PM urges FIEs lead the way on green transformation

On March 19, at mid-term VBF 2024, themed "FDI enterprises pioneer in implementing green growth strategies", the PM proposed and expressed his desire for FIEs to continue accompanying and supporting Vietnam in implementing green transformation and sustainable development following "three pioneering, three propelling, and three ensuring goals".

"Vietnam identifies green growth as one of the two core elements (alongside digital transformation) in restructuring the economy towards enhancing productivity, quality, efficiency, competitiveness, and sustainable development. Resolutely rejecting growth first, clean-up later, it is important to focus on transitioning from brown to green growth models, and effectively mobilising and utilising internal and external resources for developing green ecosystems, the circular economy, and energy transition," he said.

Although global FDI (foreign direct investment) is declining, Vietnam is still a bright spot. In 2023, registered FDI reached nearly $36.6 billion, an increase of 32.1 per cent from the previous year, while realised FDI capital reached nearly $23.2 billion, an increase of 3.5 per cent.

In the first two months of 2024, registered FDI reached $4.3 billion, up 38.6 per cent, while realised FDI capital reached $2.8 billion, up 9.8 per cent. As of the end of February, there were over 39,500 effective FDI projects, with total registered capital of over $473 billion from 145 countries and territories. Additionally, Vietnam is also promoting outbound investment and achieving positive results.

"I ask foreign-invested enterprises (FIEs) to continue supporting Vietnam in terms of capital, technology, management, and human resource development, and call on them and foreign investors to accompany Vietnam in pursuing green transformation and sustainable development following three pioneering goals," PM Chinh said.

They are pioneering in perception with innovate thinking, approaches, and practices towards green growth. Pioneering in technology transfer, and promoting research and development to serve green growth. Pioneering in implementing specific green growth projects, revitalising traditional growth drivers, and adding new growth drivers.

Alongside this, international organisations and partners must continue supporting and propelling Vietnam's development in three aspects.

Propelling cooperation, sharing experiences, and consulting on policies focusing on priority areas such as green transformation and digital development. Propelling financial support and technical assistance for Vietnam, focusing on projects with ripple effects, breakthroughs, changing trends, seeking and connecting with suitable partners, and emphasising effective mobilisation and utilisation of green financial resources. Propelling training and developing human resources, especially high-quality labour serving key economic sectors and emerging fields.

Vietnam also commits to ensuring three areas. Ensuring the legitimate rights and interests of businesses in general and FDI in particular, and guaranteeing stable and green growth-oriented development amidst global trends like climate change. Ensuring independence, sovereignty, unity, territorial integrity, political stability, social order, and policy stability for investors' peace of mind. Ensuring stable energy supplies towards green transformation, and developing green transformation, the digital economy, and digital transformation.

Additionally, Vietnam will push for strategic breakthroughs in institutional reform for green and digital transformation, economic and social infrastructure in health, transportation, education, green and digital transformation infrastructure, and breakthroughs in human resources.

The government is committed to supporting the business community, both domestic and foreign, in the spirit of harmonious interests, shared risks, and working together – winning together.

Vietnamese and foreign investors have considered green business as a strategic advantage for competition.

Developing an emissions trading system (ETS) and a carbon credit market are two key solutions that the Vietnam Business Forum (VBF) Environment Working Group mentioned at the technical session.

The Vietnam Business Forum (VBF 2024) took place this morning in Hanoi, themed "FDI enterprises pioneer in implementing green growth strategies" and chaired by Prime Minister Pham Minh Chinh.