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Mr. Phan Van Mai, Chairman of the People's Committee of HCMC, speaks at the seminar. |
The seminar took place on the eve of the Ho Chi Minh City Economic Forum 2023 with the theme "Green Growth – the Path to Zero Emissions," set to run from September 13 to 17.
Attending and chairing the seminar were Mr. Phan Van Mai, Member of the Party Central Committee, Permanent Deputy Secretary of the HCMC Party Committee, Chairman of the People's Committee of HCMC; Mr. Phan Duc Hieu, Permanent Member of the National Assembly's Economic Committee; Mr. Nguyen Quang Huan, Member of the NA Committee for Science, Technology, and Environment; Mr. Hoang Thai Son, Director of the Legal Department - Ministry of Finance; Mr. Nguyen Dinh Tho, Director of the Institute of Policy Strategy - Ministry of Natural Resources and Environment; Journalist Tang Huu Phong, Editor-in-Chief of SGGP Newspaper; Journalist Nguyen Nhat, Permanent Deputy Editor-in-Chief of SGGP Newspaper.
The seminar also had participation from representatives of various agencies and organizations, including delegates from policy advisory bodies, experts, representatives from financial institutions, leaders of banks, representatives from business associations, and environmental associations in Vietnam. In addition, over 150 businesses from different sectors and more than 30 media organizations were also in attendance.
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An overview of the seminar |
New policies for digital and green business transformation
During his address at the seminar, Mr. Phan Van Mai, Chairman of the People's Committee of HCMC, commended the SGGP newspaper for organizing the event, particularly given its timing on the eve of the HCMC Economic Forum 2023. He expressed confidence that the seminar would significantly contribute to raising awareness and driving action in HCMC and Vietnam regarding green transformation and sustainable development in the coming years.
Mr. Phan Van Mai emphasized the city's awareness, stating that HCMC must embrace the green transformation trend, actively promote green conversion, and generate fresh opportunities, momentum, and competitive strengths to bolster its economic capacity and contribute to the national economy.
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Can Gio Mangrove Forest |
Mr. Mai highlighted the "internal imperatives" facing HCMC, including declining growth drivers, climate change, quality of life, energy security, and biodiversity conservation and development.
According to the Chairman of the HCMC People's Committee, these are internal challenges that, without a green transformation, a comprehensive strategy, and enduring specific policies, will unquestionably render HCMC’s economy without new competitive capacities and unable to significantly contribute to the national economy.
With the aforementioned awareness, Mr. Phan Van Mai emphasized that HCMC has embraced its role as a pioneering locale, undertaking significant responsibilities in green transformation and sustainable development, and contributing to fulfilling national obligations in international cooperation.
Recently, HCMC has evaluated that, in the overall context, the nationwide legal framework for green transformation and sustainable development is somewhat lacking. As a result, the city has undertaken research to establish a strategic framework for green transformation and sustainable development. This strategic framework is set to be officially unveiled during the HCMC Economic Forum in September 2023.
Mr. Phan Van Mai said that HCMC recognizes green finance, high-quality human resources, domestic connectivity, and international cooperation as key resources for this endeavor. The city is currently working on refining the legal framework for green finance.
Additionally, the city aims to glean valuable insights from this seminar on mobilizing financial resources, sourcing them effectively, and directing specific resources toward concrete programs for actionable results.
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Mr. Tang Huu Phong, Editor-in-Chief of SGGP Newspaper, speaks at the seminar. |
Mr. Phan Van Mai further emphasized the perspective that the decisive factor for the success of green transformation rests with businesses. The crucial question is how enterprises can gain access to green finance to revamp their production processes, penetrate markets, and attain sustainable development. In the near future, HCMC will unveil policies aimed at bolstering businesses in their digital and green transformations. During this seminar, the Chairman of the HCMC People's Committee expressed a keen interest in expert opinions to craft targeted policies, ensuring a swifter and more effective implementation process.
