Group Presentation 1.

Give overview about economic growth in Vietnam. What are the main
characteristics of Vietnamese growth model? Is it sustainable or not and what
are policy implications? 

I. Some Basic Concepts of The Economy 

1. Definition of The Economy.
“Economy is the art of making most of life” - according to George Benard Shaw, a
famous critic and political activist. 
An economy is a complex system of interrelated production, consumption, and exchange
activities that ultimately determines how resources are allocated among all the participants. The
production, consumption, and distribution of goods and services combine to fulfill the needs of
those living and operating within the economy. An economy may represent a nation, a region, a
single industry, or even a family. 

2. The importance to evaluate the wellbeing of the economy yearly.

One of the main objectives of the Vietnamese socio-economic development plan is to
accelerate economic growth. If economic growth is overlooked, many issues will arise. 
Let’s take our country, Vietnam, as an example. 
 From 1976 to 1986, we had to endure the economic recession, which was really severe.
People didn't have enough food to survive, the inflation rate was around 700-800% 
 In the 1983-1985 period, the economy was nearly depleted. 
 But then, it moved to a new phase with many great achievements, which is called the
transitional economy, from 1986 to 2000, because of a shift in our economic module.
And this cannot be done without the right assessment of economic growth. 

3. Some concepts related to the Economy Growth 

 GDP: gross domestic product
 GVA: gross value added
 CPI: Consumer price index
 Inflation: a general increase in the prices of goods and services in an economy

II. Overview of Vietnamese Economic Growth in Vietnam (2016-2020).

1. GDP growth rate
 Source: Statistical Yearbook of Vietnam 2020, General Statistics Office

Economic growth was maintained at a reasonable level in the period 2016-2019. On

average, in the period 2016-2019, the GDP growth rate achieved 6.78%, 0.87 percentage points
higher than the average growth rate of 5.91% per year in the period 2011-2015. 

2020 witnessed the lowest annual growth rate in the period 2011-2020 (2.91%) due to the
complicated development of the Covid-19 pandemic. However, Vietnam is among successful
countries which had a positive economic growth rate. 

2. GDP per capita

 Source: Statistical Yearbook of Vietnam 2020, General Statistics Office
The economic growth rate was higher than the population growth, so the GDP per capita at
current prices increased from 2,022 USD per person in 2016 to 2,750 USD per person in 2020.

3. Total factor productivity

The contribution of total factor productivity (TFP) saw an increase, on average in the
period 2016-2020 it is estimated at 45.42%, exceeding the set target (30-35%). Notably, in the
period 2016-2019, when not yet affected by the Covid-19 epidemic, TFP's contribution reached
nearly 46%, one and a half times higher than the previous period which is just around 33%.

III. The main characteristics of Vietnamese Economic Growth Model

1. The Definition of an Economic Growth Model. 
The economic growth model is a basic expression of economic growth through economic
variables and the relationship between them. 
2 types of Economic Growth Model:
 EG in width mainly relied on the growth of L and K. 
 EG in depth mainly relied on the growth of TFP – Total Factor Production. In general,
improvements in TFP reflect the contribution to output as a result of the more efficient use
of resources or the adoption of new production technologies 🡪 EG in depth is more
sustainable. 

2. Main characteristics of Vietnamese Economic Growth Model.

1. In width development.

 
 Source: Statistical Yearbook of Vietnam 2020, General Statistics Office
Enhancing the quality of economic growth in Vietnam (Nguyen Ngoc Son, 2021)

→ In width: based on the input structure, the economic growth momentum of Vietnam in recent
years has still been based on the resource-intensive growth factors (accounting for over 50%), of
which capital is still the most important driving force. 
However, there are signs of switching to in depth: the increase in the contribution of the TFP
(illustrated as the linear trend line on the figure). More significantly, according to the General
Statistic Office, “In the 2016-2020 period, TFP's contribution to economic growth averaged
45.42%, much higher than the average of 32.84% in the period 2011-2015”.
→ First characteristic of Vietnamese Economic Growth Model: develop in width, starting
to shift to in depth. 

b. Unsustainable and low-quality growth.

Capital (K):
In the period of 2011-2020, the ratio of investment to GDP decreased, but still remained at
32.5%. This is also a high rate compared to that of some countries in the region, only lower than
China’s. 
Incremental Capital - Output Ratio (ICOR):  
ICOR explains the relationship between the level of investment made in the economy and the
consequent increase in GDP. The higher the ICOR, the lower the productivity of capital. 
 Source: Statistical Yearbook of Vietnam 2020, General Statistics Office

ICOR decreased from 6.42 in 2016 to 6.08 in 2019. On average, in the period 2016-2019,
the ICOR reached 6.13, lower than the figure of 6.25 in the period 2011-2015. We can see that
although the investment efficiency is showing signs of increasing when ICOR gradually
decreases in the period of 2016 - 2019 but it’s still high compared to our neighboring countries,
which suggests that our use of capital is still inefficient and unsustainable. Due to the severe
negative effects of the Covid-19 epidemic and flooding, we will not include the year 2020 in the
pattern. The economy cannot perform as well as it did previously under normal conditions
making the ICOR reach 14.28.

Labor (L): 
Labor productivity: 
Increasing labor productivity is the key factor in ensuring high-quality growth. The labor
productivity in Vietnam has remarkably grown by 5.02% per year in the period of 2011-2019. 
However, it's still on the low spectrum among ASEAN countries. 
 Source: Enhancing the quality of economic growth in Vietnam (Nguyen Ngoc Son, 2021)

Labor skill level: 

Viet Nam’s employment distribution by skill level shows a slightly lower share of high-skill
employment than the average of the lower middle-income countries. However, our share of low-
skill employment is also lower, leading to a large, 53% share of medium-skill level employment.
While the average lower middle-income country relies significantly on low-skill employment,
Viet Nam seems to have moved away from that growth model. 

Source: Vietnam Productivity Report (2021), ILO

High-skill employment has been growing faster than medium-skill or low-skill

employment in the country. Although this trend is optimistic, more than one-third of all workers
in Viet Nam still have a low skill level, implying that further efforts are needed to promote skills
development and the creation of high-skill jobs. 

Source: Vietnam Productivity Report (2021), ILO

→ Second characteristic of the Vietnamese Economic Growth Model: 
 The use of capital is still inefficient and unsustainable.
 Labor skill level and productivity remain lower than global averages. 
Both K and L are promising in terms of quantity, however they lack competitiveness in the
global market in terms of quality.

c. Limited participation in the global value chain

Participation in global value chains will provide Viet Nam with increased value creation, more
and better jobs, proper specialization and positioning in the global economy, and the spillover
effect of technology and management that raises domestic capacity (Taglioni & Winkler, 2016).

According to the WTO definition:

 “Backward participation” is the amount of value added of inputs that were imported in
order to produce intermediate or final goods/services to be exported.
 “Forward participation” is the amount of domestic value added contained in
intermediates (goods or services) exported to a partner economy that re-exports them to a
third economy.
 “Participation in global value chains” is the sum of these two ratios. 
 The value-added components of gross exports and related GVC trade flows
Source: World Trade Organization
Year Forward participation Backward participation Participation in the GVCs
(%) (%) (%)

2010  12.5 40.5 53

2015 11.1 44.5 55.6

2018  11.0 51.1 62.1

Source: Viet Nam productivity report 2021, Viet Nam: Trade in VA and GVCs, 2018 (World
Trade Organization)

Vietnam’s forward GVC participation was declining: 

 Sign of growing assembly industries. Since the assembly activities in Vietnam are
continuously growing and devoted primarily to end-consumption goods, Vietnamese
products are consumed directly in third countries instead of being used as input supplies
(intermediary products) for another product. In other words, made-in Vietnam goods are
favored in foreign countries. 
 Achievement of the economic restructuring process, specifically, the transformation of
export, from raw materials (crude oil, coal and raw agro-products) to goods for
consumption with high production content.

Additionally, Vietnam’s backward GVC participation was increasing.

According to the Viet Nam productivity report 2021, this rise in Viet Nam’s backward linkage is
most likely to be regarded as the development of supporting industries, occurring in computer
and electronic devices, garment and footwear, food and beverages, and electrical machinery. We
may judge that the policy of supporting industry promotion thus generated good results at least in
these products. However, these industries are mainly engaged in labor-intensive middle-stream
activities such as sewing, cutting, and manual assembly. Moreover, what these supporting
industries have constructed mainly consists of components imported from foreign suppliers
rather than Vietnamese ones. 

→ Third characteristic of Vietnamese Economic Growth Model even with active foreign
trade and FDI, Viet Nam’s participation in global value chains is limited and does not
augment domestic value very much.

3. The main causes of Vietnam's economic growth challenges 

 Relatively low capital efficiency and labor quality.
 Weak supporting industries 
 Incomplete institutions and policies. 

IV. The Solutions for Vietnam's economic growth challenges

Experience from the leading countries shows that the high growth rate does not necessarily
create a strong and prosperous economy. High growth is only a prerequisite, it is far from being
“sustainable”. In order to break the growth’s bottlenecks, countries need to pay more attention to
the quality aspect of growth through strengthening institutional reforms, investing in human
resources, capital, as well as restructuring the economy.

• Improving the quality of human resources Human capital development is the most important
factor to ensure long-term economic growth and poverty reduction. Therefore, there should be
solutions to improve the quality of education and training as follows: The key solution is to
renovate and improve state management capacity in education and training. Comprehensive
education reform aims to bring the education system in line with the country’s economic
development requirements. Increasing investment in education through various sources, of which
investment from the state budget should increase. Support and accelerate digital transformation
in the business sector through policy breakthroughs. Take advantage of Industry Revolution 4.0
to promote science and technology development, innovation and labor productivity. 
 
• Improving the capital efficiency In order for the economy to grow, Vietnam not only needs to
increase investment but also use capital effectively. Therefore, on the one hand, it is necessary
to promote the investment ability of the people and the private sector, attract more foreign direct
investment. On the other hand, it is necessary to improve the efficiency of the use of state
investment, prevent ineffective investment, and fraudulent investment. 

• Improving the quality of institutions: Continue institutional reform and improve the
business environment are the core and most important factors that create new driving forces for
economic growth. Strengthening institutions of market mechanism, effectively mobilize them in
line with the socialist-oriented market economy of Vietnam; Strictly applying the principles of
publicity and transparency in the processes of management, exploitation and use of the country’s
resources; Reforming and improving the quality of socio-economic development strategies;
Develop and strictly impose strong sanctions that help prevent actions towards authoritarianism
and monopoly, the ask-for-the-given mechanism, group benefits;...

CONCLUSION
Although Vietnam has attained very encouraging economic development achievements, it is still
growing below its potential and is currently facing many quality-related shortcomings in the
medium and long term. Therefore, removing bottlenecks on both quantity and quality growth is
essential for Vietnam to close the development gap with other countries in the region and the
world.

REFERENCE LINKS
1. https://www.gso.gov.vn/wp-content/uploads/2021/06/Dong-thai-va-thuc-trang-2016-
2020.pdf
2. https://www.grips.ac.jp/teacher/oono/hp/docu03/Viet%20Nam%20Productivity%20Report
%202021.pdf
3. https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-hanoi/documents/
publication/wcms_730825.pdf
4. https://www.gso.gov.vn/wp-content/uploads/2021/07/Sach-NGTK-2020Ban-quyen.pdf
5. https://vietnamjournal.ru/2618-9453/article/view/87080
6. https://www.wto.org/english/res_e/statis_e/miwi_e/vn_e.pdf
7. https://www.wto.org/english/res_e/statis_e/miwi_e/explanatory_notes_e.pdf

Group Presentation 2.
Present the economic productivity in Vietnam and make comparison with
those of the world? What should we do to improve our productivity?
1. Basic concepts: (chuyển) -> chiếu vid -> (chuyển)
 Productivity: Productivity is a crucial concept in economic growth and welfare. There are
some nations richly endowed with natural resources such as oil, gas, diamond, But most
other nations devoid of such a given advantage, including Viet Nam, must accumulate
knowledge, skills, and technology to climb the industrial ladder. For such nations,
attaining high income and improving productivity is essentially the same thing. That is
why productivity enhancement is critical for Viet Nam’s socio-economic development.
(chuyển)
 Labour productivity: measures the number of goods and services a unit of labor can
produce in a given period of time (usually an hour). Improving labor productivity would
obviously require an increase in the number of goods and services labor could produce.
These could be gained by increased education and training. Additionally, improvements
in production methods, technology and capital would make labor more efficient and more
productive. (chuyển)
 TFP: This is the amount of output that is not explained by the number of various inputs
used in production, showing effectiveness in the utilization of inputs. (chuyển)
 Quality: In manufacturing, a measure of excellence or a state of being free from defects,
deficiencies, and significant variations. (chuyển)
  Innovation: Innovation is a process by which a domain, product, or service is renewed
and brought up to date by applying new processes, introducing new techniques, or
establishing successful ideas to create new value. (chuyển)

2. The economic productivity in Vietnam (chuyển)

2.1 Productivity over time

- Viet Nam’s economy-wide productivity has increased over time but its speed was moderate
and unstable. In absolute value (constant 2010 price), labor productivity of the whole
economy grew from 18.9 million VND per worker in 1991 to 54.4 million VND per worker
in 2015.
-> Vietnam’s past productivity performance was good but not spectacular. 
-> Vietnam’s speed of catching up with high-income economies has been slow. 

