduled by the bank and the ship owners may continue enjoying interest rate support. Circular No. 123/2018/TT-BTC supplements regulations on loans that are overdue partly from principal, customers are not entitled to interest rate subsidy for overdue loan balance from the time of arising. The principal balance which is not overdue under the Credit Contract signed between the bank and customer shall continue to enjoy interest rate support under the Government's Decree No. 67/2014/ND-CP (MOF, 2018-2019). Circular No. 123/2018/TT-BTC issued has solved the difficulties encountered in recent years, creating favorable conditions for ship owners to enjoy interest rate subsidies. These supporting policies will encourage fishermen to rest assured to stay on the sea, contributing to the development of fisheries and the development of the marine economy in the whole country in general and in the Central and Southern Coastal provinces in particular (MOF, 2018-2019).

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4. Discussion and Conclusion Aquaculture, fishing and seafood processing are identified as important economic sectors in Vietnam. According to the data of the Ministry of Agriculture and Rural Development, of the 117,000 fishing ships in the country currently, mostly small boats caught near the shore. The number of vessels with a capacity of 90 CV or more that can be offshore fishing is only 28,248 units, although an increase of 42% compared to 2009 but still only accounting for 24.5% of the total number of fishing vessels (MARD, 2017-2019). Capital investment in the field of fisheries, development of marine economy in the country in general, in the Central Coastal provinces and the South in particular, poses many risks. For fishing, near-shore resources are in danger of being exhausted, while offshore investment costs require a large amount of money, there are always risks of natural disasters at sea. This new policy book of the Government, the synchronous deployment of the concerned ministries, the banking industry and the coastal localities, certainly the marine economy in general and in the Central and Southern Coastal provinces. In particular, it will develop sustainably and effectively in the future. Fishermen are able to build new ships, fish off-shore, are equipped with more modern and synchronous hooks, have a greater productivity of hitting seafood bowls. On that basis, fishermen do not have to fish near the shore, destroy near-shore aquatic resources, minimize the effects of sea level rise due to climate change, contributing to sustainable development of the marine economy. In addition, with more modern equipment, it contributes to reducing environmental pollution, discharging into the sea, and reducing coastal air pollution. New steel hulls have a durability 4-5 times higher than wooden ships, more modern engines, a longer life of 3-4 times compared to small ships, reducing scrap and waste released into the environment. All these changes contribute to environmental protection, combat climate change, and limit damage caused by rising water caused by climate warming. References 1. Agribank (2019). Credit Report for Farming and Fishing of Agribank, December 2019, hard copy. 2. MARD (2017-2019). Report on the Implementation Results of Decree 67/2014 and Decree 17/2018. Ministry of Agriculture and Rural Development, December 2018. 3. MOF (2018-2019). Report on the Implementation Results of Decree 67/2014 and Decree 17/2018. Ministry of Finance. 4. SBV (2017). Report of the State Bank on the Results of Implementing Decree 67/2014. November 2017. 5. SBV (2019). Report on Marine Economic Credit Activities of the State Bank of Vietnam. December 2019. 6. Vasep (2014). Nghi dinh 6/7/2014 ND-CP ve mot so chinh sach phat trien thuy san. [Online]. Available at: http://vasep.com.vn/Thu-Vien-Van-Ban/71_36410/Nghi-dinh- 672014ND-CP-Ve-mot-so-chinh-sach-phat-trien-thuy-san.htm; Accessed on September 22, 2020. 7. Vasep (2018). Nghi dinh 17/2/2018 ND-CP Sua doi bo sung mot so dieu của Nghhi dinh 6/7/2014 ND-CP. [Online]. Available at: http://vasep.com.vn/Thu-Vien-Van- Ban/71_51016/Nghi-dinh-172018ND-CP-Sua-doi-bo-sung-mot-so-dieu-cua-Nghi-dinh- 672014ND-CP-to-a-key-payment-in-the-san.htm. Accessed on September 22, 2020.

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The Status of Urbanization, Climate Change and Policy Implications for Sustainable Urban Development in Vietnam

Le Thu Giang Hanoi Architectural University Email: [email protected] Abstract Urbanization and climate change are two hot issues globally in the twenty-first century. These issues have a close relationship and have impacted greatly on socio-economic activities in the world and in Vietnam. Vietnam is one of the countries strongly affected by climate change- related phenomena such as sea level rise, storms and tropical depressions, flooding, and the risk of scarcity (Nguyen The Chinh, 2020). Water scarcity, extreme weather events, food security issues and environmental pollution ... The recent climate change adaptation strategy in urban areas of Vietnam is changing in the direction of increasing adaptive capability of regional climate scenarios and scoped modeling methods, larger time, longer time range. Since then, many adaptive measures in terms of technology investment, setting priorities in economic and social development, mechanisms management and policies have been applied. This paper analyzes the status of urbanization and climate change in Vietnam's urban areas, analyzes phenomena of climate change to see the consequences caused by rapid urbanization in Vietnam. From there, proposing suggestions related to the development and implementation of climate change adaptation policies in Vietnamese cities will contribute to providing information to support urban policy makers and managers in the process decision making to better respond to the threats of climate change in Vietnam. Keywords: Urbanization, climate change, sustainable urban development, urban management, urban planning, urban environment.

1. Introduction Urbanization is the process of transforming and distributing production forces in the national economy, arranging population, forming and developing urban style living conditions and conditions, and developing the capital at the same time. There are in-depth urban centers on the basis of modernizing the infrastructure system and increasing the population size (Urban Economics Textbook, National Economics University). Urbanization is the process of transforming and distributing production forces in the national economy, arranging population, forming and developing urban-style living conditions and conditions, and developing the capital at the same time. In the last years of the twentieth century and the beginning of the twenty-first century, rapid urbanization made cities a "standard" habitat for many people around the globe. The majority of the world's urban population currently lives in 408 cities with populations of over 1 million and 20 megacities with populations of over 10 million. Of the 408 "cities of more than 1 million people", 377 are in developing countries. Asia accounts for 67% of those 377 cities. In fact, although they account for less than 1% of the Earth's surface area, cities are home to over 50% of the world's population, consume 75% of energy, emit 78% of carbon and create 75% of greenhouse gases (WWF, 2009).

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Vietnam is one of the countries most heavily affected by climate change, the impacts of climate change evolve even faster than expected, so it is necessary to have assessment. Exact situation and forecasts from which to have appropriate solutions to adapt to climate change, avoid negative impacts and reduce the damage caused by climate change. There have been many studies in Vietnam and in the world on climate change, the relationship between urbanization and climate change; for example, studies of the number and proportion of urban populations of countries located in the low altitude littoral zones (McGranahan, Balk and Anderson, 2007), and in a series of detailed studies for the locality, city and region (de Sherbinin, Schiller and Pulsipher, 2007; Dossou and Glehouenou-Dossou, 2007; Alam and Golam Rabbani, 2007; Revi 2008; Awuor, Orindi and Adwerah 2008; and Levina, Jacob and Ortiz, 2007). H. T. L. Huong and A. Pathirana (2013) discuss the case of a typical third world city faced with all these future challenges, namely: (i) the effect of climate change driven sea level rise, (ii) likely increase of river runoff due to climate change, (iii) increase of urban runoff driven by imperiousness and (iv) enhancement of extreme rainfall due to urban growth-driven microclimatic change (urban heat islands). This paper analyzes the status of urbanization and climate change in Vietnam's urban areas, analyzes phenomena of climate change to see the consequences caused by rapid urbanization in Vietnam, and proposes suggestions related to the development and implementation of climate change adaptation policies in Vietnamese cities. 2. Theoretical framework Climate change is characterized by global warming and sea level rise, due to the imbalance of the world's biosphere system causing the greenhouse effect. Climate change is one of biggest challenges to the human beings. Climate change can lead to serious impacts on production, life and environment on a global scale. Higher temperature and sea level rising will cause inundation and water salinity which can bring about negative effects on agriculture and high risks to industry and socio-economic systems in the future. Climate change have been and will continue leading to comprehensive and deep changes in global development and security, especially energy, water, food, society, job, diplomacy, culture, economy and trade. With regards to climate change, one of the most serious threats to humans in the 21 st century, urban areas: (i) are places of population concentration, industrial activities, transport and waste sources, greenhouse gas, are the cause of climate change; (ii) is the place strongly affected by climate change, especially the impacts on the environment and socio-economic infrastructure system; and (iii) is an important source of climate change response activities through initiatives, policies and actions to mitigate and adapt to climate change. According to Savage (2010), the impact of climate change on urban areas should be considered from two aspects: (i) direct impact on urban environment due to phenomena such as typhoons and tropical depressions, water sea level rise, heavy rain and prolonged; and (ii) the indirect effect of changing socio- economic processes and activities in the heart of cities. The degree of climate change impacts and the ability to adapt to the impacts of climate change on urban environment depends on variables such as: (i) demographic characteristics and level of urbanization of the country; (ii) the size of the urban population - can vary from 10,000 to one million, five to ten million or more; (iii) population growth in urban areas and type of population growth (natural increase, mechanical migration or both); (iv) quality of life in urban areas (per capital income) and urban poverty levels; and (v) the status of urban infrastructure and the proportion of the population benefiting from it.

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When assessing the impact of climate change on urban areas, some commonly used criteria such as: - Urban Exposure (CE) ability: is the ability of an urban area to be affected by climate change and phenomena such as sea level rise, storms, tropical depressions, droughts or floods. Cities with natural geographic location and conditions that are more vulnerable to natural disasters have higher CE ratios than other cities; - Urban climate sensitivity (CS): is a variable depending on population factors, GDP, and the importance of urban economy to the national economy. Cities with a high population, high GDP, and national economic importance will have a higher sensitivity index. - Urban Climate Vulnerability (CV): is the extent to which an urban area is vulnerable to /or inability to cope with adverse impacts of climate change, including changes in climatic conditions and extreme events. CV depends on the variables of characteristics, intensity and speed of climate change in which the urban area is affected, the sensitivity (CV) and the Adaptative Capacity (AC) of the city. Climate change adaptation includes ways of responding, adjusting and acting human and nature, in order to cope with and / or reduce potential damage, and reduce vulnerability to the impacts of climate change. In other words, it's "controlling the inevitable." Climate change adaptation capacity of the urban area is related to: (i) awareness of the importance, scale, scope and speed of climate change; (ii) changes in lifestyle, quality of life and way of creating livelihoods; (iii) changes in economy and technological progress; and (iv) adjusting the infrastructure system in the design of ecological urban areas and the relationship between urban areas and the affected areas and the "eco footprint" of the city. Climate change adaptation capacity in urban areas varies from individual actors' behavior to macro-regulatory mechanisms and activities of the government as a result of both immediate responses and measures. Response measures are long-term and preventive. 3. Results 3.1. Impacts of climate change in Vietnam Climate change will directly, or indirectly affect the entire physical and social environment, creating challenges for urban areas and rural residential areas throughout the country during development: - Increasing the risk of unsustainable development of urban systems, rural population points for climate sensitive areas including: Red River Delta region, North Central coastal region, Central coastal area, Islands and the Mekong River Delta due to sea level rise, storm surges, tropical depression, coastal erosion, flash floods...; mountainous areas in the Northwest, Northeast, North Central and Central Highlands are most at risk of floods, flash floods and landslides; lands in the coastal strip of Central Vietnam, the Northern Midlands and Mountains will be most affected by extreme climatic events. - The implementation of urban development policies during the period of accelerating industrialization and modernization will face many difficulties and great challenges: - Climate change mitigation and adaptation issues require urgent and scientific-based innovation in management of urban development planning and rural residential areas while the capacity of owners Unresponsive related. There must be appropriate methods, contents, standards and regulations for climate change conditions. For the development of industrial zones, which are important economic bases of the country, which are built more in the plains, they will face more risks of flooding and challenges in drainage due to flood water from rivers and sea level rise. Climate change requires large investment assessments, standards and regulations to minimize and adapt in the planning of construction of industrial parks, technical

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infrastructure systems, and application of risk mitigation measures, environmental risks, causing difficulties in supplying water and raw materials for industries and construction, ... - Drought, flood, sea level rise will also affect the water supply and increase conflicts in water use for production and daily life of urban and rural residents; threaten sewage drainage activities, urban and regional environmental sanitation; causing difficulties for construction, development and management of urban transport systems.

Figure 1: Impacts of climate change on Viet Nam’s population by sea level rise scenarios

Source: World Bank, 2007

Figure 2: Impacts of climate change on Viet Nam’s GDP by sea level rise scenarios

Source: World Bank, 2007

Climate change phenomenon is also the most honest and objective criticism of socio-economic activities of people. It is an urgent warning to seriously and responsibly assess the impacts of urban development on the environment and nature; determine the level of urban and urban participation in the increase of climate change on a national and global scale. In our country, greenhouse gas emissions are not high compared to developed countries in the region and the world. But the process of urban development in our country has revealed serious problems in terms of the principle of sustainable development. Those issues are: - Overexploitation and wasteful use of land resources for the purpose of urban and industrial growth, but disregarding the need to develop a harmonious balance between urban and rural areas (according to the Ministry of Natural Resources and Environment and the Ministry of Agriculture and Rural Development, in the year). In 2001-2005, nearly 400 thousand hectares

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of agricultural land was used for construction purposes, accounting for nearly 4.0% of the country's agricultural land fund. In 2008, the urban land area was more than 1,429,000 hectares, accounting for 4,32% of the total natural land area of the country, of which, more than 86,000 ha unused, on average urban land in 2008 was 145m2/ person nearly 2 times the target Orientation for 2010 is 80m2/ person). 3.2. Urban management in Vietnam - In urban planning activities, only attaching importance to the development of the physical form and space of the urban center, while neglecting the environment protection and urban ecological balance; select development land without scientific basis; determination of population size and urban land beyond the capacity of natural resources; develop urban and industrial areas in areas vulnerable to climate change such as floods, floods, landslides...; urban spatial growth, the scale of urbanization unbalanced across regions; the planning has not adequately paid attention to requirements of reducing greenhouse gas emissions as well as limiting the impact of climate change on urban population, infrastructure, ..; - State management activities on investment, construction of urban areas, residential areas, industrial parks, systems of infrastructure work in biodiversity areas and heritage conservation areas (nature and literature) chemotherapy) ineffective. The phenomena, acts of leveling, deforming and changing topography, landscape, causing ecological imbalance ... have not been controlled and dealt with, which are threatening the sustainability of the natural-ecological framework of Vietnamese urban areas; - Weaknesses in management have not been able to control the rapid growth of the number and density of individual motor vehicles in concentrated urban areas, urban areas of grade I or higher; system of urban infrastructure is overloaded, developed not keep up with high speed of urbanization, not enough capacity to meet the needs of normal activities of urban areas,... Capacity of urban waste treatment is weak adequate and unsynchronized (70% of solid waste is collected but most of urban areas lack hygienic landfills, ..) leading to increasing amount of greenhouse gases of Vietnam's urban system; - On the other hand, industrial facilities of construction materials (cement, iron and steel), energy (thermal power) are built to meet the demands of urban and industrial construction and development, due to the efficiency of production. Low production because of outdated technology, high energy consumption, unsustainable use of resources also contributes to rapidly increasing the amount of greenhouse gases released into the environment; - The issue of "green building" and "ecological architecture" has not been paid much attention in urban construction, many types of construction materials are less environmentally friendly (industrialized construction materials, cement, iron and steel....) used in large quantities; in building design, architecture and exploitation of buildings, compliance with microclimate principles, energy efficiency is overlooked, leading to degradation, deformation of urban ecosystems, also increases the impacts of climate change. - Climate change requires urban governments at all levels to have the necessary capacity to meet the requirements of urban development management in the following areas: Making and approving quality urban planning; organize the construction and urban development according to the planning; provision of public services and essential conditions for urban residents; mobilize resources and organize coping with natural disasters, technological incidents and climate change; ensure safety and security for urban residents.

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- An increase in the risk of environmental and technological incidents to urbanized areas, proportional to the concentration of population and urban waste include: the Capital Region and the Red River Delta; Southeast region; key economic region of Central region, big urban area such as Hanoi and Ho Chi Minh City and Da Nang city. 4. Conclusions and Policy Implications Today, the development of urban centers and urban systems is always associated with the socio- economic changes and the natural environment of the nation, the region and the whole world. Vietnam urban is also not out of that rule. Along with the renovation process, implementation of urban campaigns in our country has been developing rapidly in both quantity and scale. From 1998 to 2009, the number of urban centers increased from 635 to 754. The rate of urbanization nationwide from 24% to 29.6%. The urban population increases on average by 3.4% / year. The urban area contributes from 54% of total GDP (in 1999) to 70% of total GDP (in 2009) of the whole country. Cities are gradually asserting their roles and positions as centers of economy, services, culture, science, training and management, etc., which are "growth poles" and clues to form networks and networks. population net, promoting the country's overall socio-economic development, bringing the whole country on the path of industrialization, modernization and international integration. Despite positive results, the development process of our country's urban system has not yet met the objectives and ensured the development principle during the industrialization and modernization period set at the Party Congress. National Party VIII and completed and supplemented at the Tenth National Assembly, as well as have not been prepared necessary to cope with the impacts of climate change. To successfully implement the millennium goals and national development in the period of accelerating industrialization, modernization and climate change depends on many solutions, the most important of which is the adjustment of our country's urban development process. Towards more environmentally friendly, with some of the following major contents: * Comprehensive awareness raising on climate change and its impact on the entire relationship between urban creation factors. Improving the capacity to cope with climate change for Vietnamese cities is not only for 2025, 2050 and beyond, but also essential for contemporary cities. Because when existing cities cannot adapt to climate change, future responses are no longer valid. * The principles of sustainable development should be thoroughly and resolutely applied at all levels of urban planning activities from the formulation, evaluation, approval and adjustment of urban planning; organize the implementation of urban planning and manage urban development according to the approved urban planning. To be more specific: - Rapid development must go hand in hand with sustainable development, which is reflected in the planning and management of the national urban system development and each urban area, in the short-term and long-term with appropriate use and saving natural resources; - Urban growth is associated with improvement of people's lives, cultural development, education, implementation of social progress and justice, environmental protection; - Implementation of on-site urbanization in rural areas: Promoting the process of industrialization and modernization of agriculture and rural areas; building socio- economic infrastructure, gradually forming a new civilized and modern countryside;

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create a balance in development between the two urban-rural areas, accelerate to the urban-rural unification. - Reasonable development of territories; form a rational urban network, with special emphasis on developing small and medium-sized cities, restricting population concentration to a few large cities and avoiding the creation of mega cities; - Attaching importance to protecting and improving the environment in urban construction and development, not causing environmental pollution and destruction; rationally organize the environment and protect the environment, ensure the maintenance of urban ecological balance, prevent natural disasters and technological incidents that may occur. - Harmonious combination between renovation and new construction; attaching importance to preserving the cultural identity, national traditions and the application of new scientific - technical and technological advances to modernization. * Implementing the goal of improving the quality of life, building an urban civilization, disseminating urban lifestyles in the whole country, instead of developing urban areas in favor of quantity (urban population rate% of population nationwide, spatial scales, urban networks), developing urbanized areas instead of megacities. In other words, in-depth urbanization. * The policy of urban development in an environmentally friendly manner requires the renovation of the traditional method of managing urban development with a single sector into a modern approach being applied in many countries around the world. : * Renewing institutions for management of urban development suitable to climate change conditions: Principles and requirements for sustainable development have been enacted by Laws: Environmental Protection, Land, Construction, Housing, Real Estate Business, Urban Planning, Construction, etc., technical regulations, standards... related regulations are relatively complete. However, the issue of coping with climate change in urban planning has not yet been specifically and appropriately defined. Therefore, it is necessary to adjust the provisions of the current laws towards integrating the content of development and management of construction investment, management of land and resource use, and public exploitation. process of urban, environmental protection, landscape, urban heritage. Integrating the problem of coping with climate change and consolidating the development content of sectors in a type of comprehensive development planning (comprehensive Plan) in the locality. At the same time, promulgating technical regulations, standards and guidelines for planning, planning management, construction investment, and protecting the urban environment in the context of climate change. In the future, we need to focus on implementing some immediate solutions as follows: - Identify challenges to overcome in the short and long term, assess the level, nature and trend of changes of climate change impacts on urban and residential development process rural areas based on climate change scenarios, zoning maps affected by climate change include the country, ecological regions, economic regions, urbanized areas and individual urban areas and residential areas. - Based on the United Nations Framework Convention on Climate Change, the National Target Program to respond to climate change (Decision No. 158/2008 / QD-TTg dated December 2, 2008), identify coping solutions in the urban development plans include: Adapting, to minimize

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risks of climate change for urban areas; reduce greenhouse gas emissions due to urban socio- economic activities; improve the economic - technical capacity of the city and mobilize resources to implement the urban development management planning. - Adjust and improve processes, standards, technical regulations and guidelines in planning, designing and constructing urban areas and rural residential areas in accordance with climate change conditions. - Urgently implement the integration of solutions to cope with climate change under the "Adjustment of the Orientation of the Master Plan for Vietnam's urban system development to 2025 and vision to 2050" approved by the Prime Minister in 2009. - Strengthening and strengthening the capacity of urban authorities at all levels in urban development management to cope with climate change in: Planning and implementing strategies and planning for urban development; organize the implementation of policies and laws related to urban development, organize the production of socio-cultural life in urban areas; organization of supply and management of urban public services; mobilize the whole society and community in implementing solutions to cope with climate change in urban development. Organize the implementation of refresher courses, capacity building, update knowledge and skills for entities involved in management and development in urban areas on urban development planning in the context of Climate Change. In summary, the article shows that the effects of climate change on Vietnam in recent years have been faster than expected. Predicting the effects of climate change, especially scenario building for the coming years to the end of the 21st century is of very important significance, plays a decisive role in the sustainable and sustainable development of the country. Facing that situation in the new context, it is necessary to have appropriate solutions from institutions to sectors, fields, each locality and each region. Some of the above suggestions on solutions to urban development in Vietnam in the context of climate change are expected to contribute effectively to the implementation of that important task. References 1. David Satterthwaite (2008). Climate Change and Urbanization: Effects and Implications for Urban Governance. 2. H. T. L. Huong and A. Pathirana (2013). “Urbanization and Climate Change Impacts on the Future Urban Flooding in Can Tho city”. Hydrology and Earth System Sciences, Vol. 17, pp 379-394. 3. Le Hong Ke (2010). Develop a Sustainable National Urban System, Available: http://www.hids.hochiminhcity.gov.vn/c/document_library/get_file?uuid=c9e7a90d- 4264-40a1-b9b4-c3b0cd71515e&groupId=13025. 4. Le Trong Binh (2009). Urban Development in Vietnam in the Global Climate Change. Available: https://www.tapchikientruc.com.vn/chuyen-muc/ly-luan-phe-binh-kien- truc/phat-trien-do-thi-viet-nam-trong-dieu-kien-bien-doi-khi-hau-toan-cau.html. 5. MONRE (2008). National Target Program to Respond to Climate Change of the Ministry of Natural Resources and Environment (July 2008) to implement the Government's Resolution No. 60/2007 / NQ-CP. 6. Nguyen Minh Hoa (2006). Sustainable Urban Development. Available: http://tuoitre.vn/phat-trien-do-thi-ben-vung-158462.html.

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7. Nguyen The Chinh (2020), Impacts of Climate Change on Vietnam: Current Situation, New Problems and Solutions, http://hdll.vn/vi/nghien-cuu---trao-doi/anh-huong-cua- bien-doi-khi-hau-doi-voi-nuoc-ta-thuc-trang-nhung-van-de-moi-dat-ra-va-giai- phap.html. 8. Global Forum on Oceans, Coasts, and Islands (2008). Climate, Oceans, and Security. Policy Brief. Hanoi April, 2008.

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Legal Policy of Raising Awareness, Education and Training on Climate Change Nguyen Thi Thuy Linh1, Nguyen Thanh Tung2 1Researcher, Institute of State and Law, Vietnam Academy of Social Sciences. 2Specialist, Institute of State and Law, Vietnam Academy of Social Sciences.

Abstract This paper analyzes and clarifies the concepts of awareness-raising, education and training on climate change; the requirements set out for these activities; the content of legislation and policies regulating the conduct of these activities; as well as for related practical policies and legislation. This paper will propound some recommendations and constructive solutions for the amelioration of these policies and legislation… The concept of raising awareness, education and training on climate change is explained and reviewed by using qualitative methodology; comparative; theoretical; and practical approaches. From this, the importance of educating and training policy makers and decision makers on responding to and minimizing the impacts of climate change will be discussed. A list of solutions to formulating and perfecting legal policies on awareness-raising and education on climate change will also be presented as the key result of the research. Keywords: Climate change, education and training, legal policy, raising awareness.

1. Introduction Vietnam is debatably considered a country heavily affected by climate change, leading to serious damages over recent years according to The Global Climate Risk Index (Germanwatch, 2020). Reports have shown that climate change has caused sea level rise and flooding on a large scale on the Mekong Delta, Red River Delta and Central Coast areas. Sea level rise affects the coastal wetlands of Vietnam, especially the mangrove areas of Ca Mau, Ho Chi Minh city, Vung Tau, and Nam Dinh. From 1956 to 2000, there were 311 storms and tropical depressions in Vietnam. Consequently, the Government has to spend trillions of Vietnamese Dong to overcome the consequences of natural disasters. In addition, for more than 10 years, a drought has raged in the Central and Central Highlands, causing a loss of nearly 3,000 billion VND to cope with this natural disaster. In 2015, 154 deaths, nearly 1,300 collapsed houses, more than 445,000ha of damaged plants and crops which are equivalent to over 8,100 billion VND, were the significant consequences of natural disasters. When climate change is destructive and constantly changing, human intervention by science, technology… may become helpless. Therefore, most of the measures taken to deal with climate change are put in the context of whether or not it can adapt to climate change. According to the 3rd Assessment of the 2nd Working Group of the Intergovernmental Panel on Climate Change (IPCC), 288 different adaptation methods are mentioned and described, in which, awareness raising, education and training on climate change training are among the top concerns. These activities have become key measures to effectively prevent and minimize the impact of climate change. In fact, it is hardly possible to combat climate change. However, at a certain limit, mitigating the impacts of climate change is completely possible. This requires a comprehensive awareness of climate change from citizens, businessmen, authorities and policy makers.

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Raising awareness about climate change is a policy priority declared in the United Nations Framework Conventions on Climate Change (1992) and in the Convention’s Kyoto Protocol (1998). The World Health Organization (WHO) has identified climate change as one of the greatest health threats of the 21st century (WHO, 2016). A review of the literature revealed that there have been many studies and projects to evaluate the influence of climate change and the measures to attack climate change both globally and in Vietnam (Jung, 2012; Oxfam, 2009; Toan et al., 2014; Tran, 2015). Besides, adaptation initiatives were predominantly focused on infrastructure, transportation, rather than improving legal policies, as well as related education and training (Ford et al., 2011). Efforts to increase awareness and change the behavior of individuals and communities have not been developed and measured. In this regard, improving legal policy of raising awareness, education and training on climate change can be a key factor to help enhance adaptive capacity to cope with this matter. In acknowledging climate change, the Vietnamese government has planned and employed National Climate Change Adaptation Programs to adapt to its threats. Under these programs, several adaptive strategies have been developed and implemented. For example, in the Mekong River Delta, alternative livelihoods and migration were the best solutions for vulnerable residents to address climate change. Meanwhile, central coastal provinces focused more on developing irrigation, changing crop and livestock practices or applying modern technology in agriculture (Lam, Tran, & Le, 2006), as well as providing funds to establish hard and soft infrastructure (MONRE, 2010). Education has also been suggested and employed as a national strategy to raise awareness and change behavior in response to climate change in sectoral levels (MONRE, 2010; United States Agency for International Development [USAID], 2015; Toan et al., 2014; Few et al., 2004; Nguyen, Miller, Bowen, & Tan Sinh, 2017). However, efforts to change individuals’ behavior towards the environment through education and training have faced several challenges (MONRE, 2010). Unavailability of climate change education programs at the national level, a lack of course material at schools, or a lack of critical evaluations of pilot programs are examples of barriers in climate change education in Vietnam. Legal policy of raising awareness, education and training on climate change appears as part of general environmental education and education for sustainable development (United Nations Educational Scientific and Cultural Organization (UNESCO, 2012). It plays a crucial role in fostering adaptation, and helps to equip people with knowledge, adaptive skills, and attributes to deal with climate change (Vietnam Institute of Meteorology, Hydrology and Environment, 2010; Collection of research works of Science and Technology Program serving the National Target Program to respond to climate change period 2011-2015 of the Ministry of Natural Resources and Environment, 2016; Institute of State and Law: Ministerial-level research on Scientific and practical arguments for developing and perfecting the legislation in response to climate change in Vietnam nowadays, 2016). However, it is observed that there were, still, few studies on legal policy of raising awareness, education and training on climate change. Therefore, conducting research on this topic is urgently needed. A systematic analysis of the current related legal policies in Vietnam will be undertaken. 2. Methodology The concept of raising awareness, education and training on climate change is explained and reviewed by using qualitative methodology; theoretical; and practical approaches. The integrated and comparative research methods are used to analyze the legal policies, practice of

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operating education and training policy, as well as raising awareness of climate change in Vietnam. The data used are taken from documents already published on the internet and from previously published works. 3. Results This is a basic theoretical research paper, not an article of investigation or statistics. The object of the study is legal policy, not just specific climate change education measures. It was expected that education would help to improve knowledge of and attitudes to climate change. The citizens will be encouraged to undertake regular actions to mitigate and adapt with climate change through putting effective legal policies into practice. The paper was expected to become a useful reference and guideline for policy makers and Vietnamese local governments to formulate policy to support locals in dealing with climate change. 3.1. The concept of awareness-raising, education and training on climate change Vietnam is one of the countries most heavily affected by climate change. In recent years, the severity of the damage attributable to climate change has increased. Awareness raising, education and training on climate change, thus, has become one of the focal points of governing bodies, creating a basis for effectively preventing the impact of climate change. The special feature of these activities is the psychological influence they bear, steering the behavior of individuals in relation to the subject through facilitating a particular conceptual grasp and imparting knowledge. The cerebral and attitudinal foundations sow the seeds for the implementation of climate change measures in practice. Awareness of the harmful effects of climate change once formed easily reached the consensus of stakeholders in the implementation of state policies and laws pertaining to the issue. The subsequent dissemination of legal documents has created a legal basis for the operation of the program, as well as elucidating the need for sanctions, to minimize the impact of climate change. Summarizing the concepts and ways of education on climate change that countries are implementing, legislators define the concept of awareness-raising and education on climate change as follows: awareness-raising, education and training on climate change is the education of basic knowledge about environmental science, ecology, and the importance and means of protecting the living environment for the community. Policymakers are obligated to determine which issues are relevant to mitigating the impact of climate change such that the state can cope with its negative effects. 3.2. Requirements for awareness-raising, education and training on climate change Firstly, awareness-raising, education and training on climate change should serve the end of forming knowledge for the community and other stakeholders about its harmful effects -- which are increasingly difficult to control-- and cultivating a positive attitude amongst the populous towards environmental conservation. Law provisions on related issues should be appropriate to attain public assent and avoid stirring a sense of disenfranchisement. Only when awareness of climate change is formed can the implementation of the State's overall policy of mitigating the impacts of climate change and environmental protection be realized. This requirement is considered a fundamental goal for the successful implementation of climate change awareness and education programs. Secondly, in the overall program of economic development planning, on both regional and national scales, the issue of awareness-raising, education and training on climate change should be integral. The objectives of awareness-raising, education and training on climate change here

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are directed by policymakers working in conjunction with decision-making authorities. It is these aims that should be decisive factors in the creation of economic development policy, manifested in their deployment, inspection and monitoring in practice. Setting out to educate and train these authoritative bodies is essential to ensure conducive attitudes to sustainable development in respect of the environment precipitates to the wider population. For example, without a long-term, comprehensive plan to support the country’s evolution, short-term growth will be overshadowed and altogether stifled for future generations if the state of the environment ceases to be habitable and suitable for commerce. In this event, accountability would lie with the actors for having failed to guide and regulate development with a view for the future. Thirdly, to be compliant with normal practices of political institutions in Vietnam, raising awareness, education and training on climate change must implement the guiding views in the Party's resolutions and frameworks. In fact, education and training on climate change has already been integrated in the resolutions and documents of the Communist Party to some extent. Namely, Resolution No. 24-NQ / TW of June 3, 2000 cites: “Proactively coping with climate change, strengthening natural resource management and environmental protection are issues of special significance. important, influential, interrelating, interacting together, determining the sustainable development of the country; It is the basis and premise for planning guidelines and policies for socio-economic development, assurance of national defense, security and social security. This is one of the most important tasks of the entire political system; is the responsibility and obligation of agencies, organizations, businesses and communities, in which the State plays a leading role, under the leadership of the Party and the participation and supervision of the whole society". This is considered an indispensable premise for the implementation of all socio-economic policy. Given these extant articles of law, the conditions are set for discursive forums to push the dialogue surrounding climate change and educational activities addressing it. Fourthly, the implementation of awareness-raising, education and training on climate change must, too, aim to raise the people's awareness of environmental laws. As a result, it is required that the Constitution and laws of the National Assembly, Government Decrees, and Circulars of Ministries issued must be strictly obeyed by the people. In other words, the education and training that is conducted must promote legal adherence from the populous, including state- agencies on issues of adaptation and mitigation-measures. Accordingly, the actual dissemination and implementation of legal documents on issues related to forest protection, exploitation of natural resources, minerals, energy, industrial development planning, agriculture, urban areas, residential areas and housing construction fall within the scope of the initiative. Fifthly, in the long run, awareness-raising, education and training on climate change should be developed into a framework of programs, propaganda, the dissemination of legal knowledge and the contents of government policies such that legal issues and decrees related to climate change are well placed to serve the community at large.

3.3. Contents of legal policies on awareness-raising, education and training on climate change Overall, it can be seen that the legal policy on awareness-raising, education and training on climate change is a component of the legal policy on climate change, including views, directives, objectives and identification of subjects of application and subjects of serving when formulating the legislation on awareness-raising, education and training on climate change.

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About subjects: The subjects of the legal policy for awareness-raising, education and training on climate change are representative agencies, law enforcement agencies, other competent agencies and organizations. In addition, it is impossible to ignore the Special Subject, the Communist Party of Vietnam - the leading force of state and society. In recent years, the work of developing laws, disseminating information and educating on climate change has been advanced by the Party and the State as one of the key tasks in the progress towards sustainability. With the combined efforts of all levels and sectors, the work of developing laws on climate change has engendered positive outcomes, contributing to building a sense of compliance with the provisions of law on climate change. The Party and State also formulate national key programs on law dissemination and education related to climate change. On March 6, 2013, the Party Central Committee issued Resolution No. 24-NQ / TW on proactively responding to climate change, strengthening natural resource management and environmental protection. This resolution authored by the Party Congress provides the foundation for the way policy documents are enacted as law. It is of essential importance that documents are supplemented, completed and continuously improved to secure socio-economic development and international economic integration. A generally held position is that: climate change is caused not only by the natural fluctuations of Earth’s atmosphere, but also by the impact of quotidian and economic human-activities. The aggressive exploitation of resources, deforestation, and non-renewable methods of energy- production are not carried out with proper consideration of environmental consequences. The use of out-dated technology with a high level of emissions is a key contributor to climate change. Therefore, education and training on climate change must prompt an active response from officials and citizens to tackle this global issue. Regarding goals: the objectives of the legal policy to raise awareness of and provide education and training on climate change are to optimize these activities and enlighten individuals and agencies on the real-world effects of this phenomenon. Scope: awareness-raising, education and training on climate change are carried out at international, national, regional and local levels. Regarding the means: the means of legal policies for awareness-raising, education and training on climate change is the system of corresponding legal documents, concepts, programs, and supervision (monitoring), tools for assessing, analyzing and forecasting impacts when enacting pertinent legislation. About the object: the target audience, so to speak, of climate change awareness and education is not only the communities but also the policymakers and those with positions of authority. In terms of form: based on different types of subjects, there are popular forms of propaganda, education and training and awareness-raising on climate change as follows: Through legal training: This is the most comprehensive and systematic way of disseminating legal knowledge in all forms to the people. In this form, legal knowledge is conveyed from the principles of law, the general provisions of the law industry and the institutions and specific provisions of the law. Legal training programs on climate change should be included in the training programs of universities with law majors. Training on climate change, apart from being integrated into current programs or evolving into a subject per se, will also need to develop a specialized training program on this field in the long term.

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Through the mass media: This form of propaganda has proved effective in the modern day. Propaganda and dissemination of legal education on climate change is not only applied to residents in the city, officials of state agencies, but also Party organizations and mass organizations at the central level in cities and towns. It is necessary to expand in both rural areas, especially in mountainous areas, where the press and other media are very limited. Through political and management learning: Climate change issues should be integrated into policies to enhance legal knowledge for officials, people, and political activities considered important tasks. Besides socio-economic, political-ideological related measures, climate change issues should be included in research phases of the Communist Party and State’s key documents, such as the Resolution of the Party Congress, the political credo and strategy, as well as the Resolutions of the Central Conference. Through the training program for managers: The training of legal knowledge aims to equip managers with general guidelines for socio-economic development, in which the mitigation of impacts and Climate change adaptation are considered as key tasks that create the foundation for sustainable development of the local and national levels. In order to yield the proper outcomes, these training programs need to be organized regularly, becoming mandatory content in training programs for managers which address economic development. By discussing and commenting on bills: The legislative mechanism consists of soliciting opinions and discussing laws on the environment, land, socio-economic development planning and climate change. Through this process, people can have direct access to the regulations and contents of the related laws that are about to be issued. The solicitation and discussion of draft- laws related to climate change may be organized nationwide for officials, or may involve the people through mass organizations, depending on the nature of the text, or the completion of the branch when the conditions for solicitation permit it. 3.4. Practicing legislative policies on awareness-raising, education and training on climate change Vietnam is trying to develop its economy in respect of political and environmental stability. It is the right strategy outlined by policymakers, but because it is so economically focused, it has created corrupt practices, so a deal of environmental problems has been exposed, the solutions for which are not clear. Two strategies for environmental protection and climate change adaptation of a developing country like Vietnam should be erecting quality infrastructure and developing a strong and sustainable economy, thus, awareness-raising and education are paramount. Since 2005, after the Kyoto Protocol came into effect, a series of policies and laws directly related to climate change have been issued. Notably, there came the Prime Minister's Directive No. 35/2005 / CT-TTg of October 17, 2015, on organizing the implementation of the Kyoto Protocol under the United Nations Framework Convention on Climate Change. (2005); Decision 158/2008 / QD-TTg dated 02/12/2008 of the Prime Minister Approving the National Target Program to respond to climate change; the Prime Minister's Decision 1393 / QD-TTg of September 25, 2012 Approving the National Strategy on Green Growth, and many policies and laws related to climate change, natural resources, biology, agriculture and forestry, construction environment, irrigation, transportation, energy, industry, health and so on. On December 5, 2011, the Prime Minister issued Decision No. 2139 / QD-TTg approving the National Strategy on climate change which considers awareness raising, education and training to be among the Strategic tasks to actively respond to climate change, including:

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- Awareness-raising, responsibilities of cadres, civil servants, public employees and social sectors on climate change issues. - Developing appropriate methods to access and use information on climate change for all social sectors; diversifying forms of propaganda and disseminating information pertaining to impacts, risks and opportunities from climate change, paying special attention to population communities and key areas. - Incorporating basic knowledge on climate change into programs and levels of education and training; developing and adopting policies to train high-quality human resources personnel specialized in climate change adaptation and reduction of greenhouse gas emissions. - Increasing awareness, personal responsibility and communal responsibility in preventing, avoiding and overcoming consequences of natural disasters; building lifestyle, climate-friendly consumption patterns for all members of the community; encouraging and replicating good practices in climate change response. The Prime Minister's Decision No. 1393 / QD-TTg of September 25, 2012, approving the National Strategy on green growth, considers green growth to be an important component of sustainable development, ensuring rapid, efficient and sustainable economic development and making an important contribution to the implementation of the National Strategy on Climate Change. Accordingly, awareness-raising, education and training are considered as being amongst the key tasks leading to a proactive response to climate change. In particular, Decision 1393 / QD-TTg particularly emphasizes the role of cooperation from the people, considering the initiative in learning and applying energy-saving technologies. Being environmentally friendly is a basic solution that is conducive to mitigating the impacts of climate change. In addition, Decision 1393 / QD-TTg considers the organization of training and retraining of management knowledge and management skills in a green economy and green manufacturing industry for public and business administration officials. In the immediate future, for the leadership team, the policy, strategy, planning and socio-economic development planning team is a very urgent task. From there, developing human resources for green growth on the basis of research, choosing to include the contents of green growth, green technology, sustainable resource exploitation, etc. into all educational levels and guiding enterprises on how to access financial and technological options to implement greening of industry and agriculture will be prioritized. One of the focuses of the climate change response program is to prevent deforestation. The cause of current deforestation is created by the following 7 factors: (1) Due to human perception, exploitation of the environment does not feature in planning. (2) Due to improper planning for the process of forest preparation. (3) Weak state-management of forests. (4) Due to shifting cultivation and slash and burn practice of some ethnic minority communities in upland areas. (5) Due to the process of converting land from forestry production to public and agricultural production. (6) Due to basic construction: building roads, hydroelectric works and so on. (7) Due to deforestation activities of loggers in order to obtain forestry products. Acutely aware of the role of forest protection and protection in responding to climate change as well as the cause of deforestation today, on January 22, 2015, the Prime Minister issued Decision No. 120 / QD-TTg approving "Scheme on protection and development of coastal

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forests to cope with climate change in the period of 2014-2020", in which propaganda, education and capacity-building are considered as one of the focuses of the project. Accordingly, the task of directing propaganda and education to raise awareness for all classes in society about the role and function of coastal forests, mobilizing people and economic sectors to actively participate in protecting and developing coastal forests in response to climate change and organizing the management and protection of coastal forests according to the current regulations should be met with the highest attention. Prior to Decision 120 / QD-TTg, the Government and ministries also issued many documents to implement the advocacy plan to protect forestry resources. Thus, according to the above analysis, we can see that the Party and State's guidelines and legal policies on awareness-raising, education and training on climate change have been relatively well-formed. This is an important basis for the enactment of laws to directly regulate relevant issues under the program of proactive measures to cope with climate change. However, the implementation of these policy-guidelines still has its shortcomings stemming from the legal policy system itself, as well as problems arising in the process of organizing and implementing: Firstly, the implementation of legal policies to raise education and training for people on climate change is still modest. The propaganda itself has not clearly stated the requirements and purposes of raising awareness and education. We cannot protect the environment by proactively responding to climate change when the level of awareness on the topic among people is low. Improving people's knowledge about climate change, in addition to building a knowledge base for people about the dangers of climate change, is necessary to practically form an attitude of compliance with laws prescribed by the State. Those laws are not only laws directly related to climate change but also regulations on environmental protection, conservation of forest resources, compliance with regulations against indiscriminate deforestation, and compliance with the regulations on preserving a clean, green environment and civilized lifestyle. In the current education program on climate change, the formation of a culture of energy-use and saving, national resources are not really reasonable. People still apply the thinking of "golden forest, silver sea" to teach students in schools, thereby inculcating profligacy in the sense of energy-use. This is debatably considered a failure in the current education and training program for the young generation recently. Secondly, the legal policy on raising awareness, education and training on climate change has not really focused on the formation of knowledge and a sense of responsibility for policy makers, who stand by the mantra that competent authority decides on local, regional and territorial economic development strategies nationwide. Proactive responses to climate change are not only about people's awareness of environmental protection. Officials seemingly perpetually sign investment contracts that pose an environmental threat, while others are only concerned about protecting the environment on the desk, but do not know what to consider building, or investing in to the end of economic development that will not destroy the environment. Such individuals may prove to be a dangerous risk for the people’s long-term security. The trade-off of an environment devastated by immediate economic benefits and ignoring longer-term benefits will have serious consequences that our people and our descendants will suffer. It requires that, when being aware that a particular activity is detrimental to the environment, officials must demand that investors undertake proper waste- treatment and environmental restoration during their constructions. This is an extremely serious omission in the current policy system of our country related to proactive responses to climate

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change. This has led to a situation in which people indiscriminately cut down forests, emissions are freely released into the atmosphere, officials ignore the ecological destruction that factories wreak. The decision of the authorities can threaten the environmental survival of the country. There is evidence of leaders' disregard for environmentally damaging investment projects. If projects are able to construct in a negligent manner with impunity, there is little to deter officials from signing these contracts or cause them to set an example for environmental education. Putting officials through qualifications can cause them to see the importance of choosing a progressive investor, conscious of protecting the environment. The fact that two foreign-backed MSG companies in Vietnam are Vedan and Ajinomoto is a testament to the leaders' negligence in their policymaking, as well as the people's lack of awareness of on-going investigations, detection of violations and signs of environmental destruction. 4. Conclusion It is important to recognize that community-based environmental management always produces the best results and costs the least. For a community to take action to respond voluntarily to climate change and rises in the sea level, the community must understand what climate change and a rising sea-level are. Specific solutions to formulating and perfecting legal policies on awareness-raising and education on climate change must pay attention to the following: Firstly, for community awareness-raising, it is necessary to identify the objects that need to be propagandized and propagated to the entire population, regardless of class or region. In the educational program, no object should be ignored. The success or failure of a climate change response program requires the cooperation of all stakeholders. This also comes from the continuous nature of the impact of the factors that make up the diversity and balance of the ecological environment. Therefore, in both the short and long-term, the policy on awareness- raising, education and training on climate change should focus on completing the following tasks subordinate to this more general aim:  Organizing training courses on awareness-raising on climate change for commune officials, Women's Union, Veterans Association and the Quarterly Executive Board, imparting basic knowledge on climate change such as: global warming, saline intrusion, sea-level rise, the impacts of climate change on people's livelihoods and so on; organizing training on prevention and the response to natural disasters and incidents in the area (embankment breakage, saltwater intrusion, drought, storms, tropical depressions…); putting basic measures in place to cope with natural disasters and incidents when they occur suddenly with little warning; training on techniques for cultivating new means to resist to salinity, drought and enhance flood tolerance would be significant.  Organizing extracurricular activities for students helps them to understand reality, debate and address weather phenomena and issues related to climate change; developing students’ insights and creativity, in their thinking on climate change mitigation and adaptation; organizing climate change courses for teachers within The Department of Environmental Protection, the district Division of Natural Resources and Environment, so that, subsequently, teachers share their knowledge of climate change with students, and the content of teaching is suitable for each age of students through relevant lessons and extracurricular activities; developing programs and training courses to enrich knowledge of climate change and sea-level rise for policy-makers and staff working in the fields related to climate change and sea level rise.

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 Organizing seminars on plant varieties and animal breeds that can stand salinity, drought and flood resistance, thus, teaching methods of agriculture, aquaculture with high efficiency to adapt to climate change; holding workshop forums to develop measures to help provinces adapt to Climate Change; organizing talks on environmental protection in flooded areas for farmers living in flooded areas in the provinces.  Strengthening communication-activities at the grassroots level; coordinating with the Department of Environmental Protection and the Department of Natural Resources and Environment of the districts to issue posters and leaflets about the impacts of climatechange on children's lives; broadcasting radio programs to citizens who inhabit population-dense areas, such as markets, People's Committees of communes and schools.  Concerning items on the activities-calendar: facilitating coordination between District Natural Resources and Environment Division, the Women's Union of wards , communes to organize contests on climate change, the Youth Union to organize a campaign to plant mangroves to protect the coastline and schools to organize singing and drawing contests with the theme of protecting the earth against climate change and sea level rise; replicating the model of community management of mangroves in coastal communes to many communes in the province. Secondly, on the policy-makers' side, those with positions of authority should take measures to organize education and propaganda to raise awareness for these subjects on sustainable economic development to ensure ecological balance, thereby proactively responding to Climate Change.  It can be seen that most fast-growing economies with sharp population-growth, like Vietnam, often bring about a degree of deforestation. A World Bank report in 1999 said that as the population grew, houses, roads and urban populations expanded, and when developing, it was necessary to connect areas by building roads. Rural road-construction not only stimulates economic development but also entails forest-destruction. The statistics show that about 90% of the deforestation in the area takes place within 100 km of the road. In the long run, therefore, the harmonious balance between trade-offs, development and conservation of forests requires the determination of competent people, and of course requires a deep awareness instilled in them. From here, the awareness-raising amongst competent officials on the protection of forest resources should be further fostered.  With the unpredictable changes in climate change today, most countries recognize that adaptation is inevitable. In addition to investing in infrastructure construction and coping- strategies in the future, it is also necessary to consider the financial capacity and permissible capacity. In addition, it is necessary to improve the capacity and create conditions for vulnerable people to adapt to climate change through investing in insurance, social protection, health care and education. This should also be integrated into policy-making programs for senior Party and State officials.  Education and training officials on climate change should make them aware of two objectives of mitigating climate change impacts and strategies to adapt to climate change and its consequences. The most important for Vietnam being the risk of rising sea-levels. Solutions to realize these two goals can be very diverse, such as strengthening research- activities, including measuring and assessing climate-change and rising sea-levels, from which policies and action plans can be developed; organizing and implementing measures to mitigate climate change and adverse impacts on people and the environment; and,

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identifying and organizing adaptive actions to cope with change climate and rising sea level. To progress these strategic solutions, innovations within science and technology and raising awareness within the community should always be points of focus.

References 1. Prime Minister (2012), Decision No. 1393/QD-TTg dated September 25, 2012 of the Prime Minister approving the National Green Growth Strategy. 2. Ford, D.J., Lea Berrang, L., & Paterson, J. (2011). A Systematic Review of Observed Climate Change Adaptation in Developed Nations. Climatic Change. Vol. 106, No. 2, pp. 327–336. doi: 10.1007/s10584-011-0045-5. 3. Germanwatch (2020). The Global Climate Risk Index. [Online]. Available at: https://e.vnexpress.net/news/news/vietnam-among-six-economies-worst-hit-by-climatechange-in-20-years-4023435.html, accessed on 25/9/2020. 4. MONRE (2016). Collection of Research Works of Science and Technology Program serving the National Target Program to Respond to Climate Change Period 2011 – 2015. Natural Resources, Environment and Cartography Publishing House, Hanoi. 5. H.MI et al. (September 2008). Vụ Vedan "giết" sông Thị Vải: "Thành công" suốt 14 năm. Available at: http://tuoitre.vn/tin/chinh-tri-xa-hoi/20080916/vu-vedan-giet-song-thi-vai- thanh-cong-suot-14-nam/278743.html. 6. Jung, T. (2012). Review of the Economics of Climate Change on Southeast Asia. In Anbumozhi, V., Breiling, M., Pathmarajah, S., & Reddy, R. V. (Eds), Climate change in Asia and the Pacific: How can countries Adapt? (pp. 9-16). India, the USA, the UK: Sage. 7. Lam, S., Tran, B., & Le, N. (2006). Livelihood, Vulnerability and Local Adaptation Strategies to Natural Disasters in Huong River Basin. Retrieved May 6, 2014, from http://webcache.googleusercontent.com/search?q=cache:Wu3gPhAtYHAJ:ww w.nlcap.net/fileadmin/NCAP/Countries/Vietnam/032135.0503xx.VN.CON- 01.Output6.v1.pdf+&cd=1&hl=en&ct=clnk&gl=vn 8. MONRE (2010). Vietnam’s Second National Communication to the United Nations Framework Convention on Climate Change. Retrieved 23 March 2017 from http://www4.unfccc.int/ndcregistry/PublishedDocuments/Viet%20Nam%20First /VIETNAM'S%20INDC.pdf 9. Nguyen Van Phuong (2017). Sự tham gia của người dân và các tổ chức xã hội trong ứng phó với biến đổi khí hậu. International Conference Proceedings “Climate Change - Legal and Strategic issues in ASEAN”. Hanoi. 10. Oxfam [Oxford Committee for Famine Relief]. (2009). Vietnam: Climate Change, Adaptation and Poor People. Retrieved June 8, 2014, from https://www.scribd.com/document/52828866/Vietnam-Climate-change- adaptation-and- poor-people 11. Pham Huu Nghi et al. (2016). Synthesized Report of Ministerial Scientific Project. Luận cứ khoa học và thực tiễn xây dựng và hoàn thiện pháp luật ứng phó với biến đổi khí hậu ở Việt Nam hiện nay, Ministry of Justice, Hanoi, 2016.

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12. Pham Huu Nghi (2017). Chính sách pháp luật ứng phó với biến đổi khí hậu của Việt Nam - Yêu cầu và giải pháp, State and Law Journal, vol 7/2017. 13. Toan, D. T. T., Kien, V. D., Bao Giang, K., Van Minh, H., & Wright, P. (2014). Perceptions of Climate Change and its Impact on Human Health: An Integrated Quantitative and Qualitative Approach. Global Health Action, 7(1), 23025-8. doi:10.3402/gha.v7.23025 14. Tran, T. A. (2015). Post-disaster Housing Reconstruction as a Significant Opportunity to Building Disaster Resilience: A case in Vietnam. Natural Hazards, 79(1), 61. doi:10.1007/s11069-015-1826-3 15. IPCC (2001), The 3rd Assessment of 2nd Working Group of the Intergovernmental Panel on Climate Change (IPCC). 16. The World Bank. (1999). Entering the 21st Century World Development Report 1999/2000. [Online]. Available: https://www.gfdrr.org/sites/default/files/publication/Entering%20the%2021st%20Centu ry.pdf 17. USAID. (2015). Infographic: Raising Climate Change Awareness of Communities in the Lower Mekong Basin. Retrieved fromhttp://mekongarcc.net/resource/infographic- raising-climate-change-awareness- communities-lower-mekong-basin 18. UNESCO. (2012). Education Sector Responses to Climate Change. Retrieved fromhttp://unesdoc.unesco.org/images/0021/002153/215305e.pdf. 19. Vietnam Institute of Meteorology, Hydrology and Environment, (2010). Biến đổi khí hậu và tác động ở Việt Nam, Science and Technology Publishing House, Hanoi. 20. WHO (2016). Ambient Air Pollution: A Global Assessment of Exposure and Burden of Disease. [Online]. Available at: http://www.who.int/phe/publications/air-pollution- global-assessment/en/, accessed on 1 October 2020.

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PART II

SUSTAINABILITY

MANAGEMENT

Using Fuzzy Topsis Method for Assessing the Sustainable Agriculture

Chia-Nan Wang1, Duy Hung Duong2, Thi Dieu Huong Duong1*, Hector Tibo1 1Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Taiwan 2Department of Mechanical Engineering, National Kaohsiung University of Science and Technology, Taiwan, [email protected] *Correspondence: [email protected]; [email protected]

Abstract Sustainable agriculture is about satisfying society's current food and textile needs without the ability of future generations to meet their own needs. This study aims to assess the agricultural system in the context of sustainable agriculture. The sustainable agriculture systems are generally evaluated by using linguistic terms since most of the evaluation criteria are intangible and inherently require imprecise data to be used. In this paper, we analyze ten alternative locations using seven different criteria based on linguistic data. One of the most-used multi- criteria decision-making methods, TOPSIS is used under fuzziness for the solution of this problem. We presented the application of the Fuzzy Technique for Order Performance by Similarity (Fuzzy TOPSIS) method to assess the agricultural systems. Keywords: Sustainable agriculture, fuzzy TOPSIS, an agricultural system

1. Introduction Sustainable agricultural development is closely linked to global food security and alleviating poverty, in particular in developing nations where 98% of the chronically hungry world currently. An important process for promoting the idea of sustainable agricultural systems is the agricultural sustainability evaluation (Astier et al., 2012). Fallah-Alipour and co-workers proposed a useful tool to support decisions in the farming sector that would help planners and policy experts find the right path and move towards sustainable development, or change the policies to stay in the right direction over time (Fallah-Alipour, Mehrabi Boshrabadi, Zare Mehrjerdi, & Hayati, 2018). In a major advance in 2010, Gómez-Limón et al. studied a methodology for evaluating farm sustainability (Gómez-Limón & Sanchez-Fernandez, 2010). Experiments on an assessment tool for sustainability assessment of agricultural systems conducted in 2007 by a group of researchers from Belgium (Van Cauwenbergh et al., 2007). An assessment of agricultural sustainability indicators in Bangladesh was carried out by Ranjan and Ngai (Roy & Chan, 2012). More recent evidence (Zulfiqar & Thapa, 2017) research the agriculture sector of Pakistan. The Greek Agricultural Systems have conducted a comparative assessment of the sustainability performance of various agricultural sectors by using an AHP method (Tzouramani, Mantziaris, & Karanikolas, 2020). (Ebad Ardestani et al., 2020) introduced a case study of the framework for evaluation and ranking by using TOPSIS method. A body of work exists describing the development of the Fuzzy TOPSIS method to assess the agricultural system. This paper aims at selecting the best location under multi-criteria and fuzzy environment. The originality of this paper comes from the first-time application of a fuzzy multi-criteria decision-

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making method for the agricultural system. Experts usually prefer making linguistic evaluations rather than making exact numerical assignments. For this reason, we have selected a fuzzy multi-criteria decision-making method and the experts really enjoyed this method because of its appropriateness for their evaluations. We have not forced them for exact numerical evaluations whittling the ones in their minds. 2. Research model This section describes the methodology and methods for the development of the agricultural system. The method used in the proposed system is a recent development based on Chen’s methodology (Chen & systems, 2000). 2.1. Elements of Fuzzy Numbers Theory The concept of fuzzy sets was introduced by L. A. Zadeh in his study published in 1965 (L. A. J. I. Zadeh & control, 1965). A value of the membership function of fuzzy set is between [0, 1]. The triangular fuzzy number can be defined as (a, b, c). The value a, b, and c (a ≤ b ≤ c), indicate the smallest, the promising and the largest value. A triangular fuzzy number is shown in Figure 1. (Lee, 2004; L. A. J. I. s. Zadeh, 1975). Figure 1: Triangular Fuzzy Number

l(y) F r(y) F 0 c a b Triangular fuzzy number can be described as: 0 푥 − 푎 푥 < 푎, 푥 푎 ≤ 푥 ≤ 푏, 휇 ( ) = 푏 − 푎 ((1) 퐹̃ 푐 − 푥 푏 ≤ 푥 ≤ 푐, 푐 − 푏 푥 > 푐, { 0 A fuzzy number is given by the representatives of each level of membership function as following: 퐹̃ = (퐹푙(푦), 퐹푟(푦)) = [푎 + (푏 − 푎)푦, 푐 + (푏 − 푐)푦], 푦 ∈ [0,1] ((2) F(y), F(y) indicates both the left and the right side of a fuzzy number, respectively. Two positive triangular fuzzy number (a1, b1, c1) and (a1, b2, c2) are presented as following:

(푎1, 푏1, 푐1) + (푎2, 푏2, 푐2) = (푎1 + 푎2, 푏1 + 푏2, 푐1 + 푐2)

(푎1, 푏1, 푐1) − (푎2, 푏2, 푐2) = (푎1 − 푎2, 푏1 − 푏2, 푐1 − 푐2)

(푎1, 푏1, 푐1) × (푎2, 푏2, 푐2) = (푎1 × 푎2, 푏1 × 푏2, 푐1 × 푐2) ((3)

(푎1, 푏1, 푐1) = (푎1/푐2, 푏1/푏2, 푐1/푎2) (푎2, 푏2, 푐2)

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To calculate the priority in the process of pairwise comparisons matrix, that are quantified using a 1 ÷ 9 scale. 2.2. Fuzzy Technique for Order Preference by Similarity to Ideal Solution (F-TOPSIS) TOPSIS model was proposed Hwang and Yoon (Hwang & Yoon, 1981). The main concept of TOPSIS is that the best options should have the shortest geometric distance from the positive ideal solution (PIS) and the longest geometric distance from the negative ideal solution (NIS) (Hwang & Yoon, 1981). There are m alternatives and n criteria, and the result of TOPSIS model shows the score of each option (Hwang & Yoon, 1981). In this section, the methods used in this work are explained in detail that is based on Chen’s study (Chen & systems, 2000). There are six steps of TOPSIS process as below: Step 1: Form a Committee of Decision Makers, Then Identify the Evaluation Criteria If we assume that the decision group has K persons, then the importance of the criteria and the ratings of the alternatives can be calculated as 1 푥̃ = [푥̃1 (+)푥̃1 (+) … (+)푥̃퐾] ((4) 푖푗 퐾 푖푗 푖푗 푖푗 1 푤̃ = [푤̃ 1 (+)푤̃ 1 (+) … (+)푤̃ 퐾] ((5) 푖푗 퐾 푖푗 푖푗 푖푗 퐾 퐾 Where 푥̃푖푗 and 푤̃푖푗 are the ratings and criteria weights of the K th decision maker. Step 2: Construct the Fuzzy Decision Matrix and the Normalized Fuzzy Decision Matrix The fuzzy decision matrix is constructed as

푥̃11 푥̃12 … 푥̃1푛 푥̃ 푥̃ … 푥̃ 퐷̃ = [ 21 22 2푛 ] ((6) ⋮ ⋮ ⋱ ⋮ 푥̃푚1 푥̃푚2 … 푥̃푚푛 and the vector of the criteria weights as

퐷̃ = [푤̃1, 푤̃2, … 푤̃푛] ((7)

Where 푥̃푖푗 and 푤̃푗, 푖 = 1, 2, … , 푚, 푗 = 1, 2, … , 푛 are linguistic varibles according to Step2. They can be described by the triangular fuzzy numbers 푥̃푖푗 = (푎푖푗, 푏푖푗, 푐푖푗) and 푤̃푗 = (푤푗1, 푤푗2, 푤푗3). For the normalization step, Chen uses the linear scale transformation in order to drop the units and make the criteria comparable; it is also important to preserve the property stating that the ranges of the normalized triangular fuzzy numbers belong to [0, 1]. The normalized fuzzy decision matrix denoted by 푅̃ is 푅̃ = [푟̃ ] 푖푗 푚푥푛 ((8) The set of beneﬁt criteria is B and the set of cost criteria is C, therefore

푎푖푗 푏푖푗 푐푖푗 푟푖푗̃ = ( ∗ , ∗ , ∗ ) , 푗 ∈ 퐵, 푖 = 1,2 , … , 푚 ((9) 푐푗 푐푗 푐푗 − − − 푎푗 푎푗 푎푗 푟푖푗̃ = ( , , ) , 푗 ∈ 퐶, 푖 = 1,2 , … , 푚 ((10) 푐푖푗 푏푖푗 푎푖푗 ∗ 푐푗 = max 푐푖푗, 푖푓 푗 ∈ 퐵, 푖 = 1,2 , … , 푚 ((11) 푖 − 푎푗 = min 푎푖푗, 푖푓 푗 ∈ 퐵, 푖 = 1,2 , … , 푚 ((12) 푖

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Step 3: Construct the Fuzzy Weighted Normalized Decision Matrix Then, the fuzzy weighted normalized decision matrix can be constructed as

푉̃ = [푣̃ ] , 푖 = 1, 2, … , 푚, 푗 = 1, 2, … , 푛 푖푗 푚푥푛 ((13) Where

푣̃푖푗 = 푟푖푗̃ ⨂푤̃푖푗, 푖 = 1, 2, … , 푚, 푗 = 1, 2, … , 푛 ((14)

The element 푣̃푖푗, 푖 = 1, 2, … , 푚, 푗 = 1, 2, … , 푛 ,are normalized positive triangular fuzzy numbers ranging from 0 to 1. Step 4: Determine the Fuzzy Positive Ideal Solution (FPIS) and the Fuzzy Negative Ideal Solution (FNIS) The fuzzy positive ideal solution (FPIS, A∗) and the fuzzy negative ideal solution (FNIS, A−) are ∗ ∗ ∗ ∗ 퐴 = (푣̃1, 푣̃2, … , 푣̃푛) ((15) − − − − 퐴 = (푣̃1 , 푣̃2 , … , 푣̃푛 ) ((16) Where ∗ − 푣̃푗 = (1, 1, 1) , 푣̃푗 = (0, 0, 0), 푗 = 1, 2, … , 푛 ((17) Step 5: Calculate the Distance of Each Alternative from FPIS and FNIS The distance of each of the alternatives from FPIS and FNIS can be calculated as 푛 ∗ ∗ 퐷푗 = ∑ 푑(푣̃ị푗, 푣̃푗 ) , 푖 = 1, 2, … , 푚, 푗 = 1, 2, … , 푛 (18) 푗=1 푛 − − 퐷푗 = ∑ 푑(푣̃ị푗, 푣̃푗 ) , 푖 = 1, 2, … , 푚, 푗 = 1, 2, … , 푛 (19) 푗=1 where d is the distance measurement between two fuzzy numbers (Equation (1.17)). Step 6: Calculate the Closeness Coefficient of Each Alternative The closeness coefficient of each alternative can be defined as − 퐷푖 퐶퐶푖 = ∗ _ , 푖 = 1, 2, … , 푚 (20) 퐷푖 + 퐷푖 Step 7: Rank the Alternatives

An alternative Ai is better than Aj if its closeness coefficient is closer to 1. Therefore, the final ranking of the alternatives is defined by the value of the closeness coefficient. The important evaluated data for the rating and weight of alternatives with respect to criteria are determined by opinions of decision-makers, as are shown in Table 1 and Table 2. Table 1: Linguistic variables for the weight of the criteria Linguistic variables Triangular fuzzy number Very Low (VL) (0, 0, 0.1) Low (L) (0, 0.1, 0.3) Medium Low (ML) (0.1, 0.3, 0.5) Medium (M) (0.3, 0.5, 0.7) Medium High (MH) (0.5, 0.7, 0.9)

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High (H) (0.7, 0.9, 1) Very High (VH) (0.9, 1, 1) Table 2: Linguistics variables for the rating Linguistic variables Triangular fuzzy number Very poor (VP) (0, 0, 1) Poor (P) (0, 1, 3) Medium poor (MP) (1, 3, 5) Fair (F) (3, 5, 7) Medium good (MG) (5, 7, 9) Good (G) (7, 9, 10) Very good (VG) (9, 10, 10)

3. Development of the Fuzzy TOPSIS model and An Illustrative Problem 3.1. Development of the Fuzzy TOPSIS model Overall, the criteria of the agricultural systems were selected in order to fully cover the three pillars of sustainability (main criteria) i.e economic, social, and environmental. A. The economic factor Average annual yield is the average yearly income on an investment. The measure unit of average annual yield is Kg/g. The principal cereals grown are paddy rice, coffee, rubber, tea, pepper. The indices of agricultural production show the relative level of the aggregate volume of agricultural production for each year in comparison with the base period. The agricultural production is for Crop production and Animal production. Animal density index is the livestock units per ha of utilized agricultural area. B. The environment factor Pesticides in Agriculture are chemicals compound designed to kill or control pests including insects, weeds, fungi, rodents and microbes. Chemical fertilizers in agriculture are generally classified according to their NPK content, representing the concentrations of the three principal plant nutrients, nitrogen (wt.%), phosphorus (wt.% P2O5 equivalent), and potassium (wt.% K2O equivalent) (Bell et al., 2011). Organic fertilizers include a variety of plant-derived materials that range from fresh or dried organic material to animal manures and litters to agricultural by-products (Green, 2015). C. The social factor The agricultural population index is defined as all people depending on agriculture, forestry, fishing and hunting for their livelihoods. 3.2. An Illustrative Problem In this section, according to the definition of Fuzzy TOPSIS and the factor of the agricultural systems. The proposed method is currently used to solve this problem and the step to solved problem is as follows:

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Step 1: The Decision makers (DM) use the linguistic rating variables to assess the importance of the factor and present it in Table 3. Table 3: The importance weight of the factor Factor Decision-maker Decision-maker Decision-maker 1 (DM1) 2 (DM2) 3 (DM3) Average annual yield ML ML H Indices of the agricultural MH MH ML sectors production Animal density index M H H Pesticides H MH ML Chemical fertilizers MH ML ML Organic fertilizers H MH ML Farming population index VH VH H Step 2: Decision-makers use the linguistic rating variables to assess and present the rating of alternatives for each factor in Table 4. Step 3: Converting the linguistic evaluation (shown in Tables 3 and 4) into triangular fuzzy numbers to construct the fuzzy decision matrix and determine the fuzzy weight of each criterion as Table 5. Table 4: The ratings of the decision makers under all criteria Factor Location DM1 DM2 DM3 Location 1 G G MG Location 2 F F MG Location 3 G G G Location 4 VG G MG Location 5 G G F

Location 6 G MG MG Location7 F F MG Location 8 F F G Location 9 VG F MG Location 10 MG VG F Location 1 MG G F Location 2 F G VG Location 3 F G MG Location 4 G G MG Indices of agricultural production Location 5 F MG G Location 6 F F MG Location 7 G MG F Location 8 F F MG

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Factor Location DM1 DM2 DM3 Location 9 MG G MG Location 10 MG G MG Location 1 G G G Location 2 P F MP Location 3 G G VG Location 4 G G G Location 5 P F MG Animal density index Location 6 F F G Location 7 G VG MG Location 8 VP F G Location 9 VG G F Location10 G VG MG Location 1 MG MG G Location 2 P F VG Location 3 G G G Location 4 VG G MG Location 5 P F G pesticides Location 6 F F G Location 7 MG VG F Location 8 VP P G Location 9 G G G Location 10 G G P Location 1 F F MG Location 2 MG G MG Location 3 MG G MG Location 4 G G G Location 5 P F MP Chemical fertilizers Location 6 G G VG Location 7 G G G Location 8 P F MG Location 9 F F G Location10 P MG MG Location 1 G G F Location 2 P F G Natural fertilizers Location 3 VG G VG Location 4 VG G G

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Factor Location DM1 DM2 DM3 Location 5 P MG MG Location 6 G G G Location 7 MG VG F Location 8 VP P G Location 9 VG VG VG Location10 MG VG G Location 1 G G F Location 2 P F G Location 3 VG G VG Location 4 VG G G Location 5 P MG MG Farming population index Location 6 G G G Location 7 MG VG F Location 8 VP P G Location 9 VG VG VG Location 10 MG VG G Table 5: The fuzzy decision matrix and fuzzy weights

Indices of Animal Farming Average Chemical Organic Location agricultural density Pesticides population annual yield fertilizers fertilizers production index index (5.7, 7.7, Location 1 (6.3, 8.3, 9.7) (5, 7, 8.7) (7, 9, 10) (3.7, 7.7) (5.7, 7.7, 9) (5.7, 7.7, 9) 9.3) (5.7, 7.7, Location 2 (3.7, 5.7, 7.7) (6.3, 8, 9) (1.3, 3, 5) (4, 5.3, 6.7) (3.3, 5, 6.7) (3.3, 5, 6.7) 9.3) (7.7, 9.3, (5.7, 7.7, (8.3, 9.7, Location 3 (7, 9, 10) (5, 7, 8.7) (7, 9, 10) (8.3, 9.7, 10) 10) 9.3) 10) (7.7, 9.3, Location 4 (7, 8.7, 9.7) (6.3, 8.3, 9.7) (7, 9, 10) (7, 8.7, 9.7) (7, 9, 10) (7.7, 9.3, 10) 10) (2.7, 4.3, Location 5 (5.7, 7.7, 9) (5, 7, 8.7) (3.3, 5, 6.7) (1.3, 3, 5) (3.3, 5, 7) (3.3, 5, 7) 6.3) (4.3, 6.3, Location 6 (5.7, 7.7, 9.3) (3.7, 5.7, 7.7) (4.3, 6.3, 8) (7.7, 9.3, 10) (7, 9, 10) (7, 9, 10) 8) (7, 8.7, (5.7, 7.3, (5.7, 7.3, Location 7 (3.7, 5.7, 7.7) (5, 7, 8.7) (7, 9, 10) (5.7, 7.3, 8.7) 9.7) 8.7) 8.7) (3.3, 4.7, (2.3, 3.3, (2.7, 4.3, (2.3, 3.3, Location 8 (4.3, 6.3, 8) (3.7, 5.7, 7.7) (2.3, 3.3, 4.7) 6) 4.7) 6.3) 4.7) Location 9 (5.7, 7.3, 8.7) (5.7, 7.7, 9.3) (6.3, 8, 9) (7, 9, 10) (4.3, 6.3, 8) (9, 10, 10) (9, 10, 10) Location (7, 8.7, (4.7, 6.3, (5.7, 7.3, 8.7) (5.7, 7.7, 9.3) (3.3, 5, 7) (7, 8.7, 9.7) (7, 8.7, 9.7) 10 9.7) 7.7) (0.5, 0.7, (0.4, 0.6, (0.2, 0.4, (0.4, 0.6, Weight (0.3, 0.5, 0.7) (0.3, 0.5, 0.7) (0.8, 0.9, 1) 0.9) 0.8) 0.6) 0.8) Source: Author’s calculation

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Step 4: Constructing the normalized fuzzy decision matrix as Table 6. Table 6: The fuzzy normalized decision matrix Average Indices of Animal Farming Chemical Organic Location annual agricultural density Pesticides population fertilizers fertilizers yield production index index (0.6, 0.8, (0.7, 0.9, (0.5, 0.7, (0.3, 0.5, (0.5, 0.7, Location 1 (0.5, 0.7, 0.8) (0.5, 0.7, 0.9) 0.97) 1) 0.9) 0.7) 0.9) (0.3, 0.5, (0.1, 0.3, (0.4, 0.5, (0.5, 0.7, (0.3, 0.5, Location 2 (0.6, 0.8, 0.9) (0.3, 0.5, 0.6) 0.7) 0.5) 0.6) 0.9) 0.6) (0.7, 0.9, (0.7, 0.9, (0.5, 0.7, Location 3 (0.5, 0.7, 0.8) (0.7, 0.9, 1) (0.8, 0.9, 1) (0.8, 0.9, 1) 1) 1) 0.9) (0.7, 0.8, (0.7, 0.9, (0.7, 0.8, Location 4 (0.6, 0.8, 0.9) (0.7, 0.9, 1) (0.7, 0.9, 1) (0.7, 0.9, 1) 0.9) 1) 0.9) (0.5, 0.7, (0.2, 0.4, (0.3, 0.5, (0.1, 0.3, (0.3, 0.5, Location 5 (0.5, 0.7, 0.8) (0.3, 0.5, 0.7) 0.9) 0.6) 0.6) 0.5) 0.7) (0.5, 0.7, (0.4, 0.6, (0.4, 0.6, Location 6 (0.3, 0.5, 0.7) (0.7, 0.9, 1) (0.7, 0.9, 1) (0.7, 0.9, 1) 0.9) 0.8) 0.8) (0.3, 0.5, (0.7, 0.8, (0.5, 0.7, (0.5, 0.7, Location 7 (0.5, 0.7, 0.8) (0.7, 0.9, 1) (0.5, 0.7, 0.8) 0.7) 0.9) 0.8) 0.8) (0.4, 0.6, (0.3, 0.4, (0.2, 0.3, (0.2, 0.4, (0.2, 0.3, Location 8 (0.3, 0.5, 0.7) (0.2, 0.3, 0.4) 0.8) 0.6) 0.4) 0.6) 0.4) (0.5, 0.7, (0.6, 0.8, (0.4, 0.6, Location 9 (0.5, 0.7, 0.9) (0.7, 0.9, 1) (0.9, 1, 1) (0.9, 1, 1) 0.8) 0.9) 0.8) (0.5, 0.7, (0.7, 0.8, (0.4, 0.6, (0.3, 0.5, (0.7, 0.8, Location 10 (0.5, 0.7, 0.9) (0.7, 0.8, 0.9) 0.8) 0.9) 0.7) 0.7) 0.9) Source: Author’s calculation Step 5: Constructing the weighted normalized fuzzy decision matrix as Table 7. Table 7: The fuzzy weighted normalized decision matrix Average Indices of Animal Farming Chemical Organic Location annual agricultural density Pesticides population fertilizers fertilizers yield production index index (0.1, 0.4, (0.3, 0.6, (0.2, 0.4, (0.08, 0.2, (0.2, 0.4, Location 1 (0.1, 0.3, 0.6) (0.4, 0.7, 0.9) 0.6) 0.9) 0.7) 0.4) 0.7) (0.1, 0.2, (0.07, 0.2, (0.1, 0.3, (0.1, 0.3, (0.1, 0.3, Location 2 (0.2, 0.4, 0.6) (0.2, 0.4, 0.6) 0.5) 0.4) 0.5) 0.5) 0.5) (0.2, 0.4, (0.4, 0.7, (0.3, 0.5, (0.1, 0.3, (0.3, 0.6, Location 3 (0.1, 0.3, 0.6) (0.6, 0.9, 1) 0.6) 0.9) 0.8) 0.5) 0.8) (0.2, 0.4, (0.3, 0.6, (0.3, 0.5, (0.1, 0.3, (0.3, 0.5, Location4 (0.2, 0.4, 0.7) (0.6, 0.9, 1) 0.6) 0.9) 0.7) 0.6) 0.8) (0.1, 0.3, (0.1, 0.3, (0.1, 0.3, (0.03, 0.1, (0.1, 0.3, Location 5 (0.1, 0.3, 0.6) (0.2, 0.4, 0.7) 0.6) 0.5) 0.5) 0.3) 0.5) (0.1, 0.3, (0.2, 0.4, (0.1, 0.4, (0.1, 0.4, (0.3, 0.5, Location 6 (0.1, 0.3, 0.5) (0.5, 0.8, 1) 0.6) 0.7) 0.6) 0.6) 0.8) (0.1, 0.2, (0.3, 0.6, (0.2, 0.4, (0.1, 0.3, (0.2, 0.4, Location 7 (0.1, 0.3, 0.6) (0.4, 0.7, 0.8) 0.5) 0.8) 0.6) 0.6) 0.6) (0.1, 0.3, (0.1, 0.3, (0.1, 0.2, (0.06, 0.1, (0.1, 0.2, Location 8 (0.1, 0.3, 0.5) (0.1, 0.3, 0.4) 0.5) 0.5) 0.3) 0.4) 0.3) (0.1, 0.3, (0.3, 0.6, (0.3, 0.5, (0.1, 0.2, (0.3, 0.6, Location 9 (0.2, 0.4, 0.7) (0.7, 0.9, 1) 0.5) 0.8) 0.8) 0.5) 0.8) (0.1, 0.3, (0.3, 0.6, (0.2, 0.4, (0.07, 0.2, (0.3, 0.5, Location 10 (0.2, 0.4, 0.7) (0.5, 0.8, 0.9) 0.5) 0.8) 0.6) 0.4) 0.7) Source: Author’s calculation

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Step 6: Determine FPIS and FNIS as A∗ = [(1, 1, 1), (1, 1,1), (1, 1, 1), (1, 1,1), (1, 1, 1), (1, 1,1), (1, 1, 1)], A- = [(0, 0, 0), (0, 0, 0), (0, 0, 0), (0, 0,0), (0, 0, 0), (0, 0, 0), (0, 0, 0)], Step 7: Calculate the distance of each candidate from FPIS and FNIS, respectively, as Table. Step 8: Calculate the closeness coefficient of each candidate as Closeness coefficient = [0.493, 0.375, 0.552, 0.553, 0.369, 0.489, 0.484, 0.309, 0.536, 0.494]

Step 9: According to the closeness coefficient index, the ranking of the ten location is L1 to L10. Obviously, the best selection is location L4. Figure 2 illustrates the results of the ten location. The evaluated ranks of locations by the FTOPSIS approach are presented in Figure 2. Figure 2: The final Fuzzy TOPSIS result

Source: Author’s calculation 4. Conclusion As far as the future of sustainable agriculture is concerned, when the population of the earth reaches 9 billion, many believe that we will be completely deprived of many natural resources that need alternative sustainable solutions. The aim of the proposed methodology is to assess the agricultural system, to find out the effective location, and define the policies to increase economic growth. Fuzzy TOPSIS provided a framework approach for evaluating the agricultural systems with a set of factors. This study contributes to the new method to assess the agricultural systems in several ways. The paper concludes with recommendations that could assist policy-makers in establishing a policy promoting sustainable agriculture. Sustainable agricultural systems can be both economically, environmentally and socially viable, and contribute positively to local livelihoods. In addition, the MCDM method for sustainability assessment is becoming one of the future research opportunities. For future research, this method will enable organizations to make better decisions for sustainable agriculture, green economy, the sustainable business between Vietnam and Taiwan.

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References 1. Astier, M., García-Barrios, L., Galván-Miyoshi, Y., González-Esquivel, C. E., Masera, O. R. J. E., & society. (2012). Assessing the sustainability of small farmer natural resource management systems. A critical analysis of the MESMIS program (1995-2010). 17(3). 2. Bell, D., Towler, B., Fan, M., Bell, D., Towler, B., Fan, M. J. C. g., & applications, i. (2011). Chapter 6–Sulfur Recovery. 113-136. 3. Chen, C.-T. J. F. s., & systems. (2000). Extensions of the TOPSIS for group decision- making under fuzzy environment. 114(1), 1-9. 4. Ebad Ardestani, M., Sharifi Teshnizi, E., Babakhani, P., Mahdad, M., Golian, M. J. J. o. A. W. E., & Research. (2020). An optimal management approach for agricultural water supply in accordance with sustainable development criteria using MCDM (TOPSIS)(Case study of Poldasht catchment in West Azerbaijan Province-Iran). 8(2), 88-107. 5. Fallah-Alipour, S., Mehrabi Boshrabadi, H., Zare Mehrjerdi, M. R., & Hayati, D. J. S. (2018). A framework for empirical assessment of agricultural sustainability: The case of Iran. 10(12), 4823. 6. Gómez-Limón, J. A., & Sanchez-Fernandez, G. J. E. e. (2010). Empirical evaluation of agricultural sustainability using composite indicators. 69(5), 1062-1075. 7. Green, B. (2015). Fertilizers in aquaculture. In Feed and Feeding Practices in Aquaculture (pp. 27-52): Elsevier. 8. Hwang, C.-L., & Yoon, K. (1981). Methods for multiple attribute decision making. In Multiple attribute decision making (pp. 58-191): Springer. 9. Lee, K. H. (2004). First course on fuzzy theory and applications (Vol. 27): Springer Science & Business Media. 10. Roy, R., & Chan, N. W. J. T. E. (2012). An assessment of agricultural sustainability indicators in Bangladesh: review and synthesis. 32(1), 99-110. 11. Tzouramani, I., Mantziaris, S., & Karanikolas, P. J. S. (2020). Assessing Sustainability Performance at the Farm Level: Examples from Greek Agricultural Systems. 12(7), 2929. 12. Van Cauwenbergh, N., Biala, K., Bielders, C., Brouckaert, V., Franchois, L., Cidad, V. G., . . . environment. (2007). SAFE—A hierarchical framework for assessing the sustainability of agricultural systems. 120(2-4), 229-242. 13. Zadeh, L. A. J. I., & control. (1965). Fuzzy sets. 8(3), 338-353. 14. Zadeh, L. A. J. I. s. (1975). The concept of a linguistic variable and its application to approximate reasoning—I. 8(3), 199-249. 15. Zulfiqar, F., & Thapa, G. B. J. L. u. p. (2017). Agricultural sustainability assessment at provincial level in Pakistan. 68, 492-502.

