FDI firms strive to promote circular economic model

FDI firms strive to promote circular economic model

According to economic experts, FDI enterprises are contributing to promoting and developing the circular economic trend in Viet Nam.

With stable politics and fast economic growth, Viet Nam has become one of the world’s major investment attractions. As reported by the Ministry of Planning and Investment (MPI), Viet Nam’s FDI inflows in the first five months reached US$13.89 billion, equivalent to 83% of the value recorded in the same period last year.

MPI Minister Nguyen Tri Dung emphasized the role of FDI businesses in Viet Nam’s economic development process, especially their responsibilities for creating links and cooperation with domestic enterprises to support each other for mutual development.

The FDI sector offers an important supplementary source of capital for Viet Nam’s development investment, accounting for about 23.7% of the total social investment and contributing nearly 20% of GDP. FDI enterprises have created jobs and promoted technological innovations, while contributing to perfecting the legal corridor, improving labor productivity, and connecting production networks and global value chains.

With a strategic vision, many FDI firms have oriented their production and business activities towards sustainable development and circular economic development in the host country aiming to ensure long-term growth and enhance their brand prestige and competitive position.

In the past few years, many FDI businesses in Viet Nam have come up with initiatives to promote the circular economy, including the establishment of Packaging Recycling Organization Viet Nam (PRO Viet Nam), of which FDI and domestic enterprises are founding members.

Under a memorandum of understanding signed with the Ministry of Natural Resources and Environment, PRO Viet Nam has been set up to share the goals, visions and responsibilities among the stakeholders in promoting the circular economy in Viet Nam through the waste reduction, classification, collection and recycling activities.

Vice Chairman and General Secretary of the Viet Nam Business Council for Sustainable Development (VBCSD), Nguyen Quang Vinh, welcomed the contributions of FDI enterprises in taking the lead in applying initiatives and inspiring the business community to pursue a green growth path.

The VBCSD representative also spoke highly of a number of FDI enterprises for their proactivity and endeavor to spread the circular economic model and inspire the business community to pursue the path of sustainable development.

                                                                                                                    By Vien Nhu