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Contents DEFINICATION OF GREEN ECONOMY GREEN ECONOMY, THE PATH OF SUSTAINABLE DEVELOPMENT IN VIETNAM Practice about Green Economy in Vietnam’s Economy Opportunities for green economy in Vietnam Challenges for green economy in Vietnam POLICIES OF VIETNAM’S GOVERNMENT 13 TÀI LIỆU THAM KHẢO 15 DEFINICATION OF GREEN ECONOMY Over the past 20 years, rate of growth has increased 80% of GDP per capita in developing countries, and the number of extreme poverty worldwide has dropped from 1.9 billion to 836 million (World Bank, 2012) Growth has created great benefits for the world, but it also has negative effects on the natural resource and the environment The global forest area has lost about 5.2 million hectares a year in the period 2000-2010, and the water resources is scarce (World Bank, 2012) Roughly 60% of the world’s ecosystem services are being degraded or used unsustainably, including fresh water, capture fisheries, air and water purification, the regulation of regional and local climate, natural hazards and pets In the world, around 1.3 billion of people live in vulnerable lands, millions of people affected by natural disasters and communities are weaker due to the effects of climate change (UNDP, 2015) The cause is the worldwide economic growth over time has been based primarily on the exploitation of natural resource without consider regenerating, making a serious consequences for the ecosystem in general This situation makes governments quickly find solutions to economic development in the direction of preventing and addressing these global challenges Therefore, sustainable development has become a top concern of many countries in the world, including Vietnam Much research have been done to find out the causes and solutions that help countries face these risks All research confirm that new models of growth driven by greening the economy can ensure a prosperous, stable and sustainable future Thus, green economy is becoming a global trend towards sustainable development A number of definications have recently been put below: UNEP defines a green economy as one that result in improved human wellbeing and social equity, while signficantly reducing enviromental risks and ecological scarcities In its simplest expression, a green economy is lowcarbon, resource efficient, and socially inclusive (UNEP, 2011) Green Economy Coalition (GEC) determines “our vision is one of a resilient economy that provides a better quality of life for all within the ecological limits of the planet Janez Potocnik, European Commissioner for the Enviroment says, “The green economy is just as much about economic growth, poverty eradication and social justice as it is about the enviroment” So, we can simply define a green economy is approaching from many angles, but the main objective is to develop the economy, protect environment and insure social policy Considered to be one of the lowest ranked countries in Southeast Asia in terms of environmental stability from a study conducted by the Yale University in 2006 Vietnam also has two cities in the list of six cities with the most serious air pollution in the world In addition, the risk of exhausting natural resource in Vietnam is also alarming With the current speed of exploitation, even if there is “Forest is gold, ocean is silver, oceans of money”, we also will not resolve it Therefore, in the resolution from the 11th National Congress of the Communist Party, an our mission in the period 2010-2015 is : “Reform the growth model and restructure the economy from the direction of developed width to develop rationally between width and depth, improve the quality and efficiency of the economy, ensure the rapid and sustainable development” Then, on September 25th, 2012, the Government approved the “National Strategy about Green Growth”, propose clearly “Green growth is an important part of sustainable development, ensuring rapid, efficient, sustainable economic growth, and important contribution to the implementation of the National Strategy on Climate change” The policy of the Party Committee and Goverment promotes strongly the process of restructuring economic; opens opportunitiy for Vietnam to build a model of sustainable development in the context of global change, green economy This is an opportunity for Vietnam to develop, but also proposes many difficulties and challenges to catch up and integrate while a wave of green economy is spreading around the world today GREEN ECONOMY, THE PATH OF SUSTAINABLE DEVELOPMENT IN VIETNAM Practice about Green Economy in Vietnam’s Economy In recent years, Vietnam's economy has achieved important achievements, but the development is not sustainable 8.00 7.00 6.21 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2010 2011 2012 2013 2014 2015 2016 GDP growth rate of Vietnam in 2010-2016 (Source: World Bank) In 2012-2015, GDP growth rate steadily increase; in 2015, GDP growth rate gains 6.68% However, it