Chính sách tài chính hướng tới nền kinh tế xanh kinh nghiệm quốc tế và bài học cho việt nam TT TIENG ANH

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY - SUMMARY OF PHD THESIS FINANCIAL POLICIES TOWARD GREEN ECONOMY: INTERNATIONAL EXPERIENCES AND LESSONS FOR VIETNAM Major: International Economics Code: 9310106 TRAN THI QUYNH HOA Hanoi – 2021 The thesis is completed at: Foreign Trade University, 91 Chua Lang, Dong Da, Hanoi Scientific supervisors: Assoc., Dr Tu Thuy Anh Reviewer 1: Reviewer 2: Reviewer 3: The thesis will be defended at Doctoral Thesis Committee for University Level Location:… Time: … After the publication, the thesis will be stored at National Library of Vietnam and Foreign Trade University’s Library INTRODUCTION Rationale of the study Most countries, from developed to developing countries, are gradually making a transition to a green economy, aiming to restore and conserve ecosystems, and minimize the impact of climate change In Vietnam, after 30 years of rapid and inclusive growth, Vietnam's position has gradually improved However, this growth drags on According to the use of labor, natural resources and capital leads to low energy and resource efficiency in practice, as well as increasing levels of air pollution, water and soil pollution, continuously increasing increase in greenhouse gas emissions per unit of GDP Currently, Vietnam has issued many financial policies towards a green economy, however, in the process of implementation, these policies have also revealed some limitations, such as tax rates and tax rates Inappropriate activities that cause environmental pollution, sanctions for acts causing environmental pollution are not strong enough, the list of taxable environmental protection taxes is still lacking Therefore, Vietnam needs to make some adjustments financial policy to gradually green the economy Therefore, it is really necessary to study the experiences of other countries in applying financial policies towards green economy Therefore, the author chooses the topic "Financial policy towards a green economy: International experiences and lessons for Vietnam" in order to give an overview of green economy and experiences of other countries in the use of financial policies towards green economy On the basis of analyzing the actual situation of implementing the green economy in Vietnam, the thesis points out difficulties and advantages of Vietnam in developing green economy Finally, there are solution proposals on financial policies to accelerate Vietnam’s green economy effectively Objectives of the thesis The thesis aims at studying international experiences on financial policies towards green economy, assessing the current situation of policies towards green economy in Vietnam, drawing lessons and proposing solutions on financial policies towards green economy for Vietnam Literature review Financial policy is considered to be the most effective tool to implement the principle of “polluter pays” Even so, financial policy towards a green economy still faces some obstacles such as lack of political will; limited transparency; lack of knowledge, information, data and awareness; opposition from interest groups; lack of human and technical capacity… (Withana, 2013) The spending policy towards green economy has been used in many countries Spending on the green economy allows the cost of negative environmental externalities to increase in public income and expenditure, such as environmental taxes, public spending or harmful subsidies reform (OECD, 2020) Revenues from environmental protection tax are set aside for a fund or allocated to specific goals, for example to projects related to sustainable development such as energy, transport, construction, tourism, fisheries, industry and agriculture From there, the impact is back on the economy (Cottrel and Falcão, 2018) 4 Besides revenue and expenditure policies towards a green economy, other financial policies (green credit, green securities, carbon credit market ) have also been widely used by countries China is considered as one of the countries that has made significant policy changes towards promoting green credit (Wang et al., 2019) Green Credit provides low-interest support and implementation loans to those who research and manufacture pollution control equipment and any business or organization that protects ecology and builds and develops, use new energy, or engage in green production, ecological agriculture (Wien and Botang, 2012) The issuance of green securities will help create conditions to attract large capital sources in the society to support the implementation of environmentally friendly projects, meet social responsibility goals, and serve the development sustainability (Barnes, 2019) Among the financial policies towards a green economy in Vietnam, tax policy is assessed as having a positive impact on environmental protection: i) Solving environmental problems; (ii) Raising awareness of environmental protection; (iii) These tax revenues contribute to increase state budget revenue (Nguyen Thi Thanh Hoai, 2014) Research objects and scope Research