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Vietnam Boosts Legal Framework to Attract Green Finance, Technology

Vietnam is taking steps to strengthen its laws to attract investments in green finance and green technology. Tran Hong Ha, the Deputy Prime Minister, said that Vietnam is actively promoting sustainable production and investment.

During a discussion on green finance and sustainable development at the 53rd World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, Ha stated that Vietnam is prioritising the green economy and transformation as key drivers for long-term growth. The country is supporting the transition to green energy, a circular economy, and a low-carbon economy.

Additionally, as Vietnam is undergoing a digital transformation in all sectors and levels, cooperation in digital transformation and utilising digital resources is necessary. Ha urged companies to increase investment, assist Vietnam in its green growth, and fulfil international agreements on sustainable development and climate change, such as those made at the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow.

Industry experts discussed Vietnam’s GDP growth, congratulated the country on its economic development achievements, and appreciated its economic prospects. Investors applauded Vietnam’s commitment to carbon neutrality at the COP26 as well as the negotiation process to establish a Just Energy Transition Partnership. On that basis, international corporations and investment funds expressed their desire to accompany the Vietnamese government, actively seek investment opportunities and implement green projects in the country in the future.

In another meeting with World Bank officials, Ha praised the organisation’s role in Vietnam’s economic development, specifically its support for addressing climate change and the development of the Mekong Delta. He expressed Vietnam’s commitment to a sustainable, circular, and low-carbon economic growth model and requested the World Bank’s assistance in the form of green investment capital, green finance, green technology, and policy consultation.

He suggested that the World Bank establish a programme for sharing knowledge and experiences between nations, noting that Vietnam is willing to share its successes in using borrowed capital to reduce poverty, improve education and health, and move from a low-income to a middle-income country.

The World Bank managing director praised the strong relationship between the bank and Vietnam and expressed his willingness to support Vietnam’s aspirations to become an upper-middle-income country, lower net emissions by 2050, and transition to a green, circular economy.

Ha stated that the Vietnamese government encourages the participation of credit institutions with financial capacity, experience, support capacity, and administration expertise, to improve operational efficiency and the safety of Vietnamese credit organisations.

Vietnam is focusing on and encouraging the growth of green and sustainable finance, specifically the green bond market. Ha proposed the World Bank introduce and connect foreign investors, particularly from the United Kingdom to Vietnam. He requested technical support for the National Innovation Centre and hoped the bank would participate in investing and mobilising capital for infrastructure and energy projects serving sustainable development.

Last year, an international conference was held in Hanoi to seek the enhancement of cooperation with global investment institutions to mobilise green finance for state-owned enterprise (SoE) restructuring and sustainable development.

At the event, the Minister of Foreign Affairs, Bui Thanh Son, highlighted the changes in the global economy and new trends such as digital transformation, green transition, and the restructuring of supply and production chains. He emphasised the importance of forming equitable partnerships, public-private partnerships, and multi-party partnerships for sustainable development.

Vietnam is a promising destination for green and sustainable investment and capital sources. It has a displayed stable economic recovery after the COVID-19 pandemic and is an increasingly favourable investment and business climate with a young, creative, and highly adaptable workforce.

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