Cost Benefit Analysis of the Exploitation of Several Important Natural Resources in the Coastal Zone in Binh Thuan Province

Abstract

The cost benefit analysis (CBA) is a method of identifying and comparing the costs and benefits of a program, policy, or project to evaluate a project that increases or decreases economic welfare of society. CBA has the role of providing information for: 1/ Decide whether to invest in the project; 2/ Provide a basis for comparing options for selecting a project. The indicator used for calculation include: - Net Present Value, Net Present Value (NPV) is the net present value of the net benefit over the years converted to the monetary value of the base year. According to the discount rate (r), and the lifetime of the project – called t (years) to convert the cash flow and cost base year. If NPV value> 0, the project will be done, take back profit. If the NPV <0, project should not be done because it will make environmental damage, human health in society is more than economic benefit that prevention. According to calculation, investing tourist projects, fisheries exploitation projects, and wind electricity construction have positive NPV. Given that the Titan mining project has sound of NPV, the damage will hurt the society more than the business benefits of selling the product.
 The coastal resources of Binh Thuan Province are divided into five outstanding groups, of which four are: (1) Titan mineral resources; (2) tourism resources; (3) fishery resources; (4) Energy resources and (5) Sub-categories include resources such as forest resources, land resources and water resources. In order to assess the value of specific types of resources in Binh Thuan's coastal zone, it is possible to select three types of resources to calculate the cost of benefits in the exploitation process for socio-economic development, namely tourism resource exploitation, mineral resources exploitation and exploitation of aquatic resources. The results show that the exploitation of tourism resources and exploitation of aquatic resources has the NPV> 0 value, while exploiting NPV <0