Vietnam

The National Green Growth Strategy 2021–2030, vision to 2050, is Vietnam's core national framework for green growth and green economy. The strategy sets economy-wide objectives including emissions-intensity reduction, greener production and consumption, promotion of circular economy, and strengthened governance for green growth. It is operationalized through the National Action Plan on Green Growth 2021-2030, which allocates responsibilities across ministries and provincial authorities. The framework is complemented by the National Climate Change Strategy to 2050, setting direction for net-zero by 2050, and by Vietnam’s updated NDC (2022). It is also partly underpinned by the 2020 Law on Environmental Protection, which strengthens the legal basis for implementation. These strategies and legal instruments provide a comprehensive planning architecture for green growth, but implementation has been uneven and for some areas is lagging. Recent Directive 44/CT-TTg (2024), which calls for accelerated implementation of the Green Growth Strategy, further indicates that delivery remains uneven across sectors and levels of government. Overall, the framework is strong and up to date, but remains fragmented across multiple strategies and regulations rather than constituting a single fully integrated, legally binding green economy plan.

Vietnam has a national corporate governance framework for public companies established through the Law on Securities 2019, complemented by the voluntary Vietnam Corporate Governance Code of Best Practices led by the State Securities Commission. The Code encourages more inclusive governance practices, for example board diversity and stakeholder engagement, and recommends more gender balance on boards, but these provisions are not mandatory. The Labour Code 2019 addresses employee participation and recognizes employee representative organizations for consultation and bargaining, but it does not address employee representation at the board level. There is a National Strategy on Gender Equality 2021-2030 and a National Action Plan on Responsible Business Practices 2023-2027, but they do not mandate specific requirements for companies.

The Law on Promulgation of Legal Normative Documents 2015, amended in 2020, requires regulatory impact assessments during policy formulation and consultation with affected stakeholders and mass organisations such as the Vietnam Fatherland Front. Draft legal documents must also be published online for public comment. Transparency is further supported by the Law on Access to Information 2016, as well as guidance on gender mainstreaming in legislative drafting. However, while consultation and impact assessment procedures are formally in place, they are often carried out largely as a procedural requirement, and in practice engagement from the public and local communities remains limited. As a result, some minority groups and communities are not fully engaged in national policymaking. Local participation has been strengthened through the Law on the Implementation of Grassroots Democracy 2022, but actual participation remains relatively low.

The National Green Growth Strategy 2021-2030, vision to 2050 and the National Action Plan on Green Growth 2021–2030, introduce broader indicators related to resource efficiency, emissions intensity and sustainable development. These also include wider environmental and social outcome indicators, such as forest cover, waste treatment, and other sustainable development measures, showing that national planning is not based on GDP alone. Vietnam’s development performance is also assessed through international metrics such as the Human Development Index, where the country ranks in the “high human development” category. In addition, Vietnam’s national statistical system maintains SDG-related indicators that support broader monitoring of development progress. Vietnam has begun developing environmental-economic accounting (including pilot work on forest, energy and emissions accounts). However, these efforts remain partial and are not yet integrated into a comprehensive national wellbeing or wealth framework covering human, social, natural, and produced/financial capital

Vietnam’s approach to green finance and banking is primarily led by the State Bank of Vietnam. The Green Banking Development Scheme promotes green credit and the integration of environmental and social risk management into banks’ operations. Circular 17/2022/TT-NHNN requires banks to assess environmental risks in lending and establish internal policies for managing such risks. In parallel, Vietnam has introduced a national green taxonomy under Decision 21/2025/QD-TTg to support the development of sustainable finance, including access to state incentive and support policies on green credit and green bonds. Overall, Vietnam operates a prudential supervision and stress-testing framework for banks, but mandatory requirements specifically related to environmental, social, or climate stress testing remain limited, and the framework is still more developed in green credit and risk-management guidance than in comprehensive green financial stress testing.

On the financial side, the State Bank of Vietnam has strengthened green finance governance through Circular 17/2022/TT-NHNN (2022), which requires banks to assess environmental risks in credit activities, and through Decision 1408/QD-NHNN (2023), which establishes an action programme for the banking sector to implement the National Green Growth Strategy. Decision 21/2025/QD-TTg (2025) introduces a national green taxonomy providing criteria for identifying environmentally sustainable activities. Vietnam also has a regular prudential supervision and financial stress-testing framework for banks, although the stronger evidence is still on environmental risk management in lending rather than on a regular and comprehensive environmental and social stress-testing regime across all financial institutions.

