WB to Support Vietnamese Businesses to Cope with Climate Change

Speaking at the dialogue, Pham Thi Thu Hang, Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI), stressed that Vietnam is one of the most vulnerable countries to climate change and sea level rise. Climate change is threatening Vietnam at many different levels and is directly impacting the economy and business opportunities. In recent years, VCCI has organised a lot of activities to raise the awareness of enterprises about the green, environment friendly economy. VBCSD has also carried out many activities of the National Programme for Sustainable Business Development and helped businesses cope with climate change while supporting businesses and business associations to formulate and implement sustainable development policies and encouraging them to propose sustainable development objectives and agenda.

 

However, she noted that finance is one of the biggest challenges for businesses now. Vietnamese businesses expect WB to support Vietnam in policy advice, technique and financial resources to effectively respond to climate change. This dialogue is an opportunity for businesses to learn about investment and business opportunities in climate change response and relevant support from the WB, as well as to make recommendations to the WB for the purpose of adjusting its support to the private sector in Vietnam within this domain.

 

WB Vice President Rachel Kyte said climate change triggers challenges but also offers many opportunities for businesses. However, the lack of information, difficult access to capital, technical assistance and policy shortcomings are the barriers to businesses to grasp opportunities and overcome challenges caused by climate change. To help businesses overcome these barriers, the international community has made efforts to support climate change-affected countries, including Vietnam. WB is one of major donors with long-term commitments in this field.

 

Business representatives from Thien Minh Group and Vietnam Northwest Clean Agricultural Product Production and Business Joint Stock Company and other representatives from State bodies said businesses with green development models have easier access to capital, but 98 percent of Vietnamese businesses are now of small and medium scales with limited financial resources and production technologies. Many businesses are aware of the necessity for climate change investment, but also they face difficulties in implementation process. They hope to have easier access to financial sources.

 

Regarding specific financial funds for businesses, Victoria Kwakwa, WB Country Director for Vietnam, said the WB has not supported any specific financial support but lightly intervened with activities like organising workshops to instruct businesses to ensure compliance with regulations promulgated by the Government. Currently, the WB is working on methods, specific activities and specific financial support for Vietnamese small and medium enterprises, applying and expanding green initiatives and better engagement in global climate change response.

 

Also in the dialogue, Rachel Kyte recommended that in spite of difficulty, Vietnamese businesses still need to make investments towards green economy and reduce emissions to the environment because this will surely bring long-term benefits, enough to compensate for initial investment costs.

 

Pham Thi Thu Hang affirmed that Vietnam is committed to working closely with the WB and other global efforts to address these challenges effectively because climate change and sea level rise are not just the matters of Vietnam but they are global issues that require the entire humanity to make joint efforts to solve.

 

Reportedly, during her trip to Vietnam, Kyte also attended a high-level conference on climate change with Vietnamese Deputy Prime Minister Hoang Trung Hai and other high-ranking officials. She also participated in the Mekong Delta Round-table Conference on coordination of development partners and took part in a dialogue with private companies on investment opportunities in climate change field.