Greening ĐổI MớI: An Outlook on the Potential of Green Jobs in Vietnam

8/12/2019 Greening I MI: An Outlook on the Potential of Green Jobs in Vietnam

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Greening IMI:An Outlook on the Potential of Green Jobs

in Vietnam

Nguyen chi Quoc

September 2012

Vietnam succeeded in providing rapid and continuous economic growth, vast poverty reduction,

broad-based improvements and welfare for a majority of the Vietnamese population.

Vietnam is still in a development transition process, a process of structural change that didnt keep

pace with the rapid economic growth in the past.

Although, Vietnam is in absolute terms still a minor polluter, Vietnam is on a trajectory to become

more dependent on fossil fuels and fossil fuel products, which is not sustainable and will lead to

enhanced CO2emission.

Vietnams past economic model is unsustainable and noncompetitive in the long run. Given these

challenges in the socio-economic and socio-ecological sphere one of the central strategic tasks for

the Vietnamese economy is to green iMifor the years to come.


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Greening i Mi: An Outlook on the Potential of Green Jobs in Vietnam

| Nguyen chi Quoc

Table of Contents

Introduction ....................................................................................................................................... 3

1. Vietnams Economic Model and Its Impact on the Environment ................................................. 5

1.1 The foundation and structure of the Vietnamese economic model .................................... 5

1.2 The Vietnamese economic model and its relationship to the environment ........................ 9

1.2.1 Vietnams overall energy trends ............................................................................... 9

1.2.2 Sectoral usage and usage trends with regard to water, land and energy ................. 10

1.2.3 Vietnams efficiency of resource usage in the economic sectors ............................... 12

1.2.4 Vietnams pollution trends in the economic sectors ................................................. 14

1.2.5 Vietnams environmental performance in comparative perspective .......................... 16

1.2.5.1 The Environmental Sustainability Index (ESI) 2005 ........................................ 16

1.2.5.2 The Environmental Performance Index (EPI) 2012 ........................................ 17

1.2.5.3 Adjusted net saving approach .................................................................. 18

1.2.5.4 CO2Emissions ............................................................................................. 19

2. Greening Policies ....................................................................................................................... 19

2.1 Policies that promote resource-intensive economic development ....................................... 19

2.2 Policies that reduce resource intensity and environmental effects ...................................... 20

2.2.1 The legal framework on environmental protection ................................................... 20

2.2.2 Sustainable development - Agenda 21 in Vietnam .................................................. 21

2.2.3 Climate change policies .......................................................................................... 22

2.3 Policies for a green economy ............................................................................................. 22

2.3.1 Green Industry Policy Framework ............................................................................ 22 2.3.2 The Viet Nam National Green Growth Strategy (VGGS) ........................................... 23

2.3.3 Policies for the development of renewable energies ................................................ 24

2.4 Green jobs policies ............................................................................................................ 25

3. Greening Discourses .................................................................................................................. 26

3.1 Situating the discourse on green jobs ................................................................................ 26

3.2 A short history of the relationship between environment and development in Vietnam ..... 27

3.2.1 The discourse on environmental protection ............................................................. 27

3.2.2 The discourse on sustainable development ............................................................. 27

3.2.3 The discourse on climate change ............................................................................. 28

3.2.4 Brief conclusion ...................................................................................................... 29 3.3 The characteristics and structure of the discourse on green economy, green growth and

and green jobs ................................................................................................................. 29

4. Conclusions The Way Forward in Greening iMi ............................................................... 31

References ........................................................................................................................................ 33

About the author ............................................................................................................................... 35


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Boxes

Box 1. Summary of incentives for renewable energy projects ............................................................. 25

Figures

Figure 1. Viet Nams total primary energy demand by fuel type and GDP 1971 - 2007 ........................ 10Figure 2. Intensity of water use by economic sector ............................................................................ 11

Figure 3. Intensity of land use by economic sector .............................................................................. 11

Figure 4. Intensity of energy use by economic sector .......................................................................... 12

Figure 5. Comparison of GDP growth and resource use growth indexes in the sector of agriculture, forestry and fishing (Year 1990 =1) ..................................................................................... 13

Figure 6. Comparison of GDP growth and resource use growth indexes in the sector of industry and construction (Year1990 =1) ........................................................................................... 13

Figure 7. Comparison of GDP growth and resource use growth indexes in the service sector (Year 1990 =1) ................................................................................................................ 14

Figure 8. NOx pollution intensity by economic sector (kg NOx per million VND at constant 1994 prices) 15Figure 9. SOx pollution intensity by economic sector (kg SOx per million VND at constant 1994 prices) 15

Figure 10. CO2 pollution Intensity from consuming fossil fuels (kg CO2 per million VND at constant 1994 prices) ........................................................................................................................ 16

Figure 11. Vietnam: Gross and net savings, 19992008 ...................................................................... 18

Tables

Table 1. GDP at current prices by economic sector and job share of economic sector .......................... 7

Table 2. Technical/professional education and training background of labour force, 2004, in million ... 8

Table 3. Southeast Asian countries ESI ranking ................................................................................... 17

Table 4. EPI detailed data on EPI 2012 ............................................................................................... 17

Table 5. ESI score Southeast Asian countries ...................................................................................... 18


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Introduction

The concept i Mimeans literally changing into something new, something that has been

a constant undertaking in the development of the Vietnamese economy, ever since the start of its

similarly termed economic reform policies in 1986. In the past, the challenge of i Miwas to design an

economic model that would provide overall welfare for the people in Vietnam, something the centrally

planned economy failed to do. The approach taken was to open up the economy and gradually move

the economy toward being based on market economic principles while at the same time aiming at equal

distribution of the benefits of economic growth. The economic model of a socialist-orientated market

economy was born.

