Vietnam's environmental challenges and growing pains

Vietnam has been dubbed the ‘new dragon of Asia" due to its spectacular economic growth. But beneath the glittering growth are serious growing pains. Endless waste, polluted nature, and graying skies.

Government of Vietnam It recognized the seriousness of the problem and drew the sword of the law, but in the midst of great change, there are always new opportunities. Right now, Vietnam's environmental problems are paradoxically becoming the hottest land of opportunity for ‘green business’ companies around the world.

1. The Price of Growing Pains: Vietnam's Environmental Problems, How Bad Are They?

Vietnam's environmental problems are more than just a concern, they've reached a point where they're directly hurting the country's economy.

🏭 Land and Water Moan: Overflowing Waste

• Untreated wastewater: 601 TP3T of Vietnamese households dispose of their sewage directly into public sewers, but of those Only the 10% is properly processed. The World Bank has warned that the economic cost of this is **$780 million per year**.
• Neglected industrial waste: Of the 298 industrial parks nationwide One-third still lack a waste disposal systemin the water. This means that unregulated wastewater is often discharged untreated.
• Unsanitary landfills: The 80% of municipal solid waste is landfilledbut of the 458 landfills in the country, only 121 meet sanitary standards, which is a major source of secondary soil and water pollution.

💨 Graying Skies: The Tragedy of Air Pollution

“Vietnam loses more than $100 billion (approximately VND138 trillion) annually due to air pollution. This is equivalent to 4.45-5.641 TP3T of GDP, a staggering amount.” - Vietnam National University of Economics Announces Vietnam Business Forum (VBF)

Three times as many people die in traffic accidents Air pollution kills 50,000 people a yearInefficient use of fossil fuels, attracting FDI in polluting industries, and a proliferation of motorcycles and cars threaten Vietnam's skies.

2. Developed countries in law, developing countries in practice?

The Vietnamese government is showing a strong commitment to no longer ignore environmental issues.

• Advanced legislation: Significantly revised the Environmental Protection Act in 2014 and enshrined environmental rights in the Constitution. Strong environmental legislation at the international levelin place.
• Strict regulations: When applying for an investment license, foreign-invested companies must Require submission of an environmental impact statementand a new greenhouse gas reduction roadmap.
• Wall of reality: However, due to the ‘prioritization of economic growth," overlapping powers between ministries, and shirking of responsibility, the How strong laws can't be enforced on the groundobviously exists as well.

3. The ‘green business' umbilical cord: where does the money come from?

The Vietnamese government is utilizing a variety of resources to address environmental issues.

• Official Development Assistance (ODA): It has historically been a key source of funding for infrastructure such as roads and ports, and it still plays an important role in the environmental sector.
• Self-funded efforts:
  • Resource taxes: Drive rational use of resources and secure funding.
  • Environment cost: Enforce polluter accountability and raise revenue by charging for wastewater and municipal waste.
  • Environmental Fund: It operates the National Environmental Fund, which collects domestic and foreign investment to support environmental protection projects nationwide, including waste treatment and research on eco-friendly technologies.

4. Opportunity in crisis: Vietnam's environmental market has unlimited potential

This is where the business opportunity is exploding. The demand for technology and capital to fill the gap between the strong will of the Vietnamese government and the scarcity of reality has never been higher.

📈 Explosive demand and strong government commitment

Vietnam is a Establish a solid waste recycling plant in every city by 2025and set an ambitious goal of collecting and treating all industrial waste generated. Continued urbanization and population growth are further fueling the demand for environmental services.

🤝 ‘Green carpet’ for foreign investment’

The Vietnamese government is very active in attracting foreign investment to address the lack of domestic skills and capital.

• FDI surge: The number of FDI firms in the environmental sector has grown from five in 2005 to Increase to 40 or moreand investments are rapidly growing from hundreds of millions to billions of dollars.
• Remove barriers to investment: Barriers to investment are being lowered by joining the TPP (now CPTPP), and the legal system has been recognized as investment-friendly.
• Unconventional incentives: For foreign investors Reduced site rent, certain items tax-free and more to attract investment.

Vietnam's environmental crisis could soon become a ’promised land’ for companies in the fields of purification technology, waste management, air pollution reduction, and renewable energy. Are you ready to become a global partner in creating a sustainable future for Vietnam?

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