Sectoral green investment in Viet Nam over the 2020- 2030 period: Current status and policy recommendations

Abstract

This study aims to assess the current status of sectoral green investment and its corresponding policy framework in Viet Nam during the 2020- 2030 period, identify policy bottlenecks, and propose policy recommendations. Employing analytical and synthetic methods alongside descriptive statistics based on secondary data from international organizations and state management agencies, the findings reveal that the landscape of green investment in Viet Nam exhibits severe structural imbalances. Green investment flows are highly concentrated in the renewable energy sector, while key sectors with significant emission reduction potential, such as sustainable agriculture, green transportation, and industry, lack commensurate resources. This stagnation and uneven distribution stem from implementation barriers, such as policy fragmentation, policy lags, and complex cross-sectoral conflicts of interest. Based on these findings, the study provides policy recommendations, particularly emphasizing the need to shift the governance approach from isolated support mechanisms to systemic coordination. The primary focus should be on integrating spatial planning, perfecting market mechanisms such as Direct Power Purchase Agreements (DPPA) and the carbon market, and applying blended finance instruments.