scope Scope of content: Tax policies (resource tax, environmental protection tax, corporate income tax and excise tax policy), spending and other financial policies (green credits, green bonds and carbon certificates) In terms of assessing impacts of environmental protection tax on CO2 emissions, limitations in data of Vietnam not allow the analysis of various policies Therefore, the thesis uses only tax on environmental protection in the econometric estimation Scope of time: The thesis focuses on researching and evaluating financial policies and impacts of financial policies on Vietnam’s green economy in 20112020 and proposes major solutions to implement until 2030 Spatial scope: The thesis studies experiences of China, Japan, and South Korea on financial policy Regarding green bonds and carbon credit market, the thesis studies more about the experience of India and EU, respectively Research question: Firstly, what role does financial policy play in the green economy? Second, what are the contents of financial policies in countries around the world aimed at a green economy and what can Vietnam learn? Third, what results have been achieved in Vietnam's fiscal policy towards a green economy? What contents need to be revised, supplemented and perfected? Fourth, the solution to improve financial policy in Vietnam towards a green economy? Analytical framework of the thesis To clarify the research contents, the thesis is based on the following analytical framework 5 Experiences in revenue policies Experiences in spending policies Experiences in other financial policy Financial Policy International experiences economy Theoretical basic Environment Green economy Financial policy towards green economy Lessons and Solutions Current status of financial policty towards green economy in Vietnam Society revenue policy Spending policy Other financial policy Research methodology The thesis is conducted by qualitative and quantitative research using both primary and secondary data Qualitative and quantitative research based on secondary data is carried out in the office, which includes methods of analysis, comparison, synthesis of theoretical frameworks on green economy, financial policy towards green economy, experiences of financial policies towards green economy, characteristics of financial policies towards a green economy in Vietnam Then, the author uses qualitative and quantitative research based on primary data with the ordinary least squares to estimate the impact of the tax policy on CO2 emissions in Vietnam Contribution of the thesis 8.1 Theoretical contribution The thesis has systematized theoretical issues on financial policies towards a green economy, synthesizing factors affecting the green economy of Vietnam, especially financial policy 8.2 In term of practice In term of practice, the thesis has researched the international experience of some countries such as South Korea, Japan and China in using financial policies toward a green economy, thereby drawing lessons for Vietnam The thesis has also quantified the impact of environmental protection tax on CO2 emissions in Vietnam The thesis also pointed out the results achieved by financial policies towards a green economy in Vietnam through economic, social and environmental channels, and also pointed out the limitations in some policies, the reasons for these limitations 6 On the basis of clarifying the legal and practical aspects of research, the thesis has proposed a number of solutions to improve the current financial policies, and at the same time, add a carbon tax to the tax system in order to contribute to better realizing the goal of Vietnam's green economy Structure of the thesis Apart from the introduction and conclusion, the thesis is organized into chapters including: Chapter 1: Overview of green economy and financial policy towards green economy Chapter 2: International experiences in financial policies towards green economy Chapter 3: Assessment of financial policy towards green economy in Vietnam Chapter 4: Lessons for Vietnam and measures to improve financial policies towards green economy in Vietnam CHAPTER OVERVIEW OF GREEN ECONOMY AND FINANCIAL POLICY TOWARDS GREEN ECONOMY 1.1 Overview of green economy 1.1.1 Concept and characteristics of green economy According to the Green Economy Coalition - 2012 cited in the United Nation's A guidebook to the Green Economy study: “A green economy is one that creates a better quality of life for all people humans within the ecological limits of the earth” (United Nations, 2012) Some basic features of a green economy are as follows: Firstly, a green economy is one that aims to reduce greenhouse gas emissions and respond to climate change Second, a green economy is an economy that exploits and uses resources efficiently Third, a green economy is an economy that applies advanced and environmentally friendly technologies 1.1.2 The goal of moving towards green economy According to UN (2015), 12 of 17 Sustainable Development Goals (SDGs) are related to green economy 1.1.3 The role of green economy Green economy plays an important role in