“For Vietnam, green growth is not only an inevitable choice but also an opportunity to become a pioneer in the region, catching up with the development trend of the world”, Minister of Planning and Investment Nguyen Chi Dung emphasized.
Opening speech at the 2023 Annual Vietnam Business Forum with the theme “Business community accompanies the Government of Vietnam in realizing green growth goals” on the morning of March 19, Minister Nguyen Chi Dung said economic recovery and development towards green growth, Sustainability is now a top priority and a goal that every country is working towards.
The overall goal is to achieve economic prosperity, environmental sustainability and social justice; towards a green, carbon-neutral economy and contribute to the goal of limiting the rise in global temperatures.
Recognizing the importance of green growth, Vietnam has early approached a green and sustainable development model. Accordingly, the Ministry of Planning and Investment has advised the Prime Minister to promulgate: (1) The National Green Growth Strategy for the period of 2021-2030, with a vision to 2050; (2) The National Action Plan on Green Growth for the period 2021-2030; (3) Circular economy development scheme. The tasks throughout are to develop science and technology, innovation, transform the economic model towards green economy, digital economy, circular economy, knowledge economy to participate more deeply in investment structure, trade order and global supply chain.
“This is considered the key to ensuring the successful implementation of the goals of the 10-year socio-economic development strategy for the period 2021-2030; at the same time, creating opportunities for Vietnam to continue the momentum of innovation, promote the transformation of the growth model in depth, promote quality, efficiency and sustainability”, the Minister affirmed.
In that process, the business community is identified as a key factor and plays an important role.
According to Minister Nguyen Chi Dung, in recent years, the awareness of the business community about its role in the national green growth strategy has been significantly raised, gradually changing behavior and taking many practical actions to contribute to green growth.
Many businesses have been taking “green” business as a strategy and competitive advantage; From using clean energy, environmentally friendly materials, supporting social responsibility activities, to seriously investing in modern, high-tech, environmentally friendly production lines, using less resources, energy, reducing waste and emissions…
In order to become a high-income developed country by 2045 and develop sustainably in the future, Minister Nguyen Chi Dung said that it is necessary to concentrate, synergize and consistently effectively implement the National Green Growth Strategy to implement strong international commitments, continue to affirm its role as an active and responsible member of the international community.
Sharing views with the Minister of Planning and Investment, Mr. Thomas Jacbos, IFC Country Director for Vietnam, Cambodia and Laos, also said that this is an important moment for Vietnam to transition to a green growth model and reduce climate change risks.
“In the past two decades, with a high growth rate, Vietnam has become one of the most carbon-emitting countries in East Asia,” IFC representative said.
Therefore, at COP 26, Vietnam set many ambitious targets with a commitment to net-zero emissions by 0.
However, to achieve this goal, according to Mr. Thomas Jacobs, Vietnam must have a strong transformation in energy use and environmental protection. To do this, Vietnam needs to mobilize both the public and private sectors to participate.
The World Bank Group’s (WBG) Country Climate and Development Report for Vietnam estimates that a development path that combines adaptability and Net-Zero will require additional investments of about 6.8% of GDP per year, totaling about US$368 billion until 2040. More than half of the capital ($184 billion) needed comes from the private sector.
To do this, according to IFC, Vietnam needs to improve its investment climate and relevant laws so that the private sector can participate in Vietnam’s green process faster, cheaper, and more simply.
At the same time, building power purchase contracts according to international standards to attract the participation of foreign investors, upgrading the financial market to be able to mobilize capital through green bonds, sustainable bonds…
“There are increasing opportunities to promote private sector participation in carbon markets, first through voluntary markets but then through mandatory markets once an enabling environment is fully established,” Jacobs said.