Green energy transition is an apparent trend of the new era

Deputy Director of Department of Energy Efficiency and Sustainable Development, Ministry of Trade and Industry Mr Trịnh Quốc Vũ. (Photo: Petrotimes)

Economic development in orientation of greening or green growth has been paid special attention by the Party and State, since then, many orientations and strategies have been issued. How do you assess the prospect of green economic development and sustainable development in Vietnam?

In 2021, in issuance of Vietnam's National Green Growth Strategy 2021-2030, Vietnam stated that green growth contributes to promoting economic restructuring, associated with growth model innovation, improving competitiveness and resilience to external shocks, and realizing Vietnam's socio-economic development strategy 2021-2030.

In addition, green growth is an important approach to realize sustainable development, directly contributing to the reduction of greenhouse gas emissions towards a carbon-neutral economy in the long term.

People-centered green growth helps to reduce human vulnerability to climate change; encourage the responsible lifestyle of each individual towards the community and society, orient the future generations to a green living culture, and form a civilized and modern society in harmony with nature and the environment.

At the same time, green growth is the noble cause of the entire political system, the entire people, the business community and related agencies and organizations, as promoted by the spirit of innovation and the aspiration for national development with prosperity and sustainability.

Moreover, green growth helps the whole society to invest in advanced technology, digital transformation, and smart and sustainable infrastructure.

Regarding the sustainable development, Vietnam issued a National Action Plan to implement the 2030 Agenda for Sustainable Development with very lucid views on the economic development pillars.

Thus, the spared room could be felt promising for the implementation of green growth and sustainable development solutions in Vietnam to transform the economy towards green and sustainable one.

How do you see the advantages and challenges for Vietnam in the implementation of green growth and sustainable development goals? Will the green growth expectations overwhelm the challenges, sir?

At the 13^th National Party Congress, the Party commented that the trend of the world, digital economy, circular economy, green growth are the model chosen by many countries.

Meanwhile, the position and strength of the country after 35 years of renovation has grown much stronger in its scale and competitiveness of the economy both; socio-political situation, macroeconomic stability, the growing confidence of the business community and society; improved autonomy; the improved capacity of governance, administration of socio-economic development. Thus, the prestige and position of the country is increasingly consolidated in the international arena.

The quality of economic growth has been gradually improved, the economic structure has initially shifted profoundly, and the efficiency of using input factors for the economy has been significantly improved. The labor force is abundant, and able to adapt well to scientific and technological changes.

The economic integration is becoming more and more extensive, given the participation in a number of important new-generation free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP) and the Vietnam-European Union (EU) Free Trade Agreement (EVFTA), require stronger economic institutional reforms, creating opportunities to open up the market, for further investment into industrial development and industrialization.

The private sector contributes more to the country's economic development. The domains of culture, society, environment, national defense, security, and foreign affairs are well attended to bring about positive changes; the middle class is growing rapidly; there is still a an opportunity of golden population structure; New rural construction achievements have been consolidated. The people's lives in all aspects have been continuously improved.

These are the basic advantages for Vietnam adamantly to implement the national model of green economic development and sustainable development.

Besides the advantages, Vietnam also faces challenges such as the Fourth Industrial Revolution, which has a rapid and profound impact on all aspects of economy, culture, society and environment.

In parallel, green growth must rely on modern institutions and governance, advanced science and technology, highly qualified human resources, relevance to the international context and domestic conditions.

Technological progress can change the nature of global trade, investment and labor, creating opportunities for latecomers to accelerate the development, but it can also cause production steps to reverse back to developed countries, which may limit the global capital mobility.

In addition, the challenges of climate change, environmental degradation, drawbacks in efficient and sustainable exploitation and use of water, natural resources, land and treatment of environmental pollution are foreseen to exert a heavy impact on development. economy and society, posing increasingly urgent demand on strengthening the cooperation in handling many unprecedented problems and challenges in the rapid and sustainable development.

Green growth helps to reduce people's vulnerability to climate change. (Photo: VGP News)

With the declaration that Vietnam will realize net zero emissions by 2050, the energy economy has to shift to renewable energy, green energy, as it is an apparent and strong trend in the new period.

On the basis of the recognition of the general trend of the world, the achievements of the Vietnamese economy today as a foundation to be relied on for confirmation that the above challenges have been clearly identified and specific solutions have been proposed. to pass at the National Strategy on Green Growth and the National Action Plan for the Implementation of the 2030 Agenda for Sustainable Development issued by the Prime Minister.

EU is one of the leading partners of Vietnam, how do you evaluate the cooperation between the two sides in promoting green growth goals?

The EU is currently Vietnam's leading trading partner and the third largest export market and the fifth largest import market of Vietnam.

With its development experience, the EU has many lessons learned and good practices in production, business and development orientation, associated with green, clean and sustainable criteria. This is an inevitable global trend and a mandatory path for businesses to deeply participate in new value chains.

Accordingly, the efforts to green production, protect the environment, as well as implement social responsibilities should be focused and further promoted in Vietnam when joining the EVFTA Agreements and EVIPA next.

With great advantages from these Agreements, Vietnam has favorable conditions in attracting investment capital, technology transfer, and projects as support from EU partners to promote the economic structure toward green and sustainable directions, including the use of clean energy, renewable energy, high-tech transformation in production, helping Vietnamese goods meet EU technical and environmental standards, to participate in a sustainable, mutually beneficial supply chain with the EU.

Within the scope of management, the Ministry of Industry and Trade will continue to support businesses of both sides to access the desired market, taking the advantage of the EVFTA Agreement to promote trade, connect investment, and accompany the common business community in building a diversified and sustainable supply chain.

Especially, in the field of green transition and energy transition in Vietnam, the EU side encourages the development of green energy sources, renewable energy, jointly implements a roadmap to reduce carbon emissions. The EU can support, strengthens the capacity of Vietnamese enterprises to comply with strict environmental standards to meet the style of green and sustainable consumption in Europe.

Over the past time, the EU and Vietnam have been continuing to closely cooperate and support Vietnam in implementing the Green Growth Strategy, transforming the economy into a sustainable green one.

In particular, in the energy sector, the two sides are currently implementing the "Vietnam-EU Sustainable Energy Transition Program" (SETP) with a total fund of 142 million Euros for a phased implementation from 2021 to 2025.

Thank you Sir!