Enhanced Policy for Increased Green Finance in Viet Nam

Viet Nam has decided to shift away from traditional models of growth towards a sustainable green growth development model targeting a low-carbon pathway by 2030. Hence the country has adopted the Viet Nam Green Growth Strategy (VGGS) and a corresponding Green Growth Action Plan. However, the cost of implementing the VGGS is estimated to be at least USD 30 billion. Due to limitations in domestic financing and ceasing of ODA and concessional loans by 2017 because of Viet Nam’s MIC status means that the country will have to diversify its funding sources and explore innovative funding mechanisms. To this end, the VGGS calls for increased investment across all sectors including through public-private partnerships (PPP) and international sources, and specifically calls for a scaled-up financing of green growth. Mobilizing finance to support the implementation of VGGS and the Country Planning Framework (CPF) will necessitate technical support to develop and strengthen green growth financing policies and institutions.