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Modelling the Dynamic Impact of Environmental Protection Expenditure on Economic Growth in Taiwan

Nguyen Thanh Tham Institute of Economics, Ho Chi Minh National Academy of Politics

Abstract The purpose of the study is to examine the relationship between government expenditure of environmental protection, energy consumption and economic growth in Taiwan by using the Autoregressive Distributed Lag Bounds test (ARLD) for a dataset of time series from 1991 to 2018. Results of the study provide strong evidence of co-integration among the variables. For both the long- term and the short-term, environmental protection expenditure contributes to promote economic growth while there is a negative relationship between energy consumption and economic growth in Taiwan from 1991 to 2018. Interestingly, the estimations in the long-run are highly significant; in contrast, the short-run relationships are insignificant. The findings imply that Taiwan’s authority should spend more its budgets on activities which contribute to protect environment such as R&D. In particular, investing more in renewable energy might be an ideal solution in reducing consumption of fossil-fuel energy in the line with raising awareness of environmental protection as well as the widespread use of renewable energy and other environmentally friendly products, thus sustainably enhancing economic growth in Taiwan in the long run. Keywords: Environmental protection expenditure, energy consumption, economic growth, Taiwan, the ARDL.

1. Introduction Environmental pollution has been becoming a serious and urgent problem in the line with processes of social-economic development since the industrial revolution in the 19th century. One of the key reasons for that is because of increasing emissions caused by combustion-related activities of fossil-fuel, mainly from transport and industry. The global witnessed a remarkable increase in the emission by 50% between 1990 and 2010, thus and leading to damages on both the economy and human. As estimated by OECD and WHO in 2015, Europe was costed approximately USD 1.6 trillion for early death and disability resulted from air pollution (WHO, 2015). Many nations are placing their great attempts to protect and prevent environment from pollution, and pursuiting a low-carbon economy by spending more public budgets on environmental protection activities. Since the end of the twentieth century, there has been an upward trend of establishing “pollution abatement and control expenditure” (hereby PAC) worldwide. According to OECD (1993), PAC expenditure is known as investment or financial resources to public sector, companies as well as households for controlling and fighting against environmental pollution. Specifically, the main purpose of the expenditure is not only to recover the economy from negative consequences of environmental pollution but also to focus on R&D activities, which are looking forward to innovated solutions in dealing with the problem of environmental pollution. Applying clean technologies might bring about a lower-level of using fossil energy as well as stimulate the use of resources more efficient, thus mitigating environmental pollution. Hence, in the long run, economic growth can be beneficial from the environmental protection policies.

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Taiwan is one of the pioneers in the campaign to protect the environment against the seriously negative effects of environmental pollution in the socio-economic development. Due to limited natural resources, Taiwan has significantly relied on imported energy sources for nearly 60 years. The share of imported energy accounted for nearly 97% of total energy consumption, as of 2014 (Kao & Wan, 2017). During the 1970s -1980s, the world witnessed a global oil crisis leading to a considerable supply of energy. It made Taiwan’s economy fell into subsequent recessions. Figure 1: GDP growth rate% in Taiwan 1952-2019

-2

1952 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018

-4

Source: The National Statistics of Taiwan Since then, Taiwan’s authority has officially started placing its environmental protection strategy as an emphasis coupled with the process of economic development. Accordingly, Taiwan has established its environmental protection system, mainly the Environmental Protection Agency (hereby EPA), which was upgraded from the Environmental Protection Bureau on August 22, 1987. The vision of EPA is forward to a green earth and sustainability. Figure 2: Priorities of the Environmental Protection Administration, Taiwan

Source: Environmental Protection Administration, R.O.C.(Taiwan) Annually, EPA has been funded a large amount of budget from Taiwan’s authorities, that has been spent and invested in inclusive actions of protecting environment such as R&D and so on.

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Figure 3: Budget of Environmental Protection Agencies (2006-2019)

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

Source: Environmental Protection Administration, R.O.C.(Taiwan) There has been an increasingly large amount of research on the association between energy consumption, environmental protection expenditure and economic growth. With respects to the effect of energy consumption on economic growth, previous studies show that energy consumption highly relates to economic growth. Narayan and Popp (2012) point out a negatively causal impact of energy consumption on real gross domestic product in the long- term by using a Granger causality test for a panel dataset of 93 countries. In contrast, Said and Hammami (2015) shows that a rise in energy consumption leads to a higher rate of economic growth by utilizing the Generalized Method of Moments (GMM) for a panel dataset of 58 countries between 1990 and 2012. Similarly, the positive effect of energy consumption on economic growth was found in the Gozgor, Lau and Lu (2018) through employing the panel ARDL in the line with the panel quantile regression (PQR) for 29 OECD countries from 1990 to 2013. For Taiwan, Kao and Wan (2017) studied non-linear relationship between GDP and energy consumption from 1982 to 2014 by using the Granger-causality test. The research’s findings point out a bidirectional relationship of being regime-dependent among the variables. Meanwhile, energy consumption plays as a driver to economic growth. Interestingly, Lee and Chang (2005) provide evidence of an inverse U-shape relationship between energy consumption and economic growth in Taiwan from 1955 to 2003. This association exists only in the localities where energy consumption is at a low-level, however. Regarding to the environmental protection expenditure, little research has focused on its association with Co2 emissions reduction so far. Adebumiti and Masih (2018) shows that government expenditure incorporating with shocks of energy consumption highly correlates with economic growth by using the Autoregressive Distributed Lag Bounds test for a production function for Nigeria from 1980 to 2014. In the Krajewski (2016), a significantly positive effect of the public expenditure of environmental protection on economic growth is found by estimating a production function along with a utility function for a panel of eleven countries in the Central Europe region from 2001 to 2012. Particularly, the role of public environmental protection expenditure in enhancing economic growth is clearly indicated in the period of the global financial crisis. However, Pearce and Palmer (2001), by using a dataset of OECD countries for investigating public and private environmental expenditures, shows that the impact of expenditure of environmental protection in both public and private sectors on

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gross domestic product is still vague. Findings of the study just show slightly evidence of the negative effect of environmental protection expenditure on economic. The direction of the effects of energy consumption and government expenditure on economic growth are various but still not clear. For Taiwan, there is little research focusing on the relationship of environmental protection expenditure on economic growth. Hence, it is important to extent our knowledge of the role of government expenditure of environmental protection in promoting economic growth in Taiwan. This study will examine the impacts of environmental protection expenditure incorporating with energy consumption on economic growth in Taiwan in the period 1991-2018 by using the Autoregressive Distributed Lag Bounds test. Not only do this study’s findings add to a growing body of literature on the impact of environmental protection expenditure on economic growth, but they also provide useful references to policy-makers in an effort to enhance contribution of environmental protection expenditure to a higher level of economic growth in Taiwan. This research will be divided into four sections, namely Introduction, Data and methodology specifications, Empirical Results, Discussion and Conclusion. 2. Data and methodology specifications To examine the relationship between government expenditure of environmental protection and economic growth in Taiwan from 1991 to 2018, the following model will be used:

In which: Lgdp: economic growth denoted by log of gross domestic product X: a set of the other independent variables, including government expenditure of environmental protection (ENEXP), and energy consumption (CONSUMP).

휇푡 : error terms presenting for other factors that might affect the dependent variable. Data utilized in the research are annual time series collected from the National Statistics of Taiwan for a 28-year period from 1991 to 2018. Detail statistics of the variables are as follows: Table 1: Descriptive statistics of the variables Variable LGDP ENEXP CONSUMP Mean 4.4825 35510.79 95.6339 Median 4.4785 39433 97.52 Max 4.6243 61891 101.82 Min 4.2332 345 76 Std.Dev 0.1176 18012.51 6.0624 Observations 28 28 28

For methodology, the study will be conducted by using the Auto-regressive Distributed Lag approach (ARDL) to examine the existence of co-integration among the variables. In other words, the method is to assess both long-term and short-term effects of the government expenditure of environmental protection on economic growth in Taiwan between 1991 and 2018. If the variables are co-integrated, there is a long-run relationship among dependent and independent variables. Accordingly, the Error Correction Model (ECM) will be conducted to

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estimate the short-run relationships among the variables. Otherwise, the VAR approach will be employed to estimate the short-run association between variables. From the function (1), an econometric model of the ARDL estimation used in this study will be as follows:

In which: - N is the optimal lag length.

- 훽푖 , 푖, 푖, are the short-term dynamic coefficients of the ARDL models

- 1, 2, 3 are the long-run coefficients of the ARDL models -  is the first difference

- 푡 is the disturbance - 훽0 is the intercept. Lastly, checking the validity of the ALRD model will be conducted by using residual diagnostics (i.e. the serial correlation, heteroskedasticity and histogram-normality) and stability diagnostic (cumulative sum of recursive residuals-CUSUM test). 3. Empirical results 3.1. Unit root test Results of the Augmented Dickey-Fuller test with the null hypothesis of existing unit root (or being not stationary) are shown in the Table 2. As can be seen in the Table 2, LGDP and CONSUMP are stationary at both the level forms and first-different forms while ENEXP satisfies the stationary conditions at only the first-different form. In other words, LGDP ~ I (0), LGDP ~ I (1); ENEXP ~ I (1); CONSUMP ~ I (0) and CONSUMP ~ I (1). It implies that the ARDL and Bound test is applicable for the model. Table 2: Results of unit root test and decision on the order of integration

Augmented Dickey-Fuller Test Result Null hypothesis: The variable has a unit root Variables With intercept With trend and intercept None Decision t-statistics p-value t-statistics p-value t-statistics p-value LGDP -2.128296 0.2358 -4.804906*** 0.0051 2.675418 0.9972 I (0) D(LGDP) -5.713611*** 0.0001 -5.748875*** 0.0004 -4.858948*** 0.0000 I (1) ENEXP -1.369950 0.5817 -1.896325 0.6287 1.508824 0.9640 I (1) D(ENEXP) -5.164307*** 0.0003 -5.178289*** 0.0015 -4.295597*** 0.0001 CONSUMP -2.886364* 0.0606 -4.095399** 0.0177 0.357003 0.7805 I (0) D(CONSUMP) -2.111378 0.2420 -1.370652 0.8457 -2.268792** 0.0251 I (1) The asterisk’s *** means the significant at 1% level The asterisk’s ** means the significant at 5% level The asterisk’s * means the significant at 10% level Source: Author’s calculation

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3.2. Co-integration test and ARDL Long Run Form and Bounds Test The results of the ARDL and Bounds test for co-integration are presented in the Table 3. From the Table 3, it is clear that F-statistics of the ARDL and Bounds test for co integration 5.095714, and greater than the lower-bound of 4.267 and less than the upper-bound of 5.473 at 5% significant level. Therefore, the null hypothesis, which there is co-integration among variables, fails to reject. In other words, co-integrations or a long-run relationship exist among LGDP, ENEXP, CONSUMP. Table 3: ARDL Long Run Form and Bounds Test I(0) at I(1) at Dependent Independent F- Finite significant significant Decision Variables Variables statistics sample levels at levels at 5% 5% LGDP ENEXP, 5.095714 30 4.267 5.473 Co- CONSUMP integration Source: Author’s calculation According to the results of the ARDL Long Run Form and Bounds Test represented in the Table 4, the coefficients of the government expenditure of environmental protection and energy consumption are 1.85E-05 (being significant at 1%) and -0.049359 (being significant at 5%), respectively. It implies that an increase in the government expenditure of environmental protection significantly lead to a higher rate of economic growth. In contrast, energy consumption has a significantly negative effect on economic growth in Taiwan from 1991 to 2018. Table 4: Results of the ARDL Long Run Form and Bounds Test Variable Coefficient Std. Error t-Statistic Prob.

CONSUMP - 0.049359 0.017783 - 2.775722 0.0157 ENEXP 1.85E-05 3.76E-06 4.919205 0.0003

Source: Author’s calculation 3.3. Short-run estimations As mentioned earlier, because of having co-integration among the variables, the short-run relationship between LGDP, ENEXP, CONSUMP will be estimated by using Error Correction Mechanism (ECM). Its results are presented in the Table 5. Table 5: Results of the Error Correction test Durbin-Watson stat. 2.189783

Variable Coefficient Std. Error t-Statistic Prob.

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D(ENEXP(-1)) -3.21E-06 1.17E-06 -2.737483 0.0169 D(ENEXP(-2)) -9.30E-07 9.26E-07 -1.004678 0.3334 D(ENEXP(-3)) -2.10E-06 1.01E-06 -2.068944 0.0590 CointEq(-1)* -0.423745 0.100895 -4.199882 0.0010

Source: Author’s calculation The results of Table 5 show that the coefficients of D(CONSUMP) and D(ENEXP) are - 0.010671 and 1.48E-06 respectively but are not significant even at 10%. There is strong evidence that energy consumption decreases insignificantly economic growth; however, the government expenditure of environmental protection insignificantly associates with a higher of economic growth in Taiwan from 1991 to 2018. 3.4. Diagnostic tests Four main diagnostic tests will be presented in this section, namely: Breusch-Godfrey Serial Correlation LM; Heteroskedasticity test (Breusch-Pagan-Godfrey Test); Histogram-Normality test; and Stability Diagnostic test. 3.4.1. Breusch-Godfrey Serial Correlation LM For the test of serial correlation, Breusch-Godfrey Serial Correlation LM Test is utilized. The null hypothesis of the test is that the residuals are serially uncorrelated. Table 6: Breusch-Godfrey Serial Correlation LM Test Null hypothesis F-statistic P-value Decision The residuals are serially uncorrelated 0.191504 0.8284 No Serial Correlation Source: Author’s calculation From the results of the Breusch-Godfrey Serial Correlation LM Test in the Table 6, p-value for F-statistics is 0.8284 (i.e. insignificant even at 10%). Therefore, we fail to reject the null hypothesis of having a serial correlation among variables. It implies that the ARDL estimations in the study are not suffered from serial correlation. 3.4.2. Heteroskedasticity test - Breusch-Pagan-Godfrey test Breusch-Pagan-Godfrey test was used to check whether the residuals are homoscedastic or not. Results of the Breusch-Pagan-Godfrey test for heteroskedasticity is shown in the Table 7. Table 7: Breusch-Pagan-Godfrey (BPG) Test for Heteroskedasticity Null hypothesis F-statistic P-value Decision the residuals are homoskedastic 0.500049 0.8615 Homoskedasticity Source: Author’s calculation As can be seen in the Table 7, p-value = 0.8615 and greater than 0.05, thus leading to fail to reject the null hypothesis of being homoscedastic at the significance level of 5%. It implies that the residuals are not heteroskedastic at 5% significance level. 3.4.3. Normality test The results of the histogram-normality test for the model are shown in the Figure 4. The null hypothesis for the normality test is that the distribution of the data is normal. As can be seen from the histogram tests, the p-value for the normality test is 0.769210 (i.e. insignificant even

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at 10%). Thus, the null hypothesis is failed to reject. We can conclude that there is a normal distribution in the data used in the study. Figure 4: Histogram-Normality test 6 Series: Residuals Sample 1995 2018 5 Observations 24

4 Mean -2.05e-15 Median -0.001426 3 Maximum 0.028465 Minimum -0.029975 Std. Dev. 0.015342 2 Skewness 0.311279 Kurtosis 2.629592 1 Jarque-Bera 0.524781 0 Probability 0.769210 -0.03 -0.02 -0.01 0.00 0.01 0.02 0.03 Source: Designed by author 3.4.4. Stability Diagnostic test Stability diagnostics for the model is conducted by utilized CUSUM test shown in the Figure 5. Clearly, since the recursive residuals are within the 5% critical range; hence, we can conclude that our models satisfy the stability diagnostics. Figure 5: Plot of cumulative sum of the recursive residuals 12

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CUSUM 5% Significance Source: Designed by author 4. Discussion and Conclusion The study examines the impacts of government expenditure of environmental protection, energy consumption on economic growth in Taiwan. In the research, the Autoregressive Distributed Lag Bounds test (ARLD) is used for the dataset of time series in the 28-year period from 1991 to 2018. The findings of the study show a co-integration among the variables. In other words, the series are far away from stochastic trends and have a linear combination. It implied that the regression of environmental protection expenditure, energy consumption on economic growth in Taiwan is meaningful, thus existing long-run relationships among the

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variables. For both the long-term and the short-term, environmental protection expenditure leads to a higher rate of economic growth while there is a negative relationship between energy consumption and economic growth in Taiwan from 1991 to 2018. The estimations in the long- run are highly significant; in contrast, the short-run relationships are insignificant. This result is consistent with the findings of Adebumiti et al., (2018) and Krajewski (2016). One possible explanation for the positive impact of environmental protection expenditure on economic growth in Taiwan is that the Taiwanese authority might tend to spend more its budget of environmental protection on R&D activities for renewable energy in an effort to reduce fossil- fuel energy use to be forward to a low-carbon economy. With an increase in the environment protection expenditure, not only is environmental quality constantly improved, but it also contributes to a higher level of efficiency in using and converting natural resources into production, thus enhancing the economy in a sustainable way. The results of the research both enhance our understanding and add to literature’s growing body of the role of the government expenditure of environmental protection and energy consumption in promoting economic growth. Furthermore, the findings of this study have a number of important implications for future practice in Taiwan. An implication of these findings is that both the government expenditure of environmental protection and energy consumption should be taken into account when promoting economic growth. On the one hand, expenditures of environmental protection should be diversified and expanded to the private sector such as companies because there is a majority of energy consumption utilized in their production activities. With respects to structures of expenditures, more budgets of environmental protection should be focused on research and development of environmentally friendly products, especially renewable energies. By doing so, it not only increases the efficiency of spending on environmental protection, but also contributes to reduce the overall energy intensity of the economy. Additionally, as known as a technology hub, the development of renewable energy in Taiwan can both meet its domestic demand and become a spearhead industry with the export of environmentally friendly energy products, thus contributing to an increase national income associated with a higher level of economic growth. More importantly, the Taiwanese authority should constanly raise awareness of environmental protection as well as the widespread use of renewable energy and other environmentally friendly products. This might contribute to minimize environmental pollutants as well as considerablely mitigate socio- economic damages caused by environmental pollution. Hence, the authority can use their environmental protection expenditure for regenerative activities such as preventing from environmental pollution rather than spending on remedial activities resulted from environmental pollution. References 1. Adebumiti, Q., & Masih, M. (2018). Economic Growth, Energy Consumption and Government Expenditure: Evidence from a Nonlinear ARDL Analysis. 2. Gozgor, G., Lau, C. K. M., & Lu, Z. (2018). Energy Consumption and Economic growth: New Evidence from the OECD countries. Energy, 153, 27-34. 3. Kao, C. W., & Wan, J. Y. (2017). Energy Consumption and Economic growth: Further Evidence from Taiwan. International Journal of Economics and Finance, 9(7), 165-178. 4. Krajewski, P. (2016). The Impact of Public Environmental Protection Expenditure on Economic Growth. PROBLEMY EKOROZWOJU–Problems of Sustainable Development, 11(2), 99-104.

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5. Lee, C. C., & Chang, C. P. (2007). The Impact of Energy Consumption on Economic Growth: Evidence from Linear and Nonlinear Models in Taiwan. Energy, 32(12), 2282- 2294. 6. Narayan, P. K., & Popp, S. (2012). The Energy Consumption-real GDP nexus Revisited: Empirical Evidence from 93 countries. Economic Modelling, 29(2), 303-308. 7. PEARCE D., PALMER Ch., 2001, Public and Private Spending for Environmental Protection: A Cross-country Policy Analysis, Fiscal Studies, Vol. 22, No. 4, p. 403-456. 8. Saidi, K., & Hammami, S. (2015). The Impact of Energy Consumption and CO2 Emissions on Economic Growth: Fresh Evidence from Dynamic Simultaneous-Equations Models. Sustainable Cities and Society, 14, 178-186. 9. WHO. (2015). Air Pollution Costs European Economies US$ 1.6 trillion a year in Diseases and Deaths, new WHO study says. Retrieved from: https://www.euro.who.int/en/media-centre/sections/press-releases/2015/04/air- pollution-costs-european-economies-us$-1.6-trillion-a-year-in-diseases-and-deaths,- new-who-study-says 10. Wolde-Rufael, Y. (2012). Nuclear Energy Consumption and Economic Growth in Taiwan. Energy Sources, Part B: Economics, Planning, and Policy, 7(1), 21-27. Apendix Unit root tests Null Hypothesis: LGDP has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 2.128296 0.2358 Test critical values: 1% level -3.699871 5% level -2.976263 10% level -2.627420

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: LGDP has a unit root Exogenous: Constant, Linear Trend Lag Length: 6 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Full er test statistic - 4.804906 0.0051 Test critical values: 1% level -4.467895 5% level -3.644963 10% level -3.261452

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*MacKinnon (1996) one-sided p-values.

Null Hypothesis: LGDP has a unit root Exogenous: None Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic 2.675418 0.9972 Test critical values: 1% level -2.653401 5% level -1.953858 10% level -1.609571

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: D(LGDP) has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 5.713611 0.0001 Test critical values: 1% level -3.711457 5% level -2.981038 10% level -2.629906

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: D(LGDP) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 5.748875 0.0004 Test critical values: 1% level -4.356068 5% level -3.595026 10% level -3.233456

*MacKinnon (1996) one-sided p -values.

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Null Hypothesis: D(LGDP) has a unit root Exogenous: None Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 4.858948 0.0000 Test critical values: 1% level -2.656915 5% level -1.954414 10% level -1.609329

*MacKinnon (1996) one-sided p -values. Null Hypothesis: ENEXP has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 1.369950 0.5817 Test critical values: 1% level -3.699871 5% level -2.976263 10% level -2.627420

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: ENEXP has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 1.896325 0.6287 Test critical values: 1% level -4.339330 5% level -3.587527 10% level -3.229230

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: ENEXP has a unit root Exogenous: None

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Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic 1.508824 0.9640 Test critical values: 1% level -2.653401 5% level -1.953858 10% level -1.609571

*MacKinnon (1996) one-sided p -values. Null Hypothesis: D(ENEXP) has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 5.164307 0.0003 Test critical values: 1% level -3.711457 5% level -2.981038 10% level -2.629906

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: D(ENEXP) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 5.178289 0.0015 Test critical values: 1% level -4.356068 5% level -3.595026 10% level -3.233456

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: D(ENEXP) has a unit root

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Exogenous: None Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 4.295597 0.0001 Test critical values: 1% level -2.656915 5% level -1.954414 10% level -1.609329

*MacKinnon (1996) one-sided p -values. Null Hypothesis: CONSUMP has a unit root Exogenous: Constant Lag Length: 1 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 2.886364 0.0606 Test critical values: 1% level -3.711457 5% level -2.981038 10% level -2.629906

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: CONSUMP has a unit root Exogenous: Constant, Linear Trend Lag Length: 1 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 4.095399 0.0177 Test critical values: 1% level -4.356068 5% level -3.595026 10% level -3.233456

*MacKinnon (1996) one-sided p -values.

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Null Hypothesis: CONSUMP has a unit root Exogenous: None Lag Length: 1 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic 0.357003 0.7805 Test critical values: 1% level -2.656915 5% level -1.954414 10% level -1.609329

*MacKinnon (1996) one-sided p -values. Null Hypothesis: D(CONSUMP) has a unit root Exogenous: Constant Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 2.111378 0.2420 Test critical values: 1% level -3.711457 5% level -2.981038 10% level -2.629906

*MacKinnon (1996) one-sided p -values.

Null Hypothesis: D(CONSUMP) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 1.370652 0.8457 Test critical values: 1% level -4.356068 5% level -3.595026 10% level -3.233456

*MacKinnon (1996) one-sided p -values.

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Null Hypothesis: D(CONSUMP) has a unit root Exogenous: None Lag Length: 0 (Automatic - based on SIC, maxlag=6)

t -Statistic Prob.*

Augmented Dickey-Fuller test statistic - 2.268792 0.0251 Test critical values: 1% level -2.656915 5% level -1.954414 10% level -1.609329

*MacKinnon (1996) one-sided p -values. The ARDL long-run estimations ARDL Long Run Form and Bounds Test Dependent Variable: D(LGDP) Selected Model: ARDL(1, 3, 4) Case 3: Unrestricted Constant and No Trend Date: 09/11/20 Time: 17:14 Sample: 1991 2018 Included observations: 24

Conditional Error Correction Regression

Variable Coefficient Std. Error t -Statistic Prob.

C 3.645532 1.045515 3.486827 0.0040 LGDP(-1)* -0.423745 0.159298 -2.660080 0.0196 CONSUMP(-1) -0.020916 0.006433 -3.251420 0.0063 ENEXP(-1) 7.83E-06 2.61E-06 3.000356 0.0102 D(CONSUMP) -0.010671 0.012454 -0.856799 0.4071 D(CONSUMP(-1)) 0.012764 0.012453 1.024957 0.3241 D(CONSUMP(-2)) 0.013759 0.009661 1.424221 0.1779 D(ENEXP) 1.48E-06 1.27E-06 1.168587 0.2636 D(ENEXP(-1)) -3.21E-06 1.51E-06 -2.133647 0.0525 D(ENEXP(-2)) -9.30E-07 1.34E-06 -0.692273 0.5009 D(ENEXP(-3)) -2.10E-06 1.17E-06 -1.789823 0.0968

* p-value incompatible with t-Bounds distribution.

Levels Equation

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Case 3: Unrestricted Constant and No Trend

Variable Coefficient Std. Error t -Statistic Prob.

CONSUMP - 0.049359 0.017783 - 2.775722 0.0157 ENEXP 1.85E-05 3.76E-06 4.919205 0.0003

EC = LGDP - (-0.0494*CONSUMP + 0.0000*ENEXP )

F-Bounds Test Null Hypothesis: No levels relationship

Test Statistic Value Signif. I(0) I(1)

Asymptotic: n=1000 F-statistic 5.095714 10% 3.17 4.14 k 2 5% 3.79 4.85 2.5% 4.41 5.52 1% 5.15 6.36

Actual Sample Size 24 Finite Sample: n=35 10% 3.393 4.41 5% 4.183 5.333 1% 6.14 7.607

Finite Sample: n=30 10% 3.437 4.47 5% 4.267 5.473 1% 6.183 7.873

t-Bounds Test Null Hypothesis: No levels relationship

Test Statistic Value Signif. I(0) I(1) t -statistic - 2.660080 10% - 2.57 - 3.21 5% -2.86 -3.53 2.5% -3.13 -3.8 1% -3.43 -4.1

T he short-run estimations ARDL Error Correction Regression

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Dependent Variable: D(LGDP) Selected Model: ARDL(1, 3, 4) Case 3: Unrestricted Constant and No Trend Date: 09/11/20 Time: 17:14 Sample: 1991 2018 Included observations: 24

ECM Regression Case 3: Unrestricted Constant and No Trend

Variable Coefficient Std. Error t -Statistic Prob.

C 3.645532 0.864484 4.217002 0.0010 D(CONSUMP) -0.010671 0.009658 -1.104876 0.2892 D(CONSUMP(-1)) 0.012764 0.011095 1.150388 0.2707 D(CONSUMP(-2)) 0.013759 0.007132 1.929290 0.0758 D(ENEXP) 1.48E-06 1.08E-06 1.369229 0.1941 D(ENEXP(-1)) -3.21E-06 1.17E-06 -2.737483 0.0169 D(ENEXP(-2)) -9.30E-07 9.26E-07 -1.004678 0.3334 D(ENEXP(-3)) -2.10E-06 1.01E-06 -2.068944 0.0590 CointEq(-1)* -0.423745 0.100895 -4.199882 0.0010

R -squared 0.607086 Mean dependent var 0.011368 Adjusted R-squared 0.397532 S.D. dependent var 0.024476 S.E. of regression 0.018998 Akaike info criterion -4.808944 Sum squared resid 0.005414 Schwarz criterion -4.367174 Log likelihood 66.70733 Hannan-Quinn criter. -4.691743 F-statistic 2.897040 Durbin-Watson stat 2.189783 Prob(F-statistic) 0.036144

* p-value incompatible with t-Bounds distribution. Null Hypothesis: No levels F-Bounds Test relationship

Test Statistic Value Signif. I(0) I(1)

F -statistic 5.095714 10% 3.17 4.14 k 2 5% 3.79 4.85 2.5% 4.41 5.52 1% 5.15 6.36

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Null Hypothesis: No levels t-Bounds Test relationship

Test Statistic Value Signif. I(0) I(1) t -statistic - 4.199882 10% - 2.57 - 3.21 5% -2.86 -3.53 2.5% -3.13 -3.8 1% -3.43 -4.1

Diagnostics Breusch-Godfrey Serial Correlation LM Test:

F -statistic 0.191504 Prob. F(2,11) 0.8284 Obs*R-squared 0.807537 Prob. Chi-Square(2) 0.6678

Heteroskedasticity Test: Breusch-Pagan-Godfrey

F -statistic 0.500049 Prob. F(10,13) 0.8615 Obs*R-squared 6.667140 Prob. Chi-Square(10) 0.7565 Scaled explained SS 1.593870 Prob. Chi-Square(10) 0.9986

6 Series: Residuals Sample 1995 2018 5 Observations 24

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CUSUM 5% Significance

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CUSUM of Squares 5% Significance

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The Impact of Land Use Rights Policies on Agricultural Production in Vietnam

Phung Minh Duc1, Lam Van Son2, Nguyen Van Truong3 1Faculty of Mathematics Economics, National Economics University Email: [email protected] 2Faculty of Basic Sciences, Foreign Trade University 3Faculty of Basic Sciences, Hanoi University of Industry

Abstract This paper aims to assess the impact of land use rights policies on agricultural production of rural households in Vietnam. The method used in the study is quantitative, with data from the Vietnam Access to Resources Household Survey (VARHS) in the 2012-2016 period. Research results show that the issuance of land use rights certificates has a positive impact on agricultural labor productivity of households. In addition, the regulations force farmers to grow rice within the framework of the Rice Land Protection and Development Policy has a negative impact on agricultural labor productivity. This shows the importance of land policies as well as the land policy implementation process for agricultural production in Vietnam today. Keywords: Agriculture, labor productivity, land use rights, Vietnam.

1. Introduction Land use rights play an important role in agricultural production because they have some certain effects on farmers' decisions and therefore they also affect productivity. The policy of allocating agricultural land to households for management and use in the early 1990s of the last century created a great motivation for Vietnam's agricultural sector to grow rapidly. This has been concretized in the land laws issued in 1993 and 2003, which clearly states that farmers are assigned the rights to manage and use land for farming. In fact, land use rights policies are concretized by issuing agricultural land use rights certificates to rural households (Kieu Nguyet Kim & Nguyen Thi Minh, 2020) but there are certain limitations. For example, the government limits the maximum amount of land each household can use for farming and plans 3.8 million hectares (39% of agricultural land) to force farmers to grow rice. On the one hand, these policies aim to ensure equal access to land for farmers, but on the other hand to protect the Vietnamese economy from the shocks of food shortages. Agricultural land use rights policies have had a huge impact on agricultural production in Vietnam. The biggest achievement is making Vietnam the world's top rice exporter. However, the limitation of these policies is that it limits the initiative of farmers in agricultural production. For example, the designation of rice cultivation on the planned land reduces the activeness of farmers, so production resources can be misallocated and lead to low productivity (Le, 2018). In fact, planning a large amount of land to grow rice has resulted in an oversupply of rice, but a shortage of supply of some other valuable agricultural products and dependence on imports (Dan Viet, 2018). In addition, the delay in the land use rights certification process has reduced the incentive and opportunity to access financial resources to invest in land reclamation activities. This does not only negatively impact on farmer’s income but also negatively impact the sustainable development of the agricultural sector.

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The impact of land use policies on agricultural production is a topic that receives the attention of many researchers around the world as well as in Vietnam. Research results have shown the importance of securing land use rights for agricultural production. Regarding the Rice Land Protection and Development Policy (RLPDP), studies have shown that this policy has reduced the motivation of farmers to invest in production, thereby negatively affecting agricultural productivity. However, the majority of which focuses on estimating the extent of the losses of RLPDP on agricultural productivity and income (see Kurosaki, 2008; Le, 2018; for example). There are currently no quantitative studies of interest to the impact of land use rights policies in general and the impact of RLPDP on agricultural labor productivity in Vietnam. In addition, the issue of scale efficiency should also be considered in the impact assessment of the policy, because the efficiency of rice cultivation can also reduce the negative impact of RLPDP on agricultural production. Therefore, it is necessary to comprehensively evaluate the impact of these policies as a basis for the implementation of agricultural land management policies in Vietnam. This paper aims to assess the impact of land use policies and focus on agricultural labor productivity in Vietnam. Data used in the study are from the Vietnam Access to Resources Household Survey. The structure of the paper is as follows: the next part presents a research overview of the impact of land use rights policies on agricultural production; the third part presents a panel data model for assessing the impact of land use rights policies on agricultural labor productivity in Vietnam; the fourth part is the research results; the final part is conclusions and some recommendations. 2. Literature review Agricultural land use rights are a topic widely discussed by researchers in many countries around the world. The results show that these policies have a significant impact on agricultural production. For example, the policy of allocating land to households for management and use has resulted in land fragmentation and reduced agricultural productivity in several South Asian countries (Niroula & Thapa, 2005) which includes Vietnam (Tran & Vu, 2919), or the policy of limiting the amount of agricultural land held per household is also seen as a significant barrier to agricultural productivity growth in some developing countries (OECD, 2008),... Regarding the role of agricultural land use rights, Koirala et al (2016) showed that the certification of land use rights has a positive impact on the technical efficiency of rice farms in the Philippines. Likewise, Kieu Nguyet Kim & Nguyen Thi Minh (2020) also found evidence of a positive impact of land use rights certification on the total factor productivity of Vietnam’s agriculture sector. Therefore, ensuring the legality of land use rights is important for agricultural production, because farmers often have a greater incentive to invest in productive activities and thus achieving higher efficiency. Studies on land use rights in the past often pay attention to the legality of land ownership but do not pay enough attention to the role of land use rights. In some countries, such as China, Myanmar and Vietnam, the Government has imposed regulations that limit the rights to choose products for cultivation in pursuit of the development strategy of the agricultural sector, which states that to force farmers to grow rice. For example, to be allocated land, farmers in some parts of China had to produce to meet a certain quota of grain required by the authorities to ensure food supplies. Gao et al (2017) showed that cultivation on designated grain plots reduced investment in agriculture in China. Kurosaki (2008) also showed that the policy to protect the rice land has reduced the income from farming households by 8.3 percentage points in Myanmar. In Vietnam, some studies have shown that RLPDP has a negative impact on agricultural production. To et al (2006) shows that farmers will tend to switch from rice cultivation to higher economic value crops if they are not forced to grow rice. Similarly,

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Markussen et al (2011) also pointed out that the restriction of use rights according to the RLPDP regulations has reduced the motivation and the working time of the farmers in agricultural production activities. Regarding the economic loss of PLPDP policies to agriculture, research by Giesecke (2013) shows that removing RLPDP can increase income and reduce poverty in Vietnam, as shown by average consumption per household increased by 0.35% per year. Similarly, Le (2018) showed that, the total factor productivity of Vietnam's agriculture sector could increase by 10.6% if the RLPDP is removed. However, these studies have not provided quantitative evidence on the impact of RLPDP on agricultural labor productivity in Vietnam. In addition, the efficiency of scale has not been taken into consideration in the studies, as the specialization in rice production can also take advantage of certain advantages, for example in infrastructure, consumer market, ... Hence, research on the impact of land use rights policies on agricultural productivity with quantitative models can provide useful information. This paper examines the impact of land use rights policies on the agricultural labor productivity of households in Vietnam. In addition to the group of production inputs and demographics, land use rights policies are the macro factors that are expected to affect agricultural labor productivity. The analytical framework of the paper is presented in Figure 1. Figure 1: The analytical framework

Source: Author's research 3. Methodology 3.1. Data description The data used in this empirical model is compiled from the Vietnam Access to Resources Household Survey (VARHS) for the period 2012-2016. The VARHS is investigated every two years by a collaboration between the Central Institute for Economic Management (CIEM), the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), the Institute of Labor Science and Social Affairs (ILSSA) and the University of Copenhagen (Denmark). This dataset includes rural households in 12 provinces, including: Lao Cai, Dien Bien, Lai Chau, Phu Tho, Ha Noi, Nghe An, Quang Nam, Lam Dong, Dak Lak, Dak Nong, Khanh Hoa and Long An. The panel data is aggregated for 3 years: 2012, 2014 and 2016 with 2,094 households and 6,282 observations. 3.2. Model and variables The model used to assess the impact of land ownership and use rights on agricultural labor productivity in this study is presented below:

Ln_productivityit=0+1Red_book+2Rice_landit+3Plot_numberit+4Investit+5Hh_ageit

+6Ln_landit+7Ln_seedit+8Ln_fertiit+ci+uit (1)

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In which, 푖 is the household index, 푡 is the annual index; 푐푖 is an unobserved household characteristic that affects the dependent variable and does not change over time; 푢푖푡 is random error. The variables in the model are as follows: Ln_productivity: Natural logarithm of total agricultural added value/total agricultural labor (Unit: thousand VND/person). The main purpose of this study is to assess the impact of land policies on agriculture, so agricultural production is limited to cultivation activities. Red_book: The ratio of the total agricultural land area of households with land use rights certificates /total agricultural land (unit: %). The coefficient of red_book indicates the impact of the agricultural land use rights policies on the agricultural labor productivity of households. Rice_land: The ratio of the total agricultural land designated to grow rice at least one crop per year/total agricultural land of the household (unit: %). The coefficient of rice_land indicates the impact of the RLPDP on agricultural production of the household. Rice_land2 is the square variable of rice_land, which controls the marginal effect of the rice_land on the dependent variable. Plot_number: Number of agricultural land plots. The coefficient of plot_number indicates the impact of land fragmentation on the agricultural labor productivity of households. Because the more plots of land owned, the more difficult it is to produce, which can negatively impact labor productivity. Invest: Agricultural investment capital, calculated by the total value of investment in land improvement/total cultivation land (unit: thousand VND/m2). Investing in land reclamation increases the fertility of the soil, so the coefficient of invest is expected to have a positive sign in the estimation model. Hh_age: The age of the head of household, the multi-category dummy variable, takes on values from 1 to 3 corresponding to the age of the head of household from 18 to 45, 45 to 65 and over 65 years old. The variable hh_age controls the impact of demographic factors on agricultural production. In the estimation model, hh_age_1 is the base category. Finally, ln_land, ln_seed and ln_ferti are the natural logarithmic values of total arable land per worker (unit: m2 per worker); total cost for seeds/total cultivated land (unit: thousand VND/m2) and total cost of fertilizers/total cultivated land (unit: thousand VND/m2). The coefficients of these variables reflect the impact of the inputs including agricultural land, seed and fertilizer on agricultural labor productivity, respectively. Some descriptive statistics of the variables in the model are presented in Table 1. Table 1: Descriptive statistics of the variables Variables N Mean Std. Dev. Min Max Ln_productivity 6,282 6.282 1.052 3.739 13.051 Red_book 6,282 64.796 43.307 0 100 Rice_land 6,282 31.781 40.747 0 100 Plot_number 6,282 4.472 2.418 1 16 Invest 6,282 0.031 0.298 0 10.623 Hh_age 6,282 1.816 0.657 1 3 Ln_land 6,282 7.894 0.966 2.890 12.539 Ln_seed 6,282 -2.317 0.857 -9.138 4.113 Ln_ferti 6,282 -1.215 1.049 -6.466 2.810 Source: Research of authors

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In Table 1, the standard deviation of the variable red_book is quite large compared to its mean, indicating that the difference in agricultural land ownership rates among households is significant. Likewise, the standard deviation of the variable rice_land is greater than its mean, showing the difference in the size of agricultural land designated for rice cultivation among households. This also happens to most of the remaining independent variables, including plot_number, invest, ln_seed and ln_ferti, so one can expect these variables to be accountable for the change in value of the dependent variable. 4. Results and discussions Model (1) is estimated using econometric method with panel data. The Hausman test shows that the fixed effects model is more suitable than the random effects model. In addition, the Wald test shows that the model has heteroskedasticity problem (Appendix). Therefore, the results of model (1) according to fixed effects model after solving the heteroskedasticity problem are reported in Table 2. Table 2: Estimated results Variables Estimated coefficients Variables Estimated coefficients

Red_book 0.0133*** Hh_age_3 -3.646*** (0.002) (0.542) Rice_land -0.0627*** Ln_land 1.4317*** (0.008) (0.132) Rice_land2 0.0004*** Ln_seed 0.6061*** (0.0001) (0.088) Plot_number -0.8578*** Ln_ferti 0.6987*** (0.0476) (0.089) Invest 0.4785*** _cons 3.3587*** (0.200) (1.092) Hh_age_2 -2.1375*** (0.655) N 6,282 R_sq (within) 0.154 Note: The number in parentheses is the standard error; The symbols *, ** and *** denote the significance levels 10%, 5%, and 1%, respectively. Source: Research of authors The estimation results in Table 2 show that the estimated coefficients have signs consistent with expectations and are statistically significant, as follows: The coefficient of the variable red_book is positive and statistically significant, showing that ensuring land use rights has important implications for agricultural production of households. Accordingly, the greater the percentage of land certified as ownership, the more motivated households will be to invest in agricultural production, thereby achieving higher productivity.

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The coefficient of the variable rice_land is negative and statistically significant, showing that the higher the percentage of agricultural land designated to grow rice, the lower the labor productivity. This shows that policies aimed at limiting agricultural land use rights, typically the RLPDP, have a negative impact on agricultural production of households. In addition, the impact of rice_land on the dependent variable is in the shape U, expressed in the coefficient of rice_land2 is negative and statistically significant. This shows that the negative impact from policy on agricultural production gradually decreases with scale. The coefficient of the variable plot_number is negative and statistically significant, implying that growing on multiple plots reduces the labor productivity of farm households. This result shows that, although land fragmentation has been significantly improved, it is still a negative factor affecting agricultural labor productivity in Vietnam during this period. The coefficient of the variable invest is positive and statistically significant, showing that the investment in land reclamation has a positive impact on agricultural labor productivity. In the context of climate change, land reclamation is essential to increase the fertility and resilience of arable land for higher yields and quality of agricultural products. The coefficients of the variables hh_age_2 and hh_age_3 are negative and statistically significant, suggesting that younger household heads play a better role in organizing agricultural production than older heads. This is because young household heads can be more sensitive to science and technology, as well as to markets, so the productivity of the household is also higher. For the control variables, the coefficient of the variable ln_land is positive and statistically significant, showing that total arable land per capita has a positive impact on labor productivity. The coefficients of the variables ln_seed and ln_ferti are both positive and statistically significant, suggesting that the inputs, including seeds and fertilizers, play an important role in agricultural production. 5. Conclusions and recommendations The paper provides an empirical evidence on the impact of land use rights policies on agricultural production in Vietnam. The results show that the certification of agricultural land use rights is of great importance in promoting agricultural labor productivity of rural households in Vietnam. The results also show that the designation of rice cultivation within the framework of the Rice Land Protection and Development Policy has reduced the labor productivity of agricultural households. The research results have shown the need for policy adjustments as well as in the implementation of policies on agricultural land use rights in Vietnam today. On the one hand, it is necessary to continue to improve mechanisms and policies to speed up the process of granting agricultural land use rights certificates to farmers. On the other hand, it is necessary to take into account specific factors in planning the area of land for rice cultivation in the provinces. For example, it is possible to concentrate rice production in some advantageous provinces to ensure food demand, and at the same time encourage crop diversification in other regions to maximize the income of farmers. In addition, it is necessary to continue the policy to encourage farmers to consolidate their land to reduce the average number of land plots per household, thereby creating favorable conditions for farmers to use machines in production to achieve high labor productivity.

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References 1. Dan Viet (2018), ‘Thức ăn chăn nuôi: Thừa gạo, thiếu ngô đậu, phụ thuộc 60% nhập khẩu’, Agromonitor, [Online]. Available at: http://agromonitor.vn/thuc-an-chan-nuoi-- thua-gao--thieu-ngo-dau--phu-thuoc-60--nhap-khau_93821.html 2. Gao, L., Sun, D., & Huang, J. (2017), ‘Impact of Land Tenure Policy on Agricultural Investments in China: Evidence from a Panel Data Study’, China Economic Review, 45, 244-252. 3. Giesecke, J. A., Tran, N. H., Corong, E. L., & Jaffee, S. (2013), ‘Rice Land Designation Policy in Vietnam and the Implications of Policy Reform for Food Security and Economic Welfare’, The Journal of Development Studies, 49(9), 1202-1218. 4. Kieu Nguyet Kim & Nguyen Thi Minh (2020), ‘Empirical Research on the Role of Land Use Rights on the Total Factor Productivity in Agriculture in Vietnam’, Socio-economic and Environmental Issues in Development, 12th NEU-KKU International Conference, 7/2020. 5. Koirala, K. H., Mishra, A., & Mohanty, S. (2016), ‘Impact of Land Ownership on Productivity and Efficiency of Rice Farmers: The Case of the Philippines’, Land Use Policy, 50, 371-378. 6. Le, K. (2018), ‘Land Use Restrictions, Misallocation in Agriculture, and Aggregate Productivity in Vietnam’, MPRA Paper, 90797, 1-41. 7. Markussen, T., Tarp, F., & Broeck, K. V. (2011), ‘The Forgotten Property Rights: Evidence on Land Use Rights in Vietnam’, World Development, 39, 839–850. 8. Niroula, G.S., and G.B. Thapa (2005), ‘Impacts and Causes of Land Fragmentation, and Lessons learned from Land Consolidation in South Asia’, Land Use Policy, 22: 358-72. 9. OECD (2008), ‘Land Use Restrictions as Barriers to Entry’, OECD Journal: Competition Law and Policy. 10. To, D. T., Nguyen, P. L., & Marsh, S. (2006), ‘Agricultural Land Use Flexibility in Vietnam. In S. P. Marsh, T. G. MacAulay & P. V. Hung (Eds)’, Agricultural Development and Land Policy in Vietnam (pp. 41–68). Canberra and Sydney: Australian Centre for International Agricultural Research. 11. Tran, T. Q., & Vu, H. V. (2019), ‘Land Fragmentation and Household Income: First Evidence from Rural Vietnam’, Land Use Policy, 89, 104247. Appendix Some tests for the regression model Hausman test Wald test

Chi2 344.16 2.1e+05 Prob > chi2 (0.0000) (0.0000) Note: The number in parentheses is the probability value of the respective test statistics Source: Authors' calculations

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Research on Causes of Urban Sprawl and Solutions towards Sustainable Urban Development: Case Study in Central Highlands of Vietnam

Nguyen Ninh Hai, Nguyen Minh Ky, Le Minh Son, Nguyen Thi Lan Thuong, Nguyen Thi Thai Ha, Nguyen Tuan Anh* Research Group on Natural Resources and Environment, Nong Lam University of Ho Chi Minh City – Gia Lai Branch Email: [email protected], [email protected], *[email protected]

Abstract Urban expansion is a global phenomenon. The study explored causes of urban sprawl and solutions for promoting sustainable urban development in the Central Highlands of Vietnam, a case study in Pleiku city in the context of rapid urbanization. The semi-quantitative and qualitative research approaches were used to collect the data including the questionnaire, focus group discussion (FGD), descriptive statistics and stakeholder analysis (SA) method. The results illustrate that there were consistencies between the two groups (citizens and experts) about the causes of urban sprawl including housing investment, lack of affordable housing, lack of proper planning policies, weak land use planning, industrialization, increasing household’s income. On the contrary, there was an inconsistency in the related causes to citizens ignore of urban legislation; land hunger attitude; local cultural behavior. The study also proposed appropriate solutions for sustainable urban development in the context of climate change, towards "green cities for health". Keywords: Central Highlands, green cities for health, sustainable urban development, urban sprawl, stakeholder analysis.

1. Introduction Urban sprawl is one of the hot problems in the cities nowadays. The term “sprawl” was first used by Earle Draper of the Tennessee Valley Authority in the context of a national conference of planners in 193 (Maier et al., 2006). The term of “urban sprawl” was first used in the opening paragraph of an article by the sociologist William Whyte in Fortune magazine in 1958 (Wassmer, 2002a) with means more growth than the usual, its pressure on the borders, city will face new major problems (Habibi & Asadi, 2011). There are countless causes leading to phenomenon of urban sprawl. The previous studies have identified the driving forces in various ways depending on different case studies such as the decentralization process after economic reform (Bürgi et al., 2004; Chen & Ye, 2014). Economic growth creates more jobs, resulting in higher wages or income. This leads to demand for space expansion (Brueckner, 2000; McGuire & Sjoquist, 2003; Bhatta, 2010; Christiansen & Loftsgarden, 2011), as well as has direct effects on the industrialization process, which results in the increasing demand for residential land use due to more workers moving to the industrial zone to find affordable housing (Bhatta, 2010; Christiansen & Loftsgarden, 2011), and land prices, property taxes and general living costs

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where have a tendency to be higher than in peri-urban areas. Additionally, according to Duckett (2012) showed that, fragmentation in the urban was due to political, economic, and social problems (Duckett, 2012). Newman & Kenworthy (1998) considered to urban sprawl trends via the combined effect of changing lifestyles and the vast advance in personal mobility of private automobile (Newman & Kenworthy, 1989). In terms of social and environmental perspectives, structure of settlement for spacious living relying on access to car travel has caused the urban sprawl. Furthermore, the lack of comprehensive plans for land use and lack of government proper planning policies for areas outside the boundaries of cities have resulted in slum and squatter areas (Jaradat et al., 2009), regarding as lack of urban planning (Dieleman & Wegener, 2004). Besides, Wassmer (2002b) illustrated that the construction of highways invested by the state, and the relatively low private cost of using a car to work. Gregory (2006) demonstrated that the characteristics of the urban development process is often associated with an unlimited outward spread. Overall, the causes of urban sprawl can be summarized as presented causes including: population growth, independence of decision, economic growth, industrialization, speculation, expectations of land appreciation, land hunger attitude, legal disputes, physical geography, development and property tax, living and property cost, lack of affordable housing, demand of more living space, public regulation, transportation, road width, single-family home, nucleus family, credit and capital market, government developmental policies, lack of proper planning policies, failure to enforce planning policies, country-living desire, housing investment, and large lot size (Harvey & Clark, 1965; Squires, 2002; Burchfield, 2006; Bhatta, 2010). Vietnam is entering an important stage of urbanization, urban space and urban population have increased rapidly (Cira, 2011), beyond the control of the government, causing several consequences on land resources, imbalance of environmental ecosystems, disparity in architectural space, depletion of cultural and historical architectural, and reduction of urban land rapidly, which put great pressure on technical infrastructure. Since the 2000s, Vietnam's urban areas have developed in three main trends: (i)- The trend of scaling up by the merging of peri-urban areas, urbanized agricultural communes, almost these areas are shifting from agriculture to services and handicraft production, the agricultural production part is declining; (ii)- The trend of expanding urban space by investing in synchronous urban infrastructure, building new modern urban areas creates favorable conditions for land to expand urban development; and (iii)- The tendency to extent and encroach on the beaches to construct the new urban areas, both as a means of increasing the urban area, facilitating the development of new modern urban centers and an attractive new urban image. With its special geopolitical and geo-economic position, Pleiku city is an important gateway in the northern economic corridor of the Central Highland of Vietnam. Meanwhile, the process of economic development and urbanization has caused many problems in urban land management and urban identity. This poses an urgent problem to be addressed in the state management of urban land resources. Thus, the research on urban sprawl causes and proposals for solutions towards sustainable urban development are essential to provide appropriate solutions for effective management of urban space, meeting the needs of economic, social and environmental sectors.

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2. Research methodology 2.1. Study area Figure 1: Map of Vietnam and studied area

Source: Pleiku Department of Natural Resources and Environment, 2019 Pleiku city of Gia Lai province is regards as a representative of small-scale urban areas, is located in the North’s of Highland area of Vietnam (Fig. 1), between 13°50’00’’ to 14004’44’’ North, 107°49’30’’ to 108006’22’’ West. The study area covers 9 communes and 14 wards, which together, cover an area of approximately 260 km2. The current population figure is estimated to be 254.802 inhabitants, with an estimated annual growth rate of 1.4 percent (Pleiku Authorities, 2018). Pleiku city have been among the most economically dynamic cities in Gia Lai province since the start of the economic reform in 1986. Socioeconomic development and rapid urbanization have led to a significant transformation in the pattern of land cover (Hai et al., 2019). 2.2. Methodology 2.2.1. Secondary data collection methods The secondary data were collected from local authorities within Pleiku city and Gia Lai province, such as Land use status quo map (LUSM) from the Department of Natural Resource and Environment (DONRE). Similarly, demographic, population and density data were obtained from the People’s Community of Pleiku city (PCP) and Statistical Yearbook of 2005, 2010, 2015 and 2019. The documents showed the patterns of physical and socioeconomic change of the municipal such as sectors of economy growth, infrastructures, transportation, recreation, urban open, which collected from Department of Agricultural and Rural development (DARD), Department of Plan and Invest (DPI), Department of Transportation (DOT) and was aggregated by authors. 2.2.2. Primary data collection methods The qualitative and semi-quantitative research approach was applied to collect data (Lotto, 1986; Kline, 2011). Firstly, the study employed literarture review to list the causes of urban

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sprawl, and then FGD method are applied to two groups including expert group (n=5) to identify causes of urban sprawl in the context of case study. In the next step, the questionnaire (n=40) using Likert scaling (a scale of 1 to 5) are used, and then applied descriptive analysis to compare the results of two groups. The problems are determined to give priorities to propose some solutions based on FGD method. Finally, analyzing stakeholder involvement is essential to clarify the roles of stakeholders in implementing solutions in practice. Figure 2: Research framework

The number of participants was choose base on the study of Miles & Huberman (1994), around 40 respondents in homogeneous groups in five different sites (average 8 person per site) which will be sufficient to create a viable data set to collect the data about the characteristic, causes and consequences of urban sprawl on structure of Pleiku city. A brief profile of 40 volunteers participated in the interview is provided to keep track of each participant. 2.2.3. Stakeholder analysis A stakeholder is “any group or individual who can affect or is affected by the achievement of the organization’s objectives” (Freeman, 1984). Stakeholders can be defined as actors having an interest in the issue under consideration or being affected by the issue. In other word, stakeholders who have or could have an active or passive influence on the decision-making and implementation processes. They can include individuals, organizations, different individuals within an organization, and networks of individuals and/or organizations (Suchman, 1995). Stakeholder analysis is an approach or a tool for generating knowledge about actors – individuals and organizations – so as to understand their behavior, intentions, interrelations and interests; and for assessing the influence and resources they bring to bear on decision-making or implementation processes (Varvasovszky, 2000). Stakeholder analysis allows managers to identify the interests of different groups and find ways of harnessing the support of those in favour or the activity, while managing the risks posed by stakeholders who are against it (DFID, 2003). To clarifying the level of stakeholder involvement, stakeholder analysis method are applied (n=35). The question using Likert scaling (a scale of 5) are surveyed to 35 respondents (stakeholders) (Table 1). The arithmetic mean of stakeholders' score was used. The following equations show how influence and interest indices for each stakeholder are calculated:

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Where: Fi and Ii are the ith stakeholder's influence and interest indices respectively; Fij and Iij are influence and interest amount that jth stakeholder assigns to ith stakeholder in their interviews respectively; and, N is the total number of stakeholders. Table 1: The numbers of stakeholders participating in stakeholder analysis (n=35) Stakeholders N Stakeholders N People’s Committee of Gia Lai Province 3 Department of Resources and Environment 3 Department of Construction 4 Experts and academic professionals 4 People’s Committee of Pleiku City 3 Other state agencies 2 Urban Management Office 3 Community 3 People’s Committee of Wards 3 Property companies and real estate agents 2

Gia Lai Association of Architects 3 Media 2 After analyzing the mean score for influence and interest atributes, scores of both attributes, which are higher than 3, should be classified as definitive stakeholders, while those with one attribute of higher than 3 are expectant stakeholders, while both attributes with scores of lower 3, are latent stakeholders. Corresponding to these 3 levels are co-working, co-thinking, and co- knowing stakeholders (Stanghellini, 2010). 2.2.4. Statistical methods The study used most of common descriptive statistic parameters such as mean, frequency and standard deviation. Samples t-test was used to compare causes of urban sprawl between citizens and experts with signiﬁcance was p<0.05. The results are processed by software Excel 2013 and SPSS 13.0 with significance level of 5%. 3. Results and discussions 3.1. Causes of urban sprawl Tables 2-5 show the causes of urban sprawl in Pleiku city by a survey from the citizens and experts. The results illustrate that there were both homogeneity and differences between the two groups in some causes of urban expansion. At the beginning of housing investment was the weighty cause of the extension in Pleiku urban with the average values were 4.40 (SD=0.55) and 4.55 (SD=0.71) of experts and citizens groups, respectively (Table 2). The samples t-test indicated that there was a statistically signiﬁcant difference between the measured housing investment when compared with levels in the respondents (t=-2.849; p<0.05). The rate of economic growth in Pleiku city has remarkable over the last two decades, which leads to exponential increases in land and housing prices from after the comprehensive economic reforms in the second half of the 1980s under Doi Moi policy (Forbes, 1995). Moreover, cause of industrialization has mean =3.68 (SD=1.19) as for local inhabitants and mean=3.80 (SD=0.84) as for experts (t=0.784; p>0.05). From 2000 to 2019, Pleiku city increased 17.5 percentage of urbanization rate, from 62.25% to 79.75%, an average increase of 0.92 percentage/year. In which, in the 2000-2010 period, the urbanization rate increased by 8.5 percentage, an average increase of 0.85 percentage/year. In the period 2011 - 2019, the growth

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rate would reach 9.0 percentage, an average of 1.0 percentage of urbanization/year. Thus, in the 2011-2019 period, despite the economic difficulties, the urbanization rate is still higher than the 2000-2011 period. The current urbanization rate of the city is about 79.75 percent (Pleiku Authorities, 2018). Economic causes of urban sprawl illustrated that, increasing household’s income has minor effects on the trend of urban sprawl with the mean were 1.40 (SD=0.55) and 1.25 (SD=0.49) of two groups of experts and inhabitants respectively. Table 2: Economic causes of urban sprawl in Pleiku city Experts Citizens Samples t-test Economic causes of urban ID Std. Std. sprawl Mean Mean t Sig. Deviation Deviation N1 Industrialization 3.80 0.84 3.68 1.19 0.784 0.477 Increasing household’s N2 1.40 0.55 1.25 0.49 1.633 0.178 income N3 Demand of more living space 2.00 1.22 1.53 0.82 2.738 0.044 N4 Housing investment 4.40 0.55 4.55 0.71 -2.849 0.042 N5 Land hunger attitude 1.40 0.53 3.80 0.79 -4.408 0.004 N6 Development and property tax 3.00 1.41 2.00 0.01 2.838 0.041 N7 Living and property cost 2.60 1.14 1.60 0.50 2.784 0.043 Source: Data analysis of SPSS 13.0 Causes of urban sprawl due to demographic changes in Pleiku city are shown in Table 3. Local cultural behavior was the main dissimilar with mean value =3.73 (SD=1.78) of local citizens. However, the experts showed that this reason was less importance with the mean of 3.40 (SD=1.14) by samples t-test (t=-2.868; p<0.05). In addition, increasing in household’s formation showed an identical between two groups with mean =2.00 (SD=1.22) and 1.83 (SD=0.93) of experts and local citizens, respectively. However, there was no existence of the statistically significant difference (p>0.05) between the two groups. Although, Pleiku urban population in the period of 2000 - 2019 increased by 1.89% (in the period of 2000-2010 was 1.58% and 1.19% in the period of 2011-2019) (Gia Lai Province, 2017). However, household formation was increased by 1.54%. Table 3: Causes of urban sprawl due to demographic changes in Pleiku city Experts Citizens Samples t-test Causes relate to ID Std. Std. demographic changes Mean Mean t Sig. Deviation Deviation M1 Population growth 3.80 1.10 3.15 0.95 2.933 0.040 Increasing in household’s M2 2.00 1.22 1.83 0.93 1.310 0.361 formation M3 Local cultural behavior 3.40 1.14 3.73 1.18 -2.868 0.045 Source: Data analysis of SPSS 13.0 The samples t-test indicated that there were a statistically signiﬁcant difference between the measured causes of urban sprawl relate to planning, institution and policies in studied area (p<0.05). Table 4 showed the lack of proper planning policies with mean =2.60 (SD=1.82) of

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expert group and mean =2.15 (SD=0.86) of inhabitants group may also cause urban sprawl by lack of consistent planning policies (p<0.05). A city may be planned with exclusive zoning policies; this means separation of residential, commercial, industrial, office, institutional, or other land uses. In most cases, a mixed land-use policy is preferred to limit urban sprawl. Despite the central role of the state in planning and management development, the management capacity of public sectors is weak. A lack of sufficient trained personnel, reliable data for planning and economic and infrastructure resources has led to the absence of strategic policy and a crisis management approach to environmental infrastructure provision (Pelling, 2013). Besides, the lack of specialized planning, urban technical infrastructure system has not yet led to the construction in some areas still spontaneous; the land use planning and master planning has not been synchronized, the quality and feasibility are limited, short visions of plans affect the investment in infrastructure system, leading to the fragmented, inconsistent in the urban structure. The urban management capacity of officials directly involved in urban management is still insufficient, especially in units of communes and wards, resulting in the confusion in dealing with violations. Table 4: Causes of urban sprawl relate to planning, institution and policies in Pleiku city Experts Citizens Samples t-test Causes of planning, institution ID Std. Std. and policies Mean Mean t Sig. Deviation Deviation P1 Weak land use planning 3.00 0.71 2.95 1.11 1.012 0.376 P2 Lack of affordable housing 4.20 1.30 3.63 0.95 2.938 0.039 P3 Lack of proper planning policies 2.60 1.82 2.15 0.86 2.749 0.048 P4 Failure to enforce planning policies 3.00 1.00 3.20 0.91 -1.826 0.142 Lack of coordination and P5 2.00 1.22 2.28 0.82 -1.633 0.178 organization P6 Legal disputes 2.60 0.89 2.18 0.90 3.674 0.021 Citizens ignore of urban P7 4.60 0.55 1.80 0.69 5.099 0.002 legislation Source: Data analysis of SPSS 13.0 Conceding lack of affordable housing received a consistent comment from two groups. As for residents, the mean value was 3.63 (SD=0.95), the figure for experts has mean =4.20 (SD=1.30). The results showed the assessing trend of the experts were greater than residents (t=2.938; p<0.05) (Table 4). The property price in the areas in inner-city is too expensive compared with the income of most of the local citizens. On the other hand, people who desire larger living space gets attracted to this zone due to the reasonable price, which could lead to leapfrog development (Sinha, 2018). Therefore, vulnerable groups such as young households can not afford land and housing in inner-city. Although, Pleiku Government has efforts to supply the housing program, which has the ambition to provide 733 of new land houses for the urban poor, equivalent with 17.8 hectares, including infrastructure as roads, trees, etc. in Thang Loi ward (Gia Lai Government, 2010). However, this policy was stopped due to administrators taking advantage of the policy to "occupy" and then sell it to others at a higher price. And now, the government is continuing to perform again through the program of Housing Plan Development (Gia Lai Government, 2018). In the case of weak land use planning due to non-implementation of the master plan has the similar mean value in two groups of inhabitants and experts, the average values were 3.00

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(SD=0.71) and 2.95 (SD= 1.11), respectively. Despite the Land Law in 2003 and Urban Planning Law in 2015 are the main tools for planning, monitoring and implementation the contains of land use planning and master planning. However, the application process often changes to approve or modify the initial plans. They are often stuck on the political level. Many projects which were not proposed earlier in the land use plan and master plan have been implemented in the city due to the politicians’ decisions. Therefore, uncoordinated and unplanned developments have occurred in the city. The lack of planning tools, which combined low capacity in government and high political influence related to public land allocation, leads to ineffective oversight and law enforcement (Meyer, 2010). Table 5: Physical causes of urban sprawl in Pleiku city Experts Citizens Samples t-test Physical causes of urban ID Std. Std. sprawl Mean Mean t Sig. Deviation Deviation T1 Housing lifestyle preference 2.40 0.55 1.85 0.66 2.838 0.043 T2 Large lot size (more space per person) 3.20 0.84 2.75 1.24 3.674 0.021 T3 Noise 2.60 0.89 1.85 0.36 1.921 0.062 T4 Unsafe 3.00 1.00 2.33 0.86 3.734 0.011 T5 Road accessibilities (road width) 2.80 1.30 1.75 0.44 1.603 0.118 T6 Lack of public transport 3.00 1.41 2.23 0.73 3.204 0.023 T7 Private car ownership 2.00 1.22 1.98 0.86 0.535 0.621 T8 Unsuitable physical terrain 2.80 0.84 1.75 0.44 1.020 0.354 Source: Data analysis of SPSS 13.0 Physical causes of urban sprawl in the typical studied area belongs to the Central Highlands such as road accessibilities (T5), lack of public transport (T6), private car ownership (T7) are illustrated in Table 5. The samples t-test used to compare the physical causes of urban sprawl in Pleiku city are detailed shown in Table 5. Thus, despite remarkable records of the identities between two groups, the rapid development of Pleiku city witness dissimilar in several reasons. To begin with, the major difference is the citizens ignore of urban legislation causing. While the expert group reflects that this is the underlying cause leading to urban development. On the contrary, the public groups illustrate that it’s barely affected to urban expansion of Pleiku with the low average value. Additionally, the variance comes from the reason of land hunger attitude or land availability and low price. Although, the peoples consider that this is an important cause leading to urban expansion in case of the Central Highlands. In this case, people can buy more living space in the countryside than in the inner city by the low cost. The abundance provided by land fund of agriculture greatly increased demanding and encourage urban sprawl (Hai et al., 2019). Low farm prices provide an opportunity for farmers to sell land as it is much more profitable in the long-term period than continuing to cultivate (Bhatta, 2010). 3.2. Stakeholder analysis and sustainable urban development solutions 3.2.1. Stakeholder analysis Stakeholder analysis can positively or negatively influence decision-making processes or actions. Stakeholders refer to organizations and individuals that influence or are affected by certain decisions and actions (Freeman, 1984; Grimble & Wellard, 1997). Target groups can be

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divided into groups according to their similar views, functions, tasks and positions on effective land use management. In this study, the matrix considered the level of interest and influence (low - medium - high), which were classified into 4 groups (Fig. 3). Furthermore, Table 6 shows the involvement levels of stakeholders. Table 6: The involvement levels of stakeholders SH Influence Interest Classification Involvement 1 3.82 3.74 Definitive Co-working 2 3.31 4.05 Definitive Co-working 3 4.28 4.05 Definitive Co-thinking 4 4.48 4.51 Definitive Co-working 5 4.54 3.85 Definitive Co-working 6 1.77 4.20 Expectant Co-thinking 7 3.74 3.68 Definitive Co-working 8 2.11 3.57 Expectant Co-thinking 9 2.20 2.20 Latent Co-knowing 10 1.65 1.60 Latent Co-knowing 11 2.97 2.71 Latent Co-knowing 12 1.45 1.85 Latent Co-knowing Stakeholders who are active involvement are People’s committee (Province, City and Wards level), Department of Construction, Department of Natural and Resource, Urban Development Office, and key agencies. They are considered as co-working stakeholders who should involve actively in the policy-making process. Expectant stakeholders (co-thinking) are experts and institutions, association of architects, state agencies should be consulted in order to gain useful informations and opinions from various sources, which help improve the efficency management of urban expansion. The appropriate level of involvement for the latent stakeholders is co- knowing (media and communities). Figure 3: Interest – Influence Matrix

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From the interest-influence matrix, it can be seen that the medium level of influence group (codes of 1,2,7) are the stakeholders that need to be actively consulted. These groups propose policies related to urban development, so they need to participate cooperatively in proposing the solution of urban development policy towards sustainability. Meanwhile, the high level of influence and high interest group (codes of 3,4,5) plays a key role in implementing the remaining solutions. Besides, there is a need for cooperation and concern with the group of stakeholders (codes of 9,11). For the community, it is necessary to ensure providing related information, transmission policies in accordance with urban planning. At the same time, it is necessary to seriously implement the regulations of construction to ensure that people are not built informally or illegally, increasing the level of urban expansion. For the group of stakeholders (codes of 6, 8), relevant experts and associations need to be consulted policies and plans, which helps to increase effectiveness of solutions in the actual situation. 3.2.2. Proposing solutions of urban management towards sustainability Based on the causes of urban sprawl and stakeholder analysis showed that proposing sustainable urban development policies in control urban sprawl, which help form urban boundaries to control peri-urban areas and encourage construction in inner regions only. This solution groups are responsible for the groups of stakeholders (codes of 1,2,7 and codes of 4,5) with the medium-high level of Influence and Interest (Mean values >3) as shown Table 6. The encouraging policies improve the living conditions of low-income households and provide subsidies to build social and affordable housing. There are policies to support smart development strategies, which focus on urban compact pattern and in-fill development in inner-city. Figure 4: Influence of mixed use on the daily life

Adopting mixed use land pattern with high construction density to help increase the performance of land use and take an advantage of existing infrastructure (Koster & Rouwendal, 2012). This leads to rise social interaction and reduces walking distance, encourages walking and cycling. Besides, this pattern creates more opportunities to choose housing types, and create pedestrian neighborhoods and preserve the open space, agricultural land, natural environment in the city. Therefore, the cooperation of communities and stakeholders in urban development is better.

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Figure 5: Concept to preserve the traditional villages of the ethnic minorities

Source: People’s committee of Gia Lai Province, 2017 Preserving urban identity of minorities villages that have countless value, the proposed model is to preserve - embellish the traditional village in the urban space (Ha, 2016). Also, the transition space between traditional villages and other areas of the city is formed by a buffer zone of 500-1,000 m by green belt, garden houses with a height of no more than 12 m. Enhancing green infrastructure such as greenery, water surface, landscape space and environment of the Central Highlands needs for the city, but also create an enabling environment for convalescence, ecotourism, green urban areas, which helps improve the quality of life and health for people. At the same time, this create good livelihoods for people, benefit from natural exploitation as well as promote creativity. In addition, strengthening the management and control of land use is an issue that needs to be addressed, focusing on inspections, investment projects, strictly handling violations of housing and residential land investment, agricultural land, which causes sprawling development due to lack of technical infrastructure, social infrastructure and environmental landscape, lack of connection between the urban center and the areas of sprawling development. Meanwhile, communicating information to communities and estate agents should be performed regularly, especially informing related urban development and policies to communities (code of 9) and estate agents (code of 11) with the level of involvement of co-knowing. Thus, by that means the prospective solutions of sustainable urban development in the context of climate change and towards "green cities for health” in the future. 4. Conclusions The results show that Pleiku city has been developing sporadically. Therefore, the city needs urgent policies and complete urban development strategies to control unplanned urban development. The new tools are needed to track urban sprawl and measure landscape features and their distribution. The role of local government in urban residential areas is important in planning to stimulate future sustainable urban development. Based on the research results, the management of the urban expansion of Pleiku city is facing difficulties in policy implementation due to its weak capacity in policy administration and implementation. This study can be used as a recommendation for local authorities to help them sustainably manage urbanization by considering all aspects of interdisciplinary development including economic, social, environmental, and governance issues. In addition, there is a need to develop more strategic tools to control the drivers of urban growth and mitigate the undesirable effects as well as establish effective institutions supported by strict laws and regulations related to urban development management. Meanwhile, the redistribution of urban populations is fully considered to provide affordable housing and strengthen the sustainable development link

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between urban and rural areas. During modifying the master plan, experts or academic professional groups, developers and community groups should be consulted to update policies and strategies to meet the new requirements. Therefore, planning controls need to pay attention in development process, which is essential for managing problems related to urban development. The results from the study have practical implications for the direction of managing urban development, especially in urban sprawl in the Central Highlands of Vietnam. References 1. Bhatta, B. (2010). Analysis of Urban Growth and Sprawl from Remote Sensing Data. Springer-Verlag Berlin Heidelberg. 2. Bhatta, B. (2010). “Causes and Consequences of Urban Growth and Sprawl” in: Analysis of Urban Growth and Sprawl from Remote Sensing Data, Advances in Geographic Information Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-05299-6-2. 3. Brueckner, J. K. (2000). “Urban Sprawl: Diagnosis and Remedies”, vol. 23, no. 2, pp. 160–171, doi: 10.1177/016001700761012710. 4. Burchell, R. W., & Mukherji, S. (2003). “Conventional Development Versus Managed Growth: The Costs of Sprawl”, American Journal of Public Health, vol. 93, no. 9, pp. 1534–1540, doi: 10.2105/AJPH.93.9.1534. 5. Burchfield, M., Overman, H. G., Puga, D., & Turner, M. A. (2006). “Causes of Sprawl: A Portrait from Space”, The Quarterly Journal of Economics, vol. 121, no. 2, pp. 587– 633, doi: 10.1162/qjec.2006.121.2.587. 6. Bürgi, M., Hersperger, A. M., & Schneeberger, N. (2004). “Driving Forces of Landscape Change - Current and New Directions”, Landscape Ecology, vol. 19, no. 8, pp. 857–868. 7. Cira, D., (2011). "Vietnam Urbanization Review: Technical Assistance Report." World Bank, doi: 10.13140/2.1.5100.6249. 8. Chen, M., & Ye, C. (2014). “Differences in Pattern and Driving Forces between Urban and Rural Settlements in the Coastal Region of Ningbo, China”, Sustainability, Vol. 6, No. 4, pp. 1848–1867, doi: 10.3390/su6041848. 9. Christiansen, P., & Loftsgarden, T. (2011). Drivers Behind Urban Sprawl in Europe. Institute of Transport Economics, TØI report, 1136. 10. Creswell, J. W., & Creswell, J. D. (2017). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, 3rd ed., vol. 6. Sage Publicationss: Ann Arbor, MI, USA. 11. Department for International Development [DFID] (2003). Tools for Development: A Handbook for those Engaged Indevelopment Activity. London, United Kingdom. 12. Dieleman, F., & Wegener, M. (2004). “Compact City and Urban Sprawl,” Built Environment, vol. 30, no. 4, pp. 308–323. 13. Duckett, T. F. (2012). “The Politics Behind Metropolitan Fragmentation". Research Papers. Paper 322. 14. Ha N. H., (2016). “Preserving the Value of Traditional Villages in Urban Areas in the Central Highlands (from the Perspective of the Model of Plei O Cultural - Tourist Village, Pleiku City, Gia Lai)”, The Magazine of Architects, Vietnam Association of Architects. 15. Habibi, S., & Asadi, N. (2011). “Causes, Results and Methods of Controlling Urban Sprawl”, International Conference on Green Buildings and Sustainable Cities, vol. 21, pp. 133–141, doi: 10.1016/j.proeng.2011.11.1996. 16. Hai, N. N., Anh, N. T., Khuong, T. N. L., Dung, B. Q., & Ky, N. M. (2019). “Research on Urban Sprawl Trends and Landscape Change in Pleiku City, Gia Lai Province”, Vietnam

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35. People's Committee of Gia Lai Province, (2017). “Spatial Development Planning Towards 2020 of Pleiku City, Gia Lai Province”. Gia Lai. 36. Pleiku Authorities, (2018). “Year’s Book of Pleiku City,” in Year’s Book of Pleiku city in 2018. 37. Sinha, S. K., (2018). “Causes of Urban Sprawl: A Comparative Study of Developed and Developing World Cities”, International Journal of Multidisciplinary, Vol. 3, No. 9, pp. 5–9. 38. Squires, G. D. (2002). Urban Sprawl: Causes, Consequences, & Policy Responses. Rowman & Littlefield Publishers. 39. Stanghellini, P.S.L., (2010). Stakeholder Involvement in Water Management: The Role of the Stakeholder Analysis within Participatory Processes. Water Policy, Vol. 12, No. 5, pp. 675–694. 40. Suchman, M.C. (1995). "Managing Legitimacy: Strategic and Institutional Approaches", The Academy of Management Review, Vol. 20, No. 3, pp. 571-610. 41. Varvasovszky, Z. (2000). "A Stakeholder Analysis", Health Policy and Planning, Vol. 15, No. 3, pp. 338–345. 42. Wassmer, R. W. (2002a). “An Economic Perspective on Urban Sprawl”, California Senate Office of Research, California. 43. Wassmer, R. W. (2002b).“Fiscalisation of Land Use, Urban Growth Boundaries and Non- central Retail Sprawl in the Western United States”, Sage Publications, Ltd., Vol. 39, No. 8, pp. 1307–1327, doi: 10.1080/00420980220142655.

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Market-Based Instruments to Promote Sustainable Energy and Policy Implications for Vietnam

Vu Thi Hoai Thu National Economics University, Hanoi, Vietnam Email: [email protected]

Abstract The sustainable exploitation and use of energy resources play an important role to the development and prosperity of individuals and nations worldwide. Energy policies must balance competing goals such as sustainable economic growth, affordable energy supply, increased access to energy for the poor, enhanced food security, and improved environmental quality. Among energy policy instruments, market-based instruments play a crutial role to the development of sustainable energy sources. The energy sector has made a positive contribution to the socio-economic development in Vietnam over the past years, but the sector has been facing many challenges. Adoption of market-based instruments, including appropriate carbon tax on fossil fuels, gradual reduction and elimination of subsidies on fossil fuels, creation of carbon markets, establishment of renewable energy development funds will significantly contribute to economic growth, energy security, and environmental protection in Vietnam. Keywords: Energy policy, energy efficiency, market-based instrument, renewable energy, sustainable energy

1. Introduction The sustainable exploitation and use of energy resources play an important role to the development and prosperity of individuals and nations worldwide since people always need energy to survive and thrive. Traditional energy sources, such as fossil fuels and hydropower, have been exhausted and caused environmental pollution and greenhouse gas emissions. Therefore, finding alternative and sustainable energy sources plays a decisive role for all countries in the long term. Energy policy must balance competing goals, including sustainable economic growth, affordable energy supply, increased access to energy for the poor, enhanced food security, and improved environmental quality (IEA, 2019). In addition, in the context of climate change, countries need to make drastic changes in energy policies to ensure climate stability while maintaining economic growth. OECD/IEA/NEA/ITF (2015) argued that policies promoting sustainable energy should focus on both the supply (production) and the demand (consumption) sides, including scaling up investment and sustainable financial sources for energy sector, taxing fossil fuels and eliminating subsidies for fossil fuels, subsidizing for renewable energy, pricing energy in rational manner, innovating technology in energy sector, and changing energy consumption behavior towards sustainable manner. Among energy policy instruments, market-based instruments play a crutial role in the development of sustainable energy sources. Market-based instruments are regulations that encourage behavior through market signals rather than through dictated and state-controlled regulations (Robert Stavins, 1998). These instruments, based on market forces, often lead to

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changes in price or cost, which in turn alter the behaviors of individuals or organizations in order to achieve a certain policy goal. Market-based instruments are commonly also referred to as economic instruments. Market-based instruments include taxes, fees, subsidies, funds, etc... Market-based instruments are attractive alternatives to traditional command and control instruments which have been adopted in the energy sector in many countries around the world, particularly for renewable energy uptake and energy efficiency improvement. They provide greater flexibility than the command and control instruments in achieving energy cost efficiency, allowing firms to meet energy targets at lower costs. In addition, well-designed market-based instruments can also provide a greater incentive of innovation than command and control instruments. Over the past years, Vietnam has achieved remarkable socio-economic achievements. The energy sector has made a positive contribution to the country's socio-economic development. However, the sector has been facing many challenges, especially a heavy dependent on fossil fuels which leads to environmental pollution and greenhouse gas emissions. Stringent requirements for environmental pollution reduction and climate change mitigation from the energy sector in the coming time will be a major challenge for the sustainable development of the energy system in Vietnam. The Resolution No. 55-NQ/TW dated February 11, 2020 of the Vietnam’s Politburo on National Energy Development Strategy Orientation to 2030 with a vision to 2045 requires the development and implementation of market-based instruments to promote efficient and sustainable production and consumption of energy sources in Vietnam. This paper presents current status of the global energy production and consumption, the application of market-based instruments in energy sector in several selected countries, achievements and challenges in energy production and consumption in Vietnam, application of market-based instruments for sustainable energy development and policy implications for Vietnam. 2. Methodology 2.1. Data sources The study uses secondary data which were collected from a variety of sources, including reports from Vietnam’s Ministry of Industry and Trade (MOIT), Vietnam’s Ministry of Natural Resources and Environment (MONRE), Intergovernmental Panel on Climate Change (IPCC), books, journals, papers, and research reports of individuals and organizations related to the topic of research. Particularly, data on the global energy production and consumption were collected from IEA reports; data related to energy supply and consumption in Vietnam were gathered from MOIT reports; and data on GHG emissions from energy-related activities in Vietnam were collected from MONRE. 2.2. Data analysis Desk study is used to review the literature to systematize theoretical framework on market- based instruments for sustainable energy development. Statistical, descriptive, and comparative methods are used to analyze current status of the global energy production and consumption, the application of market-based instruments in energy sector in several selected countries, achievements and challenges in energy production and consumption in Vietnam, and application of market-based instruments for sustainable energy development in Vietnam.

