Looking forward to high-tech, low-technology

November 30-3 in Hanoi, the Research Institute and the central economic management (CIEM) held a workshop on research results “diminish the environmental impact related to foreign direct investment (FDI) in Vietnam”. This research clearly indicate though Vietnam has the the major direction to attract FDI into areas of high technology, new materials and attract business (DN) but the result is not as expected.

Policy flaws, the law

Dr. Nguyen Manh Hai, head of the public service policy CIEM, said according to the study, 67% of FDI in Vietnam in the operation of ENTERPRISE manufacturing industry have low value. These ENTERPRISES mainly use low technology, energy consumption and the possibility of high emissions. Research in a number of sectors such as the textile, footwear, chemicals, machinery manufacturing shows only 5% of FDI in high technology FIRMS, 80% of the average technology, rest is using low tech. Meanwhile, the field of the environment such as water supply and waste water disposal is not the foreign investor interest.

Research by a University of economics for 150 DN FDI shows 45% have yet to adopt production processes less emissions. Many COMPANIES aren’t reporting the environmental impact assessment, not committed or not properly implemented its commitment to protect the environment. Up to 69% of COMPANIES say that they will not implement emissions reduction process as if it is not required. 57.5% of that investment because of high costs. Remarkable is the level of compliance with the environmental legislation in Vietnam there are differences between the COMPANIES from the developed countries and the developing countries. In particular, the provisions on the protection of the environment in Japan, South Korea are serious enforcement and stronger in Vietnam. So, likely from the GOV’T move backward technology and pollution on Vietnam.

Need the “patent grim”

Also according to Mr. Hai, Vietnam has moved from the stage of attracting FDI according to the quantity according to the quality but the results are still not as desired. The cause was previously Vietnam has many flaws on the management environment in attracting FDI, leaving consequences must overcome in the current period. The specific provisions on the environment largely improved in recent years. Song about environmental law was relatively full, then the enforcement has many restrictions, especially on institutional and human resources. The GOV’T reflected that they lack mainstream channel access rules on the environment. Local authorities are in providing policy information, while laws and regulations on the environment complex, overlapping, change too fast do cost of compliance of ENTERPRISE.

Ms. Duong Thi, Director of the Center for environment and community development-Vietnam Association for the protection of nature, said the 2011-2015 period, more than 50% of the audience in an inspector and inspection is found to have infringed on the protection of the environment.

The cause was multiple violations by the fine levels lower than the investment costs of waste processing system. Besides, many ENTERPRISES limited financial capacity and, if the investment system of environment protection also to deal, operate only when being examined. Every year, the ratio DN are inspected and tested very little, on average about a dozen new year were checked back in when management measures based on the community not yet exert strong is the big limit, should fix.

Each work in the industrial and commercial sector, Mr. Nguyen Duy Nghia stressed the seriousness of environmental degradation due to pollution from industrial clear too. People had to pay the price when the cancer and infertility rates rise.

Urgent issue is to be the solution, “grim financial mechanisms” to prevent, especially in the context of FDI into Vietnam could increase quickly to catch the opportunity from the free trade agreement. “If only in its current economic measures with penalties lighter then the proceeds from sanctions the violation of the environment is not worth nothing compared to the cost”-Meaning he warned.