VIETNAM ECONOMY

Vietnam Annual Economic Report 2024: Energy Transition Towards Green Economy

On June 20, 2024, the Friedrich Naumann Foundation for Freedom (FNF) Vietnam and the Vietnam Institute for Economic and Policy Research (VEPR) successfully held the release event for the Vietnam Annual Economic Report 2024 (VAER 2024). The event was supported by media partner Vietnam Economic Review - VnEconomy. The seminar took place at Fortuna Hotel Hanoi, with the participation of leaders from various ministries, policy makers, scientists, international organizations, and media agencies.

The Vietnam Annual Economic Report is a product of the VEPR, part of the University of Economics and Business (UEB), Vietnam National University, Hanoi, and has been published for the past 16 years. It provides independent and objective analysis of achievements, challenges, opportunities, and difficulties in Vietnam's development, offering a scientific basis for macroeconomic policy making while selectively discussing significant economic issues in depth.

The theme of the Vietnam Annual Economic Report 2024 is "Energy Transition Towards a Green Economy." Green transition is a practical necessity and a global trend, increasingly becoming Vietnam's top priority in its integration journey towards sustainable and comprehensive development. As one of the most ambitious Asian nations at COP26, Vietnam's net-zero emission strategy aims to reduce emissions by 43.5% by 2030. However, increasing pressure from strict environmental regulations in developed countries is urging the Vietnamese government and businesses to more rapidly and robustly engage in the energy transition towards greening the economy. This challenge also presents an opportunity for countries like Vietnam to promote economic restructuring towards sustainability, enhance competitiveness, and leverage new trade and investment cooperation opportunities.

The seminar attracted significant attention, with many policy makers and senior economic experts from both domestic and international arenas in attendance. Additionally, it saw the participation of numerous leaders and representatives from government agencies, policy-making bodies, research institutions, universities, embassies, international development organizations in Vietnam, associations, enterprises, and banks.

The report content includes:

• An overview of the global economy in 2023 and the first half of 2024, covering major economies closely related to Vietnam, global economic prospects for 2024, and trends in renewable energy transition worldwide.
• An overview of Vietnam's economy in 2023 and the first half of 2024, focusing on economic growth, inflation, monetary, credit, financial, labor, and energy markets.
• An assessment of the relationship between renewable energy transition and economic growth, examining the impact of renewable energy transition on economic indicators such as GDP, employment rates, and the development of related industries.
• International experience studies from countries like the UK, Germany, and China on renewable energy transition, proposing solutions to promote renewable energy transition in Vietnam.
• Liberalization of the direct power purchase market to boost rooftop solar development in Vietnam, discussing theories and international experiences on building competitive direct power purchase agreement (DPPA) markets for rooftop solar, identifying barriers and challenges in applying DPPA mechanisms for rooftop solar in industrial zones, and proposing policies to implement and apply competitive and direct power purchase mechanisms in industrial zones to meet green export standards.

The seminar concluded with contributions from experts and guests. Associate Professor Dr. Nguyen Anh Thu, Vice-Rector of the University of Economics - VNU, Hanoi, summarized key findings and presented several important policy recommendations for the short, medium, and long terms. For detailed information on the report and policy recommendations, please refer to the Proceedings of the Vietnam Annual Economic Report 2024 below.