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3. Results 3.1. Current status of the global energy production In the period of 1990-2017, the total global primary energy supply (including fossil fuels, renewable energy, and nuclear energy) increased over time (Table 1). Table 1: The total global primary energy supply (1990-2017) Unit: KTOE Energy sources 1990 1995 2000 2005 2010 2015 2017 1. Fossil fuels 7,116,811 7,388,531 8,051,630 9,353,653 10,521,778 11,131,667 11,346,232 (81.2%) (80.2%) (80.3%) (81.5%) (81.9%) (81.7%) (81.2%) Coal 2,220,466 2,207,265 2,316,665 2,994,438 3,653,106 3,852,538 3,789,934 (25.3%) (23.9%) (23.1%) (26.1%) (28.4%) (28.3%) (27.1%) Oil 3,232,737 3,373,475 3,662,674 3,998,702 4,135,577 4,329,220 4,449,499 (36.9%) (36.6%) (36.5%) (34.8%) (32.2%) (31.8%) (31.8%) Natural gas 1,663,608 1,807,791 2,072,291 2,360,513 2,733,095 2,949,909 3,106,799 (19.0%) (19.6%) (20.7%) (20.6%) (21.3%) (21.6%) (22.2%) 2. Renewable 1,123,029 1,220,307 1,296,733 1,403,895 1,608,258 1,825,773 1,936,923 energy (12.8%) (13.2%) (12.9%) (12.2%) (12.5%) (13.4%) (13.9%) Hydro 184,102 212,816 224,693 252,352 296,065 335,519 351,029 (2.1%) (2.3%) (2.2%) (2.2%) (2.3%) (2.5%) (2.5%) Wind, solar 36,560 42,380 60,054 70,017 110,075 204,190 256,830 (0.42%) (0.46%) (0.60%) (0.61%) (0.86%) (1.50%) (1.84%) Biofuels and 902,367 965,111 1,011,986 1,081,526 1,202,118 1,286,064 1,329,064 wastes (10.3%) (10.5%) (10.1%) (9.4%) (9.4%) (9.4%) (9.5%) 3. Nuclear 525,520 608,098 675,467 721,706 718,830 670,298 687,481 energy (6.0%) (6.6%) (6.7%) (6.3%) (5.6%) (4.9%) (4.9%) TOTAL 8,765,360 9,216,936 10,023,830 11,479,254 12,848,866 13,627,738 13,970,636 (100%) (100%) (100%) (100%) (100%) (100%) (100%) Source: IEA, 2019 Fossil fuels (coal, oil, natural gas) dominate the primary energy supply worldwide, accounting for 81% in 2017 (Table 1). Although countries have been increasingly promoting the exploitation of renewable energy sources, the proportion of fossil fuels in the energy mix has changed very little since 1990 (accounting for 80-81%). Fossil fuels provide electricity and heat for transportation and manufacturing processes to create products such as steel, cement, paper and plastic. In terms of fossil energy supply structure, crude oil accounted for the largest share (31.8%), followed by coal (27.1%) and natural gas (22.2%) in 2017 (Table 1). On a global scale, countries of rich potential for fossil fuels are the United States, India, China, Russia and the Middle East countries. Extracted from domestic and offshore wells, crude oil is refined into a wide variety of petroleum products, including gasoline, diesel, and refined oil to meet the major needs of transportation and heating. The top oil producing countries in the world are the United States, Saudi Arabia and Russia, all together accounting for nearly 40% of the world's oil supply. Renewable energy (hydro, wind, solar, biofuel and waste) accounted for 14% of the total global primary energy supply in 2017. Bioenergy is the largest source of renewable energy in the world (accounting for 9.5% of the total primary energy supply and 68% of the total global renewable energy). Wind and solar energy accounted for the smallest share (1.8% of total primary energy supply and 13% of total global renewable energy in 2017), but these energy sources are

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considered as the most potential sources among renewable energy sources in the future. Hydropower accounted for 2.5% of the total primary energy supply and 18% of the total global renewables in 2017, but this kind of energy is unlikely to develop further in the future as countries may soon reach technical constraints of hydropower development related to water and land resource constraints (IEA, 2019). Nuclear energy is used for electricity generation in 30 countries around the world. As of September 2013, there were 434 nuclear reactors operating worldwide. The United States, France, Japan, Russia and North Korea were the top 5 countries in nuclear capacity and accounted for 68% of the total global nuclear capacity in 2012 (IPCC, 2014). Nuclear power accounted for 17% of the world's electricity production in 1993 and fell to 11% in 2012 due to risks and barriers to the development of nuclear power in recent years (IPCC, 2014) and decreased further to 10.3% in 2017 (IEA, 2018). Nuclear energy accounted for 5% of the total global primary energy supply in 2017 (IEA, 2019). 3.2. Current status of the global energy consumption From 1990 to 2017, the total global final energy consumption (including fossil fuels, renewable energy, electricity, and heat) continued to increase over time (Table 2). Table 2: The total global final energy consumption (1990-2017) Unit: KTOE Energy sources 1990 1995 2000 2005 2010 2015 2017 1. Fossil fuels 4,299,596 4,469,136 4,779,797 5,461,903 5,995,331 6,340,487 6,507,122 (68.6%) (68.4%) (68.0%) (68.5%) (67.9%) (67.4%) (67.0%) Coal 752,517 661,591 542,025 825,827 1,049,908 1,102,194 1,020,037 (12.0%) (10.1%) (7.7%) (10.4%) (11.9%) (11.7%) (10.5%) Crude oil 10,913 11,136 13,733 12,457 21,926 18,652 14,565 (0.2%) (0.2%) (0.2%) (0.2%) (0.2%) (0.2%) (0.1%) Oil products 2,592,653 2,791,208 3,108,037 3,431,070 3,570,018 3,808,655 3,970,182 (41.4%) (42.7%) (44.2%) (43.0%) (40.4%) (40.5%) (40.9%) Natural gas 943,513 1,005,201 1,116,002 1,192,549 1,353,479 1,410,986 1,502,338 (15.1%) (15.4%) (15.9%) (15.0%) (15.3%) (15.0%) (15.5%) 2. Renewable 793,634 846,306 909,781 946,776 1,022,116 1,065,976 1,083,045 energy (12.7%) (12.9%) (12.9%) (11.9%) (11.6%) (11.3%) (11.1%) Wind, solar 3,382 5,123 8,582 11,953 21,348 41,332 45,285 (0.1%) (0.1%) (0.1%) (0.1%) (0.2%) (0.4%) (0.5%) Biofuels and 790,252 841,183 901,199 934,823 1,000,768 1,024,644 1,037,760 wastes (12.6%) (12.9%) (12.8%) (11.7%) (11.3%) (10.9%) (10.7%) 3. Electricity 834,428 935,244 1,092,056 1,303,908 1,542,246 1,737,061 1,837,640 (13.3%) (14.3%) (15.5%) (16.4%) (17.5%) (18.5%) (18.9%) 4. Heat 336,289 28,.651 248,305 259,451 273,990 270,608 289,488 (5.4%) (4.4%) (3.5%) (3.3%) (3.1%) (2.9%) (3.0%) TOTAL 6,263,947 6,537,337 7,029,939 7,972,038 8,833,683 9,414,132 9,717,295 (100%) (100%) (100%) (100%) (100%) (100%) (100%) Source: IEA, 2019

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Consumption of fossil fuels accounts for the largest share of energy sources which was stable for more than two decades (at around 67-68%) and accounted for 67% in 2017, of which consumption of oil refined products occupied the largest share (41%), followed by coal (10.5%) and natural gas (15.5%) while crude oil consumption accounted for a very small proportion (0.1%) in 2017. Fossil fuels are the backbone of the global economy, serving the energy consumption needs of majority of industries and sectors. Electricity is the second largest source of energy consumption which tends to increase over time, accounting for 13.3% of total final energy consumption in 1990 to 15.5% (in 2000), 17.5% (in 2010) and 18.9% (in 2017). Electricity becomes the best choice in many economies that are heavily dependent on industrial production, services and digital technologies. The share of renewable energy consumption in the total final energy consumption is relatively stable over time (at around 11-12%) and accounted for 11.1% in 2017. Heat consumption accounted for the smallest share (3%) of total final energy consumption in 2017 (Table 2). 3.3. Application of market-based instruments in energy sector in several selected countries The market-based instruments applied in energy sector include: (i) tax (carbon tax on fossil fuels and fit-in tariff for renewable energy), (ii) subsidies (elimination of subsidies for fossil fuels and implementation of subsidies for renewable energy); (iii) sustainable energy development funds and (iv) emissions trading system (also known as carbon market). Carbon tax (a tax on fossil fuels such as coal, oil, natural gas corresponding to the carbon content of the fuel) has been introduced in many countries. When the carbon tax is levied, the price of fossil fuels increases, leading to a reduction in fossil fuel demand (consumption) and conversion to fossil fuels with less carbon content (for example, from coal to natural gas). Carbon tax has been applied mainly in Nordic countries, Europe and other countries, for example, Finland (in 1990), Sweden (in 1991), Norway (in 1991), Denmark (in 1992), Switzerland (in 2008), Ireland (in 2010), Japan (in 2012), United Kingdom (in 2013), France (in 2014), Mexico (in 2014), Portugal (in 2015), South Africa (in 2016), and Argentina (in 2018) (World Bank, 2019). Subsidies for fossil fuels, mainly in the form of indirect subsidies to enterprises in energy sector via provision of preferential credit, support to access to land, subsidized raw materials, and control of energy prices, etc. … are quite common in many countries, especially in oil and coal producing countries. Fossil fuel subsidies lead to reductions in fossil fuel prices and energy prices (e.g. electricity prices), thereby facilitating widespread access to energy sources. However, low fossil fuel and energy prices often cause adverse effects on the economy, such as increase in greenhouse gas emissions, a burden of public budgets, inefficiency due to ineffectiveness of energy intensive enterprise, and distortion of investment decisions in clean energy. Gradual reduction and elimination of fossil fuel subsidies can significantly reduce greenhouse gas emissions, bring benefits to public finance and increase overall economic efficiency. OECD/IEA (2019) estimated that between 2014 and 2017, fossil fuel subsidies fell by around 50%, from $500 billion in 2014 to $300 billion in 41 countries in 2017. Some studies have shown that eliminating subsidies for fossil fuels can reduce global energy-related greenhouse gas emissions by 10-15% depending on the magnitude of subsidies (IPCC, 2014). Subsidies for renewable energy on a global scale, mainly through fiscal policy instruments such as subsidies, credit and tax incentives, are considered as the most important instruments to promote the implementation of new renewable energy projects and create explosive growth of renewable energy technologies such as solar photovoltaic, wind power, and biomass energy -

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all technologies that the initial investment costs are very large and will gradually decrease as economy of scale increases over time. The purpose of subsidies for renewable energy is to reduce costs of key renewable energy technologies and make them viable on the markets. Subsidies for renewable energy in the world reached at 150 billion USD in 2016, 80% of which is spent for the electricity, 18% for transport and 2% for heat (IEA, 2016). Establishment and operation of sustainable energy development funds, especially funds for the development of energy infrastructure such as electricity distribution systems, plays an important role. Global energy investment reached $1.85 trillion in 2018 (IEA, 2019). The emission trading system is formed on the basis of buying and selling greenhouse gas emission permits between enterprises. Since CO2 is a major greenhouse gas and emissions transactions are mainly CO2 emissions permits, the emission trading system is often called as the carbon market. Carbon credits have been transacted around the world with the ultimate goal of reducing greenhouse gas emissions and combating global climate change while ensuring growth and energy security. As of 2019, there were 28 regional, national and local emissions trading systems worldwide and the European Union Emissions Trading System (EU ETS) is the largest emission trading system in the world (World Bank, 2019). In short, the challenge of energy policy is to provide sustainable and reliable energy sources and services for economic growth and energy security without harming the environment and climate. Market-based instruments play a crucial role to achieve these goals. 3.4. Achievements and challenges in energy production and consumption in Vietnam Over the past 30 years, Vietnam has recorded remarkable development achievements. Political and economic reforms introduced in 1986 have fueled rapid economic growth and development and turned Vietnam from one of the poorest countries in the world into a low middle income country. According to the General Statistics Office, Vietnam achieved high economic growth levels over the past 5 years, for example, 6.68% (in 2015), 6.21% (in 2016), 6.81% (in 2017), 7.08% (in 2018) and 7.02% (in 2019). In the period of 2015-2019, the average economic growth rate in Vietnam reached 6.76% per year. The energy sector plays an important role in promoting economic growth in Vietnam. Economic growth requires the provision of reliable and affordable energy sources to all citizens and economic sectors. At the same time, the energy sector needs to attract capital to expand energy infrastructure, ensure the necessary energy supply in the long term and minimize negative impacts on the environment and control greenhouse gases causing climate change as well. Vietnam has domestic primary energy sources such as crude oil, coal, natural gas and hydro power and these energy sources play an important role in ensuring energy security for Vietnam's economic development over the past two decades. In addition to the significant contributions to the country's socio-economic development, the energy sector in Vietnam has been facing many challenges. Firstly, Vietnam has a rapid growth in energy demand, especially electricity demand. Vietnam's electricity system is mainly based on hydro power, accounting for 38% of total electricity capacity in 2017, followed by coal power (34%) and gas power (18%) (World Bank, 2018). Meanwhile, most of the hydro power potential for medium and large hydro power plants will be fully exploited and the current capacity needs to be increased further in the near future, at the same time, domestic coal is not enough to supply the coal power plants (MOIT & DEA, 2017).

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Secondly, Vietnam is heavily dependent on fossil fuels which accounted for 78.4% of the total primary energy supply in 2017. In terms of fossil fuel structure, coal plays an important role as the share of coal in the total primary energy supply increased from 15% (in 2000) to 35% (in 2015) and 37.8% (2017) (MOIT 2017; MOIT, 2019). The transition to fossil fuels energy is a major cause for the increase in greenhouse gas emissions in Vietnam. Over the past decade, Vietnam recorded the highest greenhouse gas emissions in the ASEAN region. Total greenhouse gas emissions per capita in Vietnam increased by 3 times over a 10-year period while carbon intensity per GDP increased by 48% (ERENA and DEA, 2019). According to MONRE (2017), Vietnam's total greenhouse gas emissions increased from 103.8 million tons of CO2e (in 1994) to 150.9 million tons of CO2e (in 2000), 246.8 million tons of CO2e (in 2010) and 259.0 million tons of CO2e (in 2013). Greenhouse gas emissions from the energy sector increased fastest among economic sectors (six-fold increase, from 25.6 million tons CO2e in 1994 to 151.4 million tons CO2e in 2013 due to the rapid increase in energy demand). Energy sector occupied the largest proportion of greenhouse gas emissions in Vietnam in 2013 (58.5%). Thirdly, Vietnam has become an energy importer since 2015. Energy exports in Vietnam decreased in recent years with the export volume of 12 thousand KTOE in 2015 (equivalent to 40% compared to 2009). Meanwhile, energy imports increased in 2015 after a few years of decline. The trend of net imports of coal, crude oil, and oil products has turned Vietnam into an energy import-dependent country with a net import rate of 5% in 2015. Coal imports in 2016 were of more than 10 million tons and are expected to increase in the coming years (MOIT & DEA, 2017). This energy import level is not high compared to other countries in the region and the rest of the world, but this is a remarkable sign in the formulation of energy policy in Vietnam in the coming time. Fourthly, energy sources in Vietnam have been used inefficiently. The national target program on efficient use of energy for the period of 2012-2015 set a target of saving 5-8% of the total energy consumption in the period 2012-2015 compared to the forecasted energy demand in the National Electricity Development Plan for the period of 2011-2020 with a vision to 2030 (equivalent to 11- 17 million TOE in the period 2012-2015). MOIT & DEA (2017) showed that the actual savings was 5.65%, equivalent to 10,610 KTOE. According to the Ministry of Industry and Trade, the energy intensity in Vietnam is higher than that in some countries such as Japan, Germany, Thailand, China and Korea. For example, in 2015, the energy intensity was 154 for Japan, 164 for Germany, 199 for Thailand, 231 for China, 238 for Korea and 264 for Vietnam. 4. Discussion and Policy Implications Significant efforts have been made by the government of Vietnam to develop and implement national laws, strategies and action plans to promote green growth and sustainable development, including Vietnam's Agenda 21 on Sustainable Development (2004), Environmental Tax Law (2010), Law on Environmental Protection (2014), National Green Growth Strategy (2012) and National Action Plan on Green Growth in the period 2014-2020, the National Action Plan for the implementation of the 2030 Sustainable Development Program. In energy sector, Decision No. 1885/QD-TTg dated December 27, 2007 on the National Energy Development Strategy to 2020 with a vision to 2050, Law on Efficient Use of Energy ( 2010), Decision No. 2068/QD- TTg dated November 25, 2015 approving Vietnam's Renewable Energy Development Strategy to 2030 with a vision to 2050, the National Target Program on Energy Saving and Efficiency (2006-2010, 2012-2015 and 2019-2030 periods) and the Resolution No. 55-NQ/TW dated 11/02/2020 on the Orientation of the National Energy Development Strategy of Vietnam to 2030, with a vision to 2045 serves as important foundations for Vietnam to shift towards

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efficient and sustainable use of energy sources. In addition, Vietnam has also issued laws and strategies for the electricity sector (for example, the 2004 Electricity Law and the 2012 revised Electricity Law, Decision No. 1264/QD -TTg dated October 1, 2019 on the National Electricity Development Plan for the period 2021-2030) and laws and strategies for oil and gas sector (for example, the Law on Petroleum 1993, 2000, 2008, 2013). Facing with the current challenges in energy production and consumption, the application of market-based instruments will help Vietnam develop sustainable energy sources in the future. Firstly, Vietnam is heavily dependent on fossil fuels while the government has strongly subsidized fossil fuels over years. These subsidies are considered to be ineffective and unsustainable. In order to ensure affordable access to energy for households and industries, Vietnam has pursued subsidies for fossil fuels, including input subsidies via price controls, tax incentives, investment loans, government investments in infrastructure for coal power plants, access to natural resources (for example, cheap coal and natural gas for coal power plants and access to water, land and forests for hydro power plants) or incentives for the enforcement of environmental protection regulations for energy producers and distributors, mainly state-owned enterprises. Energy price controls are imposed on electricity, coal, and refined oil products. The electricity price is regulated at a high level via price limit and price discrimination for different users even though the electricity market reform was introduced by the Electricity Law in 2004. Domestic coal prices are set lower than the world market prices to enable low cost for industrial facilities and power plants. The refined fuel market is also dominated by state owned enterprises and the government strictly controls the retail price of petroleum and established a petrol price stabilization fund as well. The International Energy Agency (IEA) estimated that subsidies for fossil fuels in Vietnam in the period of 2007-2010 ranged from $ 1.2 to $ 3.6 billion (1 to 4% of GDP). Particular subsidies were devoted to the electricity sector (UNDP, 2012). Subsidies for fossil fuels in Vietnam have resulted in low energy prices, leading to intensive and inefficient use of energy, especially in energy-intensive industries such as steel, paper, and cement industries. Secondly, renewable energy still accounts for a small proportion of the total primary energy supply in Vietnam, thus appropriate economic incentives need to be strengthened via subsidies, fit-in tariff and renewable energy development funds. Vietnam's National Energy Development Strategy to 2030 with a vision to 2045 sets the share of renewable energy sources in the total primary energy supply of 15-20% by 2030 and 25- 30% by 2045. Renewable energy sources with high potentials in the future in Vietnam are wind and solar energy sources. Although only a small share of solar and wind energy sources was in active before 2018, these energy sources increased sharply in 2019. In addition, the most notable change in the final energy consumption mix in Vietnam is the continued increase in the share of electricity consumption in the total energy consumption which reflects a shift from fossil fuel to electricity. For example, the share of electricity consumption occupied 22.2% in 2010 and increased to 29.6% in 2015 and 27.3% in 2017 (MOIT & DEA, 2017). Therefore, it is necessary for Vietnam to implement a suitable subsidy policy to develop renewable energy with particular focus on wind and solar power in the context of increased electricity consumption in Vietnam and decreased electricity produced from coal power plants due to the gradual depletion of domestic coal resources. Thirdly, Vietnam has not imposed tax on fossil fuels (coal, oil, natural gas). In fact, Vietnam imposed environmental tax on petroleum in the Environment Tax Law (2010), but the tax rate is very modest compared to other countries. Carbon tax has been widely recognized as a cost-effective policy tool for reducing greenhouse gas emissions under the "polluter pays

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principle". Therefore, Vietnam needs to develop and operate an appropriate carbon tax on fossil fuels in order to reduce the use of fossil fuels and encourage the use of fossil fuels more effectively. Fourthly, Vietnam has not yet established a carbon market. Vietnam's National Energy Development Strategy to 2030 with a vision to 2045 set a target of reducing greenhouse gas emissions from energy-related activities compared to the business as usual scenario by 15% in 2030 and by 20% in 2045. The formulation and operation of a carbon market will help address the climate and environmental challenges of the energy sector while maintaining economic growth and energy security in Vietnam. References 1. EREA & DEA (2019). Vietnam Energy Outlook Report 2019. Retrieved on April 5th, 2020 from . 2. IEA (2016). World Energy Outlook 2016. IEA, Paris. Retrieved on September 8th, 2017 from . 3. IEA (2019). Key World Energy Statistics 2019. IEA, Paris. Retrieved from https://www.iea.org/reports/key-world-energy-statistics-2019. 4. IPCC (2014). Climate Change 2014: Synthesis Report. Summary for Policymakers. An Assessment of the Intergovernmental Panel on Climate Change. 5. MOIT & DEA (2017). Vietnam Energy Outlook Report 2017. Retrieved on September 15th, 2019 from . 6. MONRE (2017). The Second Biennial Updated Report of Vietnam to the United Nations Framework Convention on Climate Change. Vietnam Publishing House of Natural Resources, Environment and Cartography. Hanoi. 7. OECD/IEA/NEA/ITF (2015). Aligning Policies for a Low-carbon Economy. OECD Publishing, Paris. Retrieved from http://dx.doi.org/10.1787/9789264233294-en. 8. OECD/IEA (2019). Update on Recent Progress in Reform of Inefficient Fossil-Fuel Subsidies that Encourage Wasteful Consumption. Retrieved on December 18th, 2019 from . 9. Robert Stavins (1998). Market-Based Environmental Policies. BCSIA Discussion Paper 98-02, ENRP Discussion Paper E-98-02, Kennedy School of Government, Harvard University, February 1998. 10. UNDP (2012). Fossil Fuel Fiscal Policies and Greenhouse Gas emissions in Vietnam: Subsidies and Taxes in Viet Nam’s Energy Sector, and Their Effects on Economic Development and Income Distribution in the context of Responding to Climate Change. Ha Noi, May 2012. 11. World Bank (2018). Vietnam: Mobilizing the maximum financial resources to develop the energy sector. The World Bank Report [Ngân hàng Thế giới (2018), Việt Nam: Huy động tối đa nguồn tài chính để phát triển ngành năng lượng. Báo cáo của Ngân hàng Thế giới]. 12. World Bank (2019). State and Trends of Carbon Pricing. Washington DC. June 2019. Retrieved on December 18th, 2019 from

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Factors Influencing the Consumer’s Intention to Buy Safe Vegetables

Luu Thi Phuong 퐀퐧퐡ퟏ, Dinh Ha 퐋퐢퐧퐡ퟐ, Vu Huyen 퐓퐫퐚퐧퐠ퟑ, Nguyen Dieu 퐇퐚퐧퐠ퟒ 1,2,3,4 Faculty of Environmental, Climate Change and Urban Studies National Economics University, Hanoi Email: [email protected]; [email protected]; [email protected]; [email protected].

Abstract Nowadays, the consumption of safe food, especially safe vegetables is becoming popular due to the advantages that it can bring, only the amount of chemicals and harmful organism residue in the cultivation process, below the permitted standard, ensuring safety for consumers and the environment. However, there is a paradox that although the number of residents, who aware of safe vegetables have increased, the amount of safe vegetables consumed is not much. By quantitative models, the study has shown the factors affecting the behavior of safe vegetables consumption of people living in Hanoi city. The result shows that attitudes towards safe vegetables, concerns about contaminated conventional vegetables and age have an impact on consumer behavior. Finally, the study proposes a number of recommendations for businesses producing and distributing safe vegetable products in Vietnam to be more effective. Keywords: Green consumption behavior, safe vegetables, Vietnam

1. Introduction According to the Global Cancer Organization (GLOBOCAN), an average of 300.000 people each year in Vietnam are diagnosed with cancer, mainly because people are consuming more and more contaminated food that are harmful to their health. With that demanding issue, the trend of consuming safe food, especially safe vegetables, is attracting more attention from society. In the past few years, the choice of organic foods with high nutritional value has been prioritized by many families. A large proportion of Vietnamese consumers have gradually changed their mindset and had a higher demand for the quality and safety of foods. The abovementioned context is an opportunity for food businesses to review and update their goals and development strategies. In recent years, safe vegetables are widely marketed across big cities in Vietnam. However, most of these stores are usually small and not highly organized. In the past, a lot of researchers have conducted with an aim to help businesses in Vietnam develop safe food supply chains. However, most of these studies were approached from a manufacturer's perspective (supply factor). Meanwhile, to expand the safe vegetable market, we need to focus on researching factors affecting consumer demand such as consumers' willingness to pay or their income. Only then can manufacturers and distributors have a correct and comprehensive view of the market to come up with production methods and business strategies that meet the needs of consumers. This research paper will explore the safe vegetable consumption behavior of people in Hanoi, Vietnam, thereby identifying the factors influencing the consumer’s intention to buy safe vegetables by predictive behavioral theory.

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1.1. Literature review 1.1.1. International research Anssi Tarkiainen and Sanna Sundqvist (2005) was conducted in Finland with the aim of testing the application of Planning Behavioral Theory in the context of buying safe food. The objective of the study was to examine the relationship between health concerns, attitudes towards safe food, subjective norms, perceptions of price and perceptions of product availability to buy safe food. This model with additional factors was confirmed to be better predictor of safe food purchase intention than the original planned behavior model. This result confirmed that the intention to buy safe food is predictable by consumers' attitudes towards safe food such as attitudes to the environment, perceptions of quality, subjective standards, and understanding about the product, etc… This is valuable research and is severally referenced in later studies on the intention to buy safe food. However, the study did not measure the impact of health concerns, price, and availability of products on the intention to buy safe food. Bo Won Suh, Anita Eves and Margaret Lumbers (2008) was conducted in Korea. The research used qualitative methods with opened questions to investigate the relationship between Korean consumers' perceptions of safe food and their intention to buy this food. The study was based on a planned behavioral theory model to establish an outline of the questions. The study concluded that consumers intend to buy safe food because they believe it enhances their health. However, consumers believe that it is not easy to buy safe food because its price is high, no available, and they do not fully trust the quality of the food. The study has very useful conclusions, but it only studied a handful of influencing variables. The study of Victoria Kulikovski and Manjola Agolli (2010) was performed by using a quantitative method with a sample of 190 Greek consumers, measuring the effect of several factors on the intention to buy safe food. These factors are health concerns, perceptions of quality, perceptions of value, concerns about food safety, ethical considerations, selling prices, concern about health and perception of quality, trust in brands. Research found that buying intent of Greeks is influenced by factors of quality, perception of value. Besides, concerns about health, ethics, price and brand trust could not affect this consumer audience. The restriction of the study is that the sample was surveyed in a Greek city of Thessaloniki and it was mainly people who regularly buy safe food (68%). Thus the effect of this factor is not clearly influenced by buying habits. 1.1.2. Research in Vietnam There are many researchers in Vietnam who have researched and analyzed the factors affecting consumers' behavior of buying safe vegetables. Research by Truong T. Thien and Matthew H. T. Yap (2010) aimed to point out the perceptions of consumers in Vietnam towards consuming safe food. The work used a deduction method from the cause through a research survey of 246 potential consumers in Vietnam. Research hypothesized that gender and age influenced the perception and potential of buying safe food in Vietnam and that potential consumers had a different perception and willingness to pay a higher price for real food safe products compared to non-potential consumers. Results of the study were as follows: age, health and safety perceptions influence potential consumers' potential to buy safe food in Vietnam. The paper by Nguyen Phong Tuan (2011) used quantitative method, to learn the relationship between attitude with the environment, perceptions of value, concern for health, understanding of safe food. All subjective standards on safe food of Vietnamese people (Specifically, the study

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was conducted in two big cities, Hanoi and Ho Chi Minh City). The author pointed out the differences of factors affecting consumption in the South and the North. The research asked 201 consumers in the North (Hanoi) and 201 consumers in the South (Ho Chi Minh City). There were 23 hypotheses divided into three groups. Research results have shown that the effects of factors such as environmental attitudes, perceptions of value, concerns about health, knowledge of safe food and subjective standards are clearly related to consumers' intention to buy safe food from both the South and the North. Based on Philip's theory of consumer behavior (2001; 1999) and results of previous studies, the research team has proposed factors that have profound effects in the Vietnamese context. These are (1) Safe vegetable prices, (2) Concerned about common vegetables, (3) Attitude towards safe vegetables, (4) Monthly income, (5) Needs of nutrients in vegetables, (6) Safe vegetable stores' location, (7) Gender, (8) Age, (9) Educational attainment, (10) Number of family members, (11) Number of children in the family. 1.2. Theories research Currently, there are many different opinions on consumer behavior. According to Leon et al. (2005), Consumers’ behavior is not only a dynamic interaction of factors affecting cognition, behavior, and environment but also changes people’s lives. Consumer behavior is the behavior that consumers exhibit in finding, buying, using, evaluating the products and services that they expect to satisfy their needs. In particular, the definition fits the buying behavior of modern consumers since now information sources are easy-to-find, consumers’ needs are easier to satisfy. The research team will use Philip Kotler’s consumer behavior model. The model offers 5 steps for consumers to make purchasing decisions: Firstly, needs recognition: The first step in the buying process is that consumers are aware of the problem and are able to identify their needs for a certain type of goods. Secondly, seeking information: When consumers can identify their purchasing needs, they will do research on different sources of information such as personal information, information from advertising, or from their personal experience. Third, evaluate options: When consumers have got the information about the products they want to buy, consumers will evaluate the options that they have. Fourthly, the buying decision-making process: After evaluating the options, they will make their final decision. Questions we need to answer are: “How much are they going to buy?” “Where will they buy it? Finally, purchase behavior: “Will their buying behavior be repeated in the future? 2. Methodology 2.1. Data collecting Secondary data collection: Secondary data are collected and aggregated from reports, scientific journals and previously published studies. Collection of primary data: Primary data is collected through direct survey. The survey questions included questions about personal information, the current situation of safe vegetable consumption, and factors influencing consumer’s intention to buy safe vegetables. After collecting, filtering and removing questionnaires that do not comply with the set standards, the study has synthesized 358 observations included in the study. 2.2. Data processing method and estimation models The study uses the binary logistic regression method to determine factors that influence the consumer’s intention to buy safe vegetables. The Binary Logistic regression model uses a binary dependent variable to estimate the probability that an event will occur with the independent variable information that we have.

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The Binary logistic model used in the research has the following form:

log (P (Y=1)/ P (Y=0)) = a + biXi In which: Y: The decision to buy safe vegetables of consumer, receives 2 values (0: do not buy; 1: buy) X1: Concerned about common vegetables X2: Attitude towards safe vegetables X3: Monthly income X4: Safe vegetable prices X5: Needs of nutrients in vegetables X6: Safe vegetable stores' location X7: Gender X8: Age X9: Educational attainment X10: Number of family members X11: Number of children in the family bi is the coefficient of the independent variables on the dependent variable Y 3. Results 3.1. Characteristic of the Survey’s Respondents According to the survey, in terms of gender, the number of women participating was 243, accounted for 67.9%, and the number of men was 115, made up 32.1%. Regarding the age structure of the sample, it can be seen that the number of people whose age from 18 to 27 was highest, 146 people, accounted for 40.8%. Number of people that from 28 to 35 years old was the second largest, including 60 people, occupied 16.8%. There are 82 people in the 36 to 45 age group (22.9%). The age group 45 and older with the number of people was 70, represented 19.6% of the sample. Figure 1: Respondents by Age Age

19.6 % 18 - 27 40.8 % 28 - 35 22.9% 36 -45 16.8% Over 45

Source: Survey conducted by the research team

In terms of education, there were 59 people with postgraduate degrees (16.5%). Number of people with the highest university degree was 216 people, occupied 60.3%. The number of people graduating from high school was 63 (17.6%). The number of people with education below high school was 20, equivalent to 5.6%. Statistic showed that education level is relatively high. The reason for this is due to the sample chosen in the inner city of Hanoi, where knowledge is concentrated.

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Look at the income, according to the survey, there were 27 people with monthly income less than 5 million VND, made up 7.5%. The group with income from 5 to 10 million VND per month accounted for 20.9%. The two dominant income groups from 10 to 15 million VND and from 15 to 20 million VND were 28.5% and 22.9% respectively. The rest were those with an income of over 20 million VND. Figure 2: Respondents by Monthly income Monthly income

7.5% 20.2% Under 5 20.9% 5 to 10 10 to 15 22.9% 15 to 20 28.5% Over 20

Source: Survey conducted by the research team In terms of household size, the sample was diverse. Household was the largest with 10 members, the smallest one had 1 member. In addition, the household with 4 members, dominated with 134 households, represented 37.4%. On the other hand, considering the number of children per family, most households had 1 to 2 young children. 3.2. Safe vegetable consumption behavior Households buy vegetables from a variety of sources, including traditional markets, supermarkets, and shops selling safe food. According to the survey results, the majority of people buy in traditional markets, including 212 people (59.2%). In addition, consumers often buy at supermarkets, occupied 30.7% (110 people). Finally, it was clean agricultural product shops with only 36 people, accounted for 10.1% of the sample. The reason for the case is that the surveyed people live near traditional markets, so they choose to buy vegetables here to save travel time as well as save the cost of buying vegetables. Figure 3: Source to buy vegetables from the household Source to buy vegetables

10.1 % Traditional market

30.7 % Supermarket 59.2 % Safe food shop

Source: Survey conducted by the research team

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In the next question, respondents were asked about their satisfaction level when consuming the vegetables they are using. The results obtained were: 55 people were very satisfied, accounted for 15.4%; 131 people feel satisfied, made up 36.6%; 149 people feel normal (41.6%); 16 people are less satisfied, (4.5%). Finally, the rest are 7 people who feel dissatisfied, represented 1.9% of the sample. There are many people who feel normal because they feel that the vegetables they are using are relatively safe, they also want to consume safe vegetables, but meet some difficulties in price or where to sell safe vegetables ... so they have to choose another product that is uncertain about the quality of the vegetable. Figure 4: Satisfaction level when consuming vegetables Satisfaction level 4.5 % 1.9 %

Totally satisfied 15.4 % Satisfied Normal 41.6 % 36.6. % Less satisfied Unsatisfied

Source: Survey conducted by the research team On the other hand, having researched on the consumer’s intention to buy safe vegetables, the survey pointed out 6 factors that has an impact on consumption behavior: (1) Concerned about common vegetables, (2) Attitude towards safe vegetables, (3) Monthly income, (4) Safe vegetable prices, (5) Needs of nutrients in vegetables, (6) Safe vegetable stores' location. Table 1: Consumer’s intention to buy safe vegetables Proportion of respondents (%) Factors Totally Totally Agree Neutral Disagree agree disagree 1 Concerned about common vegetables impacts on my 64 % 31 % 4.2 % 0.6 % 0.2% intention to buy safe vegetable 2 Attitude towards safe vegetables impacts on 36.3 % 48.9 % 12.3 % 1.1 % 1.4 % my intention to buy safe vegetable 3 Monthly income impacts on my 21.5 % 38.8 % 31.6 % 4.7 % 3.4 % intention to buy safe vegetable

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4 Safe vegetable prices impact on my 20.4 % 49.7 % 25.1 % 2.5 % 2.2 % intention to buy safe vegetable 5 Needs of nutrients in vegetables impacts on 41.1 % 45 % 11.7 % 1.4 % 0.8 % my intention to buy safe vegetable 6 Safe vegetable stores' location impacts on 24.9 % 50 % 21.2 % 2.8 % 1.1 % my intention to buy safe vegetable Source: Survey conducted by the research team 3.3. Factors affecting the consumption of safe vegetables The results of data processing are presented in the Table 2 below. Table 2: The results of regression effects of factors on the consumption of safe vegetables Variable Coefficient Prob C -4,229 0,019 Concerned about common vegetables 0,557 0,049 Attitude towards safe vegetables 0,954 0,000 Monthly income -0,214 0,398 Safe vegetable prices 0,279 0,327 Needs of nutrients in vegetables 0,378 0,135 Safe vegetable stores' location -0,264 0,303 Gender -0,055 0,895 Age -0,415 0,028 Educational attainment 0,268 0,317 Number of family members -0,179 0,306 Number of children in the family 0,384 0,158 Source: Survey conducted by the research team This regression model has coefficient defined (R square) by 0.239, which means the independent variables explain 23.9% of the change in the dependent variable. In addition, by the Wald test with significance level of 5%, the results show that there are variables Concerned about common vegetables, Attitude towards safe vegetables and Age significant in explaining the dependent variable are Intent to use safe vegetable products. For Age variable: This variable has a negative coefficient (-0.415), showing that age and choice to buy safe vegetables is inversely related. That is, the older people get, the more they do not intend to buy safe vegetables. The reason may be because they are used to buying vegetables in traditional markets, convenient to travel and affordable, difficult to change their habits or they have not updated information on unsafe vegetables in the market to switch to safe vegetable consumption.

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For the variable Attitude: This variable has a positive coefficient (0.954), showing that attitudes and decisions to choose safe vegetable consumption are positively related. That is, the more consumers believe in safe products, the more they will consume the item. This is consistent with the fact that in addition to factors affecting the demand for safe vegetables such as price, income, preferences, etc... the factor of trust also affects more or less people's decision-making. For the Anxiety variable: This variable has a positive coefficient (0.557), indicating that concern about ordinary vegetables contaminated with chemicals and the decision to choose safe vegetables are positively related. This means that the more consumers are worried about the chemical contamination of ordinary vegetables, the more they will switch to consuming safer vegetables. This makes sense because people are very concerned with their health, they never use food that is harmful to themselves. The research paper has a number of conclusions that are consistent with the results of previous studies. In terms of age, the group of people between the ages of 18 and 35 has a higher awareness of the importance of safe vegetables to health, while the rest of the age groups show that the level of concern is rather weak, not clearly. This is completely consistent with the previous research results of Truong T. Thien and Matthew H. T. Yap (2010) when saying that age and perception affect the potential for safe food consumption. On the other hand, in terms of the attitude of trusting safe vegetables, research results show that most people believe in the quality of safe vegetables. This result is similar to the research results of Anssi Tarkiainen and Sanna Sundqvist (2005) and the study of Victoria Kulikovski and Manjola Agolli (2010) when studying consumer attitudes towards safe food. However, in fact, when surveyed, there were many opinions that "safe vegetables are not necessarily safe", this shows that a certain part of consumers has not completely trusted in There are still concerns surrounding the production, supply and storage issues that lead to concerns for users. And this is also the problem that will be discussed further by the research paper to give appropriate solutions. 4. Discussions and Recommendations In recent years, the production of safe vegetables has been researched and developed by many localities. However, the production of safe vegetables has not met the increasing demand of society. Part of the reason is from safe vegetable production facilities, and another part comes from consumers' demand for safe vegetables. In particular, the demand for safe vegetables has been explored and analyzed by this study through the consumers' behavior and attitude of safe vegetable consumption and factors related to socio-economic conditions. The research shows that the demand for safe vegetables is influenced by factors related to socio- economic conditions, including age, education, number of children in the family and income. Consumer behavior and attitudes towards safe vegetables also affect the demand for safe vegetables. There are 3 factors that most clearly affect the demand for safe vegetables out of the total number of factors studied: Age, Concerned about chemical contamination in vegetables and Attitude towards safe vegetables. In particular, the Attitude towards safe vegetables variable, Concerned about chemical contamination in vegetables variable have a positive correlation with the decision of choosing to consume safe vegetables; while the Age variable has an opposite correlation with the consumer decisions to consume safe vegetables. These variables are also practical, so the proposals are based on the research results, from which will give appropriate solutions, recommendations with high practicality.

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However, this research has many limitations, especially due to the small sample size, which does not fully reflect the nature of the regional population. Increasing the sample size will lead to an increase in results accuracy and reduce the estimation errors so that the final results will be more practical. In addition, it is possible to add to the model other variables, from which there will be new related proposals for deeper research purposes of the topic. In Vietnam, the production and distribution of safe vegetables have not met the increasing demands of society. We can draw some proposed solutions for businesses based on the research result as follows. (1) Communication and advertising solutions: Develop advertising strategies by period and by customer segment. With the young customer segment, businesses should promote advertisement through two online channels, Facebook and Zalo, as these are the two social networks with the most users and the most interactive. With the segment of customers being the elderly, businesses should organize seminars, invite residents to come to the district cultural house to promote products. (2) Solution to improve consumer beliefs and attitudes: The research team suggests that supermarkets/ organic stores should equip hand-held food inspection equipment to help consumers check the quality of vegetables by themselves when buying at a supermarket or store. Safe vegetable producers should also open vegetable farm visits or growing vegetable programs, thereby building consumers' trust in safe vegetables. (3) Solutions to improve sales locations: Businesses should apply information technology through building an Online Sales App or Website, providing full information about indexes, quality and prices to help consumers’ purchasing process faster and more smoothly. In addition, businesses should proactively develop its own supply chain management system, which in turn will help streamline the organizational structure, and save sales costs as well as transport costs to distribution locations. References 1. Anssi, T., Sanna, S. (2005). Subjective Norms, Attitudes and Intention of Finish Consumers in Buying Organic Food, British food Journal. vol. 107, no. 11, pp. 808-822 2. Bo, W. S., Anita, E., Margaret, L. (2008). Consumer’s Perception and Purchasing Intention of Organic Food in South Korea. 3. Kotler, P. (2001). Marketing Essentials. Statistical Publishing House, 3rd Edition. 4. Le T.H, (2014). Research on Factors Influencing Urban Dwellers' Intentions to Buy Safe Food, Doctoral thesis, National Economics University. 5. Nguyen. P. T, (2011). A Comparative Study of the Intention to Buy Organic Food between Consumers in Northern and Sourthern of Vietnam, AU-GSB e-JOURNAL, Vol. 4, No. 2, pp. 102-113 6. Thien T. T., Matthew H. T. Y., Elizabeth M. I. (2012). Potential Vietnamese Consumer’s Perceptions of Organic Food, British food Journal, Vol. 114, No. 4, pp. 529-543. 7. Trung, D. (2008). Safe Vegetables - Urgent Problem, Journal of Information and Development, Vol. 4, pp. 32-34. 8. Victoria, K., Majola. A. (2010). Drivers for Organic Food Consumption in Greece, International Hellenic University.

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Factors Influencing Green Housing Purchase Intention in Hanoi City, Vietnam

1 2 3 4 Pham Kieu Loan , Nguyen Minh Phuc , Pham Mai Khanh , MSc. Nguyen Thanh Lan 1National Economics University, Email: [email protected] 2National Economics University, Email: [email protected] 3National Economics University, Email: [email protected] 4Lecturer, National Economics University, Email: [email protected]

Abstract The purpose of this empirical study is to operationalize the impact of some factors on green housing purchase intention (PI) for homebuyers in Hanoi, the capital of Vietnam. This research is based on the extended Theory of Planned Behavior (TPB) and analyzed by using structural equation modeling (SEM) from that data collection of 250 Hanoian homebuyers. The findings indicate that most of all hypotheses received support from the data, specifically, through the mutual relationship between seven factors including subjective norm, functional value, non-economic value, health awareness, environmental awareness, media influence, and purchase intention on green housing. Especially, the subjective norm has the most positive influence on purchase intention. In contrast to this, non-economic value and media influence have negative effects. Keywords: Influencing factors, green housing, purchase intention, theory of planned behavior (TPB), Vietnam.

1. Introduction Construction industry has a long history and regulated globally. However, the industry is undoubtedly one of the major drivers of global warming and the most significant pollutant ever affecting the environment. The construction industry generates half of the world's CO2 emissions and consumes nearly 50% of global resources, 36% of the total electricity used in Vietnam is consumed in this section (UN Environment Programme, 2017). Because the current electricity price for electricity production is low and subsidized due to the Government’s neglect of environmental issues; it has made Vietnam more attractive to high-energy industries such as steel and cement. This impacts economic growth, industrialization, energy intensity, and increasing population release of pollution and increase CO2 emissions. Vietnam Construction Industry is forecast to grow 6.9% per year through to 2028, slightly down from the 10-year average (7.1% per year) but still, doubled the world average (N. D. Nguyen, 2019). Up to now, the construction technology of enterprises available on the market quite similar, and the competition pressure is increasingly fierce globally. Also, the construction industry in Vietnam is at the end of the Growth phase, preparing to enter the Restructuring phase. Therefore, it is foreseeable that the developers must adopt green housing (GH) strategies to renew their image to be more suitable with the current sustainable movement as well as strengthen their competitive advances.

Green housing can contribute to a reduced CO2 emission and energy dependence on fossil fuels, which is also an inevitable choice to meet the need for environmental protection and sustainable development. However, by the end of 2019, the total number of GH in Vietnam humbly ceased

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at 70, only 1/3 of Thailand and 1/15 of Singapore. GH market in Vietnam is still in the initial stage, and the Vietnamese government’s role is insignificant in sustainable development in the construction industry (Dodge Data & Analytics, 2018). Particularly in Hanoi, the number of commercial green residence projects is relatively small in the market, mostly in the middle and high-ends sector and “green” is only used as a décor feature. Most of Hanoi green projects placed on the outskirts of the city, consider that in the core area it’s already too densely built. It is strongly advised that GH strategies would be implemented in national scale, with a more significant regulation role from the government to address the environmental issues. Earlier studies affirmed that homebuyers or tenants were identified to have the utmost influence in GH promotion. Sustainable goals achieved in the construction industry will largely depend on substantial consumer demands. Other research also determined the vital role of consumers in large-scale GH promotion. For instance, Darko, Zhang, and Chan (2017) reviewed the research on GH drivers and reported that customers' demand and intention eventually determined the extent of GH development. In addition, Sang et al. (2019) reported that the biggest problem in promoting GH that required resolution was the low level of market demand for GH. Therefore, research on homebuyers’ purchasing intention is essential to promote GH at a significant scale. Driven by sustainable development worldwide, consumers have gradually changed their views and interests in their products. Specifically, green consumerism is complex and influenced by diverse factors, especially for green products with large expenditures, such as housing and cars. Thus far, which determinants significantly affect homebuyers’ purchasing intention and the relationship between these determinants and purchasing intention of GH remain unclear. To our knowledge, limited research was conducted in GH in Vietnam, let along to approach this issue with a psychological aspect. Thus, Nguyen T.L. et al. (2020) had been recognized as one of the first to employ the social- psychological model to investigate homebuyers’ purchasing intention of GH in the Hanoi context. This research is based on the theory of extended planned behavior (TPB) - the popular theoretical model to explain determinants and antecedents of purchasing intention. Its purposes were to examine what exact factors and characteristics are perceived as green resident by homebuyers in Hanoi; and which factors effectively influence their intention to purchase. The mentioned research found out that to the homebuyers, external factors are more direct and significant in signalizing a green housing. For example, natural light and ventilation struck them first, and then they tend to look for evidence in household waste treatment technology and energy consumption saving methods. Otherwise, sustainable materials, building density, and GH certification ranked lower in the homebuyers’ assessment. Furthermore, the data collected indicated four guaranteed factors to influence GH purchase behaviour including subjective norm, health and environmental awareness, media influence, and perceived value. In pointing out these proven factors, the results help developers and governments understand the urge to achieve sustainability by promoting large-scale GH, which will prominently reduce the adverse global impact on climate change, built environment, and human health. Based of these results, we want to bridge hereby research further by fathoming the inter-relation between the explored factors. Thus, the findings can offer valuable references and experiences for policymakers and other organizations in other developing countries, stipulating policymakers' suitable policy strategies and turning it to crucial guiding the GH implementation.

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2. Literature review and hypothesis development 2.1. The extended TPB model Theory of Planned Behavior (TPB) is considered as one of the applicable theories to determine the behavioral intention (Ajzen & Madden, 1986; Han & Kim, 2010). This theory explains that personal factors, social and behavioral information are capable of influencing beliefs, normative beliefs, and the control belief that behavior can be performed (Ajzen, 1991). The extending of TPB by including critical variables in particular contexts could increase the predictive ability of TPB (Ajzen, 1991; Conner & Abraham, 2001). Additionally, Ajzen (1991) also suggested the application of TPB on different cultures from which the theory is formed, in this study, namely the Vietnamese culture. Thus, the need of consumer behavior theories empirical validation is important in developing countries. 2.2. Hypothesis development In our previous research on the same topic, we proposed our theory to investigate which factors affect the GH purchase behavior of Hanoian. According to the collected data, these following factors have a positive effect on GH purchase: Subjective norms – the opinion of surroundings social network; Perceived value of green housing – including economic value and non- economic value; Health and environmental awareness; Mass media. Subjective norms play a vital role in Hanoi residents and cement the base of this research. Moreover, the perceived stress cast upon an individual by the surrounding network also has a regulated role with the others. In view of the previous findings and the discovered elements, we want to bridge this research further by establishing the significance of Subjective norm in predicting homebuyers’ intention among Hanoi’s residents as well as to understand the inner-relationship between the proven factors. According to the above discussion, we submit the following hypotheses. Figure 1: The research model

Hypothesis 1 (H1): Health awareness has a positive effect on subjective norm. Hypothesis 2 (H2): Functional value has a positive effect on subjective norm. Hypothesis 3 (H3): Non-economic value has a positive effect on subjective norm. Hypothesis 4 (H4): Environmental awareness has a positive effect on subjective norm. Hypothesis 5 (H5): Media influence has a positive effect on subjective norm. Hypothesis 6 (H6): Subjective norm has a positive effect on purchase intention.

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Hypothesis 7 (H7): Media influence has a positive effect on purchase intention. Hypothesis 8 (H8): Health awareness has a positive effect on purchase intention. 3. Methodology 3.1. Design of the Questionnaire A questionnaire survey was conducted for data collection to accomplish the objective of this study. While translated into the survey questionnaire, these variables utilized by a related set of measurable items collected by respondents. The items employed to measure the seven constructs are rated using a five-point Likert’s scale (strongly disagree = 1; disagree = 2; neutral = 3; agree = 4; strongly agree = 5). Table 1: Measurement items of the variables Constructs and Measuring Items Sources Subjective Norm Maichum, Parichatnon, and SN1: My family thinks I should purchase green housing. Peng (2016); Liobikienė, SN2: My friends think I should purchase green housing. Mandravickaitė, and SN3: People with whom I have a common interest think I Bernatonienė (2016) should purchase green housing. Health Awareness HA1: I carefully choose furniture to ensure the good health. Zhang, Chen, Wu, Zhang, HA2: I think I am a consumer with health conscious. and Song (2018); Jaiswal HA3: I often think about issues related to health. and Kant (2018) HA4: I think health is one of my top priorities. Environment Awareness EA1: I think it’s important to control environmental pollution. EA2: I am very concerned about the environment. EA3: I would be willing to reduce my consumption to help Newton, Tsarenko, Ferraro, protect the environment. and Sands (2015);W.-L. EA4: I think individuals have the responsibility to protect the Tan and Goh (2018) environment. EA5: I think the government needs to focus more on environmental protection. Media Influence MI1: Attractive environmental advertisements will encourage me to adopt green housing. Durdyev and Ihtiyar MI2: The environment consciousness has been created by the (2019); Lim, Radzol, role of media lately. Cheah, and Wong (2017); MI3: Social media is a good source of propagating S.-C. Chen and Lin (2019) environment issues. MI4: News and journals increase my interest in green housing. Functional Value Siahaan, Khaira, and FV1: Green housing’s environment functions will provide Sibarani (2019); Erdil outstanding value for me. (2018); Yue, Sheng, She, FV2: Green housing meet Green Building Index (GBI) and Xu (2020) standards are favorable.

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Constructs and Measuring Items Sources FV3: Green housings are beneficial because these homes may enhance our quality of life without sacrificing the occupants’ internal comfort. FV4: Green housings are valuable because these homes are developed and constructed using an environmentally friendly process. FV5: I think I will purchase a green residential building because it is environmental-friendly. FV6: I think I will purchase a green residential building because it has more environmental benefits than other general residential buildings. Non-economic Value NV1: Purchasing green housing created a green lifestyle for me. NV2: Buying the green housing instead of other housings Y. S. Chen and Chang would feel like making a good personal contribution to (2012); Phungwong (2015); something better. S.-C. Chen and Lin (2019) NV3: Purchase green housing will improve the way I am perceived. NV4: Purchase green housing will make a positive impression on other people. Purchase Intention PI1: If I had to purchase a residential housing, I would intend to purchase a green housing instead of a general residential housing. Schniederjans and Starkey PI2: If I had to purchase a residential housing, I would purchase a (2014); W.-L. Tan and Goh green housing instead of a general residential housing. (2018)); Sang et al. (2019); PI3: For myself, I intend to purchase a green housing instead Han, Hsu, and Lee (2009); of a general residential housing. W.-L. Tan and Goh (2018) PI4: For myself, I plan to purchase a green housing instead of a general residential housing Source: Synthesis by the authors 3.2. Data Collection A survey was conducted in Hanoi to potential homebuyers who are interested in new residential housing projects. After refining our questionnaires, we spread it online, mostly in resident community group, real estate broker company, Hanoi real estate’s club. In the huge effort to create reliable and valid responses from respondents who do not have adequate understanding about green housing or sustainable home. Of 306 survey forms received in different Hanoi areas and various socio-group, only 250 were used for the final analysis. 3.3. Data Analysis A series of statistical techniques were performed to measure home-buyers’ intention to purchase green housing. Structural equation modeling (SEM) analysis using AMOS 22 developed by IBM corporation was employed to estimate test the reliability and validity of the scale, while the structure model is a tool to analyze the hypotheses. Besides, in terms of the measurement quality, confirmatory factor analysis (CFA) was conducted to evaluate the reliability and validity of the proposed theoretical model. Especially, the overall fit of a hypothesized model can be tested by using the maximum likelihood Chi-square statistic provided in the Amos output

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and their fit indices such as the ratio of Chi-square to degrees of freedom, goodness of-fit index (GFI), the root mean square error of approximation (RMSEA), comparative fit index (CFI), normed fit index (NFI). After that, a hypothetical construct accounts for the inter-correlations of the observed variables that define that construct (Bollen & Lennox, 1991). 4. Results 4.1. Descriptive Statistics Table 2: Demographic characteristics of the respondents (N=250) Gender Variable Male Female Frequency Percentage (%) Frequency Percentage (%) 18-25 21 19 20 14 26-35 52 47 62 44 Age 36-45 25 23 33 24 46-55 10 9 20 14 > 55 2 2 5 4 High school and 5 5 1 1 below Junior College 12 11 19 14 Education Bachelor’s degree 62 56 101 72 Master’s degree or 31 28 19 14 higher level <10 7 6 8 6 Income 10- 20 34 31 59 42 (million 20- 30 36 33 43 31 VND/ 30- 40 22 20 16 11 month) 40- 50 5 5 9 6 >50 6 5 5 4 Mariage Married 68 62 94 67 status Single 42 38 46 33 Source: Author’s survey results The general socio-demographic characteristic of the respondents are as follows. The total number of respondents comprises 140 females (56%) and 110 males (44%). The highest percentage of the respondents fell into the 26-35-year-old age group (46%), while the opposite was true for the higher 55-year-old age group (3%). Over a half of the respondents earned a bachelor’s degree (65%), while 20% received master’s degree and higher level. In terms of individual monthly income, respondents earning between 10 and 30 million VND accounted for 37%, those earning 40-50 million VND accounted for 6% and 4% averaged higher than 50 million VND. Furthermore, most of the total respondents were married (65%), almost twice as much as the number of single respondents.

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4.2. Measurement Model: Reliability and Validity Cronbach’s alpha value for each measure ensure the reliability of all variables. The results shows that all of them are greater than 0.7. The KMO is 0.845, higher than 0.5, which proves that the data used for factor analysis is completely appropriate. The Significant level is 0.000 < 0.05, ie the variables are correlated with each other and satisfy the conditions of factor analysis. Besides, factor analysis showed that 25 variables were initially grouped into seven groups. The total value of the extracted variance of the seventh factor is 61.975% > 50% and the value of the eigenvalues convergence coefficient of this factor is > 1, therefore these new factor group can be used to represent the variability of the survey data. Overall, the theoretical model indicates adequate validity and reliability, and the factors ensure convergent validity and discriminant validity in CFA analysis Table 3: The results of EFA

Component 1 2 3 4 5 6 7 HA3 .846 HA2 .774 HA4 .710 HA1 .605 PI4 .753 PI3 .730 PI2 .625 FV3 .804 FV4 .723 FV6 .664 FV5 .592 NV3 .871 NV4 .848 NV1 .518 EA4 .771 EA3 .736 EA2 .619 EA5 .521 MI2 .842 MI3 .719 MI1 .616 MI4 .583 SN1 .837 SN2 .735 SN3 .662 Eigenvalue 6.468 2.341 1.596 1.512 1.450 1.105 1.023 Cumulative (%) 25.871 35.234 41.619 47.667 53.466 57.884 61.975 Sig. = 0.000; KMO = 0.845 Source: Authors’ results

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4.3. Structural Model: Goodness of Fit Statistics, Modeling Comparison, and Hypothesis Testing Figure 2: The results of SEM model

Source: Authors’ results Table 4: Measurement model fit indices. Fit Indices Criteria Indicators Chi-square 453.904 Chi-square/ [degree of <5 acceptable; <3 good 1.787 freedom] Goodness of fit index (GFI) >0.8 acceptable; >0.9 good 0.870 Tucker–Lewis index (TLI) >0.9 0.870 Comparative fit index (CFI) >0.9 0.890 Root mean square error of <0.1 acceptable; >0.08 good 0.056 approximation (RMSEA) Source: Authors’ results To test for the goodness of fit statistics, the structural model was conducted using AMOS via maximum likelihood procedure. Hence, the value of CFA fit indices represented an adequate model fit (chi-square = 453.904, chi-square/[degree of freedom] = 1.787, goodness of fit index [GFI] = 0.870, comparative fit index [CFI] = 0.89, root mean square error of approximation [RMSEA] = 0.056).

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Table 5: Results of the structural model Path Standardized Critical Hypothesis P Results Correlation Path Coefficient Ratios H1 HA SN .592 3.014 .003 Supported H2 FV SN .391 2.610 .009 Supported H3 NV SN -.215 -2.183 .029 Supported H4 EA SN -1.004 -2.753 .006 Supported H5 MI SN .913 4.085 *** Supported H6 SN PI 3.330 4.137 *** Supported H7 MI PI -1.054 -2.505 .012 Supported H8 HA PI -.283 -1.306 .191 Not supported Note: *** p < 0.001 The results of the standardized path coefficient showed effects among the constructs with the help of coefficients (β) and P-values. The most of hypothesis (H1-H7) were supported (p < 0.01 and p < 0.05), except for H8 i.e. HA to PI (β = -0.283, p = 0.191). The variable of TPB, subjective norm (β = 3.330, p < 0.001) expresses positive influence in consumers’ purchasing intention of GH. Therefore, H6 were supported. The additional constructs included in the TPB, namely, both health and environmental awareness influenced on subjective norm. Interestingly, while health awareness (β = 0.592, p = 0.003) had a positive effect on subjective norms, environmental awareness (β = -1.004, p = 0.06) confirmed a negative influence on subjective norms. Thus, H1 and H4 were supported. Moreover, perceived values including functional value and non-economic value expressed direct effects on SN. Thus, H2 and H3 were supported. In addition, results also revealed that new variable namely media influence reported significant effect on subjective norms (β = 0,913, p = < 0.001) and purchase intention (β = -1.054, p = 0.012). Figure 3: Results of the research model

Source: Authors’ results 5. Discussion and Conclusion 5.1. Discussion Environmental awareness has a cognitive, knowledge-based component and an affective, perception-based component (Kollmuss & Agyeman, 2002). Environmental consideration was

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also proven to have an indirect relationship with purchasing intent through attitude toward products and subjective norms (Zhang et al., 2018). Despite all of this evidence pointing out environmental awareness towards green consumerism, our results show that it negatively impacts subjective norm that contrasts with H4. Based on Vietnam's overall collectivism, Hanoian tends to be navigated by relatives' opinions, especially in the massive expenditures. Panni (2006) found that the more the consumers are aware of societal and environmental issues, the more they are involved in pro-social and pro-environmental behavior. However, in recent years, it can be observed that the current ecological dreadful conditions are ever more menacing consumer health and well-being globally. Therefore, consumers are becoming more sensitive in their environmental attitudes, preferences, and purchases (Sarigöllü, 2009). They gained more knowledge through the new wave of sustainable information and were more conscious of their decision because it represents their character (self-image). Besides, consumers who are more concerned about environmental benefits are likely to downplay negative individual consequences when considering green purchases (Perlaviciute & Steg, 2015; Steg; & Groot;, 2012; Van der Werff, Steg, & Keizer, 2013). As a result, self-gained expertise, and the need to express themselves in what they choose to purchase are on the rise against mere obedience to what society tells you. When it comes to health awareness, it not only is integrated into individual daily activities (Jayanti & Burns, 1998) but also reflects a personal willingness to undertake health behaviors (Becker, Maiman, Kirscht, Haefner, & Drachman, 1977). The results have proved that health awareness has positively affected subjective norm (H1), but not supported the effects of health awareness to purchase intention (H8). Current green building guidelines aim to avoid health problems by incorporating environmental quality and health goals into construction (Spengler & Chen, 2000). Polonsky (1995) indicated that going green requires a paradigm shift in green consumer behavior, followed by using different typologies to mention health consciousness in line with homebuyers' health values, beliefs, and attitudes. Dodge Data & Analytics (2018) reported that the level of concern about a healthy living space that benefits Vietnamese health is at 28%, above the global average, just ranked after India, China, South Africa, and America. Therefore, green real estate, close to nature, relatively isolated houses are expected to take the throne soon. Besides, the influence of Covid-19 has brought more attention to health issues than before, especially community health as a whole. To put in Hanoi context, GH addresses people's health awareness and contains consumer's value orientations (e.g., person's cultural values, ethical, and political values). Health awareness and concern has been demonstrated by many studies that itself plays a significant role in consumer's decision toward green housing purchase. Furthermore, education level and high income will influence consumers, and more intent to consume green products is due to health consciousness (Rezai, Teng, Mohamed, & Shamsudin, 2012). However, health awareness needs confidence among consumers, especially the loyal ones, to consume green products in their country (Chakrabarti, 2010). Therefore, it is a challenge for the consumers in developing countries like Vietnam who generally have financial constraints, which expectedly reduce their willingness to pay more for environmentally friendly and healthy products (N. Nguyen et al., 2020). Media influence interactions affect purchase decisions both directly (by encouraging consumers to conform to peers) and indirectly (by increasing the amount of time spent thinking about and researching a product) (Wang, Li, Barnes, & Ahn, 2012). Additionally, consumers are likely to trust a green brand through frequent, positive experiences offered through social media channels (Kang & Hur, 2012). Thus, social impact theory posits that social media usage possesses a high potential for impact in a decisional relationship. The data in this study confirm that even though media

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influence has a positive effect on SN (H5), while the opposite is true for purchase intention (contrast to H7). Compared to previous research, we carried out to add a new item (MI3) because consumers tend to consume products endorsed by their idols (Fowles, 1996). Lastly, information received on personal social media channels is likely to be close in proximity and have strong ties to cultural dimensions due to their immersive living experience in their culture. Consumers in different countries have distinctive perceptions of products (Anderson, 2013; Kim, Sharkey, & Singelis, 1994), and attitudes towards products differ significantly from country to country (Papadopoulos, Heslop, & Beracs, 1990). Interestingly, in terms of Hanoi's context, it seems to go against the real estate market's green movement. This phenomenon acts as a vital force but without proper regulation and diverse into good used. That is why this study offers insights that will help those who promote green programs and behaviors as public policymakers and marketers. In terms of green housing values, which emphasizes the surrounding air, water quality, and greenery, its contribution to net value is far more outstanding. Determinants are all factors, such as the age of the building, location, area, the characteristics of the environment, economic activities, transport, population, etc., while Sheth, Newman, and Gross (1991) assessed functional value as the primary driver of consumer choice. Therefore, in this study, the functional value of green housing is proved to have a positive relationship with subjective norm (H2). Based on Maslow's hierarchy of needs, a residency is one of the most fundamental components compared to other basic needs and requires a thorough assessment. Besides, our previous research demonstrated that green housing must show green-oriented interior design, such as adequate ventilation and natural light, recycling waste treatments, and house-hold energy saving. Thus, to positively increase the demand for green buildings is expected to provide clear information about green buildings and eco-labels to promote consumer acquaintance (Jat & Mane, 2018). Moreover, seeing that the consumers ignored neither the importance nor the familiarity with the establishment of "LOTUS" - a set of voluntary green building rating systems developed by Vietnam Green Building Council (VGBC). The government should extend the advocacy of LOTUS as well as the contractors, and real estate agencies are supposed to apply various publicized methods and instruct the consumers to obtain the intent and significance of green building rating systems. T. H. Tan (2013) proved that social referents’ influence is positively correlated to self-identity in the matter of green and sustainable homes, which means the consumers’ non-economic value increases when they consumed green products. However, in this study, we indicated that non- economic value has a negative relationship with subjective norm (contrast to H3). The more environmentally responsible consumers are, the more willing they will be to buy green substitutes, and consumers’ self-image is improved when they purchase green products (Nyborg, Howarth, & Brekke, 2006). The benefit from holding a green self-image is smaller (greater) when society is more (less) divided on the issue of environmental conservation (Binder, Blankenberg, & Welsch, 2019). Not like Singapore, there are mandates - any new building must meet green standards, while at the moment, there are not really well-defined mandates in Vietnam. In order to improve non-economic value, it should be noticed that people living in green buildings had a better understanding and information about green attributes, which may lead to the higher non-economic value they perceive. Under the H6 hypothesis, subjective norms are the most positively influential factor in Hanoi homebuyers' GH purchase intention. This finding correlates the previous findings of Ajzen (2002); Maichum et al. (2016); Sang et al. (2019), who also argues that individual desire to act

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in accordance with certain preferences and purchase one thing over others is highly affected by their social community and immediate peer group. The influence of subjective norms is greater than that of other contrasts, which could be because Vietnam is a collectivist society where consumers value interpersonal relationships rely heavily on social norms when making purchase decisions (T. N. Nguyen, Lobo, & Greenland, 2017). To sum up, subjective norm is the strongest predictor of attitude, which in turn has the greatest effect on purchase intention 5.2. Conclusion We conclude that media influence and subjective norm exert a direct positive influence on GH intention. Furthermore, in a closer examination of subjective norm in the Hanoi context, the author concluded that most of the factors proposed have an internal, regulative relationship with it. Specifically, health awareness, functional value and media influence has positive towards subjective norm; the opposite was true for non-economic value and environmental awareness. The findings have proven the robust and predictive power of the proposed theoretical framework. The proposed model and measurement scales were also confirmed to be suitable for the study. However, some of our results proved to be inconsistent with other findings. This can be explained by the lack of research targeting large expenditures and relatively new real estate applications, green and sustainable factors. One other reason constitutes the distinguishment that can be observed in the field of culture and the innovation economic development. Both can dramatically affect people's perspective and behavior pattern. Besides, this research underlies some inevitable limitations: insufficient sample size, the particular geographical area, not reflecting gender influence, etc. Based on these research findings, here are some recommendations: (1) Firstly, the key factors for homebuyers to purchase the green building is promoting and marketing. In doing so, developers must understand the community requirement for health and functional essentials to ensure customer satisfaction and attract more homebuyers. Marketing campaigns would also benefit from featuring social leaders and influencers to emphasize that families, as well as other influential groups, and society at large expect consumers to live in a green residence. (2) Secondly, during the construction industry's Reconstruction stage, the government should have paid closer attention to supporting investment and providing accurate guidance for both developers and consumers in the green housing market. Such support will be significant if the green housing industry realizes the market's cultivation and development. Government support will also contribute in advance to the green housing industry smoothly entering a fast development stage, increase Vietnam’s advanced competence. (3) Finally, future research should aim to replicate the research in a broader geological region and a bigger sample size, warranting the more fir to description surveyed objects. Besides, the regulation of genders and price in GH purchase behavior is very potential to further studies.

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Appendix 1. Item-Total Statistics Scale Scale Corrected Cronbach's Mean if Variance if Item-Total Alpha if Item Item Correlation Item Deleted Deleted Deleted Cronbach’s Alpha SN = 0.713 SN1 8.15 1.886 0.447 0.727 SN2 7.95 1.741 0.628 0.511 SN3 8.06 1.727 0.532 0.625 Cronbach’s Alpha PI = 0.783 PI1 12.10 4.254 0.528 0.760 PI2 12.25 3.764 0.615 0.716 PI3 12.21 3.908 0.617 0.716 PI4 12.38 3.772 0.598 0.726 Cronbach’s Alpha HA = 0.762 HA1 13.18 2.935 0.495 0.743 HA2 13.01 2.797 0.626 0.670 HA3 13.04 2.840 0.611 0.679 HA4 12.93 2.999 0.516 0.729 Cronbach’s Alpha EA = 0.697 EA1 17.81 3.559 0.403 0.671 EA2 17.82 3.787 0.421 0.660. EA3 17.86 3.543 0.466 0.641 EA4 17.76 3.567 0.546 0.611 EA5 17.78 3.652 0.436 0.654 Cronbach’s Alpha MI = 0.689 MI1 12.50 2.910 0.461 0.632 MI2 12.42 2.832 0.542 0.579 MI3 12.52 3.054 0.437 0.647 MI4 12.53 3.053 0.452 0.637 Cronbach’s Alpha NV = 0.753 NV1 12.41 3.721 0.481 0.732 NV2 12.34 4.024 0.451 0.745 NV3 12.56 3.098 0.674 0.621 NV4 12.52 3.319 0.601 0.666 Cronbach’s Alpha FV = 0.749 FV1 21.34 7.504 0.367 0.744 FV2 21.27 7.145 0.449 0.723 FV3 21.33 6.536 0.615 0.676 FV4 21.40 7.020 0.471 0.718 FV5 21.36 6.827 0.534 0.700 FV6 21.47 6.933 0.492 0.712

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2. Confirmatory factor analysis (CFA) results

3. Results of Covariances Estimate S.E. C.R. P HA <--> FV .118 .025 4.680 *** HA <--> NV .118 .029 4.079 *** HA <--> EA .133 .023 5.780 *** HA <--> MI .071 .021 3.421 *** FV <--> NV .155 .034 4.498 *** NV <--> MI .182 .034 5.342 *** NV <--> EA .063 .025 2.561 .010 FV <--> MI .097 .025 3.905 *** EA <--> MI .104 .022 4.810 *** FV <--> EA .139 .025 5.483 *** Notes: *** Significant at 0.001 level.

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Economic Valuation from Direct Use of Mangrove at U Minh Ha National Park, Vietnam

Nguyen Huu Dung Department of Natural Resources Economics, National Economics University Email: [email protected]

Abstract This study provides partial information on direct use value of the mangrove ecosystem at U Minh Ha National Park. A survey of 120 households in six villages around U Minh Ha area was undertaken by semi-structure questionaries to estimate direct use value using Total Economic Value (TEV) approach. The findings suggest that the mangrove ecosystem is important as it contributes an average of 51% to total annual per capita income for the local people. Revenues from the mangrove wood products result in an annual benefit to the community of 526 US$/ha and 1,216 US$/ha from fish/shellfish products. With a population of whom 80% depend on the ecosystem for their livelihood, if the extraction rate is not checked, all of U Minh Ha mangrove forest will be lost in about 52 years. The local community is aware of current threats to the mangrove ecosystem and is concerned about losing income generated from the ecosystem once it is depleted. This may provide some incentives for them to protect and protest against any encroachment of the mangrove ecosystem by coastal developments. Under the current management of the ecosystem, wood products in terms of firewood, charcoal, construction poles and fishing gears are poached by residents for sale. Given the difficulties in limiting access to the mangrove ecosystem, it is unlikely that poach of wood products can be prevented. Key words: Economic valuation; mangrove ecosystems; U Minh Ha National Park.

1. Introduction Mangroves are evergreen types of forests occurring along the coastlines of tropical and subtropical regions mainly along deltas and bays where fresh-water rivers enter the sea. These forests are characterized by trees, shrubs and vines that thrive in brackish waters of varying salinity. Mangrove trees can grow to a height of up to 45m, producing dense, closed canopy forests. These mangroves provide important ecological and socioeconomical functions to coastal societies. For example, mangroves are important for conservation of biological diversity including a number of endangered mammals, reptiles, amphibians and birds, protection of coral reefs, sea grass beds and shipping lanes against siltation through their immense root system (Alongi, 2002). In addition, they provide habitat, spawning grounds and nutrients for a variety of fish species, molluscs and crustaceans. Timber harvested from the trees benefit local people as construction material, firewood and charcoal. Moreover, mangroves function as a shelter belt for coastal zones during storms, cyclones and tsunamis. Area with dense mangrove forests suffered less human losses and property damage than areas without mangroves (Daily, 1997). Recognizing mangrove value, U Minh Ha National Park in Vietnam has been established on the basis of merging Vo Doi Nature Reserve of special use forest and a part of U Minh Ha melaleuca forests. It has a total area of over 8,000 hectares. This is used for conservation and

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development of many diversity animal and plant ecosystems. U Minh Ha National Park brings typical features of Southern mangrove forest, trees in U Minh are mainly mangrove melaleuca, pimply lasia (a type of water grass), eleocharis, reed and vines… with varied fauna such as: freshwater fish, pangolin, wild boar, deer, monkey, squirrel, lizard, python, snake, turtle ... Many rare species listed in Vietnam Red Book should be preserved. However, conversion of intertidal land for marinas, ports and adjacent industrial and housing developments in this area has resulted in destruction of significant areas of mangroves. In addition, mangrove environment has suffered substantially from upland agricultural mismanagement, large scale deforestation and water resource developments, oil spills, pollution and eutrophication. Losses of mangroves in U Minh Ha have largely been attributed to over- harvesting for timber and fuel wood, conversion for aquaculture, rice farming, salt production and infrastructure (Le Quang Tri et al., 2009). Various reports (Semesi, 1998) have indicated that extensive bare lands occur as a result of indiscriminate cutting of mangrove trees. Surveys at U Minh Ha have cited poor management and unsustainable utilization of the ecosystem by local people. The seven mangrove tree species found in the region i.e. Rhizophora mucronata, Avicennia marina, Sonneratia alba, Ceriops tagal, Xylocarpus granatum, Bruguiera gymnorrhizae and Lumnitzera racemosa were noted to be showing signs of depletion, despite government’s involvement in protection and management of the ecosystem. To successfully address the problem of unsustainable utilization of natural resources, government intervention is required but this needs to be justified by providing data on rate of harvest of the natural resources in order to determine the level of exploitation and the overall status of the natural resources. Additionally, information on economic values of the mangrove ecosystem is important in determining how the ecosystem contributes to economic interests of the local communities, and as well provide inputs for policymakers so that the policies they develop reflect value of the resources and issues related to their management and conservation. Though little research on conservation of mangroves in the area has been done, the scanty information about utilization of the mangrove forest by local people has not been linked to policy making. Besides, no study on total economic value of the mangrove ecosystem has been carried out and that leaves a gap in knowledge of total economic values. This gap of information has contributed to improper implementation of conservation strategies by the government, and consequently threatens livelihoods of 70% of the local population living around the area. The main goal of this study is to value the direct use of mangrove at U Minh Ha National Park. The result will provide information on economic benefits of U Minh Ha mangrove ecosystem, to support environmental managers and policy makers to identify an economically optimal integrated management strategy for the ecosystem. The research focused on the mangrove forest, and relied on data obtained from a household survey conducted within the community. However, secondary data from related studies and government reports were used for additional information. The research concentrated primarily on direct uses of the mangrove ecosystem. 2. Methodology 2.1. General model Economists typically classify ecosystem goods and services according to how they are used and the main framework used is the Total Economic Value (TEV) approach (Pearce and Warford,

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1993). These include; (i) direct use value; (ii) indirect use value; (iii) option value and (iv) non- use value. The first three are generally referred together as use value. Direct use values are the easiest to value, since they usually involve observable quantities of products whose prices can be observed in the marketplace. Recreation is also relatively easy to value as the number of visits is directly observable though assessing the benefit received by visitors is more difficult. Furthermore, it is hard to calculate the economic value of indirect uses since the quantities of services provided such as the amount of carbon stored in biomass are often hard to measure. While their contribution to production of marketed goods and services may be significant, it is often difficult to distinguish it from that of other marketed inputs to production. Moreover, many of these services do not enter markets at all, so their price is also difficult to establish. Non-use value is the most difficult type of value to estimate, since it is not reflected in people’s behavior and is thus unobservable. However, surveys have been used to estimate its value in which people are asked how much they are willing to pay (Willingness to Pay Method) for conservation of an endangered species or ecosystems, which they themselves do not use directly. 2.2. Data collection and valuation techniques Techniques for valuing natural ecosystem services are still relatively new. Putting a monetary value on a natural ecosystem helps to demonstrate why its survival is important (Ruitenbeek, 1992). Economic values can be calculated from the cost of the products (e.g. fish) and services (e.g. tourism) derived from an ecosystem, or from the cost of replacing a service (e.g. building seawalls where natural storm protection has been lost). A survey of 120 households in six villages around U Minh Ha area was undertaken from January 2018 to March 2018. Villages were chosen from the 3 administrative locations of the ecosystem and at various distances to the forest, to provide a representative sample for utilization of the entire ecosystem. Households neighboring the mangrove ecosystem were visited and from each village, 20 households were approached. Out of 120 families interviewed, 101 provided useful information for data analysis. Total population of sampled households (1,219 persons) indicated 5% of entire the population in the buffer zone, which currently stands at 23,000 people. The average number of persons per household in the region was 12. Most villagers interviewed were fishermen who had low education level, indicating exclusion from margins of labor markets and low monthly income of 4 million VND per person. One person per household was interviewed by semi-structured questionaries to avoid repetition from members of the same household. A local guide from the community for each village led the process to necessitate easy conversation with the respondents. 2.3. Identification and Quantification of Local Direct Uses To assess whether U Minh Ha mangrove forest is useful to local people, a semi-structured questionnaire with multiple-choice as well as some open-ended questions was used in which questions were aimed at providing information regarding various uses of the ecosystem, size of each household, amount of products collected and frequency of harvesting. In some situations, like for easily noticeable uses, visual observations were used. For quantification of local uses, amount of products collected was converted to one unit (kilograms) for statistical purposes. To illustrate the procedures used, Table 1 shows examples of the steps undertaken.

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Table 1: Weight estimation procedure for mangrove products collected at U Minh Ha mangrove ecosystem based on a survey done in 2018 Estimate Parameter Unit Method of Estimation Notes weight (kg) Firewood Bundle 5 A scale was used to weigh 3 bundles, and an average weight taken Construction Pole 10 A scale was used to weigh poles 3 poles, and an average weight taken Fishing Bundle 30 A scale was used to weigh gears 3 bundles, and an average weight taken Charcoal Bag 90 1bag of charcoal was Assuming all charcoal weighed using a scale is packed in bags of same size Honey Liter 1.44 Means of metric Assuming honey conversion density value of 1.44g/ml (Krell, 1996). Medicinal Bunch 1 Quoted by respondents plant Fish kg kg Quoted by respondents Crabs kg kg Quoted by respondents Prawns kg kg Quoted by respondents Source: Author’s calculation Assuming an average of 30 days in a month, total amount of products collected on monthly basis for each household was calculated by multiplying the amount of product collected per visit to the forest by frequency of harvest (daily, weekly, monthly, yearly etc) and then divided by number of persons within a household to determine monthly per capita quantity of forest resources used. Consequently, regarding extraction of products in the six villages, the rates of annual per capita extraction and the rate of annual extraction rate per village are used. 2.4. Estimation of Direct Use Value Data obtained from the questionnaires was further analysed for estimation of direct use value of the ecosystem. Information regarding prices of materials used in harvesting was received from respondents, in addition to consultations with shop owners. Besides, few individuals among the respondents were interviewed concerning lifespan of tools used in harvesting. Minimum hourly wage rates used to calculate cost of time and price for construction poles were got from the Ministry of Labour and the Forest Department respectively. Using the following formula, as explained by Ruitenbeek (1992) in his study, direct use value was estimated by calculating net income generated by local communities in terms of products extracted directly from the ecosystem. Local Direct Use Value=Net income = ∑ 푃푖푄푖−퐶푖 where Pi =prices of product I; Qi =amount of product i being collected; Ci =costs involved in the collection of product i. Gross benefit was estimated by calculating total quantity of all products collected on monthly basis and then multiplied by market prices of each. For all products, market price was used to

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determine gross income generated. To derive net benefits, it was necessary to determine extraction costs which included cost of time spent walking to the forest, in harvesting products, and cost of tools such as axes or knives. 2.5. Evaluation of Impacts of Local Direct Uses to the Ecosystem Information on impacts of local direct uses on the mangrove ecosystem, and their concurred consequences to the local communities, was gathered from previous surveys carried out in the area. Further information was obtained by analyzing responses from the questionnaires. Questions were posed to help respondents, in accordance with their knowledge to identify current threats to the mangrove ecosystem, and to give their views on causes of the threats. We assume that the average number of 12 persons per household was similar in all villages and representative for the entire community; Market prices for all products were used in valuation of the ecosystem as there was no data on proportions of products sold in markets to subsistence food; Fish/shellfish products collected are linked to the mangrove ecosystem as feeding or spawning grounds; Market prices are not distorted; Transport costs to commercial centers were not considered as most respondents especially fishermen indicated that they sold their products through middle men, who came to collect them at the sea shore; Furthermore, selling some products to tourists, which normally fetches higher prices was not considered. The results of this study must be considered in the light of these assumptions. 3. Results 3.1. Identification of Local Uses of Mangroves Based on the household survey analysis, importance of U Minh Ha mangrove forest to the local people stems from the many products taken directly as well as the indirect benefits associated with the ecosystem. The table 2 contains a summary of the benefits identified, in which the results were grouped according to; (i) direct consumptive uses (ii) direct non-consumptive uses and (iii) indirect uses. The respondents indicated their reliance on the ecosystem for wood, fish/shellfish and other products. The mangrove ecosystem also provides opportunities for tourism and recreation, education and scientific research in addition to indirect benefits as shown in the table. Table 2: Uses of U Minh Ha mangrove ecosystem Direct Non- Direct Consumptive Use Consumptive Use Wood Fish/shellfish Other Products Products Firewood Fish Honey Tourism and Water recreation Purification Charcoal Crabs Medicinal Education and Control floods Fishing gear Prawns plant research Spawning sites Construction Reduce erosion poles of coastline Cultural importance Source: Author’s calculation

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3.2. Quantification of Local Direct Uses The study revealed how much the villagers rely on the ecosystem for their livelihoods. Use of mangrove wood products within their households for either fuel wood or other purposes was evident, and on the other hand most respondents were fishermen who depend on functions of mangroves as breeding and spawning grounds for fish and other marine animal species. Table 3 gives an overview of annual per capita extraction rates of the different products collected from the ecosystem. Among the wood products, firewood and charcoal was most utilized with average annual per capita extraction rates of 317kg and 91kg respectively. Wood for making fishing gears and for house construction is as well harvested but at lower rates. Based on analysis performed for fish/shellfish products, majority of the respondents reported that fish extraction was the major use recording an annual per capita extraction rate of 82kg. In addition, the ecosystem is used for collection of crabs and prawns. Production of honey and extraction of medicinal plants from the ecosystem was also observed though the products are utilized at very low quantities. Table 3. Summary of annual per capita extraction rates for various mangrove products collected at U Minh Ha in 2018 Annual per Capita Extraction of Mangrove Products (kg) Study sites Wood products Fish/shellfish Others Villages products Firewood Charcoal Fishing Construction Fish Crabs Prawns Honey Medicinal gear poles Plant Khanh Lam 356 121 53 15 45 8 2 0,6 1,3 Khanh An 64 76 55 22 70 6 2 0,5 3,1 Khanh Binh 237 103 91 8 79 8 3 0,7 0,0 Tay Bac Tran Hoi 174 71 17 77 69 8 6 3.0 0,0 Average 208 93 54 31 66 7,5 3,3 1,2 1,1 annual/capita extraction (kg) Source: Author’s calculation Further revealed from the analysis is that wood products are in total harvested at an annual per capita rate of 493kg. Fish/shellfish and other products on the other hand are utilized at average rates of 92kg and 2kg respectively. Khanh Binh Tay Bac exhibited the highest annual per capita extraction rate for wood products in which firewood contributed the highest proportion. Fish contributed the highest proportion of the total quantity extracted annually by each person in all villages. 3.3. Local Direct Use Value Estimation of annual net benefits derived from U Minh Ha mangrove ecosystem were based on utilization of firewood, charcoal, fishing gear and construction pole (wood products); fish, crabs and prawns (fish/shellfish) as well as honey collection (other). Further, the annual direct use value was derived from sample population of 1,219 persons represented in the 101 households surveyed.