Being predominantly rural and one of the poorest countries in the world before the reforms,

i Misucceeded in providing rapid and continuous economic growth, vast poverty reduction, broad-

based improvements and welfare for a majority of the Vietnamese population. Not only did Vietnam

reach lower middle-income status in 2008, furthermore it is on track achieving most of its millenniumdevelopment goals. However, as the Vietnamese economy is maturing, the mechanisms and strategies

that worked in the past will not work in the same way in the future for different reasons. Evidence

shows that the success of the economic model was heavily borne by the environment. Urbanization and

industrialization led to high levels of water and air pollution and high extraction of natural resources,

only counterbalanced to a small extent by higher efficiency. This inefficient use of natural resources

is negatively affecting the comparative advantages of Vietnams economy. In other words, the past

economic model is unsustainable and noncompetitive in the long run. Furthermore, underdeveloped or

unresolved issues in the economy, macroeconomic instability, especially inflation, the development of

the legal and financial system and the rule of law, the building of appropriate infrastructure and the lack

of skilled labor and the demographic pressure on the labor market, add a socio-economic dimension

to the socio-ecological challenges of the Vietnamese economic model. But the Vietnamese economic

model does not only face domestic challenges. Global challenges like the financial crisis and climate

change further exacerbate the situation. The former will affect the export sector of Vietnam; the latter

is significant as Vietnam is one of the most adversely affected countries in the world by climate change.

Given the challenges in the socio-economic and socio-ecological sphere one of the central strategic tasks

for the Vietnamese economy is to green i Mifor the years to come. Hence, the Vietnamese economic

model is once again in need of change to sustain growth and meet overall developmental goals.

This case study, which is part of the Friedrich-Ebert-Foundations global project on the Economy

of Tomorrow, aims to contribute to this strategic task. In the framework of green growth and green

economy, green jobs play a significant role in providing employment that is environmentally friendly and

socially equitable. As a result, green jobs are seen as a means to address the socio-economic and socio-

ecological challenges.

In-depth studies on the thematic of green jobs in Vietnam do not yet exist. However, there is

research from the Asia Business Council (Asia Business Council 2009) that aims to provide

a preliminary assessment through the creation of a green jobs index, which measures

current green employment needs, the market potential of various green industry segments,

labor availability for green jobs, and government commitments to green job policies in

various Asian economies. (Asia Business Council 2009)

In 2009, Vietnam is ranked 13 out of 14 in this green jobs index (China ranks first place and

Japan second place). The authors explain the composition of the index as followed:


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The index is composed of four equally weighted dimensions. Two of them measure green

job market demand: green job postings indicating current employment needs; and green

market potential identifying the main industry segments that can create green jobs. Theother two dimensions measure green job enablers: green labor availability gauging the

number of environmental programs offered by top universities, as well as the number of

science and engineering graduates and managers in private and public enterprises with

potentially transferable skills; and environmental performance according to key international

standards, along with government policies to prepare the economy for green jobs. (Asia

Business Council 2009)

However, the relatively equal weighing of the dimensions is too static to account for the wide

developmental differences of countries that are assessed for the green jobs index. For example, 25% of

the index accounts for green job postings, where developing countries are at a disadvantage; because

industrialized countries are much more mature regarding green labor markets and structures. Moreover,this research does not provide a definition of green jobs, so what counts as a green job, which is a central

element to select the data for the index, is not documented. Finally, although Vietnam is part of the

assessment, no further information is given on the case of Vietnam except its ranking and scoring.

Another ongoing project related to green jobs in Vietnam is a technical assistance project for

research and development on Education and Skills for Inclusive Growth and Green Jobs provided by the

Asian Development Bank (ADB) (ADB 2011). The project focuses on improving and increasing the impact

on the availability of job-oriented courses and skills training, including for green occupations(ADB

2011) in four countries including Vietnam. It aims at timely and effective policies and strategies for skills

development, including green growth(ADB 2011). However, to date no results have been published or

made available. Moreover, the project will solely focus on the skills aspect of Green Jobs and will therefore

not deal with the issue of green jobs in general.

In summary, this study fills a gap in the literature on green jobs in Vietnam, as currently there is no

in-depth study available on the topic of green jobs in Vietnam that assesses Vietnams overall potential in

this field and that aims to guide policy development in Vietnam.

The objective of the study is to identify potential and prospects for Green Industries and Green

Jobs in Vietnam and to develop corresponding policy options. Furthermore, it is the aim of the project to

raise awareness and to bring together different actors from governments, civil society and trade unions in

Vietnam to build up new alliances in the promotion of a just transition towards low-carbon economies.

In this study green jobs are understood according to the definition advocated by the United Nations

Environmental Programme (UNEP) and the International Labor Organization (ILO):

Green jobs can be generically defined as the direct employment created in different

sectors of the economy and through related activities, which reduces the environmental

impact of those sectors and activities, and ultimately brings it down to sustainable levels.

This includes decent jobs that help to reduce consumption of energy and raw materials,

de-carbonize the economy, protect and restore ecosystems and biodiversity and minimize

the production of waste and pollution. (Jarvia/Varma 2011)

As can be seen here, the definition of green jobs includes two dimensions:

a) The environmental dimension (sustainability of economic processes) and

b) The social dimension (decent work).


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This aspect is especially important, as given this definition green jobs can only be achieved if both criteria

are met.

The study is divided into four parts based on the Terms of Reference of the project. The first partdescribes the economic model and its impact on the environment. The second part analyses in general the

policy framework that either hinder or support green economy and green jobs. The third part focuses on

discourses in Vietnam on topics such as green economy, green growth and green jobs. Here, emphasis

is given to the identification of key entry points of the discourse and key partners and their agenda

regarding the support for a socially just and environmentally sustainable economy. The fourth and last

part gives conclusions and general policy recommendations to further take forward the issue of Green

Jobs in Vietnam.

1. Vietnams Economic Model and Its Impact on the Environment1.1 The foundation and structure of the Vietnamese economic model

The most remarkable characteristic of the Vietnamese economy is its speed of transformation,

which can be seen in its high GDP growth in the past. This growth is the result of a combination of

socio-economic policies that were rapidly absorbed by the socio-economic structure and by exploiting

high potential in labor force and natural resources. The high GDP growth is intended by the Vietnamese

economic model to lift Vietnam to modern-industrialized country status in 2020, a goal set in 1996 at

the 8th Party Congress (Van 2012).

The key sector for the overall transformation of the Vietnamese economic model from a centrally

planned economy to a market based economy was the agricultural sector. In the 1980s the agriculturalsector was unable to provide food security for the country, although it was the predominant source for

household income and therefore also absorbed the majority of the labor force in Vietnam. Hence, the

growth of the Vietnamese economy at that time was confined to the productivity gains in the agricultural

sector (Arkadie et. al. 2010).

