This paper analyzed the dramatic change in Vietnam, include the economic size, structure, FDI, international trade as well as its natural environment since it adopted the open door policy in1986. In order to find out the source of its environment deterioration, it used the data of Vietnam’s GDP growth rate, trade volume and FDI stock and pollution of air, water and solid in empirical test, and to find that the factors of the open economy are the reason that cause environment problems. It than explained the influential principle of economic growth affect environment, and then provide possible suggestions for government to make proper policies of environment protection and industrial policies, so that Vietnam could develop its economy in a healthier way. |