Nguyễn Thị Hải Yến, PhD, Germany 5 July, 2016

Summary:

After three months of rapid survey, the Vietnamese Government has reported that the toxic substances causing mass fish death are cyanide, phenol and ferrous-compounds from untreated waste water from the Steel Factory of Formosa. The untreated water waste from the Steel Factory is directly released into the sea. The Formosa’s representatives have apologized and accepted to pay the Vietnamese government the amount of $500 million USD in compensation.

According to the Minister of Natural Resources and Environment, Mr. Tran Hong Ha, there was 400 hectares of coral reef damage, and the area 209 km long and 30 km wide along the coastal zone of four provinces were affected, namely Ha Tinh, Quang Binh, Quảng Trị and Thua thien Hue. Data and information from UNEP shows that coastal ecosystems in Center of Vietnam are evaluated as medium in term of biodiversity and productivity.

A comprehensive research which summarized ecological values of 10 different types of ecosystems from 300 studied areas worldwide has been done. The ecological values of an ecosystem are divided into four groups, namely provisioning services, regulating services, habitat services and culture services.

The coastal and marine ecosystems in Vietnam are evaluated as medium in terms of biodiversity and productivity. Based on the results from comprehensive research which summarized the ecological values of marine, fresh water and terrestrial ecosystems, ranging from poor to high biodiversity, this paper presents the ecosystem values of the impacted coastal and marine ecosystems in the four aforementioned provinces in central Vietnam.

This paper assesses the loss of ecological values caused by Formosa on 8 ecosystems: Coral reefs, coastal water, bottom coastal, seagrass, mangrove forest, muddy and sandy ecosystems and aquaculture land in the central coast of Vietnam. The loss of these 8 ecosystems is calculated for three classes world marine classes, namely coral reefs, coastal system and coastal wetland.

Supposed that coral reefs require 50 years to rehabilitate and other ecosystems would be rehabilitated after 40 years (referred to Minamata case study). The marine ecological loss in center of Vietnam is initially estimated approximately US$1,000 billion. Of which, 7 billion lost from 400 hectare of coral reef damage (400 hectares is reported by Vietnam government), $ 800 billion from coastal bottom ecosystem (a hug amount because of large coastal area damaged), $ 12 billion from seagrass, $ 11 billion from mangrove and $ 154 billion from muddy flat ecosystem.

This paper is divided into five parts.

Part 1: Providing information and data of coastal and marine ecosystems in overall in Vietnam and especially in four central provinces (Ha Tĩnh, Quang Binh, Quang Tri and Thua Thien Hue), which are seriously affected by the environmental disaster from Forsoma factory’s chemical discharged into the sea. This information and data can also be used for estimating the loss of coastal and marine ecosystem services in Part 3.

Part 2: Presenting approach and method to evaluate ecosystem services that will be used for estimating loss of ecosystem services in Part 3.

Part 3: Estimating loss of coastal and marine ecosystems in four central provinces aims to provide data for claiming process. It also provides information on serious loss of coastal and marine ecosystems from environmental disaster caused by Formosa. 

Part 4: Pointing out some suggestions on how to use and allocate obtained claiming amount.

Part 5: Discussion and conclusion.

1. DISTRIBUTION AND VALUE OF MANGROVE FORESTS, SEAGRASS AND CORAL REEF IN VIETNAM

1.1 Marine biodiversity in Vietnam

Figure 1 presents the Shannon's Index (SI) of marine biodiversity in Southeast Asia (source of UNEP). Due to the natural geography, the SI of Vietnam’s ecology is naturally much lower than SI of the Philippines and Indonesia. The coastal area stretching from Quảng Ngãi to the northern Pole Quảng Ninh with extension to Hoang Sa (Pattle Island), and the area of southern pole Kien Giang has SI ranges between 5.4 and 6.5. The SI from Quảng Ngãi to Vũng Tàu is within the same range, but the next area in the open sea is much lower in SI (4.3 – 5.4). The coastal zone associated with Mekong Delta has SI ratings between 3.4 and 4.3 [1]

 
Figure 1: Map of Shannon's Index of Biodiversity in Southeast Asia in 2014 (Source by UNEP) 

