Sustainability remains the key growth sector in Vietnam. This is driven by several factors – economic growth, climate change, and Vietnam’s commitment to net-zero carbon emissions by 2050.
International commitment: at the UN Climate Change Conference in Glasgow (COP26) in 2021, Prime Minister Pham Minh Chinh announced the country’s commitment to phase out coal power generation by the 2040s and achieve net-zero carbon emissions by 2050. On July 26, 2022, in its National Strategy on Climate Change, Vietnam announced a 43.5% emissions-reduction target by 2030, sector-specific emissions targets for 2030 and 2050, and qualitative suggestions for achieving these goals. At COP28 in December 2023, Vietnam extended its climate commitments by joining the Global Cooling Pledge, which aims to reduce greenhouse emissions from the cooling industry by at least 68% by 2050.
Vietnam’s 2014 Law on Environmental Protection penalizes violators, while the Revised Law on Environmental Protection, effective January 1, 2022, emphasizes community involvement and business responsibility. Decision 450/QD-TTg promotes circular economy development and waste management till 2030 to protect the environment.
Public support: in March 2024, TGM Research, in collaboration with PRO Vietnam, has conducted the Waste Segmentation in Vietnam report, offering invaluable insights into consumer awareness, attitudes, and actions regarding reduce, reuse, and recycle practices. Vietnamese individuals across various cities exhibit a high level of environmental consciousness:
- 95% of Vietnamese surveyed show interest in environmental issues,
- 80% express concern about waste, with dust and air pollution also being significant concerns,
- 83% believe the 3Rs (reduce, reuse, recycle) positively impact the environment, however only 51% personally sort all their waste.
This provides great foundation for further education activities driven both by the authorities as well as businesses.
Economic opportunities: investments in renewable energy projects, including wind and solar farms, sustainable agriculture, and eco-tourism, have created economic opportunities and green jobs, driving development and environmental protection.
Already now, Vietnam’s share of electricity produced by solar energy has increased from practically zero to nearly 13%, higher than in other economies such as France or Japan, making it the 10th largest solar power producer in the world.
However, moving from coal to renewable energy requires a serious shift in planning, production, and distribution. The country will need to invest in enabling infrastructure—such as transmission and distribution grids, as well as utility-scale storage—to integrate renewables into the grid, bridge short-term supply shortages, and cover distances between power plant sites and demand centers.
This economic shift should go hand-in-hand with the implementation of Sustainable Development Goals. In May 2017, Vietnam promulgated the National Action Plan for the Implementation of the 2030 Agenda for Sustainable Development (NAP 2030). General policies for the implementation of the SDGs in Vietnam have been issued in synergy with the Resolutions and Directives of the Government. The National Socio-Economic Development Strategy for the period 2021-2030 has fully integrated 17 SDGs into its directions, tasks, and solutions.
Vietnam has made remarkable progress towards some targets, but more efforts are needed to stay on course for goals related to GreenTech, including goal #6 Clean Water and Sanitation, goal #7 Affordable and Clean Energy, goal #9 Industry, Innovation, and Infrastructure, goal #11 Sustainable Cities and Communities, and goal #12 Responsible Consumption and Production.
Areas of focus for further development: include wastewater treatment management, increasing the share of renewable energy, infrastructure development, urban solid waste collection and treatment, environmental pollution reduction, and the execution of sustainable practices.
For that, the Vietnamese government sees a big role played by international companies and investors. On March 14th, 2024, during the Annual Vietnam Business Forum, Prime Minister Pham Minh Chinh stressed the importance of FDI in promoting green growth. He also said that the Government will focus on three guarantees (political stability, social order and safety, and energy security), three breakthroughs (in institutions, laws, mechanisms and policies; in infrastructure development; and in administrative reform and human resource development), and three enhancements (enhancing the trust of enterprises, improving transparency and equality, and strengthening support for enterprises in green and sustainable growth) to create favorable conditions for stable and sustainable enterprise development in Vietnam.
This creates big opportunities for CEEC countries to enter the Vietnamese market, bring innovations, and ensure long-term assurance from the Government, aligned with the country strategy and international commitments.
Here is what General Manager of ALPLA, Marco Fritsche shared on this topic:
As a leading plastic processing company from Austria, with a plant in Dong Nam Industrial Park, we offer our customers in Vietnam attractive packaging solutions. Sustainability and green tech are very important aspects of our company processes. We see many opportunities in plastic recycling to complete the full cradle-to-cradle process. To enable this, further development of waste collection infrastructure and feedstock management is required, supported by administrative reforms and business incentives. This will provide an additional boost and attract more international investors.
Tatiana Masalska – Laska
Chief Experience Officer at TGM Research