Vietnam on the way to achieve net-zero commitment

Could you tell us about the results Vietnam has achieved in implementing its international commitment to greenhouse gas (GHG) mitigation towards meeting the 2050 net-zero target?

Vietnam is among the countries most severely affected by climate change. Extreme weather events have become more frequent in recent years, directly and seriously impacting all aspects of the country’s socio-economic life.

Recognizing the severe challenges that climate change poses to sustainable development, countries made strong commitments toward the 1.5°C goal under the Paris Agreement at COP21, and pledged to achieve net-zero emissions by 2050 at COP26.

Responding to climate change is a matter of special significance and one of the core, cross-cutting tasks throughout the country’s development process, requiring the engagement of the entire political system and society.

To implement Vietnam’s commitments at COP26, the Prime Minister established the National Steering Committee for implementing Vietnam’s COP26 commitments, chaired by the Prime Minister, and approved the implementation scheme.

He also issued a number of important strategies and plans, including Decision No. 888/QD-TTg approving the Scheme on tasks and solutions to implement the outcomes of COP26; and Decision No. 896/QD-TTg approving the National Climate Change Strategy to 2050.

On that basis, the Department of Climate Change at the Ministry of Agriculture and Environment, in coordination with relevant ministries and sectors, has developed GHG mitigation and climate adaptation plans aligned with the 2050 net-zero commitment.

Many concrete programs and projects have been implemented in practice, including renewable energy development projects, forest carbon absorption projects, GHG mitigation initiatives in agriculture, and sustainable, climate-adaptive development projects in the Mekong Delta. Banks and enterprises have actively joined the government in fulfilling international commitments.

In recent years, the Department of Climate Change, together with ministries and sectors, has organized hundreds of workshops to communicate with and guide enterprises on conducting GHG inventories and understanding the benefits of green transition and emission reductions.

The business community plays a particularly important role in implementing GHG mitigation. How would you assess their capacity and level of engagement in contributing to national emission reduction goals?

The implementation of GHG mitigation and green transition solutions is a strong global trend. It is also a mandatory requirement for the goods, products, and services of Vietnamese enterprises that want to participate in global markets, especially markets with strict green standards such as the EU.

While this poses major challenges, it also offers new development opportunities, helping enterprises enhance competitiveness.

Government regulations, together with market-driven green-standard requirements, exert both pressure and motivation for enterprises to transform and comply.

Based on this, we have accelerated the implementation of legal regulations and emission reduction goals while providing orientations to support enterprises in transitioning, first focusing on energy-intensive industries such as thermal power, steel, and cement, which are also the sectors piloting GHG allowance allocation.

With market trends and volatile energy prices, enterprises increasingly recognize that transforming production technologies and adopting alternative energy sources, such as biomass or waste-to-energy, can offer cost advantages and economic benefits.

In practice, enterprises have already implemented technology-based solutions within current constraints, achieving good results. However, beyond a certain point, these solutions will no longer bring further improvement and will require complete technology upgrades.

Technologies are available, but the biggest challenge now is mobilizing financial resources for enterprises to invest in new technologies.

At this point, enterprises clearly understand the economic and market-driven imperative for green transition. Vietnam has also established a relatively complete legal framework. What enterprises need most now is stronger incentives for fundamental change.

In your view, what additional drivers are needed to accelerate and realize green and sustainable development policies in Vietnam?

The government needs support policies to stimulate the financial, banking, and credit industries, creating additional incentives for enterprises to change. This will result in long-term benefits, fundamentally transforming corporate culture in line with the green transition.

For example, in steel production, four major technologies exist. The blast-furnace / basic oxygen furnace (BOF) route consumes large amounts of fossil fuel. Switching to electric-arc furnaces (EAF) or induction furnaces (IF) can reduce emissions to below 20 per cent of BOF levels, while reductions can be even greater with IFs. Today, steel manufacturers are gradually adopting these new technologies.

In cement production, enterprises are increasingly using waste and biomass as fuel to reduce fossil-fuel consumption and emissions.

Furthermore, adopting new technologies, emission reduction solutions, and clean energy transitions creates opportunities to participate in the carbon market. Through internationally-recognized measurement, reporting, and verification (MRV) systems, enterprises’ mitigation efforts can be certified and used for participation in the carbon market.

The essence of the carbon market is to deploy market-based mechanisms that motivate enterprises to accelerate emission reduction actions, gain green certification, and trade carbon credits. It has become a global trend.

Green transition and low-carbon development are not only about complying with legal requirements, they are also essential for global market access. In this process, economic development goes hand-in-hand with environmental protection, contributing to sustainable development for both national goals and corporate goals.

We will continue to accompany and support enterprises to ensure they achieve economic performance, business growth, profitability, and environmental protection.

Based on the practical implementation of GHG inventories, how would you assess the current level of awareness regarding green development and low emissions among enterprises?

I have observed significant improvements in awareness, especially among enterprises with high fossil-fuel consumption and emissions. However, levels of understanding remain uneven across sectors.

GHG inventories involve three scopes. Scope 1 covers direct emissions from fossil-fuel use. Scope 2 includes indirect emissions from electricity or steam consumption. And Scope 3 is the most comprehensive, covering emissions across the entire product life-cycle.

Currently, most enterprises are conducting inventories up to Scope 2. Conducting full life-cycle emission inventories requires alignment across sectors. It is estimated that more than half of enterprises with energy-intensive operations pay considerable attention to inventories and green transition measures, while the remainder, mostly support industries and small and medium-sized enterprises, lack financial and human resources.

This is, however, a major improvement compared to five years ago, and Vietnamese businesses are considered more agile than many in the region.

A key factor is that enterprises clearly recognize global trends, market pressure, and the economic and profit-driven benefits of mitigation and green transition. Meanwhile, Vietnam has strengthened policies, implementation activities, and practical guidance that creates momentum for enterprises.

Vietnam has set a double-digit growth target for the immediate future. What new requirements does this create for harmonizing economic growth with environmental protection and emission reduction goals?

A higher growth target will inevitably require more resources and energy. This is a natural rule.

In this context, one of the most important factors is changing corporate culture in the way resources and energy are used. In recent years, Vietnam has seen clear progress in shifting enterprise awareness.

In addition, tools and technologies must be deployed to help enterprises translate this cultural shift into concrete action. This will help ensure economic growth while achieving climate and environmental goals and reducing GHG emissions.

If core industries transform in this direction, related industries, commerce, and services will also shift within the overall supply chain ecosystem.

Of course, this requires time, human resources, financial capacity, and technological readiness. Vietnam has made strong initial progress, and with greater effort in the time ahead I believe we can achieve both economic growth and sustainable development goals.