On the fiscal side, Vietnam undertakes climate public expenditure reviews and has taken some early steps to incorporate sustainability considerations into budgeting and public procurement, but these initiatives remain at an early stage and do not yet amount to a mature, system-wide framework for sustainability review of budgets and public spending.

Vietnam has incorporated sustainability provisions into several recent trade agreements, like the EU-Vietnam FTA, which includes a Trade and Sustainable Development chapter with commitments related to environmental protection and multilateral environmental agreements, and the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership. However, the majority of these provisions are cooperative. At a domestic level, Vietnam has adopted instruments that can support greener trade and investment practices, like a pilot phase of a national carbon market under the Law on Environmental Protection 2020 and the adoption of a national green taxonomy (Decision 21/2025/QD‑TTg).

Vietnam has begun developing a national carbon pricing framework (Law on Environmental Protection 2020; implementing regulation Decree 06/2022/ND-CP, amended by Decree 119/2025/ND-CP). This domestic carbon market features monitoring, reporting and verification requirements for major emitters. Vietnam has also approved a roadmap for the establishment and development of the carbon market under Decision 232/QD-TTg (2025) and established the domestic carbon exchange under Decree 29/2026/ND-CP. The system is currently in a pilot phase, with further expansion and fuller operation planned in later years. Technical preparations for emissions inventories and market implementation are ongoing.

Vietnam has established a national framework for cross-sectoral green growth planning anchored in the National Green Growth Strategy 2021–2030, vision to 2050 and its accompanying National Action Plan on Green Growth. The strategy promotes coordination across ministries and sectors and is led by the Ministry of Planning and Investment, with implementation also supported by the National Steering Committee on Green Growth. Sectoral strategies such as the Power Development Plan VIII integrate renewable energy expansion and emissions reduction goals. However, implementation across Vietnam’s provinces remains uneven due to differences in technical capacity, financing, and data systems. The enforcement of low-carbon standards across sectors and regions continues to evolve.

The Law on Environmental Protection 2020 (No. 72/2020/QH14) introduced the circular economy concept, while Decree 08/2022/ND-CP established implementation mechanisms including extended producer responsibility obligations and recycling requirements. This was reinforced by the Circular Economy Development Scheme (Decision 687/QD-TTg, 2022), which sets a national roadmap for circular economy development across multiple sectors. Vietnam strengthened its policy framework with the adoption of the National Action Plan for Circular Economy implementation by 2035 (Decision 222/QD-TTg, 2025), which outlines sectoral actions, institutional responsibilities and measures to promote circular production and consumption. However, the framework focuses mainly on resource efficiency, waste management and recycling and does not include a circular material use rate target, repair rights or sector-wide circular requirements for key industrial materials.

Decision No. 876/QD-TTg (2022) sets a long-term strategy to transition the transport sector toward green energy by 2050, including milestones to increase electric and other clean-energy buses in public transport from the mid-2020s. 2022 emissions standards for new cars (Euro-5 equivalent) have helped reduce local air pollution. On the demand side, the government has promoted electric vehicles through fiscal incentives such as the registration-fee exemption introduced by Decree No. 10/2022/ND-CP and extended in 2025. Some cities, including Ho Chi Minh City, have announced plans to electrify public transport fleets. Challenges remain on the implementation side, particularly financing mechanisms and charging infrastructure.

The Power Development Plan VIII (2023, with subsequent implementation updates) sets solid medium- and long-term targets for expanding renewable electricity, with renewable energy expected to reach about 30.9–39.2% by 2030 and 67.7–71.5% by 2050 in the power mix. Implementation is supported by new regulatory mechanisms such as the direct power purchase agreement framework introduced through Decree 80/2024/ND-CP, as well as policies supporting rooftop solar and self-consumption. Vietnam’s energy transition is also backed by international financing through the Just Energy Transition Partnership, which is expected to mobilise around USD 15.5 billion for clean energy investment. Overall, Vietnam has a solid renewable energy target framework with implementation and financing support in place, although challenges remain regarding grid infrastructure and the need to expand renewable energy beyond the power sector into heating and transport.

The National Green Growth Strategy 2021-2030, vision to 2050, promotes green job creation and social protection for workers affected by the transition. These priorities are operationalised through the National Action Plan on Green Growth 2021-2030, which includes measures to develop green skills and mobilise investment. Recent reports highlight that Vietnam has prioritised workforce development, but also point to gaps in the definition and measurement of green jobs and not enough maturity of training systems for emerging green sectors.

