Page 70 - Ebook HTKH 2024

APEC and Eurostat and low carbon FDI by UNCTAD, so it is more general and
complete.

Vietnam does not define green FDI, but in the 2012 “National Strategy on Green
Growth”, it mentions that the “Green Growth Strategy” is “a strategy to promote the
process of restructuring and improving economic institutions towards more efficient use
of natural resources, enhancing the competitiveness of the economy, through increased
investment in technological innovation, natural capital, and economic instruments.
Thereby contributing to responding to climate change, reducing poverty and ensuring
sustainable economic development”. In this strategy, Vietnam also defines green
technology and green products. In which, green technology is “technology to develop,

apply products, equipment and systems used to conserve the environment and resources,
minimize negative impacts from human activities”; and green products are “non-toxic
products, use energy and water efficiently and are harmless to the environment”.
In summary, green FDI can be understood as foreign direct investment in the
production of environmental products and services or foreign direct investment with a
production process that minimizes environmental damage; aiming to both develop the

economy while using resources reasonably, avoiding environmental damage, climate
change and ecological imbalance in the investment recipient country.
3. Benefits of green FDI
FDI has the potential to strongly promote sustainable economic development. FDI
promotes the development of human resources, thereby helping to further improve the
living standards of local people in particular and stimulate the growth of the host
country's economy in general. Green FDI is associated with the goal of protecting the

environment and ensuring economic and social benefits for all parties involved,
specifically:
- Regarding economic benefits: Investors have favorable conditions to conduct
production and business activities, reduce production costs, and create profits during the
investment process. The investment recipient must achieve the goal of high, stable and
sustainable economic growth. In other words, this investment capital flow will ensure

that both parties have economic benefits.
- Regarding environmental benefits: The natural environment of the investment
recipient needs to be protected, the level of pollution controlled, and not increase the
indiscriminate exploitation of resources.
- Regarding social benefits: The investment recipient has achieved significant
progress in social welfare, such as social progress and equity, poverty reduction, job
creation, income increase, improvement of education quality, intellectual level...
4. The relationship between Vietnam and the EU

The establishment of diplomatic relations in 1990 between Vietnam and the EU
(then the European Community, with 12 member countries in Western Europe) was an
important event, marking the beginning of our country's escape from the embargo of
Western countries and positively impacting Vietnam's foreign relations and

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