Green growth vital for the national economy

(VOV) - Green growth is essential for sustainable economic growth and the well-being of the people said Deputy Minister of Planning and Investment Dang Huy Dong at the Vietnam Economic Forum 2014 in Hanoi on October 24.

Carbon-dependent economic growth is not sustainable and is the reason the Ministry of Planning and Investment (MPI) recently announced its action plan to reduce greenhouse gas emissions and promote the use of clean and renewable energy.

However the MPI plan will require significant investment on the part of domestic and foreign business enterprises, Dong said.

Associate Prof. Dr Tran Dinh Thien, Head of the Vietnam Institute of Economics in turn echoed Deputy Minister Dong’s views adding that giving effect to the green growth strategy is also going to involve  reallocating human resources.

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“More attention needs to be made to developing the high technology industries and a better educated labour force to support it. The three major shortcomings of the national economy include an improper growth model, lack of competitiveness, and state governance.”Professor Thien said.

Professor Thien said  to fulfill the MPI green growth targets the country needs to overcome these weaknesses in the short-term by restructuring all sectors, especially the manufacturing supply chain.

Moreover, he underscored the importance of upgrading infrastructure to improve the national economy and devising improved mechanisms for attracting foreign investment.

Foreign investors are most interested in the nation’s infrastructure and investment policies and less interested in tax policies.

Mr Thien proposed  agricultural development should go along with green growth by creating high technology with greater value-added products. To fulfill the goal, businesses should also get involved in agricultural activities, not just farmers.

To iron out snags for sustainable growth, Thien also suggested the government reform the state apparatus by heightening responsibilities of managers.