The National Green Growth Strategy 2021-2030, vision to 2050 emphasises inclusive development. The Power Development Plan VIII highlights the need for a just energy transition. Vietnam’s Just Energy Transition Partnership for Vietnam commits the country to ensuring equitable outcomes, including worker retraining and social protection. The JETP Resource Mobilisation Plan launched at COP28 in 2023 outlines investment priorities and includes references to workforce development and social support. However, planning for coal-region transition, benefit sharing, and social protection remains incomplete. Vietnam’s approach is therefore still more energy-centred than a fully cross-sector just transition framework, but it goes beyond very limited guidance.

Vietnam provides legal recognition for social enterprises through the Law on Enterprises 2014 and the Law on Enterprises 2020. This functions as a designation within existing company types rather than as a distinct corporate form. Support for MSMEs is primarily delivered through the Law on Support for Small and Medium-Sized Enterprises 2017 and its implementing regulation Decree 80/2021/ND-CP, which provide training, technology transfer assistance and digital transformation support. Financing channels such as the SME Development Fund also offer preferential lending to support MSME development. While these instruments can support sustainability-oriented businesses, they are not specifically tailored for greening MSMEs.

The National Green Growth Strategy 2021–2030, vision to 2050 and the Power Development Plan VIII promote renewable energy expansion, circular economy development and workforce transformation while acknowledging the need to support vulnerable groups. Social measures focus on training, job relocation and energy affordability for low-income households. Additional support is provided through the Just Energy Transition Partnership for Vietnam and its Resource Mobilisation Plan launched in 2023. However, Vietnam’s social protection system still operates mainly through existing social insurance and welfare programmes, and there is limited evidence of innovative green social-protection pilots or new approaches such as basic income, community ownership, or similar schemes linked directly to the green transition.

The National Biodiversity Strategy to 2030, vision to 2050 (Decision No. 149/QĐ-TTg, 2022) sets targets to expand protected areas, including approximately 9% of national land area and 3–5% of marine areas by 2030, alongside ecosystem restoration and improved management of protected areas. It also includes monitoring indicators, biodiversity inventories and reporting mechanisms, with a mid-term review planned around 2025 and a final assessment in 2030. Vietnam has also pursued expansion of its marine protected area network, aiming to develop and manage around 27 marine protected areas by 2030 while linking conservation efforts with climate resilience and sustainable marine economy initiatives. However, alignment with the Kunming–Montreal Global Biodiversity Framework is evolving.

Vietnam’s natural capital accounting remains largely at a pilot, scoping, and methodological development stage. Progress has been constrained by data limitations, and natural capital accounting does not yet appear to be fully institutionalised or comprehensively integrated into the national statistical and planning system. Vietnam has participated in ocean accounting initiatives through the Global Ocean Accounts Partnership, including a pilot project in Quang Ninh Province, and policy dialogue outcomes such as the Ha Long Consensus (2025), which promotes the integration of ocean accounts into decision-making. However, these efforts still appear to be at an early stage rather than a mature national natural capital accounting framework.

The National Action Plan for Transforming the Food System Toward Transparency, Responsibility and Sustainability by 2030 (2023) promotes improvements in food safety, nutrition and sustainable agricultural production, and broader environmental goals such as reducing agricultural emissions. It is complemented by the Strategy for Sustainable Agriculture and Rural Development for 2021–2030, vision to 2050, which provides a broader framework for greener and more climate-resilient agriculture. Vietnam has also introduced complementary policy tools, like the Green Taxonomy Framework (Decision 21/2025/QĐ-TTg) and climate governance measures that can help support sustainable agricultural investment. The framework relies on sector-specific agricultural policies and pilot initiatives. Implementation challenges remain, particularly in scaling sustainable practices among smallholders and improving financing mechanisms.

Vietnam's Payment for Forest Environmental Services (PFES) Programme is a nature-related finance instrument that mobilises recurring payments from ecosystem service users such as hydropower and water utilities to support forest protection and livelihoods for communities that depend on forests. Vietnam also operates an environmental tax framework under the Law on Environmental Protection Tax 2010 and is developing a national carbon market roadmap (Decree 06/2022/ND‑CP). There is no evidence of a national biodiversity finance strategy that directs large-scale funding toward ecosystem restoration.

Vietnam’s post-pandemic economic recovery has focused on structural reforms that can support greener investment, but there has not been a large green stimulus package as such. Power Development Plan VIII prioritises renewable energy expansion and mantains fossil fuels for energy security. By 2025, the State Bank of Vietnam reported substantial growth in green lending, reflecting increased financing for environmentally aligned projects.