Donors: UNDP
Implementation: UNCTAD. STAMEQ will be the lead Government cooperating agency for this project. But support will also be provided by the Ministry of Trade, MOSTE, and MPI.
Beneficiary Countries: Vietnam
Status: ongoing

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Description:

The project will address four key issues, each of which is briefly described below.

1. The impact of environmental requirements on market access and export performance.
Environmental factors play an important role in Vietnam's efforts to achieve rapid and sustained export growth. A recent study (under RAS/92/034) indicates that a variety of environmental requirements are emerging in sectors of export interest to Vietnam. These requirements have generated market access and competitiveness concerns, for example among exporters of agricultural and fisheries products, as well as textiles and clothing. However, environmental concerns may also provide new trading opportunities to the extent that Vietnamese firms are able to take advantage of niche markets. Both the government and the business community can play an important role in avoiding negative and maximizing positive effects.

The project will identify sector-specific examples of environmental requirements having potentially negative and positive effects on market access and export competitiveness of Vietnamese firms. It will also examine how these have been addressed (successfully or not) with a view to enhancing understanding of policies and measures that the government and the business community can adopt, eventually with the support of bilateral and multilateral aid agencies, to strengthen national capacities to respond to environmental requirements.

The purpose of policy analysis under this project is to provide a general assessment of the extent to which environmental measures affect market access and export competitiveness, and to identity existing and anticipate future significant impacts which need to be addressed through appropriate policy measures.

2. Environmentally friendly products, marine resources, and eco-tourism.
A subregional workshop on environmental management of natural resource-based sectors (principally fisheries and tourism) was held in Hanoi on 25-28 September 1996 and attended by 30 Vietnamese participants. At the end of the workshop, the Ministry of Fisheries and the Vietnam National Environment Agency (NEA) expressed interest in follow up activities, including cooperation in further training and environmental policy making.

Moreover; the participants called for additional seminars on the following specialized issues:

While all the recommendations cannot be covered by this project, in the light of these recommendations and the current work program of the Diversification and Natural Resources Section, the project will undertake case studies focusing on enhancing exports of environmentally friendly-products and marine resources.

3. Trade and environment linkages: the provisions of the multilateral trading system.
As Vietnam prepares to accede to the WTO, it is important that the government and the business community gain an understanding of the issues and the relevance of WTO agreements and provisions, particularly those contained in: (a) the General Agreement on Tariffs and Trade (GATT), (b) the Agreement on Technical Barriers to Trade (TBT), (c) the Agreement on Sanitary and Phytosanitary Measures (SPS) and (d) the Agreement on Trade-Related Intellectual Property Rights (TRIPs).

The project will prepare training materials as well as conduct informal workshops to create greater awareness of trade and environment linkages, with particular reference to biodiversity and waste management, both within the government and the business sector from the perspective of the WTO agreements and provisions, focusing on deliberations in the CTE.

4. Trade implications of environmental management standards such as ISO 14001.
International standards on environmental management standards (EMS), such as ISO 14001, may create both barriers to trade as well as provide opportunities to increase competitiveness and strengthen market positions. National implementation issues are of key importance in this regard. For companies, EMS standards may be a useful tool to control the environmental effects of their activities, to achieve cost savings and to obtain other economic benefits. Although ISO 14001 is only recent, it is generally believed that developing countries have an interest in promoting its wider use.

Vietnam is adopting a proactive approach with the proposed implementation of a pilot program on ISO 14001 by the end 1998. Many questions still need to be addressed, however, particularly certification and accreditation issues and the constraints faced by small and medium sized enterprises. Another issue refers to the role of the government in promoting the wider use of EMS, for example in providing supporting infrastructure.

The project will take stock of existing experiences and ongoing initiatives in the ASEAN region, organize consultations and carry out policy analysis with a view to:

1. identifying policies and measures, particularly in the context of standard implementation at the national level, to ensure that ISO 14001 does not create an obstacle to trade for Vietnamese companies but rather assists them in strengthening market positions;
2. enhancing the effective participation of Vietnam in international standard-setting, particularly in view of the review of the ISO 14000 standards in 1999; and
3. examining the WTO implications, if any, of the ISO 14000 standards. (Needs 2 work-months, STAMEQ is the consultant identified.)

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Objectives and Activities:

The overall objective of the project is to develop a clearer understanding in Vietnam of the impact of environmental factors on trade. This will be achieved through conducting further research, providing policy advice and raising awareness trade and environment issues. The SPPD project therefore aims to:

(a) support policy analysis in Vietnam by, for example, carrying out research on trade and environment, conducting workshops, creating "policy dialogues" between trade and environmental policy specialists, and gaining experience with multi-stakeholder approaches;

(b) enhance policy coordination and policy coherence on trade, environment and development at the national level;

(c) strengthen Vietnam's national capacities to address trade and environment issues and to achieve environmentally-sound export growth;

(d) assist the business community to enhance international competitiveness in the light of environmental factors, by providing information and analyses;

(e) support the effective participation of Vietnam in international deliberations and negotiations on trade, environment and development (WTO, MEAS), and in the development of international standards in the field of the environment (in particular ISO 14000).