Green growth - inevitable choice towards prosperity

Vietnam is determined to pursue rapid and sustainable economic growth combined with environmental protection to progress to prosperity. To reach that goal, green growth is the inevitable choice.

According to experts, the path to green growth is not easy as the awareness of the business community toward environmental protection is at an early stage.

In a survey conducted by the Vietnam Federation of Trade and Industry (VCCI), although environmental pollution has seriously affected production and business activities, enterprise comprehension of environmental regulations remains modest. Only 31.8% of private enterprises said they understood environmental regulations, but up to 68% of enterprises said they were negatively affected by climate change.

There is a lack of human resources in Vietnam with adequate knowledge of environmental laws and regulations. In particular, investment in green production and operations in an environmentally friendly direction is capital intensive, which affects short-term competitiveness. Some 44% of domestic enterprises and 38% of foreign-invested enterprises admitted that they have not fully complied with environmental regulations.

In addition, business investment in innovation, and green production practices are generally at an early stage.  According to a report from the United Nations Development Program (UNDP), only about 50% of enterprises in the fields of industrial production, transportation, and construction have applied solutions to save energy and resources.

Minister of Planning and Investment Nguyen Chi Dung affirmed that green and sustainable growth is currently a top priority and a goal that all countries are aiming for. For Vietnam, green growth is an opportunity to become a pioneer in the region, catching up with global trends.

He said Vietnam believes that green growth is based on science, and innovation, taking advantage of new technologies, protecting the environment, and effectively responding to climate change.

The country should create an appropriate mechanism to mobilise and optimise resources, encourage the private sector to participate in green economic development, use various types of renewable energy such as wind power, and solar power, reduce emissions, and strengthen international cooperation. It should also focus on green growth and sustainable development, the minister added.

Recognising the importance of green growth, the Prime Minister issued the National Green Growth Strategy for the period of 2021-2030, with a vision to 2050, along with a national action plan on green growth for the period 2021-2030 and a circular economy development scheme, which all share the same goal to develop science and technology, innovate, and transform the economic model towards a green, digital, and circular economy in order to participate more deeply in the global supply chain.

According to the Ministry of Planning and Investment, the State can only meet 30% of resources for green growth. Therefore, mechanisms are needed to promote domestic and foreign financial institutions as well as the private sector to participate in green growth goals.

In order to diversify resources, a US business delegation, consisting of 50 big names in the technology industry with green production principles, has just finished a trip to explore manufacturing opportunities in Vietnam. The businesses include Boeing, Meta, and CitiBank which are dubbed as the "eagles" in the fields of telecommunications, aviation, semiconductor, and finance.   If new projects from these groups are implemented, it will be a testament to the new success in attracting resources as well as marking a new stage in realising Vietnam's green growth ambitions./.