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Vietnam Implements Wto Commitments on Environmental Service
POSTED: 2:06 p.m. EDT, January 27,2007

Environmental services is one of 30 major issues Vietnam committed to implement once it officially became a member of the World Trade Organisation (WTO).

The services chiefly cover treatment of rubbish and waste water, cleaning exhaust fumes, tackling noise issues, and assessing environmental damages.

With Vietnam now a member of the WTO, foreign investors are allowed to set up four-year-long joint ventures with Vietnamese partners and hold 51 per cent of capital in condition they supply environmental services. At the end of the fourth year, they are free to choose their own forms of legal entity for operating in Vietnam.

Foreign investors must, however, abide by a number of regulations put forward in the commitment table when supplying environmental services in Vietnam. They are not allowed to supply several kinds of services that Vietnamese private businesses monopolise, such as directly collecting rubbish from local households, or get access to sensitive areas in Vietnam.

The Ministry of Natural Resources and Environment has reviewed all commitments on environmental services, current regulations on management of environmental services, environmental standards, and environment-related trade activities.

The ministry has also adjusted existing regulations and developed new ones in conformity with the country's commitments to the WTO.

On the other hand, Vietnam has conducted surveys on the environmental services sector and defined capacities and operation forms of businesses operating in this field, including private, state-owned and foreign-invested enterprises.

According to environmental experts, it is necessary for Vietnam to finalise its legal system and management mechanism for environmental services, map out a strategy to develop the environmental industry and expand environment-related services and goods.

Encouraging the involvement of the whole society in environmental protection is also a must in order to increase the efficiency of environmental services suppliers, said experts.

From:Asia-Pulse
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