Hanoi (VNA) - Vietnamese firms should focus on environmentalprotection and corporate social responsibility when investing abroad to developsustainably and promote the socio-economic development of their host countries,experts have urged.

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

According to Pham Quang Tu from Oxfam Vietnam, when investing abroad,Vietnamese firms must clearly understand the legal system about social andenvironmental protection, respect the cultural heritages of the host countryand consult those who could be affected by their projects beforeimplementation.

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

Deputy Chairman of the Vietnam Chamber of Commerce and Industry Hoang Quang Phongsaid that due to a lack of awareness of international laws, host countries’laws, the cultures and customs of local people and agreements signed betweengovernments, a number of overseas projects had not achieved their goals.

Vietnamese firms must change their investment methods towards sustainabledevelopment and promote corporate social responsibility to avoid problems whichmight negatively affect their own benefits, the socio-economic development ofthe host country and the image of Vietnam in overseas markets, Phong said.

He stressed that the Vietnam’s policies for investing abroad should be raisedtowards approaching the international practice to create favourable conditionsfor firms to improve themselves and contribute to promoting international cooperation.

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

The biggest difficulty for firms investing abroad was insufficient awareness ofthe legal system of the host country and regulations under internationalconventions, said Nguyen Thi Hai, deputy director of the Dak Lak Rubber JointStock Company. In addition, firms had not yet fully assessed the risks relatedto the culture and customs of the local people, which existed a significantbarrier, she said.

According to Dinh Trong Thang from the Central Institute for EconomicManagement, it was necessary to have an agency to provide instructions ininvesting abroad, stressing the role of business associations.

Statistics from the Foreign Investment Agency under the Ministry of Planningand Investment showed that Vietnamese firms invested 432.2 million USD in 38countries and territories in 2018. Laos was the largest destination forVietnamese investment with 81.5 million USD, followed by Australia with 55.5million USD and the US with 53 million USD.-VNA