Green Economy Development: Legal Framework to be Finalized Facing many challenges

Vietnam is a convergence of favorable conditions, namely  natural conditions, social conditions and policies to conduct the greening of economy. We have a comparative advantage in natural resources, ecological reserves; the potential development of renewable energy, bio-energy, biomass from wood, and relatively high by-products of industry; the stable socio-political environment; and expanding international relations. However, the road to "green economy" of Vietnam is obstructed with challenges. 

Typically, the efficiency of resource use is low, the economic damage caused by pollution and recession is high. 

In addition, the existing production technology is backward, consuming more energy. Therefore, the product quality is low, generating more wastes to pollute the environment and cause its degradation, which is associated with the increased rate of greenhouse gas emissions. The "brown" economy is still accounted for a large proportion of the economy. The biodiversity declines, non-renewable resources is under depletion, and climate change impacts increase.

In Need of joint action 

His Excellency John Nielsen, the Danish Ambassador in Vietnam and Laos, says that the green development is a new approach in economic growth. With this approach, it is not only to bring about economic benefits, but also to steer towards the restoration and conservation of natural ecosystems to nurture human life, to minimize the impact of climate change. Therefore, many countries around the world are following this approach of this new trend towards sustainable development. 

However, to do this, the Government of Vietnam must have specific policies to encourage enterprises, especially the private sector, to participate. Vietnam should not depend too much on Foreign Direct Investment (FDI). It should instead work out effective solutions to get the whole society involved. It is seen as a need of more financial capital support, the legal framework for businesses to invest in green development. This experience could be found in real application in Denmark.

So apparently, now that Denmark is regarded as the leading country in the efficient use of energy, development of environmentally friendly green products. 

The most important thing is the policies of the Government of Vietnam. The legal framework and environment management tool system should be finalized for businesses to invest in green development. 

In addition, businesses also need capital from banks and financing institutions. Therefore, the government must also ensure access to the financial capital, priority loan with zero interest or low interest rates. Communication Programs should be deployed, calling for psychological sense of community in consumers to shift to using the environmentally friendly products.

Source: VNEEC