Page 296 - Ebook HTKH 2024

technology and clean energy through other channels such as legal documents,
procedures, favorable investment mechanisms, as well as capital and land support.

Through expanding green certifications and tax support, interest rate support for green
loans combined with loosening regulations and tax exemptions for businesses and
projects that have good impacts on the environment and society.
Financial policies need to be designed to trigger investment from the private sector.
Private sector investment will be critical to help decarbonize Vietnam’s economy,
requiring institutions to innovate and develop green finance tools. Despite requiring a
capital investment of $34 billion for its green transition, Vietnam secured only $200
million in private investments in 2023.

Secondly, diversifying the methods of attracting financial resources for green
growth through public-private partnership. Diversify the channels of green finance and
stabilize the infrastructure to facilitate financial transactions. With the applications of
information technology, it is crucial to modernize transaction processes and establish
transaction mechanisms that align with international standards. This is in order to create
a premise to form a favorable environment for the private sector to invest in climate

change and green growth. It is crucial to increase investment under public-private
partnerships, as the state budget resources for investment in this field are limited.
Large-scale projects requiring public-private partnerships have the potential to
attract the assistance of multinational companies to maximize their impact and lead to
benefits for all industries. Achieving the greening of the economy requires a
combination of government incentives, investment capital and support measures to
ensure a smooth, sustainable economic transition.

Thirdly, the information disclosure policies on carbon emissions and ESG
parameters are needed by the public. In order to improve transparency in green finance
markets and promote more informed investment, lending and insurance underwriting
decisions, the government and relevant ministries need to improve information
disclosure policies on carbon emissions and ESG parameters, to enhance information
transparency and minimize information asymmetry in the financial market. This will

attract the participation of various financial institutions, especially international
investors, and increase the liquidity of green financial investment channels. Developing
electronic bond trading platforms, as chosen by many countries, can improve liquidity,
transparency, and market management.
Vietnam’s government needs to organize training sessions and publish guidance,
and build a common platform to share knowledge between businesses and investors,
insurance companies, the government, non-governmental organizations and regulatory
agencies. At the same time, the government should contribute to the development and

standardization of safety reporting requirements and advocate the use of green indexes.
Fourtly, strengthening cooperation and support from international
organizations. The more dynamic an economy becomes, the more energy it requires to
power it. Vietnam’s energy demands increase by 10% every year. Vietnam’s

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