Vietnam encourages Japanese environmental investment

16:27 | 21/06/2017 Economy

(VEN) - Deputy Minister of Natural Resources and Environment, Vo Tuan Nhan, said at a recent green technology product meeting with Japanese enterprises in Ho Chi Minh City that Vietnam encourages Japanese environmental investment.

Deputy Minister of Natural Resources and Environment, Vo Tuan Nhan (middle), answers questions of Japanese business representatives

Reality and opportunities

According to Duong Thanh An, director of the Department of Policy and Legislation of the Ministry of Natural Resources and Environment’s Vietnam Environment Administration (VEA), the country’s environmental protection is sorely lacking. Only five percent of 615 industrial zones for small to medium-sized enterprises nationwide have central wastewater treatment facilities; the rate of gathered solid and medical wastes in cities is low; mineral mining has had many negative environmental implications; and serious environmental pollution is found in many craft villages. However, An added, this provides opportunities for Japanese companies to invest in environmental improvement.

The government’s determination to improve the environment is reflected in a series of policies, the most notable one of which is Prime Ministerial Instruction 25/CT-TTg on strong solutions for environmental protection.

At the meeting, VEA representatives introduced Vietnam’s major incentives for environmental investors. Major changes has been made in the 2014 Law on Environmental Protection, with articles 147-155 featuring resources for environmental protection, and some other regulations mentioning preferential policies for environmental protection. According to the law, environmental investors can benefit from preferences related to land, tax, capital mobilization and product sales, among others.

Concern of Japanese businesses

At the meeting, Japanese enterprises expressed interest in preferential policies for environmental investors. They posed questions related to tax incentives, outlets for green technology products and the Vietnamese government’s assistance related to those products’ prices.

Nguyen The Dong, deputy director of VEA, said the cost of participation in seminars and exhibitions can be counted as the businesses’ legal expenses, and that environmental investors can benefit from an enterprise income tax of 10 percent for 15 years.

The Vietnamese government has bought solar electricity at a price (nine cents per kWh) 40 percent higher than that of hydropower (six cents per kWh). Japanese firms can propose an appropriate price for garbage-based electricity.

Deputy Minister of Natural Resources and Environment, Vo Tuan Nhan, recommended that Japanese enterprises invest in wastewater treatment in industrial zones, solid and medical waste gathering and treatment, and production of environmentally friendly technology products.

Long Duong