To accelerate the transition to net zero, Vietnam would need to increase infrastructure expenditure, according to a Vietnam report.
According to an auditing agency, at least 60% of Vietnam’s infrastructure would require substantial upgrades in the coming years to meet its ambitious goal of becoming carbon neutral by 2050.
According to a Planning and Development Institute representative, the Vietnamese government has actively promoted investments in green infrastructure to support the quick adoption of electric cars, renewable energy, and the move away from fossil fuels.
The representative added that with a total infrastructure investment of 5.7% of GDP, the country is leading Asia.
In Vietnam’s master plan for 2021 to 2030 with a vision to 2050, the infrastructure system—which provides all services from power, clean water, transportation, waste treatment, and digital connectivity—has been highlighted as a major factor.
According to a project and infrastructure company, infrastructure expansions will also create more opportunities for stakeholders and investors in the green sector.
According to project and infrastructure company experts, overcoming the obstacles of energy transition would need robust state orchestration throughout the creation of strategic infrastructure.
The lack of experience and funds in local governments has proven to be a great challenge to high-quality infrastructure projects, said the project and infrastructure company expert on integrated infrastructure.
He emphasized that Public-Private Partnerships (PPP) are a powerful mechanism for addressing the issue since they divide the associated risks between the public and private sectors.
A report by a Global Finance Corporation estimates that until 2040, Vietnam would need US$368 billion, or 6.8% of its GDP, to combat climate change.
Government and the private sector must work together to address the transition to net zero and the new energy environment, according to a project and infrastructure company expert.