decrease to 6.21% After thirty-year innovation, Vietnam’s structure economy has shifted from being dependent on agriculture to combining agriculture, industry and services Economics 1985 1995 2005 2015 Agro-Forestry-Fisheries 40.2% 27.2% 20.97% 17.00% Industry and Construction 27.4% 28.80% 41.02% 33.25% Service industry 32.4% 44.00% 38.01% 39.75% Vietnam’s structure economy in 1985-2015 (Source: General Statistics Office of Vietnam) Economic development in our country is still based on the exploitation of natural resources, low productivity; process of producing, consumption models also use a lot of energy, raw materials and emission much waste Much natural resource are exhausted, wasteful and inefficient The natural environment in many places is severely damaged, polluted and degraded to an alarming level Therefore, accessing and building a green economy is an urgent need and a reality of sustainable development According to a report by the Intergovernmental Panel on Climate Change, global average temperature and mean sea level rise promply over the past 100 years, especially in the last 25 years In Vietnam, in the last 50 years the average temperature has increased by 0.5 - 0.7 0C, sea level has risen about 20 cm The phenomenon of El Nino, La Nina increasingly powerful Climate change has made natural disasters, especially storms, floods and droughts more severe Look at the climate change scenarios, in the end of the 21 st century, the annual average temperature in our country increases by - 0C, total annual rainfall and rainfall of rainy season increase, while rainfall of dry season decreases, sea level may rise about 75 cm to m in compared to the period 1980-1999 If the sea level rises m, there will be about 40% of Mekong River Delta area, 11% of Red River Delta area and 3% of the other coastal areas will be inundated, in which Ho Chi Minh City will be inundated over 20% of the area; about 10 - 12% of the population directly affected and lost about 10% of GDP The impact of climate change on our country is very serious, the risk exists for the goal of poverty reduction, the implementation of the millennium goals and the sustainable development of the country Climate change seriously threatens food security and agricultural development: Shrinking agricultural land, especially a large part of coastal plain, the Red River Delta, the Mekong River Delta face acute fresh water shortage due to an increase in sea level; impacting greatly on the productivity of crops, the season of planting; increasing the risk of pests and diseases; expanding adaptation time of tropical plants and shranking adaptation time subtropical plants; influencing on reproduction, growth; increasing disease, infectious epidemic of cattle and poultry With a basic orientation to become a modern industrialized country by 2020, production and energy consumption will intensify especially in industry, transport and development of urban sectors, which increases Vietnam's greenhouse gas emissions This be against the international trend that requires that every country, independent on developed or developing countries, reduce greenhouse gas emissions in order to take part in process protecting the global climate system Green growth is not replace for traditional growth but it need to resolve well a relationship between economy and environment to achieve sustainable development Therefore, it is necessary to implement effective growth policies in combination with appropriate environmental policies Opportunities for green economy in Vietnam International trend is turning to green economy After the global financial crisis of 2007-2008, green growth or green economy is becoming a top concern of all nations as a motivation for economy’s development, economy’s recovery and an instrument for sustainable development This theme is repeated many times in regional and international forums and is being seriously considered by governments In fact, green growth has shown a role in helping countries in economic growth, social development and especially environmental protection goals, adaptation with the climate change Many countries use this model, such as Germany, France, South Korea, China, the United States, etc., and have achieved great results in economic growth, environmental protection and emission reduction In Southeast Asian countries, ASEAN also issued a common statement (July 2010) emphasizing that international partners and organizations have an important role in supporting ASEAN closer to the development pattern “Reduce Carbon – Green Growth” ASEAN will tighten its energy cooperation with East Asia, including a great deal of emphasis on Clean Development Mechanism (CDM), nuclear energy development, in order to mitigate the negative effects of climate change At the global level, the first Global Green Growth Forum (3GF) was held in Copenhagen, Denmark, on October 11-12 This is an event organized by the Danish Government with the co-initiative of the