- Vietnam’s labor productivity evolved in three distinct stages: high growth (1991-95),
stagnation (1996-2012) and recovery (2013-). 
(chuyển)
- In the first stage, Vietnam steadily eliminated barriers to market and decisively
integrated into the international community. 
This was a revival of economic growth from past suppression and returning to the path which
the nation was supposed to tread. 
- In the second stage starting from the mid-1990s, productivity growth slowed down. The
Asian financial crisis in 1997-98 and the global financial crisis in 2008-09 disturbed the
Vietnamese economy. 
- In the third stage, the situation began to improve and productivity growth approached
the speed in the first stage (until the COVID-19 pandemic hit the national as well as global
economy in 2020). (chuyển)
2.2 Productivity by economic activity
(biểu đồ, bảng 2.2) In general, labor productivity of three main economic sectors—(i)
agriculture, forestry, and fisheries; (ii) industry and construction; and (iii) services
(chuyển)

Among them, agriculture, forestry, and fisheries had the lowest labor productivity in absolute
level while industry and construction had the highest labor productivity. The latter sector
includes activities with high labor productivity such as mining and certain manufacturing. These
three activities have each improved significantly over the years). (chuyển)

2.3 Productivity of Viet Nam and selected countries

- When compared with selected Northeast Asian and ASEAN countries, Viet Nam’s labor
productivity is still very low despite reasonably high economic growth in the past two-and-a-
half decades. In 2015, labor productivity of Viet Nam’s nine sectors (following the APO’s
industrial classification) was at or just above the lowest level in the region. (CHUYỂN)

- (You can see in this graph, Vietnam is the red line) Our productivity was the lowest in
manufacturing; construction; and transportation, storage, and communications. 

3. Solution to improve our productivity: (chuyển)

3.1 The evolution of productivity policy 

The awareness of the importance of productivity in Viet Nam generally lagged behind those of
other countries, the term “productivity” was not mentioned very much. It just started to change
by 1986 that Viet Nam officially introduced reforms known as Doi Moi or “Renovation”. The mid-
1990s witnessed Viet Nam’s great effort to reintegrate into the world. Viet Nam not only joined a
range of international organizations but relation with the United States was also normalized. As
a result, The vital role of productivity was increasingly recognized and we can see that the
government has tried step by step to improve the nation’s productivity. 
and now we can look at some policy efforts that vn has adopted (chuyển)

3.2 Viet Nam’s policy efforts in improving total factor productivity

Many measures and actions have been adopted to improve enterprise productivity
the most outstanding one is the appearance of
The VNPI and Program 712, the two core components of the productivity policy of VietNam,
were built to attain the goal of guiding enterprises, relevant ministries and major cities to create
action programs for agencies under their authorities. They create lots of activities in each project
to support enterprises. 
However, after examining these 2 components, we see that although they both want to find out
and apply new strategies, policies, mechanisms to improve productivity, they has not fully
fulfilled its expected role because main reasons like weak support and commitment from top
national leaders, limited visibility and budget, lack of cooperation among authorities or provinces
and lastly, there was not enough enthusiasm at all.
Show song song 2 cái bảng này cùng 1 slide ạ
3.3 A search for national model
As a late comer nation, Viet Nam must learn models and tools for enterprise productivity
improvement from foreign sources, especially from those that are famous for their
productivity movements such as Japan, Singapore, Western countries, and international
organizations. but foreign models must in the long run be converted to a genuine
homemade model.

Here are productivity tools can learn from Japan:

Chiếu vid https://www.youtube.com/watch?v=fcBXtwGexNc

Viet Nam has worked on productivity for many decades. Even so, the results of many
policies remain ineffective. The productivity movement of Viet Nam has so far been
small, scattered, and only partially implemented. 

If workers, managers, and responsible government officials do not possess the right
attitude and dedication to absorb new knowledge and work hard for improving efficiency,
any productivity tool will prove useless because it is learned only superficially and soon
forgotten. Learners must have a strong internal urge to adopt new tools.

KB: 
In recent years, Việt Nam's labor productivity has increased in both value and speed, making
important contributions to the country's socio-economic development. Despite improvements,
Việt Nam's labor productivity is still considered low compared to other countries in the region
and around the world. Improving labor productivity is the shortest way to help the economy
develop rapidly, and sustainably and catch up with the development levels of other countries in
the region. This needs the participation of all levels, sectors, and society to raise awareness. 

Questions:
 Q1: Why is Việt Nam's labor productivity still considered low compared to other countries
in the region and around the world?
-> Some of the main reasons leading to this situation are the small size of our economy
and slow economic restructuring. In addition, although the process of economic and
labor restructuring has gained positive achievements, it is still slow. Labor restructuring
is happening relatively fast but the labor force in agriculture, forestry, and fishery is still
large. The majority of laborers in these sectors are unskilled and seasonal with unstable
jobs, resulting in low added value and low labor productivity.

 Q2: What is the best way to improve Vietnam's labor productivity?

-> Increasing investment in training skilled employees, modernising technology and

manufacturing lines, and improving the management capacity of CEOs are the three
major factors to increasing labour productivity in Vietnam.

 Q3: How can we measure productivity and changes in productivity in Vietnam?

          -> A labor productivity index can be calculated by dividing an index of output by an index
of hours worked. When more than one index is included in a calculation, all the indexes must
have the same base period.
 Group Presentation 3.
Please describe the current state and forecast of energy use in Vietnam. What
factors influence the increase in energy demand in the short and long term?
Present proposals to contribute to sustainable energy supply in Vietnam.
BASIC CONCEPTS
Energy is the ability to do work
Scientists define energy as the ability to do work. Modern civilization is possible because people
have learned how to change energy from one form to another and then use it to do work. People
use energy to walk and bicycle, to move cars along roads and boats through water, to cook food
on stoves, to make ice in freezers, to light our homes and offices, to manufacture products, and to
send astronauts into space.
There are many different forms of energy, including:
 Heat
 Light
 Motion
 Electrical
 Chemical
 Gravitational
These forms of energy can be grouped into two general types of energy for doing work:
 Potential or stored energy
  Kinetic or working energy
Energy can be converted from one form to another. The stored chemical energy in coal or natural
gas and the kinetic energy of water flowing in rivers can be converted to electrical energy, which
in turn can be converted to light and heat.
Energy sources can be categorized as renewable or nonrenewable
There are many different sources of energy, which can be divided into two basic categories:
 Renewable energy sources: Renewable energy is energy from sources that are naturally
replenishing but flow-limited; renewable resources are virtually inexhaustible in duration
but limited in the amount of energy that is available per unit of time.
The major types of renewable energy sources are:
Biomass
o Wood and wood waste
o Municipal solid waste
o Landfill gas and biogas
o Biofuels
Hydropower
Geothermal
Wind
Solar
 Nonrenewable energy sources:  When these sources are used up, they cannot be replaced,
which is a major problem for humanity as we are currently dependent on them to supply
most of our energy needs 
Renewable and nonrenewable energy sources can be used as primary energy sources to produce
useful energy such as heat, or they can used to produce secondary energy sources such as
electricity and hydrogen.

DESCRIBE
Context
According to Institute of Energy of Vietnam (IEV), Vietnam is set to face a surge in power
demand and consumption over the coming decade, which will have an impact on its energy
security. The Government of Vietnam expects power consumption to grow 10-12 percent
annually through 2030, one of the fastest power consumption growth rates in Asia.

According to IEV’s report in March 2021, installed power-generation capacity in Vietnam is

approximately 56 GW. The Vietnamese electricity system has a total installed power source
capacity of about 69GW (including hydroelectric plants imported from Laos and rooftop solar
power)

In the capacity structure of the national power source in 2020, coal-fired power accounts for
about 33 percent, hydroelectricity accounts for 29 percent, gas turbines and oil-fired thermal
power accounts for 14 percent, and solar power (including rooftop solar power) accounts for 23
percent, and others about 1 percent (wind power, biomass power, import of hydroelectricity
from Laos). Maximum load capacity of the power system in 2020 is about 38.7 GW, The crude
reserve ratio of the power system (excluding wind and solar power) is 34.3 percent.
Accordingly, electricity capacity is expected to increase by an annual average of 5.7 percent
between 2021 and 2030, totaling 129.5GW by 2030. It also sets out USD 148 billion worth of
investments to increase power generation and develop the electricity network, of which 74
percent is to be directed to power sources and 26 percent to grid development for 2021 – 2030.

Main issues with power sources:

 Hydropower source: Currently there are about 17GW of large hydroelectricity over 30
MW and 3.4GW of small hydroelectricity. As of the end of 2019, major hydropower
dams have seen record low water levels, due to changing weather patterns in the
country, which is likely to threaten hydropower generation output for years to come.

 Coal thermal power: Vietnam is seeking to reduce coal-fired thermal power from 34
percent of its power source in 2020 to 27 percent in 2030. Despite increasing pressures
on its environmental impact, coal will remain the most practical option in the near term
to stimulate affordable electricity generation growth at the pace and scale needed by the
country. However, during this period, there will be no additional development of new
coal-fired thermal power. The Draft PDP8 suggested that only on-going coal-fired
thermal projects currently under construction and under investment promoted for
operation during the 2021-2025 period is included in the PDP8.

 Renewables: Currently limited and fluctuates due to an underdeveloped grid capacity

and a prevalence of baseload thermal sources.

 Nuclear Power: In November of 2016, the Vietnamese government postponed its

nuclear power program. Reason why? Due to Communist party?

Independent Power Producers (IPPs)

Vietnam currently has 73 power plants (hydro, thermal, gas, renewables source), 48 of those
with capacity greater than 30MW. As EVN’s self-financing and other sources of debt financing
only meet about 66 percent of the total investment requirement, IPPs are expected to carry a
large portion of the investment in the power generation sector, including those to be developed
by foreign investors.

Transmission and Distribution

The Vietnamese government shall only maintain its monopoly of electricity transmission
grid(s) to ensure national energy security. Vietnam’s existing energy infrastructure is
inadequate with weak grid capacity, which will obstruct the integration of new capacity,
particularly from renewable energy projects. According Vietnam’s National Power
Transmission Corporation (EVNNPT), an EVN subsidiary, which operates a total of 153
substations, 25,236km of transmission lines, and a total transformer capacity of 91,256 MVA.

In the PDP8, the MOIT proposes to continue ctricity from major power source centers in the
Central Highlandsbuilding a 500kV power transmission system to transmit ele, South Central
Coast, and North Central region to major load centers of Vietnam. Ho Chi Minh City and Red
River Delta to strengthen the interconnected transmission grid to support the North-Central-
South power transmission.

Accordingly, in the period between 2021 – 2030, the country will need to build a total of about
86 GVA capacity of 500kV station and nearly 13,000 km of DMZ. With this grid development
program, Vietnam’s power grid initially meets N-1 criterion for power supply for loads and N-2
criterion for particularly important loads.

Some leading sub-sectors in Vietnamese energy sources are:

1. Liquified Natural Gas (LNG)-to-Power
Natural gas will also remain a key source of power generation for Vietnam at seven GW in
2020 to 13.5 GW in 2025 and 28-33 GW in 2030, bringing it from 15 percent in 2020 to 21-23
percent in 2030 with a more substantial growth as more LNG terminals enter into operation.

Vietnam has a favorable geographical location and convenient LNG transportation route
including many deep-water ports and existing gas infrastructure systems that can be used.
Developing the LNG sector is an inevitable trend for Vietnam to diversify fuel sources for
electricity generation and contributing to ensuring energy security for Vietnam.

The Vietnamese government highlighted the use of LNG as a source for power generation and
will look to create more favorable conditions for foreign investors to develop such projects
given depleting domestic gas resources and rising investor interests in LNG projects. By the
end of December 2020, there were about 26 GW of gas-fired power capacity projects in the
pre-FID phase in Vietnam.

2. Renewable Energy
The PDP8 prioritizes the development of solar and wind power sources in large scale.

The ratio of renewable energy (excluding hydropower) in the PDP8 has increased to almost 30
percent in 2030. The PDP8 expects that by 2030, onshore and near-shore wind power will
develop an additional capacity of 9 GW, offshore wind power will develop an additional
capacity of 2-3GW, solar power will develop an additional capacity of 7GW, biomass power
will be reduced by 0.5 GW, and small-scaled hydropower will be reduced by 1.8 GW.
2.1) Offshore WindPower (at an area with a seabed depth of over 20m):
The Vietnamese government has also proposed several policies in recent months to boost the
development of the wind energy sector. The current FiTs for offshore wind is highly attractive
at 9.8 US cent/kWh which were increased from the previous rate.   Because of difficulties
caused by he COVID-19 pandemic the FiT was extended from the original COD deadline in
November 2021 to the end of 2023.

In the PDP8, Binh Thuan, Bac Lieu and Ca Mau were highlighted as prioritized provinces for
offshore wind development. Up to December 2020, many investors registered to research and
invest in the South Central region with the total scale up to about 36 GW. Along Vietnam’s
coastline, high wind areas with good economic potential are only located in the South Central
region with total potential is about 80GW.

2.2) Solar power:

By the end of 2020, grid-connected solar power sources that had  been put into operation were
up to about 9,000 MW. The capacity scale of the additional planned solar power projects is
over 13GW, with the total registered construction scale, but not yet added, at about 50GW.

The total technical potential of solar power is very large at  up to 1646GW. The total scale
potential for development of large-scale solar power nationwide is about 386GW, mainly
concentrated in the South, the South Central region, and the Central Highlands.

2.3) Biomass and Co-generation (Sugar):

There are currently approximately 150MW biomass installations with potential capacity of
500MW in 2020, and its anticipated there will be 2,000MW by 2030. At present, most biomass
plants in Vietnam are CHP biomass projects which are used for self-generation in sugar mills.

The theoretical potential of biomass energy in Vietnam from the combustion of rice husk, rice
straw, corn cob, cassava stalk, bagasse, and sugar cane waste is estimated at more than 2,500
MW.