sustainable development Green economy can help alleviate poverty Green economy can create jobs in new industries and fields such as renewable energy, organic agriculture, public transport, recycling, etc Green economy protects biodiversity 1.1.4 Policy system towards a green economy UNDESA has proposed six policies towards a green economy: Internal policy, incentive policy, institutional policy, investment policy, information policy, and other policy 1.2 Overview of financial policy 1.2.1 Concept of financial policy According to the OECD (2002), “Financial policy refers to policies related to the regulation, supervision and supervision of the financial and payment systems, including markets and institutions, to promote stability financial performance, market efficiency and customer-asset and consumer protection” For Vietnam, the scope of national financial policy covers public finance, corporate finance, financial markets, and household or residential finance 1.2.2 Role of financial policy First, financial policy is theoretically a tool to overcome market failures and effectively allocate resources in the economy through government spending and revenue collection Second, financial policy functions as a tool to distribute and redistribute gross national product, creating a social stability to create a stable environment for investment and growth Third, financial policy is aimed at growth and development orientation Fourth, financial policy can be applied to stabilize the macro-economy 1.3 Overview of financial policy towards green economy 1.3.1 Parts of financial policy towards green economy a State financial policy State financial policy in the green economy is a government intervention in the tax system and government spending to achieve the goals related to the transformation of the economic model to a green economic model b Corporate finance policy In the green economy, corporate finance policy is understood as the regulations on mobilizing resources for business activities in the green economy or transitioning to the green economy such as taxes, fees, charges, credits , budget expenditure for direct or indirect support, price subsidies, price compensation, credit guarantee funds, regulations on financial management in capital mobilization of enterprises in order to support and develop enterprises to transform change economic model to green economic model operation c Financial market development policy The green economy could become a key driver of value creation for investors, banks and other financial services companies Therefore, the financial market development policy in the green economy includes the policy of developing the equity and debt capital markets, the private investment fund, the venture capital and early stage investment, and the development of the bank and insurance with the goal of Sustainable Development 1.3.2 Effects of fiscal policy towards a green economy The influence of financial policy on the green economy is considered from the following angles: In economic terms, financial policies aimed at a green economy are implemented to encourage investment in the premise for a green economy, creating economic restructuring towards low-consumption production industries and lowemission industries In terms of environment, financial policies towards a green economy have the following impacts: (1) Tax and fee policies aim to influence production and consumption behavior through tax incentives for activities eco-friendly economic activity while taxing economic activity that harms the environment; (2) Policy on spending budget for the purpose of environmental protection, encouraging environmentally friendly economic activities Socially, the impact of financial policy on the green economy is through increasing human health due to an improved environment and indirectly by creating or releasing resources for poverty programs or pro-poor investments However, the influence of financial policy on the green economy depends on many other factors such as: policy formulation process; qualifications of the contingent of cadres and civil servants participating in policy making; methods of receiving information for policy formulation; socio-economic development strategies of countries in each period; the process of international economic integration of countries 1.4 Research method of financial policy towards a green economy Group of theoretical research methods: A group of methods of collecting scientific information on the basis of studying existing documents and documents and by logical thinking manipulations to draw necessary scientific conclusions 9 Analytical and synthetic methods: the PhD student conducts research on various documents related to financial policy, to the green economy by analyzing the content of each financial policy to gain insight on the role of financial policy in the green economy Classification and systematization method: using classification and systematization to classify financial policies according to the goals to be achieved to build a green economy Research method: study the experiences of countries on financial