Workshop on “Knowledge Sharing on Green Taxonomy”

• Madame Nguyen Thi Huong, General Director, General Statistics Office (GSO)
• Distinguished speakers, and participants from the National Assembly, line ministries, state agencies, development partners, think tanks and academia
• Colleagues and friends

Good afternoon.

It is a privilege to join you in this virtual workshop: “Knowledge Sharing on Green Taxonomy.” The UN development system in Viet Nam is pleased to support and collaborate with the General Statistics Office (GSO) in organizing this important workshop.

I sincerely appreciate the initiative of GSO to undertake the development of “green taxonomy” for Viet Nam as assigned by the Ministry of Planning and Investment (MPI).

Distinguished participants, 

Viet Nam has made significant strides in promoting socio-economic development and improving living standards in the past few decades. GDP per capita grew from US$2,761 in 2016 to US$4,284.5 in 2023. Multi-dimensional poverty decreased from 9.2% in 2016 to 3.2% in 2023. Despite COVID-19 setbacks, the Human Development Index (HDI) increased to 0.726 in 2022, having achieved High Human Development country status since 2019. 

Building upon these commendable achievements, Viet Nam is committed to the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). Viet Nam also aspires to become a High-Income Country (HIC) by 2045 and realize net zero emissions targets by 2050.    

Critical development challenges remain. Along with rising global economic and trade fragmentation  and rapidly aging population, Viet Nam is also increasingly affected by climate risks. While Viet Nam’s 2023 Voluntary National Review (VNR) documents considerable progress in goals and targets related to poverty reduction, access to safe water and sanitation, and industrial and infrastructure development -- there is urgency to make progress in goals and targets such as protecting biodiversity and improving ecosystem services (SDG 15). Viet Nam, thus, needs to boost implementation and investments to bring all SDGs back on track to achieve the 2030 targets.

Therefore, a fundamental shift needs to take place in Viet Nam’s economic development model -- to be more sustainable, resilient and inclusive. A model that puts people at the centre of development and can ensure environmental sustainability is essential for ensuring durable and long-term economic prosperity and social solidarity.

The Government is committed to this shift, as clearly demonstrated, for example, in its pledge for net-zero emissions at the UN Climate Change Conference of the Party (COP26) in Glasgow in 2021. Along with other policies and strategies, the Government has also introduced the National Green Growth Strategy 2021-2030 and the latest Nationally Determined Contributions (NDCs) in 2022.

Distinguished participants, 

Why do we need a green taxonomy?

Let me highlight three points:

First, what is a green taxonomy? According to the UN Economic and Social Commission for Asia and the Pacific (UNESCAP), “A taxonomy in green and sustainable finance is a classification system that helps identify and classify investments as green based on their alignment with specific environmental objectives and targets.”

Second, green taxonomy plays an important role in unlocking finance to support sustainable development. Green taxonomy is one of the policy tools that can help orient the flows of public and private capital or investments into green and sustainable projects that are aligned with environmental objectives. As green taxonomy provides common framework and language for identifying and classifying environmentally sustainable economic activities and assets, it helps policymakers and investors to make informed economic decisions and take actions in alignment with SDGs and environmental sustainability.

Third, although there may be different approaches to developing a green taxonomy, it is important to establish key principles for developing a taxonomy that is applicable and useful for supporting the country’s sustainable development.

In this regard, to contribute to the deliberations of the green taxonomy development for Viet Nam, I would like to underline two key principles for consideration: 

• First, a whole-of-society and a whole-of-government approach is important for developing a green taxonomy that is relevant and applicable. This is because participation of relevant stakeholders, including government entities, financial institutions, investors, the private sector and public, would help raise awareness, strengthen societal solidarity and deepen the sense of duty and responsibility for effective implementation.
• Second, a green taxonomy framework that is tailored to Viet Nam’s context, with due consideration to its environmental and financial policies as well as capacity. This is critical because the green taxonomy can cover a wide range of purposes such as climate adaptation and mitigation, circular economy, water, pollution and biodiversity. It needs to be fit for purpose.

In closing, I reiterate our collective commitment to foster inclusive and sustainable development. For this to happen, we need to have economic and financial systems that are focused on delivering prosperity not only for the present, but future generations as well. 

Thank you! Xin cam on!