Foreign innovation activities and CO2 emissions in Vietnam

Abstract

Vietnam is an emerging economy, CO₂ emissions are a topic of interest to scientists and the Government, and innovation plays a very important role in ensuring sustainable growth. The year 1987 marked the formalization of the inflow of foreign investment into the country, from which the foreign-invested economic sector played an important role in the economic development of Vietnam. However, along with the benefits from foreign investment, there are still some shortcomings and limitations that can cause damage to the environment through CO₂ emissions. The purpose of this study is to explore the relationship between foreign innovation and CO₂ emissions in Vietnam in the period 1988-2018. Data in the study are collected from the World Intellectual Property Organization (WIPO), the World Bank (World Bank), and website: https://countryeconom y.com/. The study uses a self-regression vector model (VAR) to analyze the relationship between foreign innovation and CO₂ emissions. Research results show that there is a two-way relationship between foreign innovation activities and CO₂ emissions in Vietnam. Based on research results, Vietnam needs to have appropriate policies to ensure the goal of reducing CO₂ emissions, through policies to encourage innovation activities focusing on technological innovation using raw materials. Clean access, with little impact on the environment, thereby ensuring the goal of both growing and reducing CO₂ emissions.