policies towards a green economy Case study method: through assessing the impact of environmental protection tax on CO2 emissions of Vietnam Group of practical research methods: In the thesis, practical research methods are used including: qualitative research methods and quantitative research methods Qualitative research method: This is the method that the thesis uses to base on the nature, characteristics and role of financial policies and the characteristics of the green economy to make judgments about the link between fiscal policy and green economy Quantitative research methods Based on theoretical research and literature review, a model to assess the impact of financial policies on the green economy is built as follows: LnCO2i = b0 + b1CSTCi + b2Xi + εi in which, CO2 is the dependent variable – CO2 emissions CSTC is financial policies such as carbon tax, environmental tax, energy tax; Xi are the determinants of CO2 emissions (control variable), including: Economic growth; Energy consumption; Population; Trade openness; Environmental Protection tax Regarding estimation methods, there are many methods to estimate the impact of fiscal policy on CO2 emissions such as Granger causality and ARDL (Menyah, 2010); GMM regression method (Omri, 2013); Johansen Fissher, coaffiliated Pedroni, FMOLS and dynamic OLSD (Rehmand and Rasid, 2017); FMOLS and DOLS (Sevgi and Betul, 2019) On that basis, along with data limitations, the NCS model used in the thesis to estimate the impact of financial policies on the green economy in Vietnam is the usual least squares model Where the dependent variable is CO2 emissions, the independent variable is economic growth, environmental protection tax, trade openness, population and energy consumption 10 CHAPTER INTERNATIONAL EXPERIENCES IN FINANCIAL POLICIES TOWARDS GREEN ECONOMY 2.1 International experiences in taxes policies towards a green economy 2.1.1 Experiences of Japan 2.1.1.1 Japan's revenue policies towards green economy a Carbon tax policy Carbon tax is levied on the import or extraction of fossil fuels – crude oil, natural gas and coal Carbon tax is applied differently to various kinds of fuels and depends on the CO2 content In the first stage, the tax is calculated at 1/3 of 289 yen/ton CO2 and then gradually increased over the course of years, reaching a full tax rate of 289 yen/ton CO2 in April 2016 b Energy tax policy To limit the use of fossil energy and promote the use of renewable energy, Japan launched a tax project called Feed-in-taiffs on July 1, 2012 2.1.1.2 Outcomes and lessons learned In terms of economic effects, Japan's carbon tax policy has helped increase tax revenue, from $500 million in 2012 to $2.18 billion in 2015 Environmentally, a carbon tax has an effect on reducing greenhouse gas emissions, but the impact is still small (Lee et al., 2012) The introduction of an energy tax has encouraged renewable energy companies to invest in Japan Some problems exist The application of a carbon tax in Japan faces challenges from business objections, when businesses believe that carbon taxes increase energy prices, hinder business innovation, and thus affect the environment affect the competitiveness of enterprises In addition, Japan's carbon tax has also been criticized, saying that the revenue from the carbon tax is not transparent and lacks clarity, especially when energy prices increase rapidly after the closure of factories nuclear power plant after the disaster in 2011 (Carl and Fedor, 2016) Lesson learned The introduction of a carbon tax with a low tax rate does not have much impact on the green economy Therefore, it is necessary to have a plan to increase the carbon tax specifically, for a long enough time for businesses to adjust their business strategies towards a green economy To achieve the goal of a green economy, it is necessary to simultaneously apply tax policies such as carbon tax, energy tax, etc The proceeds from the carbon tax should be partly dedicated to offsetting the financial burden that low-income households have to bear with the introduction of a carbon tax 2.1.2 Experiences of China 2.1.2.1 China's revenue policies towards green economy a Resource tax According to the provisions of the Law on Natural Resources Tax, all entities and individuals exploiting taxable resources in China's territory and other seas under China's jurisdiction, as resource tax payers, muntally friendly projects To develop the green bond market, China also has its own preferential policies 14 Outcomes: Currently China's green bond market has made rapid development with breakthroughs manifested in the innovation of various financial products b Experiences of India Currently, India is one of the 10 largest issuers of green bonds in the world and green bonds are considered an important capital mobilization tool for projects aimed at green economy 2.3.3 Green credit a Experiences of China In recent years, China is one of the countries that have made significant policy changes towards promoting green credit The Bank of China has cooperated with UNEP to develop green banking development