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Lucrative new resource

Stakeholders tell VET about the huge potential forests hold in terms
of environmental protection and carbon credits.

The rate was established by Vietnam
T he Ministry of Agriculture and in 2018 but is still considered reasonable. Vietnam can sell 40-70 million carbon
Rural Development (MARD)
credits from forests to the global carbon
reported to the Prime Minister It is necessary to improve carbon credit market each year. At a price of $5 per
in late 2023 on the signing of documents quality from forests in order to secure a credit, the forestry sector is expected to
to transfer 10.2 million tons of carbon higher price, which calls for not only earn $200 million annually.
dioxide in Vietnam’s north-central region better carbon absorption capacity but also Vietnam is forecast to earn billions
to the World Bank (WB) at a price of $5 improvements to the working conditions from selling forest carbon credits into the
per ton, for a total value of $51.5 million. of those who protect and preserve forests. future. More importantly, its ecological
This was the first time Vietnam had This is also related to socio-economic cri- environment will benefit from forest pro-
sold carbon credits from its forests. The teria and a sustainable environment. tection and development, helping the
funds have been used to fund local With a total forest area of 14.79 million country fulfill its target of net-zero emis-
authorities and pay forest owners, organ- ha and a forest coverage rate of 42 per sions by 2050, as it committed to at COP26.
izations assigned to protect natural cent, Vietnam is among 60 countries in Many international organizations and
forests, and others conducting activities the world able to sell carbon credits from foreign companies have proposed that
relating to greenhouse gas emission its forests. MARD has estimated that Vietnam negotiate the trading and
reductions to protect and develop forests, exchange of carbon credits from forests.
contributing to curbing deforestation The country is estimated to sell 5.15
and forest degradation while increasing million carbon credits from the central
incomes and improving the living con- highlands and southern region in the
ditions of forest growers. 2022-2026 period at a price of $10 per
Some people are of the opinion that a ton. MARD is preparing documents and
price of $5 per ton is low compared to the the conditions for negotiation, to sign
price of $70-100 in European countries. agreements as soon as possible. Many
However, in Vietnam, the selling price is Deputy Minister of Agriculture and localities have proactively built plans for
set on a voluntary basis. Other countries Rural Development Nguyen Quoc Tri the pilot of forest carbon absorption and
around the world sell carbon credits on a storage services and submitted these to
voluntary basis at an average price of $3.80. the Prime Minister. %

14 Vietnam Economic Times April 2024 en.vneconomy.vn