On January 16, the Ho Chi Minh City Development Research Institute organized the Workshop "Promoting Green Finance and Carbon Credit Trading Floors in the International Finance Center". The event took place at the Ho Chi Minh City Creative Startup Center (SIHUB), attracting hundreds of guests who are experts, management agencies, and businesses.
In his presentation, Mr. Pham Binh An - Deputy Director of the Ho Chi Minh City Development Research Institute - emphasized that Ho Chi Minh City (old) has and is having some related research activities: circular economy, green growth plan... but not systematic.
Under the direction of the Ho Chi Minh City People's Committee, the Ho Chi Minh City Development Research Institute is the focal point for coordination to implement the Green Transformation project with the goal of: Building a unified strategic framework, creating a synchronous coordination mechanism between sectors and localities; proposing a system of targets, criteria, solutions and specific action programs; optimizing the use of resources, promoting renewable energy, green transportation and circular economy.
Mr. Binh An analyzed that green transformation in Ho Chi Minh City faces opportunities and challenges. Regarding opportunities, Ho Chi Minh City is a major economic and technological center attracting green investment; Resolution 98 creates preferential mechanisms on taxes and credit; potential for ecotourism, wind power and smart cities...
However, the project also faces some major challenges such as: Very large capital demand, high green loan interest rates; businesses have difficulty accessing green credit; urban infrastructure is overloaded, population is large, waste is increasing rapidly; community awareness and sustainable consumption are still low; climate change, flooding and overlapping institutions...
According to representatives of the Ho Chi Minh City Development Research Institute, the total capital demand for implementing the Ho Chi Minh City Green Transformation Project in the period 2025-2035 is estimated at about 900,000 billion VND, including investment expenditures for key programs and projects under 10 green transformation pillars, expenditures for digital infrastructure, data management, training and community communication.
Expected resource structure: State budget of about 20% - prioritizing energy infrastructure, transportation, waste treatment and data infrastructure. Socialized capital, PPP accounts for about 45% - mobilized from businesses, domestic investment funds. International capital and ODA account for about 35% - from financial institutions and global climate funds.
Meanwhile, Mr. Shehryar Ali Shah - Chief of IFC Office in Ho Chi Minh City - said that green finance will be the focus of the Financial Center in Vietnam in the future. “This is not only an urgent global priority, but also a great economic opportunity for Vietnam,” he emphasized.
According to the World Bank Group's National Climate and Development Report, Vietnam will need an additional 368 billion USD of climate-related investment by 2040, equivalent to 6.8% of annual GDP. State resources alone cannot meet this demand.
Vietnam will need to mobilize large-scale private capital both domestically and internationally. And this is where green finance plays a key role.
According to Mr. Shehryar Ali Shah, Vietnam has a number of great opportunities such as: Strong investment needs in green and sustainable investments, Vietnam is soon applying the National Green Classification; increasing interest from banks in ESG integration; the potential of foreign currency sustainable bonds; expanding renewable energy and sustainable infrastructure projects.
However, Vietnam also faces a number of other major challenges such as high pre-issuance costs for green bonds, limited domestic long-term capital, and the need for systematic climate risk assessment tools...
