We highly appreciate the Government’s efforts to integrate into the world’s economy, in particular it is worth mentioning the recent conclusion of important trade pacts such as the EU- Vietnam Free Trade Agreement, the Trans-Pacific Partnership, the Vietnam –Korea Free Trade Agreement. Foreign business community is expecting from the Vietnamese Government to stay course on its path of international integration and implementation of its international commitments. Foreign investment is an effective channel to develop the country, thus the Government needs to adopt preferential treatment for foreign investors in terms of policies, land and human resources.
But foreign investment cannot come at the price of unlimited environmental pollution and GDP should not be the only indicator of a fast-growing country. The current serious environment pollution in China as a result of its hot development in the recent years is a big lesson that Vietnam must learn from. The magic term for Vietnam’s future is “Sustainable Foreign Direct Investment”. Vietnamese Government should focus on encouraging sustainable development. One form is renewable energy. However, there has been done too little to move foreign direct investment forward in the renewable energy sector. Lack of sufficient supporting regime, low feed in tariff, project bankability are among hindrances to development in the sector.
But in my view the major hindrance for development in the Renewable Energy sector is the will of the Authorities in charge to really implement commitments of international agreements like the Paris agreement and make things happen in Vietnam. I conclude: Nothing will move without the real will to do it. We need the will and real action to create a sustainable framework for Renewable Energies and sustainable Foreign Direct Investment.
I am confident that the new Government will walk its talk to this regard.
Please contact Oliver Massmann under omassmann@duanemorris.com if you have questions on the above. Oliver Massmann is General Director of Duane Morris Vietnam LLC.
Thank you!
Best
Omassmann