Vietnam’s Outward Foreign Direct Investment: Alignment with Environmental Policies and Pursuit of Carbon Neutrality Goals

This study examines the impact of Outward Foreign Direct Investment (OFDI) on CO 2 emissions in Vietnam (1991-2023) using the Autoregressive Distributed Lag (ARDL) model, an econometric approach designed to analyse both short-run and long-run relationships between variables with different integration orders. Results indicate OFDI has no statistically significant effect on emissions in either timeframe, with insignificant coefficients. While GDP per capita shows a negative long-run association — aligns with Vietnam’s 2021–2030 National Climate Strategy, which emphasizes promoting GDP growth through low-carbon sectors. Based on these findings, the author proposes policy reforms to align OFDI with climate goals, including green investment incentives and cross-border renewable energy partnerships.