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Unleashing

new investments

Mr. Shantanu Chakraborty, Country Director, Vietnam Resident
Mission, at the Asian Development Bank (ADB), tells VET how
international finance fuels green economic development and
sustainable development in Vietnam.

INTERVIEW

% What recent support has the ADB Transition Partnership (JETP), the ADB multi-faceted approach to successfully
given to promote green economic devel- has pledged up to $1 billion of public promote green economic development,
opment, sustainable development, and sector financing and up to $1.1 billion in sustainable development, and shifting
shifting green capital flows in Vietnam? non-sovereign financing to fund appro- green capital flows in Vietnam. This
With a vision of becoming the climate priate investments. Through the ADB’s approach should include:
bank of the Asia-Pacific region, the ADB energy transition mechanism (ETM), we Developing a robust national policy
is elevating its ambition in climate financ- are exploring assisting Vietnam in unleash- framework on the green economy that pri-
ing. We expect to provide $100 billion in ing new investments in clean energy, grid oritizes sustainable development goals
cumulative climate financing from our strengthening, and energy storage, in align- and green growth initiatives. Vietnam’s
own resources to our developing member ment with the strategy and master plan National Green Growth Strategy, which
countries during 2019-2030. for electricity and energy from the Viet- covers the 2021-2030 period with a vision
The ADB’s Country Partnership Strategy namese Government, by undertaking stud- to 2050, provides a blueprint for restruc-
2023-2026 outlines our approach to support ies on decarbonizing its power sector. turing the country’s growth model to achieve
Vietnam in transitioning to a green econ- In supporting Vietnam’s green growth economic development while minimizing
omy and harnessing the private sector and agenda, the ADB is leveraging its extensive the environmental impact. While this
promoting social equity. ADB has allocated experience in the region. The ADB has sup- framework includes clear targets, timelines,
about $300 million of its recent green ported countries in developing sustainable and actionable strategies for green growth,
bonds proceeds to eligible low-carbon bond markets, such as developing bond it needs further revisions and flexibility to
transport and climate adaptation projects frameworks and taxonomies; supporting adapt to new developments and initiatives
in Vietnam. Looking ahead, a majority of the preparation and issuance of green bonds to attract resources from and the involve-
our pipeline, as agreed with the govern- by government entities and State-owned ment of the private sector. Vietnam also
ment, is in climate-positive projects in the enterprises; and investing in green bonds. adopted the Law on Environmental Pro-
urban, agriculture, and natural resources ADB is also a major participant in sustainable tection, which took effect on January 1,
sectors, amounting to around $800 million capital markets as an issuer itself. We have 2022. The Law aims to harmonize Vietnam’s
of estimated climate finance. issued a total of $10 billion equivalent of laws with international rules and practices
In private sector lending, the ADB has green bonds, and also issued our first blue and provides more details for implemen-
been promoting green and sustainable bond of $300 million in 2021. tation. However, carbon pricing and emis-
economic development in Vietnam sions trading systems are still in the devel-
through several green loans to Vietnamese % What are the key factors to success- opment stage and need to be enhanced
enterprises for renewable energy, electric fully promote green economic devel- quickly. Effective enforcement and moni-
vehicles, etc. which meet international opment, sustainable development, and toring mechanisms are also necessary to
green bond principles standards. shifting green capital flows in Vietnam? ensure compliance and accountability
The ADB is also promoting green One of the key factors for Vietnam is within these frameworks.
growth and supporting Vietnam’s strong the strong political commitment to green Prioritizing investments in renewable
climate commitment of “net-zero emissions growth and ambitious climate targets. energy sources, such as solar, wind,
by 2050” through energy transition initia- These targets need to be effectively hydropower, and biomass, can significantly
tives. To support Vietnam’s Just Energy implemented with a comprehensive and reduce Vietnam’s reliance on fossil fuels

en.vneconomy.vn April 2024 Vietnam Economic Times 23