Page 68 - Ebook HTKH 2024

ATTRACTING GREEN FOREIGN DIRECT INVESTMENT (FDI)

FROM THE EUROPEAN UNION (EU) TO VIETNAM

Le Trong Nghia
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Abstract: Green growth is currently a development trend covering the world economy, in which
global foreign direct investment (FDI) flows are increasing, focusing on the following areas: high
technology, innovation, research and development; green economy, digital economy, circular economy;
clean energy... Vietnam is one of the countries attracting large investors in the world, such as the USA,
Japan… especially the European Union. On August 1, 2020, the EVFTA officially took effect after being
ratified by the European Parliament and the National Assembly of Vietnam. This agreement has raised
a new level in investment activities between the European Union and Vietnam. Although attracting FDI
has recorded impressive results, Vietnam has gradually realized that there needs to be a strategic
change in policy, specifically towards attracting new generation FDI, "green" FDI, to maintain
competitiveness and sustainably attract FDI capital.
Keyword: Green FDI, European Union, Vietnam

1. The necessity of green FDI
Over the past 35 years, Vietnam has attracted nearly 438.7 billion USD of FDI

capital. Of this, 274 billion USD has been disbursed, equivalent to 62.5% of the total
registered investment capital in effect. It can be said that foreign investment projects
that have come into operation have made great contributions to Vietnam's socio-
economic development. The foreign-invested economic sector has developed rapidly
and effectively, becoming an important part of the Vietnamese economy, contributing
to creating jobs and income for workers; improving qualifications and production
capacity; stabilizing the macro-economy; promoting economic restructuring.

However, the number of investment projects with high technology and added
value in Vietnam is still low, many projects are still labor-intensive, use a lot of land,
and affect the environment, and do not have high spillover effects on technology and
supply chains... Meanwhile, Vietnam is currently committed to implementing the goals
of zero emissions by 2050, while pursuing the goal of green development and
sustainable growth in the long term. This context requires Vietnam to upgrade its

policies on attracting and using FDI with a strong focus on green growth, that is,
focusing on attracting green FDI.
To specify Resolution No. 50-NQ/TW, dated August 20, 2019 of the Politburo on
the orientation of perfecting institutions and policies, improving the quality and
efficiency of foreign investment cooperation until 2030, on June 2, 2022, the Prime
Minister approved the Foreign Investment Cooperation Strategy for the period 2021-
2030. In which, it clearly states: Focus on attracting foreign investment with focus and
key points; Attracting projects using advanced technology, new technology, high

technology of the Fourth Industrial Revolution, modern management, high added

34 Faculty of Economics, Thuong mai University, Email: nghiatrongle95@gmail.com

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