FDI Encouragement and Challenges

The Government of Vietnam’s policies are to diversify investment sources, encourage foreign
investors in power development with BOO and PPP.

For renewable power sources, the government has launched the Direct Power Purchase
Agreement (DPPA) pilot program, where renewable energy producers can sell and deliver
electricity directly to corporate customers. The size of the DPPA program is expected to range
from 400 to 1,000MW, and will be implemented nationwide from 2020 to 2022.

Opportunities
Opportunities are promising in offshore exploration and production technologies, equipment
and services; engineering steel fabrication; LNG supplies, LNG infrastructure; and
petrochemical technologies and equipment.

USTDA has funded nearly 80 activities valued at USD 20 million in Vietnam over the last 20
years. Vietnam represents the agency’s largest country portfolio in Southeast Asia. Through
feasibility studies, technical assistance and pilot projects, the USTDA Project Development
Program helps oversee project sponsors, identify technological solutions, and various sources
of financing for priority infrastructure projects

Vietnam is one of the Southeast Asian countries with rapid GDP growth, from 6.5-7% annually,
leading to an average increase in energy demand of 11% per year. So, we will discuss some
factors that influence the increase in energy demand both in the long term and in the short term.

FACTORS IN THE SHORT TERM

Climate change can alter our energy needs. As temperature increases, demand for electricity
rises. According to TSE (Toulouse School of Economics), it is estimated that a 1 degree Celsius
increase would raise residential electricity consumption by about 5% and firm electricity
consumption by 4%. Households tend to use more electricity for air conditioning in the summer
and for heating in the winter.

Another factor can be technology, especially electric vehicles. According to the Vietnam
Registry, the number of electric vehicles (EV) registered in Vietnam was slightly more than
1,000 units by the end of 2020. Moreover, by July 2021, VinFast installed 500 EV charging
stations and plans to have 2,000 charging stations set up nationwide with over 40,000 charging
ports by the end of 2022. Therefore, Vietnam needs a lot of energy such as renewable energy
(wind and solar power) to meet the demands of the electric cars industry.

FACTORS IN THE LONG TERM

The rapid increase in demand for energy is attributed to expanding industrial and construction
sectors. For example, electricity consumption has grown with an annual average of almost 16%,
more than a half of the total electricity demand (FPT 2019). The four largest industries, paper,
cement, steel, and fertilizer, together consumed 15% of the aggregate demand in 2019 (United
Nations Development Programme 2020).    

This strong growth may be, in part, due to low energy prices and substitution of primary fuels
for other inputs such as labor and capital. Both primary energy and electricity power for
industrial and civil sectors in Vietnam are relatively cheaper than are those in other countries in
the region (Australian Energy Council 2019)—the legacy of the exploitation of hydropower,
which has very low operating costs, as the main energy source and large implicit subsidies of
fossil fuel extraction and consumption. In recent years, the coal price has increased by 40%,
forcing customers to shift from fossil fuel to using more electricity (United Nations Development
Programme 2019).
The population growth
In general, our consumption of natural resources increases as the human population expands.
More humans consume more freshwater, more land, more clothing, etc. The more people on the
planet, the more food you need to feed those humans (more fishing, more farming, more
deforestation to make room for agriculture and raising livestock, and so forth). Variation in
population size corresponded to variation in energy consumption at double the rate. That is, for a
20% increase in population size, energy consumption increased by 43.6%; conversely, for a 20%
decrease in population size, demand for energy decreased by 44.6%.

PROPOSALS
Facing those issues, Vietnam also offers solutions to contribute to sustainable energy supply: In
2015, the government announced the first-ever national development strategy for renewable
energy, aiming for renewables to account for around 32% of total primary supply and
electricity generation by 2030. Now the real problem is how can we do that.

1. Hydropower

Vietnam's energy system still relies heavily on coal and hydroelectricity, therefore, pumped
storage hydropower can be considered the next future for Vietnam's energy transition. With the
completion of the Long Biên power plant in 2017, Vietnam is well positioned to meet its
ambitious target of producing 7,000MW of electricity from renewable energy sources by inc (in
fact, we did). This mega project is expected to reduce the country's reliance on fossil fuels and
reduce carbon emissions. In fact, a report by the World Wildlife Fund found that thanks to this
and other ongoing hydropower projects, Vietnam's current generation mix is already more
carbon-efficient than its neighbors. 

Furthermore, pumped storage hydropower enables the balancing of supply and demand without
transmission losses in case of peak load demand by storing the water at lower levels during off-
peak hours. 

However, in order to take full advantage of its hydro potential, Vietnam must increase
investment in grid infrastructure and develop markets for excess electricity. This will go a long
way toward achieving the government's goal to produce 30 percent of its energy from
renewable sources by 2030.

2. Wind Power and Solar Power

In fact, Vietnam are developing renewable energy projects from wind and solar, but the
shortage of electricity in the Northern during the summer months still occurs, and on other
hand, fast increasing the amount of wind and solar power can lead to a renewable energy
imbalance. 

The solution to this problem is to develop a power transmission system to not only distribute
electricity to the areas in need but also to avoid the situation of "oversupply" when developing
the power network. 

In detail, the development of wind power and solar power is mostly done in the Central and
Southern regions - where the natural conditions are more favorable, and since the greater power
consumption is from the North, therefore, with a developed power transmission system, we can
move excess energy from the Central to the North.

3. Biomass
Biomass is another source of renewable energy in Vietnam. The country currently produces an
estimated 8 million tonnes of biomass each year, mostly from rice straw and sugarcane. 
As Vietnam's agricultural sector grows, the demand for biofuel will increase. 
Biofuels such as ethanol can be blended with gasoline to power vehicles or burned to generate
electricity using conventional combustion methods. 
This approach can ease the burden on traditional fuels and help to reduce emissions. The
government has also encouraged the use of biogas as an alternative energy source for domestic
use. 
However, as with other renewable energy sources, sustainable production of biomass is limited
by the government's ability to access sufficient land and resources. A carbon tax should also be
imposed to promote the consumption of clean energy sources and encourage the development
of a cleaner economy.

SUM UP
Factors in short term
Climate change and technology
Factors in long term
expanding industrial and construction sectors and population growth
And in the end, we suggested some solution
 investment in grid infrastructure and develop markets for excess electricity
(hydroelectricity)
 (Wind and solar power) develop a power transmission system
 Government has to enlarge access sufficient land and resources for increasing and
stablizing the production of biomass energy

Group Presentation 4.
Give overview of climate change status and trend in Vietnam? Identify the
impacts of climate change to Vietnam’s economy? Policy implications for
mitigation and adaptation of climate change in VN?
CLIMATE CHANGE / VIETNAM'S ECONOMY
I. Overview:
1. Definition:
Climate change is a long-term shift in global or regional climate patterns. Often climate change
refers specifically to the rise in global temperatures from the mid-20th century to present.

The Earth’s atmosphere consists of gases such as oxygen, nitrogen and other gases known as
greenhouse gases like carbon dioxide, nitrous oxide and methane. Incoming light from the Sun
hits the Earth’s surface. The Earth absorbs some of that energy, heating the surface of the planet,
the rest of that energy gets reflected. Some of that energy goes back on into space. The
greenhouse gases like carbon dioxide trap the energy and send it right back to the Earth’s surface
heating it up even more. This is known as the greenhouse effect. Now a little greenhouse effect is
natural to the Earth and is a good thing to have but a large greenhouse effect can be catastrophic
causing a lot of that energy to stay in our atmosphere and heat up the Earth at an accelerating
rate. 

2. Status and trend:

 Human activities: Greenhouse effects were mainly caused by human activities like fossil
fuel burning, waste pollution and deforestation.
 About fossil fuel burning, this link will show us how much CO2 emissions an
average person produces. As you can see in 2020, the CO2 pollution of Vietnam
is quite serious but still low, about one fifth compared to the big countries like the
US or Australia… However, this is not a great number to celebrate. When looking
more closely at Vietnam's emissions, we can see that before 2000, the figure
fluctuated but still stayed lower than 0.7 tons. After that period, it witnessed a
massive boom that led to the CO2 emissions of 2.64 tons per capita in 2020. And
there is a fun fact that this 2.64 tons of CO2 a person produced is equivalent to
321,138 smartphones charged.
When fossil fuels are burnt and their gas is mixed with heat, they create smog - a
thick air pollutant that is highly toxic. For example, a few days ago, on the
morning of September 14 2022, Hanoi's air pollution ranked third in the world
according to data on the AirVisual application with an AQI index of 164, above
the whole city of Beijing (China).
 Besides the air pollution, in Vietnam, according to the 2019 National State of the
Environment Report, the total volume of domestic solid waste generated
nationwide is about 64,658 tons per day, equivalent to 23.6 million tons of trash
dumped into landfills that year, up 46% compared to 2010.
 Deforestation not only emits greenhouse gases but it gets rid of plants, trees and
forests - the thing on our planet that actually absorbs CO2. The more we deforest
the less CO2 can be absorbed from our atmosphere. From 2001 to 2021, Vietnam
 lost 3.26Mha of tree cover, equivalent to a 20% decrease in tree cover since 2000,
and 2.25Gt of CO₂ emissions.

 Status and trend:

 Global warming:

So how did all these human activities affect climate change? According to an
ongoing temperature analysis led by scientists at NASA’s Goddard Institute for
Space Studies (GISS), the average global temperature on Earth has increased by
at least 1.1° Celsius since 1880 (14°C to >15.1°C). And as you can see in this
map, Vietnam’s temperature last year was more than 1°C hotter than the 1951-
1980 average. However, even the slightest change in these boundary conditions
represents a much larger shift for the chaotic weather system. So this 1°C change
might seem like a minor shift, but it has added the energy equivalent of roughly 1
million nuclear warheads into the atmosphere. 
According to the Department of climate change of Vietnam, I have summarised
this graph to show the average temperature change compared to the period 1980-
1999 under the average emission scenario. 

  Year

  2020 2030 2040 2050 2060 2070 2080 2090 2100

 °C 0.49 0.72 1.00 1.30 1.58 1.84 2.08 2.28 2.47

 The hotter temperature causes the rise of sea level unstoppably. According to the
data of Hon Dau national station, during 50 recent years, the sea level has
increased approximately 20cm. And if this situation persists, when the sea level
rises another 100cm, Vietnam will lose 40,000 km2 of land. According to the
2020 version of the Climate Change Scenario, if the sea level rises by 1 metre, it
will engulf 47.29% of the Mekong Delta area, about 17.15% of the area of Ho Chi
Minh City, 13.20% of the area of HCMC. area of the Red River Delta

 Extreme weather: 
The massive surge of energy has already led to a dramatic increase in a number of
extreme climate events and natural disasters like heatwaves, droughts and storm
surges. In the summary of the National Steering Committee on natural disaster
prevention and control you can see in this table. 
In addition, the extreme weather events have occured more and more seriously
from year to year
 Ngoài ra hiện tượng khí hậu cực đoan và thiên tai xảy ra ngày càng nhiều và
nghiêm trọng qua từng thời năm. Trong tổng kết của Ban Chỉ đạo Quốc gia về
phòng, chống thiên tai, tính từ đầu năm 2021 đến nay Việt Nam đã xảy ra 9 cơn
bão, 3 áp thấp nhiệt đới trên Biển Đông, 109 trận động đất nhẹ, 316 trận mưa đá,
dông lốc, sét; 140 trận mưa lớn, lũ cục bộ, trong đó 9 trận lũ ống, lũ quét, 157 vụ
sạt lở bờ sông, 7 đợt nắng nóng và 6 đợt không khí lạnh, gió mùa đông bắc.
 Trend: Kịch bản cho vài chục năm nữa :) Sea level rise scenarios for the coastal areas of
Vietnam
 
II. The impacts of climate change on Vietnam's economy (add rainfall)

1. Agriculture 
 Agricultural losses due to climate change in Vietnam are projected to reach 10.6
percent by 2050, depending on the climate scenario. 
 Notably, without climate change, Vietnam’s overall agricultural output would be
projected to increase by 36 percent by 2050. 
→ Climate change impacts would deprive Vietnam of a large share of its
agricultural productivity gains. Reduced crop yields could also lead to higher food
prices, with particular impacts on low-income people.
 Reasons caused the loss of agriculture
- The rise of sea level
  First, flooding will cause the loss of arable land in agriculture. If
the sea level rises by 1m, it is estimated that about 40% of the
Mekong Delta area, 11% of the Red River Delta area and 3% of
the area of other coastal provinces will be flooded. 

 Nationwide, Vietnam will lose more than 2 million hectares of rice

land (about 50%).

 Intrusion of salinity into freshwater reduces the growth of the

freshwater aquatic species, altering the ecosystem balance. For
instance, in the Mekong Delta, which is known as a vast spread of
fefrtile riverbeds, islets and mangrove swamps. It is now among
the most vulnerable regions in southern Vietnam. The delta is
home to more than 20 million people, who produce almost half of
the country’s rice harvest. A million hectares of land is regularly
affected by flooding due to ocean tides. Crops and people’s
livelihoods are at stake. Moreover, due to the rise of sea level, the
salinity intrusion extends up to 15 km and 50 km inland in the
rainy and summer seasons respectively.

⇒ As a “Doomsday Report”, the study suggests that Vietnam’s Ho Chi Minh City
could be underwater by 2050 and millions of people in Vietnam’s Mekong Delta
—the country’s main rice-growing region—could be forced to flee coastal areas.

 Extreme weather
 Drought (and lack of irrigation water) will affect the distribution of crops,
especially reducing yields, namely, the rice yield of the spring crop tends to
decrease more sharply than the other rice yield of the crop; winter corn yields tend
to increase in the Northern Region and decrease in the Central and Southern
Regions.

