Vietnam Ripe for Green Investment
Vietnam is a pioneer among developing countries, taking a leadership role in green growth. From 2012, the Green Growth Strategy has aimed to develop Vietnam into a low carbon economy and to enrich natural capital. The strategy marks the direction in sustainable economic development with the objectives of restructuring the economy and applying advanced technology to improve living standards. The initiative has seen support from Vietnam and been praised by Vietnam’s President and World Bank Vice President Rachel Kyte.
Establishment of a carbon market, allowing carbon trading for countries to meet obligations under the Kyoto Protocol, is currently underway under the VNPMR project. The project aims to implement the Nationally Appropriate Mitigation Action (NAMA) plan to create carbon credits for waste management and steel manufacturing. Vietnam has received US$3 million in aid to support the VNPMR from the World Bank. While the overall benefits of carbon trading are debatable, integrating into the global carbon market offers Vietnamese firms more flexibility in meeting environmental obligations.
Investors are confident in the rewards of green investment in Vietnam. The US$2bn environmentally conscious investment from into an Eco Smart City in Ho Chi Minh City is a partnership between Japanese Mitsubishi, Toshiba and South Korean Lotte. Lotte Chairman Shin Dong Bin has confirmed that the Eco Smart City project will be an example of modern green architecture, and is one of Lotte’s largest overseas investments. The development will feature trade centers, hotels, office building and apartments on a 10 hectare area in the new urban area of Thu Thiem in Ho Chi Minh City’s District 2. Ground is expected to be broken for the project in September 2015, when the government celebrates 70 years of independence.
Vietnam is partnering with governments and international organisations to keep its green growth strategy on track. The Korea International Cooperation Agency (KOICA) has been actively supporting Vietnam’s Ministry of Planning and Investment (MPI) regarding the project, including in a January 2015 workshop in Hanoi on the Legal Framework for Vietnam’s Green Growth Strategy. Similarly, the MPI is working closely with the United Nations Development Programme and USAID to develop capacity of its and other Vietnamese ministries’ staff, and to develop policies and regulations for green growth investments with an eye on sustainable development.
Green investment in Vietnam is taking place at the nexus of private sector initiatives and public sector cooperation and capacity building. From carbon trading to green construction, Vietnam is the place for green innovation in ASEAN.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
Import and Export: A Guide to Trade in Vietnam
In this issue of Vietnam Briefing Magazine, we provide you with a clear understanding of the current business trends related to trade in Vietnam, as well as explaining how to set up your trading business in the country. We also attempt to give perspective on what will be Vietnam’s place in the Association of Southeast Asian Nations (ASEAN) in 2015, and look at some of the country’s key import and export regulations.
Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.
An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in the country.