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Table 4: Summary of annual per capita net benefits derived from various mangrove products collected at U Minh Ha Mangrove Ecosystem Annual net benefit/person (US$) Total Total annual/ annual Fish/shellfish Villages capita Study sites Wood products Others net products net benefit benefit (US$) (US$)

Construction

Medicinal

Firewood

Charcoal

Prawns

Fishing

Honey

Crabs

Plant

poles

gear

Fish

Khanh Lam 42 4 3 2 26 27 2 1 NA 106 20996 Khanh An 7 3 3 3 77 21 4 1 NA 118 29941 Khanh Binh Tay 28 3 5 1 44 25 7 1 NA 112 29652 Bac Tran Hoi 20 2 1 10 69 27 8 12 NA 137 21400 Average 41 3 2 5 90 22 6 3 NA 172 209777 annual/capita extraction (kg) Source: Author’s calculation As indicated in the Table, the ecosystem is valued at 209,777 US$ per year or 120 US$/ha. On average, the local people earn 172 US$ per person per year from the mangrove ecosystem, with fish contributing the highest annual income of 90 US$ per person. Firewood and use of crabs earn 41 US$ and 22 US$ per person per year respectively. 3.4. Impacts of Local Uses on the Ecosystem The most important threat to U Minh Ha mangrove ecosystem was cited as uncontrolled exploitation of wood products. Based on analysis done to determine villager’s opinion on utilization of the ecosystem, 73 out of 170 responses reported over extraction of wood products where 57 responses cited over fishing as a threat to the ecosystem. A further 40 answers stated lack of information on how the ecosystem was being exploited. The local people expressed different opinions concerning depletion of the ecosystem. Majority of the villagers, 81 out of 288 responses according to survey results felt that over-exploitation of forest vegetation, which was cited as the most important threat might lead to further reduction on food resources, in terms of reduced fish, prawn and crab catches. Lack of fuel wood and other wood products especially materials for house construction was the other major concern for the villagers. Sixty-eight responses revealed that, depletion of the ecosystem might lead to scarcity of construction material. This was followed by another 59 who believed that, young people especially those working as tour guides or assisting researchers could lose their jobs, mentioning that if the ecosystem was depleted, the number of tourists and researchers visiting the ecosystem would as a result reduce. A small number of 29, raised fears of losing human life in case of floods. Likewise, not many villagers were worried about loss of resources for future generation, with only 12 responses

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stating that depletion of the ecosystem could deprive the young generation a chance of benefiting from the ecosystem. Sixty-four out of 180 responses agreed that the ecosystem is of importance to them and should therefore contribute in its management and conservation. Fifty felt that, educating the community on environmental issues would help them change their perception on utilization of natural resources. Additional 46 argued that if government provided employment for the youth, their dependence on the ecosystem for their livelihood would decrease, thus reducing amount of products collected. A small number (19) of the community advocated for the government to enhance protection and management measures, while only 1 believed alternative uses of fuel wood would manage the current problem of over exploitation. 4. Discussion This study shows that, U Minh Ha mangrove ecosystem provides both direct and indirect values to the local people. Among the direct uses are: harvesting of firewood, charcoal production, wood for making fishing gears and for house construction. In addition, the ecosystem is exploited for marine organisms; fish, crabs and prawns as well as for honey production and extraction of medicinal plants. Although production of dyes and tannin from the mangrove ecosystem has been documented, no such data was reported in the present study. Indirect benefits provided by the ecosystem include serving as feeding and spawning habitats for fish and other marine species, purification of groundwater system, protection of the coastline from erosion and control of floods. The ecosystem also provides opportunities for education, scientific research, recreation and tourism. Culturally it is important to the local people as some old folks admitted that they offer sacrifices in certain sacred parts of the forest to appease their gods. The high annual per capita extraction rates for firewood and fish is because the products are collected in huge quantities and are mainly for sale at the nearest shopping center. Charcoal production was however extracted at low rates in the village and this is mainly because the village is located far from the forest, coupled with the long process of charcoal production, many local people do not want to venture into the process as it would be uneconomical. Most local people use traditional ways of fishing as they do not have access to modern methods since the village is located far from trading centers. A person depending entirely on the ecosystem for his livelihood would earn 172 US$ per year. Considering an average per capita monthly income of 21-43 US$ earned by most local people an individual would earn 252- 516 US$ per year. Income accrued from the mangrove ecosystem is therefore important to the community as it contributes an average of 51% total annual per capita income. Assuming the local people derive annual net benefits of 51 US$ per person and an estimate 18,000 persons depend on the ecosystem, the ecosystem will be valued at 918,000 US$ per year for wood products or 526 US$/ha/year. Value for fish products considering an annual per capita net benefit of 118 US$ is estimated at 2,124,000 US$ per year or 1,216 US$/ha/year. Besides, the ecosystem is valued at 54,000 US$/year or 31 US$/ha/year for honey production. If half of the population (11,500) depend on the ecosystem for their livelihoods, the ecosystem will be valued at 586,500 US$ per year or 336 US$/ha/year for wood products, 1,357,000 US$ per year or 777 US$/ha/year for fish/shellfish and 34,500 US$ per year or 20 US$/ha/year for honey production. These community members are aware of values and threats of the ecosystem. Many were concerned that, problem of over utilization of forest resources might persist, given that the increasing population is exerting more pressure to forest wood products in terms of fuel wood consumption,

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which form the main energy source for domestic use in nearly all rural homes. Besides, the locals argued that lack of jobs for the youth also contribute to the problem as most villagers, the majority of whom are young people, have been for many years harvesting products for sale. Regarding human problems arising as a result of depletion of the mangrove ecosystem, low response on fears for loss of human life due to floods was because the area is not prone to floods and very few people if not anyone has experienced such a calamity in the region. Similarly, few people were worried about loss of resources for future generation, and this can be attributed to limited environmental education and awareness in the community. The community agrees that the ecosystem is of great importance to them and should therefore participate in its management and conservation. Most of those who believed that the community should take part in conservation argued that there has been a reduction in fish catches over the years while others felt they were spending more time in search of good poles for house construction and fuel wood. It is this concern that led some locals get involved in conservation activities which include replanting of mangrove trees. There is need for an integrated management plan, which incorporates protection of the mangrove ecosystem, commercial and local use interests. To address conflicts between the different interests, government and Non-Governmental Organizations and the community need to work together to enhance conservation and sustainable utilization of the ecosystem. This can be achieved through (1) Training the local communities on sustainable exploitation of the mangrove ecosystem (2) Promoting small-scale enterprises based on mangrove uses for example beekeeping and crab culture (3) Initiation of mangrove re-forestation projects in all villages surrounding the mangrove ecosystem. A complete inventory for all uses of the ecosystem is required in order to enhance understanding on its true economic, social, cultural and ecological values. 5. Conclusion Mangrove ecosystems provide a wide range of both direct and indirect use values to coastal communities in developing countries. The full value of mangrove products and services is not yet recognized and is therefore often ignored in development planning. As a result, decisions are made which favour commercial developments over mangrove conservation. The direct use value for U Minh Ha mangrove forest is not well understood but is considered to be high and important to about 80% of the local people in the area. This report presents an economic value of direct uses of mangroves at U Minh Ha, to support policy makers identify an economically optimal integrated management strategy for the ecosystem. The direct uses of the mangrove ecosystem were examined through a survey of the local people, in which 5% of total U Minh Ha population was represented in the survey. Use rates for firewood, charcoal, construction poles, fishing gears, honey, medicinal plant, fish, crabs and prawns were quantified, and values were ascribed according to current commodity prices in local market. With a population of whom 80% depend on the ecosystem for their livelihood, if the extraction rate is not checked, all of U Minh Ha mangrove forest will be lost in about 52 years. Revenues from the mangrove wood products result in an annual benefit to the community of 526 US$/ha and 1,216 US$/ha from fish/shellfish products. Income obtained from the mangrove ecosystem contributes 51% to total annual per capita income. Moreover, the community recognizes importance of the ecosystem to their livelihood and showed willingness to participate in its management and conservation.

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References 1. Aizpuru, M., Achard, F. and Blasco, F. (2000), Global Assessment of Cover Change of the Mangrove Forest using Satellite Imagery at Medium to High Resolution, Joint Research Center, Ispra. 2. Alongi, D. (2002), Present State and Future of the World’s Mangrove Forests. Environmental Conservation, 29, 331-349. 3. Bann, C. (1997), The Economic Valuation of Mangroves: A Manual for Researchers. International Development Research Centre: Ottawa. 4. Birdlife International (2005), Threatened Birds of the World. Lynx Edicions & Birdlife Cahoon, D.R. and Hensel, P. (2002), Hurricane Mitch: A Regional Perspective onMangrove Damage, Recovery and Sustainability, US Geological Survey Open File Report., 03-183. 5. Dahdouh-Guebas, F., Jayatisse, L.P., Di Nitto, D., Bosire, J.O., Lo Seen, D. and Koedam, N. (2005), How Effective were Mangroves as a Defence against the Recent Tsunami? Current Biology, 15, (12): 443-447. 6. Daily, G. (Ed.) (1997), Nature’s Services: Societal Dependence on Natural Ecosystems, Island Press, Washington. 7. Ellison, J. (1993), Mangrove Retreat with Rising Sea Level, Estuarine Coastal and Shelf Sciences, 37, 75-87. 8. Ellison, J. C. (2000), How South Pacific Mangroves May Respond to Predicted Climate Change and Sea Level Rise. A. Gillespie and W.C.G. Burns (Eds.), Climate Change in the South Pacific: Impacts and Responses in Australia, New Zealand, and Small Islands States. Kluwer Academic, 289-301. 9. Ewel, K.C., Twilley, R.R. and Ong, J.E. (1998), Different Kinds of Mangrove Forests Provide Goods and Services. Global Ecology and Biogeography Letters., 7, 83-94. 10. Gilbert, Alison J. and Janssen Ron (1998), Use of Environmental Functions to Communicate the Values of a Mangrove Ecosystem under Different Management Regimes, Ecological Economics, 25, (3): 323-346. 11. General Statistics office of Vietnam (2010). Statistical Yearbook of Vietnam 2005, 2006, 2007, 2008, 2009, 2010, statistical publishing house. 12. Le Quang Tri, Pham Thanh Vu, Nguyen Thi Song Binh, Nguyen Huu Kiet. Đánh giá thích nghi đất đai và mô hình canh tác trên vùng đệm Vồ Dơi, Vườn Quốc gia U Minh Hạ, Cà Mau, Sách Bảo tồn rừng Tràm và đất than bùn vùng U Minh hạ, Cà Mau. Trang 140 – 162. Năm 2009. Nhà xuất bản nông nghiệp. 13. Robertson, A.I. and Phillips, M.J. (1995), Mangroves as Filters of Shrimp Pond Effluent: Predictions and Biogeochemical Research Needs, Hydrobiologia., 295, 311-321. 14. Ruitenbeek, J. (1992), The Rainforest Supply Price: A Tool for Evaluating Rainforest Conservation Expenditure, Ecological Economics., 6, (1): 57-78. 15. Semesi, A.K. (1998), Mangrove Management and Utilization in Eastern Africa, Ambio,27, 620-626. 16. People’s Committee Department of U Minh District, 2013. Socio-economic Report 2013. 17. Wells, S., C. Ravilous, and E. Corcoran (2006), In the Front Line: Shoreline Protection and Other Ecosystem Services from Mangroves and Coral Reefs, Cambridge, UK.

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An Overview of the Key Factors on Changing Local Awareness on Biogas Adoption and Policy Implications – Opportunities and Challenges for Biogas Development in Vietnam

Le Thi Thoa1, Do Thu Nga2, Dinh Duc Truong3, Pham Ngoc Bao4, Khanitchaidecha Wilawan5 1Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH 2Electric Power University, Vietnam 3National Economics University, Vietnam 4Institute for Global Environmental Strategies (IGES), Japan 5Naresuan University, Phitsanulok, Thailand

Abstract Livestock is the largest sector in Vietnam's economy, and also the largest source of environmental pollution (World Bank, 2017). Environmental issues related to air pollution, groundwater and surface water pollution are still prominent issues in livestock waste management towards sustainable development and climate change adaptation in Vietnam. Development of biogas model, particularly at farm scale, is a solution to the environmental problems in the context of depleted fuel sources and climate change. This study presents an overview of the factors affecting the decisions to use biogas models at livestock farms. Proper and sufficient assessment of the factors affecting the use of the model will help in finding out measures to strengthen the capacity of local managers and to raise awareness for local households/farm owners.

Keywords: Biogas, climate Change, environmental pollution, livestock waste, Vietnam

1. Introduction Energy shortage and climate change are enormous threat to global growth. In Asia, Vietnam is one of the countries severely affected by this problem. According to UNDP (2010), Vietnam will lose about 10% of GDP by 2050 due to climate change, directly affecting the livelihoods of 23 million people. Vietnam is also at risk of energy shortages for development due to heavy reliance on hydropower and overexploitation of fossil resources. Facing this situation, the Government of Vietnam has issued many strategic directions in responding to climate change, efficient use of energy and encouraging the development of renewable energy. The major policies include: National Strategy on Climate Change (2011), Green Growth Strategy (2012), Strategy for National Renewable Energy (2007) and National Target Program on Energy Saving and Efficiency (2013). Rapidly increasing energy demands worldwide has resulted in tremendous depletion of fossil fuel resources. This makes it necessary to find alternative energy sources which have a minimum impact on the environment. In this context, biogas is one key alternative option for the substitution of fossil fuels. Biogas is a clean fuel which can be conveniently used for cooking and lighting. Moreover,

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biogas is also can be used as substitution of gasoline for internal combustion engines in order to produce electricity or driving machines wherever lack of fuel. Biogas could mitigate environmental pollution and climate change through converting organic wastes and livestock wastes (slurry or manure) to energy. Last but not the least, biogas by-products could be used for fertilizing. Thus, biogas could bring a lot of benefits, and especially, is one of the sustainable energy sources that can be produced from many types of biomass including livestock wastes. Vietnam is a country with climatic and soil conditions being favorable for livestock development in farms, especially pig farming. The livestock sector in Vietnam plays an important role in agriculture. It accounts for 28 percent of agricultural gross value added (World Bank 2017) and is one of the fastest growing agricultural subsectors. In 2020, Vietnam has about, 30.45 million pigs with nearly 70 million m3 of solid waste equivalent or nearly 734 Ktoe (draft report on evaluation biogas potential in Vietnam, MOIT 2020). Hence, producing renewable energy from livestock waste (PREW) can bring many benefits to the farms as significant savings in energy costs, reduce the risk of polluting the environment and improve people's health. Also, PREW will reduce CO2 emissions causing climate change, while contributing to reduce the exhaustion of fossil energy resources of Vietnam. According to ENV (2014), the greatest difficulty in developing PREW in Vietnam is low awareness of people and society about the role and benefits of PREW. With routine use of energy from traditional materials such as electricity, coal, wood, mobilizing people to use a new type of energy is very difficult. Most people do not understand that PREW is a profitable energy solution for households and environmental benefits for society. Besides, the investment of PREW is fairly expensive for farms in condition of lack financial support from the authorities. In addition, Vietnam has not developed technical support system for the design and operation of PREW as well as providing information about PREW for community. Moreover, from the side of the authorities, both at central and local levels, awareness of the policies, mechanisms and programs boosting PREW is low and in need of capacity strengthening. There is very less publications in overviewing or systemizing regulations and policies the field of renewable energy in Vietnam, especially biogas. Ngan and Huong (2016) overviewed current status on exploiting and applying energy in general and renewable energy in particular in Vietnam and to present the Vietnamese policy on renewable energy. Vinh (2017) reviewed electricity regulation in Vietnam. In this paper, difficulties and challenges in PREW adopting in Vietnam, as well as key factors on changing local awareness on biogas adoption in Vietnam are first reviewed. 2. Methodology The data in this research was extracted and summarized from many scientific publication, government reports and documents, including current policies/ decisions, or results of projects in Vietnam in relation to the biogas development and local awareness on biogas adoption. On the other hand, information collected from desk study was then consulted with managers, policy makers and NGOs, as well as experts in the field of PREW from Vietnam and Thailand, Japan. Knowledge gap, institutional barriers and proposed solutions were achieved from the literature review and consultation. 3. Results 3.1. Livestock waste generation and management practices With the increasing number of animals, the issue of livestock waste treatment is typically concerned. According to the calculation of the Department of Livestock Production, MARD,

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on the basis of annual livestock number, the amount of solid wastes from some main livestock in the country was 77.39 million tons and in 2015 it was 84.88 million tons, and in 2016 it was 88,10 million tons of which pig waste accounted for about 30,11% of the total animal waste, but only about 74% of the solid waste was treated, the remaining discharged directly into the environments (appropriate 26%) (DMHCC 2009). This has adversely affected the environments as causing many complaints of the communities living around the livestock system (DLP, MARD 2016). Table 1: Annual livestock waste generation in Vietnam Animal Daily Annual Livestock wastes (million tons) types manure load 2011 2012 2013 2014 2015 (kg/head) Pig 2,5 24,69 24,18 23,96 19,54 25,32 Poultry 0,2 23,55 22,52 22,98 23,92 24,96 Cow 10 19,84 18,96 18,82 19,11 19,59 Buffalo 15 14,85 14,39 14,01 13,75 13,82 Goat 1,5 0,66 0,73 0,74 0,91 1,03 Horse 4 0,13 0,12 0,12 0,10 0,09 Deer 2,5 0,05 0,05 0,06 0,06 0,06 Total 83,77 80,69 77,39 84,88 Source: DLP, MARD (2016) Discarding untreated animal waste has many negative consequences. The first main negative constraint is the air pollution. The livestock sector, mainly the manure produced, is responsible for air pollutants in the environment. The main gases that are released are hydrogen sulfide, methane, ammonia, and carbon dioxide. These gases among other gases can also cause serious human and animal health problems. There are also nitric oxides that are released which may cause acid rain. According to the Food and Agriculture Organization livestock production is responsible for 18 percent of the global greenhouse emissions. Untreated animal waste can also cause problems in the water and soil quality affecting the quality and quantity of agriculture products (Castel et. al. 2006). Animal wastes are currently being managed in a variety of ways that include composting, the use of biogas digesters, and the direct use of raw manure as fertilizer. In composting, solid wastes are collected and composted to produce organic fertilizers whereas the liquid fraction is washed off the floor and discharged to the surrounding environment or fishponds. In biogas, wastes are collected and treated in biogas tanks; gasses produced are used for cooking and biogas effluents are used as fertilizers or discharged into fishponds for farming fish. In some places, raw manure (that is, chicken manure) is sold and applied directly to crops as organic fertilizers. Waste management practices are diverse, depending on specific farm conditions, such as types of animals, housing systems, locations, and farm sizes. In Vietnam, space for waste disposal in pig farms is often very small, especially in the northern commercial pig farms (34 m2). About 30 percent of pig farms are reported to practice separate collection of solid and liquid waste, and 60 percent of farms treat wastes in the form of a mixture. In pig farming, the use of biogas digesters to treat waste is fairly widespread. About

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53 percent of pig farms in the south, 60 percent in the north, and 42 percent in the central regions were reported to use biogas digesters for waste treatment (Vu 2014). The majority of commercial farms (93,72% percent) had biogas digesters for waste treatment, while only around 72,72% percent of smallholder farms used these techniques (DLP-MARD, 2013). In many smallholder farms, solid wastes are collected and composted with rice straw and used as fertilizer for crops. About 35.5 percent of pig farms reported storing their pig wastes without treatment and about 40 percent of pig wastes were discharged directly into the environment without treatment (DLP-MARD 2015). 3.2. Key factors on changing local awareness on biogas adoption Rogers (1995) defines technology adoption as the level at which an innovation is chosen to be used by a person or an organization. A decision on adopting biogas technology (Abukhzam & Lee 2010) depends on numerous elements, such as perceived usefulness and ease of use, facilitating conditions, e.g. social-economic influence, technology readiness and availability of government support. These factors can make a positive or negative contribution towards biogas technology adoption. 3.2.1. Social-economic factors Many studies at global level have been conducted on the dissemination and adoption of biogas technology in order to promote it as a viable renewable energy source. However, the decision involving resources allocation includes the contemplation of several reasons and alternatives (Anderson 2002). The socio-economic hindrances in some developed countries undermining the widespread adoption of the technology and the factors that can promote the technology were examined and explored by Mwirigi et al. (2014), Qu et al. (2013) and Kabir He al. (2013). A review of social-economic factors affecting adoption of biogas digestion in Sub-Saharan Africa (Smith 2005) reported that some main factors affecting adoption were related to investment cost, ability to pay, family income, size of farm and availability of credit facilities. Walekhwa et al. (2009) concluded that household size, numbers of cattle owned, cost of traditional biomass fuels and household income are factors that influence biogas technology adoption in Uganda. Studied same issue in China, Qu et al. (2013) found that the factors that influence to farmers’ decision to adopt the technology were support from the government and related household factors, such as level of income, household size and age of household head. In Bangladesh, the determining factors which influence the technology adoption include the gender of the head of household, educational level, number of cattle owned and income level (Kabir et al., 2013). The findings in Pakistan by Inayatullah et al. (2018) unravel the factors influencing biogas technology to include the level of education, daily electricity shortfall and its effect on children's education, female drudgery and awareness of the technology. In general, social-economic factors affecting adoption biogas digestion were mainly from two issues, which is household and setting characteristics, and knowledge and perception. * Household and setting characteristics Household and setting characteristics are including gender, age, and income. Gender role in the household can either positively or negatively influence adoption of a technology. The gender roles can be in form of responsibilities and resource ownership amongst men and woman. Woman plays a crucial role in the provision and use of household energy either for cooking or heating. Woman bears the main labor burden of fuel provisioning, but often have less access to credit or income for investment in new energy technologies. As the main users of energy,

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women also bear the main health burden related to energy use. Energy provisioning and poverty are closely related, as are poverty and gender, with disproportionate impact on women and girls (Muchiri 2008). Their energy concerns are in tune with the search for systems that would relieve them of tiresome repetitive responsibilities (Denton 2005). The age of household head can positive and negatively influence decision making of whether to adopt biogas technology or not. Old age, according to Nhembo (2003) is associated with conservatism and may influence their willingness to adopt new technologies. Old people are not ready to experiment with new ideas because they are deemed to be more risk averse. However, older people are sometimes regarded as having more resources with a higher economic status that can allow them to engage in capital intensive technologies than younger people. On the other hand, younger households are considered to have long horizons of planning and therefore are more innovative and perceived to take risks related to new technologies. Thus, there are some innovation where younger heads of household stand a better chance of adopting new technology than older heads of households. Income is another prime factor influencing adoption since it is only with sufficient cash that an individual will be at position to meet technology cost (Mwirigi et al, 2011). Incapacity of farmers to meet the full cost of biogas installation is a key impediment to biogas up take (Arthur et al, 2011). In support this argument, Bensah and Brew-Hammond (2011) noted that inability to raise money to meet installation by farmers remained a major impediment to biogas technology uptake in Ghana. The uptake of technology is driven by income earned by households. Thus, higher levels of income are anticipated to readily adopt biogas technology compared to households with lower income levels. Therefore, household income is projected to carry a positive symbol as it is hypothesized that the adoption of biogas technology increases with household income levels. * Knowledge and perception The knowledge and awareness of the characteristics of biogas using, perception of environment protection and energy saving have affected the adoption behaviors obviously. Education level is an important factor affecting the knowledge and perception. Education helps in improving beliefs and habits which in turn creates favorable mental attitude for acceptance of new practices (Omer & Fadalla 2003). Education also increases information acquisition ability thereby providing awareness knowledge to new technologies and beneficial practices. Despite the fact that formal credit markets are becoming increasingly accessible to farmers, illiterates may find the complicated borrowing process and paperwork a major disincentive (Vien 2011). Awareness about the technology and benefit of this technology also plays a major role in technology adoption. Arthur et al. (2011) acknowledged that lack of knowledge about the technology in Ghana greatly led to low uptake. Success or failure stories of previous installations can positively or negatively affect uptake. According to Gitonga (1997) information from satisfied users on how well their systems are functioning is enough to convenience other potential users to install their own. Where the systems malfunction, uptake will be low since other individuals who may be willing to install will get discouraged and shun away from such technology. Main knowledge and perceptions of biogas adoption are presented as below: - Smoke, health and safety: Acknowledgement of health benefits including fewer episodes of eye and respiratory diseases from not using traditional solid fuel stoves (Bajgain et al. 2005;

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Kumargoud et al. 2006), and less backache from reduced firewood collection (Mwirigi et al. 2009) were widely described, in particular among women. Some concerns about infectious diseases spreading through handling of manure and increased breeding of insects after plant installation were also reported. - Cleanliness and home improvement: Perceived benefits from improved sanitation (in particular through the inclusion of latrines during the installation) (Bajgain et al. 2005), reduced smoke (Mwirigi et al. 2009), a cleaner home environment (iDE 2011) and cleaner cooking vessels were reported. Biogas is also used for lighting purposes in some settings, but the evidence does not allow any conclusions to be drawn as to whether or not this is considered an incentive for biogas uptake (Bajgain et al. 2005; Kumargoud et al. 2006). - Total perceived benefits: Other perceived benefits from biogas use included improved quality of life (Jian 2009), convenience for cooking and the possibility of meeting all cooking needs. Additional economic benefits associated with biogas include cost savings made from purchasing less fuel (iDE 2011) and from the production of bio-slurry; the latter is a substitute for chemical fertilizer, but can also be used as an insecticide or fish feed. Moreover, if sold to other households, it can provide a source of income generation. 3.2.2. Institution and mechanism factors Although digesters can reduce greenhouse gas (GHG) emissions, produce renewable energy, and generate other value-added products such as pathogen-free animal bedding, large capital costs have typically made these systems economically infeasible (Kruger et al. 2008, Lazarus and Rudstrom 2007), but some studies (Kruger et al. 2008; Wang et al. 2011) have found that digesters are not economically feasible for most animal feeding operations so that for sustainable development, the government should have incentives to support biogas program. For biogas adoption, the government would promote under the support beneficiary macro- policy, detailed regulations and rules. It is important to decide distinct rules and regulation to different areas. This includes financial support such as through the ways of low tax and subsidy, financial support from the government would increase the adoption willingness and more important, the adoption behavior at the very beginning facilitate without an increase of residents’ financial cost. Cost is needed to build and maintain the biogas digestion. In most cases, the building of biogas digestion is supported by the local government and the self- investment from the resident is very limited (Zhou et al. 2013). The real practice showed that the lack of special funds and subsidies is the main reason causing an abandon of biogas in many areas. Regulatory frameworks for agriculture and renewable energy are important factors that influence the adoption and implementation of anaerobic digesters as well as the availability of specific feedstock materials. Well-developed regulatory and policy frameworks encourage owners and developers to implement renewable energy systems and, in the context of this report, anaerobic digester systems in the agricultural sector. Interest in anaerobic digestion has increased globally as governments work to reduce greenhouse gas emissions and identify alternative energy sources for growing populations. In this project, all the listed impacted factors on changing awareness of local communities on biogas adoption will be originally considered to assess the awareness of local communities. Appropriated training materials and courses will be accordingly developed. This project is

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expected to bring highly scientific results to the policy-makers, so that helps in increasing biogas implementation in the whole countries. 3.3. Opportunities and challenges for PREW in Vietnam According to World Bank (2017), Vietnam has a large potential for biogas. Currently, small scale biogas projects have been widely developed across the country with more than 1 million facilities built and operated. Some industrial scale facilities have also been developed for waste and wastewater treatment at livestock farms. Currently, livestock households are still a large proportion in Vietnam, livestock waste treatment and management are still alarming issues. Over the past years, livestock waste at household level has been treated by: (i) traditional manure composting; (ii) use biogas technology; (iii) using biological or other biological methods as biological ponds, aquatic plants ... However, livestock wastes, in most of the case, are discharged directly into canals, ditches, ponds and lakes, causing serious pollution. Polluted water, land and air directly affect the health and wellbeing of the surrounding households. According to the surveyed result of Department of Livestock Production (DLP-MARD 2016), the extent of livestock waste treatment for 55 out of 63 provinces/cities in 2014 presented: there were 729 out of 12,427 surveyed farms using biology bedding (5.86%), 3,950 farms using biogas (31.79%), 235 farms applying compost (1.89%), 6,694 farms selling as fertilizer (25.61%), 270 farms using other measures (2.17%) and 781 farms not using any treatment measures yet (6.28%). Besides, there were 61.4 thousand out of 5.6 million livestock households applying biological beddings (1.08%), 231.2 thousand households having biogas digestion (4.08%), 6.15 % of total households applying compost and 37.28 % not applying any waste treatment measures. 3.3.1. Relevant policies, strategies and initiatives on the Issue of PREW * Current policies relating to PREW In recent years, Vietnam has been diversifying its energy sources, promoting energy saving and efficiency, and issuing policies to explore renewable energy with low emission. In order to achieve the above-mentioned goals and targets, Vietnam has tried to mobilize all of its available resources. Many legal documents, such as laws, regulations and decisions, have been issued to guide and facilitate the implementation of these goals and targets. The major policies include: National Strategy on Climate Change (2011), Green Growth Strategy (2012), Strategy for National Renewable Energy (2007) and National target program on energy saving and efficiency (2013). Vietnam is an enthusiastic and responsible member among 194 countries and 1 local economical organization that early participated in United Nations Framework Convention on Climate Change (UNFCCC). Worldwide countries are seeking every solution and striving for the target that by the end of 21st century, the global average temperature will not raise higher than 2oC, compared to the pre-industrialization period. Vietnam signed on the Framework since 1992 and it was approved in 1994; signed on Kyoto Protocol in 1998 and it was approved in 2002. In 2011, the ‘National Strategy on Climate Change (CC)’ was approved by the Prime Minister on the Decision no. 2139/QĐ-TTg dated December 5th 2011. The strategy identifies that dealing with climate change (CC) is the survival problem of Vietnam; reducing climate change must aim for the low carbon economic; action must be taken to alleviate CC and greenhouse gas emissions (GGE). Being a developing country, Vietnam is not on the list of countries required to reduce GGE to the suitable percentage of 1990. However, Vietnam sent the Intended Nationally Determined Contribution (INDC) to the Secretary Board of UNFCCC,

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referring to GGE in Vietnam, confirming the GGE reduction in Vietnam within 2021-2030. With domestic resources, until 2030, Vietnam commits to reduce 13% amount of GGE, compared to the Basic Report (BAU). The contribution of Vietnam in reducing GGE can be raised to 28% if the country receives more international financial support. To meet the target of reducing GGE, for energy, there are two strategic solutions (i) improve the effectiveness in using energy and energy efficiency to reduce energy waste; (ii) shift the energy source structure by using less fossil fuel, enhance the effective exploitation and increase the use of renewable energy for production and consumption, limiting GGE. To implement the first strategic solution, the Government issued various policies of using energy economically and effectively. “National energy efficiency programme” (2006-2015) was implemented with four outputs (i) Enhance education and promotion to disseminate information, campaign for community, raise awareness, promote effective use of energy, protect the environment; (ii) Improve and disseminate high-capacity and energy-saving equipment, step-by-step remove low-capacity equipment; (iii) Use energy economically and effectively in the buildings; (iv) Promote energy saving in Transportation. The Government issued Law of “Using energy economically and effectively” (2010) and documents based on the Law to regulate in detail and implement the law. This created considerably sufficient legal framework to implement all activities of using the energy economically and effectively within 10 previous years which is expressed by the enhancing policies of using renewable energy (RE) in our country’s primary energy source structure within the next 15 years (2016-2030). In November 2015, the Prime Minister approved ‘Strategy to develop renewable energy of Vietnam until 2030, with the vision to 2050’ on Decision no. 2068/QĐ-TTg, dated November 25th, 2015. According to this, the renewable energy will be strongly developed in upcoming decades and one of purpose in this decision is to increase the scale of using biogas technology with the building volume from around 4 million m3 in 2015 to around 8 million m3 by 2020; around 60 million m3 by 2030 and around 100 million m3 by 2050. To implement effectively all content in RE energy development strategy, in point 1 clause VII, Decision No. 2068/QĐ-TTg, issued on November 25th, 2015, approved by Prime Minister, the ‘Strategy to develop renewable energy until 2030, with vision to 2050’, the Ministry of Industry and Trade is assigned to be the organization in charge in developing and using renewable energy. Beside other tasks, the Ministry of Industry and Trade is responsible for establishing the route to implement approved Strategy. To promote biogas plant, the Government had issued the decision No. 50/2014/QD-TTg dated 4/9/2014 of the Prime Minister on policies on subsidies for improvements in farmer household animal husbandry in 2015 – 2020 periods for subsidy on livestock waste treatment “one-time subsidy up to 50% of the expenses for the construction of biogas work for treatment of waste matter. A subsidy of no more than VND 5 million for a biogas digestion per household; one- time subsidy up to 50% of the expenses for biological carpets; subsidy of no more than VND 5 million for a household. * National Vietnamese Biogas Strategy Realizing the potential benefits to the environment and overall economy, the Vietnamese government intends to implement a comprehensive strategy for application and expansion of technology on treatment of domestic animal waste. According to the Ministry of Environment there are approximately 100,000 biogas digester in the year of 2009, the Vietnamese government’s plan is to reach 140,000 digesters by 2010. The strategy was formulated by Institute of Strategy and Policy on. Natural Resources and Environment (ISPONRE). ISPONRE

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is an institution under the Vietnamese Ministry of Natural Resources and Environment that deals with policy and planning. The strategy is designed to harmonize the animal husbandry with the Vietnamese economy. They aim to do this by promoting biogas research and development, expand the scale and biogas number, and coordinate various activities with the different actors involved. The main objective of the strategy is to ensuring the sustainable development in animal husbandry in order to meet the needs of socio-economic development, at the same time achieve the objective on environmental protection, contribute for the sustainable development of the country, and improve the living standards of people. The four sub-objectives are:  Completing institutional and legal framework in order to encourage the application of environmental protection measures in the animal husbandry sector  Promoting the application of technology for the treatment of domestic animal wastes in Vietnam  Building instruments supporting the expansion of technology for the treatment of domestic animal wastes  Creating a convenient environment for the application and expansion of technology for the treatment of domestic animal wastes. Although Vietnam approved several policies on livestock development, green growth, livestock waste treatment, renewable energy development (biogas) and GHG emission reduction etc.., policies and regulations remain some gaps and shortcomings and does not encourage the biogas technology development as well as biogas usage to generate electricity. 3.3.2. Barriers for PREW in Vietnam The livestock sub-sector has developed a wide range of traditional and new products but has not yet developed rational and sustainable production methods, so this sector is not very competitive. Production and livestock production are at high risk of diseases, weather and food costs. There are some shortcomings are described below: * Lack of financial policy support (1) No incentive for credit policy: biogas generator and relevant equipment require large investment capital which is over capacity of pig farm owner. Moreover, support by loan incentive policy does not exist to support the investment in biogas electricity development. (2) Tax of import and trading: biogas generator and other relevant equipment are not in the tax incentive list for importing machine and equipment. (3) There is not any support for trading price of biogas electricity: Cost for biogas electricity generation system is higher than cost from hydro power and thermal power (using coal), however, no-support policies for selling electricity generation from biogas at present. Without a price support mechanism, biogas electricity is unable to compete with other sources. * Barriers on technology (1) Biogas electricity generation technology and devices are new technology, which is required certain technology regulation for quality, (2) Specific knowledge and experiences from expert for operation and maintenance is required. (3) At present, quality of biogas electricity devices is low and the regulation for quality control is not established yet. Therefore, farm owner is confused and not so excited about biogas electricity technology.

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* Barrier on awareness and capacity The management system of electricity sector only focuses on national grid management activities at centralization scale. These activities include operation, exploitation and maintenance of grid and transformer station, electricity distribution, etc., from center to local, is done by a group of high experience and skill staff. However, the government agencies and their staff do not have experience with management of electricity generation from biogas at small scale. Moreover, technical capacity of human resource is not capable of operating and maintaining biogas electricity generator. The knowledge and interest of stakeholders for renewable energy, greenhouse gas and climate change is still very limited. Raising awareness and enhance interest of stakeholders need to be implemented in line with other measures. * Barrier on coordination and institution Biogas technology is an inter-sector program, including natural resources & environment, agriculture, industry sectors. However, an inter-sector coordinator body doesn’t exist yet and the cooperation and responsibility distribution between players are unclear. On the other hand, complicated registry procedure for the implementation of biogas program is a barrier for management and coordination activities. 3.3.3. Challenges and proposed solutions There have been three major environmental protection acts, in 1993,2005, and 2014. The 1993 policy contained the official Vietnamese definition of environmental protection: “Environmental protection as stipulated in this law includes activities aimed at preserving a healthy, clean and beautiful environment, improving the environment, ensuring ecological balance, preventing and overcoming adverse impacts of man and nature on the environment, making a rational and economical exploitation and utilization of natural resources.”(Law on Environmental Protection 1993). There was not a lot of policy that dealt with the livestock sector however it did prohibit the following: “Discharge of grease or oil, toxic chemicals, radioactive substances exceeding permissible limits, wastes, dead animals or plants, harmful and infective bacteria and viruses into water sources” (Law on Environmental Protection, 1993). The environmental act of 2005 was a continuation and it mainly deals with activities of environmental protection as well as the framework to develop environmental standards. It also mandates the creation of sector specific environmental laws in order to make all the sectors of the Vietnamese economy sustainable. Last but not the least, the Law on Environmental Protection 2014 (No. 55/2014/QH13 on June 23, 2014) stated that environmental protection in agriculture must be carried out on the basis of reasonable use of natural resources and maximizing waste reduction. The law also emphasized the need to conserve biodiversity, use natural resources in a reasonable and economical way, development of green energy and renewable energy, increase recycling, reuse and reduce waste to a minimum. Currently, the livestock farmers are not bound by any law covering their practices. There are no laws that deal with biogas or renewable energy, according to the biogas coordinator of ISPONRE various components of renewable energy is on the agenda of policy makers. A legal framework needs to be written in order to guide the farmers into healthier practices that minimize environmental damage. ISPONRE suggests including the households and local governments and communities (farmer unions, veteran society, woman union, etc.) in the planning stages of the policy. This will facilitate the implementation of policy and create a channel of communication between the policy makers and the affected citizens. The policy

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should specify the roles and responsibilities of animal husbandry households, organizations, and legal authorities for environmental protection in the livestock sector. Economic instruments can be used to encourage households to install biogas systems. The Vietnamese government is currently using an instrument help reduce water pollution. An environmental fee is applied for the livestock wastewater in Vietnam. It’s calculated on the composition of water, for example the water is tested for suspended particles, heave metals, and various water pollutants. The higher the pollutants, the higher the environmental fee will be. This encourages water pollution reduction. This same sort of fee can be implemented on animal waste discharged in the environment. The idea is to imitate the same strategy for the environmental fee, the more untreated waste is discharged the higher the environmental fee. The second and third instrument deals more directly with the initial investment required to implement a biogas system. A low interest rate on loans that deal with biogas and its technology can encourage farmers to utilize biogas. There are many local and international organizations that deal with micro-finance; in this case the organizations need to be organized in order to cover as much farmers as possible. The third instrument is to provide grants to encourage the farmers to install a system. The grants should also be included for research on various technological aspects of biogas, training courses, maintenance, etc. The final economic instrument is to grant farmers that use technology to treat the domestic animal waste (including biogas systems) with a scheme that reduces their taxes. According to the current Vietnamese regulations all business, individual, and organizations that are involved with some sort of production are responsible to pay taxes. Livestock farmers who use technology to treat domestic animal wastes, including using a biogas system from livestock waste will have a tax reduction. 4. Conclusions Biogas digestion is already addressing the health, energy and environmental challenges Vietnam faces while creating and supporting a sustainable commercial sector in the country. The use of alternative energy in the form of biogas has already contributed to reducing emissions of greenhouse gases. Its use has also contributed to mitigating climate change by reducing greenhouse gas emissions and sequestrating carbon in the form of conserving natural forest. It also offers several benefits, such as health, environmental, agricultural and economic benefits by reducing deforestation and carbon trading, which increase the adaptive capacity to counter climate change. Climate change adaptation will reduce vulnerability and inequality both within and among countries. The adaptation benefits go beyond the scope of each locality, community and country. Proactive climate change adaptation is Vietnam’s contribution to the global efforts to address climate change. The implementation of biogas technology will help Vietnam to achieve a 32.1% reduction compared to the target raised in Vietnam’s NDC for agriculture sector. In a few years, there will be a large market potential for domestic biogas in Vietnam. The country’s animal husbandry sector is vibrant, expanding and to a large extent managed in family farms. Farmers and the government are embracing solutions, including biogas plants, to reduce the sector’s environmental load. Alternatives that can replace inefficient conventional domestic fuel sources are welcome, as are opportunities to improve the nutrient management of the fields. To encourage people to construct biogas digesters for treating livestock waste, the government should develop policies and incentive mechanisms to support livestock farms as well as research centers to study modern biogas technologies

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appropriate to Vietnamese conditions on the basis of understanding factors affecting their decision on biogas adoption. Acknowledgement This material is based on work supported by the Asia-Pacific Network for Global Change Research (APN) under Grant No. CBA2018.FP05-Do. References 1. Abukhzam & Lee (2010) Production of organic manure in Bangladesh, Bangladesh Livestock Research Institute’s Report, Savar, Dhaka, Bangladesh. 2. Anderson BF. (2002) The Three Secrets of Wise Decision Making. Portland: Single Reef Press 3. Arthur, R., Baidoo, M.F., Antwi, E. (2011) Biogas as a potential renewable energy source: A Ghanaian case study. Renewable Energy, 36:1510–6. 4. Bajgain S, Shakya I (2005) The Nepal Biogas Support Program: a successful model of public private partnership for rural household energy supply. The Hague: the Netherlands Ministry of Foreign Affairs. Available at: www.snvworld.org/en/publications/biogassupport-programme-a-successful-model-of- public-private-partnership-for-rural/ (accessed 26 April 2012). 5. Bensah, E., Brew-Hammond, A. (2011) Biogas technology dissemination in Ghana: history, current status, future prospects, and policy significance. Int J Energy Environ,1(2),277-94. 6. Castel, V., de Haaan, C., Gerber, P., Rosales, M., Steinfeld, H., & Wassenaar, T. (2006) Livestock’s Long Shadow Environmental Issues and Options, [online]. Available at: ftp://ftp.fao.org/docrep/fao/010/A0701E/A0701E00.pdf (FAO). 7. Denton, F. (2005) Communities on the Margins of Development. UNPD West Africa 8. Dinh Xuan Tung et al. (2005) Pork and Poultry Market in Vietnam. Hanoi, Vietnam. National Institute of Animal Sciences. 9. DLP-MARD (2016) “Overview of Vietnam Livestock Sector Development Strategy and Restructuring Plan.” The International Workshop Vietnam Livestock Sector in Economic Integration: Experience Sharing- Future Orientation. Hanoi, October 27. DLP, MARD (Department of Livestock Production, Ministry of Agriculture and Rural Development) 10. DMHCC (2018) The third biennial updated report of Vietnam to the United Nations framework convention of climate change. Information Matters Transparency through Reporting. 11. Gitonga, S. (1997) Biogas promotion in Kenya: a review of experience. Nairobi: Intermediate Technology. 12. IDE (2011) Annual Biogas Users Survey 2010. Final report. Submitted to Infrastructure Development Company Limited (IDCOL), National Domestic Biogas and Manure Programme (NDBMP). Available at: www.snvworld.org/sites/www.snvworld.org/files/publications/biogas_user_survey_201 0_bangladesh_2011.pdf 13. Inayatullah J, Waqar A. (2018) Willingness of rural communities to adopt biogas systems in Pakistan: critical factors and policy implications. Renew Sustain Energy Rev;81: 3178–85 14. ISPONRE (2009) Strategy for Application and Expansion of Technology on Treatment of Domestic Animal Wastes to the Year 2020, Hanoi. Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE). 15. Kabir H, Yegbemey RN, Bauer S. (2013) Factor’s determinant of biogas adoption in Bangladesh. Renew Sustain Energy Rev; 28:881–9.

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Circular Economy Approach in Livestock Waste Management in Ba Vi District, Hanoi

Vo Huu Cong1, Tran Duc Vien1, Ho Thi Thuy Hang1, Pham Minh Hen2, Nguyen Hong Hanh3, Nguyen Duc Luong4, Tran Dang Anh5 1Faculty of Environment, Vietnam National University of Agriculture 2,3,4K62KHMTA, Faculty of Environment, Vietnam National University of Agriculture 5CH29KHMTB, Faculty of Environment, Vietnam National University of Agriculture

Abstract This research aims to evaluate the potential of waste to biomass via nutrient recovery as a component of circular economy. A case study on livestock waste – plant cultivation system was conducted in Minh Chau commune, Hanoi. The results show that the commune development strategies focus on livestock production combined with high yield plants such as king grass, banana, and maize. As of 2020, the livestock production shared by 4,228 cows, 7,290 pig; and number of poultries were 21,977. The livestock sector contributes to 114.2 tons of waste (manure) per day. Manures from livestock are used for biogas (35% of the total manure volume), as fertilizer for plant (61.06%), as feed stuff for earthworm (3.06%), and for fish (0.01%). Beside commercial feeds, raw feeding stuffs such as king grass, banana and maize were used as main supply with 92% of the total amount. King grass represents the highest amount for nitrogen source, roughly 8.09 tons/day (84.5%). This result indicates that nitrogen from waste uptake by king grass can be recycle via grass biomass. Phosphorus recovery presents small amount compare to that of nitrogen, however, the plants play a role as 60% phosphorus supply. This research focuses on recycle of wastes in term of nutrient flow, a further study should be conducted to quantify added values within recycle loops against time course change. Keywords: Circular economy, sustainable development goal, zero waste, environmental sustainability, waste utilization.

1. Introduction Circular economy and the Sustainable Development Goals (SDGs) have a close relationship in many aspects. Circular economy practices directly contribute to achieve 21 targets of SDGs and indirectly to an additional 28 targets (Ghosh, 2020). It was reported that targets in SDG6 (Clean water and sanitation), SDG7 (affordable and clean energy), SDG8 (Decent work and economic growth), SDG12 (Responsible consumption and production), and SDG15 (Life on land) have the strongest relationships with the circular economy practices to achieved by 2030 (Ghosh, 2020; United Nation, 2020). The design philosophy behind circular economy concept is to consider all materials involved in industrial and commercial processes to be nutrients, in which two main categories are the actors: (1) technical and (2) biological. Thus, technical and biological process could contributes as main components of circular economy paradigm (Cong & Hang, 2019; Geissdoerfer, Savaget, Bocken, & Hultink, 2017). The application of circular economy has been initiated an undergone different stage such as matured, progressive, and initiated CE-driven societies. Vietnam has paid great attention on circular economy as initiated CE-driven society (MONRE, 2020). Livestock sector and crops are important components of agriculture and contributes significantly country's economy. However, the number of cattle and poultry continues increasing every year has posed big problem for waste collection and disposal activities (An, Lan, Duong, Cong, & Huong

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Giang, 2020; Cong, Lam, et al., 2018). In contrast, agricultural waste has shown its beneficial uses as an energy source, chemical recycling agent, and chemical adsorbent (Cong, Uyen, Lam, & Cuong, 2018; Zhang, Li, Davies, & Liu, 2013). In recent years, a number of animal waste treatment models aimed at recovering resources from elimination process have been invested and obtained initial results, application of recirculation economy, agriculture zero waste. It is a closing loop production model, minimizing the amount of waste discharged from the output of one process as input to the other, bringing about economic and environmental benefits. Minh Chau commune is a unique commune located within the inning land of Red river. The economic development is strongly based on livestock and crop production. The amount of waste from animal husbandry is estimated at 114.2 tons per day. Many animal husbandry owners have actively controlled waste through reutilizing manure, urine, and water through biogas system or sources of plants. However, many households have not yet controlled waste discharge and discharged directly into the environment, flowing into the Red River. Therefore, it is necessary to control the amount of waste from animal husbandry activities and water environment protection in Minh Chau commune. In the context of circular economy, feces and water are can be used as sources for nutrient. Therefore, this research is to investigate the reused potential of livestock waste for plants as an involvement of closing loop to reduce wastes to environment. 2. Methods 2.1. Study site Minh Chau commune is selected as study site because it has special geographical characteristic. Its located on the accumulated land within the Red river without surrounding connection with other. Minh Chau is located about 5 km from the center of Ba Vi district, with a population of 6,517 people. Crop cultivation and animal husbandry are mainly contributed to household income. Figure 1: Location of Minh Chau Commune

Source: Google map, 2019 2.2. Data collection 2.2.1. Secondary data collection Overall assessment of situation animal husbandry and cultivation: articles from scientific journals, data published in recent statistical yearbook; natural characteristics, socio-economic development situation of Minh Chau commune and relevant information are collected from the People's Committee of Minh Chau commune.

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2.2.2. Primary data collection Structure questionnaire interview: Questionnaires are used to collect primary data about production situation, husbandry process, forms of waste management and treatment by farms. The households have quite similar characteristics in terms of culture, experience and natural and social conditions, so in this study, information-gathering interviews were conducted with 30 households raise cows. 2.2.3. Waste audit method Waste audit is conducted in 3 aspects: 1) Nutrition management (type of food, protein content, dietary fiber), water, energy and other components; 2) Waste management through forms of management such as use as fertilizer, worm farming, food for fish, direct application to crops, other activities and release to the environment; 3) Waste discharge. 2.2.4. Circular economy approach in waste management In this research, circular economy approach is considered in the way that effluent from livestock production could be reused as input via nutrient uptake for plant and vegetables, feeding stuffs for earth worms, and carbon sources for biogas generation. A different combination of households was survey to estimate the potential for waste reutilization and revenue could be obtained. 2.3. Data analysis Secondary data on crop land use was summarized and analyzed. Primary data were statistically analyzed as mean, standard deviation. 3. Results and discussions 3.1. Agricultural patterns 3.1.1. Cropland use The total cultivated area is fixed as 283.44 ha; however, cultivation performances of crops are estimated at 1.5 times. Annually, there are 8 types of crop types including maize (22ha), soy beans (5ha), black bean (6 ha), green bean (4 ha), vegetables (40 ha), chili (5.5ha), eggplant (8ha), banana (75ha), fruit (20 ha), king grass (239,66 ha). Figure 3 shows the percentages of crops of which king grass, banana and vegetables are dominant with more than 83.4% of the total cop’s area. If calculating direct food for cows, maize and king grass contribute about 24.99 million VND and 69.4 million VND per hectare. In term of income contribution, banana and fruit play highest contribution with 125-128 million VND per hectare. On average, farmers can obtain about 85.3 million VND per hectare. Figure 2: Distribution of crops in Minh Chau commune 5.2% 3.5% Maize Beans 9.4% 1.3% Vegetables 1.9% Chilli Egg plant 56.4% 17.6% Banana Fruit King grass 4.7% Source: Minh Chau commune People Committee, 2020.

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3.1.2. Livestock production According to the People committee of Minh Chau, the strategies for livestock production have been addressed on high productivity cows and dairy cows. As of June 2020, there are a total of 4,228 cows, of which there are 2,652 breeding cows, 356 male calves, 1,220 dairy cows, and 556 dairy cows. On average, each cow delivers about 18 kg of milk per day. The total number of pigs is 7,290 heads, of which there are 1,046 sowing pigs and 6,232 pigs for meat. Poultry has 21,977 and 2,345 dogs (Table 1). It was reported that there are 452 households raising cows with the scale of households and farms ranging from 3-27 heads/household. The barn structures composed of solid and semi- solid accounts for 96.7%, other households use simple cages with soil floor and straw roof. The average barn area is about 78.05m2. Households with large breeding facilities are mainly dairy farmers, each cow has an average area of 8.6 m2/cow, beef cattle account for about 7.1 m2/head. Recently, the animal husbandry activities have shift to raising cattle for meat or dairy farming. The average cow raising period is from 18 months to 20 months. Forage consists of king grass, banana stalks, throne stems collected from field whereas commercial feeds include corn bran and milk-fortified pellets. Table 1: Number of livestock as of June 2020 Type of livestock Total number Percentage (%) Cows 4.228 Breeding cows 2.652 62.7 Male calves 356 8.40 Dairy cows 1.220 28.9 Pigs 7.290 Sows 1.046 14 Pork 6.232 85 Poultry 21.977 Dog 2.345 Source: Minh Chau commune People Committee, 2020. 3.2. Cow breeding process The dairy cow raising process is divided into 3 phases. Time of feeding until the first movement of milk in 24 - 36 months. At different stages, farmer feed the cow based on nutrient requirements. The calve period of 6 months is the stage of calving that has been completely weaned and fed with grass and bran. The amount of food given to them will change and increase gradually with their growth. After the cow was 17 months old. Cows begin an 80-day period in preparation for pregnancy. Cows need a special diet to ensure the milk quality and reproductive health of the next pregnant period. The next stage is pregnancy. The pregant period of cow last for 285 days. After the calves was born 75 days, cows continue to be inseminated and continue the reproductive cycle. During the life of a dairy cow goes through 7-8 pregnancies.

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Figure 3: Process flow diagram of beef cattle -Water: -Water: -Water: -Water: 67,500L/head 20000L/head 71,250L/hea 18,750L/hea -Crude food: -Crude food: d d 5940 kg/head 1600 kg/head -Crude food: -Crude food: -Corn bran: -Corn bran: 240 8,500kg/hea 2.250kg/hea 900 kg/head kg/head d d -Corn bran: -Corn bran: 1,140kg/hea 300 kg/head Calves Pre-pregnancy dPregnancy Lactation 495 days 80 days 285 days period

-Manure: 2,480kg/head -Manure: 880 kg/head -Manure: 3,700kg/head -Manure: 1,200 -Urine: 2,350 L/head -Urine: 540L/head -Urine: 3,100L/head kg/head -Cage wash water: -Cage wash water: 2,820 -Cage wash water: -Urine: 1,150 L/head 49,500 L/head L/head 140,500 L/head -Cage wash water: 44,000L/head

Cow return new breeding cycles

Source: Household survey, 2020. Solid waste, wastewater and emissions are problems that arise during the entire production process on farms. On average, an adult beef cow will produce about 16 kg manure/day, the amount of wastewater including barn washing water and urine is about 580 liters/day (Survey data, 2020). Emissions are also a concern in cattle production. This is one of the major sources of CH4 emissions and causes an unpleasant odor to those around you, especially in cows with CH4 emissions in an adult cow of about 200 liters per day. Although a part of CH4 has been collected and used, the remaining gas is not further treated but discharged directly to the environment, causing a significant impact on the environment. 3.3. Waste collection and discharge from animal husbandry Figure 4 shows the main waste collection from livestock activities. According to the survey data, manures from livestock are used for biogas (35% of the total manure volume), as fertilizer for plant (61.06%), as feed stuff for earthworm (3.06%), and for fish (0.01%). Households initiated the biogas digesters with an average volume of 10-15 m3. Calculated on the scale of 60 households interviewed with average biogas volume per 0.3 m3/head. But on a specific scale, there are times when people raise more, biogas tank system has not been able to handle it, so it has to be discharged directly into the environment. Most farmers do not use fresh fertilizer to plant but only use wastewater after biogas to fertilize crops. Pig manure contains a lot of eggs, worms, flukes, pathogenic microorganisms without treatment, which pollute the soil and cause disease to the plants themselves. Most households do not fully handle livestock wastes. The main reason is due to the lack of investment in wastewater treatment facilities and the inadequate attention of the livestock owners themselves. Waste discharged directly into canals contaminates surface water, groundwater, stinking, disease germs spread.

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Figure 4: Situation of waste collection in Minh Chau commune 3.06% 0.01%

Biogas

35.87% Fertilizer for plant 61.06% Food for earth worm

Feed for fish

Source: Household survey, 2020. 3.3.1. Nitrogen release from cow Total nitrogen from cattle raising process in Minh Chau commune is shown in Table 2. The amount of nitrogen entering the breeding system is calculated from roughage, corn bran and water, estimated to 3496 tons/year. The amount of nitrogen discharged from cow farming is 865.92 tons/year. The waste disposal rate into the environment based on input is 7.79%. The nitrogen circulation system in the cow raising process is very important to minimize the impact on the environment. Farmers use fertilizer fertilizers directly for farming including planting grasses and crops, worms and biogas production. This amount is mainly discharged from the biogas system. Table 2: Estimation of Nitrogen release from cow production Emission Amount of N No. Type of waste Amount of N (tons/day) tons/day tons/year 1 Manure 67.55 2.96% 2.00 729.79 2 Urine 47.84 1.99g/L 0.10 34.75 3 Cage wash water 845.52 328.5mg/L 0.29 101.38 Total 2.39 865.92 Source: Household survey, 2020. 3.3.2. Phosphorus release from cow The amount of phosphorus entering the system is calculated according to the sources of the nitrogen stream. The total amount of P entering the system is 114.84 tons/year. Cattle raising produces 101.42 tons of phosphorus/year. Phosphorus is an essential nutrient for plants. However, when released into the environment in high concentrations, the plant cannot absorb all, P will accumulate in the soil, when washed away into the water sources causing eutrophication in water, causing imbalance in the system. Calculation results show that the amount of phosphorus accumulated in the waste circulation system is carried out by crops including grasses, crops and worms. The amount of waste released into the environment is mainly from the source after the biogas tank, corresponding to 24.25 tons/year. Table 3: Estimation of Phosphorus release from cow production Emission Amount Amount of P No. Type of waste (1 day) of P Ton/day Ton/year 1 Manure 67.55 0.36% 0.243 88.76 2 Urine 47.84 0.23g/L 0.011 4.02 3 Cage wash water 845.52 28mg/L 0.024 8.64 Total 0.274 101.42 Source: Household survey, 2020.

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3.4. Nutrient recovery Figure 5 demonstrates a possible paradigm of circular economy in Minh Chau commune with two typical components livestock – plants via nutrient cycles. Livestock such as cows, release large amount of solid waste and water contain high nutrients (nitrogen and phosphorus) becoming input as nutrient uptake for crops, fruits and king grass. A circular economy seeks to retain the added value of products for as long as possible by productively reusing resources when a product has reached the end of its life (Economic Affairs, 2016). In this research, added value was observed during the application of earth worm for manure valorization. The output products contain biomass of earth worms and fertilizer. A field survey shows that earth worm farming could gain a benefit of 35-40 million VND per month by selling earth worm while fertilizer can be used for vegetables within the commune (Sung A Ki, 2019). However, the amount of manure used for earth worm cultivation occupied only 3.06% of the total manure in the commune (Fig. 4). Figure 5: Livestock waste recovery as nutrient flow

Source: Household survey, 2020. Table 4 shows the feeding components and amount for the total number of cows in Minh Chau commune. Beside commercial feeds, raw feeding stuffs such as king grass, banana and maizes were used as main supply with 92% of the total amount. King grass represents the highest amount for nitrogen source, roughly 8.09 tons/day (84.5%). This result indicates that nitrogen from waste uptake by king grass can be recycle via grass biomass. Phosphorus recovery presents small amount compare to that of nitrogen, however, the plants play a role as 60% phosphorus supply. Table 4. Nutrient as Nitrogen and Phosphorus recovery as feeding stuffs Total Estimated Nitrogen Estimated Phosphorus Feedings consumption Nitrogen equivalent Phosphorus equivalent (tons/day) (%w/w) (tons/day) (%w/w) (tons/day) King grass 89.90 9.0% 8.09 0.07% 0.063 Banana 21.71 0.6% 0.13 0.03% 0.007 Maize 18.54 1.7% 0.32 0.40% 0.074 Maize (with corn) 4.43 8.0% 0.35 0.70% 0.031 Maize bran 9.09 3.4% 0.31 1.10% 0.100 Commercial bran 2.36 16.0% 0.38 0.90% 0.021 Total 146.03 9.58 0.296 Source: Household survey, 2019.

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4. Conclusion Minh Chau commune has a total area of 563.33 ha, of which agricultural land account for 283ha (50.2%). It has good conditions for agricultural cultivation and livestock production. As of 2020, the livestock production shared by 4,228 cows, 7,290 pig; and number of poultries were 21,977. The livestock sector contributes to 114.2 tons of waste (manure) per day. Manures from livestock are used for biogas (35% of the total manure volume), as fertilizer for plant (61.06%), as feed stuff for earthworm (3.06%), and for fish (0.01%). Beside commercial feeds, raw feeding stuffs such as king grass, banana and maize were used as main supply with 92% of the total amount. King grass represents the highest amount for nitrogen source, roughly 8.09 tons/day (84.5%). This result indicates that nitrogen from waste uptake by king grass can be recycle via grass biomass. Phosphorus recovery presents small amount compare to that of nitrogen, however, the plants play a role as 60% phosphorus supply. This research focuses on recycle of wastes in term of nutrient flow, a further study should be conducted to quantify added values within recycle loops against time course change. Also, the circular economy approach has shown a potential to reduce waste discharge into environment while generate economical values for farmers. Therefore, institutional arrangement should be addressed to help more farmers involving in this model. Acknowledgements This work is funded by Vietnam National University of Agriculture (Grant number: T2019-04-20). References 1. An, N. T., Lan, N. P., Duong, N. H., Cong, V. H., & Huong Giang, N. T. (2020). Environmental Pressure from Pig Farming to Surface Water Quality Management in Yen Dung District Bac Giang Province. VNU Journal of Science: Earth and Environmental Sciences, 36(1), 46-56. doi:10.25073/2588-1094/vnuees.4552 2. Cong, V. H., & Hang, P. T. (2019). Waste Audit of Cattle Production in Minh Chau Commune, Ba Vi District, Hanoi. TNU Journal of Science and Technology, 207(14), 129 - 134. 3. Cong, V. H., Lam, N. T., Vân, Đ. T. H., Sơn, C. T., Giang, N. T. H., & Ha, N. T. B. (2018). Environmental Pollution and Potential Waste Management in Livestock Production. Science Technology Journal of Agrculture and Rural Developement, 12, 22-31. 4. Cong, V. H., Uyen, L. T. T., Lam, N. T., & Cuong, P. V. (2018). Agricultural Residues and Field Wastes Generation in Cu Yen Commune, Luong Son District, Hoa Binh Province. TNU Journal of Science and Technology, 187(11), 25-20. 5. Economic Affairs, E. E. A., Europe. (2016). The Circular Economy Paradigm. Retrieved from http://www.europeanpublicaffairs.eu/the-circular-economy-paradigm/ 6. Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757- 768. doi:10.1016/j.jclepro.2016.12.048 7. Ghosh, S. K. (2020). Circular Economy: Global Perspective. Singapore: Springer Nature. 8. MONRE. (2020). Selecting circular economy to create green future [Press release]. Retrieved from http://www.monre.gov.vn/Pages/lua-chon-kinh-te-tuan-hoan-de-kien- tao-tuong-lai-xanh.aspx 9. Sung A Ki. (2019). A Research on Earth Worm Cultivation for Cow Manure treatment in Minh Chau commune, Ba Vi, Hanoi. (Bachelor), Vietnam National University of Agriculture. 10. United Nation. (2020). About the Sustainable Development Goals. Retrieved from https://www.un.org/sustainabledevelopment/sustainable-development-goals/ 11. Zhang, Z., Li, C., Davies, E. G. R., & Liu, Y. (2013). Agricultural Waste. Water Environment Research, 85(10), 1377-1451. doi:10.2175/106143013x13698672322345

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Sustainable Marketing Concept: Framework and Application for Business Sustainable Development in Vietnam

Tran Thuy Nhung Faculty of Management, University of Law HCMC Vietnam

Abstract The article focuses on analyzing the relationship between the country's perspectives on sustainable development and corporate sustainability marketing strategies. Sustainable development with three main pillars including economy - society - environment is gaining massive popularity over several years and become a goal not only in Vietnamese economy development strategy but also in the mission checklist of most countries in the world, meanwhile, the marketing concept is a critical process of business. The reconciliation between the values and the interests of the organization with the concepts, norms and community benefits is a real issue in the current context. The purpose of the research is to generalize sustainability from a marketing perspective as well as to provide corresponding criteria by which built a model framework that helps to identify and evaluate the effectiveness of sustainable development in operations. In which, the connection between corporate values and customer expectations with community benefits is the key basis. However, the implementation method is based on macro analysis, and the sustainability factors are fundamental concepts, so it is not possible to fully present and analyze the actual risks as well as no specific solution, and controversy can be raised if there is disagreement on the concept of sustainable value. Keywords: Business value, marketing concept, Corporate Social Responsibility, sustainable marketing

1. Introduction 1.1. Statement of the problem Marketing practices associated with the formation of the market system as well as the production and consumption of goods has been known for millennia, however, the demand for research and dissemination of the term “marketing” has just started popular in the early years of the twentieth century. Therefore, the history of marketing can be divided into two distinct parts: the first is the formation of marketing activities in human life, and the second is the evolution of the academic research process, or called as the history of marketing thought. Accordingly, the marketing concept is a term that explains the activities of understanding, analyzing customer needs and the decision-making and implementation process to satisfy those needs better than competitors (Drucker, 1954). Throughout history, the marketing philosophy has been formed and gone through various stages with gradual changes, which are named as four periods including: production orientation period (influenced by the Industrial Revolution), sale-orientation period (mercantilism), customer-orientation period and social orientation period or marketing internationalization (globalization), etc. This shows that historical changes always place a vital impact on the connection of the business values and interests with the practical needs of the people and the community. However, how to take into account these fluctuations while balancing the business objectives at benefit is a challenge for businesses. Furthermore, the opportunity cost of scarifying environmental pollution for profit optimization

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or the trade-off between the economic development and social security remain a dilemma in policy-making. On the other hand, even at worldwide academic philosophy level, the concept of corporation sustainable development which is often considered through a set of indicators related to social responsibility has been debatable and at a different era of streams. This also leads to difficulties in defining requirements of sustainable development. Therefore, studying of the sustainable development strategies, especially sustainable marketing and communication strategies, is a critical task at present. It raises basic questions to form ideas for this presentation: "Sustainable marketing perspective: Framework and Application for businesses sustainable development in Vietnam". Considering the influential scope of the factors, the social responsibility which plays as representative of sustainable development from the business perspective, is studied based on two formed concepts including the corporation internal objectives to improve its image and branding, and the external requirement from governments or civilian community. Accordingly, at each different perspective, the correlation relationship between the marketing strategy and corporate social responsibility will have a certain range of differences. With limited resources in the ability to exploit the detail and specificity of the concept of sustainable development, and its content cannot be encapsulated in the scope of this essay, so this article as below only focusing on social responsibility aspect at the socio-political level, depending on the legitimate sanctions and pressure of the public. 1.2. Literature Review and Research Gaps The relationship between marketing perspectives and sustainable development, especially through social responsibility, even not experimentally comprehensive study, have been presented in a range of theoretical framework through many conceptual researches as well as meta-analysis, such as sustainable marketing at the level of company (Praude, Bormane, 2008), sustainable consumption model (Seretny, 2012), sustainable management for consumer satisfaction(Noo-urai, Jaroenwisan, 2016), sustainable socio-economic philosophy for marketing activities (Rudawska, 2017), etc. These researches mainly developed the marketing perspective from the business administration approach including value chain (Obermiller, Burke, Atwood, 2008), customer decision-making process (Pantelic, Sakal, Zehetner, 2016), corporate value (Trivedi, Goswami, 2018) or market trend (Mitchell, Wooliscroft, Higham, 2010). Although these facilities were closely aligned with the scope of the marketing concepts, they did not offer a comprehensive reflection in the aspects of sustainable development from a practical outlook, and they have not yet connected the needs of the country on sustainable development with the marketing perspective that businesses are operating. On the other hand, a survey conducted by the World Bank in 2003 partly demonstrated the important role of sustainable development, especially the implementation of social responsibility in market strategy and positioning of competition of multinational enterprises. As explained by the World Bank, these businesses performed social responsibilities through a course of actions such as improving the working environment or promoting labor welfare system, etc. mainly in order to address the community pressures and to build up brand trust in different countries and regions. In addition, several aspects of employees’ wage schemes and working conditions in certain developing countries have been assessed to be directly related to the effectiveness of social responsibility (Brown, 2004). Besides, based on a number of studies by Frost and Ho (2005), Levy (2007) and Nyankweli model (2012), the positive correlation between revenue and capital growth also indirectly affected the effectiveness of poverty

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reduction indirectly in China, Mexico and African countries. However, not all researches’ findings showed the positive impact of businesses on sustainable development. In fact, there were articles assessing environmental pollution and increasing carbon dioxide emissions which were directly related to the revenue growth of manufacturing enterprises, especially businesses with foreign investment (Gonzalez-Perez, 2011). Apparently, according to the pyramid of social responsibility (Carroll, 1991), economic responsibility is the fundamental obligation of every firm, hence the enterprise tends to achieve business scale at the community and living environment cost within the legal sphere. At the same time, the difference in the perception of the causal relationship between marketing strategy and sustainable development is due to both different research perspectives and the national-cultural conceptions. Accordingly, countries that aim to achieve outstanding economic growth, usually accept the trade-offs between natural environment and man-made, tend to consider economic development such as increasing average income, and maximizing exploitation natural resources as first priority rather than the mission of protecting the environment and realizing the social equality (Fang-Mei Tai, Shu- Hao Chuang, 2014). Exact same situation was shared in Vietnam in last several years. Therefore, this study will conduct a theoretical overview to build a model framework for the marketing concept based on all three aspects: environmental, social and economic in the current context of legal basis in Vietnam. 1.3. Synopsis of application situation in practice of Sustainable Marketing in Vietnam A review of the application of sustainable marketing perspective in Vietnam was essentially an assessment of the ability of firms to fulfill their social responsibility in all states, joint ventures, private and Foreign Development Investment (FDI) sectors (Téllez, 2016). Although the concept of social responsibility was only applicable in the application of social responsibility theory initiated by E. Freeman (1984), there was a lack of studies that have concluded the effects of social responsibility. In general, social responsibility associated with the above three basic elements of sustainable development could be considered as the content of sustainable development. Therefore, the concept of corporate social responsibility is assessed through the interactive relationship between related objects and the enterprise's operations which is consistent with the fact that when businesses satisfy their stakeholders fairly and thoroughly, they indeed not only promote the business efficiency in the market, but also achieve the maximum local operational capacity in the context of human resources, the government mechanism and the public. The above social responsibility basis was affirmed by Bredgaard (2003): Corporate Social Responsibility (CSR) as an important element of the political decision, ensuring legal support for stakeholders under many different aspects and helping to optimize public benefits. Because of the image of public relations and political theory (Edwards, 2004), corporate social responsibility (CSR) was also employed as a measurement criterion for the effectiveness of the sustainable development structure. Furthermore, CSR was proved to be an inevitable consequence of social inequality due to globalization (Blowfield, 2005; Gonzalez- Perez & McDonough, 2007). In fact, in terms of internal marketing, most of employees in Vietnam enterprises have specific labor contracts with transparent terms, which are reviewed and evaluated by the Labor Confederation. Although some businesses also added incentive appendices to support their workforces some lawful alternative provisions such as break time (Nichirin Vietnam), positive bonus (Viet Pan Pacific) or pregnancy priority leave, this practices are optional regulations in some specific FDI enterprises and not yet a universal model or compulsorily-applied

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dissemination. Even in some areas of the country, the disputes, strikes, social insurance debt and under age of 35 unemployment ratio, etc. impaired the image of CSR as well as put great pressure on social security. Nevertheless, many businesses consider social responsibility as a public relation (PR) tool or a marketing strategy to create company image, so it does not pay enough attention to internal welfare system that indirectly reduce labor capacity and present as formal public activities, or a set of short-term events. On the other hand, marketing not only covers the mass media in terms of business management plans and brand image, but also ensures the orientation of the marketing mix closely with the needs of customers, reinforcing public confidence. Accordingly, the environmental factor of sustainable development through the concept of green marketing is seen growing on corporation. Enterprises are more active in producing goods and merchandise derived from eco- friendly components, limiting the use of non-recycled packaging, even investing in environmental protection projects promoting the community awareness and taking advantage of the public support. However, the number of these enterprises was minority and they were facing the constraint in financial resources. Meanwhile, since 2006, Vietnam has implemented a comprehensive decentralization, promoting localities to actively attract FDI for economic development, leading to loosen the environmental regulations and incentives beyond the framework. The lack of mechanism of control and the management weakness contributed to boost quantity of business rather than qualified ones. As such, most of them were with outdated technology (only 6% of enterprises with advanced technology), mainly focused on the assembly line, did not comply with the regulations on environmental protection or indiscriminate exploitation and over-consuming of resources, causing serious harm to the ecosystem and biodiversity in Vietnam. In particular, the environmental pollution of the FDI sector had become alarming as FDI tends to move into industries at high risk of pollution (according to a 2015 survey by the Center for People and Nature. (Vietnam Union of Science and Technology Associations), there are 15 large-scale projects in Nam Dinh Province focusing on the textile and dyeing sector), or detecting illegal discharges by a series of FDI enterprises such as Vedan Company in Dong Nai Province, Miwon Company in Phu Tho Province, Tung Kuang in Hai Duong Province, Taiwan Fomosa in Ha Tinh Province, etc. The root cause of this situation is due to the lack of Vietnamese environmental regulations and the limitations of technology provisions. Although Vietnamese legal framework based on the international standards, the appraisal and post-implementation review appeared to be sketchy and bureaucratic, allowing enterprises to deceive, employing outdated production lines, exploiting devastating resources, destroying ecosystems to maximize profits and being ready to violate again and again, causing serious social and environmental consequences. One of the corporate marketing concept disadvantages is itself when it is becoming an obstacle to the community in assessing the effectiveness of social responsibility. It started with an enterprise, which operated the production base mainly consumed the endangered-environment resources such as coal, oil, textile, etc., boycotted by social media for polluting environment or evading social responsibility due to their unconscious handling process. It later tended to employ “green-washing” tools to regain credibility and distract public opinion about the nature and method of production of the business (Banerjee, 2007). The differentiation between corporate interests and social responsibility from the green-marketing concept has always been questioned. The objective of the green-washing tool is to give the customer the feeling that the organization is taking the necessary steps to manage the ecosystem responsibility although it is

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impermanent and unsustainable. In Vietnam, industrial production enterprises such as Minexco (Khanh Hoa Province), Sika (Dong Nai Province), Dielac Dairy Factory, etc. are investing tens of billions of VND in building waste treatment zones, using eco-friendly and advanced production technology to address the pollution issues, as a result, being out of the blacklist local pollution and to regain brand creditability in the public. 2. Theoretical Framework and Methodology 2.1. Related Concepts 2.1.1. Overview of Marketing Concepts The developmental process of marketing concept has gone through a lot of stages since it was initially researched until now. In theory, the evolutionary history of the marketing point of view may have many ways to consider dividing the orientation, but it can mainly be divided into three main phrases. The first one is the development from a practical phenomenon to becoming a science of the marketing concept. The second is the transformation of the marketing concept from the traditional tone to the modern one, and finally the progression from the production perspective to the social marketing philosophy (Nguyen Ngoc Tra, 2012). The three study directions on the marketing concepts may have many differences in goals and methods however they did go through same 7 main phases, including: Simple Trade Era, Production Era, Sales Era, Marketing Era, the age of international marketing (Global Era), the age of marketing with social responsibility (Social Responsibility Era) and Relationship Marketing Era. Although there are still many contradictions with other methodology staging, a general deep-diving into this division also helps to gain a further specific insight in terms of critical thinking movement, application methods and view of marketing throughout the periods, indeed yet in a continuous, uninterrupted management view of the economic or business cycle of the business. Marketing perspectives normally were handed down however there are also times that they exist and develop together in parallel context (such as the Global Era - the social responsibility Era). Therefore, the arrangement of the stages only needs to follow 3 basic directions, including as below:  Marketing is an economic process: Economic process is a process that involves activities related to solving four main questions of the economy: what goods are produced, how to using the resources in the production process, who is the final recipient of the good and when is it necessary to produce it. Answering these four questions is essential for the economy to function well.  Marketing is a management process (Stoner, Cliffs, 1978): The management process is a process of planning, organizing, leading and controlling the activities of the members of the organization and employing all other resources of the organization to achieve its goals.  Marketing is a management philosophy (Chewning et al., 2013): A management philosophy is a set of reasonable principles that serves as a basis to guide and control or carry out a business activity, to be informed by the leaders of the business when outlining the directions that the business should develop, paying special attention to the relationship between managers and employees. Many of the business systems' daily functioning systems mainly develop practical interpersonal interactions. The management philosophy is often abstract and more like a statement of a mission than a business model. 2.1.2. Norms of Sustainable Development The theoretical basis of the article is based on the concept of three basic elements of sustainable development, which were developed and published during the 2002 Earth Summit on Environment and Development in Johannesburg (South Africa) with the concept of

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"Sustainable development is a development process that combines closely, rationally and harmoniously between three aspects of development, including: economic development, social development and environmental protection”. Specifically:  Economic development in sustainable development is the concept of fast, safe, stable, quality and long-term growth expressed through the efficient allocation of resources and building a complete and equal economic structure in accordance with market laws, ensuring prosperity for all participants, without harming the ecosystem, contributing to the implementation of responsibility to the community. A sustainable economy must satisfy 3 factors: high and stable GDP growth rate, per capita GDP; appropriate GDP structure and effective growth.  Social development is a factor to ensure social equity, eliminate inequalities in income, gender, geography, and achieve efficiency in resource allocation for health, education and cultural activities, etc. Some social development indicators include income inequality coefficient (Gini), subprime poverty rate, gender income gap index (Gender Gap).  Environmentally sustainable development is to minimize the negative impacts of economic activities on the environment and natural environment, ensure the rational consumption of natural resources that does not exceed the ecosystem threshold, and help to protect biodiversity and improve living environment. 2.2. Methods Research methods mainly used the papers are historical research methods and theoretical research methods, in which theoretical research methods include methods of synthesis and theoretical modeling. Specifically, the article uses research synthesis method by summarizing reviews and narrative content. Research papers are referenced, cited and compiled from four electronic databases, including Emerald Management and Science Direct, Google Scholar and MDPI. Table 1. The inclusion and exclusion criteria for literature selection Included factors Deluded factors Language: English / Vietnamese Not related to sustainable development Open Access, Digital Library Incomplete research Then, conducting a secondary screening by evaluating the content of the summary and title of the selected articles is to provide the answer to the research objective. From there, the article formed a sustainable marketing perspective through the interpretation of the theoretical framework. In this presentation, there are 20 research papers employed as the theoretical basis of analysis. In addition, a number of documents related to national sustainable development and marketing books were consulted. Finally, the article built a theoretical model of the sustainable marketing perspective so that the model can contain information about the attributes, structure, function, and the operating mechanism. 3. Results and Discussions In order to build a theoretical basis for the sustainable marketing perspective, it is initially required to go through the comprehensive marketing perspective theory under 5 angles: Production - Product - Sales - Marketing - Society (Kotler, 2006). These five angles are essentially strategic management forms of sustainable production and business’s sustainable consumption.

