As …..and …. have presented economic and environment issues which VietNam is facing.

I
will present how these factors affect Vietnam’s economy.
-The openness of the Vietnamese economy is very high, so the global economic recession has
a great impact on the Vietnamese economy. Exports decreased in both quantity and price due
to the world economic recession; Demand and foreign investment is down. With the current
crisis situation, capital costs become more expensive and export markets are likely to shrink,
so capital flows into Vietnam are reduced. In addition, with most investment projects in
general and FDI in particular, loan capital often accounts for a large proportion of the total
investment capital, so when financial institutions and banks encounter difficulties, many loan
contract will not be signed or cannot be disbursed. Demand decreased in both production and
consumption. Many businesses have cut back production and business plans and narrowed
their scale due to increased production costs, especially bank loan interest. Service activities
will be narrowed, especially the number of tourists will decrease. Up to now, the tourism
industry has organized many promotional programs but the overall situation is not bright.
-Inflation impacts the Vietnamese economy both positively and negatively. On the positive
side, a moderate level of inflation (less than 5% in developed countries and less than 10% in
developing countries) is often promoted to encourage a certain level of spending rather than
saving. Increased spending promotes and stimulates the growth of other economic activities,
debt investment activities are also more vibrant, businesses develop well, workers also have
stable jobs, and the unemployment rate increases. also decreased. On the negative side, when
inflation increases, interest rates must increase according to inflation, leading to economic
recession and increased unemployment. In addition, workers' income decreases because
interest and profits decline. Inflation causes the domestic currency loss value
- Labor market challenges are also a challenge for the Vietnamese economy. There is a
shortage and surplus of labor in many occupations (the imbalance between labor supply and
demand is quite large): especially the relationship between labor supply and demand between
regions and economic sectors is experiencing a serious imbalance. In addition, the rate of
vocationally trained workers is still low, skills, workmanship, physical strength and industrial
working style are still weak, so the competitiveness between urban and rural areas is low,
compared to the region and the world. Shifting the labor structure towards reducing the
proportion of agriculture and increasing the proportion of industry and services is estimated
to achieve the planned targets, but the economic sector structure is still backward. Industrial
production is still outsourcing and highly dependent on foreign countries.
Environmental issues affect the medium and long term economy
The first is the economic impact due to increased costs for medical examination and
treatment. Economic losses due to air pollution affecting people's health include: medical
examination and treatment costs, loss of working days due to sick leave, and recovery costs
after infection. , disease prevention costs... This leads to low labor productivity
The second is the damage caused by the impact on agricultural production. Water pollution is
the main cause of damage to the fisheries industry, air and ground pollution affects
agricultural and crop productivity. The quality of the sea water environment has declined due
to pollution, leading to the destruction of natural habitats for species, causing great loss of
coastal biodiversity and reduced seafood exploitation efficiency.
The third is the damage to tourism activities. The tourism industry is most affected by climate
change and ecological environment. Therefore, tourism and the environment are two
inseparable parts. Only if the environment is good can tourism develop sustainably. Waste
pollutes the environment, gives a bad impression to tourists, and reduces the attraction for
tourists, especially international tourists. The problem of environmental pollution has greatly
hindered tourism development activities, leading to a decrease in revenue from tourism.
Finally, there is economic loss due to environmental improvement costs. To achieve
sustainable growth, improve public health and minimize environmental impacts, it is
necessary to address environmental sanitation issues. Research on assessing the economic
impacts of environmental sanitation in Vietnam clearly shows that poor sanitation conditions
have serious impacts on public health. Poor hygiene is also a cause of environmental
pollution. According to this study, each year poor sanitation causes damage to GDP in the
form of costs or lost income caused by poor sanitation.