Green economy needs boost to attract FDI

Vietnam is seen as an attractive investment destination for foreign investors and so needs to focus on developing a green and sustainable economy in order to attract high-quality FDI in the time to come, according to analysts.

It should focus on investing in digital transformation and the application of green technology in production and business activities to help manage the impacts and adapt to climate change, according to Ms. Carolyn Turk, World Bank (WB) Country Director for Vietnam. The shift to a green economy is considered to bring many opportunities to Vietnam, especially after it set a goal of net zero emissions by 2050 at the 26th United Nations Climate Change Conference (COP26) in Glasgow.

According to Mr. Nguyen Minh Cuong, Chief Economist at the Asian Development Bank (ADB) in Vietnam, with positive growth prospects for 2022, investment activity in the country is expected to recover this year after being affected by Covid-19. Vietnam needs to be ready to attract the resource by preparing a list of potential projects and completing its legal framework to gain access to and mobilize green financial resources to achieve its sustainable economic development goals.

Consumption trends in countries with developed economies have changed, as they are not only interested in product quality but also about production being under environmentally-friendly processes. Developing a green economy will also be an important factor for Vietnam competing to attract investment.