Foreign Investors Increasingly Concerned over Infrastructure, Pollution in Vietnam

Foreign companies have expressed increasing concerns over the worsening of pollution, trafficking and flooding in Vietnam.


Air pollution and traffic are among the biggest concerns for foreign investors in Vietnam. Photo: Saigoneer

Air pollution is clearly and visibly increasing at an alarming pace and this will start to have an impact on people willing to move families to Vietnam, which in turn could well have a negative impact on foreign direct investment (FDI), the British Business Group Vietnam (BBGV) said at the Vietnam Business Forum (VBF) on December 5.

The British business association also complained of noise pollution, which is caused by open Karaoke bars in residential areas, loudspeaker systems used in school play grounds and construction being undertaken 24 hours per day in residential areas.

Traffic congestion is a growing problem in the cities of Hanoi and Ho Chi Minh City, in particular. “Without adequate public transport it is difficult to address the traffic issue,” BBGV said.

BBGV recommend that the government address pollution and in particular air and noise pollution quickly and without compromise, and draw up plans to limit traffic in the major cities as soon as the new public transport systems are operational.

“We believe the basic rules and regulations if enforced properly would result in immediate improvements,” stressed BBGV.

Sharing the same view, Dominic Scriven, head of the VBF’s Capital Markets Working Group said that environmental problems are disheartening overseas investors.

         Dominic Scriven, chairman of Vietnam-focused Dragon Capital Group. Photo: Internet

Major environmental incidents in the central part of Vietnam, the drought in the Mekong Delta and wildlife trafficking have left bad impacts on the country’s image. 

Mr. Scriven, also chairman of Dragon Capital Group – one of the largest fund management companies in Vietnam - tipped that the biggest investor of its funds has withdrawn from the Vietnamese stock market due to the absence of convincing policies and actions to protect the environment.

Tons of fish and marine species washed ashore along the coast of four central provinces in early April due to toxic leak from a steel mill run by Taiwan’s Formosa. This worst-ever environmental disaster has severely affected the livelihoods of fishermen and the local tourism industry. 

Tuan Minh / BizLIVE