Another crucial aspect of HCMC’s strategy for green transformation and sustainable development involves infrastructure, behavior, and resource circulation. Under the infrastructure component, the city places a strong emphasis on energy. Currently, clean energy accounts for only 14 percent of the total, with a projected maximum of 30 percent by 2030. To support these efforts, legal frameworks, infrastructure development, and policy systems are integral.
The Chairman of the HCMC People's Committee expressed a strong desire to gather insights from scientists and policy advisors during this seminar. Such input will aid in the gradual refinement of the city's legal framework, thereby motivating both the public and business sectors, as well as the society. In this context, the media is encouraged to take a leading role in advocacy, feedback, and driving the process of sustainable green development in the city.
HCMC's ambition: Developing a green bond market
In his opening remarks at the seminar, Mr. Tang Huu Phong, Editor-in-Chief of SGGP Newspaper, emphasized the growing global environmental concerns in the 21st century, particularly in light of extreme climate changes. He cited statistics from international organizations, pointing out that Vietnam is among the countries most susceptible to climate change and natural disasters. Moreover, Vietnam ranks among the Asian economies with the highest carbon emissions per capita.
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Mr. Phan Van Mai, Chairman of the HCMC People's Committee, in discussion with Mr. Tang Huu Phong, Editor-in-Chief of SGGP Newspaper |
This presents a significant challenge as Vietnam made commitments at the 26th United Nations Climate Change Conference (COP26). According to these commitments, Prime Minister Pham Minh Chinh pledged that Vietnam would reduce greenhouse gas emissions by 30 percent by 2030 and achieve net-zero emissions by 2050.
A national climate and development report published in July 2022, estimated by the World Bank, suggests that Vietnam may need to invest approximately US$368 billion by 2040, equivalent to 6.8 percent of GDP annually. This investment includes approximately $254 billion for resilience and an additional $114 billion for the carbon reduction journey, as pledged to the international community. This implies that Vietnam will require substantial investments over the next 30 years, while the State's resources can only meet a portion of these financial needs.
Therefore, starting from now, regulatory agencies and policymakers have considered the economy's green trend. From production to exports, services to commerce, the stock market, as well as real estate sectors, must undergo a green transformation. It is especially crucial in HCMC, often seen as the economic flagship of the country, with opportunities and challenges intertwined, as the city has been granted specific development mechanisms and policies through Resolution 98 by the National Assembly.
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Mr. Phan Van Mai discusses with a delegate at the seminar. |
Journalist Tang Huu Phong highlighted that HCMC is striving to swiftly establish a green bond market to attract both international and domestic capital, as well as a carbon credit market facilitated by a carbon credit trading platform for the city’s economy to achieve its development and sustainability goals.
“SGGP Newspaper, an agency of the HCMC Party Committee, will be the bridge for today's seminar, enabling speakers, businesses, experts, as well as policymakers and policy planners to converge on a shared vision for the green journey of the economy," Journalist Tang Huu Phong stated.
At the COP26 in November 2021, Prime Minister Pham Minh Chinh pledged on behalf of Vietnam to reduce methane gas emissions, a potent greenhouse gas, by 30 percent by 2030 and attain net-zero emissions by 2050.
Green finance and the carbon market are financial mechanisms that can play a crucial role in reducing the impacts of climate change and addressing environmental challenges. Green finance can provide funding for projects certified with carbon credits, while carbon credits act as a "passport" for goods in international trade.
This interconnected support between green finance and the carbon credit market will accelerate the transition towards a more sustainable green economy, aligning with global trends.
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Mr. Tang Huu Phong discusses with a delegate at the seminar. |
However, for various reasons, as of the end of 2022, credit institutions had disbursed only approximately VND500 trillion, which accounted for 4.2 percent of the total outstanding economic loans, for green projects in sectors like textiles and garments, clean agriculture, renewable energy, and environmental sanitation.
Meanwhile, Vietnam's carbon credit trading market is still in its developmental phase and lacks the essential legal framework required to establish a robust foundation for the market.
During the seminar, attending delegates will provide their insights on unresolved issues and challenges related to green initiatives in businesses and the carbon credit market. Moreover, management authorities will address questions and suggestions put forth by enterprises.
