A wind farm in Dak Nong province. According to PwC, Vietnam should focus on facilities that support the transition to a low-carbon economy to fully unlock the global green capital. (Photo: VNA) The country is digging deep into its pocket to finance new infrastructure,which is aimed to improve its people's living standards, bolster its greentransition, and enhance its resilience against climate change.
With total spending of 5.7% of GDP on infrastructure, Vietnam has taken thelead in Asia in this regard.
Dang Huy Dong, head of the Planning and Development Institute, revealed thatthe Government had taken active measures to promote investment in greenfacilities, including those supporting the production of renewable energies andelectric vehicles.
The national master plan for the period of 2021-2030 with a vision to 2050, Dongsaid, had highlighted the need for a national development model, in which thedevelopment of infrastructure has been featured as a key factor.
Edward Clayton, partner at Capital Projects & Infrastructure, PwC Vietnam,said the development of infrastructure in Vietnam would open up moreopportunities for stakeholders and investors in the green sector.
He believed that green facilities would accelerate the country's transition toa high-income economy, reduce emissions, and contribute to a sustainable futurefor the Vietnamese people.
Adrian Box, national markets lead for PwC's Integrated Infrastructure, said thedevelopment of sustainable infrastructure in Asia-Pacific was facing variouschallenges.
One of the challenges involves the lack of experience and finance in localauthorities, which has proved to be a big setback to high-quality infrastructuralprojects.
He underlined Public-Private Partnerships (PPP) as an effective mechanism todeal with the challenge thanks to its split of risks between public and privatesectors.
According to PwC's Global Investor Survey, investors have become more sustainability-awareas they have incorporated ESG (environment, social, and governance) standardsinto their investment decisions.
Governments and financial institutions have tightened their cooperations topush for more environmentally-friendly portfolios, which would contribute tothe target of limiting global warming to 1.5 degrees Celsius set by the Intergovernmental Panel onClimate Change (IPCC).
Vietnam’s commitment to net-zero carbon emissions at COP26 hassparked global investors' interest in its sustainable infrastructure. To fullyunlock this source of capital, the Government should focus on facilities thatsupport the transition to a low-carbon economy.
Private finance is essential for the development of sustainable infrastructure,especially in sectors with tight public finance. Private economic players, withtheir deep pocket and considerable experience, are instrumental for narrowingthe infrastructural gaps and accelerating the country's transition tosustainability./.
VNA
