Businesses in Vietnam invest US$9bil in green growth

HANOI (Xinhua): Businesses in Vietnam, including foreign-invested firms and local private companies, have invested about US$9 billion in green growth projects, or 2 per cent of the country’s gross domestic product, the Vietnam News reported on Friday (April 28).

Green investments in Vietnam have grown between 10 per cent and 13 per cent over the past two years, said Nguyen Anh Tuan, deputy director of the Foreign Investment Department under the Ministry of Planning and Investment.

Prime Minister Pham Minh Chinh has announced that Vietnam would achieve net-zero emissions by 2050 and the country needs global partners to support its green transition.

Working toward a low-carbon economic pathway requires political determination and commitments of resources from the business community, especially companies with foreign direct investments, which have financial resources, management experience and modern technologies, Tuan said.

“Vietnam used to attract foreign investment inflows at all costs, more focused on boosting investment capital, creating jobs and promoting exports rather than fostering environmental protection,” said Nguyen Van Toan, vice chairman of the Association of Foreign Investment Enterprises.

However, things have changed greatly in recent years as the country has shifted toward luring foreign investments in green growth, Toan noted.

He gave examples of such companies as toy giant LEGO which decided to open a green factory worth 1 billion dollars in Vietnam.

Science and technology will help Vietnam achieve the goal of net zero emissions by 2050, said Nguyen Quang Vinh, vice chairman of the Vietnam Chamber of Commerce and Industry, stressing the need to impose zero-carbon high-technology requirements on foreign companies.

Industries helping Vietnam achieve net-zero emissions could be worth $300 billion to Vietnam’s gross domestic product by 2050, skyrocketing from only $6.7 billion in 2020, official data showed.

The push for green development will present unprecedented opportunities for local businesses to make deals with multinational groups and companies in key sectors for low-carbon transition, said Nguyen Chi Dung, Minister of Planning and Investment.