CÁC CHÍNH SÁCH CỦA CHÍNH PHỦ VIỆT NAM NHẰM ỨNG PHÓ VỚI SỰ THAY ĐỔI CỦA KHÍ HẬU NHẰM BẢO VỆ NỀN KINH TẾ: LÝ LUẬN VÀ THỰC TIỄN.Adam Smith đã đưa ra một quan sát nổi tiếng nhất trong kinh tế học, nó nói rằng: các hộ gia đình và các hãng sản xuất kinh doanh tương tác với nhau trên thị trường được dẫn dắt bởi một bàn tay vô hình để đưa họ đến những kết quả thị trường mong muốn. Tuy nhiên, kinh tế học cũng chỉ ra rằng, mặc dù thị trường làm nhiều việc tốt, nhưng thị trường không phải lúc nào cũng làm được tất cả mọi việc hiệu quả. Biến đổi khí hậu (BĐKH) là ví dụ điển hình về một dạng thất bại thị trường liên quan đến ngoại ứng, đồng thời các hoạt động giảm nhẹ BĐKH và thích ứng với BĐKH có đặc điểm của hàng hóa công cộng. Lý thuyết về ngoại ứng và hàng hóa công cộng chính là điểm khởi đầu cho các phân tích kinh tế về BĐKH. Tuy nhiên, BĐKH có một số điểm khác biệt so với các dạng thất bại thị trường khác, đòi hỏi các phân tích kinh tế đối với BĐKH phải xem xét các yếu tố này
9 FOREIGN TRADE UNIVERSITY ECONOMIC FACULTY *** ESSAY The policies of the Vietnamese government to respond to climate change in order to protect the economy: theory and practice Student’s name: Đỗ Quang Huy + 1714450012 Bùi Minh Quang + 2014450212 Class: KTEE407(GĐ1-HK1-2221).1 Lecturer: Th.s LÝ HOÀNG PHÚ Hà Nội, tháng năm 2021 FOREIGN TRADE UNIVERSITY ECONOMIC FACULTY *** ESSAY The policies of the Vietnamese government to respond to climate change in order to protect the economy: theory and practice Student’s name: Đỗ Quang Huy - 1714450012 Bùi Minh Quang - 2014450212 Class: KTEE407(GĐ1-HK1-2221).1 Lecturer: Th.s LÝ HOÀNG PHÚ Hà Nội, tháng năm 2021 TABLE OF CONTENT INTRODUCTIONS CHAPTER 1: GENERAL THEORY ON CLIMATE CHANGE 1.1 Climate change definition 1.2 Concept of climate change 1.3 Causes to climate change 1.4 Signs of climate change CHAPTER 2: THE NATURE OF CLIMATE CHANGE IN THE PUBLIC ECONOMY 2.1 THE NATURE OF CLIMATE CHANGE 10 2.1.1 Climate change is an externality 10 2.1.2 Climate change mitigation and adaption is a public good 11 2.1.3 Climate change is the biggest market failure 12 CHAPTER 3: PRACTICE OF GOVERNMENT POLICIES 3.1 SITUATION OF CLIMATE CHANGE IN VIETNAM 14 3.1.1 Impacts on Vietnam's economy and society 14 3.1.2 Loss of people, property and money due to climate change 14 3.1.3 Climate change affects the industry 15 3.2 POLICIES RESPOND TO CLIMATE CHANGE OF GOVERNMENT 18 CONCLUSION 22 REFERENCES 23 INTRODUCTION Adam Smith made the most famous observation in economics: households and firms interacting in the market are guided by an "invisible hand" that guides them to desire market outcome However, although the market does many good things, the market does not always everything efficiently Climate change is a typical example type of market failure in terms of externalities, while climate change mitigation and adaptation activities are characterized by public goods The theory of externalities and public goods is the beginning point of economic analysis about climate change However, climate change has some differences from other forms of market failure, requiring economic analysis about climate change to consider these factors As an economics student, it is essential to be aware of the relation between economic growth and climate change Therefore, with the researching of documents, reference books and the guidance of the subject lecturer, I decided to choose the topic "The policies of the Vietnamese government to respond to climate change in order to protect the economy: theory and practice” The topic helps me understand and see the right policies, solutions and directions of the government in the process of developing the country With limited practical knowledge and experience, mistakes in implementation will be inevitable, I look forward to your valuable comments and suggestions CHAPTER 1: GENERAL THEORY ON CLIMATE CHANGE 1.1 CLIMATE DEFENITION Alixop's concept of climate: the climate of a place is a specific weather regime in many years, caused by solar radiation, the characteristics of the buffer surface of the climate circulation The factors that form the climate: radiation factor, terrestrial radiation balance, atmospheric radiation balance, terrestrial-atmospheric system radiation balance, Earth thermal balance Average weather of a particular region, lasting for a long time, usually 30 years (according to WMO) including factors of temperature, humidity, precipitation, phenomena occurring in the atmosphere and many other weather factors are a state, including descriptive statistics of the climate system Meteorological factors: solar radiation, amount of cloud, barometric pressure (atmospheric pressure), wind speed and direction, air temperature, amount of water falling (precipitation), evaporation and air humidity, weather 1.2 CONCEPT OF CLIMATE CHANGE The Earth’s climate system includes the atmosphere, continents, oceans, cryosphere, and biosphere Climate processes take place in the continuous interaction of these components The time scale of