Attracting green investment into Vietnam.

Vietnam needs $368 billion to achieve its net-zero emissions target, requiring measures to encourage green finance, smart capital mobilization strategies, and leveraging the power of public-private partnerships both domestically and internationally.

Prime Minister Pham Minh Chinh presents the emblem of hosting the 5th P4G conference to Ethiopian Prime Minister Abiy Ahmed Ali on April 17 - Photo: VNA

No single country or business can solve complex challenges like climate change, green growth, and sustainable development on its own. This is where public-private partnerships (PPPs) come into play.

This issue was discussed extensively on the second day of the Partnership for Green Growth and Global Goals 2030 (P4G) Summit, hosted by Vietnam on April 17th, with the participation of Prime Minister Pham Minh Chinh and representatives from many countries and international organizations.

International model

Speaking at the dialogue session, Mr. Alejandro Dorado (Spain's Commissioner for Circular Economy ) emphasized that this is the time to strengthen PPP models for green growth and sustainable development.

In this model, the public sector provides the legal framework, fiscal policies, investment tools, and the capacity for large-scale implementation. Meanwhile, the private sector offers flexibility, capital, advanced technology, and innovative capabilities.

Spain is a prime example of implementing the PPP model. The country has mobilized over 80 billion euros from the European Recovery Fund (Next Generation EU), with 30 billion euros allocated to the private sector through strategic projects investing in renewable energy, energy storage, green hydrogen, industrial emission reduction, and electric vehicles.

Francesco Corvaro, the Italian Prime Minister's special envoy on climate change, also emphasized the importance of the PPP model for both developing and developed countries. He cited the example of the collaboration between the national grid management company Terna and the public sector in developing a smart grid system in Italy.

Besides the central government, local governments also play a crucial role in the PPP model. The city of Milan is a prime example, where the local government collaborates with businesses to improve the public transport system.

"This is a viable direction that Vietnam can consider," Francesco Corvaro shared, affirming that PPPs not only promote innovation but also quickly meet the practical needs of society.

Completing the legal framework

Within the framework of the P4G conference on April 17th, the ministerial discussion session on the theme "Financial Innovation and Capital Mobilization Strategies for Global Green Growth" highlighted the challenges facing the green finance market in Vietnam and proposed solutions along with international experiences.

Barriers to the green finance market in Vietnam include a lack of a clear classification system, limited publication of ESG (Environmental, Social and Governance Responsibility) frameworks that do not meet international standards. Therefore, delegates proposed solutions to improve the national financial institutions, promote innovation in green finance products, strengthen the PPP model, and enhance transparency and oversight of green finance.

Lina Gandløse Hansen, State Secretary of the Danish Ministry of Foreign Affairs for Trade and Investment, believes that Vietnam will attract more investment, especially in the context of current geopolitical tensions.

She noted that Danish companies are characterized by a high level of risk-taking. However, similar to companies from most other countries, transparency and a robust legal framework are of considerable importance to the business.

Denmark already has many corporations present in Vietnam, such as Lego and Pandora, which have invested in factories. Ms. Lina revealed that many Danish businesses are eager to promote investment in renewable energy due to the demand for clean electricity. However, the legal framework remains a major challenge for Danish wind energy companies and developers when looking to enter Vietnam.

"We want clear legal guidelines and principles to move forward. For now, we've seen very positive signals from the Vietnamese government," she said, citing Power Development Plan 8 and Decree 57 on the mechanism for direct electricity trading between renewable energy power generation units and large electricity consumers.

In the context of a fragmented global economy, she believes that strategic economic linkages with all partners are necessary.

"Vietnam is such a global partner for Denmark and will become a manufacturing and logistics hub for Danish companies looking to diversify. Denmark's strengths in high technology and green technology will be useful for Vietnam in its green transition and in achieving its national development goals," she affirmed.

5 consensuses from the P4G conference

On the afternoon of April 17, the fourth P4G conference concluded with five important agreed-upon outcomes, which Prime Minister Pham Minh Chinh emphasized in his closing remarks.

Firstly, there is consensus on mobilizing finance to promote green transformation, sustainable development, and public-private partnership models.

Secondly, it encourages research and development of green technology solutions.

Thirdly, it involves transforming the agricultural and food systems to be sustainable.

Fourthly, it involves developing and training a high-quality workforce in the fields of science, technology, and innovation.

Finally, the goal is to achieve an efficient, sustainable, and environmentally friendly energy transition, encouraging private sector participation in this process.

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Source: https://tuoitre.vn/khoi-dong-dau-tu-xanh-vao-viet-nam-20250418085107139.htm