Building a greener and more inclusive Viet Nam through improved management of public and private resources
Title: Macroeconomic Reforms/Green Growth Programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Co-funded by: The European Union
Country: Socialist Republic of Viet Nam
Lead executing agency: Ministry of Planning and Investment (MPI)
Overall term: 2019 to 2026
Since its comprehensive reforms in 1990, Viet Nam has developed rapidly and achieved impressive economic growth. However, this growth required an extensive use of labour, natural resources, and capital. Maintaining a high level of growth in future can only be achieved by fostering a more inclusive and green economy.
The government of Viet Nam makes great efforts to introduce green transformation and promote environmentally friendly and inclusive growth in its Vietnam Green Growth Strategy (VGGS), which was renewed for the period of 2021-2030, with a vision towards 2050. Viet Nam has also expressed a strong commitment to reach zero emissions by 2050 and is a key partner for implementing the Sustainable Development Goals (SDGs). Furthermore, it runs a multitude of sector-specific initiatives to increase productivity and raise environmental and social standards. However, coherence of these different initiatives remains a challenge.
Viet Nam is better able to manage its public and private resources towards inclusive and green growth. This will be achieved by improving the coherence among Viet Nam’s economic policies, including policies on green finance and public finance management.
The programme supports the Vietnamese government in formulating and implementing macroeconomic reforms and in enhancing the management of public and private resources towards green and inclusive growth by:
- Improving the capacities of the Ministry of Planning and Investment in managing public and private resources for Green Growth and implementing the Sustainable Development Goals;
- Supporting the Central Institute for Economic Management in research and policy advice, concerning economic restructuring towards green growth, circular economy and regional development linkages;
- Collaborating with the Ministry of Finance on improving the public financial management of Viet Nam;
- Working with the State Bank of Viet Nam on a financial market reform that is beneficial for green growth and improving the capacities of the green financial market actors;
- Working with the Ministry of Labour, Invalids and Social Affairs to integrate social dimensions into green growth policies.
Last update: December 2022