the feedback in each component varies greatly Many feedback processes of physical, chemical and biochemical factors play a role in increasing climate change or limiting climate change The United Nations Framework Convention on Climate Change defines: “Climate change is the “adverse effects of climate change”, which are changes in the physical or biological environment that cause significant adverse effect on the composition, resilience or reproduction of natural and managed ecosystems or on the functioning of socio-economic systems or on the health and welfare of humans people” Earth’s climate change is the change of the climate system including the atmosphere, hydrosphere, biosphere, lithosphere at present and in the future by natural and man-made causes A change in climate caused directly or indirectly from human activity that alters the composition of the earth’s atmosphere that, together with natural climate change, has been observed over a given period of time “ (UNFCCC) Climate change is the variation in the average state of the global or regional atmosphere over time from a few decades to millions of years (IPCC 2007) These changes are caused by the dynamics of the earth , solar radiation, and impacts from human activities These changes are caused by the dynamics of the earth, solar radiation, and more recently human activity Climate change during the twentieth century to date is mainly caused by humans, so the term climate change (also known as global warming) is considered synonymous with modern climate change.) 1.3 CAUSES TO CLIMATE CHANGE Global climate change is inevitable, no matter how well we control greenhouse gas emissions The reason is that existing levels of emissions in the atmosphere will continue to increase temperatures and sea levels over the next century Climate expert Gerald Meehl and colleagues at the US National Center for Atmospheric Research (NCAR) and colleagues used computer climate models to predict what would happen if humans control emissions greenhouses at different levels The study takes into account the ocean's slow response to global warming The results suggest that the most optimistic scenario + that greenhouse gas emissions in the atmosphere are maintained at 2000 levels + requires drastic reductions in CO2 emissions, much more than the levels in the Kyoto Protocol Even in this case, the global temperature will continue to increase by 0.4-0.6°C in the 21st century, on par with the temperature increase throughout the 20th century Climate change is an issue that is currently being deeply concerned by countries around the world Climate change, typified by global warming, is taking place The world temperature has increased by about 0.7°C since pre-industrial times and is currently increasing at an increasing rate In addition to natural and calculated causes As a complex changer of climate systems around the world, most of the world's leading environmental scientists agree: greenhouse gases are released into the atmosphere by human activities caused global climate warming Recent studies show that the emission of greenhouse gases (mainly CO2 and Methane CH4) is the leading cause of climate change, especially since 1950 when the world accelerated the pace of industrialization and consumption Related to that is the increase in the use of fossil fuels such as coal, oil, cement production, deforestation and the increase in cattle ranching (discharge of cattle manure creates an increase in methane), reclaimed peatland wetlands The conclusion of researchers from the University of Berne + Switzerland published in the scientific journal Nature on May 15 said that the concentration of CO gas in the atmosphere is now at its highest level in the past 800,000 years Therefore, the main cause of Earth's climate change is believed to be an increase in activities that generate greenhouse gas emissions g overexploitation of greenhouse gas sinks such as biomass, forests, and other marine, coastal and terrestrial ecosystems In order to limit climate change, the Kyoto Protocol aims to limit and stabilize six major greenhouse gases: CO2, CH4, N20, HFCs, PFCs and SF6 + CO, emitted when burning fossil fuels (coal, oil, gas) and is the main source of anthropogenic greenhouse gases in the atmosphere CO, also generated from industrial activities such as cement production and steel rolling + CH4 is generated from landfills, fermenting feed in the intestines of ruminants, gas systems, natural oil and coal mining + N2O emissions from fertilizers and industrial activities + HFCs are used instead of ozone depleting substances (ODS) and HFC-23 is a byproduct of the production of HCFC-22 + PFCs are generated from aluminum production + SF6 is used in insulating materials and in the production of magnesium 1.4 SIGNS OF CLIMATE CHANGE + Warming of the atmosphere and the Earth in general + Changes in the composition and quality of the atmosphere are harmful to the habitat of humans and organisms on Earth + The rise in sea level due