Formosa Environmental Incident Causes Shocks to Vietnam Economy: Economists

The environmental pollution caused by Taiwan-invested Formosa Hung Nghiep Ha Tinh Steel Corporation has caused would result in shocks to Vietnam’s economy, said Nguyen Duc Thanh, head of the Vietnam Institute for Economic and Policy Research (VEPR) under Hanoi National University, during the announcement of the latest Vietnam Annual Economic Report on July 14. Mr. Thanh was recalling the case which Formosa discharged untreated wastewater into the sea causing massive fish death along four Vietnamese central coastal provinces some months ago. This raised concerns over Vietnam’s investment policies and its management of foreign-invested companies, Mr. Thanh said. He said that Vietnam needs to raise its capability in supervising projects that posed to harm the environment to avoid long-term environmental consequences to the country. The economist noted that if Vietnam has competent and judicious officials, Formosa needs to strictly follow environmental protection rules stipulated in Vietnamese laws and international treaties. Once doing that, Formosa will face options of either staying (with high cost for environmental treatment) or withdrawal. However, the importance is the competence and uprightness of Vietnamese officials, he said. Economist Vu Dinh Anh, meanwhile, claimed that “Investment-driven growth could be dangerous” and Formosa is one of the bad cases. In late June, Formosa admitted to poison Vietnam’s sea off four provinces from Ha Tinh to Thua Thien-Hue some months ago. It offered compensation worth VND11.5 trillion ($500 million) to help compensate economic damage and change jobs to local residents, and recover the marine environment. Formosa case has caught public indignation, saying that the recompense could not help ease part of environmental consequences that may last for generations. Moreover, the company is recently found to have buried 276 tons of waste in a garden in Ha Tinh province where the company locates. The authorities are still inspecting the case. (Vov.vn July 15, Bizlive.vn July 15)