HÀ NỘI — Vietnamese firms should focus on environmental protection and corporate social responsibility when investing abroad to develop sustainably and promote the socio-economic development of their host countries, experts have urged.

The existing legal system does not clearly state the corporate responsibility of overseas projects operated by Vietnamese firms. However, firms cannot ignore corporate responsibility if they want their projects to develop and bring long-term economic benefits.

According to Phạm Quang Tú from Oxfam Việt Nam, when investing abroad, Vietnamese firms must clearly understand the legal system about social and environmental protection, respect the cultural heritages of the host country and consult those who could be affected by their projects before implementation.

In addition, social and environmental impact reports must be conducted together, ensuring compliance with the host countries’ regulations, he said.

Deputy Chairman of the Việt Nam Chamber of Commerce and Industry Hoàng Quang Phòng said that due to a lack of awareness of international laws, host countries’ laws, the cultures and customs of local people and agreements signed between governments, a number of overseas projects had not achieved their goals.

Vietnamese firms must change their investment methods towards sustainable development and promote corporate social responsibility to avoid problems which might negatively affect their own benefits, the socio-economic development of the host country and the image of Việt Nam in overseas markets, Phòng said.

He stressed that the Việt Nam’s policies for investing abroad should be raised towards approaching the international practice to create favourable conditions for firms to improve themseves and contribute to promoting international co-operation.

“Sustainable development is an inevitable path,” Trần Thúy Hoa, head of the Rubber Development Advisory Board of the Việt Nam Rubber Association, said.

Global Witness, a non-Government organisation, urged the Vietnamese Government to strengthen the provision of instructions to Vietnamese firms on environmental and social risk management in overseas markets.

The biggest difficulty for firms investing abroad was insufficient awareness of the legal system of the host country and regulations under international conventions, said Nguyễn Thị Hải, deputy director of Đắk Lắk Rubber Joint Stock Company. In addition, firms had not yet fully assessed the risks related to the culture and customs of the local people, which existed a significant barrier, she said.

According to Định Trọng Thắng from the Central Institute for Economic Management, it was necessary to have an agency to provide instructions in investing abroad, stressing the role of business associations.

Many Vietnamese firms are eyeing overseas investments, seeing potential markets in Southeast Asia and Africa.

Statistics from the Foreign Investment Agency under the Ministry of Planning and Investment showed that Vietnamese firms invested US$432.2 million in 38 countries and territories in 2018. Laos was the largest destination for Vietnamese investment with $81.5 million, followed by Australia with $55.5 million and the US with $53 million. — VNS