Page 69 - Ebook HTKH 2024

value, positive spillover effects, connecting global production and supply chains;
attracting green investment, high technology, supporting technology, advanced

management and governance methods; promoting social responsibility and
environmental protection to improve the effectiveness of foreign investment
cooperation... In the period of 2021-2030, to promote socio-economic development and
sustainable poverty reduction, the State must continue to increase the scale and speed of
attracting FDI investment to promote the role of creating momentum to promote GDP
growth and build a green economy.
2. The definition of green FDI
Defining and measuring green FDI is not a simple process, there is still a lack of

internationally agreed definitions and relevant data on green FDI. There have been
studies on international trade in environmental products and services by APEC or
Eurostat or the concept of green development by OECD and Vietnam. However, there
are few studies on the concept of green FDI. This concept is only mentioned in some
studies by UNCTAD and an official study in 2011 by OECD - the study is considered
the basis for subsequent studies on issues related to green FDI.

UNCTAD (2008) mentioned green FDI as referring to two types of investment:
(i) Foreign direct investment that complies with national environmental standards and
(ii) Investment in the direct production of environmental products and services in the
host country. The UNCTAD Investment Report 2010 focused on low-carbon FDI - a
part of green FDI and defined it as low-carbon foreign direct investment is the transfer
of technology, practices or products by a TNC to the host country through direct
investment in assets and non-assets - such that the TNC's operations and related

activities, as well as the use of their products and services, will significantly reduce
greenhouse gases (GHGs) emissions compared to business as usual. Low-carbon foreign
investment includes attracting FDI to access low-carbon technologies, processes and
products.” This report also distinguishes three concepts: “low-carbon”, “green” and
“sustainable”. While “low carbon” refers to a process or product that emits fewer GHGs
over its life cycle than conventional processes and products; “green” refers to a

technology or activity that addresses broader environmental issues, not just climate
change; and sustainable development is a broad concept that addresses the use of natural
resources with economic and social implications.
OECD (2011) has had one of the first studies on the definition of green FDI.
Gathering from previous documents, OECD believes that green FDI consists of two
parts: (i) Foreign direct investment in the field of environmental goods and services and
(ii) Foreign investment in the process of minimizing environmental damage such as
using cleaner or more energy efficient technology.

It can be seen that, whether focusing on “green” or “low carbon”, OECD and
UNCTAD have something in common: they divide FDI into two directions: investment
in products and services and investment in production processes. The OECD definition
is a synthesis of studies on environmental products and services by

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