By de-collectivization, greater freedom in land-use rights and the liberalization of trade, economic

reform policies provided the foundation for a rise in agricultural productivity. This development was

supported by a green revolution in agriculture, a process where infrastructure was enhanced and new

seeds varieties and fertilizers introduced, to improve overall agricultural productivity. Both factors

combined resulted in the tremendous productivity gains of the agricultural sector in Vietnam (Arkadie et.

al. 2010).Indicative for the gains in agricultural productivity was the production of rice. The production and

consumption of rice is significant for Vietnam: On the production side rice has been the most important

crop cultivated in Vietnam throughout its history. This is mirrored on the consumption side where rice

is satisfying the main portion of calorific intake of the Vietnamese people. However, Vietnam was a net

importer of rice until late into the 1980s, a situation that changed rapidly with the successful adoption

of the i Mipolicies. As a result, only a decade later in 1996 Vietnam became by volume the second

largest exporter of rice, a position that Vietnam still retains in 2012.

However, the ascension to the second largest exporter of rice not only exemplifies the tremendous

improvements in agricultural productivity, it also highlights the transition to an export-orientated economy

for two reasons. Firstly, the tremendous productivity gains in the agricultural sector made it possible toexport Vietnamese agricultural products that were well received on the global market. In 2011 the export


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turnover of agro-forestry and fisheries products was approximately $25 Billion among these products

are rice, coffee, rubber, tea, cashew nut, pepper, wood and wooden products and seafood products

(intellasia.net 3rd

January, 2012). Secondly, as agricultural productivity soared as a result of the economicreform policies and an accompanying green revolution, food security was achieved. However, gains in

agricultural productivity due to the technical improvements no longer depended on the labor force.

Hence, the agricultural sector generated a surplus of labor in need of employment. This labor was the

foundation for the rapid industrialization of the Vietnamese economy (Arkadie et. al. 2010).

Furthermore, the i Mi policies did not only focus on the domestic side. Its aim was also to

open up the economy, especially to attract foreign investment. Hence, in 1988 the law on foreign

direct investment (FDI) was promulgated, laying the ground for foreign capital inflows into Vietnam

allowing joint-ventures and foreign-owned enterprises. FDI into Vietnam took advantage of the literate

and cheap labor force the main comparative advantage of the Vietnamese economy by developing a

labor-intensive, export orientated manufacturing sector that absorbed large parts of the labor force hadbeen set free from the agricultural sector and was in need of work. However, a large portion of FDI was

directed to the construction sector where foreign investors expected an increase in demand due to the

economic growth and into the development and exploitation of Vietnams yielding commodities, such as

oil and gas resources (Arkadie et. al. 2010).

In sum, these factors combined over time led to the huge success of the Vietnamese economic

model. The overall transition of the Vietnamese economic model is vividly displayed in table 1. As can

be seen from table 1, agricultural output increased 25 times since 1990 in absolute terms, although the

overall share of the agriculture sector in the economy has almost halved from 38.74% in 1990 to 20.58%

in 2010. Furthermore, the table displays a steady decline in the share of jobs in the agricultural sector

from 62.2% in 2000 to 48.7% in 2010 as less labor is needed in the agricultural sector. However, still

almost half of the labor is employed in the agricultural sector. The correlation between the agricultural

sector and the industry & construction sector can be shown by focusing on the job share. Whereas,

as mentioned above the share of jobs in the agricultural sector has declined, the share of jobs in the

industry & construction has risen from 13% in 2000 to 21.7% in 2010. Hence, the loss of 13.5% in job

share in the agricultural sector has been partly compensated by the increase of 8.7% in the industry &

construction sector. Overall these structural changes are in line with the objectives of the Vietnamese

government to industrialize Vietnam.


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Table 1:GDP at current prices by economic sector and job share of economic sector

Brief excursion: Rapid economic growth and structural change in Vietnam - The Informal sector,

Technical and Vocational Training in Vietnam, Technology in the Vietnamese manufacturing

sector.

Rapid economic growth does not imply that the structural change in the economy is in balance

with economic growth. The examples of the informal sector, the technical and vocational training

(TVET) and technology in the Vietnamese manufacturing sector highlight that Vietnam is already facing

challenges to adapt its structure to the rapid economic growth. Furthermore, in the context of green jobs

the informal sector, TVET and the technical standards of the Vietnamese manufacturing sector play an

important role. Firstly, employment in the informal economy highlights social challenges in employment,

because employment in the informal sector is often precarious and therefore, do not meet the criteria

of decent employment, which corresponds to the social dimension of green jobs. Secondly, the level of

education and the skills of the labor workforce give an indication as to which kind of green jobs can bepromoted and developed in a country. Thirdly, the technology used in the manufacturing sector points

to the possible adoption of greener technical standards.

As a consequence, it is necessary to briefly elaborate on these aspects of the Vietnamese economic

model.

a) The informal sector

The informal sector in Vietnam is an understudied part of the economy. In recent years, research

in this field has grown and indicated that the informal economy is widespread and therefore plays a

predominant role in the Vietnamese economy. Findings show that the informal economy is not only

confined to the agricultural sector. Instead, research revealed that in 2007 82% of the employment in

Vietnam was located in the informal sector. Moreover, the informal sector provided 11 million out of


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a total of 46 million jobs in the economy. 43% of employment in manufacturing & construction are

informal, 31% in trade and 26% in services. It is estimated that 20% of GDP can be accounted to the

informal sector (Cling et. al. 2011). As a result, the informal sector is an important part of the Vietnameseeconomy, not only confined to the agricultural sector.

b) Technical and vocational training in Vietnam (TVET)

Regarding the Vietnamese TVET system there are a few points that are worth highlighting in

the context of the study. Although, the literacy rate is quite high with 92.8% in 2009 (87.6% in 1989)

(ESCAP 2011), this does not necessarily mean that the labor force is well educated, because data shows

that the higher the education the less people participate in Vietnam. For example, 75% of children are

likely to complete lower secondary education and 57% upper secondary level (GIZ 2008). However, the

real challenge for the TVET system in Vietnam is to provide high quality, relevant, labor market orientated

TVET for a large number of the labor force. According to data from the Ministry of Labor Invalids and

Social Affairs (MOLISA) see table 2, in 2004 75% of the labor force was unskilled, only 3.5% of the laborforce had a certificate and only 5.4% had an academic education background. As a consequence, there

is a shortage of skilled and educated staff on the labor market, which results in productivity that is only

half of the ASEAN average. This significantly affects competitiveness (GIZ 2008).

