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Vietnam can attract 10 billion USD/year from green investors

VietNamNetVietNamNet22/03/2024

In an interview with VietNamNet, Professor Ha Duong Minh, a French-Vietnamese scientist specializing in environment and development, expressed his views on the important strategies, policies and initiatives that Vietnam should prioritize to achieve sustainable development while maintaining social welfare and promoting international cooperation. How does the professor assess Vietnam's role in the global context towards sustainable development? In my opinion, Vietnam can be considered a model country in socio-economic development and we also have the conditions to become a typical example in the world of sustainable development. With its strategic location, vibrant economy and commitment to green growth, Vietnam could be a success story in both rapid economic development and the transition to a low-carbon economy . By tapping into its abundant renewable energy resources and collaborating with international partners, Vietnam can inspire other developing countries and demonstrate that a green economy is not only possible but also prosperous. With your knowledge and experience in sustainable development economics, what strategies do you think are necessary for Vietnam to develop in a rapidly changing context? How can Vietnam take advantage of green finance (investments that have a positive impact on the environment - PV) from international investors to develop a green economy and create sustainability? I think there are three main strategies for Vietnam to build a prosperous green economy: One is to simplify regulations/processes to encourage investment in natural energy sources. Two is to train human resources with the necessary skills for jobs in environmentally friendly industries. Three is to cooperate with other countries to get funding, experience and technology for environmental projects. By creating an attractive environment for green investment, Vietnam can attract the necessary capital - more than 10 billion USD per year - for clean energy and sustainable infrastructure projects. It is often said that “Don’t wait for opportunities, create them yourself”. What policies and initiatives should Vietnam prioritize to achieve sustainable development without compromising social welfare? A reasonable plan to transition to cleaner energy will ensure that everyone benefits. There is a Vietnamese saying: “One tree alone cannot make a forest, three trees together can make a high mountain”. Vietnam should prioritize comprehensive policies that promote both environmental sustainability and equity for relevant communities and industries during the transition. For remote communities, connection to the national grid remains an important factor for socio-economic development. However, local clean energy production activities such as small hydropower or solar power are also increasingly proving to be cost-effective. Workers in carbon-intensive industries around the world are proposing programs to support the transition to low-emission industries. The offshore oil and gas industry has a viable development direction in offshore wind power. For the coal power industry, we need more time to transform because the power plants are quite new. The social security system needs to be maintained and improved, especially in terms of the ability to pay for energy costs for poor households. What specific actions do you recommend for Vietnam to achieve breakthrough success? Just as the reforms of the Doi Moi process helped unleash Vietnam’s economic potential, a bold and innovative approach to the energy transition can drive breakthrough growth. In my opinion, Vietnam should focus on implementing its energy development plan, rapidly deploying proven renewable energy projects such as solar and wind, with the goal of installing solar PV systems on more than half of its rooftops by 2030. Piloting innovative solutions such as large-scale battery storage and smart grids is important. Encouraging the development of an ecosystem for cleantech startups and innovators is also essential. As an expert on the energy transition, should Vietnam expect a breakthrough in attracting investment in power source conversion? What should Vietnam do to attract investors in the renewable energy sector? With the right policies, Vietnam has great potential to attract investment in renewable energy. We have abundant solar and offshore wind resources and promising clean energy development goals. Now is the time to “talk the talk and act the walk”. The key to attracting investment is to reduce risk, as this directly leads to a lower cost of capital. This should be realised by implementing specific and stable policies. Once the first projects are effective, a series of bankable projects will follow. By demonstrating a clear commitment and creating a favorable investment environment, Vietnam can tap into the green capital wave. What opportunities do you see for promoting scientific and technical cooperation between Vietnam and France/Europe in the energy sector? Promising opportunities for Vietnam-France/Europe clean energy cooperation include joint research and development (R&D) programmes on smart grids, green