In 2021, Vietnam attracted $31.15 billion worth of FDI, an increase of 9.2 percent over 2020, despite Covid-19, according to the General Statistics Office (GSO). Foreign investment inflow is expected to prosper again this year thanks to attractive policies and the reopening of the economy after two years of closure because of the pandemic.

Dang Duc Anh, deputy head of CIEM, said that FDI in recent years flowed into business fields with higher added value, including high technologies, information and communications, processing and manufacturing, and support industries and agriculture, while investments have dropped in labor-intensive industries.

Many FIEs have oriented their production and business activities towards green and sustainable development. 

Danish Lego Group has stated it will spend $1 billion to build its first carbon-neutral plant in Binh Duong province. Meanwhile, SCG has initiatives to reduce greenhouse gas emissions, energy consumption and natural resources.

Green production is a must

CEO of SCG Vietnam Piyapong Jriyasetapong said the recent challenges from Covid-19, natural calamities to climate change force enterprises to change their business models and follow the global trends to overcome difficulties so as to create common value and improve the living standard of the community. 

One of fundamental transformations implemented by SCG is ESG 4 Plus. Being no longer an unfamiliar concept for the business community, ESG (environmental, social and governance) is one of the measures applied by many companies in their business strategies.

As for SCG, ESG 4 Plus is built with four major stages – Set Net Zero, Go Green, Reduce Inequality and Embrace Collaboration, with high attention to Harnessing Good Governance.

At COP 26, Vietnam committed to have net zero emissions by 2050, reduce methane emissions by 30 percent by 2030, gradually reduce and eliminate coal-fired power in 2030-2040, and protect forests. 

In order to realize the commitments, Vietnam needs to speed up the implementation of the green development strategy, concretize the strategic contents of the Green Growth Action Plan in the direction of creating a premise for the construction of ‘a roadmap for realizing green growth associated with socio-economic development with a long-term vision to achieve net zero emissions by 2050’.

Localities have also moved ahead with the policies to attract greener FDI. HCM City Vice Mayor Vo Van Hoan said the city is transforming IZs and EPZ using backward technology into hi-tech environment-friendly ones. The city is developing the infrastructure, laying down reasonable policies and more bottlenecks, preparing to receive a green FDI wave.

Mai Son