Vietnam targets a green economy worth $300bln by 2050

Vietnam has set a target of increasing its green economy’s contribution to GDP from $6.7 billion in 2020 to $300 billion by 2050, according to Minister of Planning and Investment Nguyen Chi Dung.

It will, however, need to adopt drastic and breakthrough steps to fulfill the target, he told a recent conference with the theme “Promoting Green Growth in Vietnam: Roadmap to Success”.

The global economy is facing multiple crises, from public debt increases and high inflation to the impacts of the Russia - Ukraine conflict and climate change, which require countries to renew their growth model to tap opportunities and overcome the challenges and post sustainable and inclusive development, he said.

“Green growth is increasingly becoming the top priority for economies amid the world’s complex, unpredictable fluctuations and intertwined challenges,” he said.

For Vietnam, green growth towards economic prosperity, environmental sustainability, and social justice is not only an inexorable choice but also an opportunity for it to become a pioneer in the region, according to Minister Dung.

It will also help it catch up with world development trends and realize its historic commitment to achieve net-zero emissions by 2050.

On that basis, the Ministry of Planning and Investment advised the Prime Minister to issue the National Strategy on Green Growth in the 2021-2030 Period and Vision to 2050 and the National Action Plan on Green Growth for the 2021-2030 Period.

The strategy defines that green growth is an important solution to restructure the economy in connection with a renewed growth model, improving competitiveness and resilience to external shocks and contributing to reducing greenhouse gas emissions towards becoming a carbon neutral economy in the long term.

It focuses on key priorities such as modern administration, advanced science and technology, high-quality human resources, digital transformation, and smart and sustainable infrastructure.

“Vietnam therefore identifies green growth as a long-term option to ensure balance and harmonize the goal of reducing total greenhouse gas emissions and developing and growing the size of its economy,” Minister Dung said.

Preliminary research results from Boston Consulting Group (BCG) show that in terms of boosting green growth, the transition of the wind and solar power industries alone could contribute $70-80 billion to GDP and directly create about 90,000-105,000 jobs.

The clean hydrogen ecosystem based on renewable energy also has the potential to contribute $40-45 billion to GDP annually, create about 40,000-50,000 jobs, and benefit both the domestic market and exports to developed countries around the world.