A further conclusion is that the current labor force is not sufficiently prepared for potential Green

Jobs, as a Green Jobs labor market will demand a more skilled and educated labor force that is lacking

in Vietnam. In addition to that, the pressure on the labor market in Vietnam will increase, because the

labor force in Vietnam is growing rapidly, every year more than one million young people join the labor

market (GIZ 2008). The government is challenged to not only increase the skill levels of the current labor

force, but also to create millions of jobs every year.

To sum up, the quality of the labor force in Vietnam lags behind peer countries in the region

and there is a need to catch up to stay competitive in general, not to mention the demands that a green

economy has on TVET.

Table 2:Technical/professional education and training background of labour force, 2004, in million

Source: Molisa 2006a taken from (GIZ 2008)

c) Technology in the Vietnamese manufacturing sector

One of the main reasons for the vast environmental pollution in Vietnam can be highlighted

when looking at the manufacturing sector. The manufacturing sector in the Vietnamese economy uses

technology that is backward and outdated, which as a result, not only consumes more energy, but also

produces more waste and pollution. Furthermore, the technology used is not competitive to technologiesused in other peer countries of the region.


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According to Van (Van 2012):

Most machines and technology assembly (76%) were made during the 1950-1960 period. The

overall machines and equipment situation in Vietnam now may be stated as 10% modern, 38% medium,52% outdated (Nguyen The Nghia 2007). Due to the use of outdated technologies, local enterprise

production expenditures are 10-30% higher than the world average expenditure.

In addition, technology that is in place for environmental protection does not work efficiently,

by 2009, only 43% of industrial zones had waste water treatment works and a large number of those

did not operate efficiently (MONRE, 2010 in Van 2012).

These examples highlight that Vietnam is still in a development transition process, a process of

structural change that didnt keep pace with the rapid economic growth in the past.

1.2 The Vietnamese economic model and its relationship to the environmentThere are two aspects where the Vietnamese economic model and the environment interact. On

the one hand, the current economic model relies heavily on resources that the environment provides and

on the other hand, the current economic model has a considerable impact on the environment. Although

Vietnam is in absolute terms still a minor polluter, several environmental indicators highlight that this is

changing rapidly. For example, the per capita CO2emissions are still low with 1.2 tons per capita in 2008.

However, Vietnam has the highest growth rate in CO2emissions in Southeast Asia, 9.6% in 2008 (ESCAP

2011).

This following section will elaborate in more detail on the relationship between the economic

model of Vietnam and the environment. Firstly, a brief overview on Vietnams overall energy trends will

be given. Secondly, a sectoral view on trends and resource usage regarding water, land and energywill be presented. Thirdly, Vietnams efficiency of resource usage in the economic sectors will be

displayed. Fourthly, Vietnams pollution trends in the economic sectors will be outlined. Lastly, Vietnams

environmental performance in comparative perspective will be assessed.

1.2.1 Vietnams overall energy trends

Vietnams energy demand has increased considerably with rapid economic growth. From 1998

to 2009 average annual growth rate of energy was between 12%-14.6% (Nguyen 2011). This trend will

continue in the future with demand growing in 2005-2025 at a rate of 9.9%-11.2%. Most notably, the

share of fossil fuels in total energy consumption has risen from 20% in 1991 to 54% in 2000 (UNDP

2012), see figure 1.


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Figure 1:Viet Nams total primary energy demand by fuel type and GDP 1971 - 2007

Source: IEA (2010), World Bank (2010b) taken from (UNDP 2012)

Energy intensity in Vietnam declined by 35% from 1991 to 2008, but this rate was around 13%

higher than the average in other middle-income countries. In sum, Viet Nam uses less energy per-

person than most middle-income countries, but it does that less efficiently (UNDP 2012). Furthermore,

Continued exponential growth is expected in primary energy demand, and it is expected that this will

be met mainly by fossil fuels, i.e. for electricity generation (section 2.1.1) and refined petroleum products

for various uses (section 2.1.2) (UNDP 2012). However, Vietnam is not able to meet the demand on

its own. For example, Vietnam will become a net importer of coal by 2030 (UNDP 2012). As a result,

Vietnam is on a trajectory to become more dependent on fossil fuels and fossil fuel products, which is

not sustainable and will lead to enhanced CO2emissions.

1.2.2 Sectoral usage and usage trends with regard to water, land and energy

As has been shown, the agricultural sector and the industry & construction sector play a major

role in the Vietnamese economy. Hence, it is not surprising that both sectors alternate in their role as the

main resource intensive sectors in the Vietnamese economy.

Regarding water the agriculture-forestry-fishery sector has the highest intensity in using water,

although it has decreased by 46% from 1990 (1,119 m3[unit: Water m3per million VND (at constant

1994 prices]) to 2007 (603 m3) as a result of the green revolution rather than by a change of farmers

practices. The industry & construction sector was the second largest consumer of water. Contrary, to the

agriculture-forestry-fishery sector the water usage intensity has increased by 30% from 1990 (160 m3)

to 2007 (203 m3) in the industry & construction sector. This was caused by an industrialization process

that emphasized growth in water-intensive industries, which accounted for 52.4% of industrial output

in Vietnam (UNESCAP/CIEM 2009), see figure 2.


