How do you view the importance of sustainable growth for Vietnam’s economy in 2023?
The government has shown its determination to create a sustainable future, which I believe will bring tremendous benefits for Vietnam as an emerging economy playing an increasingly important role in the global economy and supply chains.
Fundamentally, accelerating the economic restructuring process along with revising the growth model towards sustainability will enhance Vietnam’s competitiveness and fortify it against external shocks.
The world is increasingly demanding more green elements in products and services, which creates the chance for Vietnam to increase its competitiveness over the long run, especially in terms of its exports to more developed economies, where laws and regulations are more stringent on product origin and environmental footprint.
Green growth will help Vietnam improve its attractiveness among foreign investors and draw quality and environmentally-responsible investments into the country. It will also encourage investors already onshore to increase their investments helping Vietnam on a sustainable growth trajectory. So, the benefits will last for a long time.
What potential does Vietnam hold in promoting sustainable growth?
Vietnam has strong potential for promoting sustainable growth thanks to its demographic advantage, strong economic growth, and abundant natural resources. Strong economic growth provides a strong foundation for future growth and development.
On December 14, 2022 in Brussels, leaders from Vietnam and the International Partners Group agreed to a bold Just Energy Transition Partnership (JETP). The Partnership will help Vietnam deliver on its ambitious goal of net-zero emissions by 2050 and accelerate the peak of its greenhouse gas emissions and transition away from fossil fuels to clean energy.
The JETP will mobilize an initial $15.5 billion in public and private finance over the next three to five years to support Vietnam’s green transition. We were honored to sit alongside the Vietnamese Government, business leaders, and civil society in the process of delivering climate action and creating new jobs.
Standard Chartered Bank Vietnam will continue to support and build on the Vietnamese Government’s ambition and success from COP27. It will be an exciting journey for all of us in Vietnam as we work together - government and private sector - to execute the different verticals of work under the JETP to deliver our collective ambitions to reach net-zero emissions by 2050.
What strategies should businesses have to contribute to Vietnam’s sustainable growth?
Now, more than ever, investments are needed from both the public and private sectors to tackle environmental and societal issues. More and more businesses have become aware of the need to focus on sustainability and ESG (environmental, social, governance) practices for sustainable development.
We anticipate that over the next five years we will see a rising trend of investors putting money into sustainable and impact-investing sectors. A larger segment of markets will accept that impact investing can provide equally strong if not better returns than more conventional products.
Businesses should also focus on transformation and moving up the value chain to contribute to Vietnam’s sustainable growth. By investing in sustainable products and services and adopting new technologies, business can improve resource efficiency and reduce waste.
What do you think about the support from the government for businesses to strengthen sustainable growth?
Vietnam has set an objective of becoming a high-income economy by 2045 and a carbon-neutral economy by 2050. Financing is a key enabler to achieving these ambitious plans, and the role of financial institutions as financing parties is critically important.
This is where financial institutions like Standard Chartered can offer support under clear and global policy guidelines facilitating sustainable financing to flow in Vietnam. The Vietnamese Government, business leaders, and civil society will need to continue to work together to deliver Vietnam’s ambitious net-zero target.
The country has also demonstrated a strong commitment to sustainability. The mobilization of $15.5 billion in financing through the JETP represents a significant step forward for Vietnam in terms of achieving its 2050 energy goals.
This funding can be used to support a range of initiatives, including the development of renewable energy and sustainable transportation systems. By leveraging the resources and expertise of JETP partners, Vietnam can accelerate its transition to a more sustainable energy future.
Establishing a governance framework through harmonizing government agencies is crucial for promoting green growth in the country and attracting investment.
Regulations need to be global and standardized. A clear set of rules, cross-ministry coordination, and enforced regulations supporting green growth will increase investor confidence and support the transition to a sustainable and low-carbon economy.