to melting ice, leading to inundation in lowlands and small islands in the sea + The movement of climate zones that exist for thousands of years in different regions of the Earth leads to the danger of threatening the life of living species, ecosystems and human activities + Changes in activity intensity of atmospheric circulation, water cycle in nature and other biogeochemical cycles + Changes in biological productivity of ecosystems, quality and composition of the hydrosphere, biosphere, and geosphere Evidence of climate system warming is shown in the increase in average global air and ocean temperatures, melting of ice and increasing mean sea level becoming common Eleven of the past 12 years (1995 2006) are classified as the hottest years on record (since 1850) The 100-year trend in temperature increases (from 1906 to 2005) is 0.74°C (0.56°C to 0.92°C), larger than the trend shown in the second assessment report of the IPCC is 0.6°C (0.4°C to 0.8°C) (1901-2000) The increase in temperature is becoming more common globally and increases more in the high latitudes in the north Land areas warm up faster than ocean areas Changes in atmospheric concentrations of greenhouse gases, aerosols, land cover and solar radiation have altered the energy balance of the climate system Global anthropogenic greenhouse gas emissions have increased by about 70% since the pre-industrial revolution, between 1970 and 2004 CHAPTER 2: THE NATURE OF CLIMATE CHANGE IN THE PUBLIC ECONOMY 2.1 THE NATURE OF CLIMATE CHANGE 2.1.1 CLIMATE CHANGE IS AN EXTERNALITY Climate change arises from the emission of greenhouse gases resulting from human economic activities, such as energy usage, industry, agriculture, land usage and transportation The amount of greenhouse gases causes the atmosphere to warm up and the climate to change Climate change causes damage to many aspects in society, such as increased disease and death, loss of jobs and reduced income from agriculture and fisheries, loss and damage to property, etc due to increased temperature, sea level rising or extreme climate events (storms, floods, ) However, producers who emit greenhouse gases are not responsible for compensating those who suffer In this sense, economics considers anthropogenic climate change as a prime example of negative externalities (although in some cases climate change can have some positive effects on a few countries which located in high-latitude regions through increased agricultural productivity, reduced death and winter heating needs, and a tourism boom driven by warmer temperatures) Climate change is a negative global externality Countries emit greenhouse gases in varying amounts, but the impact of an extra unit of greenhouse gas emissions on climate change does not depend on where it is emitted Because no matter where the greenhouse gases are emitted, they are absorbed into the atmosphere and spread around the globe, and changes in the local climate system depend on the global climate system Therefore, climate change affects all countries and every individual globally; but those who cause damage are not responsible for compensating those who suffer damage 10 Thus, human-caused climate change from greenhouse gas emissions in production activities has made the market unable to allocate resources efficiently from a social point of view This cannot be remedied without government policies 2.1.2 CLIMATE CHANGE MITIGATION AND ADAPTATION IS A PUBLIC GOOD Climate change mitigation needs to be implemented to limit the magnitude, rate of increase and worst impacts of climate change in the long term and, if not implemented, climate change will exceed the adaptability of natural systems and socio-economic systems in the long run Adaptation to climate change is essential in both the short and long term in order to reduce damages and to take advantage of opportunities that benefit from climate change Climate change mitigation is an example of a public good, because all climate change mitigation activities have the characteristics of a public good that is nonexcludability and non-rivalry No individual can be prevented from benefiting from climate change mitigation for a stable climate, and an individual's enjoyment of a stable climate does not reduce other individual's ability to benefit Climate change adaptation, when implemented by the public sector, is also characterized by public goods as non-excludability and non-rivalry For example, when the government builds climate-resilient infrastructure (for example, upgrading roads to adapt to flooding or building sea dykes to adapt to sea level rise), nothing may prevent any individual from benefiting from climate-resilient infrastructure, and the enjoyment of one individual does not impair the ability of others to benefit Economics explains why markets cannot supply goods such as climate change mitigation and adaptation at the socially desirable levels The non-excludability and nonrivalry in consumption of a public good that is "reducing greenhouse