governments of Korea and Mexico 3GF is organized with the primary objective of promoting green growth through publicprivate partnerships between governments and businesses At present, United Nations Organization have a number of initiatives to promote the green economy and those are achieving good results such as: Climate Smart Agriculture (by FAO), Clean Technology Investment (WB), Green Jobs (ILO), Green Economy (UNEP), Education for Sustainable Development (UNESCO), Health Sector Greening (WHO), Green Technology Market (WIPO), Standards Green Information Technology, Green Energy Solutions (UN WTO), Clean Production and Efficient Resource (UNEP and UNIDO), Cities and Climate Change (UN-HABITAT), Ship Recycling (IMO), Climate Smart Agriculture (CSA), with an integrated approach, can help achieve both food security and climate change responses by addressing three objectives: improve quantity, quality; adapta for climate change; reduce climate change The 5.3-million-euro CSA project funded by the European Commission and FAO in three countries, Malawi, Vietnam and Zambia, aims to transfer into a “climate smart” approach in agriculture Ministry of Agriculture and Rural Development has received and implemented that project in three northern mountainous provinces as Dien Bien, Son La and Yen Bai from 2012-2015 Many new farming techniques adapted to climate change have been transmitted to farmers such as micro-organic fertilizer, system of rice intensification (SRI), minimize and cover land, plant grass to make fodder and soil fixation Vietnam’s Government also attend greatly to this problem The legal system and policies for environmental protection and sustainable development are more and more increasingly completed creating legal foundation for implementing green economy In addition to the Law on environmental protection (2005), Vietnam has enacted other laws relating to environmental protection including Law and Forest Protection and Development (2004), Law on Chemical (2007), Law on Biodiversity (2008), Mineral Law (2010), Law on Energy Efficiency and Conservation (2010), Law on Environmental Protection Tax (2010) and the Law on Natural Resource Tax (2009) Besides Vietnam Green Growth Strategy, Vietnam also issued the National Strategy on Climate Change (2010), Resolution of the Party Central Committee on Climate Change (2013) and the National Program for developing the Environmental Industry (2008) Vietnam has strengths in natural products, resources, population and society the best things for the green economy Develop green agriculture and become main country which ensure food security for the world in future Diversify the economy, based on the diversity of topography, climate and resources, ecosystems to exploit the strengths of natural capital Grow tourism, especial eco-tourism with many unique and diverse natural landscapes Tourism has so far brought great benefits to the economy, but it has also contributed to environmental degradation, especially biodiversity deterioration Thus, the concept of “sustainable development” – development which meets the needs of the present without compromising the ability of future generations to meet their own needs – must be factored into tourism development This consideration is reflected in the term “ecotourism,” which is referred to variously as ecological or environmental tourism, nature or green tourism, sustainable or responsible tourism Coral reef ecosystems are already attractive to ecotourists, with resorts established at Cat Ba Island, Co To, Bach Long Vi, Con Co, Hon Son TraHai Van, Con Dao, Phu Quoc, and islands in Khanh Hoa province Divers can observe colorful coral reefs with a wide range of flora and fauna Coral reef samples are exploited for tourist souvenirs in the provinces of Quang Ninh, Nha Trang, and Con Dao Species composition is rich: about 95 species of 35 genera in Northern coastal areas and 255 species of 69 genera in Southern coastal areas These include 180 phytoplankton, 97 zooplankton, 70 seaweed, 78 polychaeta, 208 mollusk, 76 crustacean, and 157 fish species The strong economic integration over the past decade gives Vietnam an opportunity to transfer environmentally-friend technology platform towards green growth Vietnam's economy has been growing steadily in the past few years and has created internal strengths for a new development trend In recent years, our country has been rising as a leading agricultural exporter and an attractive foreign investment destination Capitalizing on its gradual integration into the global trade and investment system, Vietnam has been transforming itself into a more market-oriented economy Reforms have included partial privatization of state-owned enterprises, liberalization of the trade regime, and increasing recognition of private property rights The economy has registered annual rates of growth averaging about percent over the past five years GDP’s increase has become a step for Vietnam to take advantage of this