Green Finance - A Positive Starting Point for Vietnam

Professor. Dr. Andreas Stoffers. (Photo: NVCC)

In recent times, Vietnam has had drastic policies and actions in the green transformation journey, towards green, sustainable and comprehensive growth . How do you evaluate this journey?

Over the past decades, Vietnam has successfully developed from one of the poorest countries in the world into a model of economic growth and a “magnet” for attracting investment in the Southeast Asian region.

Now is the time for the country to move forward, combining economic growth with protection of the natural environment.

Vietnam has strong and decisive policies towards green transformation, sustainable and inclusive growth. This effort has reaped initial successes.

However, there are still many areas that need to be "rolled up" to implement, specifically air pollution and overexploitation of natural resources.

I would like to highlight the green finance sector as a potential starting point for Vietnam. This sector is linked to compliance with green standards, carbon trading, green classification and environmental protection.

Green finance development also contributes to promoting two financial centers that Vietnam is aiming for: a regional financial center in Da Nang and an international financial center in Ho Chi Minh City. The formation of a Vietnamese financial center will create a positive spillover effect for the entire economy.

The Government has recognized the importance of digitalization for the country. I especially appreciate the decision of the Vietnamese Government on digital transformation when issuing: The National Digital Transformation Program to 2025, with a vision to 2030 and the National Strategy on application and development of blockchain technology to 2025, with a vision to 2030.

However, it is now important to continue turning green talk into action. Digitalisation, the fourth industrial revolution, smart city development and green finance are just beginning to take shape and Vietnam will certainly need support from both domestic and foreign science and business experts.

In this context, the support of members of the Partnership for Green Growth and the Global Goals 2030 (P4G) High-level Forum is essential.

The fourth P4G Summit 2025, hosted by Vietnam for the first time, took place from April 16-17 in Hanoi. (Photo: Gia Thanh)

As one of the seven founding members of P4G, what experiences have Vietnam learned from the forum members to move forward on the green transformation journey?

Vietnam has strong and decisive policies towards green transformation, sustainable and inclusive growth. This effort has reaped initial successes.

In my opinion, P4G's biggest advantage is its wide presence on four continents, with members at different stages of development. This makes it easier for parties to identify needs, support each other and find suitable development strategies.

As one of the seven founding members and an official partner of P4G, Vietnam has always actively and responsibly participated and closely coordinated with member countries to promote the forum's common agenda, vision and mission. The goal is to realize global commitments on sustainable development, green transformation and climate change response.

Vietnam has benefited from its participation in P4G. The forum has funded 12 partner projects in Vietnam, focusing on areas such as digital solutions for water management, energy transition, urbanization, industrialization and sustainable agriculture. Some notable initiatives include the expansion of rooftop solar power and the reuse of waste as alternative fuel.

Through this support, Vietnam has been promoting sustainable agriculture, energy efficiency and the circular economy, while learning from the experiences of pioneering countries such as the Netherlands or Denmark and contributing its own ideas.

Vietnam has been promoting sustainable agriculture, energy efficiency and circular economy (Source: Rural Economy)

In the future, what recommendations do you have for Vietnam to continue its green transformation journey, towards green, sustainable and inclusive growth?

P4G is the world's leading forum for promoting public-private partnerships, connecting governments, businesses and socio-political organizations, together providing breakthrough solutions for green growth, contributing to the implementation of the 2030 Sustainable Development Goals.

The forum’s mission is in line with global green initiatives. Therefore, the recommendation I can make to Vietnam is to continue its efforts to achieve a green transition.

However, it is important to remember that only an economically strong country can mobilize financial resources to support the green transition journey. That is why Vietnam's economic development towards the goal of becoming an industrialized country by 2045 must go hand in hand with green transition.

Prerequisites for the country's economic rise are adherence to free trade, investment protection, the soundness of state finances and a Vietnamese-style market economy.

It is an undeniable fact that “a dollar can only be spent once.” In this context, prioritizing environmental protection — from clean water, water and waste treatment, to air pollution control and biosphere preservation — is inevitable.

However, focusing exclusively on these issues is not the only way to achieve Environmental, Social and Governance (ESG) goals. I would add two additional goals for Vietnam to consider: protecting property rights and individual freedom.

On the road to a green future, Vietnam needs to implement priorities to become a model in both economic growth and environmental protection in the Asia-Pacific region.

Thank you!

The fourth P4G Summit is expected to be chaired by Prime Minister Pham Minh Chinh, with the scale of welcoming about 800-1,000 domestic and international delegates. In addition to leaders of the Government, ministries, central and local departments, and large enterprises of Vietnam, the Summit will welcome senior leaders of P4G member countries and international organizations that are partners of P4G.

Representatives of leaders of countries, international organizations, corporations, businesses, financial funds, and large investments from the Government and private sector in the fields of growth, green transformation and climate change also attended the Conference.

Source: https://baoquocte.vn/tai-chinh-xanh-diem-khoi-dau-tich-cuc-cho-viet-nam-310676.html