“We hope you will support advanced technology, green and cheap capital for Vietnam”, Prime Minister Pham Minh Chinh called on European organizations, businesses and investors at the “Forum and Exhibition on Economic Development”. Green 2022” (Green Economy Forum & Exhibition – GEFE) in the morning of November 28 in Ho Chi Minh City.

Green credit (or green capital) is a capital source lent by financial institutions for green production and investment activities, including environmentally friendly consumption, investment, production and business activities, harmless and contribute to environmental protection.

Sharing at an event organized by EuroCham, the Prime Minister reiterated the goal of becoming a middle-income country by 2030 and a developed country by 2045. However, “Vietnam does not sacrifice progress, social justice and the environment to pursue growth alone,” he affirmed.

During this process, the Prime Minister said that Vietnam expects Europe to support technology, human resource training and capital so that people can access products and services at reasonable prices.

“European enterprises investing in Vietnam and Vietnamese enterprises borrowing capital from the EU must have preferential interest rates. This contributes to reducing input costs, reducing prices for people, suitable for a developing country,” he said.

Prime Minister Pham Minh Chinh spoke at the event on the morning of November 28. Photo: Telecom

Some other strengths that Europe can support Vietnam such as advanced governance, strategic infrastructure, emerging economic sectors (green economy, circular economy …) or investment in R&D, …

Vietnam has committed to reducing methane emissions by 30% by 2030, becoming a carbon-neutral country by 2050. The Prime Minister said he will continue to improve the investment environment, reduce input costs, encourage the green economy, digital transformation, circular economy, and reduce administrative procedures for investors and businesses.

According to the recent “Country Report on Climate and Development for Vietnam” by the World Bank Group, the present value estimate of the need for additional investment in climate change adaptation and mitigation measures Climate change between now and 2040 amounts to about 6.8% of GDP per year, or about $368 billion.

Carolyn Turk, World Bank Country Director for Vietnam, said that the goal of becoming a middle-income country in the period of climate change is a “very special challenge” for Vietnam. , but without action, the costs are much greater. “Climate change-related losses could account for 15% of GDP without major investments,” she assessed.

Vietnam doesn’t contribute much in carbon emissions, but the past two decades have emerged as one of the fastest growing per capita greenhouse gas emissions in the world. Its harmful effects are increasing pollution, affecting health and labor productivity. The amount of CO2 per dollar of exports of Vietnam has far exceeded that of neighboring countries, reducing competitiveness.

According to Ms. Turk, public investment will play a pivotal role, but also need to improve policies to attract private capital flows. Along with that, more financial sector reforms are needed to shift abundant savings flows to green investments.

“Private saving in Vietnam is close to 20% of GDP, which is high. Banks need to play a more important role in channeling investments for this money. If only a quarter of the amount of support for green projects is needed, it accounts for 3.5% of GDP,” she said.

In addition, Vietnam can mobilize more finance for green projects through participating in the climate finance market, selling carbon credits to the international market. The World Bank believes that the infrastructure for this market is ready. They and Ho Chi Minh City are currently researching specific solutions to take advantage of this market.

Minister of Industry and Trade Nguyen Hong Dien assessed that the low-carbon, green and circular economy is a new space, opening up job opportunities and a new future. In particular, the EU has experience and is the leader in fighting climate change in the world.

Mr. Dien said that, in addition to promulgating incentive policies, the government is assigning this ministry the task of studying the legalization of the renewable energy sector to encourage investors to participate.

The latest report (6th) on Power Master Plan VIII sets a target that by 2030, the total capacity of power plants will be about 121,757-145,989 MW (excluding rooftop solar power, separate load power supply and copper). broadcast). In which, renewable energy other than hydropower (wind power, solar power, biomass power…) is 21,871-39,486 MW, accounting for 18-27% of total capacity. By 2050, the proportion of this group of power sources is expected to account for 54.9-58.9%.

According to Mr. Dien, to achieve the goal, it is necessary to invest 14.2 billion USD a year in the period to 2030, and 24.4 billion USD in the period 2031-2050. “For successful implementation, in addition to self-effort, international partners are needed to support technology, techniques and preferential capital to develop wind power infrastructure, power transmission, and energy saving infrastructure.” , he said.

Vietnam issued green bonds for the first time in 2019 through Decree 163 of the Government. This turning point creates capital mobilization channels for environmental protection instead of relying solely on funding from banks. In 2020, Vietnam received the first green loan to develop the largest solar power plant in Southeast Asia at that time. The plant is forecast to reduce emissions by about 100,000 tons per year.

Currently, global companies are focusing more and more on ESG (Environmental – Social – Governance, a set of standards to measure factors related to sustainable development and the impact of businesses on the community). As a result, they demand more and more sustainable, high-quality resources in the countries where they operate.

Thanks to that, Vietnam is recording the highest level of investment in renewable energy in the ASEAN region, according to HSBC. In order to attract more FDI and provide foreign companies with more sustainable energy sources, the bank said that Vietnam has shown a strong commitment to renewable energy.

Theo – Telecom/ Vnexpress