Balancing costs and benefits in Vietnam's hydropower industry: A strategic proposal

Purpose: One of the main strategic targets in the national power development plan of Vietnam is to give priority to hydropower. However, there is evidence that the most “at risk” in Vietnamese society have, to date, broadly failed to benefit from hydropower development but rather have become more vulnerable. This paper aims to broaden the perspective of decision makers (government agencies, investors and banks) in the hydropower industry regarding the environmental and social impacts of unrestrained development and the critical need to not only reduce disaster risk for communities but also provide a sustainable model for Vietnam’s energy demand. Design/methodology/approach: This position paper presents a critique of public policy in Vietnam related to hydropower industry, undertaken alongside an analysis of socio-economic community resilience and disaster risk reduction literature. Findings: Small hydropower investment must be delayed until measures are put in place to ensure that multi-stakeholder risk is a central component of the investment dialogue. Current pricing policies are not aligned with the hydropower development management, and this erects barriers to environmentally and socially conscious decision-making. Practical implications: This paper suggests that the development of small hydropower projects must be curtailed until new measures are put in place. This has practical implications for investors, policy makers and residents of affected areas. The authors argue for a significant shift in government strategy toward building resilience as opposed to growth and profit at any cost. Social implications: Conscious of Vietnam’s energy demands and development goals, this paper investigates the context of increasing disaster risk and ecological pressures, as well as social injustice relating to the hydropower industry. This kind of analysis can support future efforts to reduce disaster risk and the vulnerability of marginalized groups in Vietnam. Originality/value: The authors present a comprehensive review of Vietnamese hydropower from a disaster resilience perspective and provide analysis that will be useful in further research in this emerging area.