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Figure 2:Intensity of water use by economic sector

Source: (UNESCAP/CIEM 2009)

With a view to land usage, all economic sectors had a tendency to decrease their land usage

intensity. The agriculture-forestry-fishery sector has, by far, had the most intensive usage of land compared

to all economic sectors in Vietnam and even compared to the overall economy since 2000. Interestingly,

the service sector was able to rapidly decrease the intensity of land usage from 1990-2007, from 152 m2

to 53 m2in order to create one million VND of value added in services. It is likely that this was the result

of an enormous growth in the service sector thereby reducing the land intensity usage (UNESCAP/CIEM


Figure 3:Intensity of land use by economic sector


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Finally, energy usage is led by the industry & construction sector. During the years between 1990

and 2007 energy usage fluctuated. However, since 2000 the industry & construction sector surpassed

and grew stronger than the national average. Overall the energy consumption of the agricultural-forestry-fishery and service sectors is seven times lower than the industry & construction sector, nevertheless,

both sectors have an upward trend in energy usage (UNESCAP/CIEM 2009), see figure 4.

Figure 4:Intensity of energy use by economic sector


In sum, there is a mixed picture regarding the usage trends of water and land. However, there

is a general trend that energy usage increases in the agriculture-fishery and forestry sector and the

Public & Services sector. The industry & construction sector has a volatile and very high level of energy

consumption.

1.2.3 Vietnams efficiency of resource usage in the economic sectors

The measurement of the efficiency of resource usage of the sectors is based on comparing

the growth in resource use to the value added (value measures in GDP). In the agriculture-fishery and

forestry sector the increase in land and water usage was below the increase in value added. In contrast,

the increase in energy usage was always higher than the increase in value added, although, in 2004 the

energy efficiency in this sector has improved considerable breaking the upward trend (UNESCAP/CIEM



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Figure 5: Comparison of GDP growth and resource use growth indexes in the sector of agriculture, forestry and fishing

(Year 1990 =1)


For the industry-construction sector the use of energy and water correlated almost equally with

the value added. Nevertheless, in the period of 2004-2007 there was an increase in energy use, which

seems to have been reversed in 2007 (UNESCAP/CIEM 2009), see figure 6.

Figure 6: Comparison of GDP growth and resource use growth indexes in the sector of industry and construction

(Year1990 =1)


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The trends in the service sector show that it managed to increase land usage more slowly than

the value added and was able to reverse the upward trend in 2004. However, the trend in energy usage

was much higher than the trend in value added (UNESCAP/CIEM 2009), see figure 7.

Figure 7:Comparison of GDP growth and resource use growth indexes in the service sector (Year 1990 =1)


Overall, these indicators suggest that the economic sectors tend to improve their water and

land usage in line with value added. However, no sector was able to significantly reverse or decouplethe correlation. The usage of energy, in contrast, was either in line with value added or above, which

highlights that no economic sector was able to improve energy efficiency considerable or decouple it

from GDP growth.

1.2.4 Vietnams pollution trends in the economic sectors

The agriculture, forestry and fishery sector was the strongest NOxpolluter, although from 1990-

1995 there was a slight downward trend. This changed significantly since 1996 peaking in 2007 with

3.4 kilos per VND one million of value added. The explanation is that farmers began to use fertilizers

excessively without the proper measurement (UNESCAP/CIEM 2009).

The NOxpollution in the industry-construction sector is considerable lower, but shows an upwardtrend. Overall NO

xpollution increases on the national level (UNESCAP/CIEM 2009) see figure 8.

0.00

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Index of energy use in public and serv ice

sectorIndex of land use in public and service sector

Index of value added in the sector


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Figure 8:NOxpollution intensity by economic sector (kg NOx per million VND at constant 1994 prices)


The main SOxpolluter is the industry-construction sector. Starting on a high level in 1990 it

halved until 2007. One explanation for this success is that thermo-electricity plants were restricted in

favor for hydropower plants. Overall, this reduction led to a significant reduction of SOxpollution on the

national level. The other economic sectors were not major SOxpolluters and their trends are quite stable

(UNESCAP/CIEM 2009), see figure 9.

Figure 9:SOxpollution intensity by economic sector (kg SOx per million VND at constant 1994 prices)


0.00

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National wide

Agriculture, fo restry

and fishery secto r

Industry and

construction sector

Public and service

sector

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National wide

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fo restry and

fishery secto r

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construction

sector

Public and service

sector


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The industry-construction sector was also the top CO2polluter. However, there was no clear

trend from 1990-2007. The agriculture-forestry-fishery and services sector had both an increase trend in

CO2

emissions, albeit from a lower level. Overall the national CO2

emissions increased. This is explainedby a higher demand of fossil fuels especially from the industry-construction sector given the growth

and industrialization processes. Furthermore, this sector uses outdated technology that was less energy

efficient thereby emitting higher amounts of CO2(UNESCAP/CIEM 2009), see figure 10.

Figure 10:CO2pollution Intensity from consuming fossil fuels (kg CO2 per million VND at constant 1994 prices)


In summary, in the case of SOx pollution Vietnam was successful in significantly reducing the

pollutant. However, there is an increase in NOxand CO2pollution with a tendency to grow further in the

future.

1.2.5 Vietnams environmental performance in comparative perspective

Vietnams environmental performance in comparative perspective will be assessed through four

indicators. I) The Environmental Sustainability Index (ESI) 2005; II) The Environmental Performance Index

(EPI) 2012 and; III) adjusted net savings approach; IV) CO2Emissions.

1.2.5.1 The Environmental Sustainability Index (ESI) 2005

The Environmental Sustainability Index (ESI) benchmarks the ability of nations to protect

the environment over the next several decades. It does so by integrating 76 data sets

tracking natural resource endowments, past and present pollution levels, environmental

management efforts, and the capacity of a society to improve its environmental performance

into 21 indicators of environmental sustainability. These indicators permit comparison

across a range of issues that fall into the following five broad categories:

Environmental Systems

Reducing Environmental Stresses

Reducing Human Vulnerability to Environmental Stresses

Societal and Institutional Capacity to Respond to Environmental Challenges

Global Stewardship (Esty et. al. 2005)

0.00

0.05

0.10

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0.20

0.25

1990

1991

1992

1993

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1996

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1998

1999

2000

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2002

2003

2004

2005

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2007

National w ide Agriculture, forestry and fishery sector

Industry and construction sector Public and service sector


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Regarding the ESI, Vietnam ranks No. 127 (out of 146) on global comparison and No. 98 (out

of 117) in non-OECD countries. In comparison with other Southeast Asian nations Vietnams ranks last

together with the Philippines. In sum, Vietnam seems to underperform in this benchmark, see table 3.

