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COVER STORY

Possessing Potential

The establishment of a carbon market in 2028
will offer many benefits to Ho Chi Minh City.

By HONG VINH

A carbon market will also t the “Carbon Market Policy: Forecasting and use production inputs more efficiently, thereby
create investment Impact and Guiding Policies from Ho Chi contributing to increasing Total Factor Productivity
attraction opportunities in A Minh City” workshop, held recently by the (TFP) and enhancing competitive strength (accord-
the field of renewable University of Economics Ho Chi Minh City (UEH), ing to “Porter’s Five Forces”: Competitive Rivalry,
energy and environmental
technology and bring in Professor Su Dinh Thanh, Director of the UEH, Supplier Power, Buyer Power, Threat of Substi-
international climate emphasized the role of a carbon market in socio- tution, and Threat of New Entry).
finance, stimulating the economic development. Furthermore, a carbon market will also create
growth of the green “Participating in the international carbon market investment attraction opportunities in the field
economy and creating will help Ho Chi Minh City enhance its international of renewable energy and environmental technology
new job opportunities. standing in joint efforts to combat climate change,” and bring in international climate finance, stim-
he told the gathering. “Effectively utilizing the ulating the growth of the green economy and
unique mechanisms and policies as stipulated by creating new job opportunities.
Resolution No. 98/2023/QH15, which was passed
by the 15th National Assembly and contains specific Opportunities
mechanisms for the development of Ho Chi Minh & challenges
City, will enable the city to seize opportunities, UEH has made significant contributions in
minimize challenges, and contribute to achieving recent times to building and implementing a car-
the goal of reducing greenhouse gas emissions and bon market for Ho Chi Minh City. It has collabo-
promoting sustainable socio-economic development.” rated with local authorities in conducting research
This is a significant advantage for the city’s gov- on the matter, as well as the impact of the Carbon
ernment in asserting its leadership, dynamism, Border Adjustment Mechanism (CBAM), and
and creativity while prioritizing environmental has proposed solutions in adaptation, including
protection and sustainable development. potential assessments, development of models,
A carbon market is an effective tool aimed at and appropriate policy measures. It has also pro-
reducing greenhouse gas emissions towards achiev- vided advisory services to local government agen-
ing Vietnam’s goal of net-zero emissions by 2050, cies, businesses, and other involved parties regard-
and will contribute to improving environmental ing a carbon market and associated initiatives.
quality and enhancing public health, particularly Many experts and scientists at the workshop
in terms of economic efficiency. It will also provide identified that Ho Chi Minh City holds great
incentives for businesses to innovate technologies potential for piloting and operating a carbon

10 Vietnam Economic Times April 2024 en.vneconomy.vn