support in green economy development Vietnam's labor force is in the “golden population” period The Vietnamese people have tradition of hard-working, simple living and harmony with nature Collect management skills to develop high quality human resources associated with modern science and technology as well as the main source of green growth 57,000,000 56,000,000 55,930,177 55,000,000 54,000,000 53,000,000 52,000,000 51,000,000 50,000,000 49,000,000 48,000,000 2010 2011 2012 2013 2014 2015 2016 Total labor force of Vietnam in 2010-2016 (Source: World Bank) Labor force have increased year by year and show no sign of decline Total labor gains 55,9 million in 2016 Those are advantage in growth green economy and when this strategy is implemented, thousands of green jobs will be created As a result, the number of employees increases will be a big advantage for Vietnam The potential for renewable energy in Vietnam is quite large Small hydropower in Vietnam is huge Wind power potential: With more than 3,000 km of seasie and being in the tropical monsoon climate, Vietnam has many advantages in developing wind energy At present, some wind power projects have been implemented in some southern central provinces (Binh Thuan, Ninh Thuan) and in some island Potential Biomass: mainly from wood, agricultural waste, livestock waste, urban waste and organic waste etc are available in Vietnam Biomass energy in Vietnam is very large and varied Now, it is estimated that about 60 million tons of biomass are generated each year from waste, of which nearly 40% are used for energy purposes Solar potential: Vietnam has the total number of sunshine hours in the year ranging from 1,400 to 3,000 hours, the average annual solar radiation is about 230-250 kcal/ cm2/ day toward increasing south This figure shows that Vietnam has good potential for solar energy Challenges for green economy in Vietnam People's intellectual standard is low in general, our country is lagging behind many countries after many years of lasting and fierce war, consequences are not small So, we need a long time and large resources to overcome But if you know how to reorganize systematically and smartly, Vietnam has the opportunity to shorten the development gap in a very long time, by non-traditional Number of students of universities and colleges of the country (millions of people) 2.16 2.21 2.18 2.36 2.12 2.06 1.76 2010 2011 2012 2013 2014 2015 2016 (Source: General Statistics Office of Vietnam) A number of universities and colleges tend to decrease in Vietnam It deduct to 1.76 million in 2016, lower than 2015 a quantum that is 0.32 millions of people In addition, Vietnam also faces the problem of brain drain, an extremely worrying issue now Vietnam is one of the most vulnerable countries to brain drain, a complex phenomenon in which young, talented people are “fleeing the nation” and consequently, not returning to their home country But why Vietnam? To answer this, let’s all take a more in-depth look at this ongoing trend of the 21st century During the last visit to Ho Chi Minh City, at a meeting of the Young Southeast Asian Leaders Initiative, the U.S president, Mr Barack Obama said: “The places that lose talent, it’s where there’s a lot of corruption” According to the New York Times: “Development agencies and businesses say they must pay bribes to Vietnamese officials anywhere from 20 percent to 50 percent of the cost of a project to get it completed” To put it bluntly, corruption and lack of transparency have long to be the root causes to exacerbate the whole system Being discouraged from paying bribes and unfairly treated, Vietnamese workers emigrate and seek for better opportunities, where they not have to weigh between chances of promotion, higher profits against maintaining their own dignity Another significant reason was also mentioned, which was the poor educational system In 2008, Harvard researchers reported that Vietnam's highereducation system was in "crisis", and that it lagged far behind those of Thailand, Malaysia and the Philippines, to say nothing of those in China, Taiwan and South Korea Old and outdated technology is still popular, labor 10 productivity is low, competitiveness is not high; technologies of renewable energy production are not developed; the level of science and technology and the efficiency of using resources is low Natural resources are severely degraded due to the modest growth of the scale, the use of fossil fuels, level of new technology that reduce material consumption is low, resource management is limited Along with the impressive economic growth, the intensity of use of some basic natural resources such as land, water, and energy to produce one unit of economic output in Vietnam tended to decrease during 1990– 2007 Intensities of resource use in 1990-2007 The most serious pollution problems arise in and around Ho Chi Minh City and Hanoi By sector, the most serious water pollution – measured as biological oxygen demand – emanates from the production of textiles and food Total suspended solids are mainly a product of the furniture and food industries The pressures on natural resources – agricultural land, natural forests, fisheries, and mineral resources – are also increasing This development is also threatening biodiversity in a country with globally significant amounts of it, as nearly 10 percent of the world’s mammal and bird species are found in Vietnam The legal system has to continue to build completely, so it is not synchronous, suitable with the trend of globalization and towards green growth The organizational 11 system and management apparatus are still fragmented, not compatible with the development of the country's integration in the process of integration Although the development of the green economy has been attended by the international community, there are still a number of objections They said that it only costs country’s material while not produce adequate benefits There is even a view that green economy is a luxury, only rich countries can afford and even this is a conspiracy of developed countries to hold on to developing countries Challenges for Vietnamese export products as countries have imposed higher environmental standards Along with Vietnam, many countries have moved quickly to the green economy and the requirements for imported goods are also higher The ability of Vietnamese businesses to meet their requirements will be more difficult due to the foundation and conditions of production in Vietnam are limited Clean energy industries such as nuclear power have not yet developed In addition, many industries supporting environmental issues, environmental services, recycling industry are weak Installing wind turbines is challenging in Vietnam and the country relies heavily on imported equipment It is obvious that costs are a major deterrent to wind energy projects The lifestyle and consumption patterns of a part of the people are wasted, resource-depleted, unfriendly and in harmony with nature As one of the few countries most severely affected by climate change, disaster vulnerability and climate change are increasing The "brown" economy is taking a large share of the economy A looming middle-income trap Financial resource is one of the fundamental barriers to green growth in Vietnam 90% of enterprises in Vietnam are small and medium (SME), of which technology investment only accounts for 1% -3% total revenue annually Therefore, the Government should have clear policies to support business making investment in clean technology, especially tax policy, funding incentive or interest rate support The World Bank said that the financial mechanism should be more clearly defined in the Vietnam Green Growth Strategy, especially incentives for the private sector because there should be more involvement of this sector in this strategy 12 POLICIES OF VIETNAM’S GOVERNMENT The Government of Viet Nam has recently joined and ratified the United Nations Framework Convention on Climate Change and the Kyoto Protocol, and at the same time instructed step by step to improve by-law documents and create legal framework for the prevention work and natural disasters mitigation, adaptation to climate change In December 2008, the National Target Program to Respond to Climate Change was approved This is one of the important efforts of the Government with the support of the international donor community in responding to climate change in Vietnam With the concern of the Party and Government, responding to climate change in our country has achieved some initial successes recognized internationally In order to respond effectively to climate change and sustainable development, a national climate change strategy with a centuries-old vision as a basis for strategies, plans and projects is needed for our country in the present context The government set out the following tasks: Reduce the intensity of greenhouse gas emissions and promote the use of clean energy and renewable energy; Green production: Do a “clean industrialization” strategy through reviewing, adjusting existing sectoral plans, utilizing thriftily and efficiently resource, encouraging green industry and green agriculture to develope with industry structure, technology, equipment which ensure “environmentally friendly”, investment to develope natural capital; prevent actively and treat pollution Green the lifestyle and promote sustainable consumption: Combine beautiful traditional lifestyle with modern tools to create a comfortable, high quality life, which bearing the national identity for modern society in Vietnam Implement fast, sustainable urbanization, maintain a harmonious lifestyle with nature in rural areas and create sustainable consumption habit in the context of integration with the world To implement these tasks, Government exposed particular policies: a) Communicate, raise awareness, encourage support to implementation b) Improve the efficiency and effectiveness