Hanoi (VNS/VNA) - Net zero is a global game and Vietnamese firms needto quickly prepare to meet its standards so as not to miss, experts said.

Addressing a net zero seminar on in Hanoi on June 27, Hoang Thai Son, Directorof the Ministry of Finance’s Legal Department, noted that Vietnam is a majorexporter to many developed markets, such as the US, the EU and Japan, whichrequire firms to reduce carbon emissions.

Hoang Duc Vuong, Chairman of the Vietnam Recycled Plastics Association, saidforeign firms are currently less interested in labour costs as they are gettingclean energy and being able to exchange certificates of carbon credits wheninvesting in Vietnam.

Hervé Conan, Director of the French Development Agency (AFD) in Vietnam, said Vietnamis currently one of the 20 largest carbon emitters in the world with CO2emissions doubling in the past ten years. Energy levels and costs in thecountry are also greatly increasing. With an economic growth rate of 6-7%, Vietnamwill be one of the world's largest carbon emitters.

Nguyen Quoc Khanh, executive director of Vinamilk’s Research & Development(R&D), said the negative effects of climate change affect everyone, withoutexception. Therefore, Net Zero is not a luxury game for the rich, but a duty,responsibility, and right.

According to World Bank’s estimates, Vietnam will likely need to invest anadditional 368 billion USD by 2040, or 6.8% of GDP per year, as the countrypursues a development path that combines resilience and zero carbon netemissions. The decarbonisation journey to meet international commitmentsaccounts for about 30% of resource needs.

Minister of Finance Ho Duc Phoc said developing green financial and carbonmarkets are priorities that need to be implemented with a focus on developinggreen financial instruments, and sustainable finance; as well as encouraginglocalities and enterprises to issue green bonds and attracting institutionaland individual investors to pour in green financial instruments.

In the coming time, the Ministry of Finance will continue to coordinate withthe Ministry of Natural Resources and Environment and relevant agencies todevelop a Prime Minister's decision on issuing a green classification list,which will be a basis for issuers to choose green projects to use capital fromgreen bonds.

The development and implementation roadmap for the domestic carbon market hasbeen also promulgated by the Government in Decree 06/2022/ND-CP regulations onthe reduction of greenhouse gas emissions and protection of the ozone layer.

Accordingly, from now until the end of 2027, the Ministry of Finance will focuson building regulatory systems and policies to create a foundation for themarket to operate, alongside establishing and organising a pilot operation of acarbon credit certificate trading exchange with an aim to officially operatethe exchange in 2028.

According to Phoc, as well as having been assigned to preside over thedevelopment and establishment of a carbon credit certificate trading exchange,and issue a financial management mechanism for the operation of the carbonmarket, the Ministry of Finance is studying to develop a carbon marketdevelopment project to submit to the Prime Minister for approval.

Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said herministry is conducting research and developing a set of scientific criteria fornational green classification, which is the basis for selecting investmentprojects and quantifying and assessing the progress of green growth.

Harmonising many factors, such as selecting green investment projects andmobilising domestic and international resources, will help quantify theprogress of green growth. As a result, green projects will have conditions toaccess green finance and new preferential policies.

Ngoc expects details of areas and projects in line with green growth andinternational practices will be issued soon./.