STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI

This report presents a pilot Strategic Environmental Assessment (SEA) of hydropower development in Viet Nam, conducted by the Stockholm Environment Institute (SEI) for the Ministry of Industry and Trade (MoIT). The study evaluates the hydropower plans within the context of Power Development Plan (PDP) VI, comparing the base scenario against alternatives where hydropower is replaced by thermal power. The SEA concludes that while hydropower is the least-cost option for meeting energy demands, current mitigation measures for social and environmental impacts are inadequate. It proposes a comprehensive mitigation framework based on international best practices, including the Impoverishment, Risk and Reconstruction (IRR) model for displaced people and community forestry for the zones of influence. The report recommends the full institutionalization of SEA into the PDP VII process to internalize external costs and ensure sustainable development.

• The level of hydropower development planned in Power Development Plan (PDP) VI is the most economically viable option for meeting Viet Nam's future power needs, even when social and environmental costs are internalized, as alternative generation sources carry higher costs.
• Current approaches to social and environmental mitigation in hydropower development are insufficient; however, more effective measures can be implemented and costed without compromising the financial or economic viability of the schemes.
• Hydropower development can act as a catalyst for economic growth in remote, impoverished areas by improving access to external markets, creating new livelihood opportunities, and enhancing service provision, provided that specific planning measures are adopted.
• Resettlement of local communities is an inevitable consequence of hydropower development, and past mitigation efforts in Viet Nam have been inadequate compared to international standards. The report proposes a mitigation package based on the Impoverishment, Risk and Reconstruction (IRR) model to ensure displaced people are better off after resettlement.
• Hydropower reservoirs offer significant potential for multipurpose benefits, including flood protection and improved dry season water availability, but these are currently underutilized because management regimes primarily focus on maximizing power generation.
• Hydropower development poses significant risks to ecosystem integrity, specifically regarding forest resources, aquatic resources, and biodiversity. These risks can be reduced through anticipatory mitigation measures and closer coordination with forestry and fisheries agencies.
• Certain hydropower schemes are identified as particularly problematic due to high social and environmental risks, specifically Bac Me, Ban Chat, Trung Son, and Lai Chau, all located in northern Viet Nam where poverty is high and ethnic minority populations are prevalent.
• The report recommends the institutionalization of SEA as an integral part of the Power Development Planning (PDP) system, moving from a project-level EIA approach to a strategic, decision-oriented process for PDP VII.
• To mitigate unsustainable pressure on forest resources in the Zones of Influence (ZoI), the report proposes a community forest management (CFM) strategy, where forest land is handed over to community control.
• The report suggests that Viet Nam should pursue grid interconnections with Laos, as hydropower generation in Laos typically results in lower environmental and social impacts per kWh due to lower population densities.

APA

Stockholm Environment Institute (2009). STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI. https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf

Chicago

Stockholm Environment Institute. STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI. 2009. https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI |date=January 2009 |url=https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2009strategic, author = {{Stockholm Environment Institute}}, title = {{STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE HYDROPOWER MASTER PLAN IN THE CONTEXT OF THE POWER DEVELOPMENT PLAN VI}}, institution = {Stockholm Environment Institute}, year = {2009}, month = jan, url = {https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/sea_hydropower_vietnam_full%20report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }