Green Economy in Context of Sustainable Development in Vietnam

Vietnam is considered a country rich in “natural capital” but the effective use of this resource is currently very low and the degree of economic damage caused by pollution is high. To move towards a green economy, Vietnam must bridge gaps in human resources, technology, awareness and capital.

 

Located in the most dynamic development region in the world, endowed with more than 3,200 km of coastline, over 1 million km2 of territorial waters and a young population of more than 90 million people, let alone available natural resources, Vietnam holds a clear advantage on the roadmap to a green economy, Mr Nguyen Van Tai, Director of the Institute of Strategy and Policy on Natural Resources and Environment said at a forum entitled “Green economy in the context of sustainable development in Vietnam” held by the Ministry of Planning and Investment in Hanoi on December 13, 2011.

 

The Green Growth Strategy for 2011 - 2030, with a vision to 2050, will be submitted by the Ministry of Planning and Investment to the Prime Minister in June 2012. The strategy pinpoints three main objectives: reducing greenhouse emissions by 10 - 20 percent during 2011-2020, 35-45 percent during 2020-2030, and 100 percent of newly established business units apply clean technologies, use environment-friendly equipment, waste treatment equipment, green lifestyle and consumption styles. 

Vietnam’s renewable energy development potential by kWh/m2/year is relatively high: Solar energy: 1,300 -2,200, wind energy: 2,700-4,500 (on islands). Small hydropower capacity allows Vietnam to build more than 600 plants with a total capacity of over 1,300 MW; bio-energy, wood-based biomass and agricultural by-products reach 15 million tonnes of oil equivalent (TOE).

 

Mr Johan Kieft, technical specialist for Sustainable Development and Climate Change at UNDP Vietnam, said “brown” economic sectors are taking a large proportion and the road to a green economy of Vietnam is confronting many challenges. Particularly, GDP per capita in Vietnam is just a tenth of the world average. The using efficiency of natural resources is low, economic loss on pollution and degradation is at minus 11.54 percent, compared with minus 0.82 percent in Japan and minus 1.79 percent in South Korea. Backward, slow-changing production technologies consume much energy, turn out low-quality products, and cause environmental pollution and degradation. Besides, the growth of greenhouse gas emissions is highest in the world. Declining biodiversity loss, depletion of non-renewable resources and climate change are additional challenges on the road Vietnam must travel toward a green economy.

 

Delivering a speech at the forum, Deputy Prime Minister Nguyen Thien Nhan said a green economy is considered an economic model that can solve global challenges like climate change, depleting natural resources and energy security. This is reflected by the Vietnamese Government’s efforts in adapting growth model, restructuring the economy towards sustainable development, mitigating impacts of climate change, and associating growth with social equity, poverty reduction and environmental protection.

 

Deputy Minister of Planning and Investment Nguyen The Phuong said some countries in the world are starting with the adaptation to green economy. In Vietnam, the concept of green economy is quite new and has had limited impact in the current context. 

 

UNDP Country Director in Vietnam, Setsuko Yamazak, said that the UNDP is willing to support Vietnam in improving its quality of growth, restructuring its economy, and tackling environmental pollution. This is the only way to have a sustainable future for all citizens of Vietnam.

 

Ms Nguyen Le Thuy, Deputy Director of the Science, Education, Resources and Environment Department and Head of Sustainable Development Office under the Ministry of Planning and Investment, said: In reality, the green economy has now been defined as a core of national development policies of many countries in the world to achieve sustainable development. For example, the United States has spent US$95 billion in its economic stimulus package worth over US$700 billion to develop renewable energy and meet energy-saving production targets by 2025, aiming to bring renewable energy to 25 percent of electricity output. The European Union (EU) invested EUR105 billion in green economy with the goal of reducing greenhouse gas emissions 20 percent, and increasing renewable energy to 20 percent of total energy consumption by 2020. Germany has made great efforts to become the first industrialised country in the world to use 100 percent of green energy by 2050.

 

ASEAN countries have also brought the green economy into medium and long-term national development plans and programmes. The Philippines has issued the Green Development Programme, taken advantage of the Asian Development Bank’s support to develop recycling and low-carbon projects. Malaysia has adopted a policy to develop green technologies with four main pillars: Energy, environment, economy and society.

 

Currently, according to reports, Vietnam's main approach is restructuring the economy in a direction that helps scale down “brown economy,” scale up “green economy,” limit the use of fossil energy, and promote environmentally friendly technological innovation. Whether green-driven economy is the best way for Vietnam depends on specific policies in this trend. Deputy Prime Minister Nguyen Thien Nhan said: Maintaining the economic growth momentum, changing the economic structure, protecting the environment and preserving harmony with nature are the most important requirements for Vietnam to achieve sustainable development.