In general many problems exist with the current laws

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In general, many problems exist with the current laws and regulations on environmental protection in Vietnam. None of the textiles and garment SMEs interviewed were happy with the current requirements. They all tried to respond to these requirements at the minimum level. They either try to defer the implemen- tation of the requirements, ignore them, or are willing to pay a fi ne if necessary. 5 Current Public and Corporate Governance Systems Public governance in Vietnam has two elements. First, it is concerned with the implementation of the government policy on environmental management. Second, it considers the relationships between the government and the companies regarding responsibility and accountability for environmental management. Corporate gov- ernance is the system by which companies are directed and controlled. It provides a set of rules and procedures for making decisions related to environmental management. 5.1 Public Governance Table 3 shows the different levels of environmental authorities in Vietnam. At the national level, the main authorities of textile and garment SMEs are the Ministry of Industry and Trade (MOIT) and the MONRE. MOIT is the line ministry and acts as the management agency for the textile and garment sector. This ministry promul- gates legal documents that guide the sector on professional issues, some of which relate to environmental matters. However, although MOIT has an agency (which is equivalent to a department) with a mandate for environmental protection and environmental management, the environmental issues regarding production within the textile and garment sector are still predominantly in the purview of MONRE. Environmental Adaptation by Small and Medium Sized Textile 101
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MONRE is the highest national environmental agency. It issues the circulars to implement the Law on Environmental Protection and takes responsibility for improving the environmental performance of industries via Environmental Impact Assessment appraisal and the promulgation of environmental decrees, standards, and programs. In practice, MONRE authorizes the VEA to execute the imple- mentation of environmental policies in the whole country. VEA is a subsidiary body under MONRE to advise and assist the Minister of MONRE in the fi eld of environmental management and to provide public services in compliance with the laws. At local level, the relevant stakeholders in the environmental adaptation process for Vietnam s textile and garment SMEs are the city/provincial People s Committee (PC), the DONRE, the Department of Industry and Trade (DOIT), and district and commune PCs. The city or provincial PC is the highest government body. DOIT is responsible for the sector development and DONRE is in charge of environmental issues in their city or province. Both are under the technical supervision of MOIT and MONRE, but they operate under the direct management of the city or pro- vincial PC. Similarly, the of fi ces of Natural Resources and Environment within the
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