 Typhoon
 The 2020 typhoon season was particularly brutal. Vietnam faced at least seven major
storms, triggering torrential rainfall, major flooding, numerous landslides and massive
coastal erosion.
 The string of storms in 2020 triggered “some of the worst [flooding] we have seen for
decades” according to Nguyen Thu Xuan Thu from Red Cross Vietnam. Altogether, the
floods left 178,000 houses submerged, nearly 700,000 poultry and livestock killed and
masses of food crops destroyed. UNICEF reported that, as the sanitation facilities were
damaged by the typhoons, the people in the area were left with no access to clean water
for drinking, washing or cooking. 
The storm critically damaged much of the infrastructure in the region, with hospitals and
health centres damaged or destroyed, leaving many without vital health services.
⇒ Instead of using money to develop and expand the economy, Vietnam needs to spend
more money to restore the loss caused by climate change.
⇒  But this was only the beginning of the crisis. Vietnam is likely to continue facing extreme
weather conditions from now to 2050. Accordingly, temperatures in northern Vietnam will rise
by between 0.83.4 degrees Celsius by 2050 and continue its uptrend during the late 21st century.
The surging frequency of hotter days is forecast to severely hamper agricultural production.
Summer rainfall will decline in most areas. Meanwhile, storms may become rarer but fiercer,
causing possible flash floods and landslides in flood-prone areas of northern mountainous,
central and central highland provinces. The high resolution forecasts suggest sea level rises of
100mm–400mm along the entire Vietnamese coast by the end of the 21st century. If climate
change still continues in Vietnam, 5% of our country’s land, 11% of its population would be
affected with the losses estimated at 10% of GDP per year. 

2. Industry
Sea level rise of about 1m by the end of the 21st century will cause most coastal industry to be
flooded, the lowest is over 10% of the area, the highest is about 67% of the area.              
Raw materials for industry, especially raw materials for food processing, textile and garment
industries, will be significantly reduced because they are not supplied from raw material areas in
the Mekong Delta provinces, which are the most heavily flooded in Vietnam. This further
pressures the restructuring of industries in terms of industry type, processing industry rate, and
high technology.   

Rising temperatures increase energy consumption in industries: increase the cost of ventilation,
underground cooling and reduce the efficiency and output of power plants. Electricity
consumption for living increases and cooling costs in commercial industries also increase
significantly as temperatures tend to rise.

3. Forest 
 The forest sector contributes significantly to the country’s economy. 
  In addition, the forest provides a myriad of goods and services that support local
livelihoods and the economy. Given the geography of the country, forests play a
particularly critical role in watershed and coastal protection.
 Besides employment and timber and non-timber products, forests provide a range of
environmental services involving water resources, biodiversity, and climate protection.
Forests are a means for delivering adaptation measures, and well-planned and protected
coastal forests can deliver adaptation and economic benefits. Through the hydrological
cycle, forests help protect watersheds and their vegetation, water flows, and soils, and
store vast amounts of genetic information. Mangrove forests are particularly important in
protecting coastlines by reducing exposure to flooding and erosion. They are also some of
the most carbon-rich forests in the tropics, contributing to climate change mitigation.

 As we mentioned before, deforestation causes climate change, and climate change affects
back to the forest directly.
 Changing temperature, extreme weather, and precipitation patterns and increasing
concentrations of atmospheric CO2 are likely to have significant impacts on both natural
and degraded forests. Forest fires, insect outbreaks, wind damage, and other extreme
 events are expected to impose substantial economic costs on the forest sector. Climate
change has a negative impact on the poorest forest-dependent communities, which lack
adaptive capacity because of poverty, marginalisation, and geographic isolation.
⇒ If we do not take action, we will lose our fertility forest, which contributes
significantly to Vietnam' s economy.

III. Policies
Solution: adaptation (minimze impact) + mitigation (cut down GHG)

Despite the name, I won’t make a list of policies, but I will give you guys information about
Vietnam's commitment to deal with climate change, our challenges in execution and
recommendation. We hope this information will be helpful navigation for you guys as future
decision makers

First, let’s have a look at what Vietnam has done.

1. What Vietnam has done 

From 2016 to 2020:

The ministry of human resources and environment has contributed VND950 trillion to the State
budget. In 2020, revenue from land-related fields was doubled compared to 2015.

Policies on climate change adaptation were proposed in the period, contributing to minimising
damage from natural disasters. The level of damage, triggered by saltwater intrusion in 2019-
2020, was 9.6 percent lower than the level of damage caused by saltwater intrusion in 2016.

But according to Minister of Natural Resources and Environment Trần Hồng Hà: “The things we
have done over the years are just building the initial foundations for the development.”

2. Commitment
To continuing our efforts, Vietnam also took part in international conferences, amongst
which, the most significant and recent one is COP26 (United Nation Climate Change
Conference)
In 2021, the Vietnamese Government delegation led by Prime Minister Pham Minh
Chinh attended the conference, achieving good results. The Prime Minister emphasized
that “Climate change response and the restoration of nature must become the highest
priority in all development decisions", and called for fairness and justice in the global
response to climate change. 
 Vietnam made a commitment to develop and implement measures to reduce greenhouse
gas emissions to achieve net zero GHG emissions by 2050.
 Also at COP26, Vietnam, together with more than 100 countries, promised to end
deforestation and reduce methane emissions by 30% compared to 2020 by 2030.
  In addition, Vietnam has also committed to ending all investment in new coal-fired power
generation, expanding the scale of renewable energy deployment, and gradually phasing
out coal-fired power by the 2040s.

3. Challenges
These efforts are paving the way for further actions, but three challenges require immediate
attention:

 The imbalance between mitigation and adaptation is most visible in the

VGGS,Vietnam's new National Green Growth Strategy, which introduces several energy
intensity targets (nationwide and sectoral), but no equally specific targets in terms of
adaptation 

→ Vietnam’s climate strategies need to be rebalanced to include strong policies and

investments for adaptation as well as mitigation. The new strategies now emphasize
mitigation, but as a highly vulnerable country, Vietnam also needs to invest significantly
in building resilience given the serious impact of climate change on growth.

 All the new strategies and Vietnam’s NDC need to be updated to reflect recent
commitments, including those made at COP26. For example, the net-zero carbon
emission target has yet to be factored into any national or sectoral strategies.

 The new commitments and strategies, prepared by different ministries, set targets and
priorities in inconsistent ways, complicating the vision and potentially hindering
implementation.

For example, the NDC defines the mitigation target as a reduction in GHG emissions,
while the VGGS targets the carbon intensity of GDP. Carbon intensity is a measure of
how much CO2 we emit when we generate one dollar in our economy. A rapidly
decreasing carbon intensity is good news for our environment. But the question here
is how to reduce the amount of CO2 we emit but not slowing down the growth of GDP

→ Greater consistency is needed across key climate policy documents.

4. Recommendations
 We’d like to propose that Vietnam shift its development paradigm by incorporating two
critical pathways – resilient pathway and decarbonizing pathway

The resilience pathway

Protecting the country’s assets, infrastructure, and people

 Adaptation measures should focus on the country’s most vulnerable sectors and locations,
particularly agriculture, transport, trade and industry, coastal areas, and the Mekong
Delta.
 Complementary policy reforms in the fiscal and financial sectors will be needed to
stimulate the necessary investments from both the public and private sectors.
 Total financing needs are estimated at around $254 billion from 2022 to 2040, including
$219 billion for upgrading private assets and public infrastructure, plus $35 billion for
social programs.

The decarbonizing pathway

Bringing Vietnam to net-zero carbon emissions by 2050

 Substantial investments are required in energy, transport, agriculture, and industry.

 Sectoral investments should be supported by carbon pricing instruments like the emission
trading system and the carbon taxes. 
 Total financing needs for decarbonization are estimated at $114 billion over 2022-2040:
to support the energy transition (about $64 billion); for industry, transport, and
agriculture ($17 billion); and for supportive social programs ($33 billion).
QUESTIONS FOR CROSS-CHECK GROUP

Q1: How can you estimate the finance for both of the pathways you mentioned? 
Actually all these numbers are not our own estimation but are referred to from the
Vietnam Country Climate and Development report. However, as far as I know, these numbers
are based on the cost of the previous period and also from the cost that other countries had to
pay. This estimate was also obtained by considering the difference between the financing needs,
and existing adaptation related expenditures.

Q2: We all know that the covid-19 pandemic to some extent helped clean the
environment by reducing the number of transportation during lockdown. So, did the
pandemic also mitigate the impact of the climate change situation in Vietnam?  

Yes, although the Covid-19 "pandemic" did not affect climate change much, it only
temporarily reduced emissions from human activity and travel. These impacts do not cause the
earth's climate to change significantly, nor do they provide sustainable, long-term effects. But
the Covid pandemic erupted as a warning bell for people to take urgent and effective measures
to respond to climate change. Vietnam in particular and the globe in general are still in the
process of making efforts to restore and protect the green color of the Earth.

Group Presentation 5.
What is green growth? Why should Vietnam implement green growth? What are
the key points of the Green Growth strategy of Vietnam? Identify challenges for
implementing green growth in Vietnam and policy implications.
Outline:
1. Definition/ khung lý thuyết (Vinh)
1.1. Definitions of green growth
1.2. Các definitions liên quan green growth (research thêm, nếu có thì add vào. VD như
các loại chỉ số kinh tế liên quan,..)
BASIC CONCEPTS
Energy is the ability to do work
Scientists define energy as the ability to do work. Modern civilization is possible because people
have learned how to change energy from one form to another and then use it to do work. People
use energy to walk and bicycle, to move cars along roads and boats through water, to cook food
on stoves, to make ice in freezers, to light our homes and offices, to manufacture products, and to
send astronauts into space.
There are many different forms of energy, including:
 Heat
 Light
 Motion
 Electrical
 Chemical
 Gravitational
These forms of energy can be grouped into two general types of energy for doing work:
 Potential or stored energy
 Kinetic or working energy
Energy can be converted from one form to another. The stored chemical energy in coal or natural
gas and the kinetic energy of water flowing in rivers can be converted to electrical energy, which
in turn can be converted to light and heat.
Energy sources can be categorized as renewable or nonrenewable
There are many different sources of energy, which can be divided into two basic categories:
 Renewable energy sources: Renewable energy is energy from sources that are naturally
replenishing but flow-limited; renewable resources are virtually inexhaustible in duration
but limited in the amount of energy that is available per unit of time.
The major types of renewable energy sources are:
Biomass
o Wood and wood waste
o Municipal solid waste
o Landfill gas and biogas
o Biofuels
Hydropower
Geothermal
Wind
Solar
 Nonrenewable energy sources:  When these sources are used up, they cannot be replaced,
which is a major problem for humanity as we are currently dependent on them to supply
most of our energy needs 
Renewable and nonrenewable energy sources can be used as primary energy sources to produce
useful energy such as heat, or they can used to produce secondary energy sources such as
electricity and hydrogen.
2. Bối cảnh green growth ở VN (Quân)
2.1. Green growth ở VN đang phát triển ở mức độ thế nào? ( bối cảnh) (Vinh)
DESCRIBE
Context
According to Institute of Energy of Vietnam (IEV), Vietnam is set to face a surge in power
demand and consumption over the coming decade, which will have an impact on its energy
security. The Government of Vietnam expects power consumption to grow 10-12 percent
annually through 2030, one of the fastest power consumption growth rates in Asia.

According to IEV’s report in March 2021, installed power-generation capacity in Vietnam is

approximately 56 GW. The Vietnamese electricity system has a total installed power source
capacity of about 69GW (including hydroelectric plants imported from Laos and rooftop solar
power)

In the capacity structure of the national power source in 2020, coal-fired power accounts for
about 33 percent, hydroelectricity accounts for 29 percent, gas turbines and oil-fired thermal
power accounts for 14 percent, and solar power (including rooftop solar power) accounts for 23
percent, and others about 1 percent (wind power, biomass power, import of hydroelectricity
from Laos). Maximum load capacity of the power system in 2020 is about 38.7 GW, The crude
reserve ratio of the power system (excluding wind and solar power) is 34.3 percent.

Accordingly, electricity capacity is expected to increase by an annual average of 5.7 percent

between 2021 and 2030, totaling 129.5GW by 20
30. It also sets out USD 148 billion worth of investments to increase power generation and
develop the electricity network, of which 74 percent is to be directed to power sources and 26
percent to grid development for 2021 – 2030.

Main issues with power sources:

 Hydropower source: Currently there are about 17GW of large hydroelectricity over 30
MW and 3.4GW of small hydroelectricity. As of the end of 2019, major hydropower
dams have seen record low water levels, due to changing weather patterns in the
country, which is likely to threaten hydropower generation output for years to come.

 Coal thermal power: Vietnam is seeking to reduce coal-fired thermal power from 34
percent of its power source in 2020 to 27 percent in 2030. Despite increasing pressures
on its environmental impact, coal will remain the most practical option in the near term
to stimulate affordable electricity generation growth at the pace and scale needed by the
country. However, during this period, there will be no additional development of new
coal-fired thermal power. The Draft PDP8 suggested that only on-going coal-fired
thermal projects currently under construction and under investment promoted for
operation during the 2021-2025 period is included in the PDP8.

 Renewables: Currently limited and fluctuates due to an underdeveloped grid capacity

and a prevalence of baseload thermal sources.

 Nuclear Power: In November of 2016, the Vietnamese government postponed its

nuclear power program.

