Vietnamese Party General Secretary To Lam told the fourth Summit of the Partnering for Green Growth and the Global Goals 2030 (P4G), organised last week in Hanoi, that Vietnam is focused on strategic breakthroughs to prepare for a national development process that is fast, inclusive, and sustainable.

The summit in Hanoi covered areas from finance and banking to agriculture and technology Photo: Dung Minh

“We will strongly transform political commitments into practical actions, creating motivation for businesses and the whole society to participate in sustainable economic development, in which green institutions are the decisive foundation,” General Secretary Lam stressed at a hall attended by government leaders, UN representatives, diplomats, experts, and entrepreneurs.

General Secretary Lam also stressed that when it comes to green transformation, despite being a developing country with a transitional economy and limited resources, Vietnam has achieved some important results.

Besides making a 2050 net-zero commitment in 2021, Vietnam also endorsed six global initiatives at the time, on forest and land use, methane, clean power transition, sustainable food and agriculture, and more.

“Vietnam is now a leading country in supplying renewable energy in ASEAN, with wind and solar power capacity accounting for two-thirds of ASEAN’s total capacity,” he said.

“Additionally, Vietnam is also a good example of encouraging sustainable agriculture. The initiative to develop one million hectares of high-quality and low-emission specialised rice is a pioneering model that many partners and international organisations are interested in.”

A greener future

Vietnam is an active and responsible member of all multilateral mechanisms and major initiatives on green growth and energy transition such as the Paris Agreement on climate change, the Just Energy Transition Partnership, and the P4G.

“However, as a developing country with a transitional economy, we also face many challenges in terms of financial resources, technology, personnel, and resilience to the impacts of climate change and geopolitical fluctuations globally,” said General Secretary Lam.

The summit adopted the Hanoi Declaration, strongly affirming commitments to sustainable growth with people at the centre, and a determination to collaborate responsibly in addressing current global challenges. Vietnam is expected to enjoy continued support from the international community in its journey to a green economy including energy transition.

According to the World Bank, to ensure sufficient funding for responding to climate change, mobilising domestic finance is possible, but external support is needed.

Overall, Vietnam’s total incremental financing needs for the resilient and decarbonising pathways could reach $368 billion over 2022–2040, or approximately 6.8 per cent of GDP per year.

The resilient pathway alone will account for about two-thirds of this amount, as substantial financing will be required to protect the country’s assets and infrastructure as well as vulnerable people.

The cost of the decarbonising pathway will mainly arise from the energy sector - investments in renewables and managing the transition away from coal might cost around $64 billion between 2022 and 2040. All the figures are in net present value terms at a discount rate of 6 per cent.

This $368 billion in financing needs will include $184 billion from private investments or about 3.4 per cent of GDP annually, $130 billion or about 2.4 per cent of GDP annually from the state budget; and $54 billion or about 1 per cent of GDP per year from external sources.

Choi Youngsam, South Korean Ambassador to Vietnam, said that within the P4G framework, South Korea and Vietnam have completed or are currently implementing joint projects in areas such as food and agriculture, energy, water, and urban development.

“Looking ahead, both sides are expected to broaden and deepen their partnership under the P4G framework,” he said.

At the P4G Summit held in Seoul in May 2021, the two governments signed the Framework Agreement on Cooperation in Response to Climate Change, laying a solid policy foundation for the implementation of international emissions reduction ventures.

“On this basis, I hope that South Korea will leverage its technological expertise and financial resources to carry out greenhouse gas emission reduction projects in Vietnam, with both countries mutually recognising the results,” Ambassador Youngsam said.

“This would contribute to establishing a win-win model of emissions reduction cooperation. At the same time, I look forward to seeing active engagement from South Korean enterprises possessing green technologies, in close collaboration with the Vietnamese government.”

Encouraging developments

Deputy Minister of Science and Technology Hoang Minh said at a policy dialogue on the sidelines of the P4G 2025 that the active participation and strong cooperation from stakeholders - from the public and private sectors to international organisations – can help materialise Vietnam’s aspiration of an efficient and sustainable innovative startup ecosystem.

“Innovation, creative entrepreneurship and collaboration are key to solving environmental problems, while encouraging the development of a circular economy,” he said.

Vietnam currently has over 4,000 innovative startups, including two unicorns valued at over $1 billion, 11 companies valued at over $100 million, more than 1,400 startup support organisations, 202 co-working spaces, 208 investment funds, and 35 business promotion organisations. Among these, it is estimated that around 200–300 companies focus on green transition, covering areas such as renewable energy, environmental technology, sustainable agriculture, and the circular economy.

According to the Vietnamese Ministry of Foreign Affairs, hosting the fourth P4G Conference is of great significance to Vietnam. It is aimed to boost its role as a good friend, a reliable partner, and a responsible member of P4G and the international community. Moreover, it is also aimed to reaffirm its commitment to sustainable development, energy transition, and the goal of carbon neutrality by 2050. Besides that, it is aimed at contributing to raising awareness of international cooperation and encouraging the role and voice of developing countries in the sector of green growth and sustainable development.