hydrogen, floating solar power and rooftop solar power for agricultural production. It is also important that organisations such as the AFD (French Development Agency) provide technical support and capacity building for Vietnam's energy sector, through projects and corporate funding. The Vietnam Energy Partnership Group, which includes European partners, is a major contributor and is always looking for interesting proposals and qualified experts for sustainable energy transition projects in Vietnam. Investment cooperation in large-scale renewable energy projects, such as the cooperation between EDF (Electricity France) and EVN (Electricity Vietnam) in the thermal power and renewable energy sectors in Vietnam, can also accelerate the energy transition. As the French poet Victor Hugo said: “Where great ideas meet great will, nothing is impossible”. In your opinion, how can we facilitate the cooperation between businesses and the scientific community of the two countries and share knowledge in the energy sector? I think that to promote Vietnam-France/Europe business and scientific cooperation in the energy sector, we need to: First, support human resource exchanges and joint innovation centers. Second, unify standards and limit barriers to technology transfer. Third, propose incentives for cross-border energy partnerships. Proactive efforts to connect innovation ecosystems can accelerate knowledge sharing for the common good. We Vietnamese have a saying: "Vietnamese intelligence can stand shoulder to shoulder with the world powers". How can we inspire young people in Vietnam and France to engage in the energy sector and drive new breakthroughs? Young people need to be educated enough to drive the breakthroughs needed for a sustainable energy system in the future. Inspiring young people to participate in the energy transition requires raising awareness of the importance of and interest in clean energy careers. The Student Forum on Sustainable Energy in Hanoi in January 2022 is an example of this inspiration. Investing in STEM education and reskilling programs tailored to the needs of the clean energy sector is essential because collective enthusiasm can overcome many challenges and inertia. It is also important to create a platform for young innovators to develop and scale up new ideas, such as the New Energy Nexus Vietnam Program in Ho Chi Minh City. How can Vietnam work with international partners to tackle climate change on a global scale and achieve its climate goals, making it not just a “player” but also a “game changer” in addressing climate change? Vietnam can be a game changer in climate action by demonstrating the socio-economic benefits of a rapid clean energy transition for developing economies; advocating for more ambitious climate policies and support for vulnerable countries in international forums; and forming alliances with other global climate leaders to jointly invest in climate adaptation and mitigation solutions. The fact that Vietnam is the third largest solar market in the world in 2020 is encouraging, but also gives us something to think about. By punching above its weight, Vietnam can drive bold global climate action. What is your view on supporting and training high-quality human resources in the energy sector in Vietnam to meet the country’s development needs? Building a clean energy workforce in Vietnam is critical to meeting its development needs. We need to update curricula and expand energy programs in universities and vocational schools; establish advanced national centers for energy research and innovation, such as those in offshore wind and solar energy storage; and develop partnerships in the energy sector and vocational training to provide hands-on training. A comprehensive approach to human resource development will ensure Vietnam has enough high-quality workers to drive its energy ambitions. President Ho Chi Minh once said: “Study to work. Study to serve the Fatherland, serve the people, make the people rich, the country strong”. With that spirit, I personally always look for opportunities for academic cooperation. Please contact me if you need an engineering-economics professor, an expert in clean energy and sustainable development.
Professor Ha Duong Minh established the Clean Energy and Sustainable Development (CleanED) laboratory at the University of Science and Technology of Hanoi (USTH) in December 2014. In particular, he is the main author of the IPCC Assessment Reports 4 and 5, co-awarded the Nobel Peace Prize in 2007. Professor Ha Duong Minh will be one of 100 outstanding Vietnamese and Vietnamese-origin people from more than 20 countries, with global influence in all fields, participating in the Influential Vietnamese Forum 2024 - VGLF 2024 initiated by the Global Vietnamese Scientists and Experts Organization (AVSE Global), taking place in Paris, France at the end of March. VGLF 2024 brings together 100 influential Vietnamese and Vietnamese-origin people in the world, aiming to create a community, connecting outstanding individuals from various fields, to together seek a new direction for Vietnam through connecting intellectual elites, connecting Vietnam and the world.

Author: Thai An - Tuan Anh

Design: Nguyen Ngoc

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