Vietnam will not attract investments at any costs, despite the fact that the country is the biggest beneficiary from the Trans-Pacific Partnership and has welcomed waves of foreign investments, said Prime Minister Nguyen Xuan Phuc. The environment is an influential factor in licensing investments.
Tien Son Industrial Park, Bac Ninh Province. Within the first 5 months of the year, Bac Ninh Province has turned down 14 investments in this industrial park. The latest is from a Taiwanese textile company. According to the provincial authorities, most of the rejected projects did not meet environment protection requirements.
"The environmental impact of investment projects are considered by a council. The Department of Natural Resources and Environment then will decide on granting a licence or not. We have rejected many projects which have a high possibility of environmental pollution, and encourage those running hi-tech or e-commerce platforms", said Dao Quang Khai - Director of Bac Ninh Department of Natural Resources and Environment.
"Environmental effects must be our top priority. The assessment process must be carried out in a strict and thorough manner. Different agencies get involved in the process and each of them has the authority to reject the project if we believe there is a high possibility of pollution. We still keep an eye on their environment responsibility even after granting an investment licence", said Nguyen Thanh Vinh - Head of Environment Police, Bac Ninh Police Department.
Reports from international experts showed that without strict environmental control, each 1% GDP increase will result in environmental damage equivalent to 3% of GDP. According to the Central Institute for Economic Management, textiles, leather, chemicals and engineering are the most polluting industries. Only 5% of FDI enterprises incorporate high technology while 80% operate with normal technology and 15% use low technology.
"We have to consider both short-term and long-term benefits. Environmental benefits are long-terms and so is the damage. Recovery costs are huge. We should never give up our environment for short-term economic benefits as this will affect our long-term economic development", said Dr. Nguyen Manh Hai - Central Institute for Economic Management.
Most recently, the Ministry of Planning and Investment rejected two million-dollar foreign investment projects in textiles and footwear in two northern provinces due to their potential pollution. According to the Ministry, localities will also have to change their approach when attracting investment.
