$4.128 million in total to go to project for green growth and stable development.
USAID, the UNDP, and the EU will provide $4.128 million to Vietnam under a project to enhance capacity and renew mechanisms for green growth and stable development in the country.
The Ministry of Planning and Investment (MPI) will host the project. Non refundable official development assistance (ODA) provides $3.9 million while MPI's reciprocal capital is $228,000. The project is expected to begin in Hanoi and several others province over a period of four years.
In order to enhance the technological capacity of MPI, the Ministry of Finance, the Ministry of Transport, and certain cities, green growth activities will be combined with the budget expenditure planning of sectors and provinces under the project.
The project also aims to improve knowledge among policymakers and enterprises about green growth and sustainable development. Analyzing financial policies, policy support, and obstacles to green growth are other targets of the project.
The State has requested MPI cooperate with related agencies and the UNDP in Vietnam to prepare plans and approve the annual plan for the project under measures guaranteeing ODA is used effectively.
The National Strategy for Green Growth has already been approved, under Decision No.1393, as has the National Action Plan for Green Growth in the 2014-2020 Period under Decision No.403. Analysts said these represent the key legal framework for developing green growth in Vietnam, especially as regards sustainable development and coping with climate change.
“Vietnam has significant demand for capital for green growth,” said Mr. Pham Hoang Mai, Director of the Department of Science, Education, Natural Resources and Environment (DSENSRE) under the Ministry of Natural Resources and Environment (MoNRE). Vietnam will need about $30 billion to complete its green growth strategy, only 30 per cent of which will come from State, he added.
The country therefore needs to define mechanisms for mobilizing financial resources for green growth, experts said, with the private sector considered the most important source.
Investment by the private sector in green growth plays an important role, according to a report presented to a workshop held on January 8 by MoNRE. The report also said that ODA accounted for the majority of spending on green growth and emphasized that this is an important time for Vietnam to cooperate with sponsors to prepare green growth strategies. In fact, 30 in 66 actions which was done for green growth in Vietnam weren't sponsored by ODA of sponsors, the report pointed out.