Problems between economic growth and environmental protection when investing in Vietnam
One of the problem that most of the investors in Vietnam must concern is the balance between economic growth and environmental protection as investing in pollution treatment system may affect their financial cost.
Recently Vietnamese Government has considered the environment as an important component of its socio-economic development and encouranged the companies in Vietnam to pay more attention to environmental protection by issueing many regulations and standards relating to environment. Although the final goal of business is profit, companies still need to pay attention to environmental issues for sustainable development.
The relationship between economic growth and environmental protection
Economic growth has a positive effect on the economy and society because economic growth means an increase in real GDP and this means there is an increase in the value of national output. Economic growth leads to higher incomes, higher living standard, creates more jobs, attract more foreign investment capital, improved public services, … Consequently, economic growth is the strategic target of many countries in general and Vienam in particular.
However, if we only focus on economic growth without paying any attention to the environmental protection, this may cause some serious results. Economic growth may destroy the environment, which can make air pollution, water pollution, land pollution and noise pollution. According to the statistics, there are over 800,000 industrial production companies and about 76 industrial parks in Vietnam. And it can be said that the pollution status of most companies is still serious. The pollution source is mostly from the SMEs in the field of cement, fertilizer, chemicals, dyeing, metal plating, ceramic goods, … Environmental pollution creates bad influence on the surrouding environment, resources depletion and makes economic growth go down.
In conclusion, economic growth should go together with achieving progress, social equality and environmental protection.
Domestic and foreign investors including SMEs in Vietnam have a responsibility to protect the environment
Recently, Vietnam has been quite successful in implementing tasks for sustainable development. on November 19, 2005, the National Assembly approved a revised Law on Environment Protection and Development with the viewpoint: “Rapid development combined with sustainable development, which is an overall requirement set by the strategy” From this point of view, the Government resolved to improve its management role in environmental protection within the context of sustainable development.
Generally speaking, the environment quality in some regions had improved, contributing to improving the people’s quality of life and ensuring sustainable development. Responsibility of environmental protection is reflected in the strategy and specific activities of the companies. For some projects in the special industries stipulated in Decree 29/2011/ND-CP , to get Investment Certificate, the investors must make report of environmental impact assessment and submit to the competent authority for approval. Other investors must make commitment of environmental protection and operate according to these commitments.
Viet Nam is well aware of the challenges it has to face when embarking on the path to sustainable development. To overcome these challenges, Viet Nam initiated eight key measures to protect the environment: the completion of the legal system, community involvement, raising the awareness of the general public, better management of investment resources and transparent information.
Long An is one of the best destination for domestic and foreign investors in Vietnam
In the past time, the economic development process in Long An helps this province grow faster but also affect the environment. However, the Government in Long An has been paying more attention to the environment protection now. At the pretent time there 23 industrial parks (IPs) in operation in Long An, 21 IPs has complete waste water treatment system and 2 others with the system on construction. The IPs in Long An are required to associate the target of industrial development with environmental protection for sustainable development.
All projects are built in accordance with the approved detailed plan after completing the responsibility for the report on environmental impact assessment, environmental protection commitments. The companies in the IPs in Long An are set up with separate rain water system and wasted water system which is connected to the drainage system of the IP. The investors are requested to equip the local wastewater treatment system before releasing into the common drainage system of the IP.
According to the statistics, the rate of non-hazardous industrial solid waste collection in Long An is 80 – 90%. That rate of hazardous one is about 90%. Long An authorities are planning and carrying out many measures to gain the target of 100 % for those rates until 2015. The new investment projects must be in accordance with regulations on environmental protection. The Government develops program to encourage the companies to apply new technology of “Cleaner Production” and save energy and removes or penalizes the compaies causing serious environmental pollution.
Besides, the investor can consider Kizuna Rental Serviced Factory in Tan Kim IP in Long An for investment in Vietnam. The ready built factory for rent of Kizuna is constructed with clean and friendly environment and complete waste water treatement system. Kizuna also have services to support the investor the information about environmental problems, environmental service companies, support environmental services such as making the Environment Protection Commitment, making the periodic report of environment monitoring, waste resource owner registration and hazardous wastes management report. The services about environment at Kizuna Rental Serviced Factory will help the investor to save cost, save time, feel safe and the clients will be satisfied with these services.
