Assessing the Impacts of Environmental Regulations on the Food Processing Industry in Vietnam

Le Ha Thanh ()
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Le Ha Thanh: Faculty of Environmental, Natural Resources and Urban Economics & Management, Hanoi National Economics University

No rr2010032, EEPSEA Research Report from Economy and Environment Program for Southeast Asia (EEPSEA)

Abstract: This study assesses the effectiveness of Decree 67, a key piece of the country's 'polluter-pays' environmental legislation. Industrial waste-water pollution is one of the most significant environmental problems affecting Vietnam. Although the country has implemented a range of anti-pollution legislation, the problem has not been resolved and companies continue to pollute on a large scale. This makes it important to understand why current environmental legislation is not working and what must be done to improve the situation. The study looks at the impact of Decree 67 on food processing companies in Hanoi and Ho Chi Minh City. The study finds that, although the legislation has been successful in raising environmental awareness among businesses, it has been less successful at stopping pollution. Overall, Decree 67 has had a minimal impact and is poorly implemented and enforced. The study shows that many company owners and managers have an adequate knowledge of environmental protection. It is also clear that companies do not consider environmental protection a top priority. Overall, environmental costs are not being fully internalized by businesses. The study makes a number of suggestions for how Decree 67 can be made more effective. Recommendations include reducing the scope of the legislation to make it easier to implement and a phased increased in the charges that are levied on polluting.

Keywords: waste pollution; Vietnam (search for similar items in EconPapers)
Date: 2010-03, Revised 2010-03
New Economics Papers: this item is included in nep-agr, nep-env and nep-reg
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