Net zero: Vietnam needs a strong legal and policy system

At the COP28 Conference taking place in Dubai, Prime Minister Pham Minh Chinh announced Vietnam's action programs to realize the commitment to achieve net zero emissions by 2050. This is a strong commitment from the Government of Vietnam.

But for this journey to be effective, there needs to be a strong and stable legal framework for businesses to feel secure in investing. The message is clear, but action programs issued in the form of decisions by the Prime Minister sometimes do not have enough legal weight. Although decisions are also legal documents, their legality is clearly lighter than laws, ordinances or decrees.

In the context of Vietnam's legal system still existing With many overlaps and contradictions like today, the regulations in the action programs promulgated by the Prime Minister are unlikely to be effective when they are out of phase with other legal documents.

Meanwhile, in order to feel secure when investing huge amounts of capital in green transformation, businesses need to be assured that the goals in the action programs must be realized. test to avoid falling into a dilemma as happened with the program to replace mineral gasoline with E5 and E10 gasoline.

According to Decision 53 of the Prime Minister on the Action Program to implement currently commits to net zero emissions by 2050

  • By 2030, use 100% E5 gasoline for road motor vehicles. 
  • By 2050, 100% of road motor vehicles, trains, and ships must switch to running on electricity or green energy. 
  • By 2040, limit production, assembly, and import. vehicles running on fossil fuels.
  • From 2030, limit new investment in coal-fired power plants, gradually convert existing coal-fired power plants to run on renewable energy or gas.

To realize the above goals, large investments from both the state and the private sector are needed. In particular, the participation of the private sector is decisive. However, this is an investment field with many market risks and especially policy risks. If the Government does not have policies to support, especially guarantees by law instead of decisions, it will be difficult to encourage investors to participate.

The failure of Pioneering businesses investing and producing to blend biofuel in the past, or a series of investors still stuck with current wind and solar power projects are evidence of the need for a Safe and stable legal and policy system. Once policies and regulations are certain, it will be difficult for businesses to feel secure about investing. To realize the vision of net zero emissions by 2050, Vietnam needs to build a safe, stable legal and policy system, enough to ensure businesses can invest with confidence.

(Video: V.Dung – Truc Nha)