Green Economy and Sustainable Development: Which Option for Vietnam?

Green economy is the important content of sustainable development and poverty reduction. This concept was first discussed at the UN conference on sustainable development (Rio+20). This can be regarded as a specific economic system, a natural environment which is eco-friendly and safe for the society. Modernising the green economy includes four key issues: agricultural economy, industrial economy, service economy and knowledge economy.

 

According to the research, the total economic damage of environment pollution in Vietnam in recent years has been at least 1.5-3 percent of the GDP. In addition, every year, Vietnam spends US$780 million on public health because of environment pollution. Experience from developed countries shows that economic development pursued without regard for environment issues will bring about low economic efficiency and higher costs for pollution treatments than pollution control measures would.

 

According to the calculation of the United Nations Environment Programme (UNEP), the EU and the US community has created 2-3.5 million jobs by constructing green buildings. China has created 10 million jobs in recycling and renewable energy fields with revenue of US$17 billion/year. And Brazil, a leading country in South America in building a green economy, has a recycling industry with revenue of US$2 billion/year while reducing green house gas releases by 10 million tonnes. According to the World Bank, in developing countries, the needs of investment in green economy infrastructure development such as construction, energy, and transportation can be up to US$563 billion by 2030, with US$100 billion to adapt to climate change. This statistics showed that “seeding” Green economy to create green growth is strategy for sustainable development in the future.

 

In fact, a green economy does not just focus on energy producing ability, but also on the kinds of supporting technologies for cleaner production processes and the development of manufacturing and consumption market for low energy production. In the report of 25 countries and territories, most of the reviews showed that clean energy is the core issue to reach a green economy and sustainable growth. This is a growing trend and the choice of many countries in the world and regarded as a new model to address global challenges like climate change, limit natural resources exploitation, and ensure energy security and food security. Some key elements of the green economy are to develop and use renewable energy, save energy, minimise and manage waste, conserve and sustainably use available resources. With that, the green economy has the ability to create jobs in a variety of emerging and potential fields such as eco-tourism, organic agriculture, renewable energy, public transport and service environment.

 

In recent years, Vietnam has implemented many national strategies, programs and plans for sustainable development. Since 2006, 10 indicators of sustainable development have been put into socio-economic development plans. These asserted the Government’s determination in implementing the goals of economic restructuring for sustainable development and reducing the effect of climate change.

 

In fact, compared to many countries in the world, Vietnam is considered to have more advantages to develop a green economy. In the national meeting in response to the World Environment Day (June 5) and International Year of Sustainable Energy 2012, Deputy Prime Minister Hoang Trung Hai said that Vietnam has made economic policies to promote the green economy such as the law on energy efficiency and conservation, and strategy for cleaner production in industry until 2020. Currently, the Government assigns the Ministry of Planning and Investment as a consultant for Vietnam’s green growth strategy in the period of 2011-2020. These are some favourable conditions to promote green economy in Vietnam.

 

However, there are also some big challenges such as Vietnam’s economy being heavily dependent on crude exploitation and natural resources, the slow speed of technological innovation, over-consumption of fuel, under-developed infrastructure for green development, and limited public awareness of climate change.

 

The biggest difficulty is the thinking that the cost of protecting resources and environment is mostly spending cost, not “profitable” cost. According to Dr Nguyen Danh Son, Vietnam Association for Conservation of Nature and Environment, until now, many people, even policymakers, regard economic growth as priority target and natural resources as means for economic objectives. This thinking reflects the growth pattern “economy first, environment later”. Therefore, to change the thinking associated with the development of green economy in Vietnam, it’s necessary to have proof for profitable features of the costs for environment and natural resources protection.

 

Deputy Prime Minister Hoang Trung Hai said that we need to “green-ize” lifestyle, and implement sustainable consumption including sustainable urbanization, construction of new rural lifestyle in harmony with the environment. At the same time, we need to strengthen financial sources for environmental protection, mobilize and use efficiently national and international official funds for environmental protection and response to climate change towards building a green economy.

 

To cope with the challenges, many countries in the world offer the development trend of sustainable environmental development towards green economy.

Vietnam is in the group of developing countries with fast economic growth. However, its economic growth quality is still low, economic efficiency is hot high, economic development depends much in natural resources so it releases a lot of waste to the environment. To keep up with the general development trend of the world and become an industrial country in the direction of modernization and industrialization by 2020, the selection and construction of a green economy model is necessary. However, the construction of a green economy development model to match Vietnam’s circumstances and conditions needs to be further studied and discussed to have the most efficient planning.

 

Businesses play an important and key role in pursuing and building green economy. However, survey results show that 25/116 production facilities affecting the surrounding environment. Most of the production facilities lack or have sub-standard waste treatment facilities. In fact, many businesses have no interest in investment in environmental protection. This is also a barrier on the path to greening the economy of Vietnam.

To develop a green economy, Vietnam should establish green industrial zones, including developing smart growth areas and eco-industrial parks. Besides, it’s necessary to have more specific policies on tax exemption for enterprises invested in green areas to promote green manufacturing. Particularly, we need to change the mindset of “economy first, environment later” to the thinking that puts the issues of natural resources and the environment in the centre of development decisions.