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Accordingly, the aspect of sustainable production is the manufacturing product with a reasonable production process that balances between economic benefits and costs while helping to minimize negative impacts on the environment and conserve energy and natural resources (Molamohamadi & Ismail, 2013). Sustainable production also improves the safety of internal employees and the related public parties. These targets can only be realized by effectively employing and efficiently applying the high advanced technology to the manufacturing process and distribution system. However, products only reach its suitable life cycle when customers understand how to effectively use them that required businesses to guide and provide corresponding after-sales services. The efficiency of sustainable production was measured by the firm’s technological level (Rosen & Kishaw, 2012). Technological formats related to environment and productions were governed by three factors illustrated as follows: Figure 1: Sustainable manufacturing levels

Source: Rosen & Kishaw (2012), Kishawy et al (2018) Introduced as one of the three factors affecting production, product has the essence of the crystallization of labor, so it reflects the level as well as the productivity of the human resource. A product, from a sustainable manufacturing perspective, focuses on a 6R approach including recycling, re-design, reuse, repackaging, re-production and recirculation since it was produced through a single complete product life cycle which could be repeated (Kishawy et al, 2018). A sustainable product will undergo three steps of innovation including research, development and commercialization. This process ensures that the product can meet specific standards of safety, quality, input material quota, etc. furthermore, promptly adjust the identification system (packaging, packaging method) for the optimal product life cycle prior to distribution process. However, this exercise has its limitations. Specifically, the improvements that are beneficial for the environment at a certain point of production can harm the business or the public at any stage of the product life cycle (Roy, 2000). So many companies have adopted the target of improving 'ecological efficiency', offering new or improved products that have similar performance to previous designs but with less impact on the environment within their life cycles. At the same time, sustainability of the product was divided into 3 levels so that each business can apply accordingly, in which, the sustainability level 3.0 brings social value instead of the pure product value (Dyllick & Rost, 2017). Meanwhile, there was a point of view that sustainable consumption should focus on adjusting consumer behavior rather than improving economic - technological factors (Holt, 2012). This concept comes from the perception that all habits of buying and consuming goods and services are oriented by consumerism - a set of living values formed on cultural transformation and inheritance as well as the environmental awareness. Therefore, in order to build the sustainable consumption concept, enterprises must choose a unified and stable sustainable value system and connect them to

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the progressive ecosystem of society, ensuring this structure both bring the ethical values to the community and keep up with the comprehensive transformation of the superstructure. On the other hand, customer behavior and expectations were able to directly affect a firm's market strategy (Trivedi et al, 2018), which in turn was related to the formation and expansion of the marketing strategies’ sustainability (Emery, 2012). Through communication activities, businesses have been able to orient their customers’ consumption, increase their awareness (Saha & Kuruppuge, 2016), as well as influence customer expectations (Kotler, 2011). If this level of expectation is satisfied, the brand satisfaction ratio will increase, enhance business competitive advantage and nurture the long-term relationships between businesses and customers. Therefore, businesses would only spread the sustainable marketing concept when public opinion showed interest in sustainability issues. Simultaneously, whether social awareness has aligned with the changes of the environment or not that was correlated with the orientation and impact of the Government (Johnstone & Hooper, 2015). According to Saha, & Kuruppuge (2016), the sustainable purchasing model of customers (Belz & Pettie, 2009) has changed from initially purchasing based on the perception of sustainable products (figure into niche markets for green products) to comprehensively paying attention on a full product set (the sustainability of business is desired in many ways). Theoretically, both the perspectives on sustainable production and sustainable consumption are summarized in the business green marketing concept. However, the view of green marketing is limited to the environmental aspect context, yet ignoring the social security aspect (Kumar et al, 2012). If the societal marketing concept was implemented, corporations could leverage to balance profit - welfare - environmental objectives, but influence customer behavior for sustainable consumption. To change the customers’ social perceptions and to promote sustainable consumer behavior, businesses have to be thoroughly keen on adopting the social marketing perspective. Social Marketing strategies are generally correlated with macro marketing factors while popular social marketing programs are regularly associated with specific issues (Belz & Peattie, 2012; Dinan & Sargeant, 2000). Hence, businesses easily approach the public to accommodate and disseminate the environmental awareness or green products, etc. In general, the sustainable marketing perspective should originate from the national sustainable point of view then adjusting in accordance with the vision, size and orientation of the enterprise in each phase: Figure 2: Evolution of sustainable marketing concept

Source: Designed by author

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From the perspective of sustainable production and consumption, it can be seen that when businesses desire to implement marketing activities, they are required to ensure the harmoniously deriving from both the green design and customers’ social awareness orientation, at the same time, being subjects to the public observation and under the national legal framework. Accordingly, the model of the sustainability marketing perspective can be illustrated as follows: Figure 3: Framework of Sustainable Marketing Concept

Source: Designed by author With this model, the enterprise is always in the national directive in terms of the sustainable development route. If the country prioritizes the economic development, businesses would rarely ignore the production profit base, at the same time, public awareness would be favor to the benefit and cost rather than eco-friendly product (DeVinney et al, 2010). On the contrary, when customers' awareness of sustainability spread, the Government will have specific directions on pollution treatment, environmental protection, social welfare improvement and corporation compliance. In order to effectively achieve mass media, businesses ought to add a sustainable production process to their business operations in a timely manner. This concept could be partially implemented at the early stage, the gradually in phases, however required to be eventually comprehensively completed. The implementation scope was not only regarding marketing events but also in terms of non-profit social public activities. Customers’ purchasing behavior and brand loyalty reflect the level of satisfaction with the business sustainable status. This is a bilateral relationship between the business marketing strategy and the customer perception that was different with the relationship between the business and the Government or the Government and the public because they are independent, with certain lag in exchanging information and planning response arrangement. Adopting the sustainable marketing perspective model, enterprises are capable to completely deploy the innovation in all 3 aspects: Product - Process - Experiment through research and technology development as well as realizing the 6R rule of the sustainable product, provide by the business, through the appropriate campaign. Experimental activities will be the foundation for sustainable marketing activities to be in mass media. On the contrary, marketing activities also help to gather public feedbacks on the true value of products which played as prepared material reproduction process and re-experimentation activities. Orientation education would be conducted within an internal environment with the principle that all business personnel are deemed to well-

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understand and be familiar with sustainable products usage, and it should be implemented and operated under a sustainable process before gaining sustainable values, a brand value. These would help to assure the integrity of sustainable development as well as limit the breakdown of a link in the sustainable product supply chain. If technological innovations that are activated in the sustainable production are normally in-house built, it will be a significant competitive advantage for businesses, helping to reduce costs as well as increase the efficiency of the sustainable development. In particular, the fundamental activities of the sustainability marketing perspective can be over-drawn with a diagram: Figure 4: Activities and Strategies in Sustainable Marketing for Businesses

Source: Designed by author 4. Conclusion The objective of the presentation is to build a generalized model representing the perspectives of sustainable marketing and to assure that business communication and marketing activities are in line with both national and international sustainable development standards. The incorporation of each part of a comprehensive marketing perspective provides businesses stable operations, balanced budget - cost, environmental efficiency - business benefits. At the same time, the development of the sustainable marketing perspective stems from the green marketing viewpoint and social marketing prospect are completely reasonable, in line with the inevitable trend of the market. The pyramid of social responsibility shows that economic requirements are the foundation for businesses to take basic steps toward the sustainable development, however if the business only places emphasis on structural sustainability, it will be problematic to adjust or improve products quality and boost the production processes or the effectiveness of media in the future. In terms of the proposals in most studies and practical experiences, the environmental pollution is always the colossal problem not only for global in general but also for the business optimization risk, in particular. Based on the research results and references, it could be concluded that even though businesses wish to fulfill their social responsibilities, they soon would be affected by budget limitation and technological barriers. Therefore, corporations are required to accumulate a certain capital source, implement product advancement as well as conduct the oriented marketing strategies in order to promote customer awareness of sustainable consumption prior to the conduct of social reinvestment or environmental improvement. Besides, to address the current environmental pollution issues, Vietnam called for implementing solutions in research and application of policies such as:

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(1) There is a consensus on the basis of measuring environmental indicators to create foundation criteria for behavioral assessment and goals review for improvement. (2) Addressing the current environmental pollution issue by speeding up inspection and supervision activities to promptly prevent risks. (3) Strengthening training activities for a fair, clean, competent and knowledgeable management team in terms of law and the environmental regulation from the central to local levels. In addition, in order to improve the performance of social responsibility, the Government is required to produce a clear plan on the specific contribution of each business in building the ecosystems, protecting the environment as well as balancing social security indicators such as gender inequality and income inequality to optimize resources. Furthermore, it is necessary to have research and study that are built up and applied the integrated assessment methods of sustainable efficiency. Reference 1. Archie B. Carroll (1991). The Pyramid of Corporate Social Responsibility: Toward the Morai Management of Organizational Stakeholders. Business Horizons, Volume 34, Issue 4, pp. 39-48 2. Carl Obermiller, Chauncey Burke & April Atwood (2008). Sustainable business as marketing strategy. Innovative Marketing, Vol. 4 (3), pp. 20 - 27 3. D. Pantelic, M. Sakalb, A. Zehetner (2016). Marketing and sustainability from the perspective of future decision makers. South African Journal of Business Management, Vol. 47(1), pp. 37 - 47 4. Divesh Kumar, Z. Rahman, M. N. Qureshi, Ishwar Kumar, Rajesh Katiyar (2012). Sustainability Adoption through Relationship Marketing. Proceeding of National Conference on Emerging Challenges for Sustainable Business. (pp. 1488 – 1503). New Delhi, India: Excellent Publishing House 5. Douglas B. Holt (2012). Constructing Sustainable Consumption from Ethical Values to the Cultural Transformation of Unsustainable Markets. The Annals of the American Academy of Political and Social Science, Vol. 644(1), pp. 236-255 6. Edyta Rudawska (2017). Sustainable Marketing Concept – A New Face of Capitalism. British Journal of Research, Vol 4(2) 7. Emmanuel M. Nyankweli (2012). Foreign direct investmentand poverty alleviation: The case of Bulyanhulu and Geita gold mines. Leiden, Tanzania: African Studies Centre 8. Fang-Mei Tai, Shu-Hao Chuang (2014). Corporate Social Responsibility. iBusiness, Vol.6 (3), pp. 117-130 9. Frank-Martin Belz & Ken Peattie (2009). Sustainability Marketing: A Global Perspective. 1st Edition. New Jersey, US: John Wiley & Sons 10. Frank-Martin Belz & Ken Peattie (2009). Sustainability Marketing: A Global Perspective. 2nd Edition. New Jersey, US: John Wiley & Sons 11. H.K. Mohajan (2012). Green Marketing is a Sustainable Marketing System in the Twenty First Century. International Journal of Management and Transformation, Vol 6(2), pp. 23 – 39 12. Hossam A. Kishawy, Hussien Hegab & Elsadig Saad (2018). Design for Sustainable Manufacturing: Approach, Implementation, and Assessment. Sustainability, Vol.10 (10). 13. James Higham (2010). Sustainable Market Orientation: A New Approach to Managing Marketing Strategy. Journal of Macromarketing, Vol. 30(2), pp. 160 – 170

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http://tapchitaichinh.vn/nghien-cuu--trao-doi/trao-doi-binh-luan/phat-trien-ben-vung-o- viet-nam-tieu-chi-danh-gia-va-dinh-huong-phat-trien-94064.html?mobile=true 31. Philip Kotler & K. L. Keller (2006). Marketing Management. 12th Edition. Upper Saddle River, New Jersey, US: Pearson Prentice Hall 32. Philip Kotler & K. L. Keller (2011). Marketing Management. 14th Edition. Upper Saddle River, New Jersey, US: Pearson Prentice Hall 33. R. Edward Freeman (1984). Strategic Management: a stakeholder approach. Boston, Massachusetts, US: Pitman. 34. Reginald Masocha (2018). Sustainable Marketing Practices and Sustainable Consumer Behaviour of Tertiary Students in South Africa. Journal of Economics and Behavioral Studies, Vol.10, No.3, pp 248 – 257 35. Robert W. Mitchell, Ben Wooliscroft,gidel James Higham (2010). Sustainable Market Orientation: A New Approach to Managing Marketing Strategy. Journal of Macromarketing, Vol 30(2), pp 160-170 36. Robin Roy (2000). Sustainable product-service systems. Futures, Vol.32(3), pp.289-299 37. Santiago Levy (2007). Can Social Programs Reduce Productivity and Growth? A Hypothesis for Mexico. IPC Working Paper Series No. 37. Proceeding of 8th Global Development Conference. 38. Stephen Frost & Mary Ho (2005). ‘Going out’: the growth of Chinese foreign direct investment in Southeast Asia and its implications for corporate social responsibility. Corporate Social Responsibility and Environment Management, Vol.12(3), pp. 156-167 39. Sunmeet Banerjee (2007). Environmental Marketing (Green Marketing Rudiments). IOSR Journal of Business and Management, pp. 69 – 74. 40. Timothy M. Devinney, Pat Auger and Giana M. Eckhardt (2010). The Myth of the Ethical Consumer. Cambridge, UK: Cambridge University Press 41. Thomas Bredgaard, Lene Dalsgaard & Flemming Larsen (2003). An alternative approach for studying public policy - The case of municipal implementation of active labour market policy in Denmark. Working Paper from Department of Economics, Politics and Public Administration, Aalborg University. 42. Thomas Dyllick, Zoe Rost (2017). Towards true product sustainability. Journal of Cleaner Production, Vol. 162, pp. 346 - 360 43. Valerus Praude, Santa Bormane, (2014). Sustainable Marketing: Prospects and Challenges under Present Economy. Regional Formation and Develoment Studies, No. 3 (11), pp. 165 – 176 44. Vu Van Hien, (2014). Sustainable development in Vietnam. Communist Review, Vol 1. Retrieved from https://tailieu.vn/doc/phat-trien-ben-vung-o-viet-nam-vu-van-hien- 1898486.html 45. Zohreh Molamohamadi and Napsiah Ismail (2013). Developing a New Scheme for Sustainable Manufacturing. International Journal of Materials, Mechanics and Manufacturing, Vol. 1, No. 1.

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A Review of Green Taxes – Experiences and Lessons Learned for Vietnam

Assoc. Prof. Dr. Nguyen Thi Thuy Duong School of Banking and Finance, National Economics University, Vietnam Email: [email protected] Abstract Green taxes are often considered as an important measure of the government in preventing climate change and raising people's awareness of environmental protection. Green taxes can include environmental protection tax, energy tax, traffic tax, natural resource pollution tax and other differentiated tax policies to protect the environment. The green tax is one of the important policies to fulfill the role of the state's macroeconomic regulation. This article will analyze the experiences in developing green tax policies of some countries around the world. There are certain differences in green taxes in each country. The paper also summarizes the green tax policy in Vietnam and provides some policy recommendations including diversifying forms of green taxes, imposing a tax on the packaging and expanding taxable objects of environmental protection tax law. Keywords: Environmental protection tax, energy tax, green tax, pollution

1. Introduction The green tax is a system of taxes used by the government to limit and control people's environmental pollution. When a company produces an additional good, it also creates negative externalities. The purpose of the green tax is to force polluters to pay tax in proportion to the amount of externalities it caused, thereby overcoming the market failure caused by externalities. In some cases, the green tax also provide support to taxpayers whose behavior is favorable for the environment. Green taxes have the following positive effects:  It promotes energy saving and the reuse of resources. The more energy people consume; the more tax they have to pay. It limits harmful behaviors to the environment.  It encourages companies to innovate in a sustainable way. It brings the revenue to the government. Therefore, the government can spend money on environmental pollution remediation.  It has a positive effect on both driving habits and fuel use. By increasing taxes on gasoline, the government can limit the use of gasoline-powered vehicles. When countries impose higher taxes on non-fuel-efficient vehicles, the use of fuel inefficient vehicles becomes lower. The green tax can include environmental protection tax, energy tax, traffic tax, natural resource pollution tax and other differentiated tax policies to protect the environment. By reclaiming tax subsidies for environmental offenders and giving them to eco-friendly businesses, the government can achieve its environmental goals without compromising revenue. Each country will design its own green tax policy. Taxable objects of green tax usually include:  Nitrogen monoxide (NO) and nitrogen dioxide (NO2), Sulphur dioxide (SO2), CO2 emissions  Waste management (domestic, commercial, industrial, construction, etc.).  Noise caused by aircraft taking off and landing.

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 Energy products (gasoline, diesel, natural gas, coal, power generation from fuel, etc.) generate CO2 emissions when burned.  Source of water pollution (pesticides, artificial fertilizers, acids, etc.).  The product damages the ozone layer.  Sources of soil pollution such as plastic bags, toxic chemicals This article will analyze the experiences in developing green tax policies of some countries around the world. 2. Methodology The narrative reviews are used in this paper. The research has summarized and synthesized the experiences of green tax policies in some countries. The purpose is to provide the reader with a comprehensive background for understanding the definition of green tax and highlighting the significance of green tax policies applied differently around the world. The scope of the research questions including: (a) what is the green tax; (b) what are the advantages of green tax; (c) how are green taxes implemented in countries; (d) how should green tax policy in Vietnam be improved? To provide clear answers to these questions, a literature research has been conducted on databases of four countries. Secondary data are synthesized from domestic and foreign studies. 3. Results and Discussions 3.1. Green tax in some countries around the world According to Eurostat, in 2017 the UE collected 368.8-billion-euro green tax, representing 2.4% of European GDP and 6.3% of total tax revenue. Tax on energy accounted for 76.9% of revenue from green taxes in the European Union (EU), while taxes on transport (19.7%) and tax on pollution and resource (3, 4%). Table 1: The collection of green taxes in some countries % GDP Compared As a share of Green tax Per capital, USD to GDP, 2018 total tax revenue China 0.7 2.87 90.93 Italy 3.31 7.9 1141.01 Korea 2.66 11.39 935.47 USA 0.71 2.76 375.3 Germany 1.79 4.62 793.93 United Kingdom 2.3 6.93 907.56 Japan 1.35 7.05 513.03 India 1.25 18.07 83.32 Malaysia 0.22 1.55 55.82 Singapore 0.28 1.95 233.51 Source: Eurostat, 2017 (most updated data) The paper analyzes the current situation of green taxes in some specific countries. 3.1.1. Green tax in Canada The excise tax on fuel-inefficient cars is a typical form of a green tax. This tax applies to cars purchased in Canada or imported from the US with an average fuel consumption of at least 13

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liters per 100 km and used after March 19, 2007. Vehicles are taxed on average fuel consumption, at the following levels: Table 2: The tariff table of Clean energy tax in Canada Average number of liters of gasoline Rate Tax payment ($) consumed per 100km 1 13-14 1.000 2 14-15 2.000 3 15-16 3.000 4 Over 16 4.000 Source: Clean Energy Canada, 2016 3.1.2. Green tax in the United States So far, the US green taxes have included the motor fuels excise tax, the gas guzzler tax, an excise tax on oil, an excise tax on coal. The fuel taxes account for 90% of total green tax. Today, these taxes vary by state. The federal excise tax on gasoline is 18.4 cents per gallon (4.86 ¢/L) and 24.4 cents per gallon (6.45 ¢/L) for diesel fuel. On average, as of July 2016, state and local taxes add 29.78 cents to gasoline and 29.81 cents to diesel for a total US average fuel tax of 48.18 cents per gallon for gas and 54.21 cents per gallon for diesel. The US fuel tax rate is relatively low compared to that of Europe (US Internal Revenue Service, 2016). The US Congress introduced gas guzzler tax in 1978 to limit the production and sale of cars using inefficient fuel. These taxable cars are passenger vehicles. The domestic tax authority is responsible for collecting this tax from car manufacturers or importers. The tax amounts are on the window stickers of the new cars. The more inefficient the vehicle is using the fuel, the higher the tax should be paid 3.1.3. Green tax in Israel Car taxes in Israel have always been high. In 2017, the car purchase tax rate was 95% for personal vehicles and 75% for commercial vehicles (General Department of Taxation, 2018). This is one of the highest taxes among OECD countries, except for Denmark and Norway. While the high tariffs mean Israel has the lowest percentage of cars in the OECD and cars are considered luxury goods, it also means that there is a large chunk of old, unsafe, and polluting cars. on the road. Israel is also using direct management measures (such as emissions standards) to manage vehicle emissions. In 2006, an inter-ministerial committee was set up by the Israeli government to discuss how to tackle the external costs of road traffic. One of the main solutions is to impose a green tax on cars. The committee brought together the ministries of finance, Transport and Road Safety, National Infrastructure and Environmental Protection, as well as outside experts from various fields. The Committee estimates external effects from transport to be about 6% of GDP in 2004. Table 3: The external costs of road transport Category Cost estimate (% of GDP) Accidents 0.67 Noise 0.36 Air pollution 2.08 Climate change 0.18 Congestion 1.92 Infrastructure building and maintenance 0.34

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Value of free parking 0.49 Total 6.04 Source: OECD, 2016 These costs were compared to the total revenue that the state receives from tax on vehicles and vehicle parts, plus annual road taxes and fuel taxes, totaling 3.4% of GDP in 2004. This figure implies that society subsidizes the personal car use at least 2.6% of GDP. Air pollution costs accounted for the highest proportion (2.08%). This cost includes cleaning costs due to the release of pollutants such as carbon monoxide (CO), nitrogen oxides (NOx), hydrocarbons (HC), particulate matter (PM) and CO2, and consist of health costs, building and material damage through soiling and corrosive processes. The Commission chose to focus on addressing the environmental impact of traffic due to its high cost to public health. The Commission discovered several ways that may better reflect these costs in the market price of vehicles. One of the solutions was to link taxes with fuel consumption, size and engine type. The tax was designed differently based on how big the vehicles cause damage. In August 2009, the government implemented a "green reform" based on the committee's recommendations. Vehicle sales tax is adjusted for 15 pollution grades, calculated by weighing all relevant and measurable emissions (carbon monoxide, nitrogen oxides, hydrocarbons, particulate matter and carbon dioxide) by relative cost of each pollutant to society. The goal was to create a differentiation between various levels of emissions while keeping tax revenues unchanged. The government assigned the Minister of Transport to ask car manufacturers to report on the level of emissions of five major pollutants for each car model. The tax rate per vehicle depends on its emissions, which is assessed during the prototype approval process for each model. Then, total emissions - or "green levels" - are calculated based on levels for the five pollutants. The classes are divided into 15 tax categories, starting from band 1 (without emissions, for example electric cars), to band 15 (the most polluting) (General Department of Taxation, 2018). The maximum purchase tax is 83% for all vehicles with a pollution rating above 15. To encourage the purchase of hybrid and electric vehicles, the tax rate has been set at 30% for hybrids and 10% for plug-in cars. As a result, the cost of less polluting vehicles has been reduced, while more polluting vehicles are more expensive. Table 4: Pollution rating, green grade, tax rebate and effective purchase tax rate Pollution rating Green grade Rebate Purchase tax rate 1 (no emissions-e.g. electric) 0-50 n/a 10% 2 (Hybrid) 51-130 n/a 30% 2 51-130 15 000 38% 3 131-150 13 750 50% 4 151-170 12 000 54% 5 171-175 10 500 58% 6 176-180 9 250 60% 7 181-185 8 250 64% 8 186-190 7 250 67% 9 191-195 6 500 70% 10 196-200 5 500 71% 11 201-205 5 000 73%

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12 206-210 4 000 74% 13 211-220 3 250 77% 14 221-250 2 000 80% 15 251and above - 83% Source: OECD, 2016 In addition to major reforms to the purchase tax, the commission proposed several measures to minimize the externalities of traffic including:  Congestion charge, differentiated according to location and travel time, distance and specific lanes.  Taxes on heavy vehicles and taxis, differentiated according to degree of pollution  Tax credits for the use of “green” fuels such as biodiesel.  A plan to remove older vehicles.  A higher annual road tax on used cars to reflect their higher pollution levels. Mandatory green levels and fuel consumption are shown in each vehicle advertisement at every point of sale and on the Ministry of transportation website. Since consumers are unaware of the tax rate and see only the final price of a car, it is extremely important to include a clear statement of the green level of the vehicle on each ad to increase awareness of community and influence their choice of a more efficient and less polluting vehicle. 3.2. Current status of green tax policy in Vietnam Green taxes in Vietnam exist in the following forms: 3.2.1. Environmental Protection tax The environmental protection tax in Vietnam was introduced in 2012. Taxes are imposed on 8 groups of goods, including gasoline, oil, grease; Coal; Hydrogen-choro-fluoro-carbon (HCFC) solution; Plastic bags; Herbicide; Pesticides; Medicines to preserve forest products; Warehouse disinfectant. Environmental protection taxpayer is an organization, household, or individual that produces and imports taxable goods. This tax applies to consumers indirectly when the tax is in the price of taxable goods. The environmental protection tariff is absolute. This absolute tax rate used to comply with the provisions of the Environmental Protection Tariff issued together with Resolution No. 1269 in 2011. Since January 1, 2019, the absolute tax rates serving as a basis for calculating environmental protection tax for each goods subject to environmental protection tax have been raised. Some goods are subject to a ceiling tax rate increase such as gasoline, jet fuel, diesel oil, fuel oil, lubricants, grease, and plastic bags. The environmental protection tax tariff is issued as follows Table 5: Tariff table of Environmental Protection Law No Goods Calculation unit Tax rate (VND) I Gasoline, oil, grease 1 Gasoline, except ethanol Liter 4,000 2 aircraft fuel Liter 3,000 3 diesel oil; Liter 2,000 4 Petroleum Liter 1,000 5 Fuel oil Liter 2,000

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No Goods Calculation unit Tax rate (VND) 6 lubricants Liter 2,000 7 Grease kg 2,000 II Coal 1 Lignite Ton 15,000 2 Anthracite Coal (anthracite) Ton 30,000 3 Fat coal Ton 15,000 4 Other coal Ton 15,000 III Hydrogen-chlorofluorocarbon liquid (HCFC). Ton 5,000 IV Taxable-plastic bag Ton 50,000 V Herbicide which is restricted from use Ton 500 VI Pesticide which is restricted from use Ton 1,000 VII Forest product preservative which is restricted from use kg 1,000 VIII Warehouse disinfectant which is restricted from use kg 1,000 Source: Ministry of Finance, 2019 Since the application of environmental protection tax (2012), the total revenue from this tax has continuously increased. Taxes have increased 6 times, from more than 11,000 billion VND in 2012, to nearly 69,000 billion VND in 2019, in which gasoline and oil contributed more than 90%. The total state budget expenditure for the environmental protection tasks in the period 2013-2018 is 72,422 billion VND (General Department of Taxation, 2018). 3.2.2. Excise tax is imposed on petroleum products, cars less than 24 seats Table 6: The tariff table of excise tax on some goods No Goods Tax rate 1 Under – 24 seat cars a) Passenger cars of 9 seats or fewer Of a cylinder capacity of 1,500 cm3 or less 35 Of a cylinder capacity of between over 1,500 cm3 and 2,000 cm3 40 Of a cylinder capacity of between over 2,000 cm3 and 2,500 cm3 50 Of a cylinder capacity of between over 2,500 cm3 and 3,000 cm3 60 Of a cylinder capacity of between over 3,000 cm3 and 4,000 cm3 90 Of a cylinder capacity of between over 4,000 cm3 and 5,000 cm3 110 Of a cylinder capacity of between over 5,000 cm3 and 6,000 cm3 130 Of a cylinder capacity of over 6,000 cm3 150 b) Passenger cars of between 10 seats and under 16 seats 15 c) Passenger cars of between 10 seats and under 16 seats 10 d) Cars for both passenger and cargo Of a cylinder capacity of 2,500 cm3 or less 15 Of a cylinder capacity of between over 2,500 cm3 and 3,000 cm3 20

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No Goods Tax rate Of a cylinder capacity of over 3,000 cm3 25 70% of the tax e) Cars running on gasoline in combination with electricity or bio- rate for cars of fuel, with gasoline accounting for not more than 70% of the used fuel the same kind 50% of the tax e) Cars running on bio-fuel rate for cars of the same type g) Electrically-operated cars Passenger cars of 9 seats or fewer 15 Passenger cars of between 10 seats and under 16 seats 10 Passenger cars of between 16 seats and under 24 seats 5 Cars for both passenger and cargo transportation 10 2 Motorhome 75 3 Gasoline of all kinds a) Gasoline 10 b) Gasoline E5 8 c) Gasoline E10 7 Source: Ministry of Finance, 2019 3.2.3. Tax incentives for businesses investing in environmental cleaning The current corporate income tax in Vietnam has the common tax rate of 20% (Ministry of Finance, 2019). However, enterprises will enjoy preferential tax rates in the following cases:  Enterprises are subject to a 10% preferential tax rate within 15 years if they have any - Income from implementing new investment projects in the fields of renewable energy production, clean energy, energy from waste disposal; - Income from implementing new investment projects in the field of environmental protection, including: production of equipment for environmental pollution treatment, equipment for environmental monitoring and analysis; pollution treatment and environmental protection; collection and treatment of wastewater, exhaust gas and solid waste; recycling and reusing waste.  The preferential tax rate of 10% during the entire operation is applicable to corporate income from socialization activities in the environmental sector.  Tax exemption for 4 years, reduction of 50% of tax payable for the next 9 years for: - Enterprises produce renewable energy, clean energy, energy from waste destruction; - Enterprises implement new investment projects in the field of environmental protection, including: Manufacture of equipment for environmental pollution treatment, equipment for environmental monitoring and analysis; pollution treatment and environmental protection; collection and treatment of wastewater, exhaust gas and solid waste; recycling and reuse of waste.

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4. Conclusions The paper has presented some proposals to improve green tax policy in Vietnam as below: First, there is a need to diversify forms of green taxes. An additional tax should be imposed on the manufacture or import of cars using inefficient fuel. Vehicles are taxed on average fuel consumption per 100km. The tariff is absolute and can be divided from 4 to 5 bands. Second, the government should impose a tax on the packaging. This tax will encourage the industry to study and standardize packaging. The packaging will become lighter, less bulky, and made from recycled material. As a result, the waste from packaging will be reduced significantly. The tax revenue can be used to fund municipal waste recycling efforts. It is necessary to have tax incentives for waste recycling businesses. Government should Allow these businesses to be tax-free for the life of their operations. Waste recycling will avoid contamination from landfills. Currently, the landfills are overloaded. Third, the subject of environmental protection tax does not cover all polluting goods. Therefore, it is necessary to expand taxable objects of environmental protection tax law such as industrial emissions, cigarettes, radioactive waste, chemicals (including inorganic acids, caustic soda, plant protection chemicals, organic solvents, mercury, etc.), electronics (generating electronic waste); rubber (tubes, tires, ..) and polymer. Government should remove the excise tax on gasoline because there is already the environmental tax on gasoline. Under 24 seat cars should still be subject to special sale tax. Inefficient cars should be subject to higher tax rates. The government should also remove tax incentives for businesses that pollute the environment. References 1. Clean Energy Canada (2016), Reducing GHG emissions in Canada’s Transportation sector. [Online]. pp. 16-26. Available at: https://www.equiterre.org/sites/fichiers/fmm_transportation_recs.pdf 2. General Department of Taxation (2018), Reports on State Budget Revenues in years. 3. Ministry of Finance (2019), Draft Law Amending and Supplementing the Law on Environmental Protection Tax. 4. Ministry of Finance (2014), Circular No.78/2014/TT-BTC guiding the implementation of the government’s decree No.218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of the law on CIT. 5. National Assembly (2010), Law on Environmental Protection Tax No. 57/2010 / QH12 6. OECD (2016), Israel’s green tax on cars OECE environmental policy paper No.5. 7. US Internal Revenue Service (2016), Excise taxes, Publication 510. 8. Eurostat (2017, last data), [Online]. pp. 12-24. Available: https://www/c.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20190212-1

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The Economic Integration Process of Vietnam: Achievements, Limitations and Vision toward 2030 Assoc. Prof. Nguyen Thi Thanh Hieu1, Dr. Nghiem Thi Chau Giang2, Dr. Le Thi Thuy3 Faculty of Political Theory, National Economics University, Vietnam Faculty of Political Economics, Academy of Journalism and Communication, Vietnam Email: [email protected], [email protected], [email protected]

Abstract Joining ASEAN in July 1995 opened a new period of international economic integration for Vietnam. Being an official member of the World Trade Organization in January 2007 was an event marking Vietnam’s comprehensive participation in the global trade system. Vietnam’s achievements in the international economic integration have made an important contribution to the country's construction and development, affirming Vietnam's position in the international arena. Besides the positive results, the country's global integration still has several limitations. The article reviews the economic integration process of Vietnam from 2007 to 2019; assesses the achievements and limitations of the global integration over the past few years; and proposes a number of basic solutions to enhance Vietnam's international economic integration up to 2025 and a vision toward 2030. Keywords: International economic integration, Vietnam’s international economic integration.

1. Introduction International economic integration is a major, right and thorough policy which becomes an important doctrine in the renovation process of the Party and State. The 7th National Congress of the Communist Party of Vietnam in 1991 set the guideline of “diversification and multilateralization of relations with all countries and economic organizations based on the principle of respecting independence, sovereignty, equality, and mutual benefit” (Vietnam Communist Party, 1991, pp. 147). In November 1996, the Politburo issued Resolution No. 01- NQ / TW on expanding and improving foreign economic efficiency in the 1996-2000 period. This guideline was thoroughly grasped by the 8th, 9th¸ 10th National Party Congress. After Vietnam joined the World Trade Organization (WTO) in January 2007, the Resolution of the 11th Party Congress shifted the guideline from “independence, autonomy, multilateralization and diversification of relations” to “Proactively and actively integrating into the global economy, while expanding international cooperation in other areas”. The 11th National Congress of the Communist Party of Vietnam in January 2011 approved the Socio-Economic Development Strategy for 2011-2020, which emphasized the “continuous strengthening of the country’s economic potential and synergy for widely and effectively proactive and active integration into the global economy” (Vietnam Communist Party, 2011, pp. 102). The guideline "Proactively and actively integrate into the global economy while at the same time maintaining and enhancing the independence and autonomy of the economy" of the 11th National Party Congress marked a new stage of Vietnam’s economic integration; became an important doctrine and orientation for international economic integration to serve the development and enhancement of the country’s position in the international arena (Vietnam Communist Party, 2011, pp. 35). In 2016, the 12th National Party Congress of the Communist Party of Vietnam continued to emphasize: “consistently implementing foreign policy of independence, self-reliance, multilateralism, diversification of external relations, proactive and

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active international integration; maintaining a peaceful and stable environment, creating favorable conditions for the national construction and defense; enhancing Vietnam’s position and prestige in the region and the world” (Vietnam Communist Party, 2016, pp. 79). In Vietnam, there have been a number of studies on international economic integration for recent years, including the article: “The relationship between high economic growth, extensive international economic integration and sustainable development in Vietnam until 2020” by Nguyen Thuong Lang in 2010. In order to solve those relationships, according to the author, there should be consistent and thorough perspective as the basis for strategic planning, policy and implementation. Besides, it is necessary to raise the awareness of the dialectical, complementary and restrictive relationship between high economic growth, proactive and extensive economic integration and sustainable economic development; always identify high economic growth as the goal, proactive and intensive international economic integration as the fundamental driving force, and sustainable development as the norm, high quality human resources as the decisive factor for high economic growth, proactive and extensive international economic integration as well as sustainable development. In the doctoral dissertation “The impact of international integration on the rural and urban income inequality in Vietnam” by Nguyen Thi Thanh Huyen in 2013, the author built an analytical framework to assess the impact of international integration on the rural and urban income inequality in the economy as a whole and in the province groups. The new point of the dissertation is to propose indicators of international integration through 4 channels: commodities, capital, labor movement and technological progress. 2. Research Methods and Approaches On the basis of the collection of secondary documents by prestigious organizations such as the General Statistics Office, the Ministry of Industry and Trade, the World Bank, and the World Economic Forum, the current situation of Vietnam’s international economic integration was identified; then the combination of the statistical analysis method, the comparative research method, data analysis and processing was used to find out limitations and to propose solutions to promote Vietnam's international economic integration in the coming time. 3. Results 3.1. Vietnam’s international economic integration in the 2007-2019 period Implementing the guideline of international economic integration of the Party, gradually, Vietnam has an extensive and proactive integration in the regional and global economy. Studying the international economic integration of Vietnam in the period of 2007-2019, we can see some highlights of the current situation: Firstly, Vietnam has now been actively participating in and promoting its membership in international economic organizations. As an official member of international economic organizations: WTO, ASEAN (Association of Southeast Asian Nations), APEC (Asia-Pacific Economic Cooperation), ASEM (Asia–Europe Meeting, also known as Asia-Europe Summit), Vietnam has made every effort to fully and seriously implement commitments, actively participated in and contributed to activities of these organizations. Secondly, Vietnam is proactively participating in negotiating and signing Free Trade Agreements, including the new-generation free trade agreement. As of 2019, Vietnam has established diplomatic relations with more than 170 countries around the world; expanded trade relations; exported goods to more than 230 markets of countries and territories; signed over 90 bilateral trade agreement, nearly 60 investment incentive and protection

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agreements, 54 anti-double taxation agreements, 14 Free Trade Agreements (FTAs) and many bilateral cultural cooperation agreements with countries and international organizations - according to National Committee for International Economic Cooperation in 2019. Among these agreements, the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and the Vietnam-EU Free Trade Agreement (EVFTA) are the two new-generation free trade agreements with higher standards, balanced interests and more comprehensive, more thorough features with non-traditional trade contents such as movement of natural persons, labor, trade unions, intellectual property, government procurement, state enterprises, environmental protection... Table 1: List of Free Trade Agreements that Vietnam has signed and is about to sign Range Start Framework Free Trade Agreements (FTAs) (% tariff End Year Year lines) ASEAN 1.ASEAN-AEC 93~100 1999 2015/2018 2.ASEAN- South Korea 87 2007 2018 3.ASEAN – Japan 87 2008 2025 4.ASEAN-India 78 2010 2020 5. ASEAN- China 85- 90 2005 2015/2018 6. ASEAN- Australia/New Zealand 90 2009 2020 7.ASEAN- Hong Kong 85 2019 2030 VIETNAM 8. Vietnam – Japan 92 2009 2026 9. Vietnam – Chile 89 2014 2030 10. Vietnam – Laos 95 2015 2020 11. Vietnam – South Korea 89 2016 2030 12. Vietnam–Eurasian Economic Union 59 2016 2025 13. CPTPP (30/12/2018, with 6 countries) 78-95 1/2019 5- 10 years 14. Vietnam – EU (signed on 30/6/2019) 85 Wait for After 7-10 approval years UNDER 15. RCEP (ASEAN+6) NEGOTIATION 16. Vietnam – EFTA 17. Vietnam- Israel. Source: Compiled from documents of the WTO Reference Center, Institute for Industrial Policy and Strategy, Ministry of Industry and Trade Thirdly, Vietnam has been implementing international economic integration commitments at an increasing level of liberalization. All commitments on the extent and scope of tariff reduction for import and export goods are shown at the percentage of tariff lines with tax rate immediately set at 0% when the agreement comes into effect at a very high level such as the CPTPP, which has 78-95% of tariff lines with tax rate reduced to 0% in a very short completion schedule (5- 10 years for regular goods, above 10 years or imposing duty quotas for sensitive goods) (Table 1: List of Free Trade Agreements that Vietnam has signed and is about to sign).

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3.2. Achievements and limitations of Vietnam's international economic integration in the 2007-2019 period 3.2.1. Some remarkable achievements Firstly, the import-export market has been expanded, so the import-export turnover of Vietnam in the 2007-2019 period had an impressive growth. Vietnam has taken advantage of opportunities brought by international economic integration to develop commodity exports and economic growth. After 13 years of Vietnam's accession to the WTO, Vietnam's export turnover increased by 5.4 times compared to 2007. Besides, the growth rate was very high due to the policy of opening market. Export turnover of goods in 2019 reached US $ 263.45 billion, a rise of 8.1% from the previous year. Figure 1: Vietnam’s Export Turnover in the 2007-2019 period Unit: USD Billion

300 263.45 215.1 243.9 250 176.5 200 162 132 150.2 114.5 150 96.9

100 57 72.2 48.5 62.6 50

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Data of the General Statistics Office of Vietnam and author's compilation Not only was the export growth high but also new export items were developed. Besides, the structure of export goods was improved remarkably in a positive direction. The proportion of processed and manufactured goods gradually increased while the proportion of raw and preliminary processing goods gradually reduced. In 2000, the manufactured and processed goods accounted for 44.2%. After that, this figure increased to 65.1% in 2010, and increased to 85.5% in 2018. The raw or preliminary processing goods in 2000 accounted for 58.8%, decreasing to 34.8% in 2010 and to 14.5% in 2018. In 1999, there had been only 4 key export items; but in 2014, there were 24 key export items. In 2018, there were 30 items with export turnover reaching over USD 1 billion (GSO, 2019). The overseas markets expanded enormously; became more diverse and more reasonable. The number of export markets increased more than 1.4 times after 10 years, from 160 markets to 173 markets in 2015 and over 230 markets in 2018. The structural change in the export and import markets was shown by a gradual decrease of dependence on Asian markets and a gradual increase of European and American markets. The major export markets of Vietnam included the United States, China, Japan, South Korea, Hong Kong, Germany and some ASEAN countries. Imported goods became more and more diverse; meeting the needs of machinery, equipment and raw materials to develop production and export. The structure of imported goods shifted towards a more positive direction, in which the proportion of capital goods increased while the proportion of consumer goods decreased. The group of capital goods accounted for 89% in

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2010, and 90.1% in 2018. Machinery and equipment accounted for 25.3% of the total import turnover in 2005, 29.1% in 2010, 42.3% in 2015, and 43% in 2017 (GSO, 2019, pp. 622-623). Secondly, international economic integration provides opportunities to attract foreign investment and develop tourism. The United Nations Conference on Trade and Development (UNCTAD) assessed Vietnam as one of the 12 most successful countries in attracting foreign direct investment (FDI). Currently, there are nearly 26,000 FDI enterprises operating in Vietnam, with the committed capital of over USD 330 billion from nearly 130 countries and partners. The FDI capital in 2019 reached USD 20.4 billion, a rise of 6.7% from the previous year. Vietnam has gradually become one of the world's factories on the supply of electronics, textiles, footwear and mobile phones. International arrivals to Vietnam in 2018 reached over 15.5 million, up 1.9 times compared to 2015 (GSO, 2019). International arrivals in 2019 reached over 18 million, up 16.2% compared to the previous year. This is the second consecutive year Vietnam won the prestigious title “Asia's Leading Destination” by the World Travel Awards (WTA) 2019. Figure 2: Disbursed FDI Capital in the 2007-2019 period Unit: USD Billion

25 20.4 19.1 20 17.5 15.8 14.5 15 11.5 11.5 12.5 10 11 11 10.5 10 8.5

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Figures of the General Statistics Office of Vietnam and author's compilation

Thirdly, international economic integration created a positive effect, promoting the reform and fulfillment of the market economy institution, enhancing the business environment, and contributing to improve the competitiveness of the economy long-term in three perspectives: law, organizational structure and people. Fourthly, international economic integration had a strong impact on all sectors of the national economy: agriculture and rural development; creating jobs and salaries, enabling Vietnamese labor to work abroad in both quantity and market diversification; improving the competitiveness of the nation, businesses and products. Moreover, it had an impact on the society, culture, education, environment and politics; created a position and power for the national construction and defense; promoted peace, stability and cooperation in the region. Fifthly, export growth is really a "driving force", making an important contribution to Vietnam's economic growth at a high and stable speed in the context of volatile international economy. GDP growth rate in 2018 reached 7.08% [9], which was the highest level since 2008. This figure in 2019 grew by 7.02%, exceeding the growth target of the year.

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Figure 3: Vietnam’s GDP growth rate in the 2007-2019 period Unit: %

10 8.5 8 6.78 6.68 6.81 7.08 7.02 6.23 6.24 5.98 6.21 6 5.32 5.25 5.42 4 2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Figures of the General Statistics Office of Vietnam and Author's compilation

3.2.2. Limitations In addition to the basic positive impacts mentioned above for recent years, international economic integration has revealed some limitations that need to be overcome in the coming time: Firstly, the methodical and comprehensive strategy on international economic integration with regions and countries in the world has not been built proactively. In recent years, Vietnam has not joined FTA actively. The country has just focused on multilateral negotiations and regional FTAs, namely FTA agreements between ASEAN and partners; but has not paid enough attention to negotiate bilateral FTAs. Only four out of 14 bilateral FTAs were signed. The commitments in FTAs only focused on short-term benefits. Therefore, Vietnam has not taken advantage of potential economic relations with bilateral FTA partners and of many long-term benefits from regional FTAs. Besides, there have not been synchronized innovations between economy and politics, between laws, policies and organizational structure, administration and implementation organizations. The innovations have not been also fully connected with the development strategies of socio-economy and economic sectors. Secondly, the concretization and synchronization of socialist-oriented market economy development have been slow. Sometimes, the determination of developing real estate, finance, labor, science and technology markets encountered difficulties. In particular, although the leading and guiding role of state-owned enterprises has been identified, it is necessary to clarify the direction of restructuring and implementation measures. Thirdly, it is obvious that the success of international economic integration is only based on strengthening and promoting the internal strength of the economy, but Vietnam has not done this well. Although the competitiveness of Vietnam’s economy, enterprises and products has been improved, it is weaker than other countries. There have not been a lot of spearhead economic sectors and enterprises that are capable of dominating the regional and global markets. They have not been able to be a driving force for the development of other sectors and enterprises. Fourthly, despite going to great lengths, Vietnam has not yet established a truly sustainable, favorable business and investment environment for the economic development; revealing fundamental weaknesses of the economy in the international economic integration.

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According to the "Doing Business 2019: Training for Reform" report, the World Bank (WB) announced that among the 190 economies measured, Vietnam ranked 69th in ease of doing business rankings, moving down one place compared to the Doing Business 2018 report, despite the score increase from 66.77 points to 68.36 points. The rank of Vietnam deteriorated because the doing business indicators of other countries had better improvements in 2019. Vietnam was left behind four countries in the ASEAN region including Singapore (2nd spot), Malaysia (5th spot), Thailand (27th spot) and Brunei (55th spot); but was followed by Indonesia (73rd spot), Philippines (124th spot), Cambodia (138th spot), Laos (154th spot), Timor-Leste (178th spot) and Myanmar (171st spot) (World Bank, 2018). Vietnam posted score improvements in six out of ten measured indicators; maintained the scores of three indicators (which included accessing finance, trading across borders and protecting minority investors); and had a score decrease in only one indicator – resolving insolvency. The country’s rankings fell in six indicators; including paying taxes down 45 grades (131st spot), protecting minority investors down eight grades (89th spot), trading across borders down six grades (100th spot), accessing finance down 3 grades (32nd spot), resolving insolvency down four places (133rd spot), and dealing with construction permits down one place (21st spot). Fifthly, the Vietnamese Communist Party's path and guidelines, the State's policies and laws on international economic integration were not thoroughly grasped by all levels, branches; and were slowly concretized and institutionalized. In particular, the mechanism for administration and management of ministries, branches and localities was still inadequate. These agencies have not proactively taken advantage of opportunities, nor have they seen the emerging challenges to actively cope with. Besides, they have not been able to anticipate negative impacts from outside to have effective restrictive measures. Sixthly, in the context of fast, strong and unpredictable fluctuations in the world, the ability to identify, assess and forecast the actual situation to proactively handle the emerging issues of international economic integration was still limited. The establishment of early warning mechanisms in every area in Vietnam's deep global economic integration has been generally still inadequate. Seventh, along with the development process, the appearance of "bottlenecks" in institution, infrastructure, human resources, etc. has delayed Vietnam’s international economic integration. Human resources and infrastructure are particularly important issues, which need a special attention to overcome challenges and to seize opportunities of international economic integration in the coming time. The economic structure and quality of growth were not improved significantly and not sustainable. Investment efficiency was not as high as expected. The economic growth of Vietnam in the past few years has been largely depended on such factors as credit, labor while the contribution of productivity and knowledge to the growth has not been sufficient. According to the report of the World Economic Forum (WEF), Vietnam ranked 56th out of 140 surveyed countries in the global competitiveness rankings for the period of 2015 - 2016. In recent years, Vietnam has had an improvement in competitiveness. However, it has been still lower than other countries in the region, which is shown in the following figure:

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Figure 4: Global Competitiveness of ASEAN countries in 2017-2018

120 112 109110 110

100

7477 80 68 6462 60 56 47 40 45 2017 38 40 2018 26 25 20

2 2 0

Source: The Global Competitiveness Report 2017-2018 The limitations above are caused by objective and subjective reasons. However, the subjective causes play a decisive role. Thus, it is necessary to have an efficient and proactive participation of regulatory agencies, enterprises, industry associations and citizens. 4. Discussion and Conclusion 4.1. Basic solutions to enhance Vietnam's international economic integration up to 2025 and a vision toward 2030 Vietnam’s global economic integration in the new period has taken place in the context of the current international and domestic situation changing rapidly and completely. The trends of economic integration, linkage and gathering of multi-layered economic forces have increased sharply. Major countries have strongly adjusted policies and led the trends of international economic integration. The connotations of economic - trade linkages are increasingly extensive, associated with the sustainable development and management of global challenges. The linkage and gathering of international economic forces have taken place flexibly with the increasing role of developing countries. Recognizing the above limitations and thoroughly grasping the guidelines of the Party and State on international economic integration is the center of the international integration process, contributing to ensuring the maintenance of political security and socio-economic stability in the context of the economy and politics of the world continuing to develop complicatedly and Vietnam's economy with a high degree of trade openness, which is easily affected by external adverse events. In order to make Vietnam's international economic integration up to 2025 and the vision toward 2030 achieve substantive results and get more balanced benefits, it is necessary to do the following solutions better: 4.1.1. Solutions for state administrative agencies Firstly, it is necessary to have a unified awareness and innovative ways of thinking and doing in the direction of “deep, comprehensive global integration with proactiveness”, in which international economic integration is the focal point. The global integration of other areas must enable the economic integration to be an important driving force in institutional improvement, promoting sustainable economic growth and development, enhancing the national

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competitiveness and creating truly fair, transparent business and investment environment for domestic and foreign businesses. Secondly, it is important to build an overall strategy for international economic integration, linking multilateral with bilateral integrations, combining integration with ASEAN markets, CPTPP, European Union, APEC and markets of other countries in the whole unification in which the role, position and development orientation of specific markets will be identified to be a basis for localities and businesses to formulate their specific strategies. Thirdly, it is essential to complete the socialist-oriented market economy institutions; creating a safe, equal, open, transparent, convenient business environment for investment and business development. The direction to create this environment is a simple and easy-to-understand system of laws and policies in the spirit of investors and entrepreneurs doing what are not prohibited by law. Currently, Vietnam’s legal system is too complicated, duplicated and sometimes contradictory. In order to make the law become an essential thing in the life, it is necessary to have guiding decrees and circulars. It also depends on the implementation of state agencies at all levels with creative and innovative ways of thinking and doing. Fourthly, it is necessary to strengthen the coordination of the ministries, branches and localities in the process of international economic integration from the guidelines, policies, organizational structure and especially the management mechanism. There must be unification in the action and awareness of the central government, localities, ministries, branches, associations and enterprises. It is essential to focus on the effective implementation of guidelines, policies and action programs on international economic integration; and to improve comprehensively the capacity to implement commitments in international economic integration. Accordingly, the full implementation of commitments in international economic integration must be combined with the process of reviewing, supplementing and completing domestic laws and institutions, harmonizing Vietnam's laws with international commitments. It is also important to accelerate the economic restructuring, to transform the growth model, to improve the competitiveness of the economy, to strengthen supervision and evaluation of the implementation of commitments in international economic integration, especially in coping with the pressure of fierce competition on all levels of products, enterprises, industries and countries; simultaneously have a skillful solution to the sensitive industries of the economy such as cars, sugar cane, rice, gasoline ... under the pressure of tariff reduction. Fifthly, it is necessary to concentrate on promoting internal force, making every effort to overcome difficulties and challenges, getting opportunities in international economic integration and the fourth industrial revolution to efficiently take advantage of outside resources to successfully implement the cause of industrialization and modernization of the country and economic development; improve the integration capacity and the competitiveness of the economy, industries and businesses. It is also important to renovate the growth model associated with the economic restructuring; and consider this as both premise and consequence of international economic integration and as a decisive solution to enhance the internal force to take advantage of opportunities, overcome challenges in international economic integration, ensuring a fast and sustainable economic development. It is necessary to proactively implement the process of international economic integration; to maintain socio-political stability in the context of Vietnam joining FTAs; to properly handle the relationship between independence, autonomy and international economic integration; to

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build the economy with high autonomy and an ability to deal with international economic fluctuations; and to maintain the macroeconomic stability, economic security. Vietnam should also promote the export in terms of quantity and quality to attract foreign investment; improve the quality of growth, labor productivity, and the competitiveness of the economy, which are direct economic criteria for assessing the result of international economic integration. Sixthly, it is important to proactively grasp the opportunities; to study early warnings and have a careful preparation in implementing and anticipating international economic integration, especially under the pressure of qualifications, knowledge and skillfulness, and risks of international trade disputes that the domestic agencies, businesses, associations and labor have to encounter. In recent years, Vietnam has had a team of qualified and professional negotiators who have been trained well since the negotiating phase of WTO accession. This experience shows that in order to have high quality human resources for each subsequent development stage; ministries, branches or enterprises need to have careful preparation, especially in the context of the regional labor movement taking place strongly as an indispensable trend of international economic integration at a deeper and more extensive level. Seventhly, the government should strengthen the dissemination of the information on the roadmap and commitments of international economic integration of Vietnam for the domestic enterprises to join the integration proactively. Besides, they should organize campaigns to improve the awareness and consensus of the whole society, especially of enterprises and entrepreneurs with respect to international agreements, especially opportunities, challenges and requirements to be met when Vietnam joins and implements new generation FTAs with efficient and appropriate disseminations for each industry, association, enterprise and community. In addition, raising awareness and legal capacity, especially international law and international trade, etc. are also important. 4.1.2. Solutions for enterprises and entrepreneurs The challenge for Vietnamese enterprises is the pressure in competition with cheap goods and high-quality services from partner countries in the domestic market. Strict technical barriers, sanitary and phytosanitary system make it difficult for Vietnamese goods to enter the markets of FTA partners. In order to take advantage of benefits from CPTPP, EVFTA, FTAs, Vietnamese enterprises need to actively explore and research information and knowledge on international economic integration and international law. The information on technical barriers can be found at the address of enquiry points of 150 WTO member countries at the WTO website (www.wto.org). The elimination of tariffs for partners in CPTPP and EVFTA is only applied to products of intra-regional origin. In fact, with the signed FTAs, there were only about 30% of enterprises taking advantage of tariff preferences from the signed FTAs (33% of preferential tariffs in 2016, 36% in 2017 and 39% in 2018) [2]. Therefore, the enterprises need to be proactive in selecting the origin of raw materials, meeting the traceability standards as well as the requirements on hygiene, plants and animal quarantine measures, technical barriers, etc. In order to access the market and to participate in the global supply chain, the enterprises need to proactively have a deep investment and renovation in technology equipment, improve product quality, and meet international standards. The enterprises and business communities need an urgent support from the government and trade associations in building and promoting brands; receiving information on business laws,

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knowledge of international economic integration as well as experience in dealing with international lawsuits, trade barriers of export markets. 4.2. Conclusions Since becoming a member of the World Trade Organization in 2007; Vietnam has made remarkable achievements in import and export, attracting foreign investment, economic growth, etc.; affirming the country's position in the regional and international arena. However, the business and investment environment need further improvements to ensure national competitiveness. The article proposes several solutions to state administrative agencies, businesses and entrepreneurs to promote Vietnam's international economic integration up to 2025 and a vision toward 2030. References 1. Ministry of Industry and Trade (2018). Impact of international economic integration on Vietnam's import-export market. Documents for training courses within the framework of the duties of the WTO Affair Consultation Center, Institute for Industry Policy and Strategy. 2. Ministry of Industry and Trade (2019). Vietnam’s Export-Import Report 2018, Industry and Trade Publishing House. 3. World Economic Forum (2018). Global Competitiveness Report. 4. Vietnam Communist Party (1991). Document of the Seventh National Communist Delegates Party Congress. National Political Publishing House, pp. 147. 5. Vietnam Communist Party (2011), Document of the 11th National Communist Delegates Party Congress, National Political Publishing House, p.35. 6. Vietnam Communist Party (2016), Document of the 12th National Communist Delegates Party Congress, National Political Publishing House, p.79. 7. World Bank (2018), Doing Business Report 2019. 8. General Statistics Office of Vietnam (2014), Statistical Yearbook 2013, Statistical Publishing House - Hanoi. 9. General Statistics Office of Vietnam (2019), Statistical Yearbook 2018, Statistical Publishing House – Hanoi, p.613, 622-623. 10. National Committee for International Economic Cooperation (2019), Report of Ministries 11. Huyen, N. T. T. (2013). Doctoral dissertation: “The impact of international integration on the rural and urban income inequality in Vietnam”, National Economics University. 12. Lang, N. T. (2010), “The relationship between high economic growth, extensive international economic integration and sustainable development in Vietnam until 2020”. Available at: http://sdh.neu.edu.vn/?id=219397, accessed on February 24th, 2020 13. General Statistics Office of Vietnam (2019), Press Release on Socio-economic Situation in Fourth Quarter of 2019/ . [Online]. Available at: https://www.gso.gov.vn/default.aspx?tabid=382&idmid=2&ItemID=19453, accessed on February 24th, 2020 14. http://www.mofahcm.gov.vn/en/mofa/nr091019080134/ns120222162217/, accessed on August 30th, 2019.

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Attracting the Foreign Direct Investment (FDI) in High Technology Farming towards Green Growth in Vietnam

Nguyen Le Dinh Quy1, Vo Luu Gia Huy2, Ho Tuan Vu3 1FPT University 2University of Technology, Sydney 3Duy Tan University

Abstract In recent years, foreign direct investment (FDI) in implementing socioeconomic target has significantly contributed to the Vietnam economic growth. FDI plays a role in promoting the sustainable economic development in the countries that it invested in. Therefore, attracting the foreign investment in areas such as high-tech farming, in companies that use modern technology, less consumable energy and in producing environmental goods can bring many benefits to the environment in Vietnam and help the country to achieve the target of green growth in the future. The paper uses the methods of analysis and synthesis from secondary data sources of the General Statistics Office and Foreign Investment Agency. The results of the article have shown the situation of attracting the foreign direct investment in high technology farming towards green growth in Vietnam and offer some solutions to promote the development of this field. Keywords: Foreign direct investment, high technology farming, Vietnam

1. Introduction With the sustainable growth based on the three pillars including economy, social and environment, Vietnam’s economic strategy in 2011-2020 and national vision up to 2050 has stated that: green growth is the key component for sustainable economic development which ensures the rapid and sustainable economic growth and contributes to the success of National Climate Resilience and Adaptation Strategy. Green growth refers to the use of the natural resources in a sustainable manner to foster the economy and ensure that the environment is protected. Vietnam is well known for its diverse natural resources; however, the overexploitation of raw materials for exporting goods and services to improve the economic development caused these resources to be exhausted. In addition, climate change is also one of the main issues that Vietnam is facing during these days, thus causing many side effects and putting pressure on the sustainable growth in next periods. The national strategy for sustainable growth in 2011-2020 focuses on the sustainable production and consumption which aims to accelerate the clean manufacturing, utilize the natural resources while minimize the use of toxic materials and reduce the emission and pollutants to protect the environment and citizens’ health. To create a solid and legal foundation for the sustainable and green growth, the Vietnamese government enacted the legislation 1393/QD about national strategy in 2011-2020 and vision up to 2050 declaring that green growth in Vietnam is an important legal basis for developing policies that are related to green economy in Vietnam in the next stage. This strategy emphasizes that “The green growth in Vietnam is the method of accelerating the restructuring process of the economy and moving towards using natural resources effectively, reducing the greenhouse gas emission through research and application of modern technology and developing infrastructure. This strategy

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aims to increase the effectiveness of the economy, resolve the environmental issues in Vietnam, eliminate hunger and reduce poverty, all of which will further facilitates to develop the economy sustainably”. Now shifting the economy towards the green and sustainable growth has become the main interest of Vietnamese government and is also the basis of national strategy (Prime Minister, 2012) In recent years, the impact of foreign direct investment (FDI) in implementing socioeconomic target has positively contributed to the growth of Vietnam economy. FDI can be considered as contributing remarkably to the sustainable growth of a country only when it satisfies the expectation about: mobilize capital, increase social investment, utilize the capital, accelerate the economy, restructure the economy in a proper manner; transfer the modern technology; train and improve essential skills, knowledge and quality of labor force to ensure national growth and participate in the globalization of labor markets; stimulate the Research and Development, improve the productivity of aggregate factors; develop new professions, expand the market, deeper penetration to the global chain, force the domestic companies to improve their technology due to the competitive market; improve labor’s productivity as well as quality of goods and services, strengthen the relationship and support among domestic economies and those economies with foreign direct investment,. In recent years, there has been several issues that provoked the public anger which include the low quality of FDI that is unstainable and serious environmental pollution that causes detrimental effect on both economy and social aspect of the countries receiving the investment. These countries are currently facing new challenges which require them to shift to an appropriate model for sustainable economic development and environmental protection. This can help these countries to attract even more inflows from foreign direct investment (FDI), especially the “green” FDI flows. Economic growth and sustainable development should go hand in hand and green investment is a prerequisite for achieving both goals. Shifting to the green economy also requires changes in policies and strategies to attract FDI that is in line with the Government's National Green Growth Strategy, thus improving the efficiency of resource use and protecting biodiversity and ecosystem to obtain the highest socio-economic efficiency of the reproduction process. 2. Methodology  Data sources: secondary data sources from the General Statistics Office and Foreign Investment Agency.  Research Method: descriptive statistics, comparative and synthesis methods. 3. Results 3.1. The Foreign Direct Investment in Vietnam In Vietnam, FDI was only executed after the Foreign Investment Law in Vietnam was promulgated on December 29, 1987. This is an important event in the implementation of the renovation policy and transformation of business management model, therefore creating a premise for the inflows of FDI into Vietnam. Since that time, the laws and policies about FDI have been continuously improved and adjusted in a practical and effective tendency to achieve the socio-economic development goals. For 30 years, FDI has always been a dynamic area and played an active role in Vietnam's economic development and international integration. Up to December 2017, Vietnam had 24,748 valid FDI projects coming from 125 countries and

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territories with a total registered capital of nearly 319 billion USD including additional capital. FDI was present in 63/63 provinces and cities of Vietnam. Table 1: Foreign direct investment is licensed in phases Unit: million USD Year Number Projects Registered capital Total realized capital Total 26.500 375.470,01 171.992,9 1988-1990 211 1.603,5 1991-2000 3.133 43.888,7 20.668,2 2001-2010 10.082 168.880,5 58.478 2011-2015 7.980 100.355,6 59.546,7 2016-2017 5.094 60.741,7 33.300 Source: General Statistics Office of Vietnam The number of licensed projects and total capital of FDI used have often increased compared to the previous period. Taking an in-depth look at each year, these figures often fluctuated which reflects its dependence on the adjustment of Vietnam's policies in each period together with the regional and global economic and financial situation. Figure 1. Foreign direct investment licensed for the period 1991-2017 for each year.

Total registered capital Total realized capital

Source: General Statistics Office of Vietnam 3.1.1. Structure of foreign direct investment by industry Industry and Construction sector: With an aim of expanding FDI in the industry and construction sector, the FDI projects in the fields of petroleum and gas complex’s exploration and exploitation, manufacture of high-tech products, electrical and electronic products, iron and steel production, textile production ... still played a critical role in contributing to economic and export growth as well as improving employment rate and ensuring stable income for millions of workers. The investment structure has a positive tendency of increasing the proportion of capital in the fields of high technology, oil refining and information technology (IT) with the presence of world’s leading multinational corporations: Intel, Panasonic, Canon, Robotech,

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Samsung.... Most of these foreign investment projects used approximately 100% modern equipment and automation also reaches 100% for producing effective output with high quality and hence greatly influence the industry's value indicators. Up to December 2017, the industry and construction sector had the largest proportion with 14,153 valid projects, total registered capital of approximately 222.6 billion USD, and thus accounting for 57.2% of the total projects, 69,84% of total registered capital and about 70% of realized capital. Service sector: Vietnam has many policies for the purpose of facilitiating the growth of service business area. As a result, the service sector has positive changed and increasingly satisfied the market demand. A number of service sectors such as post and telecommunications, finance, banking, insurance, air transport, shipping, tourism, real estate have grown rapidly, attracted more labor and accelerated the export in recent years. Along with the implementation of the commitments of trade in services with the WTO, Vietnam has conducted the open door policy for FDI that aims at developing service industries that directly support manufacture and export. Until December 2017, there were 10,084 in-force FDI projects in the service sector, with a total registered capital of over 92.6 billion USD, making up 40.7% of the total projects and nearly 29.06% of the total registered capital. Agriculture - forestry - fishery sectors: Vietnam always gives piorities to FDI projects investing in agriculture - forestry – fishery industries. However, due to many reasons, including high investment risk in this sector, the proportion of agriculture - forestry - fishery activities in the FDI sector has not been high as expected. Up to December 2017, the fields of agriculture - forestry - fishery had 511 valid projects, total registered capital of US $ 3.52 billion, accounting for 2.06% of total numbers of projects and 1.1% of total registered capital sign. FDI projects in the agriculture-forestry-fishery sectors are mainly concentrated in the Southern regions. The amount of investment capital is very low in the Northern and the Central region. 3.1.2. The structure of foreign direct investment by form and investment partners Up to December 2017, the majority of active FDI projects were operated in the form of 100% foreign capital.There are 20,719 foreign invested projects with a total registered capital of over 231.2 billion USD, making up 83.72% of the total projects and 72.54% of total registered capital. In the form of joint venture, there are 3,775 projects with a total registered capital of nearly 68.31 billion USD, accounting for nearly 15.25% in the total projects and 21.43% of the total registered capital. The rest belongs to other forms such as business cooperation contracts, BOT, BT, BTO with total projects accounting for about 1% and the total registered capital about 6%. Figure 2: Share of FDI by investment type as of December 2017

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Source: Foreign Investment Agency The majority of FDI companies are 100% foreign-owned, and other joint ventures after operating for a long period of time are also manipulated by foreign partners and then forced to be transformed into 100% foreign-owned enterprises. This phenomenon significantly limits the goals of learning, transferring, acquiring and mastering the modern technologies, as well as negatively controlling situations such as transfer pricing (fake losses, real profits), market manipulation ... of companies, resultantly causing unsustainable development status of FDI and hence hindering the goal of sustainable economic development in Vietnam (Nguyen Tien Dung, 2018) By investment partners: Among 24,748 valid projects licensed in force, with a total registered capital of over 318 billion USD (including additional capital), up to December 20, 2017, Asian countries accounted for over 70% and ASEAN particularly made up about 20% of the total registered capital. More specifically, some countries accounted for about 10% or more of total registered capital in Vietnam including South Korea with 18.09%, Japan with 15.52%, Singapore with 13.23% and Taiwan with 9,7%. FDI which comes from European into Vietnam made up 10%, ranked 5th and the United States accounted for 3.1% of total registered capital, ranked 9th among 100 countries and territories which have foreign investments in Vietnam. If we sort the FDI by the average capital of a project, there are many projects coming from over 30 countries and territories with the average capital of a project of over 10 million USD. The FDI data acquired in recent years has showed that foreign investment from Southeast Asia and Asia still accounted for a large proportion. This means that the industries, products and technologies deployed in Vietnam from investors are mainly at average level and many of these projects are even conducted with the low industries, products and technolog which consequently worsen the pollution issue and the environment. Vietnam has not been attracted or attracted to very few leading investors in specific industries and products. For big investors that conducts projects in Vietnam such as Samsung, Cannon, Intel, Piaggio ..., Vietnam only participated in the assembly line, which is the lowest value-added stage in the product’s value chain. This is a noticeable challenge to the enforcement of Vietnam economic development in the direction of green growth. If the huge amount of capital flow from foreign direct investment (FDI) is not strictly controlled, it may induce potential risks to the economy such as the trade deficit and the increasing dependence of the economy on FDI inflows to finance the trade deficit. For the host countries with underdeveloped or developing economies, FDI is often associated with exploiting natural resources, agriculture, manufacturing, services, protected industries, polluting industries and

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real estate sector. The main challenge for Vietnam now is to find a proper solutions to not only promote FDI but also achieve sustainable development, without repeating the mistakes of rapid but unsustainable growth which damages the ecological environment and exhausts the natural resources. As a result, the study of the FDI sector in the high-tech farming, sustainable agriculture and green industry in Vietnam is really valuable for the Government to understand the current situation and then take appropriate actions if necessary (Ninh, N. H. et al, 2015) 3.2. The Foreign Direct Investment in developing high technology farming The agriculture industry in Vietnam has started to change its management mechanism since the Resolution 10, in which the key reform is the Rule 10 (1988) with an aim to recover the subsistence agriculture where resources for growth is all locked down, ownership, management and distribution are inconsistent with the nature and level of development of production forces. After the Doi Moi, the period from 1989 to 2014 has witnessed asocio-economic breakthroughs in the agricultural sector which can be considered as the greatest success of Vietnam's economic renovation. For nearly 30 years, agriculture sector and rural areas did and continue to play a key role in developing the economy. Up to now, about 70.4% of Vietnam's population lives in rural areas, over 60% of households rely on agriculture as their main economic activities and over 53% of the labors are working in the agricultural sector. Howerver, the contribution of this industry has continued to drop sharply from about 46.3% of total GDP in 1988, to 20.3% in 2007, 18.4% in 2014 and 15.38% in 2017. The relationship between ecological environment and agriculture industry are closer than that of any other manufacturing industries. The soil, water and air environment are the prerequisite for the establishment, existence and development of any agriculture sectors. On the other hand, agricultural manufacture activities will directly affect the status of the natural environment through its impacts on soil, water and air environment. The agricultural production is one of the main sectors which causes large greenhouse gas emissions and worsen the climate change. The industry had major sources of greenhouse gas emissions including methane (CH4), nitrogen oxide (N2O), carbon monoxide (CO) and nitrogen oxide (NOx), greenhouse gas emissions from livestock and cultivation activities... It is reported that greenhouse gas emissions are increasing significantly in the livestock sector and estimated to reach 24.36 million tons in 2020. The factors such as quantity, weight of livestock herds, quantity and quality of the feed, waste control and treatment methods in livestock are the ones needed to be taken into careful consideration since they have the strongest effects on the greenhouse gas emissions of livestock industry (Nguyen Van Viet and Dinh Vu Thanh, 2014). Since Vietnam’s agriculture manufacture is really small, dispersed with backward technology, low productivity and low quality product, agriculture is the most sensitive and vulnerable sector in the process of international economic intergration. In addition, agriculture enterprises which had a long time relying on the subsidy from the government are unlikely to rise up in further competition. Therefore, the labor force in these companies may lose their jobs in agriculture and rural areas and people in disadvantaged areas that may suffer further negative impacts as a result of market opening. This can further widen the gap between the rich and the poor, and therefore negatively affecting the socio-economic development of the country. In the period while the agricultural sector is experiencing the indifference from the enterprise's investment decision, new opportunities are arising from the integration of the agricultural sector which will bring new capital flows, especially investments in the high-tech farming and using modern technology to support the agriculture. These are fields that Vietnamese companies are

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temporarily unable to manage due to unsufficient resources. The spillover effects from increasing investment in agriculture is really vital for Vietnam's economy as the burden of domestic agriculture is being shared. The FDI inflows in agriculture averagely accounted for 1.47% of the total FDI inflows during 2000-2013. Vietnam's agriculture is one of the sectors that has many potentials and advantages, but the flow of foreign investment capital (FDI) into agriculture, forestry and fishery is still relatively limited compared to the industry's demand. By the end of 2015, Vietnam attracted 530 valid FDI projects in the fields of agriculture, forestry and fisheries with a total registered capital of 3.7 billion USD, making up 2.9% of the total projects and 1.4% of total investment capital of the country). The average capital for the project in the agricultural sector is about US $ 7 million / project, FDI projects mainly concentrated on some areas such as afforestation, manufacturing wood and forest product, breed and processing of animal feed. Investment capital for agricultural and aquatic product processing sectors is very small. Figure 3: Investment structure in the agricultural, forestry and fishery sector by investment capital in the period 2007 – 2015

FDI Government area Non-state sector

Source: GSO Foreign direct investment (FDI) in sustainable agriculture in Vietnam is also at a relatively low level. As of June 20, 2017, the total FDI into agriculture was US $ 3.46 billion, with 516 projects, making up 1.1% of the total FDI (US $ 306.3 billion). Although Vietnam's agriculture has great potentials, it is still fragmented and small. This is due to the fact that the agriculture industry only attracted FDI on small projects, focusing on seafood and fruit processing in some local areas. Until now there are only changes coming from tax, land and capital policy which makes it even harder for agriculture to gain large capital inflows from foreign investment. What FDI enterprises are currently interested in is the growth of agricultural commodity chains and đất sống for organic agriculture to promote domestic consumption and export. By investment partners: Currently, the agricultural sector attracts more than 50 countries and territories to invest in Vietnam. FDI in agriculture mainly comes from Asian countries such as Taiwan, Japan, China, Thailand ... accounting for over 60% of registered capital, of which Japan is the leading country with 26%, followed by South Korea with 18%, Taiwan with 13% and there is no presence of countries with effective agricultural production such as the United States and European countries. In addition, some countries with strong agricultural development (USA, Canada, Australia, UK, Israel ...) have not invested in Vietnam’s agriculture.

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Figure 4: Foreign investment in Vietnamese agriculture by partners

Source: Foreign Investment Agency Recently, a number of big investors from Japan and South Korea has expressed their attention on Vietnam's agriculture since Vietnam is one of the ideal options with its diverse natural resources and favourable conditions for agricultural production. Since 2013, Japan has increasingly and strongly invested in Vietnam, in which the high-tech farming has been increasingly investigated and invested. At the end of 2014, Japanese investors went to Mekong Delta provinces to seek for investment opportunities in agricultural and aquatic products such as mango, rambutan, shrimp, fish ..., Moreover, in 2015 Japanese investors have cooperated and implemented breeding techniques and also introduced egg production and processing technology in Vietnam. Besides, up to now, many Japanese enterprises are interested in and decided to invest in growing vegetables and flowers in Da Lat (Lam Dong). FPT Corporation has recently collaborated with Fujitsu Corporation from Japan to bring modern application of information technology and telecommunications in agriculture to Vietnam. By investment area: it is reported that the capital inflows from FDI to agriculture are mainly concentrated in the Southeast region. The South accounted for 54% of the total registered capital of the industry, followed by the Mekong Delta with 13% and the South Central Coast wih 15%. In the North and the Central region, the investment capital is still very low, even at the Red River Delta region, the registered capital only made up 5% of the total registered capital of the whole country. According to the General Statistics Office of Vietnam, in 2015, while there were 8 projects with a total capital of 140 million USD in the Mekong Delta and the Northern region; the remote provinces still has not attracted any project. Each mountainous area from the North and the Central Highlands attracted only a few tens of million USD. This has significantly affected the restructuring process of agricultural and rural economy in the mountainous provinces, Central and Central Highlands. FDI projects in agriculture sector focused on the provinces with advantages of raw material, favorable soil and climate conditions, preferential treatment in investment policies such as Binh Duong, Dong Nai, Ho Chi Minh City, Lam Dong and Tay Ninh. The number of projects in these 5 provinces accounted for over 58% of the total number of projects in the whole country. These provinces/ cities have large and convenient transportation routes, diverse agricultural products, large garden area, and suitable investment policies which significantly facilitate the business activities of the big investors. According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI), in the period of 2013 - 2016, while the

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registered FDI for agriculture in the Southeast region made up nearly 70%, the remaining areas were only at 4-7% and the lowest one is the Northwest region with 0.3%. Structure of FDI in agriculture, forestry and fishery by sub-sectors: FDI inflows in the agricultural sector has been significantly different among sub-sectors where emphasis is placed on projects that can quickly recover the capital. Up to 53.7% of the total FDI was flowed into agricultural product processing industry and 24.7% is invested in processing forest products. FDI projects mainly concentrated on certain areas such as afforestation, manufacturing wood and forest product, breed and processing of animal feed. The investment in greenhouse systems, hydroponic systems, modern irrigation systems, management systems with information technology and new breed research are still small and limited. Agricultural processing is the leading industry which has the largest proportion in the structure of FDI capital into agriculture, accounting for 56.75% of the total registered capital and 63.2% of the total realized capital. The characteristics of these projects are mainly associated with developing raw material area... The majority of foreign investors who currently operate in the cultivation and processing of agricultural products in Vietnam are countries with developed agriculture such as Taiwan, USA, France. Although the registered capital in the livestock and food processing industry only accounted for 11.43% of the total registered capital in agriculture, the realized capital reached 14.66%, which is the second highest area after cultivation and processing agricultural products. 4. Discussions and solutions to promote foreign direct investment activities in high technology farming in Vietnam By analyzing the above situation, the authors expected that FDI attraction in areas such as high- tech farming, in companies that use modern technology, less consumable energy and in producing environmental goods can bring many benefits to the environment in Vietnam and help the country to achieve the target of green growth in the future. The acceleration of green FDI projects into Vietnam in this current period is extremely essential. However, the actual situation has showed that the number and size of projects in the field of high-tech farming did not match with the potential and strengths of Vietnam. As a result, attracting high-tech farming projects into Vietnam is of great importance in the current period, especially when environment pollution is becoming a matter of concern. To promote the foreign direct investment activities in developing the high- tech farming in Vietnam, the following methods should be implemented simultaneously: Firstly, Vietnam government should establish new policies for attracting FDI enterprises in high-tech farming development fields. Along with that, it is necessary to build a coordination mechanism among ministries, branches and localities to select and propose priority investment areas from the very first stage of investment attraction and promotion. In addition, building and developing infrastructure should be implemented for disadvantaged areas such as the Northwest, Central Highlands, mountainous areas, Central region, etc. By doing that, the government can regulate the FDI investment capital in the desired area and at the same time, investors can utilize their own advantages and strengths in each field and area to decide and create effective investment plans. Secondly, it is essential to continue promulgating and improving the system of legal documents to promote fair business environment, facilitate the foreign companies to invest through the one-stop mechanism, thus ensuring uniform and convenient inter-sectoral procedures as well as create the high-tech farming project’s standard to provide the basis for the investment. Thirdly, it is advisable to conduct research and promulgate mechanisms and policies to encourage the development of high-tech farming, such as investment credit (tax incentives),

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exemption or reduction of import tax, export tax, corporate income tax, land fees and land rent for high-tech farming projects ... Another problem is that foreign enterprises cannot develop high-tech farming without domestic enterprises providing equipment for the electricity production. Therefore, big investors are still seeking for strong domestic partners, as well as connecting with global companies to find equipment supplies to minimize the cost of electricity production. In fact, many large businesses in developed countries desire to buy energy that has 100% commitment to clean energy. And it is then obvious that Vietnam has huge opportunities to benefit from investing in high-tech farming. Fourthly, there must be a clear route and a more transparent policy on high technology farming. Recently, some foreign enterprises have decided to invest in high-tech farming after they are able to have a clearer understanding of the routes and direction of this field in Vietnam. Because high-tech farming is a sector that requires intensive capital investment, large corporations often have strict investment rules on this area. To ensure investment attraction, investors need to have an overview of the plan as well as transparent policies from the government to be assured before implementing the project. Fifthly, it is necessary to adjust the planning and improve the quality of human resource training to satisfy the implementation of projects in high-tech farming of FDI companies. Each locality and region should clearly explore the needs from each FDI project in the area to meet the specific demands of job, job group, job position. Last but not least, particular attention should be placed on increasing the media and communication work so that foreign investors can be informed about the orientations of government’s preferential policies for high-tech farming. This can confirm the consistence in the government policy in ensuring the legality of interests of foreign businesses and investors in this field. References 1. Prime Minister (2012), Decision No 1393/QĐ-TTg dated 25/09/2012. ‘Phê duyệt chiến lược quốc gia về tăng trưởng xanh’. 2. Prime Minister (2016), Decision No 428/QĐ-TTg dated 18/03/2016. ‘Phê duyệt điều chỉnh Quy hoạch phát triển điện lực quốc gia giai đoạn 2011 - 2020 có xét đến năm 2030 3. Nguyen Tien Dung (2018). Đầu tư trực tiếp nước ngoài với mục tiêu phát triển kinh tế bền vững của Việt Nam, Luận án tiến sĩ kinh tế, Trường Đại học kinh tế quốc dân. 4. Bui Quang Tuan, Ha Huy Ngoc, (2017). Chính sách quốc gia về tăng trưởng xanh ở Việt Nam, Tạp chí khoa học xã hội Việt Nam, số 10/2017 5. Ninh, N. H., Hop, H. T. B., & Duy, N. V. (2015). Phát triển nông nghiệp thông minh với khí hậu cho tăng trưởng xanh ở việt nam. 6. Nguyen, H. T., Duysters, G., Patterson, J. H., & Sander, H. (2009, October). Foreign direct investment absorptive capacity theory. Georgia Institute of Technology. 7. Vu, T. B., Gangnes, B., & Noy, I. (2008). Is foreign direct investment good for growth? Evidence from sectoral analysis of China and Vietnam. Journal of the Asia Pacific Economy, 13(4), 542-562.

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Digital Economy and Its Impacts on Vietnam’s Economy and Productivity

Dam Lan Nhi School of Information Technology and Digital Economics National Economics University

Abstract In recent years, we have witnessed the emergence of groundbreaking new technologies that change the way businesses operate, change the way people work together, communicate, consume and relax. The economy is in the stage of a digital revolution driven by 4.0 technology such as artificial intelligence, internet of things, block chain and cloud computing. The digital economy is growing fast and strong, especially in developing countries. So what is digital economy and how does it impact the functions of the economy? This paper summarizes the results of previous studies on the impacts of digital transformation on the economy and labor productivity in the world, thereby making assessments of the impact of digital economy on the economy and labor productivity of Vietnam. Keywords: Digital economy, productivity, Vietnam’s economy

1. Introduction Revolutions always create new opportunities and challenges. In recent years, we have witnessed the emergence of groundbreaking new technologies that change the way businesses operate, change the way people work together, communicate, consume and relax. Enterprises are forced to change in order to survive and thrive. E-commerce is growing fast, and businesses cannot ignore the potential online market channels such as Tiki, Shopee, Lazada and Sendo. Sharing economy models have flourished in many fields from transportation such as Grab, Be and FastGo ... to home sharing such as Airbnb and LuxStay. Businesses must also change to meet the new requirements of the economy. Whether this change will bring positive or negative effects on the economy and labor productivity, this paper will study researches of digital economy’s impacts on labor productivity in the world, thereby making assessments of the impact of digital economy on the economy and labor productivity of Vietnam. One of the first explanations on digital economy concept was brought up by Tapscott. He wrote that in the new economy, information in all forms will be digitized, converted into bits and stored in computers, racing at the speed of light through the network (Tapscott, 1994). According to the 2016 G20 forum report, digital economy refers to economic activities including the use of information and knowledge as a main factor in production, using the network as a vital operating space, and using information and communication technology (ICT) to improve productivity and optimize economic structure. New 4.0 technologies such as artificial intelligence, cloud computing, big data, internet of things... are used to collect, store, analyze and share information, and change the interaction in society. Information and communication technology will allow current economic activities to be more flexible and intelligent (G20 DETF, 2016). Labor productivity is one of the important indicators of a nation. Many studies in the world have analyzed the impacts of digital economy on labor productivity. The question is whether the development of the digital economy and the application of new information and

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communication technology will increase labor productivity. In the 1995s, the United States experienced a breakthrough in labor productivity improvement that the European countries could not reach. Most scholars and policymakers point to the disparity in investment in information technology and communications between the United States and other economic sectors. According to a 2019 study on the impact of digital economy on labor productivity in developing countries of Hawash and Lang, it is estimated that developing countries can improve the total factor productivity (TFP) growth rate in the range of 0.1% to 0.3% annually by increasing investment in Information Technology and expanding telecommunications networks. One of the reasons for this light impact figure is probably the recent spread of productivity decline from advanced economies to developing ones, which can be observed from the global financial crisis. If the overall trend of productivity growth is weak, individual factors like Information Technology cannot create a difference as significant as in a high growth environment. The lack of infrastructure, transportation or a stable supply of energy can prevent the exploitation of opportunities created by information and communication systems (Hawash & Lang, 2019). The following is a summary of recent world literature on the relationship between digital economic development and labor productivity:

Research Method Result The Productivity and Empirical analysis assesses the The analysis shows a positive Unemployment Effects of the correlation between digital and significant correlation Digital Transformation: an assets and various productivity between TFP and investment in Empirical and Modelling measures based on data from ICT, software and databases. Assessment (Bertani, Raberto, the United States and European & Teglio, 2020) countries. An international comparison The data aggregation method is The development of ICT in on TFP changes in ICT used in the same way as World China, South Korea and Taiwan industry among Japan, Korea, KLEMS and Asia KLEMS, was driven by inputs, while that Taiwan, China, and the measuring productivity using of the United States and Japan United States (Liang & Jheng, the translog production was driven by TFP. 2020) function. Does the digital gap matter? Using data from 76 developing Countries with high information Estimating the impact of ICT countries during the period from technology investment can on productivity in developing 1991 to 2014 in the regression increase TFP growth rates from countries (Hawash & Lang, model. 0.1% to 0.3% annually 2019) compared to countries with modest investment rates. Information technology’s Analyze studies on the impact There exists a relationship impacts on productivity and of ICT on economic activities between gross domestic product welfare: a review (Tisdell, and labor productivity. and investment in ICT; however, 2017) Empirical analysis of data by there are clear difference industry. between industries. The Productivity Paradox of Analyze data on the proportion The digital economy is still in the New Digital Economy of investment in ICT, labor the foundation-setting phase, (Ark, 2016) productivity index and GDP of and the impact on productivity the United States can only occur when technology enters the development phase.