Vietnam has more than 3,290 km of coastline, however the Mangrove forest in Vietnam is low productivity compared to other neighboring countries. Figure 2 shows the higher productivity of Mangrove forest in Vietnam locating in coastal zone of Mekong Delta. Productivity of the Mangrove forest in Mekong Delta and in the region lying between Nghe An and Da Nang is seriously impacted by mentioned environmental disaster of Formosa. Vung Ang is higher than the other regions in Vietnam, but is still evaluated as low level on the global scale. There are 35 true species and about 40 associated species of Mangrove recorded in Vietnam [2]. There are 30,974 hectares of coastal wetland in six provinces in the Northern center of Vietnam. From North to South, these provinces are Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue. Of which, there are 1,885 ha of Mangrove forest, 2,505 ha of aquacultural land, and 26,584 ha of mudflat [3].

Figure 2: Map of Mangrove’s productivity in Vietnam and neighboring countries 2014 (Source by UNEP) [4]

Seagrass is different from seaweed as it is a plant having a root, stem and leaves. Seagrass plays an important function of a marine ecosystem. Seagrass usually distributes in the back of coral reefs, therefore, the seagrass ecosystem is the preferable habitat for many fish species and other marine living things. The bacteria communities in seagrass play an important role as the decomposer removing nutrient load run off from land to avoid pollution over the coral reef. Seagrass grows rapidly and has high organic productivity, serving as food for herbivores like urchins, mollusks, fish, and sea turtles, as well as producing large quantities of detrital material, which serves as another food source to adjacent ecosystems. The dense leaves and roots act as a buffer zone of coastline, trapping sediment and reducing erosion while providing attachment for epiphytes and shelter for a variety of organisms [5, 6].

Seagrass in Vietnam is scattered in sandy substrates or sand with little silt, in the high insensitive sunlight in areas less than 6 meters deep. Species richness of seagrasses is low. Figure 3 shows the highest species richness of 12- 15 in the Philippine coastal zones. In the Northern center of Vietnam’s coastal zone, the species richness is just 3-6, the higher 7-9 zone is located in coastal zone in the Southern center between Ninh Thuan and Phu Yen. The coastal zone in Mekong Delta is not a suitable habitat for seagrass due to high turbidity (7). In Vietnam 16 species of seagrass have been recorded. There are 2,170 ha of seagrass distributing in the impacted coastal zones along the four provinces as mentioned above (Table 1) (8).

Figure 3: Distribution (in 2015) and species richness (in 2003) of seagrass ecosystems in Vietnam (Source by UNEP) [7]. 

Table 1: Distributions of sea-grass in four impacted provinces (area and names of locations)

1.4 Coral reefs

Coral reefs are unique ecosystems as they are built on stone-limestone substrates and have symbiosis with algal zooxanthellae, except corals in deep sea. Coral reef usually distribute in coastal area less than 30 meters deep, where the sunlight is strong enough for zooxanthellae photosynthesis. Coral are very susceptible to environmental conditions including light levels, nutrients, and temperature outside the range that they normally experience. Such changes affect the coral–algal symbiosis and, ultimately, result in calcification of the entire reef community. The death of key organisms on the reef or the shift from an autotrophic to a heterotrophic (suspension/detritus-feeding) community changes the dominant ecological process from calcium carbonate deposition to erosion [9].

Figure 4 maps out the distribution of coral reefs in Vietnam and in four impacted provinces [10].
(Source by UNEP 2015)

According to UNEP there are 284,300 km2 of coral reefs worldwide. The largest contributors are Indonesia and the Philippines with more than 20,000 km2 each. Vietnam is the 35th contributor with 1,270 km2 and China contributes 1,510 km2 [11].

There are 800 coral species worldwide. In Vietnam 340 coral species have been recorded that distribute from the North to the South. The high density and species richness are found in Nha Trang Bay, Spratly Island/Truong Sa, Pattle Island/Hoang Sa. Coral reefs are habitats for more than two thousand marine living things, including 400 coral reef fish and many of these fish are high commercial value fish such as Grouper, Sea cucumber, giant clams and so on. In Hạ Long Bay 205 hard coral and 27 soft coral species have been recorded. In Con Dao area, 219 coral species and 160 associated fish species have been recorded [12].

