In his address at the award ceremony for the nation's 100 Most Sustainable Companies 2022, Mr. Tran Tuan Anh, Chairman of the Central Economic Commission, underscored the paramount significance of sustainable development and fervently advocated for innovation, collaboration, and the harmonious integration of economic growth with environmental and social dividends among Vietnamese businesses

At its core, green growth emerges as a critical facet of sustainable development, playing a pivotal role in ensuring effective and enduring economic development, while concurrently addressing the imperative of climate change mitigation. The positioning of Vietnam in this context stems from its recognized potential to cultivate green economic sectors characterized by reduced resource and labor intensiveness. This potential is anchored in the nation's reservoir of high-quality human resources, with Vietnamese intellectual labor notably standing out in comparison to regional counterparts.

Update on the Green Growth Agenda in response to evolving circumstances

Since its inception, the Green Growth Strategy has played an important role in facilitating economic restructuring through innovative growth models, enhancing economic competitiveness, and fostering equitable access to the benefits of sustainable development. This approach underlined Vietnam's commitment to the international community's objectives regarding sustainable development and climate change, particularly the pledge to achieve net-zero emissions by 2050, as articulated at the COP26 Conference.

Deputy Minister of Planning and Investment, Nguyen Thi Bich Ngoc, articulated the four key objectives of the green growth plan, focusing on reducing greenhouse gas emissions in proportion to GDP, fostering sustainability in economic sectors, encouraging eco-friendly lifestyles and sustainable consumption, and facilitating a transition grounded in principles of equality, inclusion, and heightened resilience. The accompanying Action Plan delineates a series of solutions and policies, concretizing these goals and fostering new growth models while ensuring balanced development across economic prosperity, environmental sustainability, and social justice.

To enhance the effective implementation of the Green Growth Strategy, Deputy Prime Minister Tran Hong Ha directed the Steering Committee and members of the National Steering Committee on Green Growth to proactively execute the strategy and its Action Plan. Notably, the Ministry of Planning and Investment, serving as the standing agency for the Steering Committee, has been tasked with urgently reviewing and updating the Green Growth Strategy to align with the contemporary situation and context, incorporating considerations from the Joint Energy Transition Partnership (JETP), Electricity Planning 8, and the prevailing trend of robust digital transformation. This update aims to fortify the strategy's overarching role and synergize it with other national strategies directed towards sustainable development goals.

Furthermore, the ministry is mandated to explore and propose key directions, goals, and core tasks for the effective implementation of the Green Growth Strategy. It will also identify and pilot projects, and select 5-7 initiatives for monitoring, assessment, and experiential learning before widespread deployment. Concurrently, the ministry will develop scientific criteria for national green classification, harmonizing them with international practices. This initiative aims to provide specific legal foundations for selecting investment projects at both central and local levels, while also quantifying and assessing progress in green growth.

Deputy Prime Minister Ha also called upon the Ministry of Foreign Affairs to actively engage in "technology diplomacy" and "climate diplomacy." Additionally, the ministry is tasked with proposing legal documents and policy mechanisms to support green growth, aligning with international commitments and complying with global standards and practices. Collaborating with the Ministry of Industry and Trade, the Ministry of Science and Technology, and other relevant ministries/agencies, the ministry will formulate solutions for export industries in response to emerging environmental standards set by various countries and organizations.

Concurrently, relevant agencies and ministries will actively develop and update Green Growth Action Plans for sectors and localities, prioritizing tasks for the period leading up to 2025. These plans encompass elements such as completing the legal framework for green growth, applying science and technology, endorsing innovation, and embracing digital transformation. Additionally, these entities will research, promulgate, or submit green growth criteria within their purview, ensuring alignment with national green classification criteria and conformity with international standards and practices.

Establishing scientific criteria for national green classification

Deputy Minister Nguyen Thi Bich Ngoc, representing the Ministry of Planning and Investment as the national advisory agency on green growth for the Government, delineated three fundamental categories of core tasks and solutions. These encompass the formulation of policies and tools designed to mobilize financial resources and foster a conducive business investment environment for green growth and sustainable development. Of particular emphasis is the need for these policies to underscore the pivotal role of the private sector in actualizing green growth objectives.

Mr. Nguyen Quang Vinh, Vice President of Vietnam Chamber of Commerce and Industry (VCCI) and Chair of the Vietnam Business Council for Sustainable Development (VBCSD), emphasized that the business community should introspect and strategically "evaluate" its stance on green growth, aiming to redefine not only its role but the very essence of the business. The focus lies in crafting substantial value while implementing and advancing green growth strategies.

The Ministry of Planning and Investment is currently engaged in a process of finalizing and submitting to competent authorities the development of scientific criteria for national green classification. This undertaking is integral to establishing a crucial legal framework for the effective implementation of green growth initiatives. The criteria will serve as the foundation upon which ministries, branches, and localities can base their selection of investment projects and allocate resources. Investors, in turn, can leverage these criteria to assess eligibility for preferential policies and access green financial resources from various organizations.

