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COVER STORY

of electronic tax procedures and payments greater than 6 meters per second at an
in 2020 and the introduction of the new altitude of 65 meters above sea level,
Labor Code in 2021, which benefits both which represents the equivalent of 512
employees and employers, are a couple of GW of capacity, together with a high
examples,” he said. “The government is also solar irradiance of 1,387 - 1,534 Kwh /
putting a lot of investment into improving KWp / year in the central highlands and
infrastructure, with better roads, express- southern and south-central coastal regions.
ways, and waterway transport networks, These benefits are reflected in the large
which in turn benefit foreign investment.” number of wind and solar power projects
In addition, Vietnam’s advantages in already taking place. The cost of renewable
attracting FDI are equally valid in the energy construction and installation is
realm of sustainable development. “These also declining, making many of these Sustainability
include its strategic geographical location, projects more cost effective. This will help
strong GDP growth, participation in various ensure the economic benefit of investing projects in Vietnam
free trade agreements, abundant workforce, in sustainable projects, thereby attracting should align with
increasing purchasing power, and political more foreign investors. international standards
stability, to name just a few,” he said. On the business side, Ms. Le Thi Ngoc
Mr. Evans agreed that Vietnam holds My, Head of Sustainability at Heineken and ensure they are of
a number of advantages for sustainability Vietnam, told VET that Covid-19 had an genuine benefit to the
projects. For example, in the renewable unprecedented impact but Vietnam’s econ- country’s green
energy sector, 39 per cent of its total land omy is bouncing back and the country’s commitments. With
area has an average annual wind speed recovery is set to gain momentum this
year. “The government has also made international recognition,
strong commitments toward sustainability, corporates in Vietnam will
such as net zero emissions by 2050 and an ultimately be able to access
end to deforestation by 2030,” she added.
“Vietnam has huge potential in renewable more global investment. To
energy, including hydroelectricity, wind, assist with this, authorities
solar, and biomass, and remains an attrac- should look to provide the
tive destination for FDI.” most updated international
“We are very grateful for the support
from the Vietnamese Government helping standards and
us achieve our ambition of building our requirements with regard
first carbon neutral factory,” said Mr. to sustainable development
Carsten Rasmussen, Chief Operations Offi-
FDI can be made in cer at the Lego Group. “Their plans to and global trends to the
different ways. invest in expanding renewable energy local business sector, so
Investing in a full project infrastructure and adopting a collaborative they will be aware of the
is one of the most common approach to working with foreign compa- standards global investors
nies seeking to make high-quality invest-
ways, but other ways are ments were among the factors in our deci- seek. The legal framework
also possible. For instance, sion to build here.” needs to be reviewed and
However, as with many other developing
technology transfer is a countries, Vietnam also faces certain chal- updated to make sure that it
process of passing on lenges when it comes to FDI. Mr. Evans is not in conflict with
technologies, knowledge, noted that the legal framework relating to international best practices
and implementation sustainable development needs to be further and to remove any
methods. In technology improved upon in terms of consistency, unnecessary barriers for
especially environmental taxes and con-
transfer for sustainable ditions to encourage investment in sus- businesses and investors.”
development, technologies tainable development. “Moreover, for sus- MR. TIM EVANS,
must be eco-friendly, tainable development to really see the HSBC Vietnam
increases the government hopes for will
clean, green, and need better awareness of and substantial
sustainable. Existing investment in technology,” he added. “Many Intellectual property (IP) and cyber security
Vietnamese companies in smaller local corporates still don’t have are other grey areas. “The Vietnamese
both the public and private awareness about the importance of sus- Government is working tirelessly to sort
tainability, which affects their way of doing
out these issues and trying to make the
sectors should consider business and limits their access to green country more suitable for FDI, especially
the possibility of obtaining foreign investment opportunities.” in sustainable development projects,” he
According to Dr. George, one of the
technology transfer for greatest challenges for FDI in Vietnam is said. “Regardless of these challenges, the
sustainable FDI.” corruption and bureaucracy. Licensing to amazing volume of FDI in Vietnam is evi-
dence of the country’s favorable conditions
start a business, gain approval for con- and the government’s continuous efforts
DR. MAJO GEORGE, struction, secure electricity supply, and in making the country more investment-
Lecturer, RMIT University Vietnam register property can take a long time. friendly for foreign companies.” %

14 | VIETNAM ECONOMIC TIMES | APRIL 2022 www.en.vneconomy.vn