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Transforming Vietnam’s economy towards green growth

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Vietnam is now facing the pressing and urgent need to restructure the economy as macroeconomic imbalances and inefficiencies of the current growth model have become increasingly visible. The 11th National Party Congress in January 2011 analyzed and highlighted the limitations and weaknesses of the slow-paced economic transition from the width-based to the depth-based growth model, and drew valuable conclusions. | Transforming Vietnam’s Economy towards Green Growth Transforming Vietnam’s Economy towards Green Growth(1) Vu Tuan Anh * Abstract: Vietnam is now facing the pressing and urgent need to restructure the economy as macroeconomic imbalances and inefficiencies of the current growth model have become increasingly visible. The 11th National Party Congress in January 2011 analyzed and highlighted the limitations and weaknesses of the slow-paced economic transition from the width-based to the depth-based growth model, and drew valuable conclusions. The Party emphasized the urgent need to reform the growth model and conduct economic restructuring, as well as to improve the quality, efficiency and competitiveness of the overall economy. This article will explore the transition trends of the economy into the green growth model. Key words: Green growth, Vietnam, transition, economy. 1. The economic growth model as of today Green growth is a new development model pursued by many countries in the world. Not only does it reduce greenhouse gas emissions, curtail the negative impact of climate change but it also improves the quality of growth, reforms the production and consumption structure with sustainability and help raise the living standards of the people. Green growth was once an idea that incorporated environmental issues into the economy but nowadays, it has expanded beyond the initially restricted definition. Green growth is defined as “the process of restructuring economic activities and infrastructure to achieve better return from investments in natural resources, human resources and finance, as well as to reduce greenhouse gas emissions, exploit and utilize less natural resources, generate less waste, and reduce social inequality” (definition by the UN Green Growth Initiative). With these characteristics, green growth is a suitable economic model for Vietnam. In September 2012, the Vietnamese Government approved the National Green Growth Strategy which confirmed .