WATER ALLOCATION POLICIES FOR THE DONG NAI RIVER BASIN IN VIETNAM: AN INTEGRATED PERSPECTIVE
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Recent water sector reforms, increased scarcity and vulnerability of existing water
resources, combined with declining public funding available for large-scale infrastructure
investment in the sector have led to an increased awareness by the Government of
Vietnam for the need to analyze water resource allocation and use in an integrated
fashion, at the basin scale, and from an economic efficiency perspective. This paper
presents the development, application, and results from an integrated economic-hydrologic
river basin model for the Dong Nai River Basin in southern Vietnam that
attempts to address these issues. The model framework takes into account the sectoral
structure of water users (agriculture, industry, hydropower, households, and the
environment), the location of water-using regions, and the institutions for water allocation
in the basin. Water benefit functions are developed for the major water uses subject to
physical, system control, and policy constraints. Based on this modeling framework,
policies that can affect water allocation and use at the basin level, including both basin-specific
and general macroeconomic policies, are analyzed.