1. Viet Nam Green Growth Strategy
Dr. Pham Hoang Mai
Director General
Dept. of Science, Education, Natural Resources and Environment
Ministry of Planning and Investment of Vietnam

2. VIETNAM and MDGs Vietnam has completed three MDGs:
to eradicate extreme poverty and hunger,
to achieve universal primary education,
to promote gender equality and empower women.
There is big possibility that Vietnam complete MDG 4 and MDG 5 of reducing Child mortality rates and improving maternal health before 2015.
Three other MDGs including (i) to combat HIV/AIDS, Malaria and Other Diseases, (ii) to ensure environmental sustainability, (iii) global partnership for development have created positive outcome.

3. CHALLENGES Economic Challenges:
Existing Growth model of Vietnam based on:
Extensive exploitation of natural resources;
Investment from Government (including ODA) and foreign direct investment;
Low competitiveness;
Social and Environmental Challenges:
Many MDGs have been achieved but still fragile;
Low quality of life due to pollution, decreasing traditional cultural values;
New challenges such as climate change, widening the gap between developed and developing countries.
New Way of Growth – GREEN GROWTH.

4. VIETNAM GREEN GROWTH Vietnam Green Growth Strategy:
To promote the process of restructuring and improving economic institutions towards more efficient use of natural resources, improved competitiveness of the economy.
This will contribute to respond to climate change, reducing poverty and ensuring sustainable economic development.

5. Vietnam Green Growth Strategy
Strategic Task 1 of Low Carbon Growth: by 2020 to reduce voluntarily the intensity of greenhouse gas emissions by 8-10% as compared to the 2010 level and 20% with additional international support;
Strategic Task 2: Greening Production with the aim to encourage the development of green industry and green agriculture based on environmentally friendly structures, technologies and equipment;
Strategic 3: Greening of Lifestyles and promoting sustainable consumption.

6. Cost of CO2 emission reduction (US$/ton CO2)
MACC OPTIONS
CO2 emission reduction potential of sub-sectors/options by cost 2020
Sub-sector
Cost of CO2 emission reduction (US$/ton CO2)
<=0
<=5
<=10
<=20
No. of option
Amount of emission reduction
(MtCO2)
Amount of emission reduction
Building 3
0.17
Construction material 1
0.49
Cement
2.61
Textile 2
0.08
Household 8
14.80 9
16.22
Pulp and paper
0.19
Electricity Gen.
15.49
17.96
61.23
Iron and steel
0.09
0.22
Road transportation
3.45
Total 22
21.88 25
38.92 27
41.38 33
84.65

7. KEY SOLLUTIONS
Review and adjust sectoral and regional master plans towards limiting the development of economic sectors that generate significant environmental pollution and degradation of natural resources, while creating favourable conditions for the development of new green production sectors;
Create legal frameworks supporting Green Growth;

8. KEY SOLLUTIONS
Development of sustainable infrastructure for: transportation, energy, irrigation and urban works
Promote clean and green technological innovation
Sustainable Urbanization
Develop the new rural model with lifestyles in harmony with environment
Promoting sustainable consumption and building green lifestyles
Human Resource Development

9. VGGS Action Plan
Total: 12 group of activities with 66 activities dealing with several aspects:
Institutional arrangements;
Revision of Master plans;
Technological transfer;
Promotion business involvements;
Financial arrangements.

10. Challenges
Total economic costs of CC are about 2-6% GDP or $3-9 billions (ADB 2009) and $1-2,5 billion will be needed for adaptation;
To implement Green growth strategy, about $30 billion will be needed by 2020;
Shortage of policies to mobilize financial sources, particularly International Climate funds;
Difficulties in mobilizing international and domestic investors.

11. DEMAND FOR GREEN FINANCE
List of GHG emission options and the result of MACC, 2020 (discount rate = 12%)
Sub-sector
No. of options
Total capital cost (mil. US$)
Total annual CO2 emission saved
(MtCO2)
Average MAC
(US$/ton CO2)
Building 3
3.33
0.17
-69.46
Construction materials 1
17.54
0.49
-14.39
Cement
725.00
2.61
-45.27
Textile 2
0.00
0.08
-60.28
Household 10
2,279.19
16.54
-32.32
Pulp and paper
0.19
-93.46
Electricity Generation
27,625.00
61.37
16.11
Iron and steel
79.50
0.22
-44.60
Road transportation
3.45
Total 35
30,729.56
85.12

12. THE ROLE OF GOVERNMENT
Revise development strategy toward scale down industries which heavily based on the exploitation and consumption of natural resources;
Create social security system to maintain the MDGs achievements;
Set up legal framework for Green Growth;
Promote the participation of private sector;
Facilitate the transfer of modern technology;
Implement pilot Green projects and disseminate good practices.

13. Forms of Climate Change Finance
1. Public:
Government investment for Climate Change projects and programs including Green Growth (around $1 billion annually):
- National Targeted Programs (NTP-RCC, Energy Efficiency, Reforestation);
- Projects and programs directly link to Climate Change and Green Growth.
Current expenditure for research, capacity building projects
ODA: from 1993 of about $12 billion under the forms of CC related projects & programs and budget support;
Others: REDD+, Vietnam Environment Protection Fund, CDM.
2. Non-Public: Private Investment under the forms of FDI, Equity, Local Investment etc.

14. PUBLIC EXPENDITURE & INVESTMENT FOR 5 MINISTRIES & 2 NTP (2010-2013)

15. ODA & CLIMATE FINANCE
4/22/20174/22/20174/22/2017

16. Solutions
Legal Framework: Formulating Action plans/ Priority Projects for Climate Change & Green Growth strategies.
Climate Financial Mobilization:
+ Develop market based mechanism to generate financing for green growth (NAMAs, future cap and trade system).
+ Improve existing capacity and consolidate the set up and strengthening of fiduciary procedures for resource mobilization (VEPF, VGGSF…) and formulating national institutions eligible for direct access to funds.
+ Set up Climate Finance Task Force & Climate Finance Options.
Climate Finance Utilization:
+ Formulating Adaptation Prioritization Framework & Green Investment Guidelines for public investment.

17. Solutions Engagement of private sector:
+ Government investment and ODA will be used as a catalyst to attract/create favorable environment for private investment in Climate Change/Green Growth (Technology transfer/Pilot projects/Good practice);
+ Introducing on PPP modalities (infrastructure, power generation ).