gas emissions" has made producers realize that if they supply it, it is not possible to obtain the full cost of the supply so they will not supply or supply at a less than socially desirable level The “free 11 rider” problem in this case did not encourage the participation of the private sector in climate change response activities Then the next question is when the market fails, can the government provide public goods, then force individuals to pay through contributions in taxes or fees Obviously, in terms of reducing greenhouse gas emissions, the government can intervene through public policies However, climate change mitigation and adaptation is a global public good For climate change mitigation, even countries with similar concerns about climate change and other countries all benefit from climate change mitigation, many countries are still unwilling to reduce greenhouse gas emissions voluntarily, because no country can be excluded from getting the benefits of climate protection through activities that reduce greenhouse gas emissions, regardless of whether they contribute; and the enjoyment of the benefits of one country does not affect the enjoyment of the benefits of another For climate change adaptation, some activities have the characteristics of the global public goods For example, improving the information system on climate change, researching and developing plants and animals that are able to adapt to different climate conditions, and sharing best experiences on climate change adaptation in a global level will benefit everyone in all countries, regardless of whether they contribute to the costs, and the enjoyment of one person's benefits does not affect the benefits of another 2.1.3 CLIMATE CHANGE IS THE BIGGEST MARKET FAILURE Climate change has several differences from other types of market failure, specifically: + Firstly, climate change is a global market failure in terms of both causes, consequences and ways of responding (mitigation and adaptation) This requires economic analysis of climate change to be considered from a global perspective 12 + Second, the width, magnitude, and complex nature of the impacts of climate change, as well as the costs and benefits of responding to climate change, imply that certain ethical perspectives, such as welfare, equity and Human rights need to be considered in the economic analysis of climate change + Third, the width, magnitude, type and duration of climate change impacts and the costs and benefits of responding to climate change are uncertain, so economic analysis of climate change should consider factors of risk and uncertainty with a cautious approach + Fourth, the impacts of climate change are long-term and increase over time The economic analysis framework for climate change should assess the benefits and costs of mitigation and adaptation measures over time using a reasonable discount rate + Fifth, climate change can cause major and significant impacts on the global economy if actions are not taken immediately to prevent climate change Therefore, economic analysis of climate change need to consider the possibility of large, non-marginal changes to society rather than merely small, marginal changes — changes that often occur with capital, labor, and technology in standard economic analysis Therefore, climate change is the biggest market failure that the world has ever witnessed What distinguishes climate change from other forms of market failure makes economic analysis of climate change more challenging Like any market failure, climate change can only be effectively addressed by government intervention through public policies 13 CHAPTER 3: PRACTICE OF GOVERNMENT POLICIES 3.1 SITUATION OF CLIMATE CHANGE IN VIETNAM 3.1.1 Impacts on Vietnam's economy and society With a coastline stretching over 3,260 km 2, the sea surface area in the territorial sea is about million km2, times larger than the land area, Vietnam is one of the countries which are most affected by climate change, especially the coastal localities are affected most significantly The impacts of climate change on Vietnam are increasingly severe, reflected in the increase in average temperature, which will increase by 30 degrees Celsius by 2100; the frequency of storms increases and the direction of storms changes to the south; floods and droughts are becoming more and more severe while saline water encroaches many kilometers into the land area, causing serious damage to farming; and sea level rise from 2.5 cm to cm in 10 years and is expected to reach meter by 2100 3.1.2 Loss of people, property and money due to climate change Considering the greenhouse gas emission scenarios, by the end of the 21st century, the average sea level in Vietnam could increase by 78-95cm If sea level rises by 1m, about 39% of the Mekong Delta and more than 10% of the Red River Delta will be flooded An estimated of 22 million people will lose their houses with a loss of up to 10% of GDP The Government Party Committee (2013, page 5) concluded