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According to Data61's forecast, Vietnam's GDP can increase by $60.9 billion by 2045 under the normal scenario or $168.8 billion if Vietnam succeeds in digital transformation. Vietnam has various advantages toward digital economy including: good location as in the center of Asia; large working-age population; good network infrastructure; government support policy for digital development; high foreign direct investment FDI; main industry in agriculture, mining and manufacturing which can be applied and changed significantly by digital technology; high growth in the software business sector… (Cameron, and et al, 2019). In assess the implementation of the resolutions of the National Assembly on the socio-economic development plan and economic restructuring during the period 2016-2020, Deputy Minister of Ministry Planning and Investment Tran Quoc Phuong said that by 2020, the Vietnam’s GDP is estimated to reach 269 billion USD, an increase of 1.4 times compared to 2015. GDP per capita in 2020 is estimated at 2,750 USD, about 1.3 times more than in 2015. The remarkable highlight is that the labor productivity is clearly improved. The contribution of the total factor productivity (TFP) has increased, averagely in the period 2016 - 2020 is estimated at 45 percent, exceeding the target of 30 percent to 35 percent. Especially, Vietnam aims to reach $5,000 per capita income by 2025 (Tuoitre.vn, 2020). 2. Methodology To gain an understanding of the relationship between digital economy and labor productivity, this study uses qualitative method to synthesize similar research in the world and in Vietnam. Based on these findings, the article induces areas that Vietnam enterprises should focus on in order to reach productivity improvement goal in the Industrial Revolution 4.0. Qualitative methods offer an effective way of applying lessons into Vietnam’s situation. Qualitative methods can be useful for identifying and characterizing important areas for organizations in the digital economy as we are catching up the trend. In order to address the problem, the following steps were taken: First the article analyzes the development of digital economy in Vietnam by collecting data of the development of network infrastructure through government sources including the Ministry of Information and Communications. The article also assesses the development of digital economy in the market from the consumers’ side through the use of the internet in the population as well as the growth of e-commerce sites. Finally, the article provides an overview of the development of digital economy based on data collected from e-Conomy SEA, a multi- year research program by reputational companies including Google, Temasek and Bain & Company. The article analyzes the stage of Vietnam’s economy base on these data compared with other countries in the area. Second, the article analyzes the impact of digital economy on labor productivity based on data from GDP growth rate, internet economy values, and labor productivity growth rate for the recent years. Using the expenditure method to calculate GDP, the article analyzes the effects of the digital economy based on two factors including personal consumption and domestic investment. We use cases from businesses in Vietnam to analyze how digital economy affects consumption and investment which ultimately increasing labor productivity. A case-study approach was adopted to determine the factors that affect productivity. However, there are certain drawbacks associated with the use of qualitative research method. The limitation of this approach is that the articles does not provide a specific numerical rate for the impacts of digital economy on productivity, but only relationship between them.

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3. Results 3.1. The development of digital economy in Vietnam Good telecommunications network infrastructure and number of internet users are prerequisites for developing a digital economy. According to Cable's survey, Vietnam's bandwidth and internet speed are ranked 89th out of 207 countries in 2019. Download speed reached 7.02 Mbps, up from 6.72 Mbps in 2018 and 5.46 Mbps in 2017. However, compared to 2018, Vietnam has dropped 14 ranks. Taiwan and Singapore maintain the highest positions in the world. Vietnam's average internet speed is still slower than countries like Malaysia and Thailand, but it ranks higher than China, Indonesia, Philippines and Cambodia (Cable.co.uk). Vietnam is paying special attention to developing telecommunication network infrastructure and setting a goal to quickly deploy 5G networks. Thereby, all three of Vietnam's largest carriers including MobiFone, Viettel and VNPT are in the installation and testing phase to accelerate the deployment of 5G networks in three major cities including Hanoi, Ho Chi Minh and Hai Phong (Ministry of Information and Communications, 2020).

Table 1: Bandwidth and Internet Speed Ranking Rank 2019 Rank 2018 Rank 2017 Average Average Average Country - - - download download download 207 countries 200 countries 189 countries speed 2019 speed 2018 speed 2017 Taiwan 1 14 3 85.02 28.09 34.40 Singapore 2 1 1 70.86 60.39 55.13 Malaysia 30 48 63 23.86 13.30 6.69 Thailand 45 40 29 18.21 17.06 16.85 Vietnam 89 75 74 7.02 6.72 5.46 Indonesia 92 83 75 6.65 5.77 5.19 Philippines 97 89 87 6.05 5.18 3.69 Cambodia 122 103 98 4.03 4.10 3.10 Laos 146 98 124 2.92 4.29 1.94 China 152 141 134 2.69 2.38 1.55 Source: Cable, 2019 Vietnam is among countries with the largest number of internet users in the world. As of January 2020, according to the statistics of We are social and Hootsuite, Vietnam has more than 68 million internet users, accounting for 70% of the population, increased 6.2 million or 10% compared to January 2019. Compared to other countries in Southeast Asia, the percentage of the population using the internet is relatively high, larger than the world average (59%), and only lower to some developed countries of the region such as Singapore (88%) (We are social & Hootsuite, 2020).

Table 2: Number of Internet Users in Vietnam and Other Countries (01/2020) Country Number of internet users Percentage of population Vietnam 68.17 million 70% Singapore 5.14 million 88% Philippine 73.00 million 67% Indonesia 175.4 million 64% Thailand 52 million 75% World 4.54 billion 59% Source: We are Social and Hootsuite, 2020

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According to a research report of Google, Temasek and Bain & Company on the digital economy of Southeast Asia in 2019, Vietnam's Internet economy is in a period of rapid growth. Internet economies of regional countries such as Malaysia, Thailand, Singapore and the Philippines are growing rapidly from 20% to 30% per year. Vietnam emerged as a prominent digital region in Southeast Asia, reaching 12 billion USD in 2019 with an annual growth rate of 38% since 2015. Over the past four years, Vietnam's Internet economy has earned nearly $1 billion in financing, with 2019 being a record year (Google, Temasek và Bain & Company, 2019). Figure 1: Internet Economy

Source: Google, Temasek, Bain & Company, 2019

3.2. The impact of the digital economy on Vietnam's economy and labor productivity Based on the national statistical indicator system of the General Statistics Office of Vietnam, labor productivity is calculated as the gross domestic product averaged per employee in the reference period, usually the calendar year. Whereby:

Figure 2: Labor productivity

Source: General Statistics Office of Vietnam, 2020

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Vietnam's labor productivity has increased steadily over the years. In 2019, Vietnam's labor productivity is estimated to reach 110.4 million VND / labor. Thus, the labor productivity equivalent to $4,791/labor, an increase of $272 compared to 2018 (General Statistics Office of Vietnam, 2019).

Figure 3: Gross Domestic Product (GDP)

Source: World Bank, Trading Economics, 2020

Vietnam's GDP in 2019 achieved an impressive growth rate of 7.2%. Besides, according to the General Statistics Office, the total factor productivity (TFP) contributed 46.11% to the GDP growth. Thus, the average period of 2016-2019 reached 44.46%, much higher than the average of 33.58% in the period of 2011-2015 (General Statistics Office of Vietnam, 2019). Table 3: Vietnam's labor productivity growth rate and GDP (based on 2010 comparative prices)

GDP growth rate Internet economy Labor productivity Year (%) values (billion dollars) growth rate (%) 2014 5.98 2.97 4.90 2015 6.68 4.07 6.40 2016 6.21 5 5.31 2017 6.81 6.2 6.00 2018 7.08 8 6.00 2019 7.20 6.20 General Statistics Office Source WorldBank, 2020 Statista, 2018 of Vietnam, 2019

Labor productivity increased from 4.9% in 2014 to 6.4% in 2015. Year 2015 also recorded a significant growth rate of the digital economy. The wave of 4.0 technology such as artificial intelligence, the Internet of Things, block chain, and cloud computing brings the opportunity for Vietnam to turn into a highly efficient and advanced economy. In order to improve labor productivity, we need to increase GDP. Using the expenditure method to calculate GDP, we will analyze the effects of the digital economy based on two factors including personal

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consumption (personal consumption spending on goods and services), and domestic investment (business expenditure on equipment, buildings or construction, showing the future production capacity of the economy).

GDP = C + I + G + NX C: Consumption I: Investment G: Government spending NX: Net export

Digital economy affects consumption Digital economy creates new business models, changes consumers' habits and behaviors. The development of digital platforms can transform many economic sectors from e-commerce, transportation to tourism and entertainment. Figure 4: The Value of Vietnam's Internet Economy by Sector

Source: Google, Temasek and Bain & Company, 2019

E-commerce contributes to GDP growth and job creation. In Southeast Asia, the total volume of e-commerce goods accounts for 3.7% of the region's GDP, a 3-fold increase compared to 2015 (Google, Temasek và Bain & Company, 2019). In Vietnam in particular, e-commerce is growing at a rapid pace. In just 4 years, e-commerce grew from US $0.4 billion in 2015 to $5 billion in 2019 and is expected to reach $23 billion by 2025. Domestic markets include Sendo and Tiki compete strongly with global corporation such as Lazada and Shopee. Facing fierce competitions on e-commerce channels, businesses have had to launch frequent promotions, created new forms of advertising to boost consumption.

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Figure 5: The most popular e-commerce sites for online shopping in Vietnam in 2018

Source: Statista, 2018

Besides e-commerce, the sharing economy is built based on cloud computing, the basic structure of Digital Economy. Typically, technology companies such as Uber, Grab, and Be solve transportation problems. According to a research by Google, Temasek and Bain & Company, Vietnam's tech taxi market is expected to reach $1.1 billion in 2019 and is expected to quadruple by 2025. Not only transportation, companies also expand markets to good and food deliveries. Food delivery service GrabFood reported a 250-fold growth after one year of launching (Grab, 2019). Although there are still some issues related to legal corridors, it is undeniable that technology has contributed to improving efficiency, reducing customer waiting time, reducing driver idle time, optimizing travel distance, thereby improving productivity and labor efficiency. Over the years, sharing platforms have created competition for traditional taxi businesses, and traditional taxis are also changing business models, applying technology to develop their own platforms and mobile applications. In the future, the application of digital technology model will be inevitable of society.

In addition, the online travel market, hotel reservations and airline tickets through online channels such as Booking.com and Agoda.com continue to maintain their position. Year 2019 continues to witness the explosion of home sharing models, highlighted by Airbnb or LuxStay platforms. The annual growth rate of rental houses on Airbnb in Ho Chi Minh City is 97%, in Hanoi is 112%, and in Da Nang is 111% (Outbox Consulting, 2019). The new business model helps increase personal income and create added value for the tourism market in Vietnam. Netflix (online movie streaming service) has also started to reach Vietnam market since 2016 and gradually became popular, affirming its position. Vietnam's tourism and online entertainment market is estimated to reach $7 billion, accounting for nearly 60% of the value of online transactions in 2019 (Google, Temasek và Bain & Company, 2019).

Digital economy affects enterprise investment ICT Industry revenue in 2019 is estimated at $110 billion, up 9.8% compared to 2018, providing jobs for more than 1 million workers (Ministry of Information and Communications, 2019). Vietnam's cloud services market is expected to increase from $165 million in 2018 to $291 million in 2024, with a growth rate of over 10% in the period 2019-2024 (Research and Market, 2019). Vietnamese businesses investing in digital technologies can reduce costs, increase

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productivity, and enhance management through a high improvement in the ability to collect, transmit, process and analyze data using sophisticated algorithms.

Artificial Intelligent (AI) and automation systems have shown spectacular advances in recent years. Computers and robots can solve complex problems by using self-made strategies without human assistance. Domestic technology companies have begun to participate in the AI technology market. FPT software technology company of Vietnam considers AI to be one of the key technology areas for strategic direction. In 2018, FPT is the first enterprise in Vietnam to possess a comprehensive artificial intelligence platform FPT.AI, offering solutions to speed up data processing automation while minimize cost (FPT, 2019). In 2019, Vinfast Group, at the forefront of the Industrial Revolution 4.0, inaugurated Vietnam's first automobile factory with a continuous and automated production process using thousands of robots (Vinfast, 2019).

Internet of things (IoT) refers to the development of internet-connected devices such as sensors or radio frequency identification chips embedded in everyday objects, allowing them to send and receive data. IoT is widely applied in many fields including tagging for goods in production, tracking of agricultural land and weather conditions. From there, the information is analyzed, and an optimal decision is made to improve efficiency in production. Vietnamese Telecommunications and Information Technology companies such as Viettel, VNPT, FPT and CMC are all investing in IoT. Cau Dat Farm is a typical enterprise that succeeds in growing a clean vegetable model using Intel's IoT application smart system, integrate farm management with full automation (Cau dat farm, 2019). Global Daikin Group also invested in building a factory in Vietnam combining IoT test system technology, considered as one of Daikin's most modern factories with the goal of producing one million products in 2020 with 1500 employees (Daikin, 2018).

5. Discussion and Conclusion The development of digital economy is indispensable in the period of globalization. Digital economy creates new business models, new products and services. Although there is not enough data to prove the close relationship between digital economy and labor productivity; However, the wave of digital technologies including artificial intelligence, the Internet of Things, cloud computing, and block chain... has the potential to turn Vietnam into an efficient economy, increase productivity and improve the living standards of the people. In order to escape middle- income class and reach high-income status, Vietnam needs to step away from being a cheap labor market, and digital transformation could be the key. Vietnam has the advantage of a consumer market that is ready for the digital economy, a relatively high percentage of population using the internet frequently and strong network infrastructure. It is important for the government to create policy and tax incentives for companies to invest in digital technologies in order to increase efficiency and productivity. As forecasted by Data61, in the scenario that digital economy is booming, 38.1 percent of current jobs is at risk of transformation or disruption (Cameron et al., 2019). Thus, as the whole society is changing, it is very important to prepare for the labor force new skills to adapt with these changes. Improve information technology infrastructure  Improved fiber optic infrastructure for the backbone network.  Invest in next generation infrastructure such as testing and deploying 5G technology.  Invest in Smart City technology, providing e-government services.  Invest in network security.  Promote investment in digital technology.

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Prepare digital skills for the labor force  Set objectives for digital development in national scale. Provide education, especially in the area of science and engineering. Integrate basic knowledge of ICT skills in schools and for entire population.  Recognize and encourage creative and entrepreneurship culture.  Develop contingency plans for workers who are replaced by automation and digitization. We also need to recognize that Vietnam's barriers and challenges are still very high to transform in the digital industry, and Vietnam still faces many difficulties and limitations. The number of micro, small and medium companies accounted for 98.1% of the number of enterprises according to statistics in 2017 (General Statistics Office of Vietnam, 2018). Enterprises with limited capital will find it difficult to access and apply new technologies. Besides, we need to prepare the skills and capabilities to implement and manage Industry 4.0 systems and technologies. The growing demand for digital products and services means that more investment in education, digital skills, and business skills is needed so that Vietnam can catch up with the world. With a young and vibrant population, Vietnam definitely has the opportunity to thrive in the new emerging digital economy, improving productivity and living standard. References 1. Ark, B. (2016). The Productivity Paradox of the New Digital Economy. International Productivity Monitor , 31, 3-18. 2. Bertani, F., Raberto, M., & Teglio, A. (2020). The Productivity and Unemployment Effects of the Digital Transformation: an Empirical and Modelling Assessment. 3. Cable.co.uk. (n.d.). Cable.co.uk. Retrieved 03 2020, from Worldwide broadband speed league 2019: https://www.cable.co.uk/broadband/speed/worldwide-speed- league/#regions 4. Cameron, A., Pham, T. H., Atherton, J., Nguyen, D. H., Nguyen, T. P., Tran, S. T., et al. (2019). Vietnam's future digital economy: towards 2030 and 2045. Queensland: CSIRO, Brisbane. 5. Cau dat farm. (2019, 04 04). Cau dat farm. Retrieved 03 2020, from Vào cầu đất Farm ngắm trang trại nông nghiệp. Available at: https://caudatfarm.com/blogs/goc-bao- chi/vao-cau-dat-farm-ngam-trang-trai-nong-nghiep-thong-minh 6. Daikin. (2018, 05). Daikin. Retrieved from Daikin officially opens the air-conditioning factory in Vietnam: https://www.daikin.com.vn/en/news/2018/daikin-officially-opens- the-air-conditioning-factory-in-vietnam 7. FPT. (2019, 5 6). FPT. Retrieved 03 2020, from FPT kết nối chuyên gia quốc tế thúc đẩy ứng dụng trí tuệ nhân tạo tại Việt Nam: https://www.fpt.com.vn/vi/tin-tuc/chi-tiet/fpt-ket- noi-chuyen-gia-quoc-te-thuc-day-ung-dung-tri-tue-nhan-tao-tai-viet-nam 8. G20 DETF. (2016). G20 Digital Economy Development and Cooperation Initiative,. G20 Digital Economy Task Force. 9. General Statistics Office of Vietnam. (n.d.). General Statistics Office of Vietnam. Retrieved 3 2020, from Số liệu thống kê: https://www.gso.gov.vn/default.aspx?tabid=714 10. General Statistics Office of Vietnam. (2019, 12 27). General Statistics Office of Vietnam. Retrieved 3 2020, from Thông cáo báo chí về tình hình kinh tế - xã hội quý IV và năm 2019: https://www.gso.gov.vn/default.aspx?tabid=382&idmid=2&ItemID=19453

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Digital Transformation: Opportunities and Challenges for Vietnamese Enterprises

Vu Hung Hai School of Information Technology and Digital Economics, National Economics University

Abstract In recent years, the Industrial Revolution 4.0 has attracted considerable public attention over many media platforms. The revolution is happening remarkably fast as new inventions or applications may take only a few months to spread around the world instead of decades as it was in previous waves. Digital transformation is currently one of the most important subjects for organizations and businesses. Industry 4.0 has been changing organizations’ operation and production, affecting all aspects of socio-economic life. In Industry 4.0, traditional businesses are required to change in order to survive. The entrance into Industry 4.0 is considered as transforming from traditional to digital model or undergo Digital Transformation. This article analyzes the opportunities and challenges of digital transformation for businesses in three aspects including enhancing operation by utilizing new technology, analyzing and collecting data for better decision making, and creating new customer experience and new sales channels. The article also suggests solutions for businesses to seize opportunities for digital economic transformation in the Industry 4.0 in Vietnam.

Keywords: Industrial revolution 4.0, digital transformation, Vietnamese enterprises

1. Introduction The current Industrial Revolution 4.0 has created many new concepts such as globalization, digital economy, digital transformation, sharing economy… The revolution is happening remarkably fast as new inventions or applications may take only a few months to spread around the world instead of decades as it was in previous waves. Multinational organizations can make direct impacts and crush single-country businesses with their ability to attract billions of dollars in investment and multi-service ecosystems. Nowadays, traditional school education needs to compete with online institutions, traditional transportation companies may be replaced by technology enabled company such as Grab or Uber. Thus, in order to survive in the new environment, digital transformation is currently one of the most important subjects for organizations and businesses. Digital transformation is described as the total social impact of digitization. Industrial Revolution 4.0 has created both better opportunities and major challenges for companies to renovate and change current business models. In order to lead the market, companies need to understand changing consumption patterns, new socioeconomic structures, latest legal and policy measures as well as cultural barriers... We can say that digitalization is one of the main change driven factor in this era. The paper will analyze the trend of indispensable transformation in the digital economy as well as challenges and opportunities associated with the digital economy for businesses, then suggest solutions for businesses to seize opportunities for digital economic transformation in the Industry 4.0 in Vietnam. Digital transformation concept There are many different definitions of digital transformation or digital revolution. Put simply, it is the changes due to the application of digital technology to all aspects of the economic and social

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life or the use of computer software for general business activities. This digitization trend brings numerous benefits for businesses such as improving business processes, shortening work time, increasing business control and managing risks… Digital transformation is the change related to the application of digital technology in all aspects of human society. According to Cap Gemini, a leader company that is known as the pioneer of digital transformation, it is characterized by the rising penetration of digital technologies into every aspect of business life. More than the technologies, the real fascinating phenomenon is how corporations and public institutions are using these technologies to profoundly renovate all parts of their business (Capgemini, 2011). The following tables show some literature reviews of digital transformation’s definition:

Table 1: Definition of Digital transformation

Publication/Author Definition Iscoop Digital transformation leverages technologies to create values and new services for various stakeholders (customers are considered the most important part), innovate and acquire the capabilities to rapidly adapt to changing circumstances. Salesforce Digital transformation is the development of using digital technologies to build new or adjust existing business processes, culture, and customer experiences to satisfy shifting business and market needs. International The digital transformation framework involves the integration of Journal of factors such as businesses and customers across all value-added chain Innovation segments, and the application of new technologies. As such, digital Management / transformation requires skills that involve the extraction and exchange Schallmo, Williams, of data as well as the analysis and conversion of that data into actionable & Broadman, 2017 information. In order to increase the performance and reach of a company, digital transformation involves companies, business models, processes, relationships, products, etc. Leading Digital: Digital transformation is the use of technology to radically improve Turning Technology performance or reach of enterprises. Executives in all industries are Into Business using digital advances such as analytics, mobility, social media and Transformation / smart embedded devices as well as improving their use of traditional Westerman, Bonnet, technologies such as ERP to change customer relationships, internal & McAfee, 2014 processes and value propositions SAP Digital transformation is a fundamental rethinking of customer experience, business models, and operations. It's about finding new ways to deliver value, generate revenue, and improve efficiency – and companies are using innovative technologies to do it.

Customer behavior trend Digital technology impacts the entire shopping experience of a consumer, from searching product information, comparing prices across multiple channels and agents, to purchasing channels and after sales service requirements. Businesses need to harmonize their distribution channels with more creative model to integrate both online and traditional channels, creating a convincing multi-channel experience for customers.

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Impacts of digital transformation According to Iscoop’s model, digital transformation makes strong impacts on some certain areas such as business activities, processes, models, organizational cultures and customer approaches. Digital technologies are supporting tools and parts of the basic operation. It should not be the only solution to address any aspect of the human being, from worker satisfaction to enhancing customer experience (I-scoop): Business activities/functions: All core business functions from marketing, production, human resources to accounting and finance will be impacted by new digital technology. Business processes: One of the main goals for business during digital transformation is to optimize its business processes, shortening the business processes and integrating more customers’ interactions through all parts of the processes. Business models: In order to adapt with the new environment and changing in the customers’ demand, it is important for business to start from transforming its business models. Organizational culture: Employees are still the people who bring success for a company. In order to take full advantage of the new technology and be able to integrate new technology in its business processes, it is important not only to launch new information technology and operations, but also to change the company’s cultures and collaboration. Customer approaches: Digital transformation emphasizes on customer experiences and strategy more than technology. Thus, all activities should be developed toward customer centricity and user experiences. Figure 1: Digital transformation is a complete change of business model and organization by digital information

Source: Urbach & Roglinger, 2019 Benefits of digital transformation First, companies can take advantage of new technology to operate more effectively, automate processes, increase accuracy and finally lower production and delivery costs. Besides, digitalization will help company deliver better customer experience with added-value products

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and services. Companies can make better decision by advanced data collecting method, large storage and powerful analysis capacity. Since companies adopt new technology, it will improve the employees’ skills as well as collaboration. Ultimately, the company can become more profitable by lowering costs and increasing revenues.

Benefits of digital transformation

Better More Better Effective operation Lower costs customer revenue internal experience streams collaboration

Digital transformation technology Digital transformation will help businesses change their business model by applying technologies such as Internet of Things (Iota), Big Data, and Cloud Computing... to innovate the way we work with customers and partners. This process will also change the working habits of the employees, from having to depend on traditional documents (paper invoices, printing reports ...) to using electronic invoices. Below is an overview of a wide range of key technologies in digital transformation, namely ERP solution, cloud computing, Internet of Things, Big data, Artificial Intelligence, Block chain, E-commerce, Internet 5G and etc.

Figure 2: Digital transformation technology

Source: Futurism technology, 2019

According to Vincent Chen - Global Director of Public Policy Advisory Division of BCG, (Boston Consulting Group) digital transformation consists of three levels. The first level is the changes made by the government when applying IT to e-government. Next is the application of IT in activities of people, and then of businesses. The digital transformation concept covers all three levels (baomoi, 2018). At the Vietnam Finance 2018 conference "Digital transformation in the Finance sector" on September 26, 2018, Deputy Minister of Information and Communications Nguyen Than Hung also clarified the concept of digital transformation. He said that at present, the concept of new digital transformation is mentioned in a narrow scope, understood as digitizing and applying IT to promote production development and service provision. The world

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is entering the 4.0 Industrial Revolution, building a digital government towards a digital economy. Vietnam is not out of that trend; good implementation of digital transformation will help Vietnam be proactive in the Industrial Revolution 4.0 towards a smart country.

2. Methodology The study uses qualitative analysis in order to gain insights into digital transformation processes. We first collect data to analyze the Vietnam’s digital transformation stage from the government sources and renowned companies’ research reports. We also discuss statistics of global cases of digital transformation then applies its relevant finding for Vietnamese market. As Vietnam is still in the early stage of digital transformation, this method is used to provide a big picture of digital transformation globally so that we can see opportunities it can bring for Vietnamese companies. We collect and study research and articles from which the results are inductive. Potential limitation of the research is that the scope of this thesis may be too broad.

According to Cisco’s research of Digital Maturity in Asia Pacific Area, in Vietnam, small and medium enterprises are investing in cloud technology (18%), network security (11%), and upgrading software and hardware (18%). However, at the same time, they are facing barriers in the transformation process such as lack of digital skills and mindset (17%), lack of enabling technolgies (12%), and lack of digital thinking to start the process (14%).

Figure 3: Vietnam’s digital stage

Source: Cisco, 2020

According to the Ministry of Information and Communications, Vietnam has a large technology business community with about 43,000 businesses operating in the ICT industry and about 17,000 businesses trading and distributing products and solutions in this field. Vietnamese enterprises strive to gradually master technology, proactively design and manufacture products, proactively create new services, solutions and business models (Vietnamnet, 2020).

According to a research by Deloitte on digital cooperation tools, majority of employees participated in the survey agree that digital cooperation tools help them in both improving productivity and communication (Deloitte, 2013).

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Figure 4: Percentage of employees who agree that digital cooperation tools improve productivity and communication.

France UK Italy Germany

74% 71% 65% 62% 57% 54%

43% 43%

Increase Productivity Improve quality of communication

Source: Deloitte, 2013

According to McKinsey’s survey on successful companies in the transformation process, they all deploy much more digital technologies than normal.

Figure 5: Technologies used by organizations

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Traditional web Cloud-based Mobile internet Big data and big Internet of Things technology services technologies data architecture

Respondents at companies with sucessful transformations All other respondents

Source: McKinsey, 2018 3. Results The fourth industry revolution is happening in all fields and all aspects of businesses, and companies cannot stay out of this trend. Digital transformation is vital and is also an opportunity for companies to change, to grow and expand its customer segments. The following section will discuss opportunities and challenges of digital transformation for organizations in three aspects including the capacity to enhance operation, the chance to

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improve customer experience and the boosted capacity to collect and analyze data for decision making and better competitive advantage. Figure 6: Opportunities and challenges for organizations in digital transformation

Automation Enhanced Robots Operation Sensors Collaboration Improved Social network Customer E-commerce Experience New ways of Analyze interactions Cloud computing and Big data collect Internet of Things data

Source: Author’s elaboration

Enhance operation by utilizing new technology Digital transformation will provide great opportunity to increase productivity and efficiency in operation. Some outstanding technology of the Industry Revolution 4.0 to support production includes but not limited to drones, robots, sensors, and artificial intelligence. Drones or unmanned aircraft systems (UAS) is a small-size flying aircraft that is controlled remotely, carrying different sensors and GPS to complete diverse tasks (Rouse, 2019). Drones are powerful tools applying for military purpose as well as for businesses and consumers. According to a research by Goldmansachs, the market for drones is expected to reach $100 billion by 2020, and the fastest growing segment is from business and civil governments (Goldmansachs, 2016). The drones start to be widely used in the agriculture and production fields. For instance, with the help of a drone, a farmer can inspect thousands square meters of farmland in a day, generating faster and more accurate data than planes or satellites. In Vietnam, drones can be used to apply for the solar energy development. The warranty check that the investor requires to carefully examine each solar panel of the factory is completed in a shorter time compared with manual labor. The test usually takes a few weeks by human but can be shortened to a day or two by drones. Once all construction data or images have been collected with the drones, the technical experts will complete the data analysis and generate a detailed, clear report in just a few days. The process of identifying modules with warranty issues is 1000 times faster (The Industry and Trade Magazine, 2020). Collaboration is vital to any organization, and companies can enable collaboration tools for better connection within the organization. Different from traditional technologies, digital transformation allows for a larger number of participants and for much more diversified activities to do in an online cooperation environment. There are many technologies that allows employees to work in different places together such as telepresence which creates an environment of a meeting rooms with big screen and mimics the presence of people on the line as someone in the meeting room. Thus, it helps save companies millions from travelling time and money expenses. Besides, there are many technologies to help share documents and files safely. The year of 2020 also witnesses for the first time in the history the rise of the Covid

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pandemic – a type of virus that is easily to spread, requiring to distance people. Companies are now able to deal with the situation by allowing employees to work at home, using several technologies to corporate such as video meeting like Zoom or Microsoft Teams. Companies can also take advantage of several online platforms to communicate such as Facebook, Vibe, WhatsApp… to keep in touch with its employees. Digital collaboration tools provide vital method to employ to the fullest extent of the organization’s talents.

Analyze and collect data for better decision making We can say that the 4.0 Industry era is all about data and data analysis technology. According to Deloitte’s survey, nearly 50% of participants consider that the most important advantage of owning data and using analytics is its role in better decision-making ability (Deloitte, 2013). Global companies such as Facebook or Google save huge amount of data from its billion users, and data becomes one of the main assets of these companies. Digital transformation comes with powerful data analysis technology such as Internet of Things, Big Data, and Cloud Computing. Compiling large amounts of information from different sources makes Big Data a very strong tool for making business decisions, recognizing behaviors and trends much faster and better than the traditional way. For instance, Big Data starts to penetrate the financial institutions for analyzing customers. For the banking industry, data analysis simplifies the process of tracking and evaluating credit customers based on large amounts of data such as information, personal records and other confidential information. With the help of Big Data, banks can track customer behavior and identify the necessary data sources to collect for solutions. Banks can first analyze the spending habit of customers then classify its customer segmentation and appraise their profiles. Based on the existing bank database, the bank can attract or retain customers by introducing and cross-selling other services. After obtaining customers, the bank can improve service quality through building a system to collect and analyze customer feedback (Tap chi ngan hang, 2020). In Vietnam, VIB officially announced as the pioneer bank to successfully apply Big Data and Artificial Intelligence to bring the experience of opening a credit card completely online with record approval time less than 30 minutes. They expect that in the next three years, up to 85 percent of customers will open cards completely online, promoting faster cashless society in Vietnam (VIB, 2020).

Create new customer experience and create new sales channels Customer centric plays an important role in digital transformation. First of all, digital technology has created significant changes in consumer habits. Together with the development of the internet, mobile devices and millions of new applications everyday, customers now have many more ways to shop and receive experience. Companies can create online sales channel without physical stores and are able to access to global customers. Thus, companies which are leading in digital transformation can retain customers’ loyalty by developing integrated tools to meet all customers’ need for products. As customers are changing their way of purchasing and using services, companies also need to change its model in order to adapt with the new environment. We can see major changes especially in the financial sector. Many banks have initially transformed their operating models, products and services into true digitalization. For instance, Tien Phuong Commercial Joint Stock Bank launched automatic bank LiveBank; Vietnam Joint Stock Commercial Bank for Industry and Trade deploys new generation Corebank and modern Enterprise Data Warehouse system; Military Joint Stock Commercial Bank uses Chatbot virtual assistant application serving 24/7 on social networks (Bnews, 2018). VietcomBank just launches Digital Banking applications, a new platform for diverse banking

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transaction services such as transferring money, paying utilities, paying through QR code... It is a unified platform between Internet Banking and Mobile Banking, providing a seamless and unified experience for customers on electronic media such as computers (PC / Laptop) and mobile devices (phone / tablet). In Vietnam, Grab launches the Deliver Doodles app that combines artificial intelligence technology for customers to order food based on children's drawings, creating creative playing platforms for customers’ family.

Digital transformation provides great opportunities for companies to improve operation, enhance data management and increase customer satisfaction and loyalty. However, since it is the chance for all businesses, it will also be the challenge for companies who fail to catch the trend in time. Digital transformation is necessary and essential for all types of organizations in order to survive and thrive. At the same time, in order to succeed in digital transformation, companies need to be aware of several challenges to have suitable methods to coop with them. As there are many new technologies, new models and new processes, companies need to prepare budgets and choose the most suitable one to take. The challenge will come together with the difficulty level of all technology integration. Besides, when planning for digital transformation, organizations must take into account the cultural changes they will face as their workers and organizational leaders need to adopt and rely on unfamiliar technologies. Changing culture will always be more challenging than changing technology. The digital transformation has created unique market challenges and opportunities, as organizations must compete with ingenious competitors who take advantage of the low entry barriers in the technology market they offer.

4. Recommendation The world today is facing with global climate change and global health crisis... which are both challenges and obstacles but also an impetus for countries and businesses to move forward. The Vietnamese government has had many policies to encourage, support and urge the business community to shift toward digital transformation, turning challenges into opportunities. The government itself has also integrated this trend into its public service operations. They built a portal of public services, customs declaration, electronic tax, electronic invoices, and non-cash payments. In the recent Covid pandemic, the education sector has successfully implemented online teaching and learning. The rate of sales and purchases through e-commerce has been rising significantly. In 2020, as a key player of ASEAN organization, Vietnam has organized ASEAN high-level conferences. The National Assembly successfully organized the AIPA through online meeting by early awareness and deployment of technical infrastructure. In the 4.0 revolution and the rapid and extraordinary changes on the global level in the field, Vietnamese enterprises face the challenge of "innovation or death". Thus, the digital transformation should not be just a policy or slogan, but actions need to come more urgent than ever. In order for businesses to transform digital successfully, we propose a number of key areas that companies should focus on including transform services and products, optimize operation and empower labor force. - Transform products and services: The demand comes from customers who currently expect a simple and intuitive shopping experience. With the fast development of digital economy, customer expectation and experience have been changing toward doing all activities through online platforms such as learning remotely, shopping online, and working from home. Thus, in order to keep product competitive and attract customers, companies first need to transform its products and services. Companies can upgrade traditional products with additional features and services to differentiate their brands based on new information elements and ways of

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interacting. Companies can utilize new technology to create new products and services to generate new revenue streams. Vietnam's digital technology enterprises should develop toward the strategy of Made in Vietnam products, proactively design and manufacture products, independently from foreign businesses. - Optimize operation: To digitalize, businesses must start from changing perceptions, taking data as the foundation, fundamentally changing the way businesses operate. Data analysis, machine learning, and other technologies provide businesses with valuable new ways to rebuild processes with the goal of reducing costs, reducing cycles period of time or increase in quality. In just a short time, the application of technology platforms has helped increase 20% of customers for traditional taxis, save 50% in logistics costs for retailers, increase from 3 to 7 times of card payment transactions for retail banks (Bnews, 2019). Some certain fields that Vietnam can utilize the digital technology are agriculture, production and education. Digital transformation in the industrial production sector need to focus on building smart factories, operating smart, creating smart products and building services for data. To develop a high-tech industry for smart agriculture, companies need to consider to increase the proportion of agriculture technology including: building big data systems on land, crops, livestock and fisheries; building an integrated ground and air observation and surveillance network for agricultural activities; promoting the integration of information on environment, weather, and soil quality to improve crop productivity and quality. In education, institutions can consider creating the platform to support distance teaching and learning, thoroughly apply digital technology in management, teaching and learning, and digitize documents and textbooks. Schools can combine a teaching model including both online and remote learning (Ministry of Information and Communications, 2020) - Empower labor force: In order to lay the foundations for digital transformation, companies can begin to build cultures that adapt to changes. Only if the leaders understand the importance of digital transformation, emphasize and actively change the culture of the organization, the digital transformation can be successful. By frequent communication, leaders would empower and reinforce employees to work in a new way. A set of flexible teams across organizational boundaries that share ideas and information with one goal in mind will be the foundation for transforming with new ways of working and exponential growth. Besides changing the culture, it is important for companies to provide tools and specific targets for its workforces. Together with the development of new technology, people will need new skills to interact and work with these new systems and processes. It is very important for companies to constantly provide training courses to improve new skills for their core labor force. At the same time with initiating new technology, companies need to redefine the roles and responsibilities of each position so that they align with the objectives of the transformation. In a furiously competitive environment, companies do not only have to face with local competitors, new entrance but also global corporations. If a company does not react quickly, its competitors will be. Thus, businesses need to start quickly and need to be determined to continue this journal. Companies that lead the trend with digital technology will have the chance to capture the market.

5. Conclusion Above are some of the key aspects of businesses covered in digital transformation. Digital transformation is not just about digital technology but a transformation that digital technology helps people to solve traditional problems. Digital applications open new forms of innovation

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and creativity in an entire field instead of just upgrading and supporting traditional methods. In the business context, digital transformation can be understood as the process of transforming from a traditional business into a digital enterprise by changing operation, company culture, and working processes... In order to be successful in digital transformation, businesses need to convert the traditional way of thinking, create experiences for customers and incorporate those experiences into their processes and strategies. We suggest companies to start their digital transformation journal with 3 pillars:  Transform products and services.  Optimize operation.  Empower labor force. The Vietnamese market is large enough with nearly 100 million people. Vietnam has the aspiration to rise through digital transformation with the introduction of new digital services in diverse areas. The digital transformation has the potential to accelerate and guide the global social transformation. References 1. Annacone, A. (2019, 6). The 4 Types of Digital Transformation. Retrieved 9 2020, from https://www.linkedin.com/pulse/4-types-digital-transformation-andrew-annacone/. 2. Baomoi. (2018, 10). Chuyển đổi số: Quan trọng nhất là thay đổi tư duy, cách tiếp cận. Retrieved 9 2020, from http://vietnamnet.vn/vn/cong-nghe/tin-cong-nghe/chuyen-doi-so- quan-trong-nhat-la-thay-doi-tu-duy-cach-tiep-can-480791.html. 3. BCnews. (2018, 11). Retrieved 9 2020, from https://bnews.vn/so-hoa-ngan-hang-de- thay-doi-mo-hinh-kinh-doanh-truyen-thong/100069.html. 4. Bnews. (2018, 11). Số hóa ngân hàng để thay đổi mô hình kinh doanh truyền thống. Retrieved 9 2020, from https://bnews.vn/so-hoa-ngan-hang-de-thay-doi-mo-hinh-kinh- doanh-truyen-thong/100069.html. 5. Bnews. (2019, 10). Để số hóa, doanh nghiệp nên bắt đầu từ đâu? Retrieved 9 2020, from https://bnews.vn/de-so-hoa-doanh-nghiep-nen-bat-dau-tu-dau/137783.html. 6. Capgemini. (2011). The challenges of the digital revolution. 7. Cisco. (2020). Asia Pacific SMB Digital Maturity Study. 8. Deloitte. (2013). Deloitte Touche Tohmatsu Limited. Retrieved 2020, from The Analytics Advantage We’re just getting started: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Deloitte- Analytics/dttl-analytics-analytics-advantage-report-061913.pdf. 9. Deloitte. (2013). Digital Colloboration: Delivering innovation, productivity, and happiness. London. 10. Futurism technology. (2019, 11). Retrieved 9 2020, from The Meaning and Importance of Digital Transformation: https://www.futurismtechnologies.com/blog/importance-of- digital-transformation/. 11. Goldmansachs. (2016). GoldmanSachs. Retrieved 2020, from Drones - Reporting for work: https://www.goldmansachs.com/insights/technology-driving-innovation/drones/. 12. I-scoop. (n.d.). Digital transformation: online guide to digital business transformation. Retrieved from https://www.i-scoop.eu/digital-transformation/.

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13. Iscoop. (n.d.). Digital transformation: online guide to digital business transformation. Retrieved 2020, from https://www.i-scoop.eu/digital-transformation/. 14. Iscoop. (n.d.). Retrieved 8 30, 2020, from Digital transformation: online guide to digital business transformation: https://www.i-scoop.eu/digital-transformation/. 15. McKinsey. (2018, 10). Unlocking success in digital transformations. Retrieved 9 2020, from https://www.mckinsey.com/business-functions/organization/our- insights/unlocking-success-in-digital-transformations#. 16. Ministry of Information and Communications (2020). Cẩm nang chuyển đổi số. 17. Rouse, M. (2019, 07). Techtarget. Retrieved 09 2020, from Drone (UAV): https://internetofthingsagenda.techtarget.com/definition/drone. 18. Salesforce. (n.d.). What Is Digital Transformation? Retrieved 2020 19. SAP. (n.d.). What is digital transformation? Retrieved 09 2020, from https://www.sap.com/sea/trends/digital-transformation.html. 20. Schallmo, D., Williams, C., & Broadman, L. (2017). Digital transformation of business models - Best practices, enablers, and roadmap. International Journal of Innovation Management , 21 (8). 21. Tap chi ngan hang. (2020, 6). Big Data và ứng dụng trong hoạt động ngân hàn. Retrieved 9 2020, from http://tapchinganhang.gov.vn/big-data-va-ung-dung-trong-hoat-dong-ngan- hang.html. 22. The Industry and Trade Magazine. (2020, 05 28). Drone và trí tuệ nhân tạo AI được sử dụng trong khảo sát - phân tích dữ liệu nhà máy điện mặt trời. Retrieved 09 09, 2020, from http://tapchicongthuong.vn/bai-viet/drone-va-tri-tue-nhan-tao-ai-duoc-su-dung- trong-khao-sat-phan-tich-du-lieu-nha-may-dien-mat-troi-72054.html. 23. Urbach, N., & Roglinger, M. (2019). Digitalization cases, Management for Professionals. 24. VIB. (2020, 07). Ngân hàng dùng Big Data và AI để chấm điểm tín dụng. Retrieved 09 2020, from https://www.vib.com.vn/wps/portal?1dmy&page=news.detail&urile=wcm:path:/vib- vevib-vn/sa-news/press-corner/ngan-hang-dung_big-data-va-ai-de-cham-diem-tin-dung. 25. Vietnamnet. (2020, 8 19). Bộ TT&TT đề xuất các giải pháp phát triển doanh nghiệp công nghệ số Việt Nam. Retrieved 9 2020, from Vietnamnet: https://vietnamnet.vn/vn/thong- tin-truyen-thong/bo-tt-tt-de-xuat-cac-giai-phap-phat-trien-doanh-nghiep-cong-nghe-so- viet-nam-667609.html. 26. Westerman, G., Bonnet, D., & McAfee, A. (2014, 01 07). The Nine Elements of Digital Transformation. Retrieved 09 2020, from Sloan review: https://sloanreview.mit.edu/article/the-nine-elements-of-digital-transformation/.

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The Process of Crop Restructures: Case Study in Ly Trach Commune, Bo Trach District, Quang Binh Province

Mai Thanh Son1, Mai Thi Khanh Van2 1Okayama - Hue Master's Program, Hue University, Viet Nam Email: [email protected] 2School of Hospitality and Tourism, Hue University, Viet Nam Email: [email protected] Abstract In recent years, the production of commercial flowers and ornamental plants has been evaluated as one of the key activities, contributing to the restructuring of Vietnam's agricultural sector. Ly Trach Commune, Bo Trach District, Quang Binh Province is a typical example in the crop restructure from inefficient traditional plants to commercial flower production. By the direct interviews with 40 farmer households and 2 local officials; combined with analysis of secondary data, the process of the crop restructure and its economic efficiency were evaluated. The research results showed that, by 2019, the total flower area of the interviewed households was 40 ha. Previously, the farmers only gained 17.7 million VND/ ha/ year by cultivating rice, after switching to flower production, the profits reached more than 1.23 billion VND/ ha/ year. However, most of the newly converted households, and those who were expanding their production scale, have had problems with an initial investment in infrastructure, or farming knowledge when testing new flower varieties. Moreover, it has been imperative to expand consumption markets to deal with output products as more and more households participate in the production. These were major challenges for local authorities and farmers. From the research results, several suggestions were made, aiming to improve the crop restructure process and development of flower production of the farmers in Ly Trach commune. Keywords: Agricultural land conversion; Bo Trach district; commercial flower production; crop restructure; Ly Trach commune.

1. Introduction Over the past years, our country's agricultural sector has seen a remarkable change, from small, odd, self-sufficient, and self-sufficient production models to market-oriented commodity production (Nguyen Manh Tuan, 2004; Nguyen Thi Bich Dao, 2004). Changing the structure of the agricultural and rural economy is reflected in the diversification of production, comprehensive agricultural development to meet the increasing consumer demand of the society and the development of non-agricultural occupations to reduce labor away from agriculture and rural areas, increasing agricultural labor productivity and increasing farm household income (Dao The Anh et al., 2008). Implementing the Agricultural Sector Restructuring Project (2013), the transformation of crop structure, diversification of commodity crops such as flowers and vegetables is considered an indispensable content of the transition in the coming time. In the Mekong Delta, people have converted inefficient rice land to fruit crops with high economic efficiency (Hong Nhung, 2018), or in the Red River Delta with crops such as peanuts, corn, squash, and potatoes brings higher productivity and economic efficiency than mass rice production (Le Quoc Thanh et al., 2017).

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According to Mr. Ma Quang Trung - Director of the Center for Supporting Flowers, Ornamental Plants, and Rural Development, the area of flower and bonsai production for the whole country in 2019 will reach over 50,000 hectares. In which is the concentrated planting area, the total output value is estimated at over 17,000 billion VND. The average income per cultivated hectare reached 550 million VND / year, 6.2 times higher than the value of income / 1 hectare cultivated by the whole farming industry (Nguyen Hai Tien, 2019). It can be said that flowers and ornamental plants are a key commodity contributing to the restructuring of the farming industry, a production field with many times the income compared to other conventional crops under the same farming conditions (Tran Van The et al, 2017; Huynh Truong Huy, 2019). Ly Trach Commune, Bo Trach District is the locality with suitable conditions for commercial flower production (Tien Thanh, 2019). While other localities in Bo Trach district such as Nam Trach Commune used maize as their main crop, in Hoa Trach commune developed fruit trees, Lam Trach commune planted chili, Ly Trach chose flower plants as a tree that helps people escape poverty (Quynh Chi, 2020). In recent years, to promote appropriate natural conditions and a long tradition of flower production, the local government has actively supported and guided the people to convert ineffective rice production models to Commercial flower growing (HTP), thanks to that, the area of flower production is increasing, flower growing in Ly Trach commune has grown rapidly and gradually becomes a concentrated flower production area. This helps the people of Ly Trach commune find a new direction of product development with higher and higher economic efficiency. However, the flower production activities of Ly Trach people today are still mainly based on experience, coupled with poor infrastructure, and the output market of the product is not stable. So the article is done to solve this problem. This study was conducted with the main objectives: - The situation of crop restructuring in Ly Trach commune in the period 2016 - 2019. - The efficiency of commercial flower growing activities in Ly Trach commune in the period of 2016 - 2019. - Solutions to overcome the limitations in order to improve the efficiency of commercial flower growing activities in Ly Trach commune. 2. Methodology 2.1. Data collection Information is collected from secondary and primary sources. Secondary information is collected from relevant research topics, dissertations on agricultural land conversion, and websites on the agricultural sector. The People's Committee of Ly Trach Commune’s annually reports socio-economic in the period 2016-2019. Primary information was collected through interviewing households using semi-structured questionnaires. To collect information to ensure reliability and representative for the whole, the article has selected 40 typical households representing 3 groups of production households, in 4 villages: 2; 3; 4; 10 (with 12.5% of large production groups, 37.5% of medium-sized households and 50% of small groups) by stratified sampling from 150 households flower production activities from inefficient agricultural land conversion in Ly Trach commune. The content of the questionnaire clarifies the influence of factors such as age, gender, education level, production experience, the initial investment capital for commercial flower production on output and energy. yield when harvested.

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2.3. Data analysis Collected data were encoded and processed using Microsoft Excel software. The article uses qualitative analysis methods combined with quantitative analysis. Qualitative analysis is used to analyze the situation and efficiency of the conversion of inefficient agricultural land to flower production. Quantitative analysis is used to analyze the following indicators: Value-added / Gross- Output (VA / GO), Value-added/ Intermediation Cost (VA / IC) to evaluate economic efficiency. of the model of converting inefficient agricultural land to flower production at the study site. 3. Results 3.1. Characteristics and methods of flower production of surveyed households 3.1.1. Characteristics of surveyed area In the locality, there are nearly 10ha of inefficient rice land to grow crops with support up to 10 million VND per hectare. Along with production, attracting businesses to invest in the field of cultivation, ensuring the output for agricultural products in the commune is also focused. In the period 2016 - 2018, Bo Trach district and Ly Trach commune have supported farming households to change crop structure across the district with a total cost of over 887 million VND, with support for seed prices for 200 tons of rice, 34 tons of peanuts, 7 tons of corn. Table 1: Area of flower production in Ly Trach commune, in the period 2016-2019 Year Areas (ha) (+/-) % 2016 15 - 100,00 2017 20 5 133,33 2018 35 15 233,33 2019 40 5 266,66 Source: Author’s survey data, 2018 Table 1 shows the rapid growth in commercial flower production in Ly Trach over the years. According to local people and officials, flowers have been planted for a long time to replace ineffective rice plants, but only at spontaneous, small, and no specific production models. By 2016, due to the increase in the demand for flower products in neighboring markets, the production area also increased. Therefore, the article takes the timeline in 2016 with an area of 15 hectares as a landmark compared to the following years. In 2017, the converted and expanded area of flower production was 5 hectares, an increase of 33.33% over the previous year. According to Mr. Le Van Duan - Chairman of the People's Committee of Ly Trach commune, in 2017, there were about 145 households growing flowers, mainly concentrated in 4 villages (Vo Dung, 2017). By 2018, witnessing a fairly significant increase in the production area. In just 2 years, the area of flower growing in Ly Trach commune has increased by 133% compared to the original time in 2016. However, compared to previous years, the weather in 2018 was more severe, hindering the timing of the development of the flowers. By 2019, the total area has reaches 40 hectares, of which the additional area only stops at 5 hectares. Learning from the previous year's losses, Ly Trach commune has controlled the increase in the number of production areas, avoiding the phenomenon of massively ineffective conversion. Focusing on technology and product quality, capturing customers' needs and tastes, finding new and quality seed sources to increase product costs, reduce costs, achieve economic efficiency, and aiming for the ultimate goals. All of those contribute a part to sustainably develop the Ly Trach flower growing area, create a brand to develop local tourism, contribute to promoting the image and brand of local products.

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3.1.2. Characteristics of surveyed households The characteristics of farmers are closely related to the ability and capacity to invest in production. Commercial flower growing is an agricultural production activity with relatively high qualifications and input costs for production. Therefore, the characteristics of household groups are closely related to the production efficiency of the model. Table 2: Some characteristics of the surveyed households Household Criteria Unit Village 2 Village 3 Village 10 1. Total number of household Household 10 13 17 2. The average number of people People 3,9 3,9 3,8 3. The average number of agricultural workers People 2,2 2,2 2,2 4. The average age Year 45,2 44,4 44,7 5. The average number of years of experience Year 5,5 5,3 4,7 6. The average cultivated area Hectares 1,55 1,56 1,49 Source: Author’s survey data, 2018 The data in Table 2 shows that the average production experience of the surveyed households is about 5.1 years, with the production area per household of about 1.53 ha. The average age of households is also relatively high at about 44 years old, but this does not significantly affect the acquisition and restructuring of crops, at this age the head of the household has sufficient resources, in terms of finance, experience, production relationships... Cultivating flowers also requires know-how techniques during the care process to be effective. For example, chrysanthemums are adaptable but need light, growers need to adjust accordingly to flower in the right season, however, this only guarantees about 90% of success, the rest depends on the weather was favorable or not; Lilies need temperature, so growers have difficulty to grow it without greenhouse ... The level of the head of the household is also a factor influencing the transformation of crop structure. Besides, the gender factor of the household head is also very important. Table 3: The educational level of the surveyed households Household Total Criteria Village 2 Village 3 Village 10 People (%) People (%) People (%) People (%) 1.Gender Male 8.00 20.00 12.00 30.00 15.00 37.50 35.00 87.50 Female 2.00 5.00 1.00 2.50 2.00 5.00 5.00 12.50 2.Education lever Not going to school 0 0 0 0 1.00 2.50 1.00 2.50 Primary school 1.00 2.50 3.00 7.50 0 0 4.00 10.00 Junior high school 5.00 12.50 1.00 2.50 1.00 2.50 7.00 17.50 High school 3.00 7.50 8.00 20.00 12.00 30.00 23.00 57.50 College/ University 1.00 2.50 1.00 2.50 3.00 7.50 5.00 12.50 Source: Author’s survey data, 2018

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The number of households with graduation from lower secondary school or higher is quite high, accounting for 87.5% of the total number of surveyed households. This proves that the testing and replication of flower growing models in the commune have been achieving good results over the years. It is observed that female householders have a more conservative way of operating production activities. Their transformation is slow and small compared to men. This is also an advantage because it helps households switch production safely and effectively in the period of gaining experience, then gradually expanding scale, avoiding consequences of economic damage when not familiar with the new plant variety. 3.1.3. Commercial flower growing method of surveyed households To better assess the economic efficiency of the plant variety conversion, the paper studies the efficiency of rice, maize, and flower production of 40 households in Ly Trach commune in recent years. Table 4: Production costs per hectare of crops Rice Corn Flower Criteria (1000VND) (1000VND) (1000VND) 1. Intermediary Costs (IC) Varieties 2,711.60 1,471.40 67,725.00 Fertilizer 3,466.00 10,571.40 16,777.60 Pesticides 3,430.80 1,085.80 41,200.00 Hired employees 8,461.60 6,560.00 107,120.00 Total 18,070.00 19,688.60 232,822.60 2. Production materials Labor Tools 600.00 1,000.00 2,000.00 Agricultural Machinery 5,000.00 4,364.20 59,950.00 Net house 0 0 66,500.00 Total 5,600.00 5,364.20 128,450.00 3.Own cost Family labor 9,240.00 8,280.00 8,800.00 Source: Author’s survey data, 2018 For one hectare of flower production, the average cost spent by households is about 232.8 million / ha. It is many times higher when compared with the cost of crops such as rice and maize. The long-term experience of households shows that with conditions in Ly Trach commune, the most suitable planting density for chrysanthemum is 190,000 to 200,000 trees per hectare. After planting, the amount of fertilization each month needs about 100 kg of NPK Buffalo Head. In addition to fertilizers, pesticides or pesticides are essential for the chamomile plant to grow and develop fully. Most households in Ly Trach are currently using the bio-products of Anisaf and Bud booster to eliminate pests, aphids, bugs or fungal diseases, yellow wilt… The most expensive step in the production of flowers is the hiring of labor and agricultural machinery to taken care of the crop, watered plants, fertilize, light electricity, or harvest preparations such as pruning, wrapping nylon nets, or harvesting such as cut flowers, transfer to pots, ... Although the characteristics of the chrysanthemum production are not as heavy as

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traditional agricultural production, it requires meticulousness, labor skills, the number of employees hired, and production costs, in general, is much higher than for other crops. For means of production, in rice production, the average number of labor tools per household uses 3 hoes for 60,000 VND / piece, 4 shovels cost 30,000 VND / piece with the use time of 5 years. , the pump cost 5 million VND depreciated in a straight line in 10 years, the depreciation of production materials is 560,000 VND / ha of rice/year. In maize cultivation is the same as above, with the number of hoes used is 5, and the shovel is 6, the pump costs 5 million, is depreciated evenly over 11 years, the total depreciation of production materials per hectare of corn in a year is 540,000 VND. In flower production, the initial investment cost is higher than that of other crops. Average labor tools for one hectare of flower production include 3 hoes (60,000 VND / piece), 3 shovels (30,000 VND / piece), 8 trowels (20,000 VND / piece) and 6 small hoes (30,000 VND / piece) depreciate evenly over 3 years. Along with that is the irrigation system including pumps, pipes, and fountains worth about 15 million VND depreciate after 5 years. The biggest difference of flower production is the construction of curtain houses, nurseries house, the investment cost for garden houses of 40 interviewed households is 16.63 million VND with the expected use in 5 years. Therefore, the depreciation of production materials for one hectare of flowers per year is 12.85 million VND. 3.2. Economic efficiency of flower growing compared to other crops The article compared the economic efficiency of commercial flower production on agricultural land ineffective conversion and rice and maize production in one crop to evaluate the efficiency of production. Farmers' survey results on investment costs and production efficiency are summarized in Table 5. Table 5: The total value and economic efficiency of production per hectare of crops Criteria Rice Corn Flower Productivity 4,200kg 4,800kg 129,460 plants/ha Price 6.420 VND/kg 5.820 VND/kg 6.540 VND/plants GO 26,964.00 27,936.00 846,668,400.00 (1,000VND) IC 18,070.00 19,688.60 232,822.60 (1,000VND) VA 8,850.80 8,357.20 616,033.60 (1000VND) VA/IC 0,49 0,42 2,65 (times) VA/GO 0,33 0,30 0,73 (times) Source: Author’s survey data, 2018 When compared with the results of rice-producing households, the profits of maize growers were significantly lower. With the revenue of 28 million VND / ha and the profit of only 8.35 million VND / ha after subtracting the depreciation costs of about 19.69 million VND, it can be

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seen that the economic inefficiency in maize production activities of the interviewed households. In general, there are production problems, particularly inadequate productivity and output cost of the product. Being a crop to help alleviate poverty and economic development in the past, the current maize production area is quite large, when asked, up to 14 out of 40 households said that they are currently producing this variety with the area in 2018 is 29.75 ha. In the period 2016 - 2018, some households boldly converted a part of their corn production area of about 2.05 hectares into flower cultivation. The results are encouraging with income many times higher than the production of traditional crops such as rice, corn,... The transformation of farming structure to commercial flower production is currently taking place slowly, experimentally because this plant required high both in the investment costs and labor force, as well as the knowledge and experience of the producer. Criteria such as VA / IC, VA / GO show how effective the investment in flower production is. This is the crop with the highest economic value with the revenue of 1 hectare after 1 crop up to 848.85 million VND, minus the cost of seedlings, fertilizers, and materials to support production activities about 616.03 million VND. On average, for each VND of expenditure, people spend to invest in flower production process they will earn 2.65 VND of added value. Although the conversion brings high economic results, it requires production households to have a relatively large initial investment in infrastructure. For the construction of greenhouses, net houses for flower nursery activities in the area can be divided into three levels: - Simple type, with a bamboo frame, black nylon net costs about 400 - 600 million VND per hectare. - Complex type including iron frame built on a concrete base, covered with canvas, nylon net costs about 800 million - 1 billion VND / ha. - The third type, consisting of a combination of iron pillars and bamboo woven frames, is more affordable, about 600-800 million VND / ha. Among the interviewed households, there are 15 households in small and medium scale, with little production experience and have not yet invested in building net houses in production, accounting for 37.5%, 22 households or 55% of survey samples, step first with a simple shading system of bamboo and nylon nets, 2 households with iron, bamboo and nylon mesh systems accounting for 5%, and 1 household investing in a modern house system with house frames made of reinforced concrete steel and black nylon mesh covered. Most of the production households are aware that the net mesh system could protect the flowers from the weather and climate conditions of the region, save irrigation water, pesticides and fertilizers by not being washed away by rain, increasing the yield and quality of finished flowers. However, due to the unfavorable economic conditions of the household, at present, households only invested in construction on a small scale and accepted to plant flowers outside with high-risk. To improve the situation and increase production scale towards industrialization and modernization, it is necessary to have the help of governments and enterprises to support capital for local people. 3.3. Limitations and measures to improve flowers production process 3.3.1. Limitations of flowers production process - Lack of production experience Familiarity with traditional ways of thinking, plants, and long-standing production customs is a barrier that local farmers must overcome to master production techniques and develop new plant varieties. Among 40 households interviewed, the average age of the household head fluctuates between 44 and 45 years old, with production experience ranging from 4.7 to 5.5

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years. It can be said that most of the households are newly converted from inefficient crops to growing flowers after 2013, to meet the increasing demand of customers for flower products. According to Mr. Canh, a successful flower producer in the locality: "Caring for flowers is not as hard as cultivating rice, but it requires farmers to be skillful and sophisticated, knows how to calculate the weather to divide each stage to prune and take care ". There was a new type of flower which took him 4 years, experienced many failures and losses both physically and mentally to be able to successfully cultivate it with the local environmental conditions (Hong Tham, 2018). The lack of basic information necessary for production activities will cause economic losses for households to experiment with new varieties of plants and flowers. - Increased production costs Capital investment in the construction of net houses and irrigation systems requires a large amount of initial capital. For example, the construction of a net house to cultivate flowers requires a huge investment capital. Depending on the level of complexity, it can range from 400 million to 1 billion VND per hectare on average. Currently, the majority of households accepting the risks and producing flowers in natural condition. The crops directly exposed to extreme weather, pests, and diseases, knowing that economic losses can occur at any time. The victims are mainly small and medium-sized households when their funds are very limited, and the family's finances depend mostly on the profits of the flowers. This cycle makes it difficult for households with limited capital resources to catch up with the needs of the market and expand production. - Output market In recent years, scientific agencies, businesses, cooperatives, and households have only paid attention to the "Input" stages that are: Supply of seeds, materials, and technical support but have not paid attention to the key is "Output". Households are not provided, equipped with knowledge about marketing and selling products. Most of them have converted from growing rice, food crops, so they are still passive in solving the output of flower production, still following the traditional agricultural method. On the other hand, the number of enterprises participating in the "output" link in the product value chain is too small in quantity and very weak in capacity, qualifications, and professionalism. Therefore, leading to the situation of many flowers produced, but a large part of it has not yet reached consumers. For example, the Lunar New Year or Tet, one of the biggest flower consumption occasions of the year, is the target for the vast majority of flower growers. However, the fact that many people sell the same product makes the Tet flower market become overloaded, when the flower quality is almost the same, the price is the criterion to compete. What makes things worse is, consumers often wait until the last day of the Tet market, taking advantage of sell-off psychology to recover capital from sellers to pressure, to lower the price of flowers. This creating a negative mentality, leading to a point where sellers would rather destroy the flower tree than let others take advantage and make a profit, and prevent the same situation in the following year. These damages both the seller and the buyer, which is an unexplained problem in current flower production. 3.3.2. Measures to improve flowers production process - In terms of production experience It is necessary to carefully study the locality, finds the appropriate directions for the development of flower plants, research on selecting, creating, restoring, importing, and

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domesticating new flower varieties, meeting the market tastes of consumers. Open training courses on technology transfer to farmers. Improve the capacity of farmers to produce flowers through training, demonstration, study tours, agricultural extension at all levels. Relying on the cooperation of farming households together and with businesses to stand firm and develop in both size and quality, step by step eliminate poverty, get rich in their own homeland. - In terms of infrastructure The Ly Trach Commune Committee needs to actively mobilize capital from the programs of the Government, from individuals and businesses wishing to invest in the area to gradually improve the infrastructure system. Floors are essential for economic development such as roads, canal systems, irrigation canals, power lines... It is necessary to have the participation of the State, credit institutions, bank ... with practical actions such as increasing the number of loans, lending time, or reducing the basic interest rate for those Farmers who have needs and demonstrate their ability or reform-related administrative procedures. - In terms of the market Management levels as well as farmers need to constantly update information with the market. While considering future forecasts to stay ahead of new trends, and gain advantages. Besides, farmers should expand the flower consumption market by establishing cooperatives, concentrated production groups to build brands, create trust and foothold of products created in the market. 4. Conclusion After assessing the situation of crop restructuring in Ly Trach commune, the article comes to the following conclusion: First, commercial flower production is the main economic activity in Ly Trach commune. Therefore, in the period 2016 - 2019, the local government has created favorable conditions to help people convert inefficient land areas to develop flowers in the direction of commodity production. Second, through the research data, the annual profit from commercial flower production can reach 600 million VND / ha/crop, many times higher than when comparing the indicators VA / IC, VA / GO of flowers with two main crops in the area were rice and maize. Realizing the economic benefits from flower growing activities, the people have replicated this model over the years. Specifically, in 2016, the area of flower production in the whole Ly Trach commune was 15ha, but after only 3 years, this area was up to 40 ha, an increase of 166.66%, consistent with the orientation set out earlier by the local government. Thirdly, there are still difficulties and limitations in the transition, causing significant economic damage. To solve this problem, commune authorities and people need to take some measures as follows:  Coordinate monitoring, management and avoid mass conversion, causing an imbalance in the product market, increasing the risk to spread disease on crops.  Enhance the product’s quality and invest in the production of flower varieties with high economic value, suitable for the season, diversified in designs, to meet the increasing demands of customers.  The commune has established a cooperative specializing in supplying flowers for the domestic and external markets, contributing to the formation of large-scale concentrated production areas, changing the face of local agricultural production.

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References 1. Dao The Anh, Dao The Tuan, and Le Quoc Danh (2008). Scientific arguments on agricultural and rural economic restructuring: The current situation and the impacting factors in Vietnam. Proceedings of the 3rd Vietnam International Conference: Subcommittee on Rural, Modern Vietnam Agriculture. 2. Hong Nhung. (January 2018). Transplanting crops in the Mekong Delta. Vietnam News Agency. [Online] 15 (9). Available at: https://baotintuc.vn/kinh-te/chuyen-doi-cay-trong- o-dbscl-bai-1-xu-the-nang-cao-hieu-qua-kinh-te-20180108182442940.html. 3. Hong Tham. (February 2018). Planting peach blossoms, the new direction of Ly Trach’s farmers. Bo Trach district’s website. [Online] 15 (9). Available at: https://botrach.quangbinh.gov.vn/3cms/trong-hoa-dao-huong-di-moi-cua-nong-dan-ly- trach.htm. 4. Huynh Truong Huy. (June 2019). Value chain approach to the development of agricultural products - some practical issues in the Mekong Delta. Journal of Ethnic Studies. [Online] 15 (9). Available: at: http://ncdt.hvdt.edu.vn/index.php/NCDT/article/view/294. 5. Le Quoc Thanh, Vu Thi Khuyen et al. (2017). Some models of effective crop restructuring in the Red River Delta region, the 2nd National Workshop on Plant Science. Vietnam Institute of Agricultural Science. [Online] 15 (9). Available at: http://dastic.vn:8080/dspace/handle/TTKHCNDaNang_123456789/11638. 6. Nguyen Hai Tien. (2019). Flowers, bonsai breakthrough in the rural economy. Vietnamese rural magazine. [Online] 15 (9). Available at: http://www.nongthonviet.com.vn/nong-nghiep/cau-chuyen-nong-nghiep/201912/hoa- cay-canh-dot-pha-kinh-te-nong-thon-753261/. 7. Nguyen Manh Tuan. (2004). ‘’Development of commodity agricultural products in Vietnam in the current period: Problems and solutions’’. Journal of Science, VNU, Economics - Law, T.XX, No. 3,2004. 8. Nguyen Thi Bich Dao. (2004). ‘’Inadequacies in Vietnam's agricultural and rural economic restructuring’’. Journal of Science, VNU, Economics - Law, T.XX, No. 3,2004. 9. People's Committee of Ly Trach Commune. (2016 - 2019). Report on the implementation of the annual socio-economic. For the period from 2016 to 2019. 10. Prime Minister (2013). Decision No. 899/2013 / QD-TTg dated June 13, 2013, approving the project "Restructuring the agricultural sector towards increasing added value and sustainable development. ". 11. Quynh Chi (2020): Effectiveness from crop restructuring in Bo Trach district. The National People's Newspaper. [Online] 15 (9). Available at: https://baodantoc.vn/hieu- qua-tu-chuyen-doi-co-cau-cay-trong-o-bo-trach-1585968278552.html. 12. Tien Thanh.(2019). Farmers in Ly Trach commune actively take care of Tet flowers. Quang Binh Newspaper. [Online] 15 (9). Available at: https://www.baoquangbinh.vn/kinh-te/201911/nong-dan-xa-ly-trach-tich-cuc-cham-soc- hoa-tet-2171815/. 13. Tran Van The, Dang Thi Thu Hien, Do Thi Hong Dung, Mai Van Trinh, and Nguyen Duc Hieu. (2017). ‘’ Integrating climate change adaptation and mitigation in the development of crop production. Vietnam Institute of Agricultural Science’’. [Online] 15 (9). Available at: http://dastic.vn:8080/dspace/handle/TTKHCNDaNang_123456789/11637. 14. Vo Dung. (2017). Ly Trach Flower Village bustles in spring. Vietnam News Agency. [Online] 15 (9). Available at: https://bnews.vn/la-ng-hoa-ly-trach-ro-n-ra-ng-va-o- xuan/32586.html.

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Sustainable Use of Sloping Land Resources for Agricultural and Forestry Development in Thai Nguyen Province Le Thi Nguyet1, Do Van Hao2 1,2Thai Nguyen University of Education

Abstract Thai Nguyen is a well known province located in a midland and mountainous region in Northern Vietnam. The features of sloping land in Thai Nguyen province are quite diverse, which is an important foundation for agricultural and forestry development. In this article, the authors research some solutions for sustainable use of sloping land resources for agricultural and forestry development in Thai Nguyen province based on the potential of sloping land, the actual state and viewpoints of using sloping land for the agricultural and forestry development in Thai Nguyen province. Keywords: Sloping land, sustainable development, agricultural, forestry, Thai Nguyen

1. Introduction Land is an important component of the synthesis of natural geography and is the main material for agricultural and forestry production, the territorial basis for the distribution of the national economic branches. For a country where three-quarters of the area is hilly and mountainous like Vietnam, the sustainable use of land resources is mainly to use the sloping land resources rationally and effectively to develop the economics, stable society, protect and improve the environment. Thai Nguyen is a well known province located in a midland and mountainous region in Northern Vietnam, has diverse natural conditions and natural resources, especially rich sloping land scale - a favorable basis for the development of agriculture and forestry. In recent years, the use of sloping land in Thai Nguyen province for agricultural and forestry development has seen positive changes. However, besides these achievements, the use of sloping land in the province still has some limitations such as: unused land, especially bare land and hills remains abundant; land degradation; land pollution due to irrational agriculture and forestry cultivation or mineral exploitation; the level of agricultural and forestry production of ethnic minorities is not high, so that the production efficiency is not commensurate with its potential; land degradation due to erosion, leaching, etc. Therefore, studying some solutions for sustainable use of sloping land resources for agricultural and forestry development in Thai Nguyen province is a necessary research direction, making an important contribution in improving economic efficiency, stabilizing society, protecting and improving the ecological environment, which all lead to the sustainable development of agriculture and forestry. Research on sloping lands and sustainable use of sloping lands has been studied by a number of authors such as: research by authors Nguyen Cong Vinh, Mai Thi Lan Anh (2011) has analyzed the role of sloping land in socio-economic development, distribution and formation conditions of sloping land in Vietnam. In particular, in this study, the group of authors also raised the issue of sustainable use of sloping land resources in Vietnam; research by authors Nguyen Thai Phien, Tu Siem (2002), Nguyen Xuan Quat (1994), Nguyen Viet Khoa and his coworkers (2008),... have studied farming techniques on sloping land and gave a solutions for sustainable development of sloping land in Vietnam.

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Researches on land resources in Thai Nguyen province have research by the author Duong Quynh Phuong "Ethnic community with the use of land and forest resources towards the goal of sustainable development in Thai Nguyen province" (2007) , research by author Le Thi Nguyet on assessment of natural potential, including potential land and the use of land for agricultural development in Thai Nguyen province (2011). In addition, every year, the Department of Natural Resources and Environment of Thai Nguyen province has an inventory and assessment of the current land resource status of the province. The above studies are important bases for research on sustainable use of sloping land resources for agricultural and forestry development in Thai Nguyen province. 2. Methodology Research methods on sustainable use of sloping land resources for agricultural and forestry development in Thai Nguyen province are used, including document collection and processing method, systematic analysis method, and field survey method. The data and documents used in the study were collected and analyzed from various reliable sources such as: Statistical Yearbook of Thai Nguyen Province (2005-2020), Synthesis Report of Development Master Plan agriculture and rural areas of Thai Nguyen province to 2020 and orientations to 2030 by the Department of Agriculture and Rural Development of Thai Nguyen (2010); Results publication of land area inventory in 2018 of the Ministry of Natural Resources and Environment (2019); Research on sustainable use of sloping land by Thai Phien, Nguyen Tu Siem (2002), Nguyen Xuan Quat (1994). In addition, the additional data had been updated from the author's research and field investigation in Thai Nguyen province by the authors. 3. Results and discussions 3.1. Characteristics of sloping soils in Thai Nguyen province Sloping land is land with sloping steep, often rough, uneven or undulating and heaving. That inclination is called the slope or slope surface. The angle formed between the slope and the plane (the horizontal plane), is called the slope of the ground or the slope of the terrain (Nguyen Xuan Quat, 1994). In Thai Nguyen province, mountainous land accounts for 76.47% of the province's natural area. The soil was formed due to the result of rapid, strong and thorough weathering, but with the characteristics of mountainous terrain, it is also susceptible to degradation, washout and erosion. The characteristics of the main sloping soils in Thai Nguyen province are as follows: - Red and yellow soil on clay and metamorphic rocks (Fs): This is the type of soil with the largest area of 168,789 ha, accounting for 47.75% of the province's natural area, distributed in large areas in Phu Luong district, Vo Nhai, Dong Hy, Dai Tu, DinhHoa. Soil with mechanical components from medium to heavy earth, lumpy structure, long flooded will have strong biodegradation processes. On this soil type, there is about 48.5% of the area, which has a slope of 8 - 250 that is very suitable for the development of tea trees and fruit trees. - Red yellow soil on acid magma rock (Fa): This soil covers an area of 30,533 ha, accounting for 8.64% of the natural area of the province, distributed concentratedly in Dai Tu and DinhHoa. This type of soil is susceptible to erosion and leaching because the topsoil has a light mechanical composition, porous, acidic soil and about 50% of its area was distributed at a slope of above 250. - Light yellow soil developed on sandstone (Fq): This soil is about 34,034 ha, accounting for 9.63% of the natural area of the province. This is hilly soil with the second largest area, which is only smaller than the red and yellow soil on clay and metamorphic rocks. This soil type is

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scattered in all districts and towns in the province and usually has a slope of below 250. The area with a slope of above 250 is only about 23%. This soil’s top is usually gray, has a light mechanical composition and many quartz stones, and is acidic. - Reddish brown soil on basic and neutral magma (Fk): Covering an area of 15,329 ha, this soil accounts for 4.34% of the province's natural area, distributed concentratedly in Dai Tu, Dinh Hoa, Phu Luong. This soil contains a lot of iron and manganese. When being interacted with hot and humid, it is easy to weather and the top part is easy to curdle. This is a good soil type, about 63% of this has a slope of 80 to 250, can be exploited and put into agriculture and agroforestry production. - Yellow brown soil on ancient alluvium (Fp): 12,468 ha, accounting for 3.53% of the natural area of the province. The land is distributed concentratedly in Phu Luong, Pho Yen, Vo Nhai, Dong Hy, Phu Binh and Dai Tu. The land usually has a low slope, 58% of the area has a slope of less than 80, which is very suitable for growing crops, short-term industrial crops (sugarcane, peanuts, soybeans, etc). - Red brown soil on limestone (Fv): Covering an area of 4,464 ha, accounting for 1.26% of the natural area, concentrated in Vo Nhai and Phu Luong districts. Overall, this is a good, but dry and discrete texture, medium mechanical composition, fairly basic saturation level, less acidic. On this land type, about 70% of the area has a slope of less than 200, which is suitable for agricultural production and production in the form of agroforestry. - Red yellow humus soil on acid magma (Ha): Covering an area of 2,559 ha, accounting for 0.72% of the province's natural area. This soil type is located in areas with an altitude of 700m or more. At this height, the intensity of the feralite process is reduced, the humus accumulation increases. Most of them are distributed at the slope of above 350. The soil layer is 0.6 - 1.2m thick, with medium - light mechanical composition. Due to its high and steep terrain, it is easy to be eroded. - Red and yellow land changes due to rice cultivation (Fl): 1,116 ha, accounting for 0.32% of the natural area of the province. This soil is distributed at a slope of 0 - 80, in most valleys in the province's districts, it is now used for rice cultivation and some other short-term crops. - Black soil on the accretion product of basalt rock (Rk): has a very small area of 973 ha, accounting for 0.28% of the total natural area of the province. This soil formed by the accretion of basalt, black, or gray-black soil, distributed at a slope of 0 - 80. - The gray soil on ancient alluvium: 4,331 ha, accounting for 1.3% of the natural area, distributed concentratedly in the Southern districts of the province. Degraded soil was initially used in agricultural production. Research shows that red and yellow soil on clay and metamorphic rocks (Fs) occupies the largest area in the province at 47.75%. This type of soil is suitable for long-term crops in agriculture to develop well, especially tea and fruit trees. However, bare land and hilly areas are also distributed mainly on this type of land. In general, the soil quality in Thai Nguyen province is quite good, the soil layer is thick in many places and the hilly soil has a high amount of humus. It has been exploited for agricultural production, food, industrial crops, fruit trees and forestry cultivation. However, in many places, due to industrial exploitation, indiscriminate deforestation such as in Phu Luong, Pho Yen, Dai Tu district...., the land is degraded, eroded, poor in nutrition, too dry to easily overcome in a short time.

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Research on unused bare land and hills of the province shows that 65% is red yellow soil on clay and metamorphic rock and about 15% is light yellow soil on sandstone. Thus, bare soil and hills of the province are mainly distributed on the soils formed on the base of shale, metamorphic, acid sputum, which are suitable soil types for perennial plants in developing agriculture and forestry (Le Thi Nguyet, 2011). 3.2. The actual state of using sloping land for agricultural and forestry development in Thai Nguyen province Thai Nguyen province has a natural area of 352.664 ha, including agricultural, non-agricultural and unused land. Agricultural land accounts for the largest natural land area of 86,08%, mainly of which is forestry land (52,93%), and agricultural production land 31.77%. The area of sloping land for agricultural and forestry development is mainly forestry land, land for perennial agricultural crops and a part of land for annual crops and fruit trees. The unused land area is still quite large 4.664 ha (accounting for 1,32% of the natural area) (Table 1) (Thai Nguyen Statistical Office, 2020). Therefore, the direction of researching and exploiting the unused land scale in Thai Nguyen for the purpose of effective agricultural and forestry development and avoiding waste is very necessary. Table 1: State of using land in Thai Nguyen province in 2019 Standard Area (ha) Structure (%) Total natural area 352.664 100,00 1. Agricultural land 303.555 86,08 1.1. Agricultural production land 112.047 31,77 1.1.1. Annual crop land 61.029 17,31 Land for planting rice 44.753 12,69 Land for planting other annual crops 16.275 4,61 1.1.2. Land for perennial crops 51.019 14,46 1.2. Forest land 186.648 52,93 1.3. Aquaculture land 4622 1,31 1.4. Other agricultural land 237 0,07 2. Non-agricultural land 44.445 12,60 3. Unused land 4.664 1,32 Unused plain land 989 0,28 Unused hilly and mountainous land 1.517 0,43 Rock mountains without forest trees 2158 0,61 Sources: Processing data from the Statistical Yearbook of Thai Nguyen province, 2020 Research shows that the limitations in the development of agriculture and forestry on sloping land in Thai Nguyen province are as follows: - Strong erosion and leaching in areas with a slope of above 250, concentrated in Vo Nhai, Phu Luong, DinhHoa, Dai Tu district, which caused the loss of nutrients and the fertility of the topsoil leading to acidification in soil. - Land degradation is caused by destroying and burning forest land in order to grow annual crops for food. Of the total degraded land area of Thai Nguyen, the degree of degradation from

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weak to very weak accounts for about 75%. If including the area of land with average degradation degree, this rate is up to 94%. Only 4% of the area has not been degraded yet and needs attention to invest and protect. The areas with medium to strong degradation of land accounts for 26% of the total land area of the province, which are heavily deforested and the land there can be abandoned. The main reason is mostly due to the impacts of human production and exploitation of natural resources. - Drought often occurs in the dry season, so water retention on sloping land is a really difficult problem, the cultivation depends on the rainfall. There are droughts in the dry season, and some areas do not have enough water to meet the production needs. Drought is a major problem for sloping land, which reduces productivity and quality of the products. - The mineral exploitation has narrowed a part of the agricultural and forestry land area of the province, and at the same time discharging wastewater also pollutes the soil. - People in the sloping lands are mainly ethnic minorities with high poverty rates and low levels of education, which also cause significant obstacles in the sustainable use of sloping resources. In addition, the activities of anti-erosion, protecting water resources and planting trees for economic efficiency require higher investment and farming techniques. 4. Solutions for sustainable use of sloping land resources for agricultural and forestry development in Thai Nguyen province Committee of Thai Nguyen province has proposed views and land use objectives for the agricultural and forestry development of Thai Nguyen province are as follows: - The agricultural and forestry land policy must aim at encouraging the subjects directly zusing the land to develop effective agriculture and forestry. - The use of land for agricultural and forestry development must be linked to the hunger eradication and poverty alleviation program in rural mountainous areas. - The use of land for agricultural and forestry development must be linked to the process of agricultural and rural industrialization and modernization. - The use of land for agricultural and forestry development must capture market demand and be consistent with domestic and international labor division. - Pay attention to ensuring enough food for the whole society, keep and plant forests in all vital regions and sloping lands to preserve water and create a sustainable ecological environment. From the point of view of sustainable use of sloping land, Thai Nguyen province's planning on agricultural and forestry development province to 2030, and based on the characteristics of slopes, the real state of using sloping land for agricultural and forestry development in Thai Nguyen province, the author offers some solutions for sustainable use of sloping land for agricultural and forestry development in Thai Nguyen province in order to ensure the harmonious development among three aspects, namely economy, society and environment are as follows: 4.1. Solutions for using and planning sloping land in agriculture and forestry Some specific solutions for using and planning sloping land resources in Thai Nguyen province are as follows: - It is necessary to pay attention to afforestation. Because the province's land is mostly sloping, planning the area for afforestation to prevent soil from being washed away and eroded is very important. - Construct high-tech agricultural and forestry zones for the production of concentrated and high-quality goods associated with the processing industry and continuous commercial services

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from production to collection agents, to distributors and to users (or exportation). High-tech agricultural and forestry zones such as: Tan Cuong, Phuc Triu tea area (Thai Nguyen city), Trai Cai tea area (Dong Hy), La Bang tea area (Dai Tu); Hoa Binh fruit tree areas (Dong Hy), Minh Tien (Dai Tu), production forests in Dong Hy, Dinh Hoa, etc. 4.2. Solutions on legal systems and policies In order for the use of sloping land resources to be effective, Thai Nguyen province needs to improve policies on agricultural extension, poverty reduction, forest land allocation, grant stable and long-term allocation of land use to the people, medium and long term capital loan, etc. At the same time, it is necessary to implement the program of land degradation prevention and environmental protection, the program of afforestation, the program of agroforestry, household economic development, farm development... 4.3. Scientific and technical solutions to prevent erosion and sloping land protection Contour farming green trees: With this farming method, food crops are grown between legumes or grass beds on terraced fields. This system both limits erosion and retains soil fertility from year to year. Thickly planted patches of trees, shrubs or grass strips act as living barriers to prevent the leaching of the soil during heavy rain. If the contour farming system with row of green trees is applied, the terraced fields will be flat along the fences, because the soil will be gathered and gradually accreted behind the trees, the hillside will be less steep and easier to plant. Development of agroforestry models in Thai Nguyen - Forest - garden model (forest - tea, or forest - medicinal plant): Applied to areas in the province with strong slope (26 - 350), slightly strong (16 - 250). The highest part of the terrain retains the natural vegetation. Slopes which are of 15 - 250 are planted with forestry trees. Where there is good soil, it is reasonable to choose cinnamon, conarium, pine, paving, whereas the bad soil grows acacia. Under the forest canopy, there are several medicinal plants that can be planted such as ginger and amomum. Slight slopes are easy to grow tea (intercropped with soybeans in the first stage). - Model of garden - forest: (forest - tea - rice, forest - tea - fruit trees): Applied to areas in the province with medium slope (8 - 150). The highest part of the terrain is planted with several types of forest trees: acacia, fat, palm, crayon, cinnamon, and conarium. Slight slopes intensify tea (intercropped with soybean in the first stage). The foothills are planted with rice, crops and fruit trees. 4.4. Solutions on investment capital The good settlement of investment capital will help people living on sloping land in the province to exploit sloping land resources effectively and to bring high economic value. The first source of capital that can be mobilized is direct investment capital from the state budget; the second is mobilize capital from the people, create all favorable conditions (with open preferential policies, reasonable regimes which are guaranteed by law); the third is the development of co-operative, joint-venture and economic cooperation activities to attract investment capital from outside. It is necessary to focus on capital investment for projects with high economic value such as: high- class tea development project, specialty tea, integrated development under the forest canopy project, and projects of planting production forests for the processing industry. Investing funds to build infrastructure to develop production models such as irrigation stations, agricultural and forestry seed stations, net houses...

