VIETNAM NATIONAL UNIVERSITY
FACULITY OF ECONOMIC

YASUKATA FUKAHORI
THE ROLE OF INTERNATIONAL AGREEMENTS IN
ENVIRONMENTAL CONSERVATION AND ITS IMPLICATION TO
VIETNAM

Major: Political Economy
Code: 62.31.01.01

DOCTORAL PHILOSOPHY OF ECONOMICS

Advisor: 1. Associated Professor, Doctor Phi Manh Hong
2. Doctor Phung Xuan Nha

HaNoi, 2008 VIETNAM NATIONAL UNIVERSITY, HANOI
COLLEGE OF ECONOMIC

YASUKATA FUKAHORI

THE ROLE OF INTERNATIONAL AGREEMENTS IN
ENVIRONMENTAL CONSERVATION AND ITS IMPLICATION TO

26
1.5.
Other Economic Theories …………………………………………….…
31
1.6.
Application of Economic Theories to Environmental Conservation……….
36
1.6.1.
Sustainability and Budget Line – Case Study for Forest Conservation…….
36
1.6.2.
Game theory scenarios and possible contribution arrangements of
international agreements ………………………………………….……….
46
1.7.
Summary of Results ………………………………………………….……
88
1.8.
Recommendations …………………………………………………….…
90
Chapter II: Environmental Conservation in Relation with Trade, ODA and
Sustainable Development ………………………………………… …………….
92
2.1
Trade Agreements and Environmental Issues ………………………… ….
92
2.1.1.
The New Politics of Trade ……………………………………… ………
92
2.1.2.

Transparency …………………………………………………….……….
109
2.3.6.
The Problem of Sovereignty and Economic Forces ………………………
110
2.3.7.
Capacity Building, Education, and International Treaties ………….……
110
2.4.
Sustainable Management of Environmental Natural Resources ……….….
111
2.4.1.
Definitions of Sustainable Development ………………………………….
111
2.4.2.
Economic growth for local welfare and conservation  Sustainable
Development
112
2.4.3.
Problems Causing Sustainable Management …………………… ………
114
2.5.
Environmental Conservation and International Agreement ……………….
116
2.5.1.
International Negotiation on Environmental Conservation ………………
116
2.5.2.
Fund Raising under the Existing International Agreements ……………….
117

CDM and Vietnam ………………………………………………………
139
3.1.4
ODA and Environment/Trade Issues for Vietnam…………………………
141
3.2.
Application of Economic Theory - Implication of ITTO Mechanisms to
Vietnam - ………………………………………………………………….
142
3.2.1.
Scenario 1 …………………………………………………………………
144
3.2.2.
Scenario 2………………………………………………………………….
151
3.2.3.
Analysis of results …………………………………………………………
156
3.2.4.
Summary of Games ……………………………………………………….
157
3.3.
Experiences in Other Countries for the comparison with Vietnam…………
160
3.2.1.
Japan ………………………………………………………………………
160
3.2.2.
South Korea ………………………………………………………….……
160

It is very timely and important in three main
reasons. First, Vietnam has just become a member of
WTO. WTO system and its rules have been often
criticized by environmentalists for the possible impact
on the relations between international trade and global
environmental assets. Therefore, Vietnam will have
to take into consideration this aspect of WTO as a
member. Second, Vietnam is expecting to face
environmental problems in the future. As a country
whose economy grows by around 7-8 per cent annually,

2
it is the natural, predicted and unavoidable course of
development. Third, the relations between trade and
environmental have newly emerged as an important
issue in the global community to which Vietnam is
rapidly being integrated.
It is of absolute importance that Vietnam is prepared
for the possible consequences of environmental degradation
and responsibilities under international agreements. This
thesis will introduce some of the possible alternative paths
that Vietnam will need to take during its economic
development process.

2. Research Background
There have been a number of studies related to the
relations between trade and environment especially in the
context of WTO Doha Round Negotiations. There are
also a number of studies related to other international
agreements such as FTAA and US-Jordan FTA. One of

negotiations are affected by environmental conservation
movements.

3. Objectives
First of all, the focus will be set on the general
mechanisms of international agreements. This approach

4
would make it clear how international agreements try to
achieve sustainable management of the global
environmental assets. The mechanisms and arrangements
adopted by a number of international agreements must be
studied carefully in order to understand the effectiveness
and impact of their projects in relation with the global
environmental conservation.
Second, the results obtained by the above studies
will be further examined with the relevant economic
theories which are introduced in the Chapter 2 of the thesis.
By applying economic theories, the roles and mechanisms
of international agreements in conservation of global
environmental assets will become clearer.
Third, the Vietnamese context will be deeply
examined. Vietnam has become a member of WTO in
January 2007 and its implication to environment needs to
be assessed properly. Apart from trade implications,
Vietnam will have to take the path of balancing between
industrialization and environmental degradation. Japan
suffered quite heavily from pollutions during the fast
industrialization process during 60‟s and 70‟s. Such
experience of Japan needs to be properly introduced to

the implication of Vietnamese accession to WTO and its
obligations related to environmental conservation will be