Coral reef ecosystems are the most diversity and largest contributor of ecosystem service values of the planet. A healthy coral reef ecosystem brings 15 tons of fish and seafood per square km per year. The Economisc of Ecosystems and Biodieversity (TEEB) of coral reef is estimated $1.25 million USD/ha/year including the value of tourist, coastal protection, biodiversity and fishery resource protection [13].

2. APROACH AND METHODS TO EVALUATE ECONOMIC LOSS OF COASTAL MARINE ECOSYSTEMS

After reviewing and analyzing data, information and results of 320 studies conducted in 300 different areas, scientists from America, European, British, Australia and UNEP and European Research Institute for Natural Resources have been classifying these 300 study locations into 10 types of ecosystems (Table 2) [14]. The 20 parameters of four groups are categorized based on 90 sub-parameters that have been used in 320 studies (Table 3).

The average, maximum and minimum and standard deviation values for each of 10 types of ecosystems are presented in Table 2. Four coastal and marine ecosystems are highlighted in red. This Table will be used to discuss and estimate the loss of coastal and marine ecosystems located in coastal zone along four central provinces that were seriously impacted by the catastrophe of Formosa Industry’s sewage in Part 3.

Table 2: Economic Values of 10 types of global ecosystems (International USD = Int.$/ha/year: Int.$ using appropriate purchasing power parity (PPP) conversion factors relative to the year 2007; 1 Int.$ = 1 USD)

The average ecological value of each 20 parameters of 4 groups of 10 ecosystems are presented in Table 3. According to Table 3, we have:   

Open sea ecosystem which contributes total amount about $491 per hectare per year, the lowest contributor among four coastal and marine ecosystems. The contributing values by four groups of parameters in order from group 1 to group 4 are: $491 = 102 + 65 + 5 + 315.

Coral reef ecosystems is the largest contributor with total values up to $352,249 per hectare per year:  $352,249 = 55,724 + 171,478 + 16,210 + 108,837.

Coastal ecosystem contributes $28,917 per hectare per year: $28,917 = 2,396 + 25,847 + 375 + 300.

Coastal wetland ecosystem is the second largest contributor with approximately $193,845 per hectare per year: $193,845 = 2,998 + 175,515 + 17,138 + 2,193

Noticeably, the second group of parameters, regulating services of coral reef contributes $171,478 per hectare yearly. Parameter 12, coastal erosion prevention, contributes $153,214 (89.3%). One reviewing paper shows that 97% energy of wave attack to coastline, they also found that most of the wave energy (86 percent) is attenuated by the reef crest [15]. Between 1996 and 2004, the Indonesian Government had provided $79,667 million for maintaining recreation areas due to of coastal erosion [16]. Saves cost and maintenance of breakwaters: Breakwaters offer similar protection against erosion, but they cost up to $15 million per km to build. Breakwaters also require repair. In contrast, the protection offered by coral reefs is free, and a healthy reef repairs itself [17]. The median cost for building artificial breakwaters is $19,791 per meter, compared to $1,290 per meter for coral reef restoration projects. In the Caribbean, the shoreline protection services provided by coral reefs are valued at up to $2.2 billion annually [18]. Standing at the fifth position in the world, 9 million Vietnamese have been receiving risk-reduction benefits from coral reefs preventing coastal erosion [19].

Similarly, parameter 19: Recreation in Table 3, coral reefs contribute $96,302. With Contingent Valuation and Willingness to Pay methods, researchers can translate the indirect market value as recreation to direct market value to assess ecosystem values, including coral reef value. Every year, millions of scuba divers and snorkelers visit coral reefs to enjoy their abundant sea life. One estimate places the total global value of coral-reef based recreation and tourism at $9.6 billion of the total global net benefit of coral reefs [20]. There are about 200,000 divers and more than 3 million snorkelers who enjoy the Hawaiian reefs every year. Furthermore, 2002 estimates show that there are over 100 dive and snorkeling operators registered in Hawaii who earn between $50 to $60 million per annum [21].

