Nation to open up environmental services to foreign firms

The Ministry of Resources and Environment (MRE) is working to insert environmental projects into socio-economic plans that encourage the use of advanced technologies and waste recycling.

Tran Thi Minh Ha, Head of the International Cooperation Department under the MRE, said a scheme is underway to prepare for Viet Nam to fully open its market on environmental services to foreign investors by 2010 in line with its commitments to the World Trade Organisation.

She added that the ministry is finalising a legal system and management mechanism regarding environmental services, which will encourage all economic sectors to invest in the field in an effort to reduce the burden placed on the Government.

One potential policy will support the classifications of waste to increase the proportion of recycled waste and mitigate the volume of waste being sent to dumping grounds, Ha added.

She also unveiled an external policy to implement a master plan on resources and the environment and execute a framework agreement among the Association of Southeast Asian Nations (ASEAN).

Viet Nam’s WTO membership commitments have immediately allowed foreign investors to enter into joint ventures with local partners but investment has been limited to a maximum of 51 percent.

Wholly foreign owned environment firms will be allowed to operate inside the country from 2010. Foreign companies will also be allowed to open branches and buy shares of domestic businesses. They can hire international experts but have to ensure that 20 percent of local staff holds management positions.

Commitments have also enabled Viet Nam to maintain incentives for foreign investors who operated in the country before WTO membership as well as continue subsidies for projects that provide employment for ethnic minorities, conduct research and boost social development.

(Source: VNA)