of energy use, reduce the energy consumption in production activities, transportation and trade c) Change the fuel structure in industry and transportation 13 d) Promote effective exploitation and increase the proportion of renewable energy sources, new energy in energy production and consumption e) Reduce greenhouse gas emissions through develope organic agriculture and improve the competitiveness of agricultural production f) Review and adjust the plans for production field, gradually limit the development of economic sectors that generate large amount of waste, pollute and the environment collapse while creating conditions for the development of new green industries g) Use thriftly and efficiently natural resources h) Promote fast-growing green industries to create jobs, raise income and enrich the natural capital i) Develop a sustainable infrastructure: Invest to upgrade traffic system and network, develop electricity to ensure that supply enough electric demand, improve the electricity supply network, invest Irrigation Systems of Oman with modern equipment, expand orchards, produce concentrately salt, control well flooding j) Innovate technology, wide application of cleaner production k) Urbanize sustainably l) Build new rural model with lifestyles in harmony with the environment m) Promote sustainable consumption and build green lifestyles n) Mobilize resource to implement green growth strategies o) Training and develope human resource p) Research and develope science, technology, issue the system of economic, technical standards as well as data on green growth q) International cooperation To turn the brown economy into a green economy, we have to rearrange the economy This process will be forced to slow down growth or slow down itself in the short run Therefore, there should be a harmonious shift, otherwise Vietnam will the social problems are caused by this transition The country's development experience shows that the transition to a green economy creates enormous potential for sustainable development and poverty reduction Therefore, the green growth orientation for Vietnam is implemented as soon as possible Because it is not only related to the greening of production but also impact the consciousness of the people, 14 greening the way of life and consumption However, the implementation of green growth must be consistent with each stage of development of the country, require real innovation in the mindset of development and drastic in concrete action 15 TÀI LIỆU THAM KHẢO Foster Vietnam (n.d) Discussing “Brain drain” in Vietnam PGS, TS Hồ Thúy Ngọc (2016) Khai thác tài sản trí tuệ đến phát triển kinh tế xanh Việt Nam, NXB ĐH Kinh tế Quốc dân Millennium Ecosystem Assessment (2005) Ecosystems and human well-being Synthesis United States of American Thủ tướng Nguyễn Tấn Dũng (2011) Quyết định số 2139/QĐ-TTg, ngày 05/12/2011 phê duyệt Chiến lược quốc gia Biến đổi khí hậu Việt Nam Thủ tướng Nguyễn Tấn Dũng (2013) Quyết định số 339/QĐ-TTg, ngày 19/2/2013 phê duyệt Đề án tổng thể Tái cấu kinh tế gắn với chuyển đổi mơ hình tăng trưởng theo hướng nâng cao chất lượng, hiệu lực cạnh tranh giai đoạn 2013-2020 Việt Nam Thủ tướng Nguyễn Tấn Dũng (2012) Quyết định số 1393/QĐ-TTg, ngày 25/9/2012 phê duyệt Chiến lược quốc gia Tăng trưởng xanh thời kỳ 20112020 tầm nhìn đến năm 2050 Việt Nam Trần Thọ Đạt & Đinh Đức Trường (2013) Research: Green Growth Towards Sustainable Development in Vietnam, Việt Nam Trương Quang Học & Hoàng Văn Thắng (n.d) Kinh tế xanh, đường phát triển bền vững bối cảnh biến đổi toàn cầu, Đại học Quốc gia Hà Nội, trung tâm Nghiên cứu Tài nguyên Môi trường UNEP (2011) Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication 10 Vũ Thị Hoài Thu (2017, tháng 4) Tăng trưởng xanh bối cảnh phát triển bền vững Việt Nam Nghiên cứu kinh tế 11 World Bank (2011) Vietnam Development Report 2011: Natural Resources Management 12 Đỗ Thị Dung (2015) Nông nghiệp thơng minh với khí hậu Truy xuất từ: http://nongnghiep.vn/nong-nghiep-thong-minh-voi-khi-hau-post146815.html 13 Phan Nguyen Hong, Quan Thi Quynh Dao, Le Kim Thoa (2002) Ecotourism in Vietnam: Potntial and Reality Kyoto Review of Southeast Asia Truy xuất từ: https://kyotoreview.org/issue-2-disaster-and-rehabilitation/ecotourism-in-vietnampotential-and-reality/ 14 Index of Economic Freedom Vietnam (2017) Truy xuất từ: http://www.heritage.org/index/country/vietnam 16 ... THAM KHẢO Foster Vietnam (n.d) Discussing “Brain drain” in Vietnam PGS, TS Hồ Thúy Ngọc (2016) Khai thác tài sản trí tuệ đến phát triển kinh tế xanh Việt Nam, NXB ĐH Kinh tế Quốc dân Millennium... Green Growth Towards Sustainable Development in Vietnam, Việt Nam Trương Quang Học & Hoàng Văn Thắng (n.d) Kinh tế xanh, đường phát triển bền vững bối cảnh biến đổi toàn cầu, Đại học Quốc gia Hà... Eradication 10 Vũ Thị Hoài Thu (2017, tháng 4) Tăng trưởng xanh bối cảnh phát triển bền vững Việt Nam Nghiên cứu kinh tế 11 World Bank (2011) Vietnam Development Report 2011: Natural Resources Management