ABSTRACT
Foreign investors started taking a look at Vietnam since its leaders heeded efforts of former US president Bill Clinton, who visited in 2000 to normalise relations with the former enemy. In 2000, Vietnam signed a bilateral trade agreement with the US and launched the stock market. Vietnam has become the first choice for Japanese firms operating in China that want to spread their investment exposure to another country. The Japanese firms doing business in Vietnam include such giants as Toyota Motor, Sony, Canon and Honda. According to the report, the Vietnamese government and trade unions openly urged their factories to apply for SA8000, a certification of labour standards recognised by Western clients. The World Bank reports that Vietnam’s environment is under considerable stress from rapid economic growth, urbanisation and rising human pressure on relatively scarce natural resources. ‘While it has gradually improved its environmental regulatory framework, Vietnam has very limited capacity for implementation.