Parameter 11: waste treatment in Table 3 indicates that coastal wetlands contribute up to $162,125 million. Wetlands remove or transform pollutants through physical, chemical, and biological processes. For example, the Congaree Bottomland Hardwood Swamp in South Carolina removes a quantity of pollutants from watershed water resources equivalent to that which would be removed by a $5 million water treatment plant (USEPA 1995). In another case, scientists estimate that a 2,500 acres of wetland in Georgia saves $1 million in water pollution control costs annually [22]. Coastal Wetlands filter chemicals and sediment out of water before it is discharged into the ocean. This paper reports on estimates of cost savings from using coastal wetlands for substitute treatment in Louisiana, U.S.A. Estimates of discounted cost savings ranged from $785 to $34,700 per acre of wetlands used for treatment [23]. Based on the cost of constructing a sewage treatment plant, the value of biofilter functions of mangroves has been estimated at $1,193 per hectare per year to $5,820 per hectare per year depending on types and extent of mangroves [24].

Mangrove forest can be able to improve water quality by increasing DO (dissolve oxygen) by 32.39%, while reducing phosphate, ammonia, and nitrate by 88.23%, 73.77%, and 64.28% respectively. Participatory Environmental Valuation (PEV), Laem Phak Bia mangrove ecosystem 8,819.89 Bath per hectare per year.

Table 3: Ecological values of 10 types of ecosystems by 20 parameters (Int.$=/hectare/year)

Information and data presented in Part 1 indicates that coastal and marine ecosystems in Vietnam and particularly in coastal zone along four impacted provinces are at medium level of the worldwide. The average values presented in Table 3 are used for estimating ecological values for coastal and marine ecosystems in Vietnam and in four targeted provinces. 22 parameters and their values presented in Table 3 are important information for justice process of claiming as well as compensation allocation in detail.

3. ESTIMATING LOSS OF ECONOMIC ECOLOGICAL VALUE CAUSED BY FORMOSA VUNG ANG IN FOUR CENTRAL PROVINCES

Coral reef ecosystems, seagrass meadows and mangrove forests are also adversely affected by changes in water quality. Sub-lethal effects of environmental changes are reflected in impaired reproduction and recruitment of key species, eventually resulting in a cascade of losses within the ecosystem [26]. According to news from Vietnam Government, on 30 June, 2016 the Minister of Environment and Natural Resources, Mr. Tran Hong Ha, reported that the disaster is caused by toxins of cyanide and phenol and consequently hundred tons of fish and 400 ha (50% area) coral reefs were killed so far. Although, Mr. Tran Hong Ha reported that mangrove forests are not impacted, local people report mangrove forest died after some weeks occurring the disaster. Seagrass beds in Vietnam are not dense and quite scatted distribution, and so their damages are possibly ignored. Therefore, in this paper the estimating loss of ecological values are based on the areas of mangrove and seagrass published by scientists and or relevant authorities.

The long-term impacts of toxic substances on coastal and marine ecosystems haven been evaluated and published in many studies worldwide. The area of coral reef death will increase and the estimation of loss of ecological services in this paper will only base on the initial data of 400 ha of coral reef.

According to information in Table 3, Part 2, one hectare of coral reefs in one year contributes $352,249 = 55,724 + 171,478 + 16,210 + 108,837 corresponding to four groups of 22 parameters. The recovery of coral reef is low and slow; it may not even recover or may take decades to recover. Therefore, the estimating loss of coral reefs will apply for 50 years. The result presented in Point 2 of Table 4.

Based on the decision of Vietnam Government on fishing certificate for the catch which have been fished at the sea out of 20 miles (37.04 km) from shoreline is safe, therefore the open sea ecosystem will not be taken into account for estimating loss.  The coastal ecosystems including water column and bottom sandy, muddy ecosystems will be applied for the area within 37.04 km wide from coastline. The length of the disaster is reported up to 250 km and stretches along coastal zone of four mentioned provinces. Therefore, total area of coastal zone under disaster is:  30.04 km (width) x 250 km (length) = 9,260 km2 (=926,000 hectare). These 926,000 hectare will be used to eatimate the loss for coastal ecosystem with 1 hectare per year: $28,917 = 2,396 + 25,847 + 375 + 300. However due to the dynamic of ocean flows and waves in water collumn, the loss of coastal ecosystem will be calculated for one year only. The result presented in Point 3.1 of Table 4.  The bottom coastal ecosystems, particularly sandy and muddy area, which are excluded form the cover areas of 800 hectare of coral reefs (800 hectare of coral reefs are given by Vietnam goverment) and 2,170 ha seagrass: 926,000 hectare – 800 hectare coral – 2,170 hectare seagrass = 923,030 hectares. Based on Minamita, the loss of bottom coastal ecosystem will be estimated for 30 years. The result presented in Point 3.2 of Table 4.

