Environmental Fund in Economies with Transition: The Case of Vietnam Environmental Protection Fund

Abstract

Vietnam achieved many economic and social achievements after economic reform in 1986. However, high economic growth is going with natural resource degradation, environmental pollution and serious impacts by climate change. The Environmental Fund is an economic instrument used in countries with economies in transition to financially support environmental protection activities and contribute to the enforcement of the polluter pays principle (PPP). The article introduces the organization, management, and operation of the Vietnam Environmental Protection Fund (VEPF), its effectiveness and current challenges. Some implications are also suggested to enhance the operational efficiency of the VEPF in the context of economic transformation.