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Green Growth: Vietnam’s Inevitable Choice for Sustainable Development

29 November, 2024

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Green Growth – A Global Trend and Inevitable Choice

Green growth is not only a goal but also a strong commitment made by Vietnam to the international community to minimize negative environmental impacts and strive towards the Net Zero target by 2050.

Green Growth is the Government’s Strategic Orientation

At the seminar, Mr. Le Viet Anh, Director of the Department of Science, Education, Natural Resources, and Environment (Ministry of Planning and Investment), shared that the government has issued the National Green Growth Strategy for the period of 2021-2030, with a vision towards 2050. Along with this, national action plans are being developed to promote the application of green solutions in all economic fields.

This includes financial and non-financial incentives for businesses participating in this process, such as tax incentives, access to finance, and regulations on interest rates… to implement sustainable development projects.

Regarding the impact of new-generation free trade agreements on promoting green growth in Vietnam, Mr. Quach Quang Dong, Deputy Director of the Department of Energy Saving and Sustainable Development (Ministry of Industry and Trade), said that the FTAs that Vietnam is currently participating in, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-EU Free Trade Agreement (EVFTA), not only open up export opportunities for Vietnamese enterprises but also require them to improve product quality and meet stricter environmental standards.

This poses a great challenge for businesses in maintaining their competitive advantage in terms of price while complying with international environmental standards. Therefore, transitioning to a green growth model is not only a trend but also an inevitable requirement for Vietnamese enterprises to integrate and sustainably develop in the global economic environment.

Accompaniment of Local and Business Communities

Green growth requires not only efforts from the government but also the companionship and creativity of local governments and business communities in developing green business models and building a long-term sustainable development strategy, towards a green and prosperous future for the country.

From a business perspective, Mr. Binu Jacob, CEO of Nestlé Vietnam, shared Nestlé’s investments in sustainable development in Vietnam. Nestlé always considers sustainable development as a top priority.

One of Nestlé’s notable initiatives is ensuring sustainable raw materials. For coffee – the company’s strongest product line, Nestlé ensures that all coffee purchased from Vietnamese producers is of high quality and sustainably produced.

Through the NESCAFÉ Plan program, Nestlé has supported more than 21,000 coffee farming households in transitioning to regenerative agricultural practices, reducing the use of chemical fertilizers and pesticides by 20%, and saving 40-60% of irrigation water. Nestlé also saves water usage in all its factories. Currently, Nestlé achieves 100% water neutrality, meaning it returns and replenishes 100% of the water it uses. To promote a circular economy, Nestlé is committed to sustainable packaging, with nearly 95% of its packaging in Vietnam designed to be recyclable…

These activities not only help Nestlé reduce its environmental impact but also raise community awareness and encourage other businesses to engage in sustainable development.

At the local level, following the direction of the Government and the Prime Minister, Hung Yen province has shifted from a brown economy to a green economy.

Mr. Nguyen Hung Nam, Vice Chairman of the Provincial People’s Committee, said that Hung Yen has actively implemented synchronous solutions to promote sustainable growth. The province focuses on infrastructure development, investment attraction, and administrative procedure reform to facilitate business operations.

Hung Yen has implemented important infrastructure projects such as the traffic system connecting industrial parks and invested in infrastructure such as water supply, electricity, and social housing for workers. Environmental protection programs have also been implemented, such as the project on sustainable agricultural development and greenhouse gas emission reduction…

These results have helped Hung Yen to develop its economy robustly while protecting the environment and contributing to Vietnam’s overall commitment to green growth.

Building a Legal Framework for Sustainable Development and Green Growth

However, the delegates also acknowledged that the current process of sustainable and green growth still faces many barriers and challenges. Businesses cannot identify what incentives they will receive, which affects not only their investment decisions but also their motivation to transition to a sustainable and green business model.

Changing technology lines or investing in green technology can be costly. In addition, the lack of financial resources to support the green transition is also a significant obstacle…

Regarding solutions for the future, from a business perspective, Mr. Binu Jacob believes that “more needs to be done.”

First, the legal framework should be improved to further promote green and sustainable growth. Second, human resources development is crucial to implementing sustainable and green development. Finally, local initiatives and models are essential, as the successful models of sustainable and green growth that we often see globally need to be adjusted to fit the local context rather than being replicated wholesale.

From the perspective of the industry and trade sector, Mr. Quach Quang Dong suggested that mechanisms and policies should be based on assessments and evaluations and should recognize, encourage, and support sustainable consumption and production towards green and clean goods and services. It is necessary to create incentives for pioneering enterprises to take the lead and set an example for others to follow.

To support businesses, the government and ministries need to supplement and improve mechanisms and policies that respond to the new context and situation in the world, while protecting the legitimate interests of businesses, creating favorable conditions for their development, and limiting risks. Closer coordination between ministries and between central and local authorities is also essential…

Representing the Ministry of Planning and Investment, Mr. Le Viet Anh affirmed that one of the government’s critical tasks for the future is to complete the legal framework for sustainable development and green growth.

In particular, he emphasized the importance of the national green classification system. This system is crucial in determining criteria and standards for green businesses and investment projects.

The Vietnamese government has provided clear directions on building this system, and relevant ministries and agencies are coordinating to develop a green classification system that meets international standards while ensuring flexibility to accommodate new technologies and green business models.

Nhat Quang