Page 10 - Layout 1

Congratulations on Norwegian Constitution Day
COVER STORY

real estate developers. For example, the
Nam Cau Kien eco-industrial park and
others have been developed within the
framework of the “Deploying eco-industrial
parks in Vietnam under the approach of
the Global Ecological Industrial Park Pro-
gram” project.
In addition, the management boards
of industrial parks in Vietnam have a pos-
itive view of the role of environmental
protection in attracting FDI. Environmental
protection was often seen in the past as
simply increasing costs, so attracted little
in the way of attention from most investors.
However, many industrial parks now give
greater focus to screening and assessing
the environmental impact of projects to
ensure they are environmentally friendly.

EMBRACING NEW TRENDS
FDI attraction into green economic sec-
tors and activities as well as the shift
towards green economic development is
not only due to pressure from international
import and export markets and new gen-
eration free trade agreements (FTAs) but
GEARING UP FOR
G E A R I N G U P F O R also from the needs of the domestic market.
The trend towards sustainable consumption
in Vietnam has pushed up demand for
G R E E N T R A N S I T I O N green products at a much higher pace than
GREEN TRANSITION
prior to the pandemic.
The interest in green development along
with the appearance of more foreign investors
FDI has begun to shift into green projects but Vietnam must still has also made Vietnamese enterprises more
make a major effort in its readiness to promote the effectiveness motivated to invest in green economic sectors
of green FDI projects. and activities. Many have conducted research
PHOTO: VIET TUAN standards in export markets but also be
while others have paid more regard to safe
MR. NGUYEN ANH DUONG, Head of Analysis Department, and invested in circular economy models,
Central Institute for Economic Management. and sustainable production to not only meet
accepted by local consumers.
However, Vietnam still has much to
o meet standards in economic devel- Natural Gas (LNG)-to-Power Project from do to boost the effectiveness of investment
opment around the world and to Singapore, with total registered capital of projects, including foreign projects, towards
T adapt to the difficulties posed by $4 billion, and the Long An I & II Power a green economy and green growth. Even
the Covid-19 pandemic, Vietnam has shown Plants from Singapore, with total registered before Covid-19, Vietnam had encountered
its determination to promote the devel- capital of over $3.1 billion. According to obstacles from the impact of FDI projects
opment of a green economy. Under Deci- data from the Ministry of Planning and on its economy. Linking FDI enterprises
sion No. 1658/QD-TTg on accepting the Investment (MPI), processing and manu- with domestic counterparts has never been
National Strategy on Green Growth in the facturing and science and technology were straightforward because awareness, moti-
2021-2030 period and vision to 2050, spe- two fields that attracted a number of FDI vation, standards, and technology among
cific economic models that are adaptive projects last year, accounting for 30.7 per the latter are yet to meet the requirements
to climate change, as well as circular econ- cent and 16.7 per cent of all new projects, of the former. In green economic sectors
omy models, are being researched to pro- respectively. FDI capital increased rapidly and activities, these standards are consid-
mote a green transition during the process during the 2012-2019 period, by nearly ered to be of even greater concern. Once
of economic recovery. Moreover, the coun- 10.4 per cent annually on average, and the country can overcome such challenges,
try committed to reaching net-zero emis- only declined relatively slightly amid Covid- the development of a green economy will
sions by 2050 at the 2021 United Nations 19, while increasing in the fields of pro- bring a host of favorable benefits. Viet-
Climate Change Conference (COP26). duction and professional activities. namese enterprises should not be afraid
Foreign investor interest in the green of the cost of investing in green projects,
FDI FOR A GREEN ECONOMY economy and green production has had a because the transition to green processes
There are many FDI projects that have positive impact on Vietnam’s economy. will help their products move into higher
begun shifting towards green economic The eco-industrial park model has received price segments. Vietnamese enterprises
development. For example, a number of greater attention around the country, along must therefore give priority to developing
clean energy projects have been licensed with improvements in related policies and green economic trends as a means of grow-
recently, such as the Bac Lieu Liquefied an increase in investment by industrial ing and developing. %

8 | VIETNAM ECONOMIC TIMES | MAY 2022 www.en.vneconomy.vn