Deputy Minister Ngoc highlighted the imperative to concretize green growth through specific programs and projects, with a particular focus on transformative areas. These include the economical and efficient use of energy, expeditious transitions to clean energy with the cessation of fossil fuel vehicle production, green building initiatives, zero-carbon projects, utilization of recycled construction materials, and effective waste management strategies. The Ministry of Planning and Investment is actively compiling a comprehensive list of key green growth tasks and projects for the upcoming period.

In addressing the critical issue of resource mobilization, particularly in supporting developing nations such as Vietnam to realize green growth objectives, the Ministry of Planning and Investment is conducting research to establish a robust green growth measurement, monitoring, and reporting system throughout the implementation of the plan.

Deputy Prime Minister Tran Hong Ha underscored the revolutionary nature of green transformation, emphasizing the necessity for bold thinking and action, particularly through the adept application of new technologies that are greener, more efficient, and more intelligent. The government remains committed to implementing mechanisms and policies conducive to promoting a green and circular economy. This involves directing resources toward breakthrough and key tasks in each stage, fostering the market for environmental goods and services, exchanging emission quotas and carbon credits, and cultivating innovative professions.

Additionally, the government will institute preferential mechanisms and policies to support businesses in technology conversion and the establishment of research and development (R&D) centers, innovation ecosystems, basic scientific research, information technology, the Internet of Things (IoT), artificial intelligence (AI), big data, smart infrastructure, and new economic models. Plans also include the development of regulations on green procurement, the execution of a roadmap for the replacement of fossil fuels with environmentally friendly alternatives, and the integration of socioeconomic development with a clean energy ecosystem, green industry, seaports, logistics, and the promotion of human resource training and development, with a focus on fostering innovative thinking.

Deputy Prime Minister Ha emphasized the imperative for enterprises to construct robust business strategies, seizing opportunities to lead in green production industries, particularly by implementing pilot projects and policies. Moreover, to attain a competitive edge, enterprises are urged to prioritize research and development, invest in human resources, and adopt smart management practices facilitated by robust information technology applications and digital transformation.

Amidst the formidable challenges posed by climate change, constructing a green future and fostering sustainable development has evolved into a global imperative, carrying profound implications for the well-being of the planet and humanity. Situated as a developing country with an expansive continental shelf, an extensive coastline, and vulnerability to numerous climate change impacts, Vietnam's Party and State enacted important decisions in response to climate change, emphasizing natural disaster prevention, resource management and environmental protection. A significant milestone occurred on June 3, 2013, when the 11th Party Central Committee issued Resolution 24-NQ/TW. This resolution, focused on active responses to climate change, natural resource management, conservation, and environmental protection, underscored the imperative of placing climate change responses within a global context. It not only identified challenges but also recognized an opportunity for transformative growth models aligning with sustainable development. Emphasizing the dual prongs of adaptation and mitigation, the resolution prioritized active response to climate change, coupled with the prevention and mitigation of natural disasters. Subsequent government resolutions, strategies, and action programs have followed a roadmap to implement Vietnam's guidelines, policies, and commitments toward sustainable growth, including the ambition to achieve net-zero emissions by 2050, as articulated in commitments made at COP 26 in 2021. In upholding its international responsibilities, Vietnam has committed to eschewing unfettered growth at the expense of the environment. The country is earnestly engaged in a swift transformation, advocating for green and sustainable growth models. This encompasses the establishment of a circular economy, a low-carbon economy, the adoption of green and clean production practices, and a comprehensive transition toward renewable and clean energy sources. In this pursuit, Vietnam remains steadfast in maintaining and safeguarding its resources and biodiversity, all while ensuring equity and social progress, fostering a humane, inclusive and sustainable trajectory. The important role of businesses in achieving green development cannot be overstated. Their production and operational activities wield significant influence over greenhouse gas emissions, rendering them both actors and factors shaping climate change outcomes. Consequently, there is an intensified need for businesses to expedite their efforts toward adopting responsible and sustainable production and business models. Recognizing the urgency of the global challenge, all of humanity is enmeshed in a race – a green race to curtail greenhouse gas emissions, a race to restore the earth from a "gray sphere" to a "green sphere." This race transcends individual, national, or competitive considerations; rather, it stands as a collective endeavor against time to mitigate or reverse the warming of the planet and mitigate the adverse impacts of climate change. Representing and unifying the business community in Vietnam, VCCI serves as a vanguard in initiatives that foster digital transformation and sustainable business practices. Pham Tan Cong, VCCI President (Excerpted speech at the annual Vietnam Corporate Sustainability Forum - VCSF 2023)