Promoting green investment and green financial market, towards Net zero goal in Vietnam

 The workshop "Promoting green investment and green financial market, towards the goal of Net zero in Vietnam" with the theme "Breakthrough in attracting green investment: Opportunities for new fields" took place in Quang Ninh on the afternoon of November 15, 2024 in Quang Ninh...

The Workshop Series “Promoting green investment and green financial market - Towards Net zero target in Vietnam” will be held in 3 regions North - Central - South.

Vietnam is one of five countries at risk of being severely affected by climate change, reducing the country's national income by 3.5% 2050. Thereforeby , Vietnam needs to have a rapid action plan with high determination to be able to successfully access and effectively promote resources to improve these challenges.

According to the World Bank's estimates, Vietnam needs about 368 billion USD for the period 2022-2040 to achieve the goals of green growth, inclusive green transformation associated with climate change response, equivalent to about 6.8% of GDP per year, of which 65% of this need will have to be mobilized from outside the public sector.

In particular, with the commitment to bring net zero emissions by 2050 and reduce methane emissions by 2030, Vietnam's investment demand for projects that minimize environmental impacts will increase.

Meanwhile, global investors in general are increasingly interested in investing in assets that have a positive impact on the environment, in order to meet voluntary and mandatory environmental, social and governance (ESG) standards.

Green finance is the activity of mobilizing and allocating capital from financial institutions, businesses and individuals to invest in projects and activities that have a positive impact on the environment and society, aiming at sustainable development. Therefore, green finance is an important component to attract investment, contributing to Vietnam's green growth strategy.

Although green finance has been deployed in Vietnam for about 10 years, the scale is still modest (green credit accounts for only 4.5% of total outstanding debt, green bonds are very few...). This requires the efforts of businesses to access green finance and the support of the Government in terms of mechanisms and policies.

In order to raise awareness and interest of investors in green investment opportunities and encourage businesses to invest in environmentally friendly projects through green financial instruments, Vietnam Economic Times in collaboration with the Center for Natural Resources and Environment Communication (Ministry of Natural Resources and Environment) and other agencies organized a series of seminars "Promoting green investment and green financial market - Towards the goal of Net zero in Vietnam" in the 3 regions of North - Central - South.

In the Northern region, the organizers chose Quang Ninh. From a locality with an economy mainly based on the coal mining industry, in recent years, Quang Ninh province has made a remarkable transformation in transforming the growth model from "brown" to "green", strongly shifting the economic structure towards industrialization, modernization, and greening. In particular, in the investment attraction strategy, Quang Ninh province focuses on attracting investment in a selective manner, taking quality, efficiency, technology, and environmental protection as the main evaluation criteria.

The workshop was held in Quang Ninh province with the theme "Breakthrough in attracting green investment: Opportunities for new fields" to discuss and share opinions on world trends, as well as the current situation and opportunities for Vietnam in developing the green financial market, especially for localities like Quang Ninh to attract investment, towards the goal of sustainable development according to the green growth model, adapting to climate change.

Accordingly, the workshop is structured into 2 sessions: presentation and discussion.

The discussion will provide general information about green investment and green finance trends in the world as well as the current situation in Vietnam from the perspective of policy makers and consultants.

The discussion session focused on 3 contents: “Towards Net Zero – The role of financial institutions and policies for developing green financial markets and green investment in Vietnam”; “Developing green financial markets – Current situation, challenges and opportunities for Vietnam”; “Green investment trends in sustainable development in the world and in Vietnam”.

Based on information from the presentations, the discussion session on the topic: "Promoting green investment and green financial market, towards the goal of Net Zero in Vietnam" will focus on two key groups of capital market issues that need to be promoted and exploited more effectively to serve the goals of green growth and sustainable development of Vietnam, including: green investment and green finance.

The discussion session will explore the issue from many aspects and perspectives from state management agencies, financial institutions, and businesses on:

- The process and current status of this market development, pointing out the difficulties, limitations and obstacles in terms of state policies and mechanisms, needs and accessibility, the ability to mobilize and supply green capital of business entities, investment funds, and financial institutions;

- The practical implementation at the local level of enterprises, models such as industrial parks;

- On that basis, proposing solutions to remove obstacles, promote sustainable development of green finance, and effectively supply green capital to the economy.

The workshop is expected to have the participation of more than 150 delegates representing state management agencies, domestic credit institutions, and financial consulting units. Also attending the workshop are financial economic experts and the community of FDI enterprises and Vietnamese enterprises.

Source: vneconomy.vn