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4.5. Sustainable management solutions for sloping land with the participation of the community There are 8 ethnic groups living in Thai Nguyen province, of which the most important are the Kinh, Tay, Nung, Dao and Mong. The ethnic structure shows the diversity of customs, practices, lifestyles and experiences in agricultural and forestry production. The life of ethnic minorities in Thai Nguyen province has always been closely linked with natural resources in general and sloping land resources in particular. Therefore, the exploitation and use of this resource also has its own identity for each ethnic group. Mong and Dao people with narrow distribution ranges on the highest land, burning milpa is the main method. Tay and Nung people live in lower elevation areas and valleys, which is convenient for wet rice cultivation, cash crops and industrial crops. Kinh people gather mainly in towns, trade and cultivate wet rice, growing crops and industrial crops. A good combination of indigenous knowledge of ethnic minorities and scientific knowledge in agriculture and forestry will bring about a high effect. In order for modern scientific knowledge to be mastered and applied to the local people in production, local authorities need measures to support the community such as: - Strengthen education to improve educational attainment for mountainous people in districts in the province. When the education level of the people is improved, the transfer of new technology by staff will be easy. - Open more training courses on agricultural and forestry extension at district level, smaller level is the village one in order to train key people in the community to become community guides. They will be the main force in the transfer of new technology in the community. - Propaganda to people about economic models with high efficiency thanks to knowing how to promote local knowledge with the application of new and modern techniques in production. Organize for people in the area to visit, learn and exchange experiences. 4.6. Solutions for the environment - Popularize farmers to use organic and microbiological fertilizers instead of inorganic fertilizers, thoroughly collect all kinds of plant protection chemical packaging for treatment. Create bio-fertilizers, organic fertilizers (such as the model VAC, VACB ...) and appropriate farming methods to enhance the ability to enrich soil nutrients, especially in poor land areas. Strictly control the use of chemicals, pesticides and antibiotics in production and processing to limit soil degradation and pollution. - Strengthen the implementation of planned afforestation programs and take effective measures to prevent forest fires and protect forests effectively in order to prevent erosion, soil leaching, and to protect soil. - Educate and propagate about environmental protection in general and the use and protection of sloping land resources in particular for ethnic minorities in the province. 5. Conclusion Due to the combined effects of nature, Thai Nguyen province has formed many types of soil which are specific to hilly and mountainous areas, with high usability in agricultural and forestry production. Nowadays, sloping land in Thai Nguyen province has been planned to use quite appropriately. However, besides the achieved results, there are still some limitations such as: soil is eroded, washed away in the sloping area, land degradation, land pollution due to irrational agriculture and forestry, mineral exploitation activities, the level of agricultural and

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forestry production of ethnic minorities is not high, so that the production efficiency is not commensurate with its potential. The solution of sustainable use of sloping land resources in Thai Nguyen province for the development of agriculture and forestry needs to ensure a harmonious development of all three aspects: economy, society and environment. Solutions need to be implemented synchronously including: rational use and plan of sloping land, perfecting the policy system on slope land use, applying scientific and technical advances in cultivation to prevent erosion, protection of slopes, good settlement of investment capital for people, sustainable management of slopes with community participation and strengthening of environmental protection measures. References 1. Le Thi Nguyet (2011). Scientific basis and solutions towards sustainable development of agriculture and services in Thai Nguyen province, Ministry of Science and Technology, Thai Nguyen. 2. Ministry of Natural Resources and Environment. (2019). Decision announcing the results of land area inventory in 2018, Hanoi. 3. Nguyen Xuan Quat (1994). Using sustainable sloping land, Agricultural Publishing Company, Hanoi. 4. Thai Nguyen Statistical Office (2020). Statistical Yearbook of 2005 - 2019. 5. Thai Phien, Nguyen Tu Siem (2002). Sustainable use of mountainous and highlands areas in Vietnam, Agriculture Publishing Company, Hanoi. 6. The Department of Agriculture and Rural Development of Thai Nguyen Province (2010). Synthesis Report on the Master Plan for Agricultural and Rural Development of Thai Nguyen Province to 2020 and Orientations to 2030, Thai Nguyen. 7. Nguyen Cong Vinh, Mai Thi Lan Anh (2011), Management and sustainable use of sloping land in Vietnam, National University Publishing Company, Hanoi.

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Solutions for Sustainable Agriculture Development in Thai Nguyen Province

Hoang Thi Tra Mi1, Le Thi Nguyet2 1,2Thai Nguyen University of Education

Abstract Thai Nguyen is a well known province located in a midland and mountainous region in Northern Vietnam with plentiful resources and favorable natural conditions for agricultural development. In the context of the country's industrialization and modernization, Thai Nguyen government has been changing the economic structure drastically in which the agricultural sector still plays an important role to the gross income. This study analyzes the current state of agricultural development, leads to some reasonable forecasts about the development trends of agriculture in Thai Nguyen province until 2030, and proposes breakthrough solutions for agricultural development in Thai Nguyen province in a sustainable direction. Keywords: Thai Nguyen, developing agriculture, solutions, sustainable development.

1. Introduction Thai Nguyen is considered as the cultural and economic center of the Northern Midlands and Mountainous region. This province has a geographical location, natural resources and favorable natural conditions for agricultural development. In the context of the country's industrialization and modernization, Thai Nguyen has been undergoing a drastically economic restructuring. However, with the characteristics of a midland and mountainous province, the agricultural sector will still play a significant role in the economic development of the province in near future. Therefore, providing breakthrough solutions for the sustainable development of the agricultural sector of Thai Nguyen province is important and of practical significance. The research works related to sustainable development and sustainable agriculture development include: (1) “Strategic orientation for sustainable development in Vietnam - Agenda 21 of Vietnam, 2004” in which the Congress has given the orientations for sustainable exploitation of natural resources, environment protection, and sustainable development of economic sectors, including the agricultural sector; (2) research by author Dang Van Phan, Vu Nhu Van (2008) "Sustainable agriculture development: interpretation and practical comprehension approach". The research has explained quite deeply about the concept of sustainable agriculture development and the practical approach. At the same time, the authors have provided new approaches such as the eco-agriculture approach, the 3N approach (agriculture, farmers, rural areas), the global agriculture value chain, etc.; (3) There are also some other sustainable agriculture development studies such as Franck Jesus' research "Sustainability of agricultural development in the North of Vietnam", Le Thi Nguyen’s research "Agricultural efficiency - factors and solutions to improve agricultural productivity in the mountainous regions of Vietnam” (Hue University), etc. The research works related to Thai Nguyen province include: "Ethnic communities with the use of land and forest resources, towards the goal of sustainable development in Thai Nguyen province " (2007) by Duong Quynh Phuong; “Research on assessment of natural potentials, including land potentials and land use for agricultural development in Thai Nguyen province”

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(2011) by Le Thi Nguyet. In addition, every year the Department of Agriculture and Raw Agricultural Development of Thai Nguyen province prepares and issues assessment reports on the province's agricultural development. The aforementioned studies are important documents in proposing research methods and solutions for sustainable agriculture development in Thai Nguyen province. 2. Methodology The methodological approaches adopted for our investigation are based on ecological landscape approach, forecasting approach, community approach, economic model approach and sustainable development approach for mountainous agriculture and forestall areas. The author applies variety of research methods, including: Document collection and processing methods, systematic analysis methods and field survey methods. The data and documents used in the study are collected and analyzed from various reliable sources such as: Statistical Yearbook of Thai Nguyen Province (2020), Synthesis Report of Development Plan agriculture and rural areas of Thai Nguyen province to 2020 and orientations to 2030 by the Department of Agriculture and Rural Development of Thai Nguyen (2010), Thai Nguyen Geography (2009); Agenda 21 in Vietnam (2004). The additional data is updated from the author's recent research and investigation in Thai Nguyen province. 3. Results and discussions 3.1. The feasibility of proposed solutions for sustainable agricultural development in Thai Nguyen province 3.1.1. The strategic development plans of sustainable agriculture in Vietnam and Thai Nguyen government policies on agricultural development to 2030 The government development orientation (Vietnam Agenda 21, 2004) has determined that the strategy of agricultural development of the 21st century is agricultural commodity production on the basis of industrialization and modernization ensuring the requirements of sustainable agriculture. The comprehensive report on the overall plan for agricultural and rural development of Thai Nguyen province with a vision to 2030 includes the mission and policies of development as follows: Develop agriculture - forestry in accordance with commodity production with high efficiency and sustainability; apply scientific and technical advances to improve productivity and quality of agriculture - forestry - fisheries, ensuring hygiene and food safety (The Department of Agriculture and Rural Development of Thai Nguyen Province, 2010) 3.1.2. Current status of agricultural development in Thai Nguyen province * Agricultural production value In general, agricultural production in Thai Nguyen province has a relatively good development. The production value of the industry increases by 7.6% per year on average, higher than the national average growth rate. The above growth has contributed to increase the average value of production of the agricultural sector per capita (Table 1). Table 1: Value of agricultural production per capita of Thai Nguyen province at current prices Year 2000 2005 2010 2015 2019 Average income per capita 1,4 2,5 6,5 13,0 16,9 (million VND / person)

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Source: Calculated from provincial statistics, Thai Nguyen Statistical Office, in 2020 * Agricultural production structure Currently, the structure of agricultural production in Thai Nguyen province is changing according to the general development trend of the whole country, in which the proportion of crop production is gradually reduced while the proportion of the livestock industry gradually increases. For the crop sector, focus on the development of industrial trees and fruit trees; for the livestock sector, focus on developing cattle and poultry in the direction of commodity production. The restructuring of agricultural production of the province in recent years is appropriate, as a result. However, the speed of restructuring of agricultural production of the province in recent years has not been commensurate with the potential and the advantages of the province, that is: - Of the total agricultural land currently in use, 75,18% is land for annual crops (in which the area of food crops accounts for 56,9%, the area of annual industrial crops only accounts for 2,83 %), land for perennial crops only accounts for 24,68% (in which area of perennial industrial crops accounts for 14,57% area of fruit trees is 10,11%) (2019). The situation of land use as above shows that, although it is a mountainous province, the area of annual crops, especially food crops, is still very large, and the area of industrial crops is limited. - The production value of the crop production decreased while the value of the livestock industry and agricultural services gradually increased but with not high speed. The value of farming industry in recent years has been decreased but still accounts for a large proportion in the total value of the agricultural sector (55,2%), the value of the husbandry industry and agricultural services increased, but the structure of the value of agricultural production was not commensurate (44,8%) (2019), the livestock industry has not yet reached the target of becoming the main industry in agriculture (Thai Nguyen Statistical Office, 2020). 3.1.3. Some forecasts related to sustainable agricultural development in Thai Nguyen province to 2030 * Forecast about global climate change affecting agricultural production According to experts, Vietnam is one of five countries severely affected by climate change. Thai Nguyen province though is a midland and mountainous region that is not strongly affected by sea level rise. However, with increasing extreme weather conditions such as droughts, floods, etc. has been and will adversely affecting agricultural production. The consequences of global climate change affecting the agricultural sector of Thai Nguyen are reflected in the increasing epidemic diseases such as yellow dwarf epidemic, leaf twisting, and brown plant hopper, etc., in rice production; pandemic H1N1, H5N1 in livestock; forest fires in the dry season in some districts, etc. affecting the quality and productivity of agricultural products. * Forecasts about the consumption market for agricultural products Domestic market - Food market, vegetables, livestock products, forest products With the current population growth rate, it is forecasted that by 2030 the population of Vietnam will exceed 100 million people. The increase in population means that the consumption of food, vegetables, and livestock products, etc. also increases. Therefore, the market for these agricultural products of Thai Nguyen will also be expanded. On the other hand, Thai Nguyen's population is forecasted to be about 1,400 thousand people by 2030 (The Department of Agriculture and Rural Development of Thai Nguyen Province, 2010). In

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addition, there are many colleges and universities in the province with a very large number of students. This will be a potential market for food products, vegetables, livestock products, printing paper, writing paper, etc. - Tea market: this is the dominant and key product of Thai Nguyen in the past time and in the future. However, for the author’s viewpoint, the domestic tea market will be stable and Thai Nguyen tea will face difficulties due to stable domestic consumption and competition with many types of tea in the market. This requires Thai Nguyen government to diversify tea products, produce high quality tea, specialties, and ensure food safety. Overseas market The country's integration process such as our country being a member of ASEAN, a member of AFTA, especially joining the WTO will bring great opportunities for the whole country in general as well as Thai Nguyen in particular in expanding the agricultural market, including export, cooperation and investment. On the other hand, this integration process also brings challenges for Thai Nguyen, which is increasingly fierce competition with countries in the world and with regions and provinces in the country that have the same comparative advantage. - Tea market: The world tea market is very potential. Thai Nguyen has protected the trademark of "Thai Nguyen tea" (Resolution No. 1334 / QD-SSHT dated December 26, 2006 of the Department of Intellectual Property, Ministry of Science and Technology), thus, when this brand is advertised well in global market, it will be a prestigious brand that is trusted by people of other countries. Some traditional and potential tea markets of Thai Nguyen such as: EU, US, Eastern European countries, Japan, Pakistan, etc. 3.2. Solutions for sustainable agricultural development in Thai Nguyen province to 2030 3.2.1. Fundamental solutions From now to 2030, the agricultural sector will still play an important role in Thai Nguyen's development to ensure food security, food safety, improve people's lives, and improve the rural face. Based on the Sustainable Agricultural Development Strategy in Vietnam, the perspective of agricultural development in Thai Nguyen province to 2030 as well as the current state of agricultural development of the province, forecasts related to sustainable agricultural development in Thai Nguyen province in the coming time, some solutions for sustainable agricultural development in Thai Nguyen province are proposed, including: * Solutions on the use and planning of agricultural land In the coming years, according to the provincial planning, agricultural production land will be partially reduced for construction and development of urban areas, rural residential areas and factories, factories and processing establishments. Therefore, when using and planning land, it is necessary to make full use of and minimize the conversion of commercial agricultural land to other purposes. - Step up land consolidation and exchange to limit the use of fragmented agricultural land, towards large-scale agricultural development, convenient for the application of technical advances and mechanization. - Construct high-tech agricultural zones for the production of concentrated, high-quality goods associated with the processing industry and uninterrupted commercial services from production to collection agents, distributors and the user (or the exporter). High-tech agricultural zones such as: Tan Cuong, Phuc Triu tea area (Thai Nguyen city), Trai Cai tea area (Dong Hy), La Bang tea area (Dai Tu); high quality commodity rice areas in Dinh Hoa, Phu Binh, Pho Yen,

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Thai Nguyen City; fruit tree areas Hoa Binh (Dong Hy), Minh Tien (Dai Tu), etc.; vegetable areas in Dong Hy, Tuc Duyen and Phu Binh; Flowers and ornamental plants along Thai Nguyen, Dong Hy, Dai Tu, etc. - Improve the efficiency of land use: it is necessary to convert some paddy field with one crop per year to the area for aquaculture such as in some villages in Tan Phu - Pho Yen, Ha Chau - Phu Binh; convert some inefficient agricultural land to concentrated livestock farm land. * Scientific and technical solutions It is vitally necessary to: - Apply genetic modification technology in seed production to produce and select high-yield varieties that adapt to climatic conditions, weather, land, topography of each region in the province. - Apply technology in the production of clean agricultural products in order to improve the quality of products and goods for consumption in the province and for export. - Strengthen research on processing technology, agricultural product preservation, and environmental treatment. - Cooperate with universities in the city such as University of Agriculture and Forestry, University of Science, University of Education in the implementing practical application of scientific research in the field of agriculture. * Investment capital solutions There are three solutions that the Thai Nguyen government should take the advantage on, that is: - Firstly: utilizing the investment capital from the government’s budget. - Secondly: mobilizing the capital from citizen by creating all favorable conditions (with preferential policies, reasonable regimes, etc. which are guaranteed by law). - Third: developing joint venture cooperative activities, economic coorperate to attract capital investment from outside. Regarding the adjustment of investment structure to accelerate the development of commodity agriculture, attention should be paid to prioritizing investment in key industries, avoiding the situation of investment is wide spread with low efficiency, etc. It is necessary to focus on capital investment for projects with high economic value such as: safe vegetable project, high-class tea development project, specialty, flower project, ornamental plant, livestock projects under the farm model. It is also necessary to invest funds building facilities, infrastructure to develop production models such as irrigation stations, plant breeding stations, livestock, net houses, etc. * Solutions for agricultural development services It is needed to invest in upgrading the existing agricultural technical service system of the province to improve the operational capacity, especially the service of new plants and animals, forest nurseries; services of fertilizers, plant protection drugs, animal feed; soil preparation, transportation, rice plucking, water pumping services; input market information services such as prices of livestock breeds and plants; new varieties with high yield, good disease resistance, and reputable brands of animal feed, pesticides, fertilizers , etc. * Developing agricultural product processing industry, specifically: - Tea processing industry: based on the forecast and ability to supply raw materials and the formation of material areas as well as according to the provincial vision 2030 (The Department of Agriculture and Rural Development of Thai Nguyen Province, 2010), also according to the

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research of home selection experts, the processing machine with the raw material area needs to follow the formula: N = Q: (n  K) in which: N: the processing capacity of the machine by ton of fresh tea buds/day. Q: The output of fresh tea buds of the raw material area is expected to be harvested during the year. n: number of tea harvest and processing days in a year. K: uniform coefficient of tea supplied for months in the year of production. - Vegetable and fruit processing industry and meat processing: need to invest in cold storage to preserve vegetables and fruits for longer. Use cold storage for meat preservation and livestock hold. * Solutions to consumer markets: - Enhance marketing and advertising and searching markets, providing market information, expanding markets; strengthen the information system, marketing and advertising; establish agents and representatives in key markets, proceeding to register trademarks and trademarks in domestic and international markets, especially tea, vegetable, flower and beef products. - There is a close combination between industry, agriculture and trade to expand consumption, not just limited to raw materials. Increase the processed agricultural products, creating the competitiveness of commodity agricultural products in the market. - Participate in trade fairs and trade exhibitions on agricultural production in the province or in different locations. neighboring tables (Hanoi city, neighboring provinces and cities, etc.). - Organize workshop, customer conference to create opportunities between producers, traders and managers to exchange and learn experiences in developing production and consuming agricultural products. - Invest in the development of an agricultural tourism village in Tan Cuong commune - a famous specialty tea area of Thai Nguyen. This is a commune with a favorable location because it is close to the center of Thai Nguyen City and very close to Coc Mountain Lake, so it is possible to combine tourism development. The development of tourism here on the one hand has increased the income of people from tourism, on the other hand is the opportunity to promote Thai Nguyen tea brand. * Solutions on labor resources - Build, train and develop the contingent of agricultural management staff of the province because currently this contingent is still very thin and not professionally equipped for professional knowledge to disseminate to people. - Regularly open training classes for farmers on new varieties, effective and safe use of pesticides, pesticides, animal feed, etc. - Educate farmers to raise awareness of agricultural production to ensure food hygiene and safety, and to register for certification of clean and safe products, etc. to ensure product reputation in the market. - Build and develop a contingent of intellectuals serving agriculture, for example to facilitate loans for students who are children of mountainous districts studying agriculture and forestry majors at colleges, universities to encourage them to work at their homeland after graduation; build a loan fund for young advanced farmers to establish a career in the homeland, etc.

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- Cooperate with science - technology, medical training institutions, etc. in Hanoi, Thai Nguyen to improve the qualifications of agricultural staff of the province. * Solution for the environment - Propagate farmers to use organic and microbiological fertilizers instead of inorganic fertilizers, and collect Thoroughly handling plant protection chemical packaging. Create bio- fertilizers, organic fertilizers (such as the model VAC, VACB, etc.) and appropriate farming methods to enhance the ability to enrich soil nutrients, especially in poor areas. - Develop and apply clean production models, apply more science and technology to the production process, use environmentally friendly production models such as hydroponics, net houses, etc. - Set up education and propaganda about environmental protection for agricultural producers. 3.2.2. Some breakthrough development solutions * Market promotion In order to develop in the direction of service, agricultural products that compete well in the market and known to many consumers need to be participated in trade fairs and exhibitions, festival, etc. through which we advertise agricultural production in the province or neighboring areas (Hanoi city, neighboring provinces and cities, etc.), especially the fairs on tea plants - an agricultural product with a high comparative advantage, in order to promote the Thai Nguyen tea specialty brand so that domestic and foreign consumers have a chance to know "the first prestige of tea ”. * Developing a clean, environment-friendly agriculture This is one of the very important solutions to ensure the prestige of Thai Nguyen's agricultural brands in the market. In order to develop a clean and environmentally friendly agriculture services, it is not just about propagating farmers to raise awareness of agricultural production to ensure food hygiene and safety; It is necessary to regularly open training courses for farmers on new varieties, effective and safe use of plant protection products, pesticides, animal feed, etc. Thai Nguyen province also needs to have strict requirements for the registration of certification of clean and safe products for agricultural products of producing households. Also, there should be strict regulations for producers who violate food safety and hygiene. * Developing a number of agricultural models with high economic efficiency and exploit the comparative advantage of each region in the province. - Model of specialty tea plants: This is the leading product in Thai Nguyen's commercial agricultural products. It is necessary to invest in development in Tan Cuong, Phuc Triu (Thai Nguyen city), La Bang (Dai Tu), Trai Cai (Dong Hy) communes. These are areas that have a high comparative advantage in developing specialty tea plants, bringing brands and high economic value, and should be prioritized for investment in production. To develop this tea model, the province needs to have a policy to support capital for the people to replace the old midland tea varieties with high yield tea varieties such as LDP1, Kim Tuyen, etc., increase concentration train people to apply science and technology to care, process, preserve tea, and promote Thai Nguyen tea brand, etc. - Thai Dinh Hoa rice model: Need investment and development in 6 communes: Dong Thinh, Bao Cuong, Phuc Chu, Phuong Tien, Dinh Bien and Kim Phuong. These are regions with specific climatic and soil advantages that are very suitable for the "dwarf fetus" rice variety that is now favored by many consumers and the economic efficiency is high, and the farmers'

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income is high per hectare of agricultural land compared with other rice production (increased by nearly 3 million VND / year). - Tuc Duyen - southwest Dong Hy vegetable development model: These are the two main vegetable supply areas for the needs of the population in Thai Nguyen city today. However, Thai Nguyen should aim to develop a model of clean vegetables, limit in using chemicals and be friendly with the environment. - Wild boar hog farm development model: The current demand for clean livestock products is very high. The development of raising wild boar for meat supply to the market today both ensures the clean food demand of the people, at the same time the economic value is quite high because the price of 1 kg of wild boar is usually higher than 1, 5 - 2 times the price of 1 kg of demostic pig. Therefore, in the coming time, Thai Nguyen province should pay attention and have projects for farmers to develop this economic model to improve family life. - Model of agricultural tourism village in Tan Cuong commune - famous specialty tea area of Thai Nguyen. This is a commune with a favorable location because it is close to the center of Thai Nguyen City and very close to Coc Mountain Lake, so it is possible to combine tourism development. The development of tourism here on the one hand has increased the income of people from tourism, on the other hand is the opportunity to promote Thai Nguyen tea brand. In parallel with the development of the above agricultural models that bring high economic value, Thai Nguyen province needs to build high-tech agricultural zones for concentrated and high-quality commodity production in association with the processing industry and trading services from production to collection agents, to distributors and to users (or exporters). High- tech agricultural zones such as: Tan Cuong, Phuc Triu tea area (Thai Nguyen city), Trai Cai tea area (Dong Hy), La Bang tea area (Dai Tu); high quality commodity rice areas in Dinh Hoa, Phu Binh, Pho Yen, Thai Nguyen City; fruit tree areas Hoa Binh (Dong Hy), Minh Tien (Dai Tu), etc.; vegetable areas in Dong Hy, Tuc Duyen, etc. 4. Conclusion With the characteristics of geographical location, natural conditions, natural resources and socio-economic conditions, Thai Nguyen possesses many advantages for agricultural development. In the future, this is still a very important economic sector for Thai Nguyen because it provides a large number of jobs, contributes to poverty reduction, and improves livelihoods for farmers. Over the past years, the development of the agricultural sector of Thai Nguyen province has been showing many positive changes such as rational agricultural restructuring, and has been forming many specialized agricultural regions, etc., thereby improving value of agricultural production and value of agricultural production per capita. However, the growth rate of the agricultural sector is not commensurate with the potentials and advantages of the province. In the general development trend of the country, Thai Nguyen government needs to develop the agricultural sector in a sustainable direction, ensuring synchronous efficiency on all three aspects of economy, society and environment. Basic solutions for the sustainable development of the agricultural sector in Thai Nguyen should be applied synchronously. At the same time, the government should focus on breakthrough solutions such as promoting the market, developing a clean agriculture which is friendly with the environment and promoting a number of agricultural models with high economic efficiency to exploit the comparative advantage of each region in the province.

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References 1. Le Thi Nguyet (2011). Scientific basis and solutions towards sustainable development of agriculture and services in Thai Nguyen province, Ministry of Science and Technology, Thai Nguyen. 2. National Office Of Intellectual Property, Ministry of Science and Technology (2006). Decision No. 1334 / QD-SSHT 26/12/2006, Hanoi. 3. Provincial Committee - People's Council - People's Committee of Thai Nguyen province (2009). Thai Nguyen’ geography, National Political Publishing House, Hanoi. 4. Thai Nguyen Statistical Office (2020). Statistical Yearbook of 2010 - 2019. 5. The Department of Agriculture and Rural Development of Thai Nguyen Province (2010). Synthesis Report on the Master Plan for Agricultural and Rural Development of Thai Nguyen Province to 2020 and Orientations to 2030, Thai Nguyen. 6. The Strategic Orientation for Sustainable Development in Vietnam (2004) (Vietnam Agenda 21).

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Strategic Orientation of Tourism Sustainable Development: Case Study of Ponagar Cham Towers, Nha Trang

Le Thi Kim Lien, Mai Thi Khanh Van, Nguyen Thi Hang Phuong, Quan Ba Chinh, Nguyen Thi Mai School of Hospitality and Tourism, Hue University Abstract Ponagar Cham Towers is a potential place to develop cultural tourism activities. The current state of cultural tourism at this tourist site has been studied by carrying out 205 tourist surveys and several other analytical methods. The research results showed that Ponagar Cham Towers is the intersection of two coultures: Vietnam and Cham. This cultural intersection has made this area a diverse cultural tourism resource. When implementing assessment, the sustainable factors in cultural tourism activities in the research site basing on tourists' perspective, while factors related to 'economic sustainability' were ensured, other factors related to 'infrastructure" had many problems to be solved. After performing a SWOT analysis, groups of solutions were given related to cultural tourism infrastructure development; social, cultural, and environmentally sustainable cultural tourism development; since then, the sustainable goal of attracting cultural tourists to Ponagar Cham Tower will be achieved. Keywords: Cultural tourism, Nha Trang, Ponagar Cham Towers, Sustainable development

1. Introduction Cultural tourism is defined as: “Movements of persons essentially for cultural motivations such as study tours, performing arts and cultural tours, travel to festivals and other events, visit sites and monuments, travel to study nature, folklore or art, and pilgrimages” (WTO, 1985). Since the 1970s, this type of tourism has been recognized as a separate tourism product. It was developed with the aim of serving tourism in combination with the mission of preserving the cultural heritage of each region (McKercher and Du Cros, 2002). Thus, cultural tourism activities not only bring economic benefits but also cultural and social benefits, consistent with the trend of sustainable development of the world. However, many studies have shown that, besides the positive effects that cultural tourism creates, it can also bring negative impacts on the conservation of local community culture. Organizing excessive sightseeing activities, the inappropriate use of cultural values, or the transformation of cultural traditions to suit the preferences of modern travelers, many cultural assets have to face the risk of losing identity, or ceasing to develop sustainably (McKercher & Du Cros, 2002; Rodzi et al., 2013). Ponagar Cham Towers is one of the famous and special tourist spots (Nguyen Thien Tam, 2020). Ponagar Cham Towers is considered "a relic of all monuments" in the whole of Khanh Hoa province, is a tourist destination not to be missed when coming to Nha Trang city. Therefore, every year, the monument welcomes millions of domestic and foreign tourists to visit, learn, study, and research. With values in many fields, the relic has great potentials to develop many different types of tourism, including cultural tourism. In fact, over the past time, cultural tourism has been exploited and brought about certain effects at Ponagar Cham Towers. However, the quality, as well as efficiency, are not commensurate with the potential of the monument. Therefore, the paper was conducted with the aim of

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introducing the tourism potential of Ponagar Cham Towers in Nha Trang, evaluating the sustainability of cultural tourism activities in Ponagar Cham Towers, Nha Trang from the tourist's point of view and proposing solutions to improve tourism development in Ponagar Cham Towers, Nha Trang based on SWOT analysis. 2. Methods 2.1. Methods of information collection 2.1.1. Methods of collecting secondary data Secondary documents related to Ponagar Cham Towers and the tourism situation here are collected from local agencies as well as related scientific reports, studies, and articles on the Internet. 2.1.2. Methods of collecting primary data Collected through the questionnaires available with the number of tourists is 205, of which Vietnamese visitors are 102, Chinese visitors are 62 visitors, and visitors from Europe, US visitors, Australia, Canada, Korea, Japan are 62. Access time after finishing the tour at the site, while tourists relax, take photos, drink water ... Pay attention to tourists with certain knowledge about the research direction. 2.2. Analytical method The exploratory factor analysis (EFA) method aims to reduce the set of many variables into several relatively fewer variables, helping the study to have a more meaningful set of variables. 2.3. Study overview 2.3.1. The theoretical basis for the study of sustainable cultural tourism The Law on Tourism of Vietnam (2017) affirms that “Sustainable tourism development is tourism development that simultaneously meets socio-economic and environmental requirements, ensuring harmonization of interests of owners who participate in tourism activities, does not harm the ability to meet the demand for tourism in the future”. Sustainable development means satisfying the tourism needs of the market, bringing great socio-economic benefits to the tourist destination without significantly reducing the quality of environmental resources in the future. So in order to sustainably develop festival tourism, we need to adhere to the following principles: - Principles of systematic conservation and development - Market rules - Educational principles and encourages participation of the local community The author Nguyen Duc Tuy (2014) in the study "Current situation of sustainable tourism development in the Central Highlands" proposed a set of evaluation standards consisting of 4 groups as follows: - Economic group includes Growth of tourism income steadily for many consecutive years; The number of tourists has steadily increased for many consecutive years. - Social group includes: (1) The friendliness of the local government and local people towards visitors; (2) The proportion of workers working in the tourism industry and income from tourism activities of local people; (3) The proportion of historical and cultural values preserved and promoted. - Environment group includes: (1) The rate of natural tourism resources exploited and conserved; (2) The proportion of tourist sites that treat waste collection.

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- State management group includes: (1) State management for sustainable tourism development in the locality; (2) Security, politics, social order, and safety in the locality. 2.3.2. Research models The theoretical and practical studies all show that the three major pillars of sustainable development are economic, social, and environmental. Sustainability must result from a consistent development in all three aspects and special emphasis on social and environmental issues. Therefore, from the general sustainable development model in the world, and the synthesis of studies on aspects of sustainable tourism development together with analysis of the practical situation at Ponagar Cham Towers, the research model on sustainable development of cultural tourism at Ponagar Cham Towers is as follows: Table 1: Factors on sustainable cultural tourism development at Ponagar Cham Towers Factor Encode Infrastructure F1 Economy F2 Cultural F3 Society F4 Environment F5 3. Results 3.1. Cultural tourism resources of Ponagar Cham Towers Referring to the ancient Kingdom of Champa, it is impossible not to mention the Ponagar Cham Towers in Nha Trang. This is a special architectural complex marked for the period of Hinduism flourishing here. The temple area of Ponagar Cham Towers, Nha Trang is one of the religious centers of the Champa dynasties during the history of this kingdom (II - XVII). As a national historical and cultural relic, Ponagar Cham Towers has a lot of potentials for tourism development in general and cultural tourism in particular based on the inherent resources of the monument. The tower is located on the hill of Cu Lao about 20m above sea level and has an area of 17,000m2 including 5 unique architectural works (Nguyen Cong Bang, 2005). In addition, this area also owns unique sculptures, a rich treasure of ancient Cham epitaphs (Ngo Van Ban et al., 2008), and interesting legends related to the culture, beliefs of the Cham people. One of the main attractions here is a series of unique festivals. The Ponagar Cham Towers Festival is one of the most remarkable festivals of Nha Trang, recognized by the Ministry of Culture, Sports and Tourism as a National Intangible Heritage in 2012. The most unique feature of the festival is it is the immersion in the festive atmosphere of both the Cham and the Vietnamese. The festival includes small festivals and other activities [Le Thi Kim Lien et al, 2020). The relic of the Ponagar Cham Towers in Nha Trang - Khanh Hoa is the convergence of traditional values of the Vietnamese - Cham exchange process in history, a symbol of national solidarity, contributing to the element of consolidating the community of the Vietnamese ethnic groups today and is an indispensable destination for every visitor when coming to Nha Trang - Khanh Hoa. 3.2. Tourist's assessment of cultural tourism at Ponagar Cham Towers, Nha Trang by sustainability 3.2.1. Characteristics of the investigated object The survey questionnaire was interviewed with 205 tourists surveyed. Based on the results table, we can see some of the following characteristics:

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Table 2: Basic information about surveyors Unit: Person Criteria amount % Criteria amount % Total number of survey samples: 205 2. The way to the Ponagar Cham Towers of 1. By Nationality investigative tourists Vietnamese 102 49.7 Self-organizing 129 62.9 Chinese 41 20.0 Through the travel business 66 32.2 Others 62 30.3 Others 10 4.9 3. Sex 4. Age Male 120 58.5 Under 18 12 5.9 Female 85 41.5 18 - 35 81 39.5 5. Ocupation 35 – 60 89 43.4 Student 41 20.0 Over 60 23 11.2 Official 59 28.8 6. Education level Business managers 38 18.5 High school 36 17.6 Employees in enterprises 32 15.6 College 54 26.3 Retirement 29 14.1 University 115 56.1 Others 6 3.0 7. Number of visits to Ponagar Cham Towers 8. Information channel about Ponagar Cham Towers The first time 94 45.0 Internet 102 42.6 From 2-3 times 69 33.6 Folders, leaflets 71 13.8 Over 3 times 42 20.4 Relatives, friends 69 13.4 Tour operators 78 19.8 Television 76 14.8 Books, magazines 66 12.8 Others 52 10.1 Source: Author’s survey data in 2019 (analyzed by SPSS 22.0) Regarding the purpose of participating in cultural tourism, Table 3 showed that tourists come to cultural tourism in the relic with the main purposes of learning the art of building Cham temples (20.3%), learning about Cham literature (17.5%), learn about history (17.3%). Other purposes with a lower rate are to learn about Mother worship beliefs in Khanh Hoa (14.7%), go on pilgrimage (14%), learn about the process of cultural interaction between Viet-Cham in history (12.6%), for other purposes (1.6%). That proves that cultural tourism at Ponagar Cham Towers is very attractive to tourists.

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Table 3: Purpose to relic Ponagar Cham Towers by tourists to investigate Unit: guests Criteria Amount Rate (%) Total 205 100 learning about history 92 17.3 learning about Cham literature 102 17.5 learning the art of building Cham temples 108 20.3 learning about Mother worship beliefs in Khanh Hoa 78 14.7 learning about the process of cultural interaction between Viet- 67 12.6 Cham in history going on pilgrimage 74 14.0 Other purposes 7 1.6 Source: Author’s survey data in 2019 (analyzed by SPSS 22.0) 3.2.2. Analyzing and evaluating tourists' investigation of sustainable cultural tourism development at Ponagar Cham Towers Table 4: Overall assessment of factors affecting sustainable development of cultural tourism at Ponagar Cham Towers Factor Number of surveys Standard deviation The average value Infrastructure 205 0.640 3.1895 Economy 205 0.728 4.3364 Cultural 205 0.630 4.0356 Society 205 0.653 3.7633 Environment 205 0.577 3.4127 Source: Author’s survey data in 2019 (analyzed by SPSS 22.0) The results in Table 4 show that among the 5 factors affecting the sustainable development of cultural tourism at Ponagar Cham Towers, 3 factors are rated quite well by tourists, the highest factor is "Sustainable economy" with the value 4.43, followed by the factor "Sustainable culture" 4.03, followed by the factor "Sustainable in terms of society" 4.12. Besides, two factors are "Environmental Sustainability" with value 3.41, "Infrastructure" 3.18, the rating is average. The values of these two factors are close to and reach the absolute score of the average (3.40). Regarding the factor "Sustainable infrastructure" In fact, due to the limited space, it is only possible to ensure parking for motorbike within the relic area. Since 2014, the foot area of Xom Bong Bridge, which is a car parking lot under the management of the monument, has been handed over to the city. Since then, this area has also been invested by the city to expand and exploit car parking service, but due to the limited scope, it is difficult to expand the area of the yard, in peak seasons such as in the summer and holidays, the average number of visitors of 8,000-10,000 visitors/ day could not meet enough space for the number of parking cars. Besides, because it is not under the management of the relic, a number of shortcomings such as ensuring security and order, parking ticket prices ... also lead to some frustrations for visitors.

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Currently, the relic area has been invested and built a public sanitation system, but due to a large number of tourists, such as bridges and large and continuous usage frequency, the quantity and quality of sanitation works. The tourist's demand service is not guaranteed yet. In addition, the relic still does not have free wifi coverage, the communication system is limited, medical services are sketchy, so it does not support visitors in accessing information as well as health care. For the factor "Economic sustainability" Tourism development contributes to creating jobs for many workers. In 1997, when the Center for Monuments Conservation was established - the unit directly managing the Thap Ba relic had 22 officials and workers. Up to now, the workforce has more than 110 public employees, and workers increased to 110 people, not to mention local workers when participating in tourism such as restaurants, hotels, trading ... Besides, because it is a historical and cultural relic with spiritual elements, the relic welcomes a large number of pilgrims every year, mobilizing a sizable source of merit for the restoration and restoration work. 3.2.3. Decision after joining the tourist's cultural tourism Table 5: Intents after the cultural visits of tourists Unit: Person Yes No Not yet Criteria amount % amount % amount % Continuing to participate in 193 94.1 4 1.96 8 3.9 cultural tourism Willing to introduce others 179 87.3 5 2.4 21 10.2 Source: Author’s survey data in 2019 (analyzed by SPSS 22.0) Regarding continuing to participate in cultural tourism, the survey results show that 94.1% of cultural tourists will return to continue cultural tourism at the site in the future, 3.9% of visitors say no know, and 1.96% do not come back. This shows that cultural tourism at the site leaves a good impression on visitors and is ready to return to the site in the near future. The number of people who do not return maybe because of geographic or job difficulties. Regarding the willingness to introduce others to cultural tourism at the monument: up to 87.3% of tourists are willing and only 10.2% of the respondents do not know and 2.4% answered no, which also affirms the quality. Good of cultural tourism at the monument in the visitor's mind. This is an opportunity to increase the rate of visitors to the monument in the future. 3.3. Analysis according to the SWOT matrix on sustainable cultural tourism development in Ponagar Cham Towers 3.3.1. Strengths (S) - The relic has diverse and rich cultural tourism resources with unique architectural works, a long history, unique cultural features, interesting legends, and unique festivals. - The relic has preserved and brought into play the historical, cultural, and religious values well in exploiting for tourism. - Cultural tourism products at the monument have unique local colors, are attractive, and have a good impression on visitors' minds

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- The relic has a favorable geographical position to connect tours, travel routes, is an ideal destination for domestic and foreign tourists has an abundant tourist market. - Cultural tourism activities at the monument have brought significant economic benefits to the local government and people. 3.3.2. Weakness (W) - Infrastructure does not really meet the actual needs: parking space (such as Xom Bong Bridge), especially cars are lacking, signage system, sightseeing diagrams at unscientific monuments, exhibitors still have many restrictions on space and artifacts, there are no performers to express cultural values, and the existing artifacts have not been honored. - The tourism development at Ponagar Cham Towers is still "enjoyment", no long-term development strategy, support services are still monotonous. - Environmental sanitation at the site still has some issues that need to be overcome such as propaganda, not good awareness of environmental protection of visitors, waste storage equipment, and collection and treatment that have not met the needs. - Cooperation and association for cultural tourism development have not been paid attention to. - Security in Nha Trang city in general and Ponagar ChamTowers, in particular, has potential complications due to the growing population and increasing tourists, leading to some security and order problems such as theft, enticing tourists. - Human resources for tourism, including cultural tourism are lacking and of low quality. - Promotion of cultural tourism has not been focused, leading to the failure to fully exploit the tourism potentials which are very unique at Ponagar Cham Towers. 3.3.3. Opportunities (O) - Due to the increasing number of tourists coming to Nha Trang in general and Ponagar Cham Towers in particular, so the problem is that the relic needs to diversify the types of tourism besides traditional tourist types to meet the demand needs of visitors. Therefore, cultural tourism is also a solution to diversify the types of tourism at the present relic. - Strong and deep globalization and international integration trend, the need to learn cultural values of ancient civilizations, including Champa, contribute to promoting cultural tourism at Ponagar ChamTowers. - The trend of the world and domestic tourists interested in marine tourism, ecotourism, village, and cultural tourism ... all of these types are trends in tourism development in the future. - Khanh Hoa has built a tourism development plan 2015 - 2020 with a vision to 2030, has paid great attention to the promotion of local tourism, including Ponagar ChamTowers’s destination. 3.3.4. Threats (T) - The world and regional politics are becoming more and more complicated, affecting development of cultural tourism in the relic. Natural disasters and epidemics, especially the Covid-19 epidemic, which are causing serious consequences in all aspects of the world. That is a huge challenge to Nha Trang tourism in general and Ponagar Cham Towers’s culture tourism. - The restoration of the relic has not achieved the best results because researchers have not yet grasped the secret to building towers of the ancient Cham people, the restoration phases are only limited to anti-collapse and degradation of the relics. Therefore, Ponagar Cham Towers were still affected daily and hourly by weather factors, extreme climates as well as the consequences of the previous restoration.

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- The process of urbanization is also a big challenge for relics, increasingly narrow spaces, solid concrete works increasingly existing, and overwhelming relics. - The overexploitation of tourism, the number of visitors expected to increase in the coming time is also a big challenge for the conservation of cultural heritage today 3.4. Solutions for sustainable cultural tourism development at Ponagar Cham Towers Based on the analysis of cultural tourism resources, the current status of cultural tourism infrastructure and activities at Ponagar Cham Towers was made clear by the analysis of strengths - weaknesses - opportunities - threats (SWOT analysis). It can be seen that cultural tourism activities at Ponagar Cham Towers still face many problems in order to develop sustainably. Therefore, it is necessary to have solutions for cultural tourism development in the ruins of Ponagar Cham Towers. To contribute to overcoming the limitations of weak criteria, maintaining and further promoting the relatively well-evaluated criteria in order to create a good impression on visitors, thereby attracting cultural tourists to Ponagar Cham Towers increase both quantity and quality to ensure sustainable development, the authors proposes the following solutions: Solutions to develop infrastructure for cultural tourism: This factor is the lowest assessed by tourists out of the 5 factors (3.18). Solutions to develop infrastructure for sustainable cultural tourism development at Ponagar Cham Towers include: Construction planning to expand parking, especially cars, the area at the foot of the Tower needs to plan a temporary parking lot large enough for tourist cars to bring tourists to visit and can stop for a long time. At the same time, Khanh Hoa Provincial People's Committee can consider allocating land, building a parking area, keeping the car not too far from the monuments to facilitate traffic circulation as well as not cause congestion as today. Upgrading and building new traffic routes, signs leading to monuments, not only built within the city but also a smooth route connecting Ponagar Cham Towers with tourist attractions together. Since then, it is more convenient for online tours with Ponagar Cham Towers. Solutions to environmental sustainable cultural tourism development: Continue to raise social awareness about the role of cultural tourism in the residential community; Complete the system of internal rules, regulations, and regulations on environmental protection at relics; Coordinate in the propaganda and education on environmental protection for people and visitors to the relic. Solutions to developing socially sustainable cultural tourism: Although this is a factor assessed by tourists as fairly good (3.76), however, some problems still exist and affect the image of the monument. To gradually overcome this situation, according to the authors, there should be the following measures: The Ponagar Cham Towers management agency advises the City People's Committee to plan specific areas for trade and parking at Xom Bong Bridge to minimize the situation of clinging to visitors, increase the beauty of the tourist spot, and create safety for visitors. Install more camera systems in some locations, arrange more security forces to strengthen the inspection, especially during peak hours to minimize the impact of the theft problem. Solutions to developing culturally sustainable tourism: Focusing on conservation of architectural works, traditional festivals, and folk art forms to serve cultural tourism activities; Protecting, embellishing and promoting the inherent cultural traditions of Champa culture and Vietnamese culture at the relic; Having an appropriate cultural tourism development strategy; Building a digitized data system on cultural values of monuments.

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4. Conclusion Ponagar Cham Towers is a relic rich in tourism potentials, becoming a famous tourist destination in the country. Over time, the Ponagar Cham Towers has affirmed its position in Nha Trang, Khanh Hoa tourism. It is a famous, important, and attractive tourist destination. The relic has full conditions and potentials to develop cultural tourism so that it is increasingly consistent with the general development trend of the province and the country. Through the process of surveying and analyzing the current status of cultural tourism development in Ponagar Cham Towers in a sustainable direction is still monotonous, not commensurate with the potential of the monument, lack of attractiveness, and competition, so in the long run, it is not possible to attract a large number of domestic and foreign cultural tourists to the monument. The system of technical facilities, infrastructure for cultural tourism development is still inadequate, the quality of equipment, service workers at the site are not commensurate with the increasing requirements of visitors. The propaganda and advertising for cultural tourism activities have not been focused properly, still passive. Based on the analysis of the current status of cultural tourism activities at Ponagar Cham Towers in a sustainable direction, the research proposes solutions to focus on three groups of solutions: groups of solutions to improve infrastructure, and group solutions to cultural, social, and environmentally sustainable tourism development. Since then, ensuring the sustainable development of cultural tourism of Ponagar Cham Towers. References 1. Le Thi Kim Lien et al. (2020). Tourism Festival, Hue University Press, ISBN: 978-604- 974-470-9 2. McKercher, B., & Du Cros, H. (2002). Cultural tourism: The partnership between tourism and cultural heritage management. Routledge. 3. Ngo Van Ban, Nguyen Cong Bang, Le Quang Nghiem, Nguyen Viet Trung, Le Dinh Chi, Nguyen The Sang, Tran Viet Kinh, Nguyen Cong Ly, Nguyen Si Chuc, Tran Vu, Thai Thi Hoan (2008). Khanh Hoa cultural appearance of a land (Volume 1, 2, 3), Khanh Hoa Museum Publishing House, Khanh Hoa Folk Arts Association, Nha Trang. 4. Nguyen Cong Bang (2005), Ponagar Cham Towers - Nha Trang, Social Science Publishing House, Hanoi. 5. Nguyen Thien Tam (2020). Ponagar Cham Towers: Historical relic, an attractive destination in Nha Trang. World Travel. Accessed on September 14, 2020, at the website: https://thegioidulich.com/thap-ba-ponagar-di-tich-lich-su-diem-den-hap-dan-nha-trang- 36.html 6. Rodzi, N. I. M., Zaki, S. A., & Subli, S. M. H. S. (2013). Between tourism and intangible cultural heritage. Procedia-Social and Behavioral Sciences, 85, 411-420. 7. World Tourism Organization (1985), The State’s Role in Protecting and Promoting Culture as a Factor of Tourism Development and the Proper Use and Exploitation of the National Cultural Heritage of Sites and Monuments for Tourism. Report to the Secretary- General on the general programme of work for the period 1984–85, Madrid. P. 5

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Poverty Alleviation in Thai Nguyen Province during the 2010s: Achievements and Recommendations

Dr. Hoang Thi My Hanh Thai Nguyen University of Education Email: [email protected]

Abstract Thai Nguyen is an important province for socio-economic exchange activities between the Northern midlands and mountainous regions and the Northern Delta of Vietnam. Under the country’s constant movement and strong changes in the national socio-economy development, Thai Nguyen, an originally agricultural province, with its available potential, has greatly contributed to the socio- economic growth of Vietnam. Notably, the province has gained vital achievements in poverty alleviation since 2010; however, there are many problems that need to be tackled. Therefore, this paper proposes several solutions to overcome the shortcomings, promote economic development, and improve Thai Nguyen people’s living standards in the following years. Keywords: Poverty alleviation, Thai Nguyen, economy, society, culture, integration.

1. Introduction Economic growth and poverty reduction have a close relationship, being shown over the country. In the past decade, the economic growth rate with over 7% per year. The number of people living below the poverty line in our country has halved. Vietnam has become one of the countries with the fastest poverty reduction rates in the world (Vu Van Anh, 2010, pp.28). The rate of poverty and the rate of poverty reduction are different in Vietnam’s regions and localities. Of which, Thai Nguyen can be considered as a province with a high poverty rate. The poverty reduction process is slower than the other localities the country. The main reason is that the province has had many difficulties in the socio-economic development in general and conditions to reduce poverty and improve of the people's living standards. To overcome the limitations and achieve good results in the process of poverty alleviation, Thai Nguyen province needs to draw orientations and find out measures for the poverty reduction associated with the socio-economic development strategy of the province. Poverty is one of the common problems in the world, which has been paid with many concerns to be studied in different aspects. There have been many researches on poverty reduction and many of them are research work of Ministry of Labour, War invalids and Social Affairs; for example: Poverty in Vietnam (1993), Identifying poverty in Vietnam (1993), Poverty Alleviation (Hanoi, 1996). Poverty alleviation in association with economic growth (1997). Many academic works in poverty reduction were conducted including: Poverty Alliation in rural Vietnam nowadays by Nguyen Thi Hang in 1999; Au Thi Hue with the research on Poverty Alleviation in Dai Tu district, Thai Nguyen Provinve (during the 2010s) in 2014; Solutions to enhance social welfare for the poor in Thai Nguyen Province, Thai Nguyen Economics University in 2010 by Nguyen Thi Tuyet Nhung The above researches focus on poverty with different points of view, both in theory and current state; there haven’t been those studying the poverty reduction in Thai Nguyen province since 2010, however. This paper focuses on the important achievements in the poverty alleviation by Thai Nguyen province from 2010 up to now, at the same time it proposes some of the solutions

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to overcome the shortcomings and promote the economic development, as well as improve Thai Nguyen people’s living standards in the following years. 2. Methodology The paper uses data sources from the Provincial Statistical Yearbook and summary reports over the years. Literature reviewing, analyzing, evaluating and comparing data are used in this paper in order to highlight the research issue and to indicate the difference between the results of the previous research and this study of the author. Besides, statistical and retrospective documentary methods are also used to synthesize studies on poverty reduction in Vietnam and in Thai Nguyen province. 3. Results 3.1. The general socio-economic situation In January 1997, Bac Thai province was divided into two provinces namely Bac Kan and Thai Nguyen. Thai Nguyen province today includes Thai Nguyen City, Song Cong City and 6 districts: Phu Binh, Pho Yen, Dinh Hoa, Vo Nhai, Dai Tu, Phu Luong and Dong Hy. There are 178 communes, including 124 ones in highland and mountainous areas, the rest are in plain and midland (Thai Nguyen Statistical Yearbook, 2019, pp.19). Despite many difficulties and challenges, Thai Nguyen province, in the recent years (2010 - 2020), has made breakthroughs in economic development. The average economic growth rate is over 13.1% annually, 7.28% higher than the national average. The economic structure has shifted towards increasing the proportions of industry, construction and services. The economic growth rate of the province has increased over the years. By 2020, the Gross Regional Domestic Product (GRDP) of Thai Nguyen province is estimated at 9%; The GRDP was estimated at 83.5 million VND; Industrial production value (in 2010) was estimated at 743,800 billion VND, up 11.5% over the same period; The growth rate of production value of the agricultural, forestry and fishery sectors in 2019 compared to 2018 is 4%. Table 1: Gross domestic product at constant 2010 price by kind of economic activity with some provinces of the Northern midland (2019) - Unit: Billion Vietnamese Dong The provincial Thai Nguyen Bac Giang Lang Son Tuyen Quang GRDP 78.549 70.996 18.936 17.944 Agriculture-Forestry-Fishing 11.060 17.175 7.043 8.290 Industry – construction 62.530 59.238 7.315 8.338 Service 34.230 29.104 18.007 14.480 Source: Thai Nguyen Statistical Yearbook, 2019, pp. 490 In 2020, the world economic growth is forecasted to recover very slowly, with many risks and challenges such as multilateralism, increasing strategic competition. Regional and bilateral economic links continue to be promoted, but global economic links still face many difficulties; Competition in attracting foreign investment is getting fiercer. With the aim of striving to comprehensively achieve the socio-economic development targets for 2016-2020 term, Thai Nguyen province has focused on the main contents and key solutions such as: developing economy in line with comprehensive and synchronously developing society and culture, improving the people's material and spiritual life; strengthening natural resource management, environmental protection, natural disaster prevention, and responding to climate changes.

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The fields of society and culture have also made many positive changes. Of which, training courses for the staff of teachers and education administrators have been opened in order to improve their quality of teaching. Education and training of Thai Nguyen province has developed quite synchronously from universal education to professional secondary education, vocational training, college, university and higher education. This is one of Thai Nguyen potential and strengths and its comparative advantage in comparison with other provinces in the Northern midland and mountainous region. Thai Nguyen has seen much development in the fields of culture, sports and journalism, partly contributing to improving the people’s spiritual life. The system of local hospitals and the grassroots health network continues to be invested and gradually standardized. National defense, security, social safety which has been maintained, along with administrative reform... have contributed to improving the investment environment significantly. Thai Nguyen city holds the is highest income per capita, while Vo Nhai district has the lowest. Based on the data of GDP per capita (VND thousand), Thai Nguyen’s income can be divided into 3 groups: Group 1: High level: over 15 million VND: Thai Nguyen City, Pho Yen, Song Cong city; Group 2: Average level: 10 - 15 million VND: Dai Tu and Dong Hy districts; Group 3: Low: under 10 million VND: Phu Binh, Vo Nhai, Phu Luong and Dinh Hoa districts. Thanks to its appropriate socio-economic development strategies that promptly speed up the strong growth rate of industry and services and reduce the proportion of agriculture, Thai Nguyen has made a great deal of positive changes in socio- economic development. Those strategies have strong impacts on improving the people's life, increasing their living standards, as well as ensuring to fulfill all the targets for poverty reduction of the province. 3.2. Poverty Alleviation in Thai Nguyen province The national goal in 2020 is to reduce the national poverty rate by 1 to 1.5% / year on average (but 4% in poor districts and communes; for poor ethnic minority households to reduce 3-4% / year.) according to the multidimensional poverty line, improve livelihoods and increase the quality of life of the poor, ensuring that the average income per capita of poor households nationwide by the end of 2020 increases by 1.5 times compared to the end of 2015 (only poor households in poor districts poor communes, villages with extreme difficulties, poor ethnic minorities have doubled). Thanks to its stable growth, Thai Nguyen has had favorable premises and achieved great achievements in poverty reduction. In the period of 2010-2015, the whole province had 58,791 poor households, accounting for 20.57%. Of which, there were 3,584 households in urban areas, (6.1%); 55,207 (93.9%) in rural areas. By the period 2016-2020, the whole province has 313,950 households, including 42,080 poor households, accounting for 13.40%. Thus, the poverty rate of the province has decreased by 7.17% compared to the previous period. Education expenditure accounts for 5% of income per month, reflecting a higher need of education. However, the rich and poor differentiation among districts affects the number of students who are eligible to attend school. Thai Nguyen has conducted the poverty reduction in an effective way. The reduced poverty rate will help create more learning opportunities for all people. The rate of poor households in Thai Nguyen; however, is still high in comparison with the one of the whole countries. The results of poverty reduction have not yet met the province’ poverty reduction goal. By 2019, Vo Nhai district has been the district with the highest poverty rate (13,63%), followed by Dinh Hoa

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district (9,70%); There has still about over 2% of poor cities and towns in cities and towns (2% in Song Cong City, 2,43% in Pho Yen Town. Table 2: Proportion of poor households in districts, cities and towns (according to new standard of 2010 - 2020) - Unit: % Year 2010 2015 2016 2019 The whole province 26,85 13,40 11,21 4,35 Thai Nguyen city 9,12 2,03 1,71 0,97 Pho Yen Town 20,24 5,33 4,92 2,00 Song Cong town 23.89 9,40 7,34 2,43 Dinh Hoa district 41,63 27,62 24,62 9,70 Vo Nhai district 52,44 35,86 31,86 13,73 Phu Luong district 31,51 13,54 11,32 4,12 Dong Hy district 25,68 19,69 17,36 8,54 Dai Tu district 31,84 16,64 12,27 4,20 Phu Binh district 31,38 12,87 10,87 4,62 Source: Thai Nguyen Statistical Yearbook, 2010, pp. 428; Thai Nguyen Statistical Yearbook, 2019, pp. 462 Poverty reduction for human development in Thai Nguyen has been not an easy problem in the recent years. The goal of Thai Nguyen province in the socio-economic development strategy is to improve the material and spiritual life for the people, striving to bring the province basically out of the poor province and reducing the poor household at the lowest level (Thai Nguyen Provincial Party Committee, 2010, pp.9) 3.3. Socio-economic norms related to poverty alleviation 3.3.1. Average per capita income Income is an important indicator to assess the level of socio-economic development as well as to identify and evaluate the living standard of people because it is the premise ensuring human needs, thereby increasing living standards and reducing poverty and hunger. Over the years, thanks to the socio-economic development, the income of Thai Nguyen people has been significantly improved. However, it is still low and unevenly differentiated among localities in the province. Income per capita (GDP/person): The total Gross Domestic Product (GDP) in 2019 was 78.549 billion VND, the GDP per capita was 83.5 million VND, of which the growth rate of agricultural, forestry and fishery production value was 10,3%; the one of industry and construction was 58,0%, the one of service 31,7%, and export activity in 2009 reached 27.637 million USD (Thai Nguyen Statistical Yearbook -Thai Nguyen Statistical YearBook (2019), pp491). There has been inequality in GDP growth among localities in Thai Nguyen province due to production development conditions and natural advantages. It can be classified into 3 following groups: Group 1: High income: over 5000 thousand VND: Thai Nguyen and Song Cong cities; Group 2: Average income: 4000 - 5000 thousand VND: Pho Yen town, Dong Hy, Dai Tu, Phu Luong, Phu Binh; Group 3: Low income: under 4000 thousand VND: Districts: Dinh Hoa, Vo Nhai. The income per capita differentiation objectively reflects the different socio-economic development characteristics of localities in the province. Thai Nguyen City combines plenty of

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favorable factors for development (being a cultural, political and economic center, a traffic hub ...), so it has high per capita income. Meanwhile, Vo Nhai and Dinh Hoa districts have difficult natural conditions, poor infrastructure, less agricultural land, and home to ethnic minorities, so the average income is not high. 3.3.2. Education Despite many difficulties facing its economy, Thai Nguyen province always attaches great importance to develop education. Thai Nguyen is known as a huge education center of the country with 9 universities, 11 colleges, 5 professional secondary education schools, 22 vocational training institutions, 33 high schools, 191 secondary schools, 219 elementary schools and 237 kindergartens. School facilities have been constantly upgraded, the number of temporary houses has decreased, and all high schools have quality classrooms. The number of pupils at all levels is not the same among districts and towns in the province. This is a quota to evaluate the educational index in the province, the number of students per 10,000 people is the decisive factor to analyze and evaluate the development of education in Thai Nguyen. Thai Nguyen city has the highest number of pupils at all education levels, accounting for 21.67% of the total number of students in the province, of which number of primary school students account for 18.26% of the total number of primary school students in the province. High school students accounted for 31.90%. The above-mentioned differentiation of the number of students clearly reflects the impacts of the socio-economy on the development of education in Thai Nguyen province. The number of students per 10,000 people is different among districts and towns in the province. This change depends on the size and structure of the population, the conditions of school facilities, conditions of families to have children of school age, the socialization of education. The percentage of high school students with highest total belongs to in Thai Nguyen City (28.2%) where gathers 11 high schools, accounting for over 50% of the total number of high schools in the province. The quality of education in Thai Nguyen province can be classified into the following 3 groups of cities, districts and towns, basing on the combination of its quantity (number of students at all schools / 10,000 people) and quality (number of students of high schools): Group 1: High level: Thai Nguyen city; Group 2: Average level: Dai Tu, Phu Binh, Pho Yen, Phu Luong, Dong Hy districts; Group 3: Low level: Dinh Hoa, Vo Nhai, Thanh, Song Cong districts. In order to improve the intellectual level of the people in particular and the quality of life of the ethnic minorities in general in remote areas such as Vo Nhai, Phu Luong, Phu Binh, Dinh Hoa, Dai Tu, ... it is neccessary for Thai Nguyen province to put high pritority on investment in education in these districts. 3.3.3. Healthcare The achievements on human development achievement in average life expectancy has been confirmed over the years. Thai Nguyen people have a more and more happy life with high income; at the same time, health care services has been developed to meet the people's living needs, so life expectancy is getting higher and higher. The average life expectancy in 2010 was over 72,9 years, in 2015 it had risen to 73,3 years, in 2019 was over 73,6 yearsand; the life expectancy index also increased over the years.

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The average life expectancy and life expectancy index of Thai Nguyen is quite high, in comparison with the whole region, just behind Quang Ninh and Phu Tho, and higher than the other provinces. Life expectancy is as high as that of the national average, higher than that of the Northeast. The life expectancy index also has a big difference higher than in the 0.02 region. The average life expectancy is an important factor in the human development goals of Thai Nguyen. A community of people with a high average life expectancy proves good health care services offered to its people. Therefore, taking care of the people health and comprehensive fitness improvement for the people are the top important criteria of the whole society in general, of all sectors and people in the province in particular. This is also a measure of the people’s living standards of the population and the differentiation between the rich and the poor. In the province's community health care, there have been many outstanding achievements such as: The medical network has been strengthened and developed, step by step meeting the needs of the people’s demands of medical examination and treatment. There are 180 communes, wards and towns with medical stations including 12 ones integrated with regional polyclinics, and 2 towns have not yet established health stations because they have already had district health centers and the military unit infirmary. In 2019, there were 96,1 communes, wards and townships meeting the national health standards. In general, the number of healthcare staff has increased but very slowly over the years, and there has a differentiation between urban and rural areas. Based on the criteria t of the number of medical workers per 10,000 people, we can see tthe difference clearly: Group 1: over 50 medical workers per 10,000 people: Thai Nguyen City and Song Cong town; Group 2: 20 - 49 medical workers/10,000 people: Dinh Hoa district; Group 3: under 20 medical workers/10,000 people: Vo Nhai, Phu Luong, Dai Tu, Phu Binh, Pho Yen, Dong Hy. The reason for this difference is the level of investment in localities, working conditions in health facilities, preferential policies for health workers in remote and isolated areas, and population scales. Moreover, in poor districts, the poor have little opportunity to receive health care and medical treatment due to inadequate infrastructure, technical facilities, unfavorable natural conditions, difficult production and living conditions such as: lack of productive land, lack of water and difficulties in travelling.

3.4. Some achievements in poverty reduction in Thai Nguyen Province - The devolving work on localities in Thai Nguyen province has helped they be active and take charge of setting up plans, effectively employing all resources and gianing the final good results of the poverty alleviation. - Poverty reduction policies and solutions have been deeply implemented in each poor household to reduce poverty and pave the wave for thousands of local people to have jobs and gradually improve their life, as well as contribute to the socio-economic development of the locality. - The poverty alleviation program has aroused and brought into play the good traditions of our nation, strongly responded the locals. - Thanks to the centralized and unified direction of the local party’s committees and governments, the poverty alleviation of program is identified as the key task and a target for each sector and locality. - The Poverty Alleviation program has drawn the attention of all levels, sectors, social organizations, agencies, enterprises and schools, hosiptals. It has also recieved huge support from people of all ethnic groups within the province and international projects.

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- Many typical models on poverty reduction was built and came to trial in the period of 2010 - 2019 with the involvement of a large number of people class. Tens of thousands of poor farmers in the localities were trained annually, fostered with knowledge, and given chances to visit to learn experiences in doing business, and transferring science and technology. - Many typical models built and piloted in the period 2010 - 2019 on poverty reduction have been summarized and replicated with the participation of many people. Every year, tens of thousands of poor farmers in the localities are trained annually, fostered with knowledge, visited to learn business experiences, and transferred science and technology. - In the recent years, the province has effectively deployed preferential policies and projects for the poor, poor households, and poor communities, creating a driving force for them to actively strive to overcome poverty sustainably. - Activities in field of social protection associated with poverty reduction are integrated and interacting with each other, so that social protection beneficiaries who are members of poor households are always paid with much concerns so that they could reach social services, thereby rising out of poverty sustainably. - The standing agency of the poverty alleviation program has collaborated with localities to identify beneficiaries to be supported, draw mechanisms and policies, guide them to carry out the program, and consolidate the contingent of cadres engaged in poverty reduction; directly monitor and guide the implementation of a number of policies such as short-term vocational training for the poor and the disabled, training to improve the capacity of officials in poverty reduction, implement welfare policies and social assistance to create jobs, preside over monitoring and evaluation activities according to the program's targets. - Member sectors such as the Fatherland Front, organizations, the Committee for Ethnic Minorities, Department of Agriculture and Rural Development, Bank for Social Policies, Social Insurance, Department of Health, Department of Education and Training with their functions and duties have well performed as a member of the Steering Committee; coordinated with the standing agency in implementing and instructing localities to organize the implementation of the program's activities, ensuring to exceed the planned rate of poverty reduction. The poverty alleviation program has become a widespread movement in the whole province, contributing to political and social stability, promoting the economic development, and gradually implementing social justice. 3.5. Difficulties and shortcomings in poverty reduction Over the past years, all sectors at all levels and people classes have been involved in the implementation of the poverty alleviation program. Besides the achievements, however, there are difficulties and shortcomings that need to be tackled as below: Some of the sectors, departments, and provincial agencies have not been comprehensively aware of their responsibility for the poverty alleviation program, resulting being perplexed during their performance. In addition, the approval of several investment projects takes time due to the delay. Meanwhile, inspection has not been enhanced by some of the Steering Committees of the poverty reduction program. That is the reason why several policies have not been deployed and some projects under the program have not been implemented in time. - The qualifications and capacity of officials in some communes are not good at the implementation of poverty reduction. The management over poor households is not strict, the information and reporting regime is not sufficient and timely. Officers of poverty alleviation have not regularly updated information, and promptly grasped needs for help of the poor, so the ability to mobilize the entire society to take part in the program.

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- Some of the poor and poor communes are not properly aware of their own responsibilities, haven’t been highly determined to overcome the poverty, still relying on the State’s support, which limit their creativeness and desire to escape from the poverty. - Resources for direct investment funded from the budget for the annual poverty alleviation program are not balanced with the common goals between regions and the operational content of each project. The mobilization of local resources from organizations, enterprises to reduce poverty in the locality is difficult while the support from the central government and the province is still limited, making it difficult to help the poor escape from poverty in a short and sustainable time, especially in remote communes and ethnic minority areas. - The rate of poor households has decreased significantly, but the sustainability in poverty reduction is not high. There is still a part of the population at risk of falling back into poverty, especially in the areas prone to natural disasters, crop failures, lack of jobs, low income, or income with no accumulation. Notably, the number of households that are not poor, but income and living standards is close to the poverty line will cause difficulties for the coming years. - The rate of poor households decreasing each year is high, but unstable, and there is a part of the population at risk of falling back into poverty, especially in ethnic minority areas, in remote areas, areas often suffer from natural disasters, floods, crop failures, lack of jobs and unstable jobs, low income, no accumulation. Some households have escaped from poverty, but in actually have difficulties in their life due to the low target of reducing poverty - The system of the poverty alleviation program has not been systematical and synchronous. The preliminary and final review of the program is mainly sent by the sectors assigned to conduct the project and by the locality to the permanent agency, lack of clear analysis and assessment between input and output criteria. and the impact of programs, projects and reports are not frequent. This has caused many difficulties in monitoring and accurately evaluating the effectiveness and impact of the program. 4. Discussions and Recommendations Thai Nguyen province has achieved encouraging achievements in economic development and poverty reduction. The poverty rate, however, is still high and the indicators for improving people's living standards are still low compared to the whole country. Therefore, Thai Nguyen province needs to take synchronous solutions. The main solutions should be focused on the following aspects: - Economic restructuring, and boosting commodity production in order to create jobs for the people, Increasing the proportion of in industry and services, while reducing the proportion of agriculture. - Putting much emphasis on supporting poor communes to develop infrastructure, develop production and services, narrow gaps in development, living standards between districts, towns, cities and different classes of people. - Strengthening and diversifying all resources to reduce poverty, promoting internal resources in combination with effectively using resources of international cooperation, promoting policies to attract foreign investment capital to speed up hunger eradication and poverty reduction. - Encouraging the application of scientific and technical advances; transferring technology to poor communes and the poor for socio-economic development and increased income for the poor. 5. Conclusion Along with the national socio-economic development and poverty reduction, Thai Nguyen province has achieved remarkable achievements. By 2020, Thai Nguyen province reduces the average poverty rate of Thai Nguyen province has been reduced by 2% per year and more

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(according to the new standard). However, this is still a province with a high poverty rate and the poverty reduction rate is still slow compared to the national average. The average socio- economic improvement indicators per capita of the province are under the national average. Difficulties and shortcomings of the province are the main obstacles in the process of poverty reduction. Therefore, challenges facing Thai Nguyen province in the coming period are socio- economic development in the orientation of industrialization and modernization, ensuring speed, growth quality, competitiveness, quality of social services; reforms and integration so that the province would make rapid changes in the process of socio-economic development, commensurate with the country's socio-economic development. References 1. Vu Van Anh (2010), Human Development Index (HDI) Research and Evaluation in Thai Nguyen Province. 2. Provincial Party’s Committee - People's Council - People's Committee of Thai Nguyen Province (2009), Thai Nguyen District, National Political Publishing House, Hanoi. 3. Thai Nguyen Provincial Party Committee (2010), The 18th Thai Nguyen Provincial Party Congress Document, pp.9. 4. "Thai Nguyen - New forces and forces in the twenty-first century" (2005), National Political Publishing House. 5. Thai Nguyen Statistical Yearbook -Thai Nguyen Statistical YearBook (2010), Thai Nguyen, 4/2011, pp.428. 6. Thai Nguyen Statistical Yearbook -Thai Nguyen Statistical YearBook (2019), Thai Nguyen, 4/2020, pp.19, 462, 488, 490, 491.

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Assurance of Equality in Education for Ethnic Minority Communities in Vietnam

MA. Truong Tat Thinh Military Technical Academy, Hanoi, Vietnam Email: [email protected]

Abstract Social equality in education means everyone in a community has equal accessibility to knowledge and same opportunities to participating in any educational courses. The idea of social equality in education was affirmed by Ho Chi Minh President, and now it has been developed, emphasized and concretized by Vietnamese Government through the educational law. However, the current situation of equality in education for ethnic minorities in Vietnam remain many shortcomings, which have several impacts on economic, social development, national defense and security of the country. Therefore, it is crucial to implement comprehensive solutions to ensure the social equality in education for ethnic minorities, and by then contribute to the development of education system in Vietnam. Keywords: Social equality, Education, Ethnic minorities.

1. Introduction Ensuring social equality, especially in the education sector, is a development goal of all countries and Vietnam is no exception. Achieving this goal in the process of regional and international integration, especially in the face of the strong development of the current industrial revolution 4.0 has posed numerous challenges for us. Since the transition to a market economy and international economic integration, there has always been an unequal development among areas, regions and especially among ethnic groups, resulted from the social stratification. Therefore, when considering social equality in education, it is necessary to focus on the differences among areas, regions, social groups, and especially among ethnic groups in accessing education services at different levels of education. There are many scientific studies on equity, education and policies for ethnic minorities in Vietnam such as: Ensuring equality and fairness in education by Phung Minh Nghi, Nguoi Lao Dong Newspaper, May 18, 2020; Social justice in education from the point of view of Marxism- Leninism by LE THI VINH, Faculty of State - Law, Nghe An Political School; Implementing social justice in Vietnam today, contradictions and resolution methods by Nguyen Tan Hung Assoc. Doctor. The University of Da Nang - Philosophy Magazine, August 9, 2019; Ensuring equality in education access Tam An - October 31, 2019, Education magazine. However, there are no specific studies on ensuring equity in education for ethnic minorities in Vietnam today. Consequently, studying and proposing solutions to implement social equality in education for ethnic minorities in Vietnam is a pressing issue at present. Posts on the basis of clarifying the theoretical and practical issues to ensure equity in education for ethnic minorities in Vietnam; thereby proposing basic solutions to ensure equity in education for ethnic minorities in Vietnam today.

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2. Methodology This paper uses an overall and comprehensive approach to collect and summarize the recent studies and reports which are related to this topic. All the data and figures are obtained based on the secondary data provided by some public organizations like the Communist Party of Vietnam; General Statistics Office of Vietnam; Ministry of Education; Ministry of Labor, Invalids and Social Affairs, etc. 3. Results 3.1. Current perspective on social equality in education in Vietnam Equality in education is one of the conditions for achieving a comprehensive social equality. The goal of social equality in education is to ensure the right of enjoyment under the minimum educational standards consistent with the country's socio-economic development for all people, ensuring that all people can learn, and practice to reach the universalization qualification in accordance with the regulations of each country. “All citizens, regardless of their ethnicity, religion, belief, men or women, family background, social status, economic situation, are equal in learning opportunities... Government implements many practical actions to ensure social equality in education and to create opportunities for everyone to learn. Besides, the Government and the community also have certain priorities for the poor to access the education study, create opportunities for gifted people to develop their talents” (Prime minister, 2019). Social equality in education also includes rationally addressing the relationship between mass education and stingy education, between concerns for educational interests of the majority and the priorities for people with special learning capacity, people with difficult conditions to access education, people who have made a lot of contributions to education- training... “The Government exercises social equality in education, provides a safe educational environment, ensures inclusive education, and creates conditions for learners to bring their potentials and talents into play. The Government prioritizes and facilitates learners who are children in special circumstances according to the Law on Children, learners who are disabled people under the Law on Disability, learners from poor households and near-poor households to exercise their learning right and obligation.” (Prime minister, 2019). Equality in education also ensures equality between all ethnic groups in a national education. VI Lenin stated very clearly in his work “Ethnic composition of students in Russian schools" on the requirement of equalizing education among ethnic groups in Russia “What should we care about? It shall be in one way or another separating peoples in the work of education, but on the contrary in how to create the basic democratic conditions for the peaceful coexistence of ethnic groups on the basis of equality of interests” and “Efforts must be made to integrate children of all ethnic groups into unified schools in a certain locality; must make sure that workers of all ethnic groups practice proletarian policy in education together” (V.I.Lenin, 1978, pp. 767-768). Implementing social equality in education is creating fairness in terms of above minimum standards (including post-general education levels and teaching and learning conditions above the national common standards in the universal education level). Social equality in education is also reflected in the implementation of open democracy in making education policies and investing in education, in implementing regulations for learners and teachers, as well as encouraging social forces to participate in the educational development. Thus, social equality in education not only shows the principle of equal dedication and equal enjoyment but is also imbued with humanity. Social equality in education is manifested in gender issues, in differences in public expenditure

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across regions, in accessibility by income, by region and urban/rural area. Thus, social equality in education is understood to create equal learning opportunities and is suitable for all to access and participate in the educational process at educational institutions on certain social-economic conditions, creating equal opportunities for everyone to study, the Government and society have mechanisms and policies to help the poor and people with conditions and difficult circumstances to learn, encourage good learners to develop their talent. 3.2. Current situation of social inequality in education for ethnic minorities in Vietnam today. When evaluating social equality, it is always necessary to place the subject in a correlation to compare with the specific conditions and circumstances of the subject to make a judgment that is fair or unfair, level of fairness, etc. Here when assessing the fairness of education for ethnic minorities in Vietnam, we need to put it in the comparative correlation between ethnic minorities, ethnic majorities, associated with the characteristics, difficult conditions, and disadvantages of ethnic minorities compared to ethnic majorities in Vietnam. Ethnic minorities, who mainly reside in mountainous, remote, border, island areas, where socio-economic conditions are underdeveloped, their lives have a lot of difficulties, high poverty rate, and low educational level. From the above approach, we can see that the current situation of social equality in education for ethnic minorities in Vietnam is still inadequate. Firstly, the difference in school access opportunities among ethnic minority children compared to ethnic majority children and among regions of the country. In regions such as the Northwest, Central Highlands and the South West, and especially the Mekong River Delta, in ethnic minority areas, a part of children have to work early, so the dropout rate of primary and secondary schools is quite high. The mobilized rate of children going to school in ethnic minority and mountainous areas in the period 2011-2019 was only 56.2% (88.5% nationwide); and kindergarten mobilization rate is only 11.8% (25.8% nationwide). The mobilized rate of ethnic minority students going to school at the right primary school age is low (was 92.15% in 2011, 98.55% in 2015 and 98.13% in 2019. The rate of ethnic minority students recognized for completing the primary school program was 83.41% in 2011, 91.50% in 2015 and 96.66% in 2019). Figure 1: The mobilized rate of ethnic minority students going to school at the right primary school age

Source: Author's summarization

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At the age of 5 to 17 years old, in 2014, the whole country had 2.17% of children never going to school. The Mong ethnic minority group has the highest proportion of children never going to school among the main ethnic minorities, at 23.02%. “In other words, nearly a quarter of the school-age Mong children have never attended any kind of school.” [Ministry of Education - Training and UNICEF, (2018)]. There is a huge disparity in educational level between urban and rural areas and among regions of the country, especially the education level of ethnic minorities is the lowest in the country. Statistics on school attendance of children in ethnic minority areas in the northern border of Vietnam. Table 1: Proportion of the population of high school age but not currently attending school by sex, urban / rural, socio-economic region Provinces Sex Area STT Sum Male Female Urban Rural 1 Ha Giang 16,4% 18,7% 17,5% 4,9% 19,8% 2 Cao Bang 12,5% 11,8% 12,2% 3,1% 14,7% 3 Lao Cai 11,3% 12,5% 11,9% 3,3% 14,2% 4 Đien Bien 12,8% 16,9% 14,8% 2,3% 16,5% 5 Lai Chau 15,8% 18,3% 17,0% 5,1% 19,2% 6 Lang Son 6,1% 3,5% 4,9% 1,8% 5,6% 7 Quang Ninh 4,3% 3,6% 4,0% 2,2% 7,0% Table 2: Proportion of the population in the age group attending general education but not currently attending high school by gender, urban / rural Provinces Sex Area STT Sum Male Female Urban Rural 1 Ha Giang 18,0% 16,9% 19,2% 5,4% 20,2% 2 Cao Bang 12,5 % 12,8 % 12,1 % 3,3 % 15,1% 3 Lao Cai 12,2% 11,6% 12,8% 3,8% 14,4% 4 Đien Bien 15,1% 13,1% 17,3% 2,6% 16,9% 5 Lai Chau 17,5% 16,4% 18,8% 6,0% 19,6% 6 Lang Son 5,7% 7,2% 4,1% 2,1% 6,6% 7 Quang Ninh 4,4% 4,7% 4,1% 2,7% 7,4% Table 3: Proportion of the population aged 15 and over who have never attended school by sex, urban / rural residence Provinces Sex Area STT Sum Male Female Urban Rural 1 Ha Giang 23,6% 16,6% 30,6% 5,2% 27,3% 2 Cao Bang 11,7% 8,4% 14,9% 1,7% 14,7% 3 Lao Cai 15,6% 11,1% 20,2% 1,9% 20,1% 4 Đien Bien 24,7% 14,4% 35,0% 2,8% 28,9% 5 Lai Chau 33,5% 22,6% 44,6% 7,1% 39,7% 6 Lang Son 2,2% 1,4% 2,9% 0,6% 2,6% 7 Quang Ninh 2,0% 1,4% 2,6% 0,7 4,3% Source: Central Population and Housing Census Steering Committee (2019), The Population and Housing Census at 0:00, April 1, 2019, Implementation and preliminary results, Thong Thong Publishing House millet, Hanoi

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This is a very painful issue, reflecting the inequality of school opportunities for children in areas, regions and ethnic minorities in our country today. Secondly, equality in accessing high-quality education Currently, most of the high-quality universities, colleges, vocational schools and high schools are concentrated in cities, towns, large urban areas, and are rarely located in as rural areas, mountainous areas and small provinces where ethnic minorities live. These international schools are mainly located in two big cities, Hanoi and Ho Chi Minh City, and a small quantity is in other provinces. Statistics from the 2020 school year show that, in Hanoi alone, there are about 40 high-quality public schools from preschools to high schools, not including high- quality private schools. [Education -Training and Department of Finance, 2018] Although the Government has invested heavily in education for ethnic minorities, at present, in mountainous areas, on islands, in difficult areas, schools are degraded due to natural disasters, and difficult traffic infrastructure, so good teachers often apply to move to cities and towns, so difficult areas lack in both quantity and quality of teachers. Therefore, it shows that ethnic minorities have very little opportunity to access a high quality educational environment. Thirdly, there is inequality in terms of contents, programs, educational staffs, facilities, and funds to ensure education in ethnic minority areas. The contents of ethnic cultural education for students who are children of ethnic minorities is also concerned by localities. Ethnic cultural education is mainly implemented within the local program. However, the education of ethnic minority groups in high schools in ethnic minorities and mountainous areas still has many limitations, from the development of programs and documents to the implementation of education, which have not met the quality and requirements. The localities have not really attached importance to building the conditions and quality of ethnic cultural education contents. The school system has not yet met the learning needs of students. In mountainous areas, where ethnic minorities are mainly inhabited, the number of schools is limited, schools are unevenly distributed, and the resilience of infrastructure is not guaranteed. The facilities are still difficult, the classrooms are still degraded, some localities still have temporary classrooms, the system of functional rooms is inadequate and weak, the sanitation facilities are inadequate and unsecured, and the clean water facilities are lacking. The improvement in knowledge and skills through trainings for teachers in mountainous areas has also achieved remarkable achievements. However, the contingent of teachers in ethnic minority areas has a disproportionate structure. Provinces lack preschool teachers, especially kindergarten teachers, while primary and lower secondary teachers, high school teachers are redundant. Young teachers lack practical experience, so they are limited in mobilizing students. Teachers have little cultural understanding and lack ethnic language skills, so they have constraints in the implementation of educational tasks. The recruitment and use of teachers still have many shortcomings, especially the recruitment policy under short-term contracts, teachers' salaries are not enough to live, many teachers quit their jobs to do general jobs, to work as workers. For material facilities, the Government has paid attention to investing in many programs, projects and schemes for education and training in ethnic minority areas. However, the investment only partially meets the shortage of facilities. There are still many localities lacking schools and classes. The solidification rate is still low. The rate of schools meeting national standards is not high. Localities have difficult socio-economic conditions, the investment resources mainly lean on the support from the central budget, while the Government budget for general investment in education and training is limited.

