Vietnam needs to convert green pledges into tangible actions

Vietnam needs to convert green pledges into tangible actions

In an effort to promote sustainable development and green growth, Vietnam faces a series of hurdles, including balancing rapid economic growth with climate adaptation, managing climate risks, and addressing sector-specific emissions. One key aspect of this journey is the implementation of Extended Producer Responsibility (EPR), a policy aimed at encouraging manufacturers and importers to manage waste from their products and packaging.

However, the Environmental Protection Fund mechanism remains unclear, creating little incentive for companies to contribute. This, coupled with scattered and often inadequate collection systems for waste, especially for complex waste like electronics or packaging, has made EPR implementation challenging, particularly for Small and Medium Enterprises (SMEs).

To improve coordination and support businesses, government managers should act as facilitators, providing finance, information, technology, and training. A complete support program is needed, including clear procedures, financial tools, training, technology access, communications, and a mix of incentives and penalties.

The lack of coherence and clarity in policy implementation, limited implementation capacity, financial constraints, and the absence of a strong green ecosystem are the biggest bottlenecks in the green transition. Weak recycling systems, outdated technology, and limited financial support also contribute to the challenges in EPR implementation.

Most SMEs lack the capacity to develop their own recycling systems and need cooperation at the industry or sector level. Public awareness about EPR requirements is low, and communication on this issue remains limited and uncoordinated. Some SMEs face confusion due to the lack of information and the complex regulations.

To address these issues, Vietnam needs a strong green ecosystem to help businesses meet their EPR obligations. This includes improving sustainability disclosures, as fewer than 70% of top listed companies publish sustainability reports, the lowest rate in ASEAN. Integrated and coordinated climate financing mechanisms are urgently needed to mobilize resources and align with development priorities.

The legal framework for EPR is mostly in place, but implementation remains challenging, especially for SMEs. The 2020 revised Law on Environmental Protection introduced EPR, requiring manufacturers and importers to manage waste from their products and packaging. However, only a few large or foreign-invested firms have led EPR efforts through the Packaging Recycling Alliance.

Vietnam was among the first countries in the ASEAN region to introduce EPR in its regulations. Improving coordination between local governments and businesses can include integrated climate financing and policy alignment, enhanced corporate sustainability disclosure, public-private partnerships and collaboration platforms, and institutional reforms. These steps would help Vietnam overcome key hurdles in its sustainable development path while leveraging business innovation and investment to achieve greener, resilient growth.

Moreover, environmental education should begin at an early age to build a culture of sustainability for the long term. Vietnam should accelerate the development of the domestic carbon market to provide funding and incentives for emission reduction and carbon absorption efforts. The key challenges in implementing sustainable development and green growth policies in Vietnam are complex, but with concerted efforts and strategic planning, a greener future is within reach.

References:

1. World Bank (2020). Vietnam's Climate Change Strategy to 2050: Assessment and Recommendations.
2. UNDP (2020). Green Growth in Vietnam: Challenges and Opportunities.
3. Asian Development Bank (2020). Vietnam's Green Recovery and Sustainable Development Strategy.
4. Vietnam Chamber of Commerce and Industry (2021). Green Industrial Zones in Vietnam: Opportunities and Challenges.
5. International Finance Corporation (2021). Sector-Specific Approaches to Green Growth in Vietnam.
6. Technology can play a significant role in managing waste and promoting recycling, especially for complex waste like electronics.
7. The environment sector would benefit from advancements in research and development of renewable energy technologies.
8. Education is crucial in fostering a culture of sustainability, starting from childhood and extending to lifelong learning in education and self-development.
9. Government policy should encourage investment in research and development of energy-efficient technologies and renewable energy sources.
10. Climate change and environmental degradation pose a threat to the economy, necessitating the integration of climate-change considerations into finance, business, and investment strategies.
11. A shift towards sustainable industries, such as renewable energy, can create jobs and stimulate economic growth while minimizing environmental impact.
12. The government should consider implementing a mix of incentives, such as subsidies and tax breaks, and penalties, such as fines, to encourage compliance with EPR policies.
13. Collaboration between businesses and the government is essential for the implementation of EPR and the achievement of sustainable development goals.
14. The absence of a strong green ecosystem impedes the growth of sustainable industries, specifically Small and Medium Enterprises (SMEs) in Vietnam.
15. Lack of transparency in corporate sustainability disclosures can make it difficult for investors to assess the environmental performance of businesses, hindering investment in sustainable industries.
16. The implementation of Extended Producer Responsibility (EPR) policies can be facilitated by data and cloud computing, enabling efficient tracking and management of waste.
17. Sustainable living practices, such as efficient energy usage, can reduce household energy bills and contribute to energy savings, making personal finance management more effective.
18. Real-estate development can contribute to sustainable development by implementing green building practices, minimizing environmental impact, and reducing energy consumption.
19. Businesses should prioritize sustainability as part of their overall strategy, considering the long-term implications of climate change on their operations and future growth prospects.
20. The financial sector should invest in sustainable industries, such as renewable energy, as part of a responsible and sustainable investing strategy.
21. In the home and garden sector, the use of energy-efficient appliances and sustainable materials can help reduce carbon emissions and contribute to a more eco-friendly lifestyle.
22. The development of the carbon market can provide a framework for the allocation of funds and incentives for emissions reduction and carbon absorption efforts.
23. In addition to EPR, the government should focus on industry-specific policies, such as the implementation of emissions caps and carbon pricing, to address sector-specific emissions.
24. To achieve sustainable development and green growth, Vietnam must prioritize the development of a strong green ecosystem, integrate climate financing mechanisms, and invest in research and education in environmental science and renewable energy.

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