Air pollution could cost Vietnam 5% GDP, Japanese business official says

Environmental degradation due to air pollution, industrial wastewater is among concerns in Vietnam, which could receive less investment from foreign companies, said Nobufumi Miura, chairman of Japan Business Association in Vietnam during Friday business conference.

The Japanese business official said the investment flow from foreign companies into Vietnam could decline, affecting the country’s economic growth. He estimated the damage caused by air pollution in Vietnam could reach 5% of GDP.

In addition, water pollution is also a serious problem that foreign investors are concerned about. Drainage systems from industrial parks and households have caused pollution in most of urban river systems. And the obvious consequence is the decline in investment projects of foreign companies.

Vietnamese government should tighten and standardize environmental protection regulations, he suggested, adding with experience in environmental protection, Japan is ready to provide technical assistance.

Furthermore, Poor infrastructure is among hurdles for foreign investors in Vietnam, representatives of Amcham and KoCham said.

President of the American Chamber of Commerce in Vietnam Amanda Rasmussen said that the association members look forward to a more balanced approach to develop transport infrastructure to support economic growth in the country.

Referring to infrastructure projects, representatives of Korea Association of Investors in Vietnam regretted that Vietnam canceled international PPP bidding with the North-South expressway project.

"The decision hinders the introduction of experience and technology of advanced countries into Vietnam's major infrastructure projects”, KoCham representative stated.

About 8,000 Korean companies have invested in Vietnam, KoCham said that in order for these businesses to develop stably, funding from Korean banks is necessary.

Minister of Planning and Investment Nguyen Chi Dung acknowledged the contribution of foreign investment sector to Vietnam's economy.

In 2019, disbursed capital of FDI projects reached $20.4 billion, the highest level. The total registered capital reached over $38 billion, the 10-year high.

Source: VnExpress