policies, considering it as a key institution in managing green credit development b Experiences of South Korea Since 2010, South Korea has always focused on green economy It has built a financial system towards green economy, especially green credit development, which is considered a key goal in its socio-economic development strategy towards green economy 15 CHAPTER ASSESSMENT OF FINANCIAL POLICY TOWARDS GREEN ECONOMY IN VIETNAM 3.1 Overview Vietnam’s financial policy towards green economy The system of policies and laws on management of natural resources and environment has been increasingly improved The assessment of environmental impacts has received more attention The database system is gradually being built to meet the requirements of monitoring and assessing the impacts of climate change 3.2 Analyzing impacts of financial policy on Vietnam’s green economy 3.2.1 Current situation of financial policy towards green economy in Vietnam 3.2.1.1 Tax policy towards green economy a Environmental Protection tax Contents of tax policy Environmental protection towards a green economy Environmental protection tax is prescribed in the Law on Environmental Protection Tax No 57/2010/QH12, which was approved by the National Assembly on November 15, 2010 and took effect from January 1, 2012 Objects subject to environmental protection tax are gasoline, oil, grease, coal; HCFC solution; plastic bags; Herbicide; Pesticides; forest product management drugs; warehouse disinfectant (Law on Environmental Protection Tax No 57/2010/QH12) b Resource tax Taxable objects of natural resources are all kinds of resources including metallic minerals, non-metallic minerals, crude oil, natural gas, coal gas; products of natural forests, natural seafood, natural water, natural bird's nests and other resources prescribed by the National Assembly Standing Committee The royalty rate is specified in the royalty rate bracket, and is adjusted incrementally c Excise tax Tax objects are goods and services that are not really necessary for human needs, have adverse effects on human health but currently the state cannot ban consumption (alcohol, beer, drugs, etc.), and have bad impacts on the environment (tobacco, gasoline, votive paper, votive goods) (11 types of goods and types of services) The excise tax rate is adjusted according to the roadmap announced by the state and up to the present time, the excise tax rate ranges from 5-150% d Corporate income tax incentives CIT is stipulated in the Law on Corporate Income Tax No 14/2008/QH12, Law No 32/2013/QH13 amending a number of articles of the Law on CIT, Circular 78/2014/TT-BTC, Circular 151/ 2014/TT-BTC, Circular 119/2014/TT/BTC, Circular 96/2015/TT-BTC, Circular 130/2016/TT-BTC In order to encourage investment and production towards a green economy, Vietnam has had many preferential policies for businesses, including incentives in tax rates, period of tax exemption and reduction, and tax-free income e Environmental protection fee for wastewater f Environmental protection fee for solid waste 16 g Environmental protection fee for mineral extraction h Mining license fee 3.2.1.2 Spending policy towards green economy Budget spending targets towards green economy are also interspersed in the objectives of the National Environmental Protection Strategy to 2020, with a vision to 2030 The estimate of recurrent expenditures in the state budget for environmental protection in the period 2013-2020 always ensures a share of about 1% of the total state budget expenditure and increases every year 3.2.1.3 Other financial policies towards green economy Green credit Green bonds Carbon credit market 3.2.2 Some achievements of the implementation of financial policies towards green 3.2.2.1 Some achievements of the implementation of revenue policies towards green economy in Vietnam Economic achievements: Environmental protection tax reasonably encourages the social contribution to the state budget; The impact of tax policy on the contribution of the mining industry to economic growth: The number of businesses investing in environmental protection Environmental achievements: Tax policy affects exploitation and use of natural resources; Impacts on the structure of resource use; Impacts on greenhouse gas emissions Social achievements: Contributing to raising the awareness of environmental protection of the whole society 3.2.2.2 Somse achievements of budget spending toward green economy In the period of 2013-2020, budget spending on environmental protection has basically met the task of environmental protection towards green economy In terms of environment, environmental pollution has been prevented and treated in urgent areas, focusing on treatment of water source pollution, where epidemics arise; solid waste treatment in urban areas, industrial parks and concentrated residential areas; control the production, import and use of chemicals and pesticides; control the import of scrap, used machinery and equipment 3.2.2.3 Some achievements of other financial policy toward green economy Green credit outstanding has grown steadily over the years In terms of