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3.3. Legal basis for implementing social equality in education for ethnic minorities in Vietnam. The thought of social equality in education has been affirmed by President Ho Chi Minh: “I have only one desire, the ultimate desire to make our country completely independent, our people are completely free, everyone has meals, clothes, everyone can study" (Ho Chi Minh, 1995, pp.161-162) and was thoroughly grasped in the major policies of our Party and Government right after the August Revolution, such as: policies on abolishing hunger enemy, ignorance enemy and foreign enemy. That thought has continued to be thoroughly grasped in the Party's and Government policies throughout the process of national construction and development. The policy of social equality in education is thoroughly understood in the documents of the Party through the congresses from the 6th Congress to the 12th Congress of the Party. In particular, the 4th Central Conference (Session VII) affirmed that “Implementing a continuing education for everyone, defining lifelong learning is the right and responsibility of each citizen” is the goal of striving. The resolution of the second meeting of the Central Committee of the Party (Session VIII) continued to affirm the point: “Implementing social equality in education and training, creating conditions for everyone to learn ...”. The 10th Congress of the Party developed and affirmed: “Gradually shifting the current educational model to an open education model - a learning society model with a lifelong learning system, continuous training, continuity between education levels and disciplines; building and developing learning systems for everyone and flexible forms of learning and practice to meet the needs of regular learning; creating many different possibilities and opportunities for learners, ensuring social equality in education”. Article 13 of the Law on Education (2019) clearly stated “Learning is a right and obligation of citizens. All citizens, regardless of their ethnicity, religion, belief, sex, personal characteristics, family origin, social status, and economic circumstances, are equal in learning opportunities” (Prime minister, 2019). The 2011-2020 education development strategy, with a vision to 2030, has identified one of the goals for the development of education and training in Vietnam as “Realizing social equality in education and creating better daily learning opportunities for all classes of people, especially in areas facing many difficulties”. In addition to achieving social equality in education, the Party, Government and Government of Vietnam have issued many policies such as policies on minimum standards in education (illiteracy eradication and education universalization); financial assistance policies (scholarship and credit policies); policies for special social groups (children with disabilities, children in need of special protection of ethnic minorities); policies to encourage and assist talent discovery; priority policies; policies to encourage the development of the educational system, etc. 3.4. Some solutions to implement social equality in education for ethnic minorities in Vietnam today To ensure equality in education for ethnic minorities, it is necessary to implement the following basic, feasible and synchronous solutions. Firstly, the authorities at all levels must strictly implement the policy regime to ensure the rights and obligations of ethnic students; care and support poor students, students from ethnic minority groups in remote and mountainous areas. Well implement propaganda, mobilize children of ethnic minorities to class and not to drop out of school. Regularly inspect and evaluate the implementation of policies to ensure feasibility, efficiency, no waste, no shortcomings and limitations. Secondly, improve the quality of ethnic students, create the best conditions for ethnic students to learn Kinh language in parallel with studying in the ethnic language, ensure to maintain the number of students in classes, effectively classify ethnic students at the end of lower secondary, career orientation for ethnic students at the end of upper secondary, regular and timely support

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ethnic students studying in vocational schools and vocational colleges, university and postgraduate; create jobs for them after graduation, especially those who return to their hometown and make a practical contribution to their homelands and villages. Thirdly, further improve the quality of the contingent of educational administrators and teachers in ethnic minority areas. The quantity must be sufficient, the structure must be synchronous, the training level must meet the standards, step by step raise the standard, have a solid political thought, knowledgeable in pedagogical skills, and raise professional awareness for the teacher contingent. Actively innovate teaching methods in a positive direction, and promote students' dynamism, initiative and creativity. Actively and effectively apply information technology in education and teaching management... Fourthly, increase investment in resources for ethnic education; reform the management, direction and administration mechanism to suit the characteristics of ethnic education; promote the initiative and creativity of localities, all levels of education management and schools, effectively mobilize all local resources to contribute to the development of education in general, and ethnic education in particular. Enhance construction and invest more in the system of ethnic boarding and semi-boarding schools, attract ethnic minority students actively to schools and minimize drop-out. Invest in the right place, right area, right object, focused investment, and avoid rampant and wasteful investment. It must be consulted and promoted by the local leaders and the management of the education sector for the investment to be practical and achieve the desired results. Fifthly, strengthen the leadership role as well as the coordination of Party committees at all levels, authorities, and local unions in improving the ethnic educational quality... It can be said that the enhancement of the above-mentioned solutions is also a useful contribution to the education and socio-economic development in the ethnic minority areas. 4. Conclusion The realization of social equality in education can only be done if there is a clear and proper perspective, a scientific and synchronous strategy, practical solutions and feasible action plans. Targeting to social equality in education also means towards the development perspective that Vietnam has chosen “Fast, efficient and sustainable development, economic growth in parallel with the implementation of progress and social equality”. References 1. Central Population and Housing Census Steering Committee (2019), The Population and Housing Census at 0:00, April 1, 2019, Implementation and preliminary results, Thong Ke Publishing House millet, Hanoi. 2. Communist Party of Vietnam (2016) Document of the 12th National Congress of Delegates, National Political Publishing House, Hanoi 3. General Statistics Office (2014), Results of Vietnam population and housing survey 2014 4. Ho Chi Minh. Full volume. National Political Publishing House, Hanoi, 1995. V 4 5. Prime minister, Vietnam Education Law 2019 6. Proposal to the City People's Committee by Hanoi Department of Education and Training and Department of Finance “On the amendment and supplementation of Resolution No. 15/2013/NQ” 7. Reporting out-of-school children: “Vietnam Research 2014” released by the Ministry of Education and Training and UNICEF 8. Reporting out-of-school children: “Vietnam Research 2018” released by the Ministry of Education and Training and UNICEF 9. V.I.Lenin, full volume, Advanced Publishing House, Moscow, 1978; episode 19 10. Vietnam National Assembly, Constitution 2013

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The Role of Small Traders at International Market in Sustaining the Environmental Protection in Vietnam

Dr. Le Quang Can1, MA. Nguyen Thanh Duong2, MA. Hoang Thi Thanh Nga3 1Dong Nai’s Provincial Propaganda Committee 2,3Faculty of Business English, Foreign Trade University Ho Chi Minh City Campus Abstract Currently, plastic waste from the traditional market network in daily life and production has been increasing environmental pollution and climate change in our country. In 2019, Vietnam has 8,660 traditional markets and thousands of spontaneous markets located pretty much along rivers, canals and along the coast. The sense of environmental protection in traditional markets of the people is limited, so the amount of plastic waste disposed from the market into rivers, canals and seas is quite large, causing heavy environmental pollution. Therefore, the small traders in the traditional market network play a very important role in the change in consumer culture, forming a habit of not using nylon bags, bottles, jars made of plastics as storage means while shopping. The article highlights the role of small traders in traditional market networks for environmental protection in Vietnam in the context of climate change and sea level rise. Keywords: Small traders, traditional markets, environmental protection

1. Introduction Currently, promoting the role of small traders trading in our country's traditional markets towards the anti-plastic waste campaign has an important and practical significance. Small traders in the traditional market network play a vital role in the change in consumer culture, forming a habit of not using plastic bags, bottles, jars ... as means of storage when shopping, contributing to the limiting of plastic waste dispersion into the environment. Research on the role of small traders who trade in traditional market networks in the anti-plastic waste campaign has not been focused. On the basis of determining the role of small traders trading in traditional markets for the anti-plastic waste campaign, the market management board will help propagate the harmful effects of plastic waste smoothly, implementing the state policy “Say no to plastic waste”, contributing to changing the consumer culture of traditional market-goers and stopping use of items containing goods derived from plastic to minimize environmental pollution now and in the future. 2. Methodology The research method of this article is to compare, assess qualitatively and gathering statistical data about plastic waste in the national traditional market network on environmental protection and the impact of climate change. The results of the research indicate that small traders in traditional markets play a key role in changing consumer culture, forming the habit of using environmentally friendly items instead of using nylon bags, plastic bottles and jars in buying, selling and exchanging goods in traditional markets, contributing to reducing plastic waste and protecting the environment in the present and in the future.

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3. Results 3.1. The current situation of plastic waste in the traditional market network According to the General Statistics Office, by the end of 2019, Vietnam has 8,660 markets under the management of the State, individuals and market businesses. In addition, thousands of spontaneous markets, squatting markets, sidewalk markets etc. have been formed all over from rural to urban areas, riverside, canals, seas ... to meet the needs of exchanging, buying and selling goods of the local people. Currently, the situation of plastic waste from the traditional market network has greatly affected efforts to protect the environment and respond to climate change in Vietnam. Therefore, changing consumer culture, forming a habit of not using nylon bags, plastic bottles, jars ... when shopping at traditional markets has become increasingly urgent. In the period from 1975-1986, the network of traditional markets nationwide was underdeveloped because of the policy of "preventing rivers and banning markets", technology of producing plastic bags, bottles, jars etc. was not popular, so the amount of plastic waste from market networks spread into the environment is negligible, so it is not polluted as currently. At that time, market-goers often used items such as sedge baskets or baskets made of Lepironia articulata (a wild grass which grows a lot in the Mekong Delta and is very strong and durable when dried) to store goods. The most common use for shopping in the South is the baskets made of Lepironia articulata - a wild grass whose body becomes soft but strong when dried, used to knit bags, containers for storing goods and easily decomposable in the natural environment. The following pictures are panniers, baskets, racks, bags commonly used for shopping in the South:

Source: Author People in the North and Central often use panniers, baskets, racks, etc. as a means of storing goods when shopping. Materials used to make these are different species of bamboo plants which are quite abundant in nature and planted forests, easily decomposing in the natural environment when discarded. Consumers mainly use bamboo bags, baskets, racks, panniers as a means of storing and containing goods in daily shopping. They are regularly cleaned and reused, easy to decompose in the environment, do not cause much waste, limit environmental pollution. In the consumer culture in traditional markets that day, each market-goer brought only one to two bags or baskets, panniers, racks so the choice of foods to buy in the market was carefully calculated by consumers with fresh foods being prioritized to buy first and be put at the bottom of the bags,

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baskets, panniers or racks while vegetables, fruits, instant foods were placed on the top. No nylon bags were used. Wholesalers in traditional markets nationwide mainly use items originating from nature for wrapping and separating vegetables, foods such as dried banana leaves for wrapping dried foods like tamarind, dried fish; fresh banana leaves for wrapping garlic, chili; Lotus leaves for wrapping sticky rice, cakes; monarch leaves, water hyacinth leaves for wrapping fish, fresh food; soft oil paper used to make bags for sugar, salt, fish sauce; newspapers for wrapping clothes, shoes…; dried banana ropes, young bamboo thin fibers soaked with water used to bundle vegetables, separate goods into bundles, tangles; fish sauce, soy sauce contained in glass or porcelain bottles sold to consumers. Those materials act as intermediaries for goods rotation from small traders to consumers and easy to decompose in the natural environment, limiting the waste that pollutes the environment for rivers, canals, sea. Especially, bottles and jars made of glass, porcelain used to store foods are not discarded into the environment but collected and reused many times by manufacturing facilities and enterprises. At the same time, the means of transporting goods at that time from the place of production to the markets were mainly by bamboo baskets and panniers, sacks made of jute and papyrus trees and no nylon bags were used, therefore creating no hard-to decompose waste or causing environmental pollution. The following pictures are some usage of banana leaves (fresh banana leaves used to wrap sticky rice cake; dried banana leaves wrapped tamarind, chili, or fish...):

Source: Author Glass bottles for fish sauce, cooking oil, and soy sauce can be reused many times. Types of jars used as containers for rice, fish sauce, salt... are reused many times, limiting environmental pollution. From 1986 up to now, the whole country entered the period of opening, integration, industrialization, modernization, and construction of new rural areas associated with markets increasing in number, expanding in scale to meet local socio-economic development needs. Together with the development of the network of traditional markets nationwide, the plastics industry develops rapidly. Plastic items gradually replaced banana leaves, lotus leaves, water hyacinth leaves, paper, bamboo racks, baskets, panniers ... Therefore, the consumption culture of market-goers and small traders at the market has changed markedly. The habit of using baskets, panniers, racks, bags of market-goers and that of using banana leaves, lotus leaves, water hyacinths, glass and porcelain bottles, jars of small traders in the market gradually reduced to make room for alternative plastic items. Therefore, most market-goers today often do not carry baskets, plastic baskets or panniers, racks to store goods. Basic necessities such as scaly fish, clean picked vegetables, pre-peeled squash, garlic, chili, clothes, shoes are contained

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in separate nylon bags, finally many small nylon bags and plastic bottles and jars are packed into larger nylon bags for consumers to take home. Thus, each person can use from 3 to 5 nylon bags, a few plastic bottles each time going to market, and this huge amount of plastic waste will be distributed to rivers, canals, and seas all over the country every day, causing environmental pollution, and negatively impact climate change and sea level rise. The common image today for every traditional market-goers in the country is to carry large bags containing small nylon bags. Pedestrians put all the small nylon bags in a larger nylon bag to carry; motorcyclists and bicyclists hang large and small nylon bags on hooks. In the consumption habits in today's traditional markets, nylon bags, plastic bottles and jars have become popular means, often used for storing goods for market-goers However, according to scientists, nylon bags, plastic bottles and jars are made from persistent material. When released into the environment, it takes decades to a few centuries to be completely decomposed. More seriously, the soil and water environment contaminated by nylon bags and plastic bottles will directly and indirectly affect human health. At the same time, the waste from nylon bags, plastic bottles and jars in traditional markets contribute to clogging drains, drains, canals, rivers, sewage stagnation, environmental pollution. In addition, they also cause loss of urban beauty, environmental landscape in traditional markets. Waste from nylon bags and plastic bottles and jars from traditional market networks in particular, other manufacturing sectors are generally referred to as “white pollution”, seriously impacting environmental protection, climate change and sea level rise in Vietnam. In Vietnam, the average amount of nylon bags consumed is from 10.48 to 52.4 tons/day. The average plastic products per capita up to now is more than 41 kg/person/year while this was 3.8 kg/person/year in 1990. Disposable plastic products have become popular items in production, business and people's daily life, especially in large supermarkets, trade centers, traditional markets. Particularly in the city, every day about 30 tons of nylon are used in markets, shopping centers and supermarkets, not to mention at households (Nguyen Quoc, 2020). Therefore, with the number of 8,660 traditional markets nationwide, the amount of plastic waste from the market network is very large every day, contributing to the increase of environmental pollution in rural areas, rivers, canals, sea, cities. Due to the harm of plastic waste in production in general, in traditional markets in particular, The Prime Minister issued Decision No. 582/QD-TTg dated April 11, 2013 on “approving the project to strengthen control of environmental pollution due to the use of non-biodegradable plastic bags in daily life until the year 2020”; The Central Executive Committee issued Resolution No. 24-NQ/TW, dated June 3, 2013 “on proactively responding to climate change, strengthening natural resource management and environmental protection”, Law on environmental protection 2014 (supplemented and amended). The Ministry of Industry and Trade is always interested in environmental protection in the development of the traditional market network nationwide. The Decision No. 012/2007/QD-BCT, dated December 26, 2007 of the Ministry of Industry and Trade on the master plan for the development of the market network nationwide until 2010 and the orientation to 2020 requested “focus on implementing technical solutions for building water supply and drainage systems, collecting and treating waste and waste water at markets; perfecting legal documents on environmental protection in markets, ensuring food hygiene and safety and quarantine of animals and plants at markets. Assigning specific responsibility for leading and coordinating management among central and local authorities in directing and monitoring environmental protection activities and organizing

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the implementation of legal normative documents on environmental in markets; regularly educate and propagate about environmental protection, professional fostering on environmental sanitation in markets; applying administrative inspection, control and sanctions against for environmental violations” (Ministry of Industry and Trade, 2007). Facing the urgent situation of plastic waste from manufacturing in general and market network in particular, the Prime Minister issued Decision No. 1746/QD-TTg, dated December 4, 2019 on the issuance of National action plan on ocean plastic waste management until 2030 with the aim of “solving plastic waste problems with a focus on ocean plastic waste, ensuring to prevent the release of plastic waste from sources of waste on land and activities at sea, striving to make Vietnam a pioneer in the region in reducing marine plastic waste. Raising awareness, behavior and habits of using disposable plastic products and persistent nylon bags of the community and society” (Prime Minister, 2019). At the same time, this decision proposes solutions to prevent plastic waste: Develop and carry out communication programs on the harmful effects of disposable products derived from plastic and non-biodegradable nylon bags. Train and raise awareness, sense of responsibility, change the habit of using disposable plastic products, and persistent nylon bags. On June 9, 2019, Prime Minister Nguyen Xuan Phuc officially launched the campaign against plastic waste nationwide: Right now, we need to take practical and specific actions to check controlling and preventing the generation of plastic waste, so that Vietnamese people now and future generations and our children and grandchildren can live in a clean, safe and sustainable environment. The Prime Minister called for the setting of high political determination for stores, markets, supermarkets in urban areas to stop using disposable plastic by 2021and the whole country will not use disposable plastic products by 2025. The Ministry of Industry and Trade issued Directive No. 08/CT-BCT dated July 15, 2019 on strengthening measures to minimize plastic waste in the industry and trade and required assessing the current status of use and distribution of persistent nylon bags, disposable plastic products in markets, supermarkets, and commercial centers; working out a plan to realize the target where shops, markets and supermarkets in urban centers stop using disposable plastic products by 2021 and By 2025, the whole country will not use disposable plastic products; Integrating propaganda and information dissemination activities on the harmful effects of the use of persistent nylon bags and disposable plastic products. On the basis of the direction of the Government, the Prime Minister, ministries, sectors and localities nationwide issue plans and directives to reduce the use and prevention of plastic waste in order to protect the environment and respond to climate change and sea level rise. Ho Chi Minh City - The largest city in the country issued Directive No. 23/2014/CT-UBND dated September 9, 2014 “on strengthening the management, use and disposal of plastic bags in Ho Chi Minh City". Accordingly, this directive requires the Chairman of the People's Committee of the districts to lead the review and make a list of retailers using nylon bags (markets, supermarkets, shopping malls, convenience stores, bookstores) in the districts under management; The Management Board of markets and trade centers hold responsibility for coordinating in propagating and encouraging small businesses, organizations and individuals doing business in markets and commercial centers to reduce the use of plastic bags; Other organizations and retailers (small market, small businesses in the shopping center reduce the use of plastic bags by limiting the supply of plastic bags (use economically, suitable for handling nylon bags when storing goods for customers); replacing plastic bags with

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environmentally friendly bags, containers or environmentally friendly plastic bags. At the same time, the People's Committee of Ho Chi Minh City issued the Plan No. 3098 / KH-UBND, July 29, 2019 to implement the “anti-plastic waste campaign in Ho Chi Minh City in the period of 2019 - 2021". The purpose of this plan is to launch the campaign "Anti-plastic waste", "Say no to disposable plastic products’, limit the use of non-biodegradable plastic bags to raise public awareness. change the behavior, reduce the use of disposable plastic products, hard-to-decompose plastic bags, contribute to reducing environmental pollution, protecting human health and the ecosystem. Supermarkets, shopping malls, markets, convenience stores, bookstores have ways to encourage consumers to carry bags when shopping, restrict or not distribute free plastic bags for consumers; suggest charge for bags and packaging for goods for consumers wishing to use them without carrying bags when shopping; researching and arranging the collection point of used plastic bags, propagating and disseminating the contents of the plan to businesses, trade centers, supermarkets, markets, and convenience stores, bookstores... Hanoi People's Committee issued the Plan No. 232/KH-UBND, October 25, 2029 on “prevention and control of plastic waste and nylon bags to 2020, with a vision to 2025 in the Hanoi” which asked to strengthen propaganda and training to raise public awareness about the harmful effects of nylon bags and plastic waste; minimize the use of disposable plastic products and persistent nylon bags in people's daily life, encourage and instruct the use of environmentally friendly alternatives and minimize use for disposable plastic products and persistent nylon bags for each household, in residential areas, markets, supermarkets, schools, commercial centers, tourist resorts, scenic areas, historic sites ... Bac Lieu Province issued Directive No. 10/CT-UBND, October 21, 2019 on reducing plastic waste in Bac Lieu province to change the habits of using, minimizing, classifying, collecting, and use and recycle plastic waste; increasing use of environmentally friendly products; encouraging the use of packaging, bags for many times; promptly commend, honor and reward the advanced practices, good models, and valuable initiatives. Currently, many technological solutions have been proposed to replace the use of nylon bags, persistent plastic bottles with environmentally friendly bags such as the campaign to "say no to nylon bags, plastic waste" launched by environmental management agencies, socio-political organizations, and enterprises, but the effect is not high; In contrast, nylon bags and plastic bottles are increasing in use in traditional market networks. Therefore, environmental pollution from plastic waste in the market network in particular, economic production in general in rural areas, rivers, canals, the sea, causes flooding more and more seriously in our country's urban areas when heavy rains occur. Therefore, in our opinion, one of the sustainable solutions to help limit the use of nylon bags and plastic bottles is to promote the role of small traders in traditional markets in changing consumer culture, forming the habit of not using plastic objects of the people. 3.2. The role of small traders in changing consumption culture in traditional markets to protect the environment 3.2.1. Small traders According to Vietnamese dictionary, small traders are sellers with low trading volumes and belong to small business class (Nguyen, K. T. et al., 2005). According to The General Statistics Office, small traders are the total number of sellers in the market classified under a number of objects of different nature including professional traders, fixed on the market and non- professional, regular and fixed business people on the market. Professional, regular and fixed market traders are those who have registered, signed a counter lease, and rented a place to trade

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in the market, including people, households, individual business groups and shops, goods stalls and services of all types of state-owned and non-state enterprises. Non-professional, regular and fixed traders on the market are those who directly produce and sell products such as farmers, fishermen, craftsmen and market runners and amateur traders (GSO, 2000). Thus, small traders are the middlemen connecting the purchase, sale and exchange of goods between producers and consumers in traditional markets. Therefore, small traders play a very important role in the change in consumption culture, buying, selling and exchanging habits of people in the network of traditional markets nationwide. 3.2.2. Consumer culture Consumer culture in traditional markets is formed from the needs of people to exchange, buy and sell goods in life. For the sake of survival as well as the purpose of life, humans create and invent language, writing, ethics, law, science, religion, literature, art, tools for everyday life such as clothing, food, shelter and methods of use. All of those creations and inventions are culture. Culture is the combination of all modes of life along with its manifestations that humans have produced in order to adapt to the needs of life and the demands of existence” (Them, T. N., 1999). Therefore, “culture is an organic system of material and spiritual values created by humans and accumulated through the process of practical activities, in the human interaction with the natural environment and the society” (Them, T. N., 1999).. At the same time, culture is “all of the material and spiritual values that man has created in history, human activities to satisfy the spiritual needs, educational attainment, and social activities” (Than, N. K. et al., 2005)). Currently, the definition of “Consumer culture is the whole relationship, mode, and way of using cultural products that reflect the cultural environment of creation (production in general) and consumption (consumption in particular) in tems of culture; and is the ability to incorporate cultural quality into cultural and ordinary consumption, manifesting the standard of living, lifestyle, way of living of individuals, social groups, families, the entire society in cultural consumption according to the truthfulness, goodness and beauty standards of an advanced culture imbued with national identity” (Hoa, L. N., 1998). In scientific research, there is an opinion that consumer culture is the custom and consumption habits of people in a specific space and time to meet the existence needs of each certain population community. According to the national history, consumer culture is an important part of the national culture, expressing the cultural values of Vietnamese people in personal consumption and production consumption. In which, human is both the creator of consumption values and the object of enjoyment of those cultural consumption values. Therefore, the culture of consumption is not suddenly present, but created by people and is the result of survival and adaptation to the natural environment. Therefore, with the rapid development of the plastic industry, many types of plastic products were born, gradually replacing natural sources of raw materials to meet human needs. Especially nylon bags, plastic bottles are mass produced and widely used in very large quantities in traditional markets. That small traders doing business in the traditional market network change their habits from using items to keep and store goods when selling with dried and fresh banana leaves, lotus leaves, monarch leaves, water hyacinth leaves, and vegetable ropes used to tie…; from types of jars, bottles made of glass, crockery ... that can be reused many times to plastic items such as nylon bags and plastic bottles of various types for convenience and ease of use is natural. Vietnam's traditional market network accounts for more than 70% of the country's retail market share; Therefore, the number of nylon bags used in traditional markets accounts for the largest

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proportion of the total demand for plastic products. When using plastic products, all preferences, desires, and choices of a person clearly reflect the cultural values that a person has been affected by. Therefore, the selection of plastic products such as nylon bags, bottles ... as storage items, containing goods of small traders and market-goers has become the habit of consumer culture in the period of popularizing plastic products. According to Le Thi Trang, Consumption culture is a component of culture, therefore, looking at the culture of consumption of an individual, group or community, different cultural nuances and characteristics of each individual, group or community can be found. Consumption habits are associated with the philosophy of consuming consciously or unconsciously. Sometimes consumption habits are formed spontaneously due to the influence, the spread from community to community or from individual to individual (Trang, L. T., 2017). Therefore, the consumer culture of using plastic products such as nylon bags, bottles, jars ... as a means of storing goods stems from the influence and spread of industrial plastic products. When plastic products become popular, the habit of consuming plastic products takes place anytime, anywhere, mostly in traditional markets. It can be said that the habit of consuming plastic products of small traders and traditional market- goers nationwide has existed for more than 20 years. However, nowadays, in consumer culture, the habit of using plastic bags, bottles of small traders and traditional market people has contributed to increasing environmental pollution in rural areas, rivers, canals, climate change and sea level rise in Vietnam. Therefore, changing consumer culture from the habit of using plastic bags, bottles to using environmentally friendly materials of small traders and people going to traditional markets is increasingly urgent, contributing to reducing environmental pollution now and in the future. Therefore, the work of training the staff of the market management board, traders, and propaganda for market-goers about the harms of plastic waste is increasingly urgent. In the trend of integration, consumer culture has a strong impact on the national socio- economic development strategy such as green growth, sustainable development, response to climate change and sea level rise, in which the circular economic development with green growth is the inevitable trend of the world and Vietnam. Saying no to the use of nylon bags, plastic bottles, and plastic waste in traditional markets is an inevitable trend of green growth and sustainable development. With many rivers, canals in our country, the amount of hidden plastic waste from the network of traditional markets dispersed into the ocean is huge. Therefore, the change in consumer culture with the habit of using plastic products to store goods to materials such as banana leaves, lotus leaves, wrapping paper .... acts as intermediary goods rotation from small traders to consumers in order to limit plastic waste which cause environmental pollution to rivers, canals and marine environment. In exercising the State management over the traditional market network, the market management board plays the role of propagating the State's undertakings and policies in the field of commerce to the small traders doing business at the market. The market management board consists of a number of full-time or part-time people to perform the tasks of organizing, managing and arranging the trading of goods and services on the market; protecting order, security, safety and keeping market hygiene; organizing and managing fee collection; managing service activities to serve the business activities of buying and selling goods and services on the market, creating own capital in order to continuously invest in market development and contribute to local budget revenues (GSO, 2000). Therefore, the State focuses on training and

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retraining the market managers in order to “overcome the situation that the majority of market managers do not have specialized skills, mainly managing by experience. It is necessary to open training classes, fostering knowledge on market management for the existing staff and training those specialized in long-term market management for localities, develop training and retraining programs with contents suitable to each object, firstly focusing on the state management officials for markets and managers of markets. At the same time, diversifying forms of fostering and training to suit the actual conditions of each locality” (Ministry of Industry and Trade, 2007). However, the effectiveness of the market management's propaganda on the fight against plastic waste in our country's traditional markets has not achieved high results, the use of nylon bags, plastic bottles, jars ... is still common, causing environmental pollution, negatively affecting climate change and sea level rise. Small traders at traditional markets play a very important role in changing consumer culture from the habit of using nylon bags, plastic bottles and jars to environmentally friendly items in buying, selling and exchanging goods in traditional markets. At the end of 2019, in Ninh Hoa town, Khanh Hoa province, the Women's Union established a pilot model named “Ninh Trung small traders say no to disposable plastic waste”. Throughout Ninh Trung market, Ninh Trung commune, Ninh Hoa town, Khanh Hoa province, the model “Small traders say no to disposable plastic waste” was enthusiastically participated by small traders, step by step changing habits and limiting the use of plastic bags for customers. According to Ms. Le Thi Them - Ninh Trung market small trader: “We find this model meaningful, so we respond enthusiastically. Since joining the model, I see many women carry plastic baskets to the market while we use banana leaves, wrapping paper. This job is both economical and safe for the future and future children”. Mrs. Phan Thi Thu, a resident at Ninh Trung market, said: “Previously, every item from the market was stored in a plastic bag. I put it in the garden and the wind blew it everywhere, losing its beauty. Currently, women in the market use banana leaves, neatly wrapped paper, and then put them in a large bag, which significantly limits the use of nylon bags”. In 2019, the Women's Union of Da Nang City launched the “Anti-plastic waste” campaign with many practical activities. Accordingly, the Women's Union of Thanh Khe district mobilizes small businesses at the markets to use environmentally friendly bags, organizes propaganda in 11 markets and residential areas about the harmful effects of persistent nylon bags on the environment and human health, mobilizing people to limit the use of nylon bags in daily activities. Ms. Nguyen Thi My Canh - Chairwoman of the Women's Union of Thanh Khe district said: “Many good models and ways of all levels of the Women's Union in joining hands to reduce plastic waste have initially brought positive results in minimizing the pressure of waste disposal in the city and raising public awareness. Therefore, opening training classes and fostering knowledge on the environmental effects of plastic waste for small traders in traditional markets is a practical and effective job. Reality proves that “without understanding the idea thoroughly, everything is impossible”. When small traders understand the harms of plastic waste to the environment, they will become a force leading the campaign “say no to plastic waste in traditional markets”, “say no to the use of plastic items”, which will change consumer culture, forming a habit of not using nylon bags, plastic bottles, jars. From there, small traders will actively participate in the propaganda and mobilize market-goers to bring bags and baskets to store goods. To change consumption culture from the habit of using plastic items of small traders and market-goers to traditional materials such as banana leaf, lotus leaf, baskets and bamboo baskets, bottles, jars made of glass, porcelain ... is a long process that needs to be persistently organized and implemented with the motto “small rains lay great dusts”.

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From the past up to now, small traders trade and exchange goods at the market and traditional market-goers are mainly women. Therefore, the Vietnam Women's Union issued Guideline No. 26/HD-DCT-TG, dated October 30, 2018 on the implementation of the “anti-plastic waste” campaign with practical significance. The Vietnam Women's Union in localities across the country has taken many measures to limit plastic waste in the community and in traditional markets. There are many activities to protect the environment of small businesses in the south, for example:  Women's Union of Cat Hai district, Hai Phong City propagates about the harmful effects of plastic waste and plastic bags  Small traders of Dong Ha market, Quang Tri province signed a commitment to reduce and combat plastic waste pollution  Small traders at Ong Ho market, Tan Quy Tay commune, Sa Dec City, Dong Thap province uses banana leaves to pack goods  Small traders at the traditional market in Quang Ngai Province limit use of nylon bags in selling goods  Many banners with slogans of carrying baskets to the market and limiting the use of nylon were hung up in many markets in Quang Tri province; Many women in Phu Khuong ward, Ben Tre City, Ben Tre province joined the carrying baskets to the market campaign. The campaign “Women carry shopping baskets to market” encouraged people to use environmentally friendly biodegradable plastic bags, contributing to the fight against plastic waste in traditional market networks. However, to change consumption culture where plastic bags and bottles are not used as a means of keeping and storing goods with high effectiveness, the role of propaganda and the responsibility to set an example “say no to plastic items” of small traders in traditional markets is necessary. To make this change, it requires the combination of 3 factors: The market management board performs well the propaganda about the harm of plastic waste to small traders; The small traders have understood the dangers of plastic waste and the sense of responsibility to set an example; All levels, departments and localities have mobilized people to “say no to plastic waste”, implement the campaign “Women carry shopping baskets to the market” well. The propaganda and advocacy of all levels, sectors, especially the Women's Union, the Management Board of the traditional market system is an encouragement for small traders trading in the market in performing campaigns of “Small traders in markets say no to plastic waste”, “Small traders use environmentally friendly items”, “Women carry shopping baskets to the market” etc. However, products as nylon bags and plastic bottles with relatively cheap prices, convenient and attractive to small traders who sell at markets and shoppers, have formed the consumer habit of using nylon bags, plastic bottles for several decades, so the elimination of this consumption habit is a very difficult problem. Therefore, small traders who trade in traditional networks will become a leading force, pioneering in changing the habit of using nylon bags and plastic bottles, contributing to reducing plastic waste in the environmental protection in the present and the future. Small traders at traditional markets clearly play a very important role in changing consumer culture, forming a habit of using biodegradable materials instead of using plastic bags, bottles, jars to meet environmental protection requirements in Vietnam. In order to promote the role of small traders in traditional markets for a change in consumer culture, saying no to market plastic waste should go with the following solutions:

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First, all levels, departments and localities all over the country need to thoroughly grasp and fully implement the Party's lines and guidelines, the State's policies and laws on environmental protection and response to climate change, especially Resolution No. 24-NQ/TW, dated June 3, 2013 of the Central Executive Committee "on proactively responding to climate change, strengthening natural resource management and environmental protection" and Environmental Protection law. Second, the Industry and Trade sector strengthens training and fostering for officials and staff of the management board of traditional markets nationwide about the harmful effects of plastic waste, propaganda to and mobilizing traders to “say no to using nylon bags, plastic bottles, jars in trading and exchanging goods at the market”. Third, one of the top tasks of the traditional market management board is the propaganda, training, fostering and mobilizing small traders doing business in traditional markets to change in consumer culture and from the habits of using nylon bags, plastic bottles, jars ... to environmentally friendly materials. Fourth, the traditional market management board strengthens the propaganda in many vivid visual forms such as band rolls, panels, posters, etc about the harmful effects of plastic waste on the environment, climate change, and rise of sea level; about using traditional materials such as banana leaves, lotus leaves, water hyacinths for wrapping goods; containing food in bottles, jars made of china, porcelain; using shopping bag when going to markets… Fifth, small traders need to determine their positions, roles and responsibilities for changing consumption culture and for the habits of using objects from plastic in traditional markets; actively and enthusiastically participating in campaigns “say no to plastic waste in traditional markets”, “civilized small traders do not use persistent plastic materials” ... Sixth, small traders doing business in traditional market networks demonstrate their role and responsibility in propaganda activities and mobilize market-goers not to use nylon bags, forming the habit of using shopping baskets. They are the leading force, the messenger of the message “say no to plastic waste” and the campaign of “Women carry shopping baskets to the market”. Seventh, the Ministry of Industry and Trade, localities nationwide in the plan to develop the traditional market network need to add the small traders' commitment to limit the use of plastic bags, bottles, jars ... in selling buying and exchanging goods in order to comprehensively change consumer culture from the habits of using plastic objects to environmentally friendly materials of the people. Eighth, in emulation and commendation, it is necessary to commend and reward models, clubs and individuals small traders who say no to using plastic materials in markets, small traders who use environmentally friendly materials, small traders who say no to plastic waste in the market, small traders in markets who take responsibility for the community in environmental protection and response to climate change and sea level rise, small traders with the change of consumption culture in traditional markets”… Ninth, associated with tightening production technology, increasing taxes on nylon bags and plastic products causing environmental pollution in order to reduce the level of use of people; At the same time, encourage enterprises with modern technologies to produce environmentally friendly plastic materials to gradually replace plastic products that pollute the environment and affect climate change.

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4. Discussion Consumer culture is a system of human consumption behaviors shown at anytime, anywhere in general, in traditional markets of the country in particular. Consumer culture is also a message conveying cultural values, current standards and practices of people in each region. Changing consumption habits from using nylon bags, plastic bottles, jars ... as means of keeping and storing goods when shopping to materials such as banana leaves, lotus leaves, water hyacinth leaves..., using bottles, jars made of glass, porcelain as containers for goods are inevitable and suitable, meeting the requirements of current standards to protect the environment, responding to climate change and sea level rise in our country. In near future, authorities at all levels need to bring into full play the roles and responsibilities of the propaganda of small traders selling, buying and exchanging goods at traditional markets, which will definitely change the consumer culture, the habit of using plastic materials to use environmentally friendly items for storing goods when shopping, meeting the requirements of limiting environmental pollution, adapting to variables climate change and sea level rise in Vietnam. References 1. Nguyen Quoc (2020). Building a model to restrict the use of plastic bags, People's Newspaper (access date 15/8/2020). Available at: https://nhandan.com.vn/tin- chung1/xay-dung -model-to-use-from-me-to-ni-long-457608 / 2. Ministry of Industry and Trade (2007). Decision No. 012/2007 / QD-BCT, dated December 26, 2007 of the Ministry of Industry and Trade on “master plan for development of market network nationwide to 2010 and orientation up to 2020”, Hanoi, pp. 8 3. Prime Minister (2019). Decision No. 1746/QD-TTg, dated December 4, 2019 “promulgating the national action plan on ocean plastic waste management until 2030”, Hanoi, pp.6 4. Than, N. K., Thuy, H. H., Duong, N. D. (2005). Vietnamese Dictionary, Saigon culture Publishing House, pp. 1605 5. General Statistics Office (2000), The results of the 1999 network and cargo flow survey, Statistics Publishing House, Hanoi, pp. 7- 8 6. Ho Chi Minh (2011). Complete Works, Volume 3, National Politics Publishing House, Hanoi, pp.458 7. Them, N. T., (1999). Vietnamese Cultural Foundation, Education Publishing House, Hanoi, pp.10 8. Than, N. K., Thuy, H. H., Duong, N. D. (2005). Vietnamese Dictionary, Saigon culture Publishing House, pp.1770 9. Hoa, L. N. (1998). Consumer culture, Culture and Information Publishing House, Hanoi, pp.59. 10. Trang, L. T. (2017). Consumer culture - A theoretical perspective, Journal of political theory, No. 10/2017 (accessed date July 15, 2020). Available at: http://lyluanchinhtri.vn/home/ index.php / theme / item / 2243-object-object-a-word-of- law.html 11. General Statistics Office (2000), The results of the 1999 network and cargo flow survey, Statistics Publishing House, Hanoi, pp.6 12. Ministry of Industry and Trade (2007), Decision No. 012/2007/QD-BCT, dated December 26, 2007 of the Ministry of Industry and Trade on “master plan for development of market network nationwide to 2010 and orientation up to 2020”, Hanoi

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Sustainable Environmental Management in New Rural Construction in Dai Tu district Thai Nguyen Province Assoc. Prof. Nguyen Thi Que Loan1, Tran Thi Hoai Linh2 1 Department of History, Thai Nguyen University of Education Email: [email protected] 2 VietBac Centre for Foreign Languages Studies, Thai Nguyen University of Education

Abstract The program “new rural construction” has been implemented in Thai Nguyen province and it has brought positive changes to people’s lives. However, before implementing new rural movements, the poor infrastructure with many inadequacies has restricted the proper investment on environmental protection works in Dai Tu district. Moreover, the limited time and lack of detailed planing have made the environmental investments even more unachievable. This has resulted in limited handling of environmental problems. Therefore, it is necessary to have appropriate solutions to protect water sources, clean air, limit environmental pollution, and build a new sustainable rural. Keywords: Environnent, development, new rural, sustainable, Thai Nguyen.

1. Introduction The national target program on new rural construction is the central program of Resolution No. 26-NQ/TW of the 7th Central Conference Session X dated 5/8/2008. This program has brought practical benefits to rural residents because they are both the entity involved in construction and the beneficiary of the new countryside’s achievements. The task of new rural construction can be generalized into the basic contents: clean and beautiful civilized villages and communes, modern infrastructure; production develops sustainably in the direction of commodity economics; the farmers’ material and spiritual life is increasingly enhanced; national cultural identity is preserved; good security, democratic management (Pham Tat Thang, 2015). So far, the issue of new rural construction to attract the attention of a number of research scientists. On the basis of analyzing the status of implementing the new rural construction program, the results, restrictions and inadequacies, the authors Duong Thi Bich Diep and Pham Tat Thang have proposed a number of solutions to continue to effectively implement the policy of new rural construction across the country (Duong Thi Bich Diep, 2014; Pham Tat Thang, 2015). Ministry level project “Assessment of impacts of new rural construction policies in Vietnam”, author Hoang Vu Quang (2014) has fully assessed the application process as well as the positive and negative impacts of the policies of new rural construction as well as problems in the process of organizing and implementing policies. The study on “The new rural construction program: seen from the fact of the experimental communes”, Luong Thi Thu Hang (2015) that has showed the current situation of new rural construction in some experimental communes and outlined inadequacies, challenges in the process of implementing the program in different localities. With the aim of preserving and promoting cultural values in the environment of the community (village/ hamlet), contributing to building a new rural, author Nguyen Thi Que Loan (2016) pointed out that it is necessary to focus on building a cultural house following the traditional house model of the ethnic group as well as organizing activities at the community cultural house in her research.

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The program “new rural construction” has been implemented in Thai Nguyen province has promoted the power of the political system, in which, attaching importance to the roles and responsibilities of the heads of all levels, sectors, localities and units; clearly defining the subject's role of the people in new rural construction with perspective “people know, people discuss, people do, people check” and the motto “getting the people power to solve the affairs of the people”. After 10 years of implementing the program “new rural construction” (2010 - 2020), the appearance of many rural areas in Thai Nguyen province has changed markedly, it has brought positive changes to people’s lives, contributed to creating jobs, improved income, reduced the rate of poor households. Besides, due to the starting point on the infrastructure before deployment build new rural construction is low, some communes in extremely difficult areas of Thai Nguyen province have standardized criteria low, not really sustainable, including environmental criteria. Although in the recent years, the leaders have applied some measures to reach the environmental criteria with many innovations suitable to the situation of each locality and also achieved positive results but in general the environmental protection works has not been invested in construction, no time to change or lack of planning, this is a challenge that requires management strategies, implementation solutions to build new rural for sustainable development. This research has the main objectives: i) Finding out about the results of the implementation of environmental criteria in the new rural construction; ii) The challenges posed in sustainable environmental management when implementing the new rural construction, we selected Dai Tu district, Thai Nguyen province to be the research area. We choose this area because this is a locality with many communes meeting new rural standards (18/31 communes and towns). In the process of economic structure transformation, the development of trades and trade villages in Dai Tu has led to changes in the natural environment due to the impact of socio - economic activities. 2. Approaches and research methods In this study, we have recognized the problem by a functional approach, whereby the environment is considered as one of the pillars of sustainable development. According to the Union of Cities and Local Governments (UCLG) held in Mexico in October 2010, the UCLG Executive Committee declared that the four pillars of sustainable development were: economy development, social development, environmental and cultural protection. In Vietnam, Agenda 21 on sustainable development has oriented regional and local sustainable development, identified the pillars of sustainable development: economy, social equity and environmental protection. In addition, the research team has focused on the overall approach, regional and practical according to the principles of sustainable environmental protection. From the research approach, we used rapid assessment methods with the participation of local officials and people for the purpose of collecting data on socio - economic and environmental issues of local, the local community’s awareness of relevant issues (Prime Minister, 2004). In addition, the methods of collecting secondary data, analysis, and experts were also focused on in our research. Regarding the evaluation framework, we used the environmental criteria for this study in “Decision on promulgating a set of criteria and guidelines for implementing a set of criteria for new rural communes, model new rural communes, new model rural villages and model new rural households in 2017 - 2020” by Thai Nguyen Provincial People’s Committee to evaluate the effectiveness of management and implementation of environmental criteria in new rural construction in Dai Tu district, Thai Nguyen province. Follow this guide, to achieve the environmental criteria in the construction of a new rural, localities must achieve the following criteria:

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- The rate of households using hygienic clean water according to national standards reaches 90% or more; - The rate of households using clean water reaches 50% or more; - The rate of production and business establishments, aquaculture and trade villages comply with regulations on environmental protection reaches 100%; - Satisfying the requirements for landscape construction, green - clean – beautiful and safe environment; - Burial in accordance with regulations and planning; - Solid wastes in the area and wastewater from residential areas and production and business establishments are collected and treated according to regulations; - The rate of households having toilets, bathrooms, water tanks with hygienic and ensuring “3 clean” reaches 70% or more; - The rate of breeding households having breeding facilities with environmental sanitation reaches 60% or more; - The rate of households and food production and trading establishments complying with regulations on food safety reaches 100%. (Thai Nguyen Provincial People’s Committee, 2017, pp.6, 7). 3. Research results 3.1. Measures and results of implementing environmental criteria in new rural construction in Dai Tu district Thai Nguyen province Sustainable development is a process of development that has incorporates the following aspects: economic, social and environmental protection. The program of the new rural construction with the transformation of economic sectors in rural areas have caused environmental pollution, especially the pollution of water and air. Therefore, in the criteria for new rural construction, there are environmental criteria and this is also the most difficult criterion. Dai Tu district has 30 communes and towns, including 482 hamlets with the population of about 17 thousand people, of which, ethnic minorities account for 27%. In recent years, ethnic policies and programs have been implemented effectively by Dai Tu district, contributing to changing the appearance and the life of the people here. Since 2009, the State has invested in rural construction infrastructure in the extremely difficult communes through the capital of the 135 program with the total amount of 58.08 billion. In 2011, Dai Tu district implemented the National Target Program on the new rural construction. Until 2020, the district is the leading locality of Thai Nguyen province in the number of communes recognized as meeting standards (18/31 communes and towns that reached new rural standards). It can be said that the National Target Program on the new rural construction in Dai Tu district with the project, the model has helped people in the villages to access the application of new farming techniques to increase productivity, product quality, income, hunger eradication and poverty reduction, trade village expansion, contributing to creating a new rural recognize. Looking at the economy of the people in Dai Tu district, after the implementation of the new rural construction, we can see the changes in their livelihoods: from pure agriculture towards agroforestry development with non-agricultural jobs following commercial. As a result, people’s lives are gradually stabilized, the number of poor and near-poor households decreasing according to multi-dimensional criteria. If in the period 2011-2015, the district has 8,200 poor

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households (accounting for 16.64%), and near-poor households 6,181 (accounting for 12.54%), by 2019, the number of poor households will decrease to only 109 households (accounting for 2.0%). In addition to achievements in economic and social development, Dai Tu district also has to face the challenges of increasing environmental pollution. First of all, in order to achieve and maintain the environmental criteria in the new construction rural, Dai Tu district has promoted information and mobilized people through meetings of associations, unions, and self-governing people groups... In propaganda, they have focused on making people understand the target of the criteria, contributing to change awareness and from there to take specific actions. Since 2015, the district has coordinated with the Environmental Protection Fund of Thai Nguyen province to promote propaganda in various forms, such as: training, distributing leaflets to the people; support production and business establishments with environmental records. Officials of the Fund for Environmental Protection went to field checks to find out what the locality needs, then coordinated and mobilized units and businesses in the province to assist localities in purchasing garbage collection car, garbage cans, garbage storage tanks, garbage incinerator construction etc... Currently, each day, on average, the Environmental Hygiene Management Board of Dai Tu District and the sanitation cooperatives collect and process about 60-80 m3 of domestic waste for transportation for treatment, concentrated in Thanh Phong landfill (Binh Thuan commune, Dai Tu district). In addition, Dai Tu district leaders directed communes/ hamlets/ villages to set up organizations and unions to self-manage the roads in the village, weekly organize the cleaning of the environment, create a clean, airy and pretty landscape. Self-management groups regularly mobilize people to classify, collect and bury garbage and do “3 clean” (clean house, clean kitchen, and clean lane). The house is clean, has a full sanitary system, and uses clean water. The gate and entrance to the house have green fences or solidly built, beautiful and neat. Each village/ hamlet has its own rules and regulations on environmental protection; have a garbage collection point or a public garbage pits; have a drainage system to ensure hygiene. In the communes, there is a coordination with schools, the agency organizes general cleaning sessions at the unit, on weekly and monthly routes. Thai Nguyen Women’s Union and Thai Nguyen Water and Environment Association have collaborated with Party Committee, People’s Council, People’s Committee and Commune Women’s Union to organize environmental protection activities in rural, guide people to implement the model “family in new rural of 3 clean” with contents such as cleaning out the bushes, weeding; planting flowers and trees on inter-village roads; garbage collection and domestic waste sorting at source; composting microbiological in households. The Thai Nguyen Water and Environment Association gave members of Dai Tu District Women’s Union in difficult circumstances as a gift “Green House” to gather recyclables, donate inorganic rubber bins to households perform samples and develop stoves made of 304 stainless steel for households. Implementing Notice No. 173/TB-VPCP dated 10/5/2018 of the Government Office at the National Conference on building a model new rural residential area, model garden, Thai Nguyen province has directed localities, including Dai Tu district, focus on building new advanced rural commune, model new rural construction, promoting the construction and replication of models of “new rural households”, “model new rural villages”. Dai Tu district selected Tien Hoi commune to focus on building model new rural villages and communes. Along with general mechanisms and policies, the District implements the allocation

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of funds for the New Rural Construction program with the integration of funds from national target programs for sustainable poverty reduction, application of specific mechanisms, extract capital from the local budget to support the construction of “model new rural hamlet”. The model hamlets implementing the environmental criterion according to the third model are as follow: “having the economical garbage bags, having the household garbage pits, the plastic trash cans and non-recyclable inorganic waste”. Households in the hamlet were given instruction manuals on the implementation of model gardens in the environmental field and posted signs of “fruit tree planting area”, “waste storage area, garbage disposal area”, “production place microbiological fertilizer”, “the road for women to self-manage, green - clean - beautiful”. In the context of rapid urbanization, the demand for clean water for domestic use and water for production is increasing while water reserves are limited, potentially risking exhaustion and high pollution. Dai Tu district has coordinated with Thai Nguyen province to implement synchronous measures such as: building and managing a monitoring system of exploitation, using of water resources, discharging into water sources for river basin in the province; installation of underground water monitoring position. Rural domestic water works of Dai Tu district are invested mainly from the following sources: Program 134, Program “Scaling up rural sanitation and clean water based on results”, Domestic water center and environmental sanitation in Thai Nguyen province, non-governmental capital, provincial and district budgets... As of 2019, the rate of households in communes meeting rural standards to have access to clean water will reach 90% or more; 65% of households have hygienic breeding facilities; 90% of schools in the district use clean water and have hygienic toilets (Dai Tu District People’s Committee, 2019, pp.5). Nearly 10 years of implementing the national program “new rural construction”, Dai Tu district has actively integrated capital sources of programs and projects to build works for communes, ensuring investment efficiency criteria for building new rural construction in general, and environmental criteria in particular. In addition to launching the environmental sanitation movement; the district also requires hamlets to build up regulations on environmental sanitation; to inspect and review production and business establishments, farms and livestock farms; guide communes to prepare documents on environmental protection according to regulations; to build the regulation of cemetery management; organize the planting of green fences around the people’s cemetery... Through environmental protection activities of Dai Tu district, people have helped to raise awareness and self-awareness of implementing environmental protection actions from every household and community, contributing practically to raise quality of environmental criteria in the implementation of the new rural construction program. 3.2. The challenges of sustainable environmental management To complete the targets of the national program on new rural construction, Dai Tu district directs to focus on building the new and improved rural communes, the model new countryside, and accelerating the construction and replication models of “new rural households”, “model new countryside”. However, the reality shows that, among the criteria of achieving exemplary new rural communes and hamlets, the environment is still the difficult criteria for communes and hamlets to implement with the following reasons (see Table 1).

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Table 1: Reasons why communes and hamlets do not meet the environmental criteria in building new model rural communes/ villages Communes/ Villages The causes Tien Hoi commune - Have not met the target of a “centralized drinking water system, ensuring clean water supply for 100% of households in the commune”. The communes: Tien - Failure to meet the target ≥ 60% of households using clean water. Truong 2, Trung Na, - Failure to meet the target of having an environmental sanitation Go, Pho Dau, Dong team, 100% households participate in environmental sanitation Chung, Thang Loi, services, waste is sorted right from the households. Tien Truong 1. - Failure to meet the target of having a self-absorbing treatment system or a wastewater drainage canal to ensure hygiene and no environmental pollution. Solid waste and wastewater in concentrated residential areas and production and business establishments are collected and treated according to regulations. Dong Mac commune - Failure to meet the target of having an environmental sanitation team, 100% households participate in environmental sanitation services, waste is sorted right from the households. Source: Dai Tu District People’s Committee, 2020 The above situation requires Dai Tu district to continue synchronously implementing solutions to protect the green, clean, and beautiful rural environment such as: renovating and upgrading the concentrated domestic waste disposal complexes in communes and towns into an environmentally friendly garbage disposal area; mobilize investment capital sources for construction of waste treatment zones, the construction of concentrated clean works. To focus on waste treatment, domestic wastewater, waste from craft villages, farms, and livestock farms. As a mountainous district of Thai Nguyen province, Dai Tu district’s resources are limited, so when implementing the new rural construction, criteria for infrastructure, basic construction, and production model change are been priority for investment by the district, meanwhile, the implementation and the achieved results of the environmental criterion are only temporary and unsustainable - especially in terms of air and water quality. In economic development, Dai Tu district has advantages in mining industry: coal, tin, sand and gravel... It has Nui Phao with a total area of 921ha with large reserves of tungsten fluorite, bismuth, copper, and gold. In addition to Nui Phao, Dai Tu also has 4 industrial clusters with a total area of 214ha with a number of projects that have been invested and put into operation such as An Khanh Thermal Power Joint Stock Company, TNG Garment Factory, and Cement Factory Quan Trieu… Besides industrial clusters, the district has 38 craft villages, traditional trade villages, 100% of craft villages produce, process and trade in tea. The whole district has 506 households raising animals in the form of farms and family farms; including 65 livestock farms with a commodity output value of 1 billion VND/ year or more. The livestock farms follow a closed model, using industrial feed, barn system. In addition to contributing positively to the socio-economic development of the locality, the activities of industrial zones, craft villages, farms, and family farms... also pollute the living environment and harm health of human and sustainable development. According to estimates, wastewater flow of

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industrial establishments in craft villages, farms, family farms... in Dai Tu district is nearly 700,000 m3/ month, it has caused serious pollution on surface water quality of the district. Along with the amount of wastewater from industrial establishments, craft villages, farms and family farms is a large amount of wastewater, solid waste from households, schools, and hospitals... that is poured directly into ditches, ponds, lakes… and cause serious pollution to water sources and the air environment. Among those wastewater sources, the highest amount of wastewater comes from domestic and livestock activities (Pham Tat Dat, 2012). Table 2. The amount of pollution discharged into rivers and streams in Dai Tu district Waste amount (kg/day) Waste sources BOD TN TP Living 2894,89 514,65 154,39 Manufacture factory 806,77 38,67 11,31 Breed 855,87 504,28 41,42 Agriculture 457,06 1409,27 228,53 Urban area 840,75 156,42 19,55 Source: Pham Tat Dat, 2012, p.9 Regarding air quality, mining activities and livestock farms with large amounts of waste, but unsecured waste treatment facilities have caused dust and air odor pollution. In many areas such as the Nui Hong coal mine (Yen Lang commune), Lang Cam coal mine (Phuc Linh commune), the suspended dust content exceeded National technical regulation on ambient air quality over 5 times (MONRE, 2008); especially dust pollution, SO2, NO2 in mining areas, cement factory area Quan Trieu, An Khanh thermal power company (Yen Lang commune, Ha Thuong commune, An Khanh commune, Cu Van commune), dust content exceeds National technical regulation on ambient air quality by 1 to 12 times (MONRE, 2009); content of SO2, NO2 exceeds 02 times; in other areas, dust content exceeded 01 time to nearly 3 times (Pham Tat Dat, 2012, pp.11). Illegally exploiting surface water, underground water, discharging inadequate waste into water sources; outdated production and animal husbandry technologies give rise to a large amount of waste water causing environmental pollution, air quality... they are challenges in ensuring water security and air safety in Dai district in socio-economic development, new rural construction in a sustainable direction. 4. Discussion and Conclusion The national target program on the new rural construction has created a positive change, bringing into play the internal and external forces of the rural area towards sustainable development. In recent years, depending on the characteristics of each place, the Party committees, authorities, matrix and mass organizations of Dai Tu district have tried their best to implement many solutions, action plans to protect environmental protection. Along with taking advantage of resources, integrating capital from programs, projects and mobilizing people’s energy, investing in the construction of social welfare works, serving the people, Dai Tu district has supported the localities to purchase equipment for garbage collection. In addition, many practical activities have been implemented in response to the participation of all classes of people such as: mobilizing people to build a green - clean - beautiful environment landscape; changing habits of not littering; supporting for the construction of biogas tunnels for waste treatment and livestock wastewater; organizing environmental protection campaigns; strengthen inspection and management of environmental protection of production and

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business establishments, livestock farms, industrial clusters and craft villages... From there, they have brought positive results in environmental protection, contributing to improving the quality of life both physically and mentally in building a new rural. However, due to limited resources, the efficiency of implementing environmental criteria in new rural construction of Dai Tu district is still low compared to the requirements set out, specifically: many communes only meet the standards of safe water but not up to standards of clean water; the proportion of households using clean and hygienic water according to national standards has not met the requirements. In addition, solid waste, wastewater, odors from livestock farms, industrial establishments, households, hospitals, craft villages ... affect water sources and air quality for many years. Although the leaders of Dai Tu district have had positive solutions such as thematic resolutions; assigned to the organizations in charge; partial funding support for people; intensify inspection of industrial establishments, handicrafts, craft villages, farms that show signs of environmental pollution; handle violations of the law in the management and protection of the environment... However, due to equipment and technology in industrial production, craft villages, handicrafts, wastewater treatment works still backward and manual, the consequences of environmental pollution in Dai Tu are increasing. All of those solutions only contribute to limiting but not thoroughly handling the environmental pollution. To enhance the effectiveness of sustainable environmental management in new rural construction, in the coming time, there are some possible solutions are as follows: Firstly, there are specific instructions on environmental criteria, especially the criteria for the quality of clean water and air, as a basis for local implementation. Encouraging the development of environmentally friendly and traditional handicraft crafting occupations and at the same time require craft villages and production establishments to have a plan for pollution treatment, as a basis for consideration and recognition new rural. Secondly, there are mechanisms to support, provide loans, tax incentives and land use for production establishments, craft villages, livestock farms... with a project to build waste treatment according to regulations determination; at the same time, there is an economic penalty that is even forced to stop working with production establishments, craft villages, livestock farms ... for violations of environmental pollution. Thirdly, stipulate the responsibility to guide, monitor, evaluate, and supervise the implementation of environmental criteria by local environmental state management agencies. Fourthly, strengthening environmental inspection and assessment for communes and districts that have been recognized to meet national standards in order to maintain and enhance the results achieved in the rural environment.

References 1. The Central Committee of the Communist Party of Vietnam (2008). Resolution of the Seventh Conference of the X Party Central Committee on agriculture, farmers and rural areas. On the page: https://thuvienphapluat.vn/van-ban/linh-vuc-khac/Nghi-quyet-26- NQ-TW. Retrieved 22/8/2020. 2. Ministry of Agriculture and Rural Development (2017). Circular No. 05/2017 / TT- BNNPTNT dated March 1, 2017 guiding a number of contents for the implementation of the National Target Program on New Rural Construction in the 2016-2020 period. On

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the page: http://tulieuvankien.dangcongsan.vn/he-thong-van-ban/van-ban-quy-pham- phap-luat/thong-tu-so-052017. Retrieved 18/8/2020. 3. Ministry of Natural Resources and Environment (2008). National technical regulation QCVN 05: 2008/ BTNMT on ambient air quality. On the page https://thuvienphapluat.vn/phap-luat/tim-van- ban.aspx?keyword=th%C3%B4ng+t%C6%B0+05. Retrieved 25/8/2020. 4. Ministry of Natural Resources and Environment (2009). National technical regulation QCVN 05: 2009/ BTNMT on ambient air quality. On the page https://thuvienphapluat.vn/phap-luat/tim-van- ban.aspx?keyword=th%C3%B4ng+t%C6%B0+05. Retrieved 25/8/2020. 5. Duong Thi Bich Diep (2014). “The program of building a new rural in Vietnam: current situation and solutions”. Vietnam Journal of Social Science. Number 8 (81). p.61 - 68. 6. Pham Tat Dat (2012). Research on the current status and forecast of changes in the air and water environment in Dai Tu district to 2020. Master thesis in Environmental Science. College of Natural Sciences. Ha Noi. 7. Luong Thi Thu Hang (2015). New Rural Construction Program: real-world view of experimental communes. Ministry level science and technology topic. Regional Sustainable Development Research Institute. Ha Noi. 8. Nguyen Thi Que Loan (2016). “The role of the community culture house in the implementation of the “All-people unity movement to build a cultural life” (through research in Na Quan hamlet, Dong Hy district, Thai Nguyen province”. Scientific conference proceedings "Building a new rural cultural life”. Published by the People’s Committee of Son La province. p. 352 - 332. 9. Hoang Vu Quang (2014). Impact assessment of new rural construction policy in Vietnam. Ministry level topic. Institute of Policy and Strategy for Rural Development. 10. Pham Tat Thang (November 5, 2015), “Building a new rural: some problems posed”, on the page http://www.tapchicongsan.org.vn/Home/Viet-nam-tren-duong-doi-new. Retrieved 13/9/2018. 11. Prime Minister (2004). Prime Minister’s Decision No. 153/2004/ QD-TTG dated 17/8/2004 promulgating the strategy for sustainable development in Vietnam (Vietnam’s Agenda 21). On the page https://thuvienphapluat.vn/van-ban/bo-may-hanh-chinh/Quyet- dinh-153-2004. Retrieved 01/10/2020. 12. Prime Minister (2009). Decision on the promulgation of the national set of criteria for a new rural. On the page https://thuvienphapluat.vn/van-ban/van-hoa-xa-hoi/Quyet-dinh- 491. Retrieved 22/8/2020. 13. Thai Nguyen Provincial People’s Committee (2017). Decision on promulgating a set of criteria and guidelines for implementing a set of criteria for new rural communes, model new rural communes, new model rural villages and model new rural households in 2017 - 2020. Archived at Thai Nguyen Provincial Party Office. 14. People’s Committee of Dai Tu district (2019). Report on the total program of the new rural period 2015-2019. Archived at the Office of the People's Committee of Dai Tu district. 15. Dai Tu District People’s Committee (2020). Report on progress of building a new rural program in 2020. Archived at the Office of the People's Committee of Dai Tu district.

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The Requirements and Development Orientation for the Military Schools in Vietnam in the Fourth Industrial Revolution Context

Nguyen Trong Luat Military Technical Academy, Hanoi Email: [email protected]

Abstract The Fourth Industrial Revolution (4.0 industry) is no longer a trend and has really started with humanity. Vietnam’ military has many conditions to modernize its weapons and equipment, as well as increase its military potential. To achieve that goal, we need a high- quality military technical staff. Training a contingent of high-quality military technicians is an indispensable requirement, which is both urgent and a long-term strategy to strengthen the military, to meet the mission of career construction and protect the Socialist Fatherland in the context of Industry 4.0. These missions involve the main role of technical schools of the Vietnam People's Military. To achieve this goal, the application of the achievements of Industry 4.0 in training in military technical schools today are required to meet the requirements posed by the reality. Keywords: Cadres, 4.0 Industrial revolution, Military Schools.

1. Introduction The fourth industrial revolution is the development of the structure of science and technology, intelligent systems taking the leading role, communication between intelligent platforms, the "symbiosis" between creative intelligence of people and artificial intelligence products on a large and universal scale, making the whole system of production, management and governance in society change. Compared with the previous industrial revolutions, the Industrial Revolution 4.0 develops at an exponential rate and transforms every industry in every country. The breadth and depth of these changes transform the whole system of production, management and administration. With the characteristic of making full use of the pervasive power of digitalization and information technology, this new technology wave is having a strong and increasing impact on all aspects of socio-economic life, leading to a change in methods and production forces of the society. The production processes in factories are connected through smart devices, this brings many great advantages to life, workers' income will increase, and the quality of life will be improved. It proves C. Marx's prediction of genius more than a hundred years ago: "The development of fixed capital is an indicator of to what extent popular social knowledge [Wissen, knowledge] has transformed into a force of direct production” (Marx & Engels, 2000). The characteristics of Industry 4.0 are shown through the following contents: Firstly, the digitized and automated world is becoming more and more efficient and intelligent. Secondly, the information processing feature is multiplied by technological breakthroughs in many fields. Thirdly, the consolidation, there is no boundary between the fields of technology, physics, digital and biology. Fourthly, the development of the fourth industrial revolution creates social inequality.

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The fourth industrial revolution is no longer a trend and has really started with humanity. The effects of Industry 4.0 on all areas of life are quite clear, and defense - security is not an exception. Like the industrial revolutions that took place in history, the latest scientific and technological achievements are always applied first to the military field. In the military, the technological achievements of Industry 4.0 will allow the development of a variety of new military weapons. In the coming time, a new generation of weapons, equipment and weapons will inevitably appear on the basis of new technology with the integration between different technical systems. The weapon system is no longer a single mechanical or electronic, but the integration of precise and intelligent control and processing techniques. Some major trends can be forecast, such as: Weapons made from 3D printing technology, emergence of high-tech weapons with artificial intelligence, choosing the mode of operation increases combat efficiency, typically military robots, training equipment training in combat simulation and combat commanding, Smart Military Base. 2. Methodology This paper uses an overall and comprehensive approach to collect and summarize the recent studies and reports which are related to this topic. All the data and figures are obtained based on the secondary data provided by some public organizations like the Communist Party of Vietnam; General Statistics Office of Vietnam; Ministry of Defence, etc. 3. Results 3.1. Effects of industrial revolution 4.0 on education and training activities in military technical schools Facing the strong and far-reaching impact of Industry 4.0, education and training in military technical schools requires changing training methods and methods with the powerful application of information technology, digital technology and network system. Forms of online training, virtual reality, simulation, and digitizing lectures are inevitable trends. It requires military technical schools to have a good preparation of resources for teaching organization, especially the application of the achievements of Industry 4.0. Education in military technical schools to meet Industry 4.0 requires a change in teaching objectives. Teaching objectives need to shift from training "what you have" to training "that units need and will need", with special attention paid to the ability to work independently, collaborative and creativity of students. Shift from imparting knowledge to the masses through efforts (unleashing potentials, abilities, and motivation). Apply new educational models such as virtual classrooms, simulation equipment, laboratories, electronic libraries, multimedia classrooms, sports field, training grounds, simulation battlefields, etc. with the support of smart devices. The training program to meet Industry 4.0 needs to meet high expertise in the military field, while meeting interdisciplinary characteristics (information technology, digital, networking, and specialized knowledge). In order for a technical officer to respond well to 4.0 technology, training programs at all levels need to be equipped with indispensable skills, such as: skills in using information technology, foreign languages, general skills, skills in connecting real and virtual worlds, creative skills, teamwork skills, interdisciplinary cooperation, etc. In the context of technology knowledge changes rapidly and equipping self-learning and a sense of lifelong learning is even more important than the knowledge of the training program. Education in military technical schools to meet Industry 4.0 requires the quality of teachers to be improved, teaching methods must be changed in a more positive direction and improved quality of lecturers. Because, no matter how modern science and technology develops, it cannot completely

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replace the role of lecturers. In the current development of science and technology, students can search for knowledge and skills by themselves through the Internet, if lecturers do not regularly improve their qualifications, this impact will make gradually lost its leading role. This is a great pressure for the current Military of military school lecturers. Therefore, the requirements for the teachers of military technical schools need to develop professional standards, professional skills, pedagogical skills, information technology application skills, skills to use images and sounds in lecture design. Because, in near future, promoting the application of information technology and virtual reality technology in training military officers will be a prominent trend. To meet the Industry 4.0, for the teaching process in military technical schools, it is necessary to switch from transferring knowledge to forming the quality and developing capacity of learners; organize an open, practical, professional education; in the educational process, from mainly quantity to focusing on quantity, quality and efficiency; shifting from focusing only on personality education in general to combining personality education with the best promotion of individual potentials; moving from the concept of having knowledge is capable to the concept of knowledge is only an important factor of capacity. For studying in military technical schools to meet Industry 4.0, students need to change from memorizing, remember more to form the ability to apply, adapt, solve problems, and think independently. Not only studying in books, through documents but also in many other forms such as the interaction between people and smart devices; use weapons and handle combat situations in virtual spaces. The management staff of trainees at all levels should be professionalized and have high creativity and modern training methods with strong application of information technology. Need to have student management tools based on smart card technology and student management software. Classes should be organized more appropriately in terms of number of students, class structure, time of study, method and form of learning; the number of students should not be too large. In addition to the concentrated study hours, students can be divided into several learning groups and clubs. In addition to the quality requirements, the competency requirements of the student management staff should be raised. They need to be defined in the right roles and tasks and be trained and fostered in all aspects, proficient in use of equipment, to meet the requirements of managing trainees in the new context. It is necessary to take some measures to retain talent for the military, first, the organization must develop on-site resources, and then attract outside sources, especially important positions. Then, build loyalty to the organization, create a mechanism to nurture, appreciate and retain talents. It is necessary to exploit psychological factors, working environment, create benefits and mechanisms for talented people so that they can master their jobs and develop their creativity. For leaders in command at all levels, there should be a talent retention strategy; identify important positions in the organization, determine who can undertake it - have the ability to identify indispensable people in the organization. Thus, Industry 4.0 has created great pressure in education and training activities for military technical schools, from building training programs, retraining staff and trainers to training on student's skills should be carried out in a single way. In the face of the requirements of the cause of building and defending the country in the era of Industry 4.0, military technical schools need to go ahead and be prepared to ensure sufficient human, material and financial resources to perform educational tasks - military officer training in accordance with the standardization of Industry 4.0.

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3.2. Application of the fourth industrial revolution is required in today's military technical schools Industrial Revolution 4.0 has profoundly affected all aspects of social life, opening up many opportunities, but also posing many challenges for all fields, including the military and national defense sectors, and military technical school system. In order to be able to access and apply the advances of science and technology, to bring into play the role of training high-quality human resources for the cause of national construction and defense in current conditions, military technical schools need to master and fulfill the following requirements: Firstly, the application of industrial revolution 4.0 in military technical schools must thoroughly grasp and concretize the views of the Party, State and Military on enhancing the accessibility to Industrial Revolution 4.0. Our Party and State are always interested in education, especially in the context of rapidly developing science and technology. The Eighth Meeting of the Party Central Committee, Session XI, issued Resolution No. 29-NQ/TW on fundamental and comprehensive innovation of education and training, meeting the requirements of industrialization and modernization in the socialist-oriented market economy and international integration. The Prime Minister issued the Directive No. 16/CT-TTg on strengthening the capacity to access the fourth industrial revolution. The Ministry of Education and Training has developed a project to support start-up students until 2025; project to improve the capacity of lecturers and managers of higher education institutions to meet the requirements of comprehensive fundamental innovation of education and training in the 2019 - 2030 period ; the Strategy for Higher Education Development in the 2021-2030 period, with a vision of 2035, serves as a basis for innovation, a comprehensive and sustainable development in the long term of the higher education system. The Resolution No. 28-NQ/TW of the Eighth Conference, Central Executive Committee, Session XI “on the Strategy to protect the country in the new situation” has identified: “The international community has to deal more and more drastically with traditional and non- traditional security challenges, especially cybersecurity and new forms of war”; and set out tasks and solutions: “Pay attention to the development of science - technology, military arts, security and apply scientific achievements to training, ready to fight, etc.” The resolution of the Politburo on Industrial Revolution 4.0 identified: Actively participate in the industrial revolution 4.0 is an objective indispensable requirement; is a mission of a particularly important strategic significance, both urgent and long-term for the entire political system and the entire society, closely linked to the process of deep international integration; at the same time, fully and properly aware of the content and nature of the industrial revolution 4.0 to determine to innovate thinking and action, considering it as a breakthrough solution with appropriate steps and roadmaps as opportunities for Vietnam to make a breakthrough in socio- economic development. Industrial Revolution 4.0 brings both opportunities and challenges. Timely grasp and make effective use of opportunities to improve labor productivity, efficiency, competitiveness of the economy, effectiveness and efficiency of social management through research, transfer and application, vigorously apply the advanced achievements of Industrial Revolution 4.0 to the fields of socio-economic life, especially a number of key industries and fields with potentials and advantages to drive growth in the spirit of catching up, moving forward and surpassing in some areas compared to the region and the world.

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Proactively prevent and respond to limit negative impacts, ensure national defense, security, safety, social equity and the sustainability of the country's development process. Industrial Revolution 4.0 requires renewed thinking about economic management, social management, building and perfecting institutions to match. It is necessary to have an open, creative, pilot approach to the newly posed practical problems, creating all favorable conditions for innovation. Avoid all expressions of indifference, lack of confidence, passive, but not subjective, hasty, and lack of willpower. Bring into full play all resources, ensure sufficient resources for proactively participating in Industrial Revolution 4.0, identify internal resources as decisions, strategies, fundamental and long-term; external resources are important, breakthrough, ensure the Party's leadership, State management, and promote the strength of the entire society. These are important orientations for the military school system in general, military technical schools in particular in the training of high-quality human resources for the military and the country in the new era. Deeply, fully and concretizing the views of the Party, State, and Military and doing well the contents and measures to train and foster high quality human resources for the military and the country in Industrial Revolution No. 4.0 mentioned above are practically contributing to the successful implementation of the goals and tasks of building and defending the Socialist Vietnam Fatherland. Whereby: Party committees and commanders at all levels in military technical schools need to focus on leadership, direct well-organized learning, grasp thoroughly, create unity of awareness and action in implementing policies and guidelines and policies of the Party and State on military and defense missions, and military education and training work. The focus is on the Resolution of the XII Congress of the Party; Resolution No. 29-NQ/TW dated November 4, 2013 of the Communist Party Central Committee, term XI on fundamental innovation, comprehensive education and training, to meet the requirements of industrialization and modernization in market economic event with socialist orientation and international integration; Central Resolution 8, Session XI on Strategy to protect the Fatherland in the new situation; Vietnam National Defense Strategy; Vietnam Military Strategy; Strategy to protect the Fatherland on cyberspace; Conclusion No. 16- KL/TW dated 7-7-2017 of Politburo XII on organization of the People's Military of Vietnam until 2021 and the following years; Resolution of the Xth Military Party Congress; Strategy for the development of education and training in the Military for the 2011-2020 period, issued together with the Decision No. 2523/QD-BQP of the Minister of Defense; projects on school work, education and training tasks have been approved and implemented by the Ministry of National Defense. Attention should be paid to thoroughly grasp and effectively implement the Directive No. 16 / CT-TTg dated 4-5-2017 of the Prime Minister on strengthening the capacity to access the industrial revolution 4.0; the Decision No. 737 / QD-BQP dated March 13, 2018 of the Minister of Defense on promulgating the Plan of the Ministry of Defense to implement the Directive No. 16 / CT-TTg; Decision and Action Plan of the military school system before the impact of Industrial Revolution 4.0 in the 2018-2020 period and the following years. The approach and application of industrial revolution 4.0 is an important task of the innovation of education and training in the military technical schools today. Therefore, the requirement for military technical schools is to fully realize the honor, responsibility, organize, seriously implement, with appropriate and effective roadmap and methods; focus on implementing well the pilot training of key contents identified in the action plan of military technical schools before the impact of the industrial revolution 4.0 in the 2018-2020 period and the next years. On that

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basis, to promptly draw experience to implement, shorten the time to approach, and effectively apply the achievements of the industrial revolution 4.0 in the current military technical schools. Secondly, the application of industrial revolution 4.0 in military technical schools must both ensure the educational objectives and contribute to improving the quality and efficiency of education and training. In the industrial revolution 4.0, the interaction between devices and between devices and people will create a new form of production. Some new skills will be required for learners, such as: problem solving skills, critical thinking, communication skills, collaboration, creativity and innovation. This is an important feature that not only guides and changes training programs and methods, and forms new majors in military technical schools, but also sets out the inevitable requirement of “lifelong learning” for with practitioners in Industrial Revolution 4.0. Education in the era of the industrial revolution 4.0 has a great change in training objectives and methods, that is, shifting from imparting knowledge to the masses to unleashing potentials, and empowering each individual. Trainers will move into a new role of designer, catalyst, mentor, and learning environment. With digitalized learning content, learners will have a separate learning path, and can choose content that matches training objectives. The digital learning system also provides learning performance feedback with suggestions for follow-up learning contents. The scope of interaction in education 4.0 is also very large, geographic, spatial and temporal distances are blurred. The educational environment does not only take place within the school, but also expands on a global scale. Learners can actively research materials as well as interact with teachers at any time using computers or smartphones. The development of online forms of learning saves learners time, effort and money. Augmented reality/virtual reality (AR/VR) technology is widely used, helping learners experience and practice skills. Faced with the impacts of Industrial Revolution 4.0, it poses a requirement for the education system in general and military technical schools in particular to bring learners not only knowledge but also many soft, special skills. especially creative thinking, the ability to adapt to the rapid changes in science and technology. Therefore, to ensure the quality of human resources, it is inevitable that all teachers and learners must change. For trainers: Not only a lecturer, but also must cultivate knowledge and skills to become a designer, consultant, coach, and create a learning environment for learners. For learners: Change the way of learning from passive to active; need to equip many skills to be able to self-study, self-study and self-update knowledge to adapt to all new requirements. On the other hand, teaching objectives also need to shift from training "what you have" to training "that units need and will need", with special attention paid to the ability to work independently, collaborative and creativity of students. Shift from imparting knowledge to the masses through efforts (unleashing potentials, abilities, and motivation). It is necessary to apply new educational models such as virtual classrooms, virtual teachers, virtual equipment, laboratories, electronic libraries, multimedia classrooms; sports fields, training grounds, virtual battle fields, etc. under the support of smart devices. To meet Industrial Revolution 4.0, setting the requirements for the teaching process in military technical schools needs to shift from transferring knowledge to forming qualities and developing learners' competencies; organize an open, practical, professional education; in the educational process, from mainly quantity to focusing on quantity, quality and efficiency; shifting from focusing only on personality education in general to combining personality education with the best promotion of individual potentials; moving from the concept of having knowledge is having capability to the concept of knowledge is only an important factor of

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capability. For studying in military technical schools to meet Industrial Revolution 4.0, students need to change from memorizing, remember more to form the ability to apply, adapt, solve problems, and think independently. Not only studying in books, through documents but also in many other forms such as the interaction between people and smart devices; use weapons and handle combat situations in virtual spaces. Thirdly, the application of Industrial Revolution 4.0 in military technical schools must ensure confidentiality and information safety. The Industrial Revolution 4.0 has a great impact on the fields of military science and technology. In the future, there will inevitably appear new generation of weapons, equipment and weapons that are formed on the basis of new technology with the integration between different technical systems, it is no longer single mechanical or pure electronics but rather the integration of precise control techniques, intelligent processing, etc. On the other hand, in the era of Industrial Revolution 4.0, the battle space with battlefield boundaries is no longer as limited as now and to complete the task, the technician must be able to adapt to the high-tech training and combating environment. The issue of information security and safety has become especially important, must be regularly paid attention to, avoid leaking information in the course of study and work, military technicians must have knowledge and awareness of online information security. Thus, students need to be equipped with a new knowledge system for the purpose of intelligent military equipment systems and in-depth knowledge of cyber warfare and ensuring information safety and security. The reality shows that, one of the reasons affecting information security and safety in military technical schools is the limited awareness of officials, teachers and students about threats can occur from the risk of information insecurity. Raising awareness of officials, teachers, students, especially leaders and commanders at all levels about the need to develop information technology in parallel with the work of confidentiality and ensuring information safety in military technical schools is regular and continuous aiming to step by step implement the e-Government program as well as ensure the development of command, advisory, management and administration capabilities. On that basis, the party committees and commanders at all levels need to strengthen leadership, direct good communication and dissemination for staffs, teachers and students to master basic knowledge about information confidentiality and security, at the same time include information security and information security in the leadership resolutions of each Party organization and become regular plans and tasks in agencies and units in military technical schools. To promote the core role in the orientation, development and application of information technology and security, ensuring information safety, military technical schools must thoroughly grasp the views and directions of the Party, the State, the Ministry of National Defense on orientations for the development of information technology application and security, information security assurance, constant innovation in awareness, thinking, professionalism and creativity in implementation organizations, dynamic deployment of solutions to develop information technology application, preventive measures, eliminate risks of information insecurity, protect military secrets, state secrets, not to be passive, unexpectedly in all situations, actively contributing to firmly defend national sovereignty on cyberspace and effectively serving the cause of national construction and defense in the era of Industrial Revolution 4.0./. 4. Conclusion Industrial Revolution 4.0 has profoundly affected all aspects of social life, opening up many opportunities, but also posing many challenges for all fields, including the military and national sectors. military engineering schools and systems. In order to be able to approach and apply the

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advances of science and technology, to bring into play the role of training high-quality human resources for the cause of national construction and defense in current conditions, technical schools The military needs to master and fulfill some of the following requirements. References 1. K. Marx and F. Engels: Complete volume, p.46, part II, National Political Publishing House, Hanoi, 2000, p.372. 2. Klaus Schwab (2016), The Fourth Industrial Revolution, The Truth National Political Publishing House, Hanoi. 3. Ministry of Defense (2017), Proceedings of the Scientific Workshop "The Fourth Industrial Revolution: Opportunities and Challenges for Scientific Research and Military Technology Development”, Hanoi. 4. School Department, General Staff (2017), Proceedings of scientific seminars: “The Fourth Industrial Revolution and Emerging Issues for Military School Work”, Hanoi. 5. The Communist Party Central Committee term XI (2013), Resolution No. 29-NQ/TW dated 4-11-2013 on Fundamental Innovation, Comprehensive Education and Training, to Meet the Requirements of Industrialization and Modernization in Market Economic Event with Socialist Orientation and International Integration. 6. The Prime Minister (5/2017), Directive No. 16/CT-TTg dated 4-5-2017 on Strengthening the Capacity to Access Industrial Revolution 4.0.

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