that in the past 15 years, natural disasters such as storms, floods, flash floods, landslides, inundation, drought, saltwater intrusion and other natural disasters have occurred and caused damage to people and property From 2005 to 2014, Vietnam suffered an average of 649 natural disasters each year, including floods, hails, storms, flash floods, cyclones and landslides In which, floods are the most frequent, accounting for 49% of the total number of natural disasters, while storms account for about 13% During this period, 469,526 houses were destroyed, 174,653 houses were damaged, and more than 10,711 people died or went missing On average, the whole country has about million people suffering big or small damage due to natural disasters Regarding economic losses, in the 10 years from 2005 to 2014, Vietnam's average annual loss is about 5.2 billion USD On average, natural disasters have caused a loss of 1.5% of GDP annually over the past 15 years (Monre, 14 2012) About three million people suffered major or minor damage due to natural disasters In addition, the DARA report on vulnerability to climate change indicates that climate change could cost Vietnam about 15 billion USD per year, equivalent to 5% of GDP Specifically, each year Vietnam loses billion USD due to sea level rise, crop failure billion USD, agricultural industry additional 500 million USD, floods and landslides 200 million USD; and a $150 million expenditure to reduce the temperature rise If Vietnam does not take appropriate response measures, the loss could reach 11% of GDP by 2030 (DARA International 2012) Another study jointly conducted by the Central Institute for Economic Management (CIEM), the World Institute for Development Studies and the University of Copenhagen (2012) asserts that, if Vietnam's economy continues to grow 4% per year for the period 2007-2050, the growth rate due to the effects of climate change (specifically storms) could be from 5.32% to 5.39%, i.e the growth rate will decrease but light If Vietnam's GDP reaches over 500 billion USD by 2050, the damage caused by climate change in 2050 will be 40 billion USD, a significant loss will only be reduced if Vietnam takes appropriate and effective response measures (CIEM, DOE and UN University, 2012) Therefore, finding solutions to cope with climate change is urgent Here, the renewal of the growth model is associated with the economic restructuring, the integration of climate change into the development strategy and planning of the whole economy and of each locality, and the selection of a model for economic transformation Economic structure suitable to climate change is considered an important and urgent tasks of Vietnam 3.1.3 Climate change affects the industry Climate change in Vietnam is complicated, the reality in recent years shows that climate change is happening faster than expected In 2010, the beginning of many studies 15 on the damage of climate change in the world, our country is still a country heavily affected by climate change In a study on the impact of climate change on developing countries by the World Bank, the forecast from 2007 showed that Vietnam is the country which most affected by climate change, based on the scenario of sea level rise, one of the basic factors of climate change, which is most clearly shown through the chart in Figure below by author Do Nam Thang based on the research of Dasgupta et al 2007 when compared with 10 developing countries affected by climate change, Vietnam is the country with the highest loss per GDP Figure Forecast of the impact of m sea level rise on GDP (GDP loss rate) Source: Study of Dasgupta et al 2007 In recent years, research on the effects of climate change has also pointed out many issues that need attention, for example, 2017 was the year with an unusually high number of storms affecting our country (16 storms) According to the calculation of the Central Committee for Natural Disaster Control and the General Statistics Office, the damage is about 38.7 trillion VND, equivalent to 2.7 billion USD 16 The impact of climate change on production is most evident in the agricultural sector In Vietnam with the characteristics of the humid tropical monsoon climate of Southeast Asia, in agricultural production, rice is the main crop, the impact of climate change on annual rice production accounts for the largest proportion, according to the calculation The average estimate of the General Statistics Office in 2018 for the period 2011-2016 was about 66.1% In 2016 alone, drought and saltwater intrusion affected 527.7 thousand hectares of rice, of which about 44% of the area was completely damaged For others such as crops, fruit trees, and long-term industrial plants, crop yields will decrease by about 50% due to the impact of climate change The effects of climate change also affect livestock, forestry, biodiversity, forest fires, wetland ecosystems, aquaculture, etc, so it is necessary to have a new perspective on agricultural production and more comprehensive recognition in the context of agricultural production situation affected by climate change Climate change also affects transportation activities, according to the study of the climate change scenario, if the sea level rises 1m, there will be about 9% of the highway system, 12% of the provincial road system and 4% of the railway system will be affected, in which the most concentrated in the Mekong Delta region, accounting for 28% highways and 27% of provincial roads of the country, followed by the central coastal provinces and the Red River Delta Climate change affects urban development, industrial zones and housing, the level of influence depends on each region, each locality and each location according to the distribution topography The overall study shows that coastal areas are mainly affected by storms, mountainous areas are affected by flash floods, cyclones, and landslides, midlands and plains are mainly affected by floods, cyclones, and hail Climate change affects tourism, trade, energy, etc and many other economic activities directly or indirectly These effects in recent years have shown quite clearly, each sector and field can feel and assess the impact of climate change 17 For industry, the effects of climate change will affect the processing industry, especially the processing of agricultural products In the case of increased temperature, it will increase energy consumption, leading to many other activities such as increasing the capacity of power plants, increasing the use of cooling equipment, affecting national energy security Studies under the sea level rise scenario show that, if the sea level rises 1m, most of the coastal industrial zones will be flooded, the lowest level is over 10% of the area, the highest level is about 67% of the area Regarding gender equality, recent studies show that climate change affects women's work, women are the most vulnerable group due to climate change, affects health, household economy and migration This situation has been shown more and more clearly in areas affected by climate change such as the Mekong Delta and coastal areas and rural areas Besides the negative effects of climate change, we also have to look more comprehensively at the positive effects, such as in agricultural production on rainfall, there will be areas of positive impact In agricultural production, the restructuring of crops, livestock and crops due to climate change needs to be carefully analysed to see the positive and negative aspects, taking economic efficiency as the basic criterion to evaluate the results 3.2 POLICIES RESPOND TO CLIMATE CHANGE OF GOVERNMENT The Government has approved Agenda 21 on Sustainable Development in Vietnam, Sustainable Development Strategy, Green Growth Strategy, Action Plan to Respond to Climate Change The Party Central Committee also approved Resolution 24NQ/TW dated June 23, 2013 "Actively responding to climate change, strengthening natural resource management and environmental development" Whereby: + In agriculture: (i) Reduce the contribution of crop production (depending on the nature), increase capital investment, apply science and technology to animal husbandry; develop large-scale farms in the direction of commodity production; (ii) Changing the structure of 18 plant and animal varieties that are resistant to drought (such as in the South Central provinces) and saltwater intrusion (such as in the Mekong Delta); (iii) Development of agricultural service industries; (iv) Invest in advanced technology (biogas) to treat agricultural pollution, etc.; (v) Increase productivity of crops, livestock as well as labor productivity in each industry; (vi) Land improvement, application of drip irrigation technology to save water and effective investment in agricultural infrastructure + In forestry: Reduce deforestation while increasing the capacity of afforestation and improving forest cover + In aquaculture: (i) Gradually reduce the contribution of the fishing industry, and at the same time increase aquaculture, especially high-tech, multi-level farming; intercropping between crops with aquaculture to improve land, increase land use capacity; (ii) Applying advanced technology to aquaculture and fishing activities; (iii) Increase investment in science and technology in the field of fisheries services + In industry and construction: (i) Review and remove polluting industries from residential areas, restrict licensing for heavy polluting industries; (ii) Increase investment in industrial and energy sectors using renewable resources such as wind power, solar power and limit licensing for hydropower sectors; (iii) Invest in irrigation works to ensure sufficient water for agriculture; (iv) Increase the contribution of high quality food processing industry, etc + In services: (i) Strongly develop responsible tourism (especially community-based tourism, eco-tourism), high-tech services However, there are still some limitations: + The restructuring of economic sectors is still slow, unstable and inadequate, not taking into account the advantages of each locality Economic restructuring in the direction of being more environmentally friendly, taking advantage of the potential of tourism and agriculture to cope with climate change has not been synchronized among localities, and regional linkages have not been taken advantage of the contribution of sectors using green energy is still low, despite the fact that the contribution of sectors has changed 19 significantly compared to before There is no overall and complete report on economic restructuring + The pace of restructuring of industries has not been even, the sectors have not been even, the scale of planting trees on bare land and hills has not met the actual demand, only 2/3 of agricultural irrigation has been met actual requirements, which ultimately reduces the quantity and quality of the crops + Pollution in livestock and aquaculture is still relatively high + High-quality human resources for economic restructuring to respond to climate change and policy communication are still weak and lacking Therefore, the plan for economic restructuring to respond to climate change in the coming years is as follows: + Actively integrate climate change into the socio-economic development strategy of the whole country, each region and locality Climate change has comprehensive and crosssectoral impacts, so if development strategies, policies and plans not take into account the linkages between sectors and fields as well as the impacts of climate change, it is unable to deliver satisfactory results and take advantage of comparative advantage + Strengthen the assessment of impacts of climate change in each area to have a timely response plan + Sustainably develop economic sectors on the basis of contributions of science and technology factors and total factor productivity (TFP), develop industries that consume less energy, more green energy, limit environmental pollution in accordance with the characteristics of each industry, region and locality Economic restructure based on comparative advantages of each region and locality, along a chain of links with high added value and the interests of participating individuals will contribute to limiting fragmented production and increasing economic efficiency and scale + Review and complete the system of policies for development of sectors and regions, related to land, public investment, financial policies, taxes, subsidies, science and 20 technology, education and training, etc to develop industries with high added value and high-tech industries + Effectively seeking and mobilizing financial resources domestically and foreign for economic restructuring to respond to climate change, reducing pressure on the state budget through strengthening international and social cooperation socialization and communication 21 CONCLUSION Climate change is an extremely dangerous thing that threatens the existence of humans as well as all living creatures on Earth Climate change is dangerous because it makes the Earth warm, sea levels rise There are billion people on Earth, and now more than half of these people live on the Earth's coast within 100 kilometers of the coast when sea level rise affects the lives of billions of people We firmly believe that Vietnam will come up with appropriate policies to protect the country from losses due to the current climate change As an economics student at Foreign Trade University, being aware of the link between climate change and the economy not only meets the need to improve knowledge but also draw experiences for myself Once again, I would like to thank teacher Ly Hoang Phu for his help and guidance to complete this article However, due to the limited time and the limitation of my own level of awareness, my writing cannot avoid shortcomings Therefore, we are looking forward to the understanding and comments of teachers to improve the article 22 REFRENCES Lê Huy Bá –1996 + Mơi trường khí hậu thay đổi mối hiểm hoạ toàn cầu – NXB TP Hồ Chí Minh Góc kinh tế học: Tưởng chừng khơng liên quan, biến đổi khí hậu thất bại thị trường nghiêm trọng kinh tế + GS.TS Trần Thọ Đạt Ban chấp hành trung ương Kết luận Bộ Chính trị: Số 56-KL/TW ngày 23 tháng năm 2019 “ tiếp tục thực Nghị Trung ương khóa XI, chủ động ứng phó với biến đổi khí hậu, tăng cường quản lý tài nguyên bảo vệ môi trường” 2016 Economic restructuring in response to climate change + theory and practice [online] Lyluanchinhtri.vn 23 ... mitigation and adaptation activities are characterized by public goods The theory of externalities and public goods is the beginning point of economic analysis about climate change However, climate... market failure, requiring economic analysis about climate change to consider these factors As an economics student, it is essential to be aware of the relation between economic growth and climate...FOREIGN TRADE UNIVERSITY ECONOMIC FACULTY *** ESSAY The policies of the Vietnamese government to respond to climate change in order