Table3:Southeast Asian countries ESI ranking

Source: (Esty et. al. 2005)

1.2.5.2 The Environmental Performance Index (EPI) 2012The Environmental Performance Index ranks countries on performance indicators trackedacross policy categories that cover both environmental public health and ecosystem

vitality. These indicators provide a gauge at a national government scale of how close

countries are to established environmental policy goals. (Yale University last accessed

08.03.2012)

Overall, Vietnam ranks No.79 (out of 132) scoring 50.6 points. In the respective categories

Vietnam tends to be in either in the middle or in the lower third, with the only exception of the category

of water resources (Ecosystem Effects). Furthermore, Vietnam underperforms regarding Air (Effects on

Human Health). In comparison to other SEA countries, Vietnam underperforms with Indonesia on No.74

the next competitor to Vietnam and Malaysia on No.25 with the best performance, see table 4. In

summary, Vietnam is ranked in the lower area of the second third of the EPI ranking, but underperforms

in comparison to other SEA countries, see table 5.

Table 4:EPI detailed data on EPI 2012

Source: (Yale University last accessed 08.03.2012)


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Table 5:ESI score Southeast Asian countries

Source:(Yale University last accessed 08.03.2012) compiled by author

1.2.5.3 Adjusted net saving approach

The Adjusted net saving approach

adds the investment of resources in education (as recurrent expenditure), but subtracts

for costs for air pollution (the cost of particulate matter damaging human health) and

the generation of carbon dioxide that contributes to climate change. It also subtracts

the depletion of minerals and forest resources above sustainable yield. The income from

them represents the depletion of a resource, not sustainable income. The result is a large

differential between the traditional savings measure (gross savings as percentage of the

gross national income (GNI)) and the adjusted savings. (WB 2010)

Although, Vietnam has a surplus net saving of 10-17% rate of GNI in the last decade it doesntperform as well as the entire lower-middle-income group. Furthermore, the East Asia & Pacific Group has

an even higher surplus of 29%. For example in 2008 China had 35% and the Philippines 22%. Altogether,

Vietnam lags behind when compared to its peer group of other lower-middle-income groups.

Figure 11:Vietnam: Gross and net savings, 19992008

Source: Adapted from World Bank 2010g in (WB 2010)


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1.2.5.4 CO2Emissions

As has been mentioned above, Vietnams CO2emissions per capita are quite low. This makes

Vietnam the fifth (of 11) lowest emitter per capita in SEA. However, with an annual percentage change

of 9.9% in 1990-2000, 11.3% in 1995-2005, 11.1% 2000-2008 and 9.6% in 2008 it had the highest

growth rates of all countries in SEA. In absolute terms (tons of CO2emissions), Vietnam ranked fourth in

SEA in 2008 (ESCAP 2011).

In sum, Vietnams CO2emissions rank in the middle compared to other SEA countries. However,

the current trajectory of Vietnams CO2emissions is quite alarming as it has the highest growth rates of

CO2 emissions in SEA.

2. Greening Policies1

2.1 Policies that promote resource-intensive economic development

The energy sector is the most important sector for Vietnams continued economic growth. Cheap

energy is the element that keeps the economy running. As a result, the Vietnamese government has put

policies in place to secure cheap energy. However, these policies are detrimental for the environment and

not sustainable in the long run, as these subsidies promote the intensive usage of energy and drain the

financial resources of the government. In addition, Vietnam is on a trajectory to get more dependent on

foreign energy resources in the future, energy resources that are becoming scarcer and more expensivewith a high volatility of prices.

Although, subsidy policies are understudied, a recent UNDP study (UNDP 2012) revealed the

various subsidy mechanisms in the energy sector. The research states that

Electricity prices are capped and differentiated for different users. Domestic coal prices

are set below world market prices in order to enable cheap electricity production and

manufacturing. There are also price ceilings in the refined petroleum markets, and there

are various taxes and tax waivers. Direct subsidies are exceptions but have happened.

(UNDP 2012)

These subsidies not only lead to more energy intensity, but also cost the government about 1%

to 4% of GDP in current USD (UNDP 2012). Furthermore, it is estimated that the electricity tariff of 7USc/

kWh in 2010 is below the average price of 10USc/kWh in the ASEAN region (UNDP 2012). In addition

to that, potential investors for the energy market are deterred, since this electricity tariff needs to be

increased at about 15-30% above inflation to be profitable (UNDP 2012).

The energy market in Vietnam is nevertheless functional, because the largest energy companies:

Electricity Vietnam (EVN), Vinacomin (Coal) and Petrolimex (Oil) are state-owned enterprises that have

1 This account is not exhaustive, as the Vietnamese government on the national and provincial level produces a vast amount ofpolicies that impact upon the envionment that would require a comprehensive reasearch on its own.


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a monopolistic dominance over the market and are controlled by the government, although, a slow

reform process is taking place. Among other policies, the Electricity Law of 2004 aims at reforming the

market.

However, political considerations are still an important element in the Vietnamese energy sector.

For example, in 2009 a price stability fund was created to deal with rising prices. This fund was financed

with fees for sold petroleum products per litre. Nevertheless, in early 2011 funds were exhausted and

initial price liberalisation was halted to cope with inflation (UNDP 2012), which highlights that tackling

inflation was considered an important objective where the energy sector had to contribute its part.

Furthermore, this example shows that these subsidy policies can quickly reach their limits in a world of

volatile prices for fossil-fuels.

In conclusion, the energy sector displays that there are subsidy policies at place in Vietnam that areencouraging resource consumption. The main reason for these policies is to secure the cheap production

of energy to support economic growth.

2.2 Policies that reduce resource intensity and environmental effects

2.2.1 The legal framework on environmental protection

The main policy instrument to reduce resource intensity and environmental effects in the

Vietnamese economy is the National Law on Environmental Protection, which was passed in 1993.

