The Green Economy Forum & Exhibition (GEFE) 2024 officially opened on October 21 in Ho Chi Minh City, bringing together global leaders, business executives, policymakers, and sustainability advocates in a collective effort to promote a greener future. Hosted by EuroCham Vietnam and the Ministry of Industry and Trade, the three-day event features discussions, exhibitions, and networking opportunities.

Addressing the event, Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son affirmed Vietnam's commitment to building a green and sustainable economy, highlighting the country's active role in global efforts to combat climate change.

The Deputy Prime Minister praised the forum's theme "Creating a Green Future," highlighting  its role as a leading platform for public-private partnerships in green growth.

He lauded the international community's unwavering determination to promote a green future, despite global challenges such as economic uncertainties, geopolitical tensions, and climate-related crises.

"In a world of change, green transformation, and developing a green economy is an inevitable trend, a strategic choice for nations, and hope for future generations," the Deputy PM said.

"I am pleased to announce that Vietnam has issued a mechanism for direct electricity trading between renewable energy generation units and large electricity consumers and plans to pilot a carbon credit exchange in 2025," the Deputy PM added.

Mr. Bruno Jaspaert, Chairman of EuroCham Vietnam, emphasized the significance of GEFE 2024, stating, “GEFE 2024 reflects the joint ambition of Vietnam and the EU to advance sustainable development. The participation of high-level officials, industry experts, and business leaders demonstrates our commitment to transforming words into action and building a greener future together.”

Deputy Minister of Industry and Trade Phan Thi Thang highlighted Vietnam’s strong trade performance, reporting import-export turnover of $578.47 billion from January to September this year, a 16.3 per cent year-on-year increase. Trade was in surplus by $20.79 billion, with exports to the EU standing at $38.1 billion, up 17 per cent. “This reflects the growing potential for effective and high-quality growth between Vietnam and the EU,” she said, urging businesses to enhance cooperation in investment, trade, and technology transfer, particularly in green growth.

Strategic EU-Vietnam partnership

In his address to GEFE, Vice President of the European Commission Mr. Margaritis Schinas underscored the growing economic ties between the EU and Vietnam, driven by the EU-Vietnam Free Trade Agreement (EUVFTA). He noted that the agreement has established the EU as one of Vietnam’s top trade partners, while ongoing negotiations over the EU-Vietnam Investment Protection Agreement (EUVIPA) hold promise for further sustainable investments.

Mr. Schinas characterized Vietnam as a crucial player in advancing the broader EU-ASEAN strategy, saying, “Vietnam exemplifies the strategic partnership.” He added that green growth is central to their collaboration, asserting, “The time is now. This transition to a greener future presents challenges, but also offers the opportunity to effect significant change for future generations.”

He emphasized that the EU-Vietnam Partnership and Cooperation Agreement (PCA) and the free trade agreement (FTA) have strengthened political and commercial relations. Acknowledging shared challenges, particularly in tackling climate change and environmental degradation, Mr. Schinas expressed optimism that these issues would deepen their partnership. Furthermore, he reaffirmed the EU’s commitment to supporting Vietnam’s green transformation, emphasizing the need for collaboration with the private sector to drive sustainability and unlock new business opportunities.

Climate action takes center stage

The recent impact of Typhoon Yagi serves as a stark reminder of the urgent need for climate action. Platforms like GEFE are essential, as they underscore that sustainable development is an imperative, not an option.

On this issue, Mr. Schinas emphasized the necessity of transitioning to a carbon-neutral, circular economy, highlighting the challenges as stark reminders of the need for action.

He pointed out the significant growth in bilateral trade, which reached nearly €68 billion ($73.5 million) in 2023, a 40 per cent increase since the EUVFTA took effect in 2020. The EU is also a leading partner in green transformation, committing to supporting Vietnam in achieving its net-zero emissions goal by 2050.

The Just Energy Transition Partnership (JETP) was a key topic at the forum, with discussions noting the EU’s substantial financial contributions, including €176 million ($186.56 million) in grants to aid Vietnam’s transition to clean energy. Mr. Schinas cited the Bac Ai Hydropower Storage Project in south-central Ninh Thuan province as a flagship initiative, illustrating the EU’s commitment to fostering renewable energy and improving energy efficiency.

As the green agenda aligns with economic growth, he reiterated the importance of private sector involvement in driving the transition. He praised initiatives like Lego’s climate-neutral factory in Vietnam, showcasing the potential for green investments.

Opportunities from CBAM

In his speech at GEFE 2024, EU Ambassador to Vietnam, H.E. Julien Guerrier, emphasized the potential of recent EU initiatives, including the Carbon Border Adjustment Mechanism (CBAM), as presenting opportunities rather than imposing burdens. He noted that these regulations, along with the Deforestation Regulation and Corporate Sustainability Due Diligence, can help develop a green, competitive economy while enhancing trade between Vietnam and the EU.

The Ambassador explained that compliance with these regulations could provide Vietnamese operators with a competitive edge in the EU market, facilitating better access and reducing carbon emissions. He stressed that early readiness for CBAM could significantly benefit businesses.

He also highlighted the success of carbon pricing in the EU, which has reduced emissions by 47 per cent in the energy and industry sectors since 2005 and generated over €175 billion ($185.5 billion) for climate transition efforts. He encouraged Vietnam to adopt effective carbon pricing as a key partner country.

Additionally, Ambassador Guerrier pointed to the vital role of the private sector in the green transition, praising the participation of EU and Vietnamese businesses at GEFE. He thanked EuroCham for organizing the event and supporting businesses with valuable insights through its annual White Book.

He concluded by expressing confidence that GEFE would encourage operators to pursue green growth, assuring them of the EU’s continued support in this endeavor.