• Environmental impacts

Environmental impacts of trade liberalisation

This paper analyses Vietnam’s shift in trading and investment patterns with a particular focus on the environmental implications resulting from greater openness of the economy over the past decade.

The paper finds that:

• following liberalisation manufacturing output has been significantly higher from the water pollution intensive sectors compared to the less pollution intensive sectors
• also with the opening up of the economy. exports in Vietnam have increased significantly from the toxic pollution intensive sectors and foreign direct investments have been higher in the toxic pollution intensive sectors

The paper demonstrated that, in particular, textile and leather, which are both highly pollution-intensive manufacturing sectors, have become very important in Vietnams shifting export specialisation. The results also suggest that foreign direct investment in Vietnam reflects a similar trend with toxic intensive heavy and light industries attracting most FDI.

The paper concludes that while trade liberalisation measures have been pursued to promote economic growth in Vietnam, they have led to some potentially adverse environmental consequences. Subsequently there is the need to consider strengthening environmental policies at the time when further trade liberalisation is being contemplated through WTO. The paper suggests further improvements in environmental standards in the specific growth industries identified, to protect natural assets and public health, and to assure foreign investors concerned about corporate responsibility, particularly for the future development of the industrial and agricultural sectors.

• Full text of document
• Publisher details
• Send to a friend