Green growth: Opportunities and challenges

Many works to do

At the 2021 United Nations Climate Change Summit (COP 26), Prime Minister Pham Minh Chinh committed Vietnam to achieving net zero emissions by 0, reducing methane emissions. 2050% by 30, gradually reducing and eliminating coal power in the period 2030-2030, protecting forests. This commitment was reaffirmed at the COP 2040 Conference in early December 28, demonstrating that Vietnam is a responsible member, along with the international community, in responding to climate change.

In recent years, thanks to the determination of the Party and State and the outlined policies and strategies, Vietnam has achieved some initial successes in green growth. Along with strong growth momentum, green economic activities in Vietnam helped generate 6,7 billion USD in 2020 (accounting for about 2% of total GDP). These initial successes are largely thanks to investments in green fields, especially from foreign direct investments (FDI). According to estimates, in the period 2017-2021, there will be about 9 billion USD of FDI capital mobilized into green fields in Vietnam, focusing on renewable energy industries, manufacturing equipment and machinery for projects. projects in green growth areas.

Despite maintaining strong growth momentum since 2011, Vietnam's green economy is still in its infancy, with many challenges that the Government and State need to pay attention to and find directions. handle. Sharing about this issue, Associate Professor, PhD. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, said that green growth is the dominant global trend and the top priority choice for the whole world. Vietnam is also under pressure from that trend, and this is also a development direction. With a commitment to achieving net zero emissions by 0, Vietnam faces big challenges, but it is also an opportunity to receive support sources, policies, and technology to be able to "go forward". back to front”. According to Mr. Thien, to concretize the green growth strategic vision, Vietnam has approved an increasingly specific action plan, with 2050 topics, 17 task groups and 57 specific tasks, and at the same time built Build an integrated green growth index. Vietnam sets a specific goal: Becoming a developed country with a high average income (greater than 143 USD) by 12.000. That goal will have many challenges. From now until 2045, we will develop differently compared to the previous period. If it can be done, growth will surpass the cheap labor-intensive economy. Besides, when changing the way of development, Vietnam also has to withstand another challenge than many countries, which is to withstand climate change. At the same time, changing living methods and urban development pressure. Accordingly, the development method must be changed, in which green is the main priority.

According to Mr. Tang The Hung, Deputy Director of the Department of Energy Saving and Sustainable Development (Ministry of Industry and Trade), according to a normal scenario, Vietnam's total emissions by 2030 are expected to be 932 million tons, of which The energy sector accounts for 680 million tons. Therefore, achieving the Net Zero goal is a huge challenge in the economic development process. According to the recently announced Power Plan VIII, emissions by 2030 could be 250 million tons. However, along with challenges there are still opportunities, in the transition process there are two ways: restructuring to increase renewable energy, using cleaner materials, and gradually replacing materials for the 2025 vision. Vision 2030, high proportion of renewable energy, this is both a challenge and an opportunity.

Strategic solution

According to experts, Vietnam has many advantages in both natural and social and human factors, bringing great potential for green growth. These advantages include: Abundant carbon reserves come from natural forest resources, which account for more than 40% of the country's total terrestrial area. In addition to the hot and humid weather in the equatorial region, it is easy to develop tropical forests with large carbon reserves. Strong renewable energy development resources thanks to its prime geographical location in the sunny sub-equatorial area, long windy coastline... On the other hand, a large population (ranked 15th in the world) with increasing awareness high and clear on environmental and health factors, with more than 80% willing to pay more for green products. At the same time, Vietnam has a rapid growth rate in the digital economy in the region, with a digital economy market size of about 23 billion USD in 2022 and is expected to reach 50 billion USD in 2025. If you take advantage of To fully utilize the country's potential, strengths, and socio-economic benefits, the opportunity for Vietnam to successfully build a green economy is huge.

To promote the implementation of long-term, sustainable green growth orientations, according to Dr. Vu Tien Loc, Member of the National Assembly's Economic Committee, Chairman of the Vietnam International Arbitration Center - VIAC, there are eight action groups that need to be implemented, which are: Integrating important goals and orientations of the national green growth strategy, accompanied by a short-term priority action plan until 2025; It is necessary to develop a national strategy and clear roadmap for groups of important and complex green industries and fields; Projects to accelerate green growth strategies need to be implemented at the provincial and city levels; Relevant ministries, branches and agencies need to coordinate to complete a comprehensive national green classification system, consistent with international standards; Policy mechanisms that prioritize and support green projects create a premise for Vietnam to accelerate in attracting investment for green projects, especially projects that require high initial investment due to regulations. scale and complexity of new technology; Vietnam can apply the pilot project model for key green economic sectors based on international benchmarking, to test and perfect the inter-sectoral support mechanism and attract FDI capital; Developing a plan to mobilize and manage investment and financial resources for green growth in Vietnam is extremely urgent and important, in order to mobilize and manage investment and financial resources for growth. comprehensively and specifically, ensuring that the country's green growth goals are implemented and the best use of available resources; The National Steering Committee for Green Growth strengthens inter-ministerial coordination, closely follows the implementation of existing policies, plans and directions, and actively works with partners, experts and international organizations.

Regarding policy and legal solutions in the future, in the opinion of Dr. Nguyen Trung Thang, Deputy Director, Institute of Strategy and Policy on Natural Resources and Environment (Ministry of Natural Resources and Environment), is that it is necessary to continue perfecting the policy and legal system to promote green growth and development. circular economy. It is necessary to effectively guide and implement regulations on responsibilities, roadmaps and methods to reduce greenhouse gas emissions of the 2020 Environmental Protection Law and its supporting documents. In particular, special attention should be paid to developing the domestic carbon market and expanding and connecting with the international carbon market; implementing emission quota allocation; build an exchange, offset, and carbon credit certification mechanism; establish a carbon credit exchange; Build a measurement, reporting, verification (MRV) system on emissions reduction. It is necessary to develop and implement plans to reduce greenhouse gas emissions across industries and fields; Carry out inventories, and plans to reduce emissions in large emitters. To implement Net Zero, in addition to the strong determination, solidarity, consensus and consensus of the entire political system and the entire society, one of the most important tasks is to perfect the institution. , Legal policy.