Attracting green FDI: Taking advantage of advantages, overcoming challenges

(PLVN) - Vietnam has many factors to attract foreign direct investment (FDI). In particular, joining the wave of green economic development of the country, capital flows in the field of green FDI into Vietnam are also increasing.

11/21/2024 13:51

Green FDI inflows into Vietnam are increasing. Illustrative photo.

(PLVN) - Vietnam has many factors to attract foreign direct investment (FDI). In particular, joining the wave of green economic development of the country, capital flows in the field of green FDI into Vietnam are also increasing.

Good market growth

Recently, many "big guys" in the world have come to "nest" in Vietnam and aim for green criteria such as using renewable energy, innovating machinery technology, having commitments related to environmental and climate protection... A typical example is the project that plays a "turning point" role in shifting FDI capital flows into Vietnam worth 1.3 billion USD of Lego Group (Denmark) in Binh Duong...

Assessing Vietnam’s potential and advantages in attracting green FDI capital, Mr. Tim Evans, General Director of HSBC Vietnam, said that Vietnam already has many factors to attract foreign direct investment (FDI). In terms of green FDI capital alone, nearly 40% of Vietnam’s land area has average wind speeds favorable for wind power development.

“Not only that, the country also has many areas with favorable radiation levels for solar power development. Therefore, Vietnam also possesses advantages in both policies and geographical conditions to compete in attracting green FDI with countries in the region,” Mr. Tim Evans emphasized.

Mr. Nguyen Anh Duong, Head of the General Research Department (under the Central Institute for Economic Management - Ministry of Planning and Investment), stated that the interest of FDI investors in the green economy has created positive spillover effects on the entire government system, people and businesses of Vietnam.

Overcome the challenge

Currently, state management agencies and enterprises have made moves to shift towards green production. Many industrial parks are also paying more attention to screening and impact assessment to ensure environmentally friendly investment projects.

“In particular, Vietnam is among the countries with increasing sustainable consumption trends, which has contributed to creating significant “demand” for green products. From there, the issue of attracting FDI into green economic sectors and activities is carried out naturally,” said Mr. Nguyen Anh Duong.

However, challenges in the journey of attracting green FDI are not absent and Vietnam needs to thoroughly improve these challenges to welcome more green FDI flows.

Mr. Gabor Fluit, General Director of De Heus Asia, realized that Vietnam faces barriers in complying with the European Union's (EU) green supply chain focus.

Specifically, the implementation of stricter environmental standards and regulations. At the same time, the application of green technology requires huge investments. Ensuring transparent and sustainable supply from local suppliers is also a big challenge for the country.

In addition, experts say that policies and incentives to encourage FDI enterprises to invest in renewable energy projects will be very important. This is an issue that the Vietnamese Government needs to focus on in the coming time.

At the same time, focus should be placed on workforce training to equip people and businesses with the skills needed for this growing sector.

Source: https://baophapluat.vn/thu-hut-von-fdi-xanh-tan-dung-loi-the-vuot-qua-nhung-thach-thuc-post532501.html