Vietnam is highly vulnerable to climate change and has committed to reducing greenhouse gas emissions through its green growth strategy and national action plan. Key challenges include mobilizing the significant financial resources and technology needed to implement green growth projects. Solutions proposed include improving legal frameworks and establishing a climate finance task force to advise on reforms to better utilize and mobilize international climate funds. Engaging the private sector through public-private partnerships and demonstrating pilot projects are also seen as important to attract private investment for green growth.

1. Towards a Green, Developed and Prosperous Viet Nam
Le Duc Chung, National Technical Consultant
Dept. of Science, Education, Natural Resources and Environment
Ministry of Planning and Investment of Vietnam
Vietnam Green Growth Strategy
Green Inclusive Growth

2. Contents
Vietnam National Green Growth Strategy
(VGGS), and Draft Action plan (GGAP)
Challenges and Solutions
Lessons

3. Viet Nam is among the most
vulnerable countries in the world to CC
• Viet Nam’s rate of
emissions growth
currently outstrips that
of its GDP growth and
committed to reduce
the emissions.
Vietnam Climate
Vulnerability Map from
Francisco & Yusuf 2009
• Over the past decade, climate related
disasters (particularly storms and floods)
have caused an annual average cost in
damages of 2-6 percent of GDP;

4. LEGAL & INSTITUTIONAL FRAMEWORK
• 2011-2015 Socio-economic development plan
Recognizes climate change as a significant threat to development
and reaffirms commitments on improved natural resource and
disaster risk management.
• The CC related strategies/action plans
- 2011 Vietnam Climate Change Strategy (VCCS);
- 2012 Vietnam Green Growth Strategy (VGGS) and the National
Action Plan to Respond to Climate Change (NAPCC);
- Action Plan for Green Growth (just approved of 20 Mar 2014);
- The National Target Program to Respond to Climate Change
(NTP-RCC) - three phases (2008-2011, 2012-2015 and 2015-
beyond).

5. VGGS development
• Prime Minister (PM) issued notice in Mar’ 2011 (38/TB-VPCP
Mar 2011) which stated that low carbon growth is part of the
Green growth strategy
• First step: Strategic Framework development
– A drafting and Editorial board were established which included
representatives from key Ministries (MOIT, MONRE, MARD, MOT)
– Development of a strategic Framework
• Consulted with the international community by November 24 2011
• Second step: Detailed Strategy
– Consultation with stakeholders (2 with private sector and 3 with local
government/academia and civil society; and one with international
community (May 14, 2012))
– Review by editorial board and line ministries
– Feasibility assessment of low carbon options
– Study tours to Korea, Mexico and Germany/Netherlands
– Peer review of the strategy by Global Green Growth Institute and UNDP.
• Final Draft submitted and approved on Sep 25, 2012 by the PM’s
Decision: 1393/QD-TTg.

6. Vietnam Green Growth Strategy
A strategy to promote the process
of restructuring and improving
economic institutions towards
more efficient use of natural
resources, improved
competitiveness of the
economy which will be
achieved through increased
investments in technological
innovation, natural capital and
economic instruments. This will
contribute to respond to
climate change, reducing
poverty and ensuring
sustainable economic
development.
•Strategic Task 1 - 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 Task 3 - Greening of
Lifestyles and promoting
sustainable consumption.

7. Stakeholder involvement in Drafting the Viet Nam
Green Growth Action Plan
• Based on the assigned tasks, MPI with the support of UNDP and the
international donors, in collaboration with the working group of the
industry, local, business associations develops the draft and
organizes consultations;
• On 21 Jun’ 2013: 1st Consultation for the initial draft with ministries
and donors, development partners in Hanoi;
• Consultation for 1st revised Draft with provinces, businesses and
CSOs: 1) Central region, on 9 Aug’ 2013 in Da Nang City; 2) the
Central Highlands region, on 12 Aug’ 2013 in Da Lat City (Lam Dong);
• Consultation for 2nd revised Draft with provinces, businesses and
CSOs: 3) East and South West on 23 Aug’ 2013 in HCM City; 4)
Northern region, on 06 Sep’ 2013 in Ha Long City (Quang Ninh);

8. VGGS Action Plan (Draft)
12 task groups with 66
activities dealing with
several aspects:
- Institutional
Arrangements;
- Revision of Master
plans;
- Technological Transfer
- Business promotion of
enterprise
development;
- Financial
arrangements.
•The role of the private sector and a number of
incentives to encourage their participation,
Vietnam Chamber of Commerce and Industry
will chair one group of activities;
•The role of government: to create a favorable
legal environment and promulgate the
criteria, supporting technology transfer,
replicating good models;
•Setting high priority for activities of awareness
raising and institutional setting up for period
2013-2015;
• Provinces, ministries, sectors to prepare GG
activity plan with at least 02 indicators:
Reducing energy consumption per unit of GDP
and Reducing GHG emission intensity in key
production sectors;
•Green Finance, Green Job introduced;
•M&E: reporting regime annually.