Independent Power Producers (IPPs)

Vietnam currently has 73 power plants (hydro, thermal, gas, renewables source), 48 of those
with capacity greater than 30MW. As EVN’s self-financing and other sources of debt financing
only meet about 66 percent of the total investment requirement, IPPs are expected to carry a
large portion of the investment in the power generation sector, including those to be developed
by foreign investors.

Transmission and Distribution

The Vietnamese government shall only maintain its monopoly of electricity transmission
grid(s) to ensure the national energy security. Vietnam’s existing energy infrastructure is
inadequate with weak grid capacity, which will obstruct the integration of new capacity,
particularly from renewable energy projects. According Vietnam’s National Power
Transmission Corporation (EVNNPT), an EVN subsidiary, which operates a total of 153
substations, 25,236km of transmission lines, and a total transformer capacity of 91,256 MVA.

In the PDP8, the MOIT proposds to continue building a 500kV power transmission system to
transmit electricity from major power source centers in the Central Highlands, South Central
Coast, and North Central region to major load centers of Vietnam. Ho Chi Minh City and Red
River Delta to strengthen the interconnected transmission grid to support the North-Central-
South power transmission.

Accordingly, in the period between 2021 – 2030, the country will need to need to build a total
of about 86 GVA capacity of 500kV station and nearly 13,000 km of DMZ. With this grid
development program, Vietnam’s power grid initially meets N-1 criterion for power supply for
loads and N-2 criterion for particularly important loads.

Some leading sub-sectors in Vietnamese energy sources are:

1. Liquified Natural Gas (LNG)-to-Power
Natural gas will also remain a key source of power generation for Vietnam at seven GW in
2020 to 13.5 GW in 2025 and 28-33 GW in 2030, bringing it from 15 percent in 2020 to 21-23
percent in 2030 with a more substantial growth as more LNG terminals enter into operation.

Vietnam has a favorable geographical location and convenient LNG transportation route
including many deep-water ports and existing gas infrastructure systems that can be used.
Developing the LNG sector is an inevitable trend for Vietnam to diversify fuel sources for
electricity generation and contributing to ensuring energy security for Vietnam.

The Vietnamese government highlighted the use of LNG as a source for power generation and
will look to create more favorable conditions for foreign investors to develop such projects
given depleting domestic gas resources and rising investor interests in LNG projects. By the
end of December 2020, there were about 26 GW of gas-fired power capacity projects in the
pre-FID phase in Vietnam.

2. Renewable Energy
The PDP8 prioritizes the development of solar and wind power sources in large scale.

The ratio of renewable energy (excluding hydropower) in the PDP8 has increased to almost 30
percent in 2030. The PDP8 expects that by 2030, onshore and near-shore wind power will
develop an additional capacity of 9 GW, offshore wind power will develop an additional
capacity of 2-3GW, solar power will develop an additional capacity of 7GW, biomass power
will be reduced by 0.5 GW, and small-scaled hydropower will be reduced by 1.8 GW.

2.1) Offshore WindPower (at an area with a seabed depth of over 20m):
The Vietnamese government has also proposed several policies in recent months to boost the
development of the wind energy sector. The current FiTs for offshore wind is highly attractive
at 9.8 US cent/kWh which were increased from the previous rate.   Because of difficulties
caused by he COVID-19 pandemic the FiT was extended from the original COD deadline in
November 2021 to the end of 2023.

In the PDP8, Binh Thuan, Bac Lieu and Ca Mau were highlighted as prioritized provinces for
offshore wind development. Up to December 2020, many investors registered to research and
invest in the South Central region with the total scale up to about 36 GW. Along Vietnam’s
coastline, high wind areas with good economic potential are only located in the South Central
region with total potential is about 80GW.

2.2) Solar power:

By the end of 2020, grid-connected solar power sources that had  been put into operation were
up to about 9,000 MW. The capacity scale of the additional planned solar power projects is
over 13GW, with the total registered construction scale, but not yet added, at about 50GW.

The total technical potential of solar power is very large at  up to 1646GW. The total scale
potential for development of large-scale solar power nationwide is about 386GW, mainly
concentrated in the South, the South Central region, and the Central Highlands.

2.3) Biomass and Co-generation (Sugar):

There are currently approximately 150MW biomass installations with potential capacity of
500MW in 2020, and its anticipated there will be 2,000MW by 2030. At present, most biomass
plants in Vietnam are CHP biomass projects which are used for self-generation in sugar mills.

The theoretical potential of biomass energy in Vietnam from the combustion of rice husk, rice
straw, corn cob, cassava stalk, bagasse, and sugar cane waste is estimated at more than 2,500
MW.

FDI Encouragement and Challenges

The Government of Vietnam’s policies are to diversify investment sources, encourage foreign
investors in power development with BOO and PPP.

For renewable power sources, the government has launched the Direct Power Purchase
Agreement (DPPA) pilot program, where renewable energy producers can sell and deliver
electricity directly to corporate customers. The size of the DPPA program is expected to range
from 400 to 1,000MW, and will be implemented nationwide from 2020 to 2022.

Opportunities
Opportunities are promising in offshore exploration and production technologies, equipment
and services; engineering steel fabrication; LNG supplies, LNG infrastructure; and
petrochemical technologies and equipment.

USTDA has funded nearly 80 activities valued at USD 20 million in Vietnam over the last 20
years. Vietnam represents the agency’s largest country portfolio in Southeast Asia. Through
feasibility studies, technical assistance and pilot projects, the USTDA Project Development
Program helps oversee project sponsors, identify technological solutions, and various sources
of financing for priority infrastructure projects

Vietnam is one of the Southeast Asian countries with rapid GDP growth, from 6.5-7% annually,
leading to an average increase in energy demand of 11% per year. So, we will discuss some
factors that influence the increase in energy demand both in the long term and in the short term.

FACTORS IN THE SHORT TERM

Climate change can alter our energy needs. As temperature increases, demand for electricity
rises. According to TSE (Toulouse School of Economics), it is estimated that a 1 degree Celsius
increase would raise residential electricity consumption by about 5% and firm electricity
consumption by 4%. Households tend to use more electricity for air conditioning in the summer
and for heating in the winter.

Another factor can be technology, especially electric vehicles. According to the Vietnam
Registry, the number of electric vehicles (EV) registered in Vietnam was slightly more than
1,000 units by the end of 2020. Moreover, by July 2021, VinFast installed 500 EV charging
stations and plans to have 2,000 charging stations set up nationwide with over 40,000 charging
ports by the end of 2022. Therefore, Vietnam needs a lot of energy such as renewable energy
(wind and solar power) to meet the demands of the electric cars industry.

FACTORS IN THE LONG TERM

The rapid increase in demand for energy is attributed to expanding industrial and construction
sectors. For example, electricity consumption has grown with an annual average of almost 16%,
more than a half of the total electricity demand (FPT 2019). The four largest industries, paper,
cement, steel, and fertilizer, together consumed 15% of the aggregate demand in 2019 (United
Nations Development Programme 2020).    

This strong growth may be, in part, due to low energy prices and substitution of primary fuels
for other inputs such as labor and capital. Both primary energy and electricity power for
industrial and civil sectors in Vietnam are relatively cheaper than are those in other countries in
the region (Australian Energy Council 2019)—the legacy of the exploitation of hydropower,
which has very low operating costs, as the main energy source and large implicit subsidies of
fossil fuel extraction and consumption. In recent years, the coal price has increased by 40%,
forcing customers to shift from fossil fuel to using more electricity (United Nations Development
Programme 2019).

The population growth

In general, our consumption of natural resources increases as the human population expands.
More humans consume more freshwater, more land, more clothing, etc. The more people on the
planet, the more food you need to feed those humans (more fishing, more farming, more
deforestation to make room for agriculture and raising livestock, and so forth). Variation in
population size corresponded to variation in energy consumption at double the rate. That is, for a
20% increase in population size, energy consumption increased by 43.6%; conversely, for a 20%
decrease in population size, demand for energy decreased by 44.6%.

PROPOSALS
Facing those issues, Vietnam also offers solutions to contribute to sustainable energy supply: In
2015, the government announced the first-ever national development strategy for renewable
energy, aiming for renewables to account for around 32% of total primary supply and
electricity generation by 2030. Now the real problem is how can we do that.

1. Hydropower

Vietnam's energy system still relies heavily on coal and hydroelectricity, therefore, pumped
storage hydropower can be considered the next future for Vietnam's energy transition. With the
completion of the Long Biên power plant in 2017, Vietnam is well positioned to meet its
ambitious target of producing 7,000MW of electricity from renewable energy sources by inc (in
fact, we did). This mega project is expected to reduce the country's reliance on fossil fuels and
reduce carbon emissions. In fact, a report by the World Wildlife Fund found that thanks to this
and other ongoing hydropower projects, Vietnam's current generation mix is already more
carbon-efficient than its neighbors. 

Furthermore, pumped storage hydropower enables the balancing of supply and demand without
transmission losses in case of peak load demand by storing the water at lower levels during off-
peak hours. 

However, in order to take full advantage of its hydro potential, Vietnam must increase
investment in grid infrastructure and develop markets for excess electricity. This will go a long
way toward achieving the government's goal to produce 30 percent of its energy from
renewable sources by 2030.
 2. Wind Power and Solar Power
In fact, Vietnam are developing renewable energy projects from wind and solar, but the
shortage of electricity in the Northern during the summer months still occurs, and on other
hand, fast increasing the amount of wind and solar power can lead to a renewable energy
imbalance. 

The solution to this problem is to develop a power transmission system to not only distribute
electricity to the areas in need but also to avoid the situation of "oversupply" when developing
the power network. 

In detail, the development of wind power and solar power is mostly done in the Central and
Southern regions - where the natural conditions are more favorable, and since the greater power
consumption is from the North, therefore, with a developed power transmission system, we can
move excess energy from the Central to the North.

3. Biomass
Biomass is another source of renewable energy in Vietnam. The country currently produces an
estimated 8 million tonnes of biomass each year, mostly from rice straw and sugarcane. 
As Vietnam's agricultural sector grows, the demand for biofuel will increase. 
Biofuels such as ethanol can be blended with gasoline to power vehicles or burned to generate
electricity using conventional combustion methods. 
This approach can ease the burden on traditional fuels and help to reduce emissions. The
government has also encouraged the use of biogas as an alternative energy source for domestic
use. 
However, as with other renewable energy sources, sustainable production of biomass is limited
by the government's ability to access sufficient land and resources. A carbon tax should also be
imposed to promote the consumption of clean energy sources and encourage the development
of a cleaner economy.

2.2. Vì sao phải phát triển green growth? (nguyên nhân)

   2.2.1. Trên thế giới, green growth đã được phát triển từ khi nào? Ở những nước nào đã
áp dụng green growth? Thành tựu áp dụng green growth ở những nước đó? Sau khi áp
dụng green growth, điều gì đã xảy ra ở đó (kinh tế, đời sống đi lên hay đi xuống?) (ưu
tiên số liệu, thống kê nhiều)
 Về các khu vực:
 Asia and the Pacific have pioneered the concept of green growth since 2005
 Green growth is also clearly stated in the ASEAN Community vision 2025:
“ASEAN recognises the importance of sustainable economic development as an
integral part of the region’s growth strategy… ASEAN would actively promote
green development by developing a sustainable growth agenda that promotes the
 use of clean energy and related technologies, including renewable energy
through green technology, as well as enhances sustainable consumption and
production, and including it in national development plans.”
 According to the UN, green growth emerged as a strategic project in 2005:
specifically, at the Fifth Ministerial Conference on Environment and
Development, at which “Fifty-two Governments and other stakeholders from Asia
and the Pacific agreed to move beyond the sustainable development rhetoric and
pursue a path of ‘green growth.’”15 The conference venue was Seoul, and this
was no coincidence. South Korea has been instrumental in promoting the concept,
through the Organization for Economic Cooperation and Development (OECD),
Association of Southeast Nations, and the UN. In 2008, Korea’s Lee
administration adopted green growth as its “new development vision,” and a year
later the National Strategy for Green Growth and Five-Year Plan for Green
Growth were announced.
Cụ thể:
 Korea:
Activities:
 In 2008 Korea announced ‘Low Carbon, Green Growth’ as its vision for
mid-to long-term development (2009-2050) together with a voluntary
target of 30% reduction of GreenHouse Gas emissions from the
business as usual scenario by 2020. To implement this vision, it launched
a National Green Growth Strategy in 2009 along with the countries’
Five Year Plan (FYP) for 2009-2013. One of the key instruments to
achieve the countries’ new vision was the establishment of a national
Emission Trading Scheme (ETS), scheduled to start from January 2015.
 Presidential Committee established: In order to facilitate the realization
of the “Green-Growth” vision, the Presidential Committee on Green
Growth was established in February 2009. 
 Implementation of the Target Management System (TMS): As a
precursor to the ETS, the TMS was introduced in 2011. The benchmark
for determining large emitters was 20,000 tCO2 -eq per year in 2012 and
was reduced to 15,000tCO2 -eq per year from Jan. 2014. Companies with
multiple installations must also participate if their total emission exceeds
87.5tCO2 -eq per year in 2012, which was also brought down to 50 tCO2 -
eq per year from Jan. 2014. As of June 2013, the TMS emission caps were
set for 642 large emitters and individual targets were set on the basis of an
average of the previous three years’ emissions.
 Establishing the Emission Trading System (ETS) legal framework: The
formal process of setting up the ETS Act began with the Presidential
Commission on Green Growth (PCGG) proposing the draft law in 2010. A
revised draft was then submitted to the National Assembly in April 2011.
The Special Committee on Climate gave its approval in February 2012
followed by an approval from the Legislation and Judiciary Committee of
National Assembly in May 2012
 Developing a Master Plan: To implement the ETS from January 2015 as
scheduled, the ETS Master Plan was published in January 2014 by the
 Ministry of Strategy and Finance (MOSF). The Master Plan, a legal basis
for the operation of ETS market, is a 10-year plan (2015–2024), which
will be updated every five years.
 Designing penalties: In case of failure to stay within the target, a penalty
is imposed which can go up to 3 times the average price per tCO2 -eq with
a ceiling of KRW 100 thousand per tCO2 -eq. 
 Developing incentives and safeguards: In line with the National Green
Growth Strategies’s focus on development and promotion of green
technologies financial incentives, including tax credits are being designed
for deploying green technologies in order to meet the emission caps.
Further, to protect businesses vulnerable to competitive advantage support
schemes are being planned. the government may also increase the supply
of allowances if prices rise too high through early auction(s) for up to
25% of reserve permits in order to contain prices. An allowance reserve
has been provided for to contain prices as well as to distribute to new
entrants. Further, the Ministry of Environment also considers giving
financial support for the vulnerable sectors
Impacts:
 Changes in perceptions and attitudes: The general public’s views on the
climate change issue have shifted from indifferent to sensitive. This is
mostly attributed to the government and NGOs ongoing efforts. 
 Government and private sector increasingly recognize the importance
of GHG reduction technologies: Government R&D investment in green
technologies increased by 40% between 2009 and 2012. Year 2012 alone
recorded investment of more than USD 2.6 billion, 75% of which was
invested on twenty-seven core green technologies. Total private sector
investment in such technologies increased by 75% during 2008–2010.
Overall, since the announcement of the green growth strategy more than
USD 33 billion of private sector investment has been made in new
technology sectors from 2008–2013. 
 Local authority action: The green image of cities and urban communities
becomes a crucial determining factor of their competitiveness and
attractiveness. A number of local level authorities initiated GHG reduction
actions in various sectors, such as green buildings, green transport, eco-
city planning, etc. These have been undertaken through coordinated efforts
with the national government and the private sector.
 Creating jobs: According to the Five Year Plan, it was estimated between
1.56 to 1.81 million jobs would be created from the implementation of
green growth strategy. The Master Plan estimates that the TMS and ETS
will create up to  9,600 jobs. 
( link used:
https://api.knack.com/v1/applications/5b23f04fd240aa37e01fa362/download/
asset/5c9366987ad20009c61bec18/20092050greengrowthets_korea_en.pdf )
 Mexico:
In Mexico, policy makers have seen the damage that climate change can bring in
the form of prolonged droughts and deadly storms - in 2010, the damages ran to
6% of GDP- so the country is working on a low-emissions strategy and a
national adaptation strategy. Improving energy efficiency, increasing the
renewable supply and low-carbon transport, and managing waste and forests are
among the country’s priorities for greener growth. 
Cụ thể hơn: 
Mexico, like Chile, faces high levels of air pollution in its urban areas. ( air
pollution indicator, according to which PM10 concentrations are well above the
average OECD level- table below)