The law was the result of strategic research done by Vietnamese experts with international support bygovernment order since 1980. The law covered the following areas:

the general duties of various administrative bodies; protection and abatement of pollution

generally; the requirement for environmental impact evaluation; the establishment

of environmental standards; broad import and export criteria; the requirements for

exploration, transportation, processing, or storage of various toxic or hazardous sub-

stances; the location of potentially hazardous industries; a list of prohibited behavior or

activities; remedies for environmental degradation or pollution; the system for addressing

noncompliance and for rewarding compliance; and the implementation of international

treaties and international cooperation. (Bryant/Akers 1999)

However, the environmental law is not the only law to address environmental issues. Sectoral

laws such as the Law on Forest Protection and Development (1991), the Law on Land (1993), the Mineral

Law (1996), and the Law on Water Resources (1999) partly overlapped with the environmental law. The

environmental law was revised in 2005 in order to provide for more coherent environmental legislation,

as implementation of the laws was hindered by a lack of coherence (Quitzow/Br 2011). The latest law to

be passed to protect the environment is the Environmental Protection Tax Law in November 2010, a law

under consideration since 2004. This law aims at establishing disincentives for the creation of polluting

materials by imposing a tax on coal and oil-based fuels but also on plastic bags, HCFC, pesticides andother chemical products (Quitzow/Br 2011).


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Altogether, the Vietnamese government has set up a quite comprehensive legal framework for

the protection of the environment. However, the main challenge for this legal framework lies in the

implementation, which is not effective enough so far. One of the main reasons for this is that the law

enforcement doesnt work effectively and efficiently and if enforced the sanctions are not high enough

to deter the polluters from repeated violation of the environmental law. The lack of law enforcement

is caused by limited capacities of staff, especially at the local level. Furthermore, an underdeveloped

awareness for environmental issues by business operators leads to ignorance regarding the production

of waste and pollution. However, weak implementation can also be explained by looking at the legal

framework. For example, guidance and operationalization of the laws are insufficient. The framework still

has limitations and gaps. Furthermore, the framework is not flexible enough to respond to requirements

on the ground. In addition to that, governments on all levels seem to fail in management and coordination.

Awareness is still low and the bureaucratic process is formal and cumbersome.

2.2.2 Sustainable development - Agenda 21 in Vietnam

In 1992 a Vietnamese delegation that was represented by the National Environment Agency,

which was part of the Ministry of Science, Technology and Environment (since 2002 Ministry of Natural

Resources and Environment (MONRE)) participated in the Earth Summit in Rio de Janeiro, Brazil.

Agenda 21, the development of strategies for sustainable development was endorsed by the Vietnamese

government, which as a result led to initiatives that started in 2000 in this field.

In 2001, with international technical and financial support a project on Support to Formulation

and Implementation of the Vietnam Agenda 21 was initiated. This project aimed at giving guidance

through capacity building, awareness raising and policy research for the development of Agenda 21 in

Vietnam on the national and the local level (Pellini 2008). The project finally concluded in the building

of a legal foundation for a more comprehensive concept of development in government policies in

2004, the so-called Strategic Orientation for Sustainable Development (Vietnam Agenda 21). An initial

success of the Agenda 21 was that it apparently influenced the Socio-economic development plan for

2006-2010 in approaching industrialization and modernization in Vietnam by rapid and sustainable

development (Pellini 2008).

To implement Vietnam Agenda 21 a Sustainable Development Office (Agenda 21 Office) was

created located in the Ministry of Planning and Investment (MPI). The office was tasked with devising

action programs and plans to facilitate projects in the field of sustainable development. In 2005 the

National Council on Sustainable Development (NCSD) was established, tasked with leading the Agenda

21 Office. The NCSD had the minister of MPI as standing vice chairman and the deputy prime minister

as chair. Furthermore, members of all line ministries, and members of the most important committees

of the Communist Party are invited to the Council, which show that sustainable development is dealt

with holistically (Pellini 2008). However, the institutional settings generated by the Vietnam Agenda 21

and its given tasks have appeared dysfunctional since then. Neither a five year plan nor an annual work

plan was produced by the Agenda 21 office, which could be due to the limited capacities to support theprovincial planning (Pellini 2008).


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2.2.3 Climate change policies

Vietnam has ratified the United Nations Framework Convention on Climate Change (UNFCCC) in

1994, and the Kyoto Protocol in 2002. In December 2008, the national target programme to respond to

climate change (NTP-RCC) has been approved, which was drafted by the Ministry of Natural Resources

and Environment (MONRE), the ministry responsible for climate policies. The NTP-RCC sets the foundation

for responding to climate change through research, planning and communication. Its linkages to socio-

economic planning and implementation are therefore less strong (Fortier 2010). However, the NTP-RCC

highlights that an effective response to climate change is necessary to ensure sustainable development and

it emphasizes the need to mainstream climate change into the socio-economic development strategies.

Furthermore, it stresses the need to develop a low-carbon economy.

Building on the NTP-RCC the National Climate Change Strategy (NCCS), which was approved inDecember 2011, is the policy document that builds the foundation for the implementation of a climate

change response in Vietnam. Most notably, the NCCS considers a low-carbon economy and green

growth as the guiding approaches for achieving sustainable development. Furthermore, throught the

NCCS Vietnam commits itself to the reduction of GHG emissions, although, adaptation will be prioritized

at the beginning.

The NCCS comprises 10 strategic tasks that predominantly focus on climate change response.

However, the contents of the strategic tasks are also partly in line with the creation of a green economy.

For example, strategic task number 5: GHG emission reduction to protect global climate system refers

to thematic sections of the strategic tasks that if effectively implemented would have a considerable

positive effect on the environment. These thematic sections are the Development of new and renewable

energies, Energy saving and efficiency, Industrial production and construction, Transportation,

Agriculture, and Solid waste management. However, it is too early to assess the effectiveness of the

NCCS as its impact cannot be assessed, since it is a quite young policy.

2.3 Policies for a green economy

2.3.1 Green Industry Policy Framework2

Vietnam is in the process of drafting a Green Industry Policy Framework (GIPF) with thesupport of the United Nations Industrial Development Organization (UNIDO). GIPF is part of the project

Environmental Policy Advice: green industry development. It is in the area of responsibility of the

Ministry of Industry and Trade (MOIT). The aim of the GIPF is to support the implementation of the goals

set by the Congress XII of the Viet Nam Communist Party by developing and creating a green industry and

by greening the existing industry. Greening industry means ensuring that all industries, regardless

of sector, size, ownership, markets and location, continuously improve their environmental performance

and resource productivity, whereas Creating green industries mean stimulating the development and

creation of industries that deliver environmentally-friendly goods and services.

