Overcoming Challenges to Develop a Green Economy

​(News Portal – Dong Nai) - The Southeast region (SE region) is the country’s economic hub, a major industrial, seaport, aviation, and logistics hub. Due to this, the region is facing numerous difficulties and challenges.
With support from the Central Government and scientists, each locality in the region must strive to improve the environment, aiming towards sustainable and green economic development. ​

Assoc. Prof. Dr. Bui Quang Tuan, former Director of the Vietnam Institute of Economics, at the Southeast Regional Conference on improving the investment and business environment towards a green economy and sustainable development ​

Challenges for the country's economic hub
According to the Central Government's assessment, the SE region is a dynamic, creative economic region, leading the country's innovation and development. It boasts favorable conditions and outstanding advantages for developing industries, services, especially high-tech industries. However, in recent years, economic growth in the region has shown signs of slowing, contributing less to the national budget, and labor productivity growth is low. Additionally, a series of challenges have emerged, such as insufficient and non-synchronized technical infrastructure, environmental pollution, and increasing climate change, hindering socio-economic development.

In the region's strongest economic field, industry, the use of outdated assembly lines and equipment is still prevalent. Supporting industries, manufacturing, and semiconductor technology are developing slowly. The uneven distribution of export processing zones and industrial parks also creates reverse pressure on environmental protection efforts and the development of infrastructure supporting life and economic growth.

Assoc. Prof. Dr. Bui Quang Tuan, at the recent Southeast Regional Conference, noted that the region is facing many challenges. The most visible issue is the lack of regional and inter-regional infrastructure networks, especially internal and inter-regional transportation infrastructure, which is insufficient and unsynchronized. Industrial development lacks sustainability and provides low added value. The quality of the workforce, especially high-quality personnel, does not meet development requirements. Social infrastructure is lacking, particularly housing for low-income individuals. Water, air pollution, waste, and flooding are on the rise.

Sharing on this issue, Mr. Pham Ngoc Thach, Deputy Head of the Legal Department, Vietnam Chamber of Commerce and Industry (VCCI), stated that in 2023, the Southeast region led the country in the Provincial Green Index (PGI). Dong Nai ranked 3rd nationwide, Ho Chi Minh City 5th, Tay Ninh 6th, Ba Ria - Vung Tau 8th, and two other localities, Binh Duong and Binh Phuoc, were in the top 30. This indicates that environmental governance quality in the region, as assessed by businesses, is very good.​

However, according to Mr. Thach, the region faces many of the aforementioned challenges. Currently, the percentage of businesses benefiting from green investment policies (policy incentives, benefits from environmental management consulting services, benefits from training services when investing green) is not high. The proportion of businesses intending to expand investment in the region has decreased to 21% compared to 76% in 2006 and 52% in 2017. This shows a decline in the region's investment attraction.

Industrial production following the green criteria in Dong Nai 

Swiftly Complete the Frameworks for a Green Economy  

To overcome challenges and turn advantages into driving forces for economic development, the Central Government has issued many important policies for the SE region. Most notably, Resolution 24-NQ/TW dated October 7, 2022, by the Politburo on socio-economic development and ensuring national defense - security in the SE region until 2030, with a vision to 2045. The resolution aims to turn the region into a civilized, modern, internationally integrated area, developing rapidly and sustainably, harmoniously across subregions, in conjunction with ecological environmental protection and adaptation to climate change and rising sea levels.

In May 2024, Prime Minister Pham Minh Chinh signed Decision No. 370/QD-TTg approving the SE regional planning for the 2021-2030 period, with a vision to 2050. One of the goals is to become a leading region in innovating growth models, developing a green economy, low carbon emissions, adapting to climate change; rapidly developing a green, smart, and modern urban system; and fundamentally solving environmental pollution, traffic congestion, and flooding.

Assoc. Prof. Dr. Bui Quang Tuan believes that while important policies for the region are in place, and localities and businesses have a basic understanding of a green economy and sustainable development, the remaining issue is to complete regulations and calculate resources to implement these policies. For example, many localities in the region have advantages in marine economic exploitation, so what are the specific measures to develop a circular marine economy, the contribution indicators of each marine economic sector, and the resources for implementation...

VCCI Vice President Vo Tan Thanh stated that improving the investment and business environment, enhancing the quality of local environmental governance, is crucial to attracting investment and promoting economic growth. This is the foundation for building a sustainable and prosperous economy. This not only facilitates businesses to develop, innovate, and compete fairly, but also contributes to improving the quality of life for residents, creating more job opportunities, and promoting local development.

It is evident that the SE region possesses the conditions and potential to lead neighboring regions in economic development. Completing the frameworks for the region to overcome challenges and leverage advantages is a pressing issue. Along with that, each locality must effectively enforce standards and regulations on environmental protection, provide comprehensive information and specific support on procedures, credit, and taxes to encourage businesses to transition to circular production models and green production, thereby contributing to sustainable development.