                                            Source: OECD Statistics (2013).

 In 1990, the first Pro Aire project, among many which followed, was launched in
order to find a way to reduce traffic and therewith pollution. There are a number
of policies which aim to encourage sustainable resource use, such as the National
Ecological Land Use Plan from 2012, the Federal umbrella program that
promotes sustainable forestry from 2004, National Program of Payments for
Ecosystem Services from 2003 and the National Biodiversity Strategy from 2000.
Those policies are regulatory instruments to improve the efficiency of the
resource use and protect environmental areas

 Chỉ báo green growth(world bank) (cái này chưa biết đc nên xử lý như nào)

   2.2.2. Quay trở lại VN, VN có những đặc tính gì phù hợp với green growth k (nếu có->
là lí do để phát triển green growth vì thuận tiện); Nếu phát triển green growth, chúng ta sẽ
được gì? VN có yêu cầu gì để cần phải phát triển green growth ngay lập tức ko? (ưu tiên
số liệu, graph nhiều)
 Why VietNam is ready now?
 As the trade-off between business efficiency and “going green” is
diminishing, Việt Nam’s economy and enterprises are accelerating towards green
and sustainable growth in line with mainstream global trends.
 The world is witnessing mega-trends in geo-politics, globalization and
liberalization, climate change and innovation, with different scenarios.
Development issues in recent years are perceived as not completely new but
deeper with qualitative changes, including shifts from economic growth to
sustainable and inclusive development, from “brown economy” to “green
 economy”, from “linear economy” to “circular economy” and from “real
economy” to “digital economy”.
 From the 1900s, Việt Nam implemented strategies and policies on poverty
reduction, human development and sustainable development. In 2004, it issued
the Strategic Orientation on Sustainable Development (Việt Nam's Agenda
21). Since then, various strategies, plans and regulations were issued and updated
with a view to balance the economic interest and the negative externality on the
environment.
 In 2020, it passed the Law on Environmental Protection in which for the first
time, the definition of circular economy (CE) is stated and various policies and
regulations on CE have been issued or drafted since 2021. And in early June this
year, Deputy Prime Minister Lê Minh Khái signed Decision No. 687/QĐ-TTg
approving a scheme developing the circular economy which is expected to
contribute to cementing the goal of reducing greenhouse gas emissions intensity
within GDP by at least 15 per cent by 2030 compared to 2014, towards the goal of
net zero emissions by 2050.
 In agriculture, farmers are shifting from traditional farming model VAC (garden-
pond-barn) to new models to reduce the adverse impact on the environment and
make use of raw materials more efficiently such as VAC+biogas, VAC+forest
and VAC+raising shrimp or planting rice.
 In industrial production, both authorities and provinces have pledged to promote
eco-friendly industrial parks (IPs), especially the Nam Cầu Kiền eco-IP in Hải
Phòng City built in 2008 according to Japanese standards, which is a private
initiative in which production communities have a symbiotic relationship with
efficiency in environmental and natural resources management.
 Businesses are also investing more heavily in green business models such as
“green circle” in dairy farms of Vinamilk or TH Milk. More and more businesses
are also developing according to the criteria of the Corporate Sustainable
Development Index (CSI) launched by the Vietnam Chamber of Commerce and
Industry (VCCI) and the Vietnam Business Council for Sustainable Development
(VBCSD) since 2016.
 From the capital side, many financial institutions are taking bold steps to finance
and facilitate green and eco-friendly loan packages as an essential part of their
sustainable investment and net-zero pledges.
 According to the State Bank of Việt Nam (SBV), more than 31 financial
institutions are involved in green credit, with total credit of VNĐ290 trillion
(US$12.5 billion) in 2020, mainly in fields of green agriculture and renewable
energy.

2.3. Thách thức phát triển green growth (khó khăn)

Việt Nam has paid the price for growth (resource degradation and
environmental pollution, especially in big cities). The country is also one of
the most affected by climate change. Therefore, the transition to green
growth is a challenging process.
2.3.1. Về hành lang pháp lý, chính sách
 Thirdly, at present, there are still conflicts and overlapping goals among
strategies: Sustainable development strategy; National strategy on responding
climate change; Green growth strategy, etc.,
 Việt Nam’s action plan of the green growth strategy 2011-20 recorded only three
out of 12 goals achieved with low spillover impact.
2.3.2. Về con người
 The reasons include weak awareness of green development, institutional reform,
education and media campaigns.

 Specifically , the awareness of some ministries, agencies and local

authorities on the Green Growth Strategy are unclear. By the end of 2018,
only 7 ministries and 34/63 provinces and cities issued plans to implement
the Green Growth Strategy. 
 As a result, although there are integrations of the Green Growth Strategy
into local socioeconomic development plans, many localities in Vietnam
are facing the challenges because of the lack of specific and feasible
solutions for different situations.

-> To solve this problem: In a world which underscores connection and

technological leaps, learning how to strengthen competitiveness through
connecting markets, partners in global value chains and global standards is
necessary. Learning to be continuously creative and successfully
transform digitally (products, skills, business model, management) is key
to success.

 Labor quality: The green growth conversion progress demands a high

requirement on labor restructuring. However, for the time being, Viet Nam labor’s
quality still needs more time to catch up on the world advancement of science,
technology and green labor.
2.3.3. Về cơ sở vật chất
 Our science and technology development in Viet Nam is comparatively low,
while green growth requires an advanced approach to every aspect of the fourth
industrial revolution.

2.3.4. Về nguồn vốn

 Implementing green growth requires a tremendous investment cost while
limitations in Viet Nam’s government budget might be a hard-to-solve problem to
this progress. Capital raising from foreign sectors is still inefficient because of the
lack in policies, mechanism and approaching methods to green financial sources.
Additionally, Viet Nam now suffers from a decline in the ODA capital and can no
longer receive preferential loans since the country has become a middle-income
country. Viet Nam is also recovering from the damaging impacts that the Covid
pandemic have left on the country’s economy. 
 2.3.5. Về tài nguyên
The resources for implementing the Green Growth Strategy are currently unclear,
especially in the context of economic recession and the reductions of public
investment.

2.3.6. Về tác nhân bên ngoài

- Challenges that VietNam has to confront in the progress of implementing green
growth come from outer factors, especially economic shocks and geopolitical
instability and the bad influence from the spread of the covid pandemic. These
can lead to widespread crisis on energy and agriculture security 

-> Therefore, In a world with many uncertainties and risks, enterprises need to
learn how to manage risks and shocks from geopolitical tensions, supply of input
materials, financial-monetary instability and natural disasters.

3. Chiến lược phát triển green growth (Nguyên)

Intro:
 For the Target:  Accomplish green growth, thereby contributing to the restructuring of the
economy in conjunction with renewing the growth model, in order to achieve economic
prosperity, environmental sustainability and social equality; strive towards a green and
carbon neutral economy; contribute to the realization of the goal to reduce global
warming. 
 Strategy orientation:
 Raise the performance and the efficiency in energy usage; reduce the level of energy
consumption in manufacturing, transportation, commercial and industrial activities
 Develop modern, clean, organic and sustainable agriculture
 raise the quality, the added value and the competitiveness of agricultural
production through adjustments and shifts in the composition of livestock, crops,
forestry and aquaculture production
 accelerate the progress of projects involving afforestation, reforestation and the
sustainable development of forestry activities
 Step by step put limits on economic sectors that generate large scale waste and cause
environmental pollution/degradation; facilitate the conditions for the development of new
green manufacturing industries
 Develop sustainable traffic, energy and irrigation infrastructure through increased
investments into upgrading traffic systems and networks on the basis of saving energy,
 Step up urbanization with an orientation towards sustainable and smart urban areas that
are capable of withstanding climate change, can ensure economic - ecological efficiency
and have the favorable conditions for the development of public transport
 Build new rural areas where the lifestyle is in harmony with the environment and nature,
the standards of living are good while the green, clean, beautiful and civil landscape and
the environment are protected and developed
 Strengthen waste management and the management of air quality through researching
and developing integrated solid waste management models as well as waste treatment
technologies with an orientation towards transforming waste into resources and materials
for production
 Promote green consumption and purchases through energy labeling, eco-labelling, green
labeling … programs; step up green public procurement and continue to effectively
utilize economic tools to adjust consumption behavior
 Strengthen the management of water resources, land resources and biodiversity through
promoting the efficient usage of land resources and the protection of the land
environment

SOLUTION
1. Build and refine institutions and policies
 Promote the application of green economic tools with regards to production and
consumption activities; regarding the system of standards and national criteria for
green classification, consistency and transparency must be ensured, they must be
regularly updated for different programs, projects, services, technologies and
industries.
 Raise the effectiveness and the efficiency of state management in the monitoring
and evaluation of the Strategy’s implementation and the economy’s level of
greening.
2. Communicate, educate and raise awareness
 Continue to propagate, educate and raise the awareness of the whole society about
the role and significance of green growth.
 Attach importance to education on soft skills, strengthen coordination between
schools, families and society so that a green-oriented consciousness and a green,
civil, contributive and innovative lifestyle could take shape.
 Raise the energy labels, ecology labels and green labels identification abilities
with regards to goods and products; further popularize information on low-
emissions and environmentally friendly products and services.
3. Develop green human resources and employment
 Attach importance to organizing training activities and fostering
management/operational knowledge in the green economy and the green
manufacturing industries for public administration cadres and businesses, with
special attention paid to cadres in leadership/management positions and cadres
who perform the policy planning work
 Prioritize investments into the infrastructure of schools and vocational training
facilities in accordance with green standards and criteria in order to serve the
tasks of training and teaching.
4. Science, technology and innovation
 Encourage the tasks of researching and developing models to apply science,
technology and innovations to serve the purpose of achieving green growth.
 Step up the comprehensive digital transformation in different industries and
fields, with an orientation towards the goal of Viet Nam becoming a digital
country.
5. International integration and cooperation 
 Strengthen and raise the quality of international economic integration; cooperate
and bring into play international support in order to turn VietNam into one of the
role models with regards to green growth; effectively fulfill international
commitments related to sustainable development and climate change.
  Proactively cooperate in research, education and training, thereby creating
favorable conditions for enterprises and research institutions in terms of access to
advanced technologies; carry out technological transfer and develop human
resources for green economic sectors.
 Actively organize and participate in activities to share/study experiences related to
green growth and raise the capabilities to achieve green growth; proactively
coordinate and join hands with the international community to tackle global and
regional issues, as well as challenges in the process of achieving green growth.

6. Equality in green transformation

Ensure that different social groups, especially subjects affected during the process of
restructuring the economy in conjunction with renewing the growth model and vulnerable groups
(women, children, ethnic minorities, the poor, people with disabilities) have equal access to
opportunities, information, technical infrastructure and basic social services, in a manner that
suits the new fields and jobs in the process of transforming into a green economy.

