Environmental Policies

The Bank supports the mainstreaming of environmental issues into laws, policies, and planning instruments of Vietnam. Sector-specific examples of policy dialogue can be found in almost all our projects and many examples are outlined on the other theme web pages of this site.

In addition, at a very broad level, environmental policy work is done through Poverty Reduction Support Credits (PRSCs) and support to planning processes.

Poverty Reduction Support Credits (PRSCs)

Poverty Reduction Support Credits, or PRSCs, are a long-term financial instrument to support nationally-owned strategies for economic growth and poverty reduction. Between 2001 and 2009, eight multi-donor PRSCs for Vietnam have been implemented.

By providing resources directly to a state’s budget on an annual basis, PRSCs aim at facilitating the implementation of the reform agenda of the government of Vietnam as laid out in the Social Economic Development Plan (SEDP) 2006-2010. Policy actions and policy triggers are carried out by the Government. Approved in June 2006, the SEDP 2006-2010 is currently Vietnam’s Growth and Poverty Reduction Strategy.

All PRSC project documents include an explicit assessment of possible environmental issues stemming from the budget support. Improving environmental management is also directly addressed in PRSC policy actions in relationship to institutional strengthening, enhancing environmental assessment procedures, pollution prevention and control, and sustainable management of forests and water resources. PRSC 8 was submitted for Board approval in late June 2009.

Under the PRSC 7 (June-December 2008), actions on natural resources management were extended to the preparation and approval of guidelines for forest development based on participatory land-use planning and independent monitoring. In addition, the topic of integrated river basin management was addressed through agreed policy actions.

A core target under the natural resources pillar of PRSC 8 was the approval of a national target program on climate change adaptation. Led by MONRE, a plan was approved, complying with this policy trigger. Likewise, a biodiversity protection law was issued to clearly delineate and better administer protected areas, and to improve the community consultation process. Finally, in the policy area of forestry management, progress was made in transferring land owned by state owned enterprises to local communities.

Since their inception, PRSCs in Vietnam have received financial support from bilateral and multilateral agencies including ADB, Canada, Denmark, DFID, the European Commission, France, Ireland, JBIC, the Netherlands, Spain, and Sweden.