9. DEMAND FOR GREEN FINANCE
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 3 725.00 2.61 -45.27
Textile 2 0.00 0.08 -60.28
Household 10 2,279.19 16.54 -32.32
Pulp and paper 2 0.00 0.19 -93.46
Electricity Generation 10 27,625.00 61.37 16.11
Iron and steel 3 79.50 0.22 -44.60
Road transportation 1 0.00 3.45 0.00
Total 35 30,729.56 85.12
List of GHG emission options and the result of MACC, 2020 (discount rate = 12%)

10. Solutions
• Improve Legal Framework to mainstreaming CC/GG in Socio-
economic development plan, public financial managements,
banking
• 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…).
+ Set up Climate Finance Task Force & Climate Finance Options.
• Climate Finance Utilization:
+ Green Investment Guideline for public investment in cooperation
with Global Green Growth Institute.

11. Challenges
• Resources both finance and technology: to implement Green
growth strategy, about $30 billion needed by 2020 while and
the Gov’t and private sector investment limited, technology
level of Vietnam is still low;
• Shortage of policies to mobilize financial sources, particularly
International Climate funds to invest in CC/GG;
• Difficulties in mobilizing international and domestic investors
for in terms of legal framework, policy;
• Banking sector and SMEs competencies remain issues;
• Social and environmental co-benefits are taken into account;
• Ensure stakeholder engagement in selecting low carbon
development options;
• Training and retraining the green jobs;
• Avoid the reliance on difficult to manage high data
demanding models (demystifying low carbon growth).

12. 4/8/2014

13. Solutions
• Establishment of Climate Finance Task force to
advice the Government of Vietnam on necessary
reforms needed to utilize and mobilize better
financial resources available World wide.
• Vietnam Climate Public Expenditure/Investment
Review (CPEIR) to assess the institutional set up and
governance structures, the existing climate finance
architecture and suggest appropriate directions for
developments of the fiscal policy framework in Viet
Nam.

14. Future Options for Climate/GG Finance Management
Two options for mobilizing and managing climate finance
Develop a new entity Use existing structures
Green
Growth
Facility
MPI
(mobilizes &
monitores)
Line ministries
(strategic functions &
coordinating implementation
Implementing agencies
(NGOs, etc)
National
Climate
Change
Committee
Governing
Bodies
Steering committee,
Technical committee
Implementing agencies
(NGOs, etc)
Trustee
e.g. a bank, or an
internat.l organ.
(If it is a trust fund)
All line
ministries
and
relevant
governm.
agencies
CF Task
Force
CB for
GGS
Facility
manager
(MPI, or a seperate
organisation)
Source: UNEP/Frankfurt School of Finance and Business

15. Solutions
• Engagement of private sector:
+ Government investment policy and ODA will be used as a
catalyst to attract/create favorable environment for private
investment in CC/GG (Technology transfer/Pilot projects/Good
practice);
+ Introducing on PPP modalities (infrastructure, power
generation).
• Example: Green Growth Supporting Facility: 5,500,000EUR
in which: Belgian contribution: 5,000,000 Euro, Vietnam
contribution: 500,000 Euro

16. Factors for Success
 Use multiple channels to raise awareness and policy development at all levels—
from top leaders to the grassroots level with participatory approach from the
beginning and throughout the policymaking process;
 Provide direction and clarity to local governments, community and investors
through the development of long-term strategies for achieving green growth and
addressing climate change;
 Integrate CC/GG and other climate measures into development planning;
 Enhance and make use of international cooperation and support;
 Develop appropriate flexible finance modalities which enable blending of different
funding sources and facilitate innovation;
 Business and local people community engagement and full participation are key for
succeed;
 Market-based mechanisms are important driver for GiG options.
(sources: Low Emission Development Strategies and others)
Thank you for your attention!4/8/2014