The global shift towards a greener economy

According to the World Meteorological Organisation (WMO), 2023 was recorded as the hottest year in history, with the global average temperature 1.45°C above pre-industrial levels.

At the same time, rising sea levels, biodiversity loss, pollution, and land degradation are jeopardising environmental security, public health, and socio-economic stability.

In response, nations are restructuring their economies to reduce greenhouse gas emissions, expand renewable energy, and encourage sustainable production and consumption. These measures not only foster resilience to climate change but also limit long-term environmental risks.

Global agreements and mounting international pressure have forged strong legal frameworks and political commitments to accelerate the transition to green economies.

The 2015 Paris Agreement aims to cap temperature rises at 1.5–2°C above pre-industrial levels. It requires each country to submit its own emissions reduction plan through nationally determined contributions (NDCs).

Meanwhile, the United Nations’ 2030 Sustainable Development Goals (SDGs) stress the connection between economic growth, environmental stewardship, efficient resource use, and social equity.

Countries are embedding these principles in policies regarding carbon taxes, emissions limits, incentives for green finance, and green tech innovation.

Environmental, Social, and Governance (ESG) standards are becoming mandatory in investment and corporate governance, pushing economies towards more sustainable development models.

Green growth offers long-term and sustainable benefits to the economy. Beyond minimising environmental impact, green growth unlocks economic potential by stimulating sectors like renewable energy, organic agriculture, environmental technologies, and the circular economy.

According to the International Labour Organisation (ILO), the shift to a green economy could generate over 24 million new jobs globally by 2030, while reducing employment loss in heavily polluting industries.

Green growth also enhances national competitiveness through resource efficiency, technological innovation, and reduction of costs associated with climate adaptation.

Viet Nam’s journey towards a green economy

In an era of globalisation and intensifying climate risks, Viet Nam has shown robust commitment to sustainable development.

The government’s National Green Growth Strategy for 2021–2030, with a vision to 2050, outlines four major objectives: (1) lower greenhouse gas emissions per unit of GDP, (2) green key economic sectors through innovation, (3) promote sustainable consumption and green lifestyles, (4) build an integrated and effective policy framework.

Ministries, provinces, and local authorities are translating these national goals into regional action plans and integrating green content into socio-economic development planning. By the end of 2023, more than 40 localities had enacted their own green growth strategies, with several undertaking major green transformation projects.

For example, in renewable energy, Ninh Thuan Province and Binh Thuan Province have become solar and wind power hubs, supported by natural advantages and favourable investment policies. By 2023, Ninh Thuan had reached nearly 2,500 MW in solar capacity — an impressive contribution to the country’s renewable energy mix.

In agriculture, enterprises in the Mekong Delta are using rice husks, sugarcane, and straw for biomass energy, cutting emissions and costs.

In light industry, textile and footwear industries, key export pillars, are implementing cleaner production methods and water recycling to meet stringent environmental requirements from markets like the EU and the US.

Only through effective coordination, across policy, finance, technology, civil society, and global partnerships, can green growth evolve into a practical reality, paving the way for an inclusive, efficient, and sustainable economy for generations to come

Despite this progress, several challenges remain.

Limited green investment capital, especially for local governments and SMEs, slows technological transformation. Outdated and expensive eco-technologies hinder widespread adoption.

In addition, uneven public and private awareness often results in viewing green initiatives as short-term compliance rather than long-term value, not to mention that fragmented policy frameworks lack strong incentives, particularly in areas like green credit, carbon pricing, and emission taxation.

To realise its green growth goals, Viet Nam must pursue comprehensive systemic reforms — especially in institutions and policymaking. A rigorous legal foundation is needed to enable eco-friendly economic activity, including preferential incentives for clean technologies, circular production, and renewable energy.

Strict and enforceable environmental standards are vital to guide sustainable production and consumer behaviour.

Developing green finance is equally important. Tools such as green bonds, sustainable investment funds, and ESG-integrated banking policies will help to channel resources into environmentally sound projects.

Education and awareness campaigns will be essential for lasting change. Embedding sustainability into school curricula and launching nationwide initiatives can build greener habits and encourage responsible consumption.

Finally, international cooperation is key. Viet Nam must continue to attract foreign investment in green sectors, access advanced technologies, and learn from global best practices. Deeper participation in global environmental frameworks will also strengthen its ability to tackle transboundary issues such as climate change, energy security, and resource scarcity.

Only through effective coordination, across policy, finance, technology, civil society, and global partnerships, can green growth evolve into a practical reality, paving the way for an inclusive, efficient, and sustainable economy for generations to come.