Capacity Development for the Clean Development Mechanism, Phase I
Mission Report: Vietnam
Prepared by: Dr. Subhes C. Bhattacharyya
Energy Program, AIT
First Draft
September 27, 2002
Bangkok, Thailand
1. Objectives of the country mission:
Three countries of the Asian region, namely, the Philippines, Viet Nam and Mangolia, are being reviewed for developing capacities related to CDM. One of the initial tasks of the project is to designate an appropriate focal point agency that will coordinate the national CDM activities. The starting point for capacity development is to identify the gaps in existing capacity and assess the need for building capacity. Moreover, in the preparatory phase of the project, the major country level work is to prepare the national work plan. In order to prepare a country specific strategy, it is essential to assess the national involvement and commitment to the principles of the CDM. It is also important to prepare an inventory of the past and ongoing national activities related to CDM.
The objectives of the mission to Viet Nam were therefore to:
a) identify a national focal point agency;
b) to assess the national involvement and commitment for the CDM,
c) to take stock of past and present activities on CDM, and
d) to assess the need for capacity development.
2. Brief description of the mission
The first country mission to Viet Nam for this project was held between August 26th and August 29th, 2002. The team consisted of Dr. M. K. Lee of UCCEE and Dr. Subhes C. Bhattacharyya of AIT. Mr. Ngyuen Khac Hieu of the National Office for Climate Change & Ozone Protection (NOCCOP), Hydrometeorological Service (HMS) received the team at Noibai international airport in Hanoi on August 25th 2002. Mr. Hieu was the initial contact person for the visit and organized all the meetings and discussions that took place during the mission. During the visit, the team stayed at Hanoi Horison Hotel. The mission ended in the afternoon of August 29th 2002 when the team departed from Noibai airport.
3. Notes of discussion /meetings with different stakeholders
During the mission, the team met different stakeholders at various offices and discussed the subject of CDM and the issue of capacity building in Viet Nam. A chronological description of the meetings and discussions is given below:
3.1 August 26, 2002
a) Mr. Ngyuen Khac Hieu, Coordinator, National Office for Climate Change & Ozone Protection (NOCCOP), Hydrometeorological Service (HMS), 57 Nguyen Du street, Ha Noi, Viet Nam. Tel: (84 4) 822 8974, Fax (84 4) 826 3847, Email:
Mr. Hieu informed the team about the past and ongoing projects on climate change and CDM. Viet Nam has been working on climate change issues since 1994, when it ratified the UNFCCC. The Government has designated the Hydro-Meteorological Service of Viet Nam as the National Authority for implementing UNFCCC and the Kyoto Protocol. Hierarchy-wise, the Hydro Meteorological Service was a ministerial level organization and the Director General of HMS was a Vice-Minister. A number of centers, institutes and offices report to the HMS. These include Department for Science and Technology, Department of International Co-operation, Institute of Meteorology and Hydrology (IMH), Hydro-meteorological Network Centre, Hydro Meteorological Data Centre, and Hydro Meteorological Regional Centre. The National Office for Climate Change and Ozone Protection comes under the International Cooperation Department of HMS.
Although HMS was the designated focal point on Climate Change and Kyoto Protocol activities, other ministries are also working on similar issues. For example, the National Environmental Agency (NEA) under the Ministry of Science and Technology is also involved in environment protection and climate change. Ministry of Industry is also working on projects on environment and climate changes issues.
Recently in August 2002, the Government of Vietnam has restructured the ministries and decided to create a Ministry of Natural Resources and Environment. It would merge the HMS and part of Science and Technology Ministries. But at the time of the mission, there was still confusion about the structure of the new ministry. It is expected that the picture would be clear during September or early October 2002.
Mr. Hieu indicated the following major projects on climate change and CDM that were carried out or are being carried out:
i) CC: Train in 1994
ii) ALGAS during 1996-98
iii) Economics of GHG limitation during 1996-99
iv) National Communication to UNFCCC
v) UNIDO CDM study
vi) National Strategy Study on CDM, 2001-2002
vii) PREGA 2001-2003
viii) Landfill projects
The team informed Mr. Hieu about the tasks of the project to be carried out during the first phase of the project and Mr. Hieu explained the procedures normally followed in Viet Nam in respect of such projects. This involves getting approval from the relevant authorities, which in turn requires opinions of various ministries. Once accepted, the government would designate an office as the implementing agency of the project. He informed that already preliminary clearance has been granted by the government and for the project approvals from the Ministry of Finance and the Ministry of Planning and Investment would be required. The entire process could take one month.