structure, green credit loans mainly focus on green agriculture (accounting for 46%), renewable energy, and clean energy (15%), sustainable water management in urban areas and agriculture (11%), sustainable forestry (5%) 3.2.2.4 Some issues raised in the implementation of financial policies towards a green economy in Vietnam Firstly, the tax and fee policies towards a green economy are not synchronized and not strong enough to effectively regulate the behavior of actors in the economy towards green production and consumption Second, the current general financial policies on buying, selling and using different types of carbon credits are inadequate, especially for carbon credits on the 17 voluntary market and market instruments on carbon credits GHG emission reduction, green growth in potential fields also has a gap, accordingly, it is necessary to consider and select appropriate actions to implement Third, at present, there are no regulations on the use of revenues from environmental protection for specific spending purposes, which are being harmonized according to the State Budget Law and approved by the National Assembly every year Fourth, there is a lack of synchronization on green criteria, the criteria for green projects are still unclear, the guidance on the list of green industries and fields is still general, there are no specific criteria for credit institutions to base themselves on selection, appraisal, assessment and monitoring when implementing green credit Fifth, capital to implement financial market tools towards a green economy is still limited 3.3 Estimating the impact of financial policy on Vietnam’s green economy On the basis of theoretical research, literature review, quantitative limitation and model for estimating the impact of financial policy on the green economy presented in section (1.4), the model for estimating the impact of The financial policy towards green economy of Vietnam is built based on the research of Douglas and Thomas (1995) and Morley (2012) and rewritten as follows: LnCO2 = b0 + b1lnGDP + b2lnTrade + b4 lnPop + b5 lnPE + b6Tax (3.3) in there, The dependent variable is CO2 – CO2 emissions in Vietnam, this variable is taken logarithmic, The independent variables include: GDP – Vietnam's economic growth, based on fixed prices in 2020; Trade – Vietnam's trade openness; Pop – Population of Vietnam; PE – energy consumption All these independent variables are logarithmic The last independent variable is Tax – tax Research data for the negative variables on environmental protection fees and taxes is from 1986-2020, so there are 35 observations As for the environmental protection fee and tax variable, there are only data from 2000-2020, so this variable has 20 observations, therefore, when estimating the number of observations model for the estimated sample, there are only 20 observations The estimated results show that an increase in environmental protection tax has an impact on CO2 emissions, although this number is not much in absolute numbers, but the negative sign shows that an increase of 1% of environmental protection tax has an impact of reducing emissions by 0.122% CO2, and is statistically significant In fact, there are other factors that the model has not yet quantified 18 CHAPTER LESSONS FOR VIETNAM AND MEASURES TO IMPROVE FINANCIAL POLICIES TOWARDS GREEN ECONOMY IN VIETNAM 4.1 Vietnam's green economy targets by 2030 Decision 622/QD-TTg of the Prime Minister on the National Action Plan for the Implementation of the 2030 Agenda towards Sustainable Economic Development, dated May 10, 2017 has included orientations and goals development of Vietnam's green economy to 2030 4.1.1 Overall objectives 4.1.2 Specific targets 4.2 Lessons for Vietnam 4.2.1 Lessons on revenue policy Tax policy is an effective tool to promote green economy Diversify and increase the use of tax policy tools in promoting production towards green economy Ensuring uniformity in the formulation and implementation of taxes Selecting tax tools suitable to the conditions of the economy Tax revenue towards green economy is used for environmental related tasks towards green economy Policies need to be studied and assessed carefully 4.2.2 Lessons on spending policy Increasing state budget spending on the environment towards green economy Increase investment spending to encourage energy saving and environmental protection State budget expenditure acts as a primer to encourage and promote other economic sectors to invest in the green economy 4.2.3 Lessons on other financial policies Developing green credit with a focus on the government and major financial institutions Raise environmental awareness for the whole society Attach importance to the financial market development policy in order to facilitate the attraction of capital sources towards green economy A clear, transparent and predictable regulatory framework Promulgate incentive and preferential policies Encourage the development of overseas green bond market 4.3 Measures to improve financial policy towards green economy in Vietnam 4.3.1 Resolutions on revenue policies towards green