VietNamNet Bridge – Truong Manh Tien, head of the Viet Nam Environment Protection Fund (VEPF), spoke to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about giving firms financial support for environmental protection.

Vedan Ltd, Co, if its project costs $500 million, has to allocate 20 per cent of the amount to prevent environmental pollution rather than just $5-10 million. Steel makers must earmark 10 per cent.

It has given priority to the Dung Quat Economic Zone in Quang Ngai Province and the Sinh Nghia Waste Treatment Company in Thua Thien-Hue city Province, providing them loans of VND20 billion ($1.2 million). Other companies can borrow VND200-500 million ($12,000-30,300).

So far, VEPF has provided loans worth VND125 billion ($7.5 million) to 40 projects.

What is the maximum a company can borrow? How about other conditions?

VEPF can lend up to 70 per cent of a company’s or project’s investment. For instance, if a project costs VND100 million, VEPF can lend up to VND70 million.

VEPF gives priority to projects to protect the environment, using natural resources sustainably, and preserving bio-diversity. [But] all of them must have assets for collateral and legal capital provided by the State.

It has also lent to 500 enterprises participating in a project to use power effectively and economically.

The Government has assigned priority to projects and companies named in Decision 64. But with a large number of polluters, VEPF has only provided support to urgent projects like treating pollution in the Cau, Nhue-Day, Dong Nai, Han, and Huong rivers.

Recently, following Decision No 35, the Government provided an additional VND300 billion ($18.2 million) to VEPF. VEPF also gets revenues from other sources like charges for environmental protection and natural resources exploitation, fines for environmental damage, and donations.

What is your assessment of the funds that enterprises earmark for environmental protection?

Depending on their products, firms must earmark a certain percentage of their total investment for environmental protection.

Vedan Ltd, Co, if its project costs $500 million, has to allocate 20 per cent of the amount to prevent environmental pollution rather than just $5-10 million. Steel makers must earmark 10 per cent.

Many enterprises do not invest enough money now in protecting the environment.

Do the violations by Vedan, Hyundai, and Vinashin show that the firms’ lack of responsibility for environmental protection has fallen to alarming levels? Do they put profit above their responsibility?

Perhaps not all enterprises put responsibility above profit, but many still run after profits. They care nothing or very little for environmental protection. It is one of the reasons why the environment is deteriorating.

Vedan’s violations show that enterprises have not yet placed environmental protection at the top [of their agenda]. They not only chase profits but also ignore their responsibility towards people and the community. Moreover, the ecosystems could disappear in polluted regions, and you will never get them back.

In my opinion, enterprises’ responsibility towards environmental protection has descended to an alarming level. And their violations show they intentionally discharge waste into environment.

(Source: Viet Nam News)