Vietnam provinces have become more meticulous when calling for foreign direct investment (FDI) projects, they have started to turn down projects that use outdated technologies or cause pollution as Chinese textile and garment manufacturers plan to relocate their production bases to Vietnam, which would allow them to avoid stricter requirements on environmental protection set by the Chinese government and to take full advantage of Vietnam’s upcoming membership in the TPP (Trans Pacific Partnership) trade agreement.

An official from the Da Nang City Investment Promotion Center said that the city turned down the two investors because the dyeing workshops would cause pollution. Da Nang has rejected some FDI dying factories, including one proposed by a textile & garment group from Hong Kong capitalized at $200 million and a 30-ha textile & dyeing complex suggested by a South Korean investor.

The city’s leaders said that Da Nang would focus on attracting FDI projects in the fields of high technologies, and supporting industries and services, particularly clean projects.

The southern provinces of Ba Ria – Vung Tau and Dong Nai several months ago also stated that they would refuse projects which may cause environmental pollution and use too much land.

Projects which do not show high economic efficiency or those targeting mostly unskilled workers would also be rejected.

Hai Duong province in the north, which is not listed among the localities with big advantages in FDI attraction, has also said that it has stopped calling for investment in six business fields, including dyeing, leather and rubber production. Projects that exploit natural resources, such as minerals, building materials and raw materials, will also not be accepted.

Pham Chi Lan, a renowned economist, applauded local authorities’ decisions on refusing investments in industries which cause pollution and use outdated technologies, saying that it would protect natural resources for tourism development. Lan also said that it was the right time for Vietnam to be selective on foreign investment into Vietnam.