economy 4.3.1.1 Reviewing the tax legal system towards green economy a Basis of recommendations: International experience base and current environmental protection tax system of Vietnam b Suggested content The Government continues to review, amend and supplement the current system of tax and fee policies, determine the appropriate tax rates for taxable or preferential goods to ensure the uniformity of the tax and tax incentives and 19 transparency of tax incentives to be realistic and comprehensive enough to ensure the good implementation of the goal towards a green economy c Implementing agencies The review of environmental protection taxes include environmental protection tax, resource tax; SCT, import-export tax, environmental protection fees are the cooperation between the Ministry of Finance and the Ministry of Natural Resources and Environment In which, the two ministries coordinate to review, amend and finalize these tax laws, thereby submitting them to the Government and the National Assembly for approval 4.3.1.2 Researching the possibility of developing and applying carbon tax a Basis of recommendations Experience of other countries shows that the application of a tax on CO2 emissions can make businesses focus on protecting the environment, using modern technology to reduce emissions to the environment b Suggested content The tax base can be calculated based on the volume of input products and the volume of emissions However, in order to meet the objective of the environmental protection tax, which is to protect the environment as a whole, the carbon tax should be determined on the CO2 emissions of the fuel c Implementing agencies The Ministry of Natural Resources and Environment develops a policy to collect taxes or fees for CO2 emissions At the same time, the implementation of management and implementation of toll collection from CO2 emissions is carried out by the Departments of Natural Resources and Environment or the Departments of Finance in the localities 4.3.2 Solutions on spending policy towards a green economy a Basis of recommendations In the past time, although the annual budget for environmental protection has been arranged with an annual scale not lower than 1% of the total state budget expenditure b Suggested content It is necessary to increase the mobilization of revenue through environmental protection taxes, transportation costs, excise taxes and royalties Diversify domestic and foreign investment capital sources (mobilizing financial resources through investment activities of enterprises of all economic sectors; mobilizing financial resources through financial institutions, system of commercial banks, stock market, such as the formation and circulation of carbon and green bond markets) c Implementing agencies In developing a mechanism for public-private partnership models to develop environmental protection projects, the Ministry of Finance will coordinate with the Ministry of Planning and Investment to carry out this task In order to properly implement the principles and order of green public procurement, the Ministry of Finance is responsible for developing a legal framework for green public procurement However, for these solutions to be effectively implemented, it is necessary to raise the society's awareness of green products, environmental protection and green 20 economy This work is carried out by the Ministry of Information and Communications, the media units 4.3.3 Solutions to other financial policies towards a green economy 4.3.3.1 Carbon credit market a Basis of recommendations According to international experience and lessons on carbon credits of the EU and South Korea, it shows that the carbon credit system makes a significant contribution to reducing CO2 emissions, while in Vietnam, there is currently no construction of a carbon credit system, building and forming a CO2 credit system b Suggested content Step by step building a carbon credit system in Vietnam in which initial pilot application should be limited to a few high-emissions, measurable, and monitorable manufacturing industries such as energy, agriculture, forestry, land use c Implementing agencies The Ministry of Natural Resources and Environment develops a legal framework for a carbon credit system; Departments of Natural Resources and Environment in the localities carry out the implementation of the management of the carbon credit system The Ministry of Finance promotes the formation of a carbon credit trading market 4.3.3.2 Green bonds a Basis of recommendations The analysis of international experience in Chapter shows that green bonds provide financial resources for countries to implement clean energy projects, reduce impacts and adapt to climate change b Suggested content The most important solution to develop green bonds is to raise the awareness of businesses and people to create a premise for the formation and development of green bonds It is necessary to have a legal basis for the development of green bonds, such as directives and guiding documents related to green bonds Vietnam needs to coordinate with world organizations such