IMF, UN offer suggestions for Vietnam’s green, sustainable development

The suggestions were made on the sidelines of the 2025 Autumn Economic Forum, scheduled to take place from November 25 to 27 in Ho Chi Minh City.

Jochen Schmittmann, regional resident representative for the IMF Offices in Vietnam, Cambodia, and Laos, outlined several priorities for Vietnam’s green transition.

He said the government should first create the right incentives for private businesses and the broader economy, for instance by introducing carbon taxes or emissions trading schemes.

He noted that these tools, which Vietnam has already discussed, could help drive companies to cut emissions and move toward cleaner production.

“It is also important in this context for the government to put in place very reliable and good forward-looking regulations so that businesses can plan ahead for the green transition,” Schmittmann stated.

He emphasized the need for stronger investment in the foundations of green transformation, particularly in renewable energy, power grids, and digital infrastructure, stressing that “the government really plays a key role here.”

According to him, future power grids will have to handle much higher loads as Vietnam shifts toward clean energy and expands its digitalization and smart infrastructure.

He also underlined the importance of an inclusive transition, noting that large-scale changes such as green and digital transformation often “create winners and losers.”

Small and medium enterprises, less-developed regions and workers in need of retraining must therefore be supported through skills programs, improved education, and active labor market policies.

Praising Vietnam’s initiative in hosting the Autumn Economic Forum, Schmittmann described the country as a key economic hub in the Indo-Pacific region.

“Vietnam already is a very important economy, one of the largest economies in Southeast Asia, and the growth outlook is very positive,” he commented.

He pointed to Vietnam’s growing role in global trade and production, describing its growth trajectory as highly promising.

To sustain this momentum, he recommended deeper reforms to improve the business environment, particularly for small and medium enterprises, and further streamline administrative procedures.

He also called for financial market reforms, including the development of capital markets to mobilize resources for infrastructure and reduce private sector financing costs, along with long-term investment in higher education and vocational training.

Meanwhile, Pauline Tamesis, UN resident coordinator in Vietnam, highlighted emerging trends in the Southeast Asian country’s green and digital transitions.

She said advanced data systems and artificial intelligence are transforming climate change responses by enabling more accurate forecasting and disaster modeling, improving early warning systems and reducing potential damage.

“Artificial intelligence is aiding the world in making sure that we're able to respond to climate change in a more predictable way, in a science-evidence-based way," she commented.

“And for Vietnam, this is very remarkable because a lot of the climate impacts affect the most vulnerable people.” 

Tamesis also stressed that digital transformation must go hand in hand with sustainability and renewable energy, warning against a ‘dirty’ and unsustainable digital pathway.

She cited figures showing that AI systems and data centers can consume as much energy as 100,000 households, adding that by 2030, the total energy consumption of data centers could be equivalent to that of a country such as Japan.

“So I think climate action and digital transformation come together and we really need to make this dual transition happen in real time,” she stressed.

She reaffirmed the UN’s commitment to supporting Vietnam in its green and digital transformation through knowledge sharing, capacity building, and efforts to help bring Vietnam’s experience and progress to the international community.