Group Presentation 6.
Present some examples of “No waste” cities around the world. What is
circular economy? Present the current situation and potential of
implementing circular economy in Vietnam.

1. What is no waste : 
No waste / zero waste is a conservation of all resources by means of responsible
production, consumption, reuse and  recovery of product packaging and materials without
burning and with no discharges to land, water or air that threaten the environment or
human health. 

 Zero waste hierarchy 

Zero waste europe created a new hierarchy to change the mindset from waste
management to resources is preserved in the economy for the new generations
 
 1
Refuse/Rethink/Redesign
Refuse what we don’t need and change the way we produce and consume by redesigning

business models, goods and packaging in order to reduce resource-use and waste

2
Reduce and reuse
Minimise the quantity, toxicity and ecological footprint and any operation by which products or

components that are not waste are used again for the same purpose for which they were

conceived
 3
Preparation for reuse
Checking, cleaning or repairing operations, by which products or components of products that

have become waste are prepared so that they can be re-used without any other pre-processing

4
Recycling/composting/anaerobic digestion
High quality material recovery from separately collected waste streams

5
Material and chemical recovery
Technologies to recover materials from mixed waste into new valuable materials in an

environmental sound way

6
Residuals management
What cannot be recovered from mixed waste is biologically stabilised prior to landfilling

7
Unacceptable
Options that don’t allow for material recovery, have high environmental impact and create lock

in effects that threaten the transition to Zero Waste: waste to energy incineration, co-incineration,

plastic to fuel, landfilling of non-stabilised waste, gasification, pyrolysis, illegal dumping, open

burning and littering

The Zero Waste Cities approach is a continuous effort to phase out waste – not by burning or
landfilling it – but instead by creating and implementing systems that do not generate waste in
the first place
 
Example 
 San Francisco 

The pioneer among zero waste cities in America, San Francisco has spent 19 years
incrementally moving toward becoming a 100% trash-free zone. The city has made great strides
toward its goal, successfully diverting 80% of its waste away from the landfill in 2012.
Kamikatsu, Japan 

Source: nippon.com

Perhaps one of the most well-known zero-waste communities outside of the United States, the
village of Kamikatsu made a zero-waste declaration back in 2003 and never looked back. 
Behind the US, Japan is the second-largest producer of plastic in the world and incinerates 78%
of solid waste (including some recyclables). However, this remote village has managed to buck
the trend and recycle, compost, or reuse more than 80% of its waste through a truly
comprehensive zero-waste program.

Taiwan
 Source: ketagalanmedia.com

The Taiwanese waste plan has achieved what sounds miraculous for an entire country—a 99%
landfill diversion rate. Digging a little deeper, the reality is that around 40% of that waste is
currently incinerated. 

Solution

=> Conclusion: The country is now faced with the increase of many types of waste, especially
domestic waste while there is a lack of effective waste management. Therefore, even though
Vietnam has not had any specific term for the circular economy, it is necessary to circle the
natural resources has been emphasized in many momentous legislation documents and in many
actual recycling models. In fact, the volume of recycled materials in Vietnam is still small
compared to the input of the economy, and still far from its target of reducing waste.
Consequently, in the near future, Vietnam prioritizes the 3R policy to build a proper
infrastructure before applying the circular economy concept for the sustainable development of
the country.

The circular economy development scheme is approved in Vietnam, which brings a lot of
benefits to the country.

- reduce 15% greenhouse gas emissions per GDP by 2030

- achieve net-zero emissions by 2050
 by 2050, reuse, recycle, and treat 85 percent of plastic waste generated
 by 2030, collect and treat 50% of the urban solid waste in line with circular
- The scheme is set to 
 increase community awareness about the circular economy
 promote its development among businesses and residents.

- Missions 
 create specific plans for the circular economy and apply in cities and provinces around
the country
 boost cooperation with international partners and donors through specific projects,
technology, and services → figure out opportunities to increase access to knowledge,
expertise, and resources for circular economy development. 
 strengthen public-private dialogues → promote social responsibility 
 complete legal frameworks and policies for the circular economy with the required
human resources.

=> Conclusion: The country is now faced with the increase of many types of waste, 
especially domestic waste while there is a lack of effective waste management.
 Therefore, even though Vietnam has not had any specific term for the circular economy,
it is necessary to circle the natural resources has been emphasized in many momentous
legislation documents and in many actual recycling models.
 In fact, the volume of recycled materials in Vietnam is still small compared to the input
of the economy, and still far from its target of reducing waste. 
Consequently, in the near future, Vietnam prioritizes the 3R policy to build a proper
infrastructure before applying the circular economy concept for the sustainable development of
the country.

Vietnam is shifting from a linear economy toward a circular economy, targeting sustainable
economic development for a more competitive economy. To realize that goal, the government
recently issued Decision 687 on circular economy development which was followed earlier by
the revised Law on Environmental Protection (LEP). Vietnam Briefing highlights key updates
while looking at what these changes would mean for businesses and investors.

Circular economy in policy, law and practice in Vietnam

2.1. In development strategies, programs and projects

A number of Strategies and Action Plans of a number of sectors and fields have concretized the
orientation of transition to the TH economy as the orientation of Vietnam's National Energy
Development Strategy; National strategy on livestock, National strategy on green growth 2011-
2030.
2.2. In the law of Vietnam

The Law on Environmental Protection 2020 with many new regulations, in line with
international experience, is expected to change the behavior of actors in society

Vietnam is also one of the first countries in ASEAN to include the regulation of the eco-
economy in the Law on Environmental Protection 2020. 

In addition, compare policies in strategic directions and legal regulations on promoting the
application of the market economy of Vietnam with other countries in the world . Looking at the
table on the screen ,it shows that Vietnam has built a fairly adequate legal and policy foundation
to promote the transition process. change to a knowledge-based economy according to different
sectors, fields and regions of the economy 

CURRENT SITUATION OF CIRCULAR ECONOMY IN VN:

Some circular economy platforms have been applied in Vietnam economy and have brought
some effective cases. Anyway, the Vietnam circular economy seems unpopular and restrictly
applied on some fields. In particular, many circular economic models are not self-contained
models, not full-scale designed from the planning, investment, and construction stages.

Manifestations of approaching circular economy in Vietnam:

AGRICULTURE:
- Model of collecting compost to water crops and vegetables in the suburbs of Hanoi (typically
Co Nhue village, Tu Liem district, Hanoi in the past, in the 50s-70s of the twentieth century
when there was no toilet for use). 
-  The model of garden - pond - barn (VAC), garden - forest - pond - barn (VRAC) from the 70s-
80s of the twentieth century, the ecological economic model from the 90s-2000s.
- Currently, the farming model of farm households that recover manure and biogas brings
economic benefits to increase income along with selling output products, typical of some
households in Moc Chau cow raising model.

INDUSTRY:
- The appearance of traditional craft villages in Vietnam using scraps, by-products and wastes
from industrial production: Producing recycled steel - Da Hoi (Bac Ninh), producing recycled
paper Duong O (Bac Ninh), manufacturing plastic products, recycled nylon Minh Khai (Hung
Yen), recycled glass... appeared early and still exist and develop.
-Cleaner production has been implemented in enterprises and brings certain effects to enterprises
with old technology that wastes resources, energy and discharges directly into the environment.. 
- The recent birth of an eco-industrial park in Hai Phong, Ninh Binh and some other localities
from the direction of the Government has been evaluated by UNIDO as a model close to the
circular economy that brings typical economic efficiency in Vietnam in industrial production.
- Some enterprises have shown signs of reuse and recycling of waste such as the former Thang
Long Pharmaceutical Company (selling pre-processed tobacco leaves to Vinh Phuc flower
farmers as fertilizer, reselling the discarded part). cardboard packaging for paper recycling), …
and many companies other than not to waste waste can be reused, recycling brings economic
efficiency.

service industry, tourism:

-The service of collecting scrap, waste with input value for reuse and recycling such as iron, steel
and other metals has been available since very early in Hanoi - La Thanh dyke, collection of
tangled hair, chicken feathers - Trieu Khuc village, Hanoi.
- Waste treatment services according to new technologies such as vacuum technology to create
input materials of private enterprises - Quang Binh, burning technology to generate electricity -
Ho Chi Minh City, recycling technology Methane and Power Generation - Hanoi.
- In the commercial sector, appearing to reduce plastic waste, plastic bags replace products that
are easy to decompose and use many times.
-In the field of tourism, hotels, and restaurants, the collection of excess feed waste for resale to
livestock production facilities or organic fertilizer processing can be viewed as an economic
approach.

In general, there are some approaches to the circular economy in VN but we only step to stage
of recycling the waste to make it the input of other economic activities. 

Potential

We have already started the journey towards a more circular economy. One can quantify the
circularity of the Vietnam economy from 3 angles: 

 Renewable resources
The first way of quantifying the circularity of the Vietnam economy as it now stands is to
analyse the extent to which renewable resources are being installed, and to establish how
resources are consumed in the VietNam and the extent to which feedback loops such as recycling
are featured in the system. Insight can also be gained from innovation indicators.The Vietnam
does score well in the field of renewable energy (figure 9). 

 Secondly, the degree of recycling.

In general, in the period from 1996 to 2019, Vietnam's recycling industry had a development, in
which there were years the growth rate of the industry was quite high (approximately 40% in
1996, more than 40% in 2008). 30%). However, in recent years, the growth rate of this economic
sector has slowed down (Figure 1). In some years, the growth rate was just over 1% of the total
production value of industry (in 2010, this index was only 0.278%).

 effect with environment 

In Vietnam, the problem of waste treatment in Vietnam is gradually becoming the focus of
attention, especially when the regulations on sanctioning waste separation at source of
households come into effect
Insee Ecocycle Vietnam, a waste management service provider, currently handles about 250
businesses, but most of them are FDI. Since 2007, this unit has completely and thoroughly
treated more than 1,600,000 tons of hazardous and non-hazardous waste, equivalent to reducing
more than 1,500,000 tons of greenhouse gas emissions into the environment.
Opportunities and challenges for circular economy development in Vietnam:

Opportunities:
-Firstly, this is a common global trend that has been successfully proven in many countries
around the world such as Sweden, Denmark, Finland, Canada, Japan, China, Singapore...
Therefore, Vietnam will learn a lot from the experiences of previous countries and be in line with
the general trend of the world.

- Secondly, we are in the process of perfecting the socialist-oriented market economy institution,
the model transformation from "linear economy" to "circular economy" is designed from the
Party's policy to develop the economy. Fast and sustainable economy is a great opportunity.
Notably, recently, the revised Law on Environmental Protection 2020 was approved by the XIV
National Assembly at its 10th session on November 17, 2020, and the content of developing the
economic model has been stipulated in the law.

-Third, encouraging and creating a mechanism for the private economy to develop in the context
of a competitive market will have many opportunities for private investment in the
implementation of the development of the knowledge economy in the coming time.

-Fourthly, we have been moving towards the 4.0 revolution, implementing the development of a
knowledge-based economy associated with high technology, moving from the real world to the
digital world will be a great opportunity to improve development efficiency compared to the
traditional development method. 

-Fifth, the pressure of shortage of resources, environmental pollution, large amount of waste,
especially plastic waste and plastic bags, are paid great attention by the Party and State. In
addition, we are implementing the SDGs and responding to climate change, the circular economy
development is the way of development to help realize many of the goals and targets required by
the SDGs, the development of the circular economy will be an advantage for reduce greenhouse
gas substances, because they are recovered almost completely, do not emit into the environment.

-Sixth, the development of a circular economy will receive high consensus and support from
society, because this way of development will solve resource scarcity, protect the environment,
respond to climate change and bring high economic efficiency.

CHALLENGES:

At the government level, the OECD (2019) identified 13 major barriers for countries to transition
to a knowledge-based economy (Figure 3). In which, cultural, regulatory, financial and vision
barriers are the outstanding issues to make the transition to a knowledge-based economy that
governments face, including culture, institutions, and financial resources. key, comprehensive
vision, well-informed, regulatory uncertainty, financial risk, perception, scale, human resources,
private sector involvement, political readiness and technology solutions [12]
-Firstly, the correct awareness of the nature of the circular economy is carried out from design to
practical implementation, in industries and fields, for each enterprise, people and all levels of
management and leadership to Creating a common consensus is a big challenge.

-Second, the circular economy is associated with technological innovation and model design in
the context that we are a developing country, most of the technology is outdated, and the
production scale is small, which is a big challenge that needs to be overcome.

-Third, we do not have an adequate legal corridor for circular economy development, in fact, it
has just been included in the Law on Environmental Protection 2020, which needs guidance from
the Government, this challenge needs to be overcome, otherwise the implementation .At present,
circular economy development is only spontaneous and subject to market dynamics, enterprises
will face many difficulties when implementing the circular economy model.

-Fourth, we do not have a set of criteria to identify, evaluate, summarize and give an accurate
classification of the development level of the circular economy, which is a big challenge to know
the current economic development. 

-Fifth, the circular economy is the culmination of the zero-emissions approach, which requires a
truly shared coordination with economic benefits, so the use of economic incentives, market to
connect stakeholders to implement a circular economy is a big challenge.

-Sixth, to implement a circular economy, the last stage is to reuse and recycle waste after
production and consumption. Currently, these experts have not been trained and have no
specialized training in circular economy.
-Seventh, the circular economy requires the classification and cleaning of waste before being
reused or recycled, which is a big challenge for the practical operation of the Vietnamese
economy and the awareness of segregation of waste at the source of the people. The consensus of
each citizen on waste segregation at source in Vietnam is a big challenge.

