Page 88 - Ebook HTKH 2024

relevant agencies to compile a list of subjects who must purchase liability insurance to
compensate for environmental damage; stipulate the minimum level of responsibility

for each subject, however, up to now there are still no regulations related to this content
as well as other types of green insurance, causing difficulties for insurance businesses
in Vietnam in designing and building green insurance products. In fact, there are
currently only 04 businesses, including Bao Viet - Tokio Marine Insurance Company
Limited, AIG Vietnam Insurance Company Limited, Chubb Insurance Company
Limited and Fubon Vietnam Insurance Company Limited, accounting for a relatively
low rate of 5.26%, providing green insurance products and the green insurance products
provided only stop at the type of environmental liability insurance.

Although the carbon market is still relatively new in Vietnam, it has a lot of
potential to grow and benefit the community. Nevertheless, there is currently very little
legal framework in place to support this activity. Currently, the Government has just
issued Decree No. 06/2022/ND-CP dated January 7, 2022 regulating greenhouse gas
emissions mitigation and ozone layer protection, which stipulates the development
roadmap, timing of implementing the domestic carbon market and implementing

domestic and international credit exchange projects.
Opportunities: (i) Vietnam has advantages in natural and social conditions to
promote green economic growth; (ii) Green economic growth is currently a global trend;
(iii) Vietnam has relatively low carbon emissions per capita and natural resources are
quite abundant; (iv) Vietnam receives active support from countries and international
organizations around the world such as UNDP, WB, GGGI, USA, Japan,... through
which it can learn from the experiences of other countries; (v) Responding to the global

green economic development trend, the Government of Vietnam has issued many
strategic documents such as: Decision No. 2139/QD-TTg dated December 5, 2011 on
approving the “National Strategy on Climate Change”, Decision No. 432/QD-TTg dated
April 12, 2012 approving the "Vietnam Sustainable Development Strategy for the period
2011-2020"; Decision No. 1393/QD-TTg approving the “National strategy on green
growth for the period 2011-2020 and vision to 2050”,... This is the legal basis to promote

green economic growth in Vietnam.
Limitations: Besides opportunities, Vietnam's path to building a green economy
also faces many challenges. This is shown in the following points: (i) Green economic
growth is a relatively new concept in Vietnam; (ii) Currently, the gap between awareness
and action of many state agencies, businesses and communities in protecting the
environment is still very large; (iii) The government has strategies for sustainable
development but does not have a policy to encourage the purchase of recycled,
environmentally friendly products in the government's public spending activities; (iv)

Most residents still use low-quality goods, affecting sustainable development; (v)
Vietnam's economy currently consumes a lot of energy; (vi) Vietnam still lacks many
policy tools to encourage the social community to act towards green economic growth.
The implementation of policies to encourage environmentally friendly projects has not
been effective. Financial tools to support green growth have

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