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

Author

Listed:
  • Le Ha Thanh

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

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.

Suggested Citation

  • Le Ha Thanh, 2010. "Assessing the Impacts of Environmental Regulations on the Food Processing Industry in Vietnam," EEPSEA Research Report rr2010032, Economy and Environment Program for Southeast Asia (EEPSEA), revised Mar 2010.
    • Handle: RePEc:eep:report:rr2010032
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    File URL: http://www.eepsea.org/pub/rr/12698358251Le_Ha_Thanh_2009-RR8.pdf
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    References listed on IDEAS

    as
    1. José Féres & Arnaud Reynaud, 2005. "Assessing the Impact of Environmental Regulation on Industrial Water Use: Evidence from Brazil," Land Economics, University of Wisconsin Press, vol. 81(3).
    2. Le Quang Thong & Nguyen Anh Ngoc, 2004. "Incentives for Wastewater Management in Industrial Estates in Vietnam," EEPSEA Research Report rr2004084, Economy and Environment Program for Southeast Asia (EEPSEA), revised Aug 2004.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    waste pollution; Vietnam;

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