It was suggested to Mr. Hieu that if required, an orientation workshop could be organized on CDM to prepare the stakeholders for better participation in the national workshop. Mr. Hieu informed the team that NOCCOP has planned to organize two awareness workshops – one in the North of Viet Nam and the other in the South of Viet Nam during September 2002. He also informed that a 3-day national workshop has been planned with the support of US Environment Protection Agency on Ozone protection and they intend to discuss about CDM on the third day of the workshop.
Mr. Hieu informed that the Prime Minister of Viet Nam has requested the President to ratify the KP and the President is considering the request. Mr. Hieu suggested a list of participants for the stakeholders’ meeting scheduled for August 27. The team requested him to include officials from the Institute of Energy and any NGO working on energy and environment.
b) National Environment Agency, 67 Nguyen Du Street, Ha Noi, Viet Nam
Dr. Truong Manh Tien, Deputy Director General, Tel: (84 4) 822 3196, Fax (84 4) 822 3189, Email: ;
Duong Thanh An, Policy & Legislation Division, Tel: (84-4) 822 4422, 942 15 74, Fax (84 4) 822 3189, Email: ,
The Deputy Director General of NEA expressed his keen desire to assist the project and considered that such capacity building projects on CDM are very much required in Viet Nam so that the country can extract the highest level of benefits from the mechanism. He suggested that NOCCOP and NEA would cooperate on this project. He also pointed out that given the limited time for the preliminary phase, the work should be initiated at the earliest.
c) Department of International Co-operation, Ministry of Industry, 54 Hai Ba Trung Street, Hoan Kien District, Ha Noi, Viet Nam
Dr. Tran Minh Huan, Director General, Tel: (84 4) 826 7988, Fax: (84 4) 826 5303, Mobile 09130 93046, Email:
Mr. Pham Thanh Tung, Official, Tel: (84 4) 825 9887, Fax: (84 4) 826 5303, Email:
Dr. Tran informed that his department is the focal point for the PREGA project. The project was initiated in early 2000 and his department has prepared a tentative work plan by the middle of August 2002. The plan has been sent to ADB, who is managing the project. The project plans:
i) To develop legal framework for CDM;
ii) to conduct survey on energy efficiency, rural energy supply and GHG reduction options;
iii) to prepare 10 candidates from the above three fields (he informed that Viet Nam has identified 12 projects);
iv) to realize five projects this year and seven projects in 2003;
v) to organize human resource capacity building through seminars in Viet Nam.
He indicated that Viet Nam wants to diversify its energy supply portfolio and would be willing to encourage cleaner projects but concrete policies and mechanisms have to be developed to address various issues including the issue of subsidy to energy. He also informed that Viet Nam has drafted a national energy policy but it has not yet been approved by the Prime Minister.
3.2 August 27, 2002
a) Stakeholders meeting, NOCCOP, Ha Noi
A stakeholders meeting was also conducted to discuss the project and to explore the requirements of capacity building on CDM. Although 17 experts were contacted for the stakeholders meeting, nine participated. The participants represented various organizations, namely, Ministry of Foreign Affairs, Ministry of Industry, Institute of Energy, National Environment Agency, Institute of Meteorology and Hydrology, Forest Inventory and Planning Institute, National Centre for Natural Science and Technology, and Center for Energy and Environment (NGO). The list of participants of the stakeholders meeting is presented in Table 1.
Table 1: List of participants of the stakeholders meeting held on August 27, 2002.