Một là, khung chính sách về phát triển mô hình kinh tế tuần hoàn chưa được hoàn thiện. Hiện
nay, Việt Nam còn thiếu các cơ chế chính sách thúc đẩy kinh tế tuần hoàn phát triển như: Quy
định trách nhiệm của DN về thu hồi, phục hồi tài nguyên từ các sản phẩm đã qua sử dụng; các
công cụ, chính sách kinh tế như thuế tài nguyên, phí bảo vệ môi trường…

Hai là, nhận thức về kinh tế tuần hoàn và sự cần thiết chuyển đổi sang phát triển mô hình kinh tế
tuần hoàn còn hạn chế. Nhận thức đúng về kinh tế tuần hoàn cần được thực hiện từ việc thiết kế
tới triển khai đối với từng ngành, từng lĩnh vực và cần được đồng thuận, thống nhất từ lãnh đạo,
các cấp quản lý tới từng DN và người dân.

Ba là, nguồn lực cho việc thực hiện chuyển đối sang phát triển kinh tế tuần hoàn còn yếu. Kinh
tế tuần hoàn phải gắn với đổi mới khoa học, tiếp cận công nghệ  tiên tiến. Bên cạnh đó, để phát
triển kinh tế tuần hoàn đòi hỏi phải có đội ngũ chuyên gia giỏi, để giải quyết tốt các vấn đề, từ
khâu đầu đến khâu cuối của cả quá trình.

Bốn là, Việt Nam còn thiếu các DN đủ năng lực về công nghệ về tái chế, tái sử dụng các sản
phẩm đã qua sử dụng; khó thay đổi ngay thói quen sản xuất và tiêu dùng của toàn xã hội hiện
nay đối với nhiều sản phẩm dễ sử dụng như túi nilon, sản phẩm nhựa dùng một lần sang chỉ sử
dụng những vật liệu, sản phẩm có thể tái chế, tái sử dụng hoàn toàn; các DN Việt Nam có quy
mô vừa và nhỏ khó khăn trong việc đầu tư đổi mới công nghệ.

Solution

The scheme's firm measures are set to increase community awareness about the circular
economy and promote its development among businesses and residents.

The building of specific circular economy plans and integrating them into strategies in cities and
provinces around the country is essential.

The other task is to boost cooperation with international partners and donors to seek
opportunities to increase access to knowledge, expertise, and resources for circular economy
development through specific projects, technology, and services.

The country will also intensify public-private dialogues about the circular economy to promote
corporate social responsibility and help businesses solve their problems in this area.
Legal frameworks and policies to facilitate development will be completed for prioritised sectors
so as to implement a pilot programme with the required human resources.

=> Conclusion: 
The circular economy is and will continue to be an awkward term. It is not a new model. It
mainly concerns structuring the economy in a sustainable way with the priority being to use
materials efficiently and reduce and ultimately eliminate waste flows. The materials cycle is the
central issue.
Along with the development, the country is now faced with the increase of waste in many types,
especially the domestic waste, while the infrastructure for waste management is still inadequate.
Vietnam has not any specific term on circular economy; nevertheless, the necessary of circle the
natural resources has been emphasized in many momentous legislation documents and also
found in many actual sub-models for recycle and reuse of waste. In fact, the volume of recycled
materials in Vietnam is still small comparing to the input of the economy, and still far from its
target on reducing the landfill rate of collected waste. Because of that, in the near future,
Vietnam is still focused on 3R policy to build a proper infras- tructure before applying the
circular economy concept and frame for the sustainable development of the country.

Group Presentation 7.
Present overview of labor force status in Vietnam? Giving some trends of
labor force geography of Vietnam in the economic integration process and
policy implication?

Group Presentation 8.
What is the role of Foreign Direct Investment (FDI) for Vietnamese economy?
Status of FDI in Vietnam? What is the downside of FDI? What are solutions
for FDI management?

FDI overview
Foreign direct investment (FDI) is an ownership stake in a foreign company or project
made by an investor, company, or government from another country. In general, FDI plays the
role as the key factor of international economic integration because it connects the economies
with stable and durable bonds. FDI often takes the form of capital, technologies, equipment,... It
is important to note that FDI creates great influence on the foreign business decisions, and may
even take full control of the receiver.
FDI is sorted into 3 different types: horizontal, vertical and conglomerate. In the
horizontal type, films invest in another country to establish the same business as the one they
currently operate. The vertical type, the films open a complementary business in other countries.
And the last type, conglomerate, the films invest in businesses that are totally unrelated to their
current operation, this type often takes the form of joint venture, since the investors do not
possess enough experience in the field.
 There is a concept that shares some similarities with FDI, that is FPI. FPI stands for
Foreign Portfolio Investment, is financial asset held by foreign investors. FPI often takes the
form of stocks and bonds of the recipient companies. Compared to FPI, FDI is a larger
commitment, and thus the investors acquire the outright acquisition of the recipient. 
FDI creates the relationship in which both the investor and recipient gain benefits, it
helps the economic development in both the investing countries and receiving countries.
Developing countries, Vietnam for example, receive FDI to finance the construction of their
infrastructure and decrease the unemployment rate by creating more jobs for local workers. On
the other hand, FDI investors gain benefit from expanding their business in the international
market. However, as the FDI resources flow under policies and laws of different nations, that
may lead to some political conflicts.

The role of FDI for Vietnam economy

Ever since the beginning of the innovation in 1986, attracting FDI policies have been
practiced in Viet Nam in order to develop the national economy and those policies have yielded
notable results in reality. In the first half of the year 2022, FDI has contributed about one fifth of
VietNam GDP and 72% total exporting value. FDI serve as complement for the shortage of
capital in Viet Nam economy. FDI has been improving many fields of industry in Viet Nam, oil
or communication for example. FDI advances the technology of Viet Nam, as the foreign
technology that comes along with the FDI inflow is often more developed than ours; and by
applying the foreign technologies and learning from them, we can come closer to the current
global technological standard, saving time and resources for researching and developing. Not
only technology, FDI can also help improve our administration system by learning from the
management models of the foreign investors. FDI has been creating occupation opportunities for
local workers, about 7% of Viet Nam labor force are directly or indirectly related to FDI areas.
FDI has also contributed to the international economic integration of Viet Nam.

Status of FDI in Vietnam

Viet Nam is an attractive destination for foreign direct investment. That attractiveness
results from many factors. Viet Nam is located in the threshold of the South East Asia area,
where there are active interactions between economies of local nations and countries from other
areas. Location also grants Viet Nam a great diversity of natural resources. Viet Nam possesses
political stability as only one party has the right to take the lead of the country. Other notable
attracting factors are low cost labors, favorable economic policies and improving infrastructure. 
There have been 97 states and territories invested into Viet Nam in the first nine months
of the year 2022. Singapore has been the biggest investor, with over 4.75 billion USD invested.
Other major investors are Korean with about 4 billion USD, and Japan with approximately 2
billion USD. Up to 2022, FDI has flowed into 53 over 63 provinces of Viet Nam, Ho Chi Minh
has been receiving the largest amount, followed by Binh Duong and Bac Ninh. The flow of FDI
that comes to Viet Nam focuses on many fields, with the leading industry being manufacturing
and processing, which has received over 12 billion USD of FDI in 2022. The following field is
real estate with about 3.5 billion USD, and many other fields for instance textile, machinery,...
There are many examples of successful FDI firms in Viet Nam: Vietsovpetro, Samsung
Electronics, Daikin,... According to the General Statistics Office of Viet Nam, in 2022, the total
amount of FDI registered to be invested into Vietnam is nearly 17 billion USD, which is 12.3%
lower than the previous year. And until August of 2022, 12.8 billion USD of FDI has been put in
motion. 
Viet Nam firms also made investments in other countries. Till the end of the year 2021,
Viet Nam has been investing 1448 projects in other countries, with the total amount of capital
being approximately 21 billion USD. In the first 8 months of 2022, Viet Nam has been investing
395.8 million USD to other countries, through 90 projects, the total amount of resources outflow
decreased approximately 31% compared to last year. Viet Nam investment focuses on mineral
exploitation (about 33%), agricultural, forestry, seafood,... Some major recipients of Viet Nam
investment are Laos, Campuchia and Venezuela.

Downside of FDI
Hindrance of domestic investment
Sometimes FDI can hinder domestic investment. Because of FDI, the cost of investments
becomes more expensive, meaning that 1 dollar invested in return for fewer shares in a company.
Even foreign investors compete for or take away potential opportunities of domestic investors
and push domestic capital out to other countries. This phenomenon is called the “overwhelming
effect”. This effect is formed when foreign capital flows instead of supporting and contributing
capital to the economy, it competes and pushes other capital flows out. 
Affect to exchange rates
FDI can affect exchange rates. To be specific, FDI directly affects the trade balance
through foreign-invested import and export companies, and by adjusting the total amount of
goods exported or imported, investors can influence the exchange rate of that country. There is
an example case: smartphones and electronic components are the products that account for the
largest proportion of Vietnam's export structure, about 51 billion USD. In the structure of
exporting components and phones, Samsung accounted for 97.75% total export turnover. So in
the scenario where Samsung suddenly changes the output, it will have a significant impact on
Vietnam's trade balance and thereby indirectly affect the exchange rate. After that, the
Government must use foreign currency reserves to buy back VND to stabilize the exchange rate. 
Potential Risks
FDI can cause some potential risks of economic bubbles and inflation. First, when
foreign capital flows are not efficient, it will become a burden on the financial system, because it
pushes the asset's price over its actual value. In that case, an economic bubble is formed. Second,
the government wants to attract FDI, they have to loosen fiscal policies and regulations and that
will make the country more dependent on FDI. That means then, foreign capital will be the main
driving force to boost the economy; import and export will play the most important role in GDP
structure. This can bring some benefit: diversifying the commodity market since people have a
higher chance of satisfying their needs when there are many choices of goods and services;
creating opportunities to exchange and learn the knowledge and technology of other countries,
shortening the development gap; products and services are not confined to the country but are
expanded to international markets, this helps increase revenue for domestic enterprises. On the
other hand, as FDI becomes the driving force, some drawbacks will emerge: the country's
economic and financial autonomy is weakened, since foreign enterprises can acquire important
companies and industries of the country and thereby greatly influence political decisions; the
defense against global economic shocks is reduced, because the more countries depends on FDI,
the more severely affected the global recession will be. 

Exploitation
Foreign investors can exploit a country in two ways. First is exploitation of labor. Foreign
investors are exploiting workers in poor countries . The most common is that these businesses
regularly employ people who are unemployed for seasonal work, and because they are not
engaged for a labor contract, they are not protected by labor laws and have to work overtime in a
dangerous environment. The other is exploitation of resources and the environment. Foreign
investors often target underdeveloped or developing countries that have abundant resources to
invest because the input costs of non-renewable minerals there are often cheap and already
available to use. Additionally, the regulations and taxes on environmental protection here are still
lax, foreign companies can take advantage of this to maximize their profits, and the receiving
country will suffer environmental damage.

Solution for FDI management

Applying supporting policies for domestic enterprises. It is necessary to continue to have
solutions to reduce costs for businesses, enhance access to State support packages, such as
making plans to reduce value-added tax and consumption tax for special items. Especially in the
post-COVID-19 context, the government should improve efficiency and implement policies to
support the recovery of the weakened economy.
Stabilizing the exchange rate. The government should continue to stabilize the exchange
rate in the direction of not anchoring the exchange rate to only one foreign currency, USD, but
should have an exchange rate anchoring formula based on a basket of major foreign currencies
(USD, Euro, Yen,...) taking into account weighting of each foreign currency in the total import-
export turnover and total debt of Viet Nam.
Practicing selective investment. The government needs to develop and implement
regulations and standards as a new filter to select foreign investors with advanced,
environmentally friendly, capable and resistant technologies for sustainable development and
ensuring the national security of Viet Nam. Additionally, since 2019, with the implement of
Regulation 50 which is about improving the efficiency of foreign cooperation and investment,
Viet Nam has changed from only receiving FDI to cooperating with the investors, creating equal
standing between the investors and the recipients.
Leverage FTAs to attract foregin investment. Tariff barrier is a key factor that restricts
FDI flows to Vietnam. And the best way to solve this problem is to take advantage of FTAs
(Free Trade Agreements). FTAs contribute to strengthening trade relations between Vietnam and
partners, removing trade barriers to participate more deeply in global production and supply
chains, thereby creating more favorable conditions for Viet Nam, and attracting FDI from
partners.
Unifying goals between the government and foreign investors. In fact, there is often a gap
between the goal of attracting investment capital of the government with the investor's business
strategy, because the government's and the investor's purposes did not match at all. For example,
the government of the host country wants to direct FDI into infrastructure constructions such as
roads, airports, education, etc. with a huge amount of investment capital, low profit margin and
long capital recovery time while investors often focus on projects with a short investment term
and high rate of return on investment…This point requires the government of the host country to
actively plan development sectors and regions and have attractive policies suitable to each
industry or field sector to attract FDI.

Group Presentation 9.
What are sharing economy’s impacts to the global economy? How does
Vietnamese economy benefit from sharing economy and what should be done
for promoting these benefits for Vietnam?

Group Presentation 10.

Give overview about status of trade in Vietnam. What are the roles of trade
for the economic development in Vietnam? What are pros and cons of trade
and policy implications for Vietnam?

Group Presentation 11.

Present the current state of sustainable development in Vietnam (you can
choose a few millenennium goals that Vietnam has/is implementing). Make
proposals on sustainable development in Vietnam.

Group Presentation 12.

Outsourcing and offshoring are dominating trends in economic geography
during the economic integration process? How are the positive and negative
impacts of these trends to Vietnam? What should we do to take advantages
and avoid disadvantages of these trends?