OECD (2015) Recent state of natural resource endowments and environmental pressures in Vietnam

A considerable proportion of Vietnam's economic growth in the past two decades has been the result of exploiting natural resources, especially the intensified use of both land and water, and a large degree of deforestation to plant export crops.

Vietnam is relatively rich in water resources, but regional and seasonal differences are significant and local shortages occur during the dry season, in particular in Southeast provinces. Moreover, almost 60% of Vietnam's total water resources are generated outside its borders, making the country vulnerable to decisions made about water resources in upstream countries (FAO AQUASTAT, 2013).

The economic scarcity of land is significant, with just 0.12 ha of agricultural land per capita, one-sixth of the world average, on par with Belgium, just below the Netherlands, but less than China or Indonesia and just above the Philippines and India (FAOSTAT, 2015). There are also growing pressures to convert agricultural land into higher-value non-farm uses (both urban and industrial).

Only about 30% of soil resources in Vietnam are of good quality. Due to the excessive use of fertilisers, pesticides and other chemicals, there has been a progressive degrading of the land and soil environment (MONRE, 2014). This leads to the widening prevalence of soil erosion, decline of soil fertility and growing risk of eutrophication (Pham et al., 2006; Vietnam Soil Association, 1996).

Deforestation, from increased planting to profitable agricultural crops, notably coffee, occurred heavily until the early 1990s. While the area of natural forest continues to decline, reforestation efforts in the last 15 years have increased total forested areas, in particular of planted and naturally regenerated forests. Despite these efforts and successes, over two-thirds of natural forests are considered to be of  'poor' or 'recovering' quality and low land forests have been almost completely depleted (UN-REDD, 2009). Vietnam has one of the highest rates in the world of the deforestation of primary forests.

Vietnam is listed among the ten countries potentially the most affected by climate change. Climate change scenarios developed by the Vietnamese government predict increases in average temperature, rainfall and rising sea levels. The potential impacts on agriculture are serious, as floods and droughts are predicted to happen more frequently. In particular, large cultivation areas in Mekong and Red River deltas are likely to be even more affected by salt water intrusion to sea level rise (ISPONRE, 2009).

OECD (2015) Agricultural policies in Vietnam 2015 

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