Table 1 shows 2,170 ha of seagrass under the disaster region. The estimating loss of seagrass ecosystem will apply data and approach presented in Table 3 for coastal wetland ecosystem: $193,864 = 2,998 + 175,515 + 17,138 + 2,193 per hectare per year. Similar to bottom coastal ecosystem above, the loss of seagrass ecosystem will apply for 30 years. The result presented in Point 4.1 of Table 4.

30,970 hectare of coastal wetlands in Part 1.2 along the coast in disaster region, of which 1,885 hectare of magrove forest, 2,505 hectare of aquaculture, and 26,584 hectare of muddy flat, and with 30 years recovery expectation, the results of losses are in order estimated in Point 4.2, 4.3 và 4.4 Table 4.

Table 4. Losses of coastal and marine ecologial values in four central provinces caused by Formosa Vũng Áng (Unit: US$)

Note: (NA: not applicable)

4. ALLOCATING AND MANAGING COMPENSATION AMOUNT

4.1 Allocating

+ The amount of $70 billion in Column (1) Table 4, the ecological value in term of provisioning services (direct market value). A part of this amount must be allocated for fishermen and fishtraders for their families living expense and their children studies for 50 years, covering at least 3 generations This is based off a suggestion from Layer Le Van Luan and Tinh Moc Thuong [27, 28]. Another part of this amount must be used for research programs aiming at rehalibitating marine medical rescources.

The losses in columns (2) (3) (4) of table 4 are indirect market values of these coastal and marine ecosystems.

+ The amount of $893 billion in Column 2 of Table 4 represents the loss of ecological functions of these ecosystems. The ecological functions of an ecosystem have been discussed in Section 2. The marine and coastal ecosystems are cleared and or seriously damaged after disaster. Therefore they can notable to provive diverse and relevant habitats for different living things to maintain biodiversity. Unhealthy coral reefs and mangrove forest, the natural protection belt for cosat zone is not functioning. The coast and ist communities would be more threatened caused by storm and erosion. People have to pay a lot for coastal erosion prevention.Therefore this compensation amount must be used for research programs and rehabilitation projects.

+ The amount of $27 billion in Column 3 of Table 4 represents the loss due to no more breeding and nursing grounds for many species of sealife. This amount must be used for restoring and rehabilitating damaged habitats and nursing grounds to maintain the genetypes and genepool of the impacted sealife.

+ The amount of more than $12 billion in Column 4 of Table 4 will be allocated groups of people who engage in tourism activities and associated tourism activities.

4.2 Management

• This compensation should be under the management of the representatives of the groups of people who were impacted by this disaster including fishermen, fish traders, fish processors, tourist operators and tourist service supporters, researchers and so on.


• This group must develop a strategy and plan for both implementation activities and finiancial budget to ensure the lives of vulnerable people and the rehabilitation of damaged ecosystems.


• Strategy and implementation plan given by this groups must be agreed and monitored by the people.

5. CONCLUSIONS

• The loss of coastal and marine ecosystem services is severe 1004,530,701,198 ($1 trillion). In reality, no amount of compensation can truly replace the losses and time endured, Formorsa must be brought to court and pay for this loss.


• This estimate is only an intitial calculation, the recovery of the coral reef’s dead area will extend several years and may never can be the same again. The Vietnamese Government must immediately assess and evaluate the long-term impact.


• Vietnamese Government must report all scientific and legal investigations for the public to assess the disaster and their performance in this disaster.


• Formosa and VN Government must disclose the list and scientific names of all chemicals and substances Formosa has been using (not their mysterious commercial names).


• Continue not providing Formosa list of chemicals, and ignoring the true economical value loss of mangrove forest and seagrass mean Vietnamese government has failed to protect and preserve national environmental resources, failed to supervise and control Formosa’s waste management. It is time to call for International Environment Organizations' support (such as UNEP and Greenpeace...) to put pressure on the Vietnamese Government to act responsibly, transparently and to enforce national and international laws to protect the people and environment.

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