Green Economy: Opportunity for Vietnam’s Economic Restructuring

The strong development of green economy around the world has opened a chance for Vietnam. The country’s green economy strategy is aimed to change economic structure and growth model in line with sustainability, mitigating the impact of climate change and protecting natural resources and the environment. Vietnam Business Forum had an interview with Dr Nguyen The Phuong, Deputy Minister of Planning and Investment, about the strategy in the national sustainable socio-economic development orientation between 2011 and 2020. Do Ngoc reports.

 

The strategy of green economy is part of the country’s sustainable socio-economic development process in 2011-2020. We are still collecting opinions from different ministries and agencies for the strategy to submit it to the Prime Minister. To carry out the strategy in the current context, Vietnam may face many challenges, including bad impacts of climate change as well as the unstable financial situation. Next year is forecast to be a challenging time for Vietnam which still uses undeveloped and energy-consuming production technology. Production sectors using clean energy, such as nuclear, wind, solar and biomass energy still see slow development. Meanwhile, environmental services and recycling industries remain weak. A number of environmentally-friendly production areas are in dire need of capital, affecting product quality and quantity. Furthermore, the country’s biodiversity is being seriously threatened and faces diminishing ecological systems and natural resources, particularly aquatic resources. To improve the situation, the green economy should be considered among top priorities for national sustainable development and a tool to deal with global challenges, including climate change.

 

However, this is also an opportunity for Vietnam to implement its new economic development strategy in line with the restructure because the country owns advantages in both natural and social conditions. Vietnam boasts potential for renewable energy development along with natural bounty such as Thai Nguyen tea, industrial crops in the Central Highlands region and rice in the Mekong Delta region. The nation is also home to many landscapes recognised as world natural heritage sites, which are very good for eco-tourism. Currently, Vietnam is a middle-income country with a high economic growth maintained over many years. It has succeeded in the implementation of millennium goals. The country has stable politics and has expanded ties with many foreign countries. All of these are positive factors for Vietnam’s green economy development.

 

Economic development over the two past decades shows that we have focused mainly on business and production efficiency, not ways to protect the environment. Strong economic development and growth has resulted in serious environmental problems and ecological crisis, as well as climate change. The current economic model is no longer suitable for a sustainable development strategy. Therefore, we should be more responsible for our life by linking environmental protection with economic development.

 

The ideal of green economic development was initiated in the context of the 1972-1973 energy crisis, causing bad impacts on the global economy. 40 years later, the green economy has become a target for all nations to help deal with environmental pollution.

 

The US took the lead among developed countries when it spent up to US$95 billion in its total US$700 billion stimulus package for developing renewable energy and energy-saving production. South Korea was among the forerunners in green economy in Asia. In 2008, the country issued a policy named “Green economic growth, less carbon”, concentrating on economic restructuring in line with renewable energy-based development model.

 

A number of countries in ASEAN and East Asia have put green economy into their medium and long term development programmes. China will spend around 40 per cent of its economic stimulus package on green economy development, focusing on energy efficiency and renewable energy. The country pledges to raise renewable energy use to 16 percent by 2020.

 

 Like other countries in the world, Vietnam is impacted by the global financial crises. This is the time for the country to reassess its economic development and define an economic development model suitable for its situation. The model will be applied in suitable strategies and policies in line with development conditions of different periods. The greater attention of the international community to the green economy is also a good chance for Vietnam. The country can get support from foreign countries for its economic restructuring and raise its capacity to respond to climate change. Vietnam can also learn from their experiences to work out policies for its socioeconomic development. When the country overcomes challenges, it can be more confident in global integration, and it is not too ambitious for it to develop a green economy.

 

The Ministry of Planning and Investment is drafting a plan to attract foreign direct investment into areas which benefit the community development as well as protect the environment.