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SUSTAINABLE ECONOMIC GROWTH: A GLOBAL PERSPECTIVE
AND CASE STUDIES FROM CANADA AND VIETNAM

Pham Thi Thanh Huong
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Abstract: Sustainable economic growth, also known as green growth, is an approach to
economic development that seeks to harmonize economic progress with environmental sustainability.
This paradigm has gained substantial traction recently as the world grapples with climate change,
resource depletion, and ecological degradation. Canada and Vietnam have made notable progress in
green economic growth, but their trajectories reflect their unique economic contexts and environmental
challenges. Canada focuses on reducing its reliance on fossil fuels and enhancing energy efficiency,
while Vietnam is rapidly expanding its renewable energy capacity to support its economic growth. The
Green Revenue Classification System (GRCS) by FTSE Russell provides a robust framework for
categorizing business activities based on their environmental benefits, thereby facilitating the
assessment and enhancement of green growth. This article examines the GRCS framework, evaluates
the green growth of the Canadian and Vietnamese economies, and proposes recommendations to bolster
sustainable economic development.
Keyword: Sustainable, green growth, energy, renewable

1. Introduction
Sustainable economic growth is an urgent and important goal for countries
worldwide. By categorizing and assessing business activities according to the GRCS
tiers, we can better identify areas that require focus and investment to achieve this goal.

Both Canada and Vietnam, despite their different economic conditions and stages of
development, can learn from and apply suitable strategies to promote green growth,
contributing to a more sustainable future.
In the last decade, many studies on green economic growth moved towards a
sustainable economic development model. These works analyze the greening economy
alongside other factors such as the rational use of natural capital and the prevention and

reduction of pollution. However, finding a reasonable method of measuring green
economic growth remains controversial.
Several methods are currently used to evaluate this growth. These methods, while
varying in approach, collectively offer insights into the balance between economic
growth and environmental sustainability, helping to guide policy and investment
decisions
Green GDP: Green GDP adjusts the traditional Gross Domestic Product (GDP) by
accounting for environmental degradation and resource depletion. It subtracts the cost

of environmental damage and natural resource depletion from the conventional GDP,
providing a more accurate reflection of sustainable economic growth.
Following the presented method by Aleksy Kwilinski et al. (2023), Green
economic growth can be calculated using the Malmquist-Luenberger Global
Productivity Index, considering resources, outcomes (GDP), and undesirable results

(environmental emissions) in the production process. Alexander Vaninsky (2021)

12 Faculty of Economics, Hanoi Open University, Email: huongpham.vs@gmail.com
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