Sustainable Asset Valuation (SAVi) of Mangroves in Vietnam
An economic valuation of mangroves for flood protection and erosion control in the DEEP C Industrial Zone
The study assesses the economic, social, and environmental benefits of planting mangroves in Vietnam's DEEP C Industrial Zone. It evaluates two nature-based infrastructure (NBI) scenarios—natural soil accumulation and soil transfer—to reduce erosion and protect industrial land. The study quantifies avoided flood damage, increased land value, carbon storage, and co-benefits such as fisheries and jobs, demonstrating mangrove planting as a cost-effective climate adaptation strategy.
Key Findings
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Planting mangroves in the DEEP C Industrial Zone can help avoid up to VND 129.8 billion in flood damage over 26 years. Mangroves also play a key role in controlling coastal erosion and complement sea dikes by providing long-term, nature-based protection, especially under high climate risk scenarios.
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Mangrove planting is economically viable, delivering up to VND 3.42 in benefits for every VND 1 invested. The strongest returns are achieved when mangroves are planted in high-growth areas, demonstrating a strong business case for NBI in industrial coastal zones.
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In addition to reducing flood and erosion risks, mangrove planting provides important social and ecological co-benefits such as supporting biodiversity, enhancing fisheries and tourism, increasing property values, and creating green jobs that contribute to climate-resilient development.
Vietnam’s northern coastal region, including the DEEP C Industrial Zone in Hai Phong, faces growing threats from sea level rise, storm surges, and coastal erosion. These impacts endanger critical economic infrastructure and the livelihoods of over 12,000 workers and residents. While traditional grey infrastructure, such as sea dikes, is already in place, additional nature-based solutions are needed to strengthen long-term climate resilience.
To address these risks, DEEP C and its partners are planting a 70-hectare mangrove belt along the Nam Dinh Vu Sea dike. This intervention is designed primarily to reduce erosion and storm surge impacts, while also delivering benefits for biodiversity, fisheries, and nearby communities. It contributes to the transformation of DEEP C into a more sustainable, eco-industrial zone aligned with international standards.
This SAVi assessment evaluates two implementation pathways: the Soil Accumulation scenario, which relies on natural sediment buildup before planting, and the Soil Transfer scenario, which involves placing soil at the site to enable earlier planting. Both are modelled under varying assumptions for economic growth and mangrove efficiency.
The valuation examined the extent to which mangroves can reduce flood damage, boost local fisheries and tourism, increase property values, and lower maintenance costs for the sea dike.
The results show that mangrove planting delivers strong benefits, particularly in high-growth, high-risk scenarios. For every VND 1 invested, the Soil Accumulation scenario yields up to VND 3.42 in return, resulting in net benefits of over VND 284 billion (USD 11.2 million).
Benefits include avoided flood damage, increased property values, improved public revenues, and environmental gains such as carbon storage, reduced dike maintenance, and improved erosion control along the coastline.
Ultimately, the study confirms that integrating mangrove planting into coastal infrastructure planning is a cost-effective strategy for reducing climate risks, controlling erosion, protecting economic assets, and delivering long-term social and environmental value.
Participating experts
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