Green growth - inevitable choice towards prosperity
Vietnam is determined to pursue rapid and sustainable economic growth combined with environmental protection to progress to prosperity.
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| A green, digital, and circular economy is central in Vietnam's path toward prosperity - Illustrative image. (Source: Shutterstock) |
According to experts, the path to green growth is not easy, as the awareness of the business community toward environmental protection remains 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. 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.
Moreoever, business investment in innovation, and green production practices are at an early stage. According to United Nations Development Program (UNDP)’s report, only 50% of enterprises in the fields of industrial production, transportation, and construction have applied solutions to save energy and resources.
For his part, Minister of Planning and Investment Nguyen Chi Dung affirmed that green, 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 regional pioneer, catching up with global trends. The country believes that green growth must be 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. They share the same goal of developing science and technology, innovating and transforming the economic model towards a green, digital, and circular economy for further participation 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.
Recently, a US business delegation, consisting of 50 big names in the technology industry with green production principles, including Boeing, Meta, and CitiBank, has just finished a trip to explore manufacturing opportunities in Vietnam. If new projects from these groups are implemented, it will be a testament to the more success in attracting resources, as well as marking a new stage in realising Vietnam's green growth ambitions.
(Source: VNA)
