At the "tea party" this afternoon, domestic and foreign businesses said they wanted to invest and support Ho Chi Minh City in developing a green economy, but expected clear regulations and policies.
On the afternoon of September 14, Ho Chi Minh City organized "CEO 100 Tea Connect" - a program to meet 100 leaders of domestic and foreign enterprises, organizations, and localities through a special tea reception, within the framework of "Ho Chi Minh City Economic Forum 2023". This is the first time Ho Chi Minh City has organized a meeting and connected businesses under the "tea party" initiative.
Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People's Committee, said that the city is facing challenges such as climate change, traffic congestion, labor shortage, and the impact of cyclical factors in economic development. To solve these challenges, the city is restructuring and identifying green economy as the growth driver in the coming period.
Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People's Committee, invited CEOs, leaders of organizations and localities to tea in the first "Tea Party" meeting with businesses on the afternoon of September 14. Photo: Vien Thong
Many international organizations and businesses have expressed their willingness to invest and share their experiences. Mr. Han Sang Deog, Deputy General Director of Samsung Engineering Vietnam, said that he has long been interested in and considered investing in the field of wastewater treatment and waste-to-energy incineration in Ho Chi Minh City.
His company also proposed a strategy called the “Integrated Environmental Complex”. This is a circular economic environmental complex, including water, waste and biogas treatment, using self-produced energy without using external energy sources.
According to Mr. Han Sang Deog, from the planning stage, relevant agencies and Samsung need to work together to find the optimal solution. "When we receive policy support from the government, we will be responsible for the entire value chain based on the introduction, application of technology, investment implementation and provision of financial structuring solutions, design, construction and operation management," he said.
Mr. Han Sang Deog, Deputy General Director of Samsung Engineering Vietnam at the event. Photo: Vien Thong
Mr. Gabor Fluit, President of Euro Charm, said that the European Green Deal (EGD) and the Carbon Border Adjustment Mechanism (CBAM) are creating both opportunities and pressures for businesses exporting to this market. Therefore, the organization is ready to support businesses in finding ways to practice compliance.
"We want to support through technology transfer, model sharing, capacity building for projects, thereby helping Ho Chi Minh City become an export hub to the EU," said Mr. Gabor Fluit. In the coming months, EuroCham will organize a series of activities to support Vietnamese businesses adapting to EGD.
Ms. Nguyen Thi Mai Thanh, General Director of REE Refrigeration Electrical Engineering Company, also said that Ho Chi Minh City has not kept up with the needs of the circular economy and hopes that the company's projects here will be considered more quickly.
Accordingly, REE is waiting up to 18 months to determine the location for the waste-to-energy plant with a capacity of 2,000 tons per day. "We can invest in solar power on all office and school rooftops, and sell electricity to the city at the same price as electricity," Ms. Thanh said. The proposal was made 3 years ago but has not been considered.
Ms. Nguyen Thi Mai Thanh, General Director of REE Refrigeration Electrical Engineering Company at the event. Photo: Vien Thong
Some international banks are also looking for opportunities to disburse “green” finance (loans for sustainable development projects) in Ho Chi Minh City. Ms. Tracy Wong Haris, Head of Sustainable Finance in Asia at Standard Chartered, said the bank has a large budget for sustainable innovation and wants to accompany the city to disburse this fund.
According to Mr. Ramachandran AS, General Director of Citi Vietnam, Ho Chi Minh City is a center for green finance, with many multinational companies present here that are committed to sustainable growth. However, the private sector still lacks capital for the green economy. "We plan to provide medium and long-term funding for green projects, ensuring increased competitiveness for manufacturers," he said.
However, to truly attract sustainable investment sources and help businesses confidently contribute to green economic development, experts have provided a series of experiences and recommendations.
Mr. Ricardo Valente, City Councilor for Economy and Finance of Porto City (Portugal) proposed that Ho Chi Minh City order circular business solutions for businesses to participate. Accordingly, the best solution will be selected. In addition, tax exemptions are also a way to encourage. "We have built environmental indexes, tax exemptions for companies that meet these indexes," he said.
Mr. Ichisaka Hirofumi, Director of International Relations of Osaka Prefecture (Japan), said that in 1973, this was the first prefecture to implement a business management model with clear regulations on environmental factors. Thanks to that, this place became a pioneer in overcoming pollution problems and maintaining stable growth.
In the immediate future, many businesses believe that Ho Chi Minh City needs to propose to central ministries and branches to develop specific standards and criteria for what is "green" for each industry sector.
"HCMC should work with associations and sectors to contribute to building criteria and legal barriers to green the textile industry," said Mr. Pham Van Viet, CEO of Viet Thang Jean, Vice President of the Ho Chi Minh City Textile, Embroidery and Knitting Association.
Similarly, Mr. Le Anh, Director of Sustainable Development of Duy Tan Plastic Recycling Company, hopes that the city will have a focal agency to support solving difficulties for businesses in the recycling sector. "We also need a set of standards for recycled products, and safety standards for recycled products," he said. Standard Chartered wants the State Bank to create a more favorable environment for green finance.
According to Mr. Phan Van Mai, the country's economic locomotive is outlining a green strategic framework to 2030, with a vision to 2050, identifying people and businesses as the center of transformation, focusing on 4 contents:
One is green resources including highly qualified human resources, green finance and international cooperation. Two is green infrastructure, including energy conversion, water saving, resource circulation. Three is green behavior in consumption, transportation, construction. And four is pioneering green transformation industries and fields such as high-tech manufacturing, startups, innovation, tourism, agriculture, food and making Can Gio district a green locality, meaning carbon neutral by 2035.
Therefore, Mr. Mai said that currently, Ho Chi Minh City has a number of major groups of issues that need proposals from experts and businesses. One is energy conversion. Currently, the city consumes about 90 million kWh per day, mainly from external sources and thermal power, clean electricity is only 7.6%. Ho Chi Minh City's goal is to reach 25% by 2025 and 35-40% by 2030. The problem is policy, institutions, capital and technology.
Second is green transportation. The inner-city transportation system is dominated by private vehicles, mainly motorbikes. Ho Chi Minh City had 777 motorbikes and 81 cars per 1,000 people in 2019 and the problem is to reduce private vehicles.
Third is waste and wastewater treatment. Every day, Ho Chi Minh City discharges about 9,500 tons of solid waste, an average of 0.98 kg of household waste per person per day. The problem is still policy, capital and technology. And fourth is carbon credits. Resolution 98 allows the city to pilot carbon credit trading but requires experts to advise on legal issues, pilot models and methods.
The Chairman of Ho Chi Minh City said that the opinions contributed at the "tea party" will be taken into account by the city to complete the green development strategy framework to 2030, with a vision to 2050 this September. "We will also propose to issue standards on studying international standards governing production, consumption, and green development activities," he added.
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