Sustainable development impacts of investment incentives : A case study of the mining industry in Vietnam

The study finds that while investment incentives in Vietnam's mining sector attract foreign capital and improve productivity, they do not currently drive sustainable behavior. Tax incentives caused substantial state budget losses between 2001 and 2006, and foreign firms showed a lack of proactive commitment to social welfare and environmental protection. The author recommends linking incentive entitlement to specific sustainable development targets and strengthening post-investment monitoring.

• Investment incentives, particularly tax incentives, were an important factor for foreign enterprises deciding to invest in Vietnam's mining and quarrying sector, though they were not a prerequisite; a transparent legal system was also considered crucial.
• Existing investment incentives have failed to act as a primary driver for sustainable development behavior, as social and environmental requirements are not as strictly enforced as other regulations.
• While foreign mining enterprises outperformed domestic ones in productivity and technology, corporate income tax incentives led to state budget losses estimated at 0.5 to 0.7 percent of the sector's industrial turnover from 2001 to 2006.
• Foreign enterprises in the mining sector provided higher employee incomes than domestic firms but neglected social welfare areas such as health care insurance, social insurance, and vocational training.
• Environmental activities by foreign mining firms were reactive and performed primarily to meet legal requirements rather than to proactively improve performance or prevent pollution.

APA

Hoa,, V. X. N. H. M. T. C. (2009). Sustainable development impacts of investment incentives : A case study of the mining industry in Vietnam. International Institute for Sustainable Development. https://www.iisd.org/publications/report/sustainable-development-impacts-investment-incentives-case-study-mining

Chicago

Hoa,, Vu Xuan Nguyet Hong,Ngo Minh Tuan,Ho Cong. Sustainable development impacts of investment incentives : A case study of the mining industry in Vietnam. International Institute for Sustainable Development, 2009. https://www.iisd.org/publications/report/sustainable-development-impacts-investment-incentives-case-study-mining.

Wikipedia

{{cite report |last1=Hoa, |first1=Vu Xuan Nguyet Hong,Ngo Minh Tuan,Ho Cong |title=Sustainable development impacts of investment incentives : A case study of the mining industry in Vietnam |publisher=International Institute for Sustainable Development |date=6 March 2009 |url=https://www.iisd.org/publications/report/sustainable-development-impacts-investment-incentives-case-study-mining |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hoa2009sustainable, author = {Hoa,, Vu Xuan Nguyet Hong,Ngo Minh Tuan,Ho Cong}, title = {{Sustainable development impacts of investment incentives : A case study of the mining industry in Vietnam}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = mar, url = {https://www.iisd.org/publications/report/sustainable-development-impacts-investment-incentives-case-study-mining}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }