## For Vietnam, Greener Growth Can Reduce Climate Change Risks

_IMF News, January 9, 2018_

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## Bibliographic details
- Published: January 9, 2018

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### Climate change: current and projected impacts
- By 2100, climate change could impact more than 12 percent of the Vietnamese population and reduce growth by 10 percent.
- Vietnam’s 2,150-mile-long coastline and proximity to the tropics increase vulnerability.
- Vietnam’s 95 million people and the bulk of its economic assets are concentrated in coastal lowlands susceptible to typhoons.
- Every year since 1990, natural disasters have cost on average about one percent of GDP and caused 500 casualties.
- In 2017, Vietnam was affected by 12 major storms, causing deadly floods and destroying hundreds of thousands of homes and hectares of crops.
- More frequent and more intense storms could affect crop yields and production, impacting rural incomes, food security, and commodity exports.
- Increased rainfall intensity will damage roads and railroad networks; higher temperatures will raise demand for electricity.
- Risks will weigh disproportionately on the poor, who could be forced to migrate inland or towards large cities.

### Environmental and emissions profile
- Rapid industrialization since the late 1980s has relied on intensive and unsustainable exploitation of forests, fisheries, and other renewable and nonrenewable natural resources.
- Vietnam’s stock of natural capital has declined as mineral and nonmineral resources were depleted; agriculture and industry have contributed significantly to degradation of natural capital.
- Extensive use of fertilizers contributes to polluting land and water and adds to legacy environmental issues.
- Vietnam is among the top ten countries affected by air pollution: in large cities and industrial zones, levels of fine particulate matter are much above safe levels and comparable to that of China.
- Greenhouse gas emissions are expected to double between 2010 and 2020 and triple by 2030.
- Electricity production from coal-fired plants is a major contributor to air pollution, with a quarter of the domestic supply produced from coal.

### National commitments and institutional setup
- Vietnam ratified the 2016 Paris Agreement on Climate.
- The government committed to reducing greenhouse gas emissions by at least 8 percent by 2030 and to achieving the United Nations Sustainable Development Goals (SDGs) by 2030.
- A recently created National Committee on Climate Change, chaired by the Prime Minister and including key ministers, oversees climate change and green growth programs.

### Policy measures to transition to greener, more resilient growth
- Lower the intensity of fossil fuels in Vietnam’s GDP:
  - Raise the contribution of renewable energy to break the link between greenhouse gas emissions and output.
- Provide stronger incentives for households, firms, and government to pursue green growth:
  - Taxation of fossil fuels that fully prices environmental and health externalities would nudge energy demand toward renewables and generate revenue to finance adaptation and mitigation plans.
- Invest in climate-resilient infrastructure:
  - Help households and firms cope with storms.
  - The expected cost of natural disasters could be usefully included in public debt sustainability analyses.
- Promote research and development and other innovation policies:
  - Provide further incentives to investment in existing clean energy sources and improvements in clean technologies.
- Shift transport toward autonomous, electric, shared vehicles (as already planned in Singapore):
  - Would help reduce congestion and pollution in cities.
  - Improved government capacity to coordinate technological change and promote innovation and green growth will be key.

*For Vietnam, Greener Growth Can Reduce Climate Change Risks — January 9, 2018*

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## References

- [https://www.imf.org/en/News/Seminars/Campaigns/2018/VTI](https://www.imf.org/en/News/Seminars/Campaigns/2018/VTI)
- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [adapts](http://www.imf.org/en/Publications/CR/Issues/2017/07/05/Vietnam-Selected-Issues-45046)
- [Latest economic outlook for Vietnam](http://www.imf.org/en/Publications/CR/Issues/2017/07/05/Vietnam-2017-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-45045)
- [Vietnam and the IMF](http://www.imf.org/en/Countries/VNM)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/01/09/na010918-for-vietnam-greener-growth-can-reduce-climate-change-risks_