FDI AND THE ENVIRONMENTAL ISSUES ” In recent years, the flow of FDI has become even more important than international trade as the rate of growth of manufacturing investments has outpaced that of international trade flow of merchandise. As a result, many countries are resorting to intense promotional strategies to attract FDI. Trends Of FDI ” It is possible that the economic gains associated with an increase in FDI could be negated by potential environmental costs as FDI may occur simultaneously with increased environmental issues. FDI vs Environment ” 1% in increase Fdi Contribution Lead to 0.04% increase in pollution FDI vs Environment Firstly, developing countries may relax environmental standards for foreign firms, thus encouraging firms in developed countries to move their pollution-intensive production Second reason is race-to-thebottom hypothesis which argues that increased gains from globalization are achieved at the expense of the environment Case study Although FDI is the great investment and bring many benefits for the country but still exist some errors that could significantly affect to the environment 01. Miwon and the discharge of untreated wastewater and emissions into the environment ” Introduction Company name: Miwon Vietnam Co., Ltd Address: Phu Tho Province Sector: Manufacturer & Trading Company Home country: South Korea MIWON Vietnam Co., Ltd with the brand name Miwon Vietnam - Giving you the real natural spice products. Throughout the history, MIWON has brought sweet, rich and perfect spice to the kitchen of many families and now became an indispensable companion of every meal. In 2008, 2009 in Phu Tho province, there were many cases of environmental violations. Typically, the violation at Miwon Vietnam Co., Ltd. with the discharge of untreated wastewater and emissions into the environment, polluting the surrounding area. Due to the increasing capacity of the factory, the wastewater treatment system could not handle all the resulting waste. Typically, in 2007, an overloaded sewage pipeline broke, causing the entire residential area to "flood" in pollution. From the banks of the Red River to the residential area, everyone is surrounded by a thick, suffocating smell to the chest. The smell of uncleanness, chemicals ... makes the trees in this area "burn" and dry their leaves. 02. Mei Sheng and environmental scandal ” Introduction Company name: Mei Sheng textiles Vietnam company LTD Address: Ba Ria-Vung Tau Province Sector: Spinning of textile fibers Home country: Taiwan The company has a total of 2,000 employees with registered capital of 544 billion VND. On May 10th, 2016, the authorities of Ba Ria - Vung Tau province sealed all 28 clusters of dyeing machines. The sealing period is 3 months for this company to take remedial measures for violations. Notably, this is the 7th sealing for this company. Specifically, Ba Ria - Vung Tau province did not license the company's dyeing products, but this company was still arbitrarily built and put into operation with a capacity of nearly 1,100 tons/year. In addition, during the operation, the company did not prepare an environmental protection project to submit to the competent authority; failing to comply with the regulations on reporting and monitoring the environment; failing to arrange boiler emission monitoring points to serve emission control; the report form and the time of reporting to the hazardous waste source owner are not in accordance with regulations. 03. Vedan responsible for 77% of Thi Vai River pollution ” Introduction Company name: Vedan VietNam Enterprise Co., Ltd Address: Dong Nai Province Sector: packaged food production Home country: Taiwan The company has a total of 2,000 employees with registered capital of 544 billion VND In 2008, Vedan was caught discharging untreated wastewater into the Thi Vai River. The company polluted the river for 14 years with up to 105.6 million liters of untreated wastewater per month. The toxic water killed farmers' fish and shrimp and ruined farmland along the river banks. The company paid the fine and the fees of nearly 128 billions VND and closed down four of its factories. However, the compensation due to farmers who'd suffered severe losses because of the company's environmental violation that destroyed crops and farmland while poisoning fish and shrimp in nine communes at HCMC, Ba Ria - Vung Tau Province, and Dong Nai Province. was yet to be decided. 03. 2016 Vietnam marine life disaster ” Introduction Company name: Formosa Ha Tinh Steel Address: Ha Tinh Sector: steel plant Home country: Taiwan In 2016, fish carcasses were reported to have washed up on the beaches of Hà Tĩnh province and later, a large number of dead fish were found on the coast of Hà Tĩnh and three other provinces. After denying responsibility for months, Formosa accepted responsibility for the fish deaths. The company discharged toxic industrial waste illegally into the ocean through drainage pipes. The disaster disrupted the livelihood of fishermen in four provinces in the central coast of Vietnam. Approximately 80 tonnes of fish carcasses had been washed up to the shores of four central provinces of Vietnam from Hà Tĩnh to Thừa Thiên–Huế. The massive marine life destruction led to a number of protests by Vietnamese citizens in some cities, calling for a cleaner environment and demanding transparency in the investigation process. This was the most serious environmental disaster Vietnam has ever faced. Sollution GOVERNMENT State management agencies need to notify enterprises fully and promptly amendments and supplements in legal documents. Establish new favorable policies to attract more high-tech FDI projects. Improve policies and regulations on environmental protection in a clearer and more stable direction Increase the level of penalties for violations GOVERNMENT Build an official information system to help FDI enterprises update information on policies and requirements from the authorities Before issuing business licenses, businesses are compulsory to build waste treatment facilities There should be appropriate coordination between environmental management office to avoid overlap in monitoring and supervision of the work bUSINESS Train and improve the professional qualifications of environmental officers in enterprises. Individual -160% -123% -104% -101% -121% -45% THANKS! CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, and infographics & images by Freepik