as World bank, UNEP, GIZ for advice in the process of issuing and developing green bonds c Implementing agencies The Ministry of Finance develops legal regulations for the issuance and exchange of green bonds The Securities and Exchange Commission and the stock exchanges promote the formation of the bond market and the green bond market 4.3.3.3 Green credit a Basis of recommendations: stemming from the limitations of Vietnam's green credit market b Suggested content It is necessary to develop a synchronous plan from mechanisms and policies to specific green credit programs, as well as to have an incentive mechanism to increase capital and capacity c Implementing agencies The State Bank shall develop regulations and manuals for green credit activities; develop an incentive mechanism to promote green credit Commercial 21 banks develop and issue a risk assessment system during the appraisal of green projects 4.3.4 Some other complementary solutions to move towards green economy In addition to financial policy solutions towards a green economy, in order for the process of moving towards a green economy to be successful, Vietnam needs to focus on coordinating with other policies including structural transformation, use energy more efficiently and improve propaganda 22 CONCLUSION In the recent period, Vietnam has not only experienced faster and more stable economic growth, the quality of growth has gradually improved, and there have been positive changes towards green economy However, the green economy in Vietnam still has to face many challenges such as many related strategies, plans, programs and projects with overlapping The transition to a green economy is still slow Production technology is still backward compared to the world Pollution in industrial parks and economic zones has not been completely solved Without strong and targeted interventions that integrate environmental and climate issues in the prices of goods and services, unsustainable growth will be encouraged Fiscal policy, including revenue policy, expenditure policy, and other financial policies are key tools to help policymakers overcome market failures On the basis of research on the green economy and financial policies towards a green economy in both theory and practice, the PhD thesis has shown: Concept and characteristics of green economy; Financial policies towards green economy; Economic, environmental and social impacts of fiscal policy on green economy; Synthesizing the experiences of countries in using financial policies towards green economy, analyzing the effects or results obtained from the financial policies that countries use on the green economy of countries; Features of green economy and financial policies towards green economy in Vietnam; Analyzing the impacts of financial policies green economy in Vietnam; Building a models and use reliable statistics from domestic and foreign organizations to analyze the impact of environmental protection financial policies on Vietnam's CO2 emission rate Drawing lessons for Vietnam, issues and their causes of financial policies towards green economy in Vietnam Proposing to improve Vietnam's financial policies affecting the progress of the economy towards a green economy: VAT, natural resources tax, CIT incentives, and increased budget spending on environmental protection, proposals for developing green credits and green bonds as well as carbon credit transaction market In particular, the thesis proposes a carbon tax collection plan aimed at influencing the behavior of producers and consumers, helping to restructure the production industry in an environmentally friendly manner However, in order effectively developing financial policies in particular and economic policies in general, it is necessary to promote research and study by ministries and departments on how to implement these policies from other countries to build a roadmap in line with Vietnam's reality and international commitments 23 PUBLICATION Tran Thi Quynh Hoa, Environmental protection tax policy towards sustainable development in selected countries, Review of Finance, No 739, 10/2020, page 39-41, ISSN: 2615-8973 (Co-author) Tran Thi Quynh Hoa, Financial policies toward green economy: Asian countries’ experiences, Review of Finance, No 743, 12/2020, page 24-27, ISSN: 2615-8973 (Co-author) Tran Thi Quynh Hoa, Public expenditure on green growth, Financial Instruments for Green Growth in Vietnam, Financial Publishing House, 2020, page 151-187 (co-author)  ... 78/2014 /TT- BTC, Circular 151/ 2014 /TT- BTC, Circular 119/2014 /TT/ BTC, Circular 96/2015 /TT- BTC, Circular 130/2016 /TT- BTC In order to encourage investment and production towards a green economy, Vietnam... 18 CHAPTER LESSONS FOR VIETNAM AND MEASURES TO IMPROVE FINANCIAL POLICIES TOWARDS GREEN ECONOMY IN VIETNAM 4.1 Vietnam's green economy targets by 2030 Decision 622/QD-TTg of the Prime Minister... financial policies on Vietnam's CO2 emission rate Drawing lessons for Vietnam, issues and their causes of financial policies towards green economy in Vietnam Proposing to improve Vietnam's financial policies