In order to call for investment in green projects, the Ho Chi Minh City People’s Committee has unveiled 28 priority projects calling for investment in transportation, high tech, renewable energy, electronics, microchips, semiconductors, and data centers. It has also improved its legal and policy environment.

Chairman of the municipal People's Committee Phan Van Mai said the city is completing a green growth policy framework until 2030 with a vision to 2050. It has promulgated Resolution 98 which calls for shortening the procedure for planning, adjusting planning, and speeding up project planning and licensing.

Mai said the City administration will propose to the Government and National Assembly a number of green growth measures.

“We will choose pioneering fields. Converting means of transportation to reduce emissions is a priority, along with developing green buildings and generating electricity on rooftops. The bigger issue is energy transition and carbon credit exchange. We have prepared all of these things," said Mai.

Phan Ngoc Anh, Director of the ALENA Energy Technology Company, said that if there are more favorable policy mechanisms for implementing projects and electricity purchase prices are more reasonable, businesses can contribute to the city’s goal of converting to low-emission transportation.

He proposed that the City give businesses space to set up solar-powered charging stations for electric motorbikes to ensure clean power. According to Ngoc Anh, electric motorbikes can use electricity from solar charging stations in parks and other open spaces, and store electricity in battery packs. Electric motorbikes use only renewable energy.

Carolyn Tuck, Country Director of the World Bank in Vietnam, said that to attract investment in green growth, HCMC needs to carry out a comprehensive change rather than doing separate planning for each industry. Tuck insisted on greening the private supply chain, recommending that Ho Chi Minh City build an incentive mechanism to motivate investors, with a focus on tax incentives.

In addition to green investment attraction, Ho Chi Minh City is promoting the development of a carbon credit market. The Ho Chi Minh City Finance and Investment Company (Hfic) has been assigned to coordinate carbon credits. The World Bank has a plan to provide the City with a non-refundable aid package worth 40 million USD and a technical support package worth 10 million USD to help it develop the carbon credit market.

Hfic Director General Le Ngoc Thuy Trang underscored the need to develop an appropriate legal framework because the carbon credit market is new and hasn’t yet been included in regulations governing the city’s investment fund for urban development.  

“We are coordinating with World Bank lawyers to develop mechanisms and policies and propose to the Prime Minister to add more operational functions to Hfic. We’re asking for a financial mechanism and a legal status to be eligible to receive aid from the World Bank," said Trang.

Mani Mathukumara, a World Bank economic and environmental expert, said another big issue for Ho Chi Minh City is to identify the buyers and sellers in the carbon credit market.

Buyers should be international businesses. But the emission reduction of businesses in the City must be recognized by a functional and reputable agency so that buyers have confidence in the recognized carbon certificate.

According to Mathukumara, in order for Vietnamese businesses to trade in the global carbon credit market, they must first have projects, confirmed by functional agencies, which can provide financial and partner resources to transact credits in the market.

Mathukumara said this is an area where the World Bank has advantages and is ready to help Ho Chi Minh City through the Hfic by gathering projects and ideas and finding potential cooperation.

“Currently, the Governments of Singapore, South Korea, and Switzerland all want to buy carbon credits,” said Mathukumara.

Le Thi Huynh Mai, Director of the municipal Department of Planning and Investment, said that, because the City's green economic growth goal is receiving attention from many domestic and international investors and businesses, the local government is committed to completing its policy framework and mechanisms as soon as possible.