Sl. No. / Name / Organization1. / Dr. Dao Duc Tuan / Deputy Director, Department of International Co-operation, Hydro-Meteorological Service of Viet Nam
2. / Mr. Duong Thanh An / Policy and legislation Division, National Environment Agency
3. / Dr. Nguyen Van Tien / Project Co-ordinator, Vietnam Energy Efficient Lighting Project
4. / Mr. Nguyen Khac Hieu / Climate Change Coordinator, Vietnam National Office for Climate Change and Ozone Protection
5. / Mr. Phung Tuu Boi / Director, Forest Inventory and Planning Institute
6. / Mr. Ngo Duc Lam / Director, State Department for Inspection-Supervision of Industrial Safety Techniques, Ministry of Industry
7. / Dr. Pham Khanh Toan / Vice-Director, Institute of Energy
8. / Mr. Nguyen Tien Nguyen / Executive Director, Research Centre for Energy and Environment, Vietnam Union of Science & Technology Associations
9. / Mr. Nguyen Mong Cuong / Institute of Meteorology and Hydrology, HMS
10. / Mr. Vu Van Mien / Senior Expert, Department of International Organization, Ministry of Foreign Affairs
Participants were briefed about the project and the CDM in general. During the discussion, the following points were made:
i) the level of awareness about CDM is low both at the government level as well as at industry level. There is need for raising awareness through special campaigns. Participants suggested that some brochures should to be prepared in the local language and disseminated.
ii) The government has started to pay attention to CDM and the President has decided to ratify the Kyoto Protocol. The National Environment Agency is reviewing the legal framework to identify required changes that would facilitate CDM projects. NEA would also be drafting a Clean Air Act.
iii) The participants believed that there is need for capacity building projects on CDM in Viet Nam, as it is an emerging area and the country needs to be prepared and adequately geared to participate in the area.
iv) The participants expressed the view that as the time is limited for the Phase I of this project, good coordination would be required to ensure that the workshop produces good results. Preparatory works should start immediately and a team of experts should be constituted.
b) Stocktaking of past and ongoing projects
The past and ongoing activities on climate change and CDM were reviewed by consulting the documents made available by Mr. Hieu. Annex A3 provides a summary of these activities.
3.3 August 28, 2002
a) United Nations Development Programme, 25-29 Phan Boi Chau, Ha Noi,
Mrs. Nguyen Ngoc Ly, Senior Sustainable Development Advisor/ Head, Social Equity and Environmental Sustainability Unit, Tel: 84-4-942 1495, Ext. 249, Fax: 84-4-942 2267, Email:
Mrs Ly provided her insights about the activities in Viet Nam related to capacity building. When investment projects are to be developed, it is found that capacities are lacking. There is big gap in capacity building. She believes that energy is an area where the country is lagging and the Ministry of Industry is not taking the required initiatives. There is inadequate technology transfer. The global level of problem is little understood by the stakeholders and there is lack of communication from the government with the implementing agencies. She also noticed that often the implementing agency and the beneficiaries are different. For example, HMS is the implementing authority on Climate Change and related issues but the biggest beneficiaries are the Ministry of Industry, Ministry of Agriculture and Rural Development. These ministries are under-represented and lack initiatives. Another observation was that Ministry of Finance and Ministry of Planning and Investment are often absent in the process of implementation of projects and lack proper understanding. Unless these stakeholders are involved, no progress would be made. She emphasized that Viet Nam is different from other countries because the private sector is almost absent and depends on government initiatives.
She suggested that capacity building should put emphasis on the ability to attract investment. The implementing agency should develop capacity in this respect and not only for raising awareness.
She informed that UNDP is involved in two projects related to climate change:
i) Energy Efficiency for Public Lighting – a GEF funded project;
ii) Energy Efficiency in small and medium enterprises.
A third project on reduction of methane from rice field is awaiting approval of GEF and perhaps would be developed in the coming months.
The objectives of the two ongoing projects are:
i) to study the technical, resource and other barriers to energy efficiency improvement and recommend the approaches to be taken for their removal;
ii) to identify projects and prepare projects.
UNDP will be very happy to be kept informed and will provide any necessary cooperation.
b) Royal Netherlands Embassy, Daeha Office Tower, 6th Floor, 360 Kim Ma Street, Ba Dinh District, Ha Noi.
Mr. Nico Bakker, First Secretary, Water Management and Water Transport, Tel: 84 4 8315 650, Fax: 84-4 8315 655, Email:
Mrs. Do Thi Hong An, Economic and Commercial Assistant, Tel: 84 4 8315 650, Fax: 84-4 8315 655, Email:
The project was introduced to the officials and the roles of the participating institutes were highlighted. Two land-fill projects under CERUPT are being developed and there could be possible synergies with this project. The officials appreciated sharing the project information with them and promised any necessary assistance that may be required from them. The embassy would be very happy to be kept informed about the progress of the project.