2 Informations for this section are taken from a Consultation Workshop on Green Industry Policy in Hanoi, 12th March 2012where the author participated.


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The GIPF aims at:

reducing the intensity of consumption of resources in industry,

reduction of intensity of waste, pollution and emission in industry and the proper management of it,

development of an industry that is able to provide products that meet environmental standards.

As this framework is in the consultation process, it is too early to speculate on its impact. However,

the framework highlights that Vietnam is also active in developing a green or greener industry.

2.3.2 The Viet Nam National Green Growth Strategy (VGGS)

The National Green Growth Strategy has been in development since the beginning of 2012. The

VGGS was submitted for approval to the prime minister in June and was approved in September. With

the development of the VGGS the Government has acknowledged the need to address the environmental

and socio-economic challenges mainly by focusing on changing the growth model, as the old growth

model is not sustainable. The VGGS is informed by the example of other countries that were able to

decouple their economic development from their environmental footprint by changing production and

consumption structures.

Green growth is seen as an appropriate development path, which is compatible with the

adjustment needs of the Vietnamese growth and economic model. In the VGGS Green growth is a key

pillar of sustainable development to ensure fast, efficient and sustainable growth while making a great

contribution to the implementation of the national climate change strategy (The Socialist Republic of

Vietnam 2012).

The VGGS addresses the process of economic restructuring towards more sustainable usage of

natural resources and with it the reduction of GHG emissions. Furthermore, it aims at socio-economic

improvements for the people of Vietnam. One overall objective and three specific objectives guide the

VGGS:

a) Overall Objective:

Green growth, as a mean to achieve the low carbon economy and to enrich natural capital,

will become the dominant trend in sustainable economic development which requires that

mitigation of greenhouse gas emissions and increased capability to capture greenhouse gas

are gradually becoming essential indicators in social-economic development.

b) Specific objectives:

- Economic restructuring and institutional improvement by greening existing sectors and

encouraging the efficient utilization of natural resources and energy by sectors aiming at

achieving higher added values;

- Conduct researches and enhance application of appropriate advanced technologies to more

efficiently use natural resources, reduce greenhouse gas emissions and to contribute to an

effective response to climate change;


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- Improving peoples living standards and creating environmental friendly lifestyle through job

generation from green industry, agriculture and services; investment in natural capital; and

development of green infrastructure.

(The Socialist Republic of Vietnam 2012)

To achieve these objectives the VGGS is divided into three strategic tasks:

1. Reduce the intensity of greenhouse gas emissions and promote the use of clean and renewable

energies;

2. Greening production;

3. Greening lifestyle and promoting sustainable consumption.

These three strategic tasks are accompanied with a catalog of solutions and measures thatshow in high detail how green growth will be addressed in Vietnam. As a result, the VGGS emphasizes

implementation, a failure of former policies and therefore is a highly promising policy to establish a

green economy in Vietnam. It is the aim of the VGGS to develop a guiding document for all stakeholders

in Vietnam to address the issue of green growth. As a consequence, the VGGS demands that other

stakeholder develop their respective action plans in this field.

2.3.3 Policies for the development of renewable energies

Given the rapid growth of the economy, Vietnam is in need of developing various energy

resources. It is known that Vietnam is endowed with large fossil-fuel energy resources. However, at the

current consumption and production trajectory Vietnam will become a net importer of these resources

in the future. Nevertheless, Vietnam also has available a fair potential of renewable energy resources.

According to data from the GIZ wind project:

Biomass from agricultural products and residues is available at equivalent to 10 million

tons of oil a year. Biogas energy potential is approximately 10 billion m3 a year, which

can be collected from landfills, animal excrements and agricultural residues. The technical

potential of small hydropower (


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Box 1:Summary of incentives for renewable energy projects

2.4 Green jobs policies

In Vietnam currently there are no policies that target the creation of green jobs directly. However,

there are several policies that relate to green jobs or that indirectly lead to the creation of green jobs as

can be seen from the analysis in 2.3. Furthermore, the VGGS refers to green jobs in the context of green

growth, without providing a dedicated strategy or analytical framework to address green job creation or

the greening of jobs.

Another policy that also refers to Green Jobs is the, still under draft, Vietnam Employment

Strategy (ES). The ES could be a good place to put more emphasis on Green Jobs development in

Vietnam. However, it fails to do so in the current draft version. The ES implements directions of the Socio-

economic development strategy 2011-2020 in the area of labor market. The current fourth draft of the

ES puts its emphasis on the issue of decent work, given its objective of decent work for all. Therefore,

among other things it also aims on promoting workers out of informality. Although, the fourth draft

of the ES does include some sections on Green Jobs, it fails to provide a definition of what is meant by

Green Jobs and fails to develop a comprehensive framework for developing green jobs. In other words,

there is no effort to conceptually integrate the decent work aspect with the environment. However,

the ES does integrate the issue of environmental sustainability and states in 2.1.7:

Green Jobs for development and environmental sustainability

A move towards green jobs will contribute towards a low-carbon economy, use

of clean and renewable energy, resource efficiency , conservation of forests, reduced

environmental pollution, enhanced solid waste management and pollutant management

and a mitigated impact of industrial development on climate change.

These measures and the adaptation to climate change itself by the locations, economic

sectors and social groups most affected, have far reaching implications for production andconsumption patterns and, therefore, for employment, incomes, and poverty patterns.


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These long-term transformations are likely to alter the structure of employment towards

sustainability, create new jobs, to reduce labour surplus and, more in general, to positively

affect the world of work on several aspects, from health and safety improvements to work

organization and production patterns and value chains. Therefore, this strategy requires

broad consensus among institutional actors at the province and district levels, and social

dialogue mechanisms will have to ensure harmonious industrial relations for developing

strategies for such transformations that are both efficient and equitable. These long-term

transformations will entail transitions towards green jobs and greener enterprises (The

Socialist Republic of Vietnam 2012).

Other references can be found in the draft of the ES. However, the current draft of the ES seems

to be vague and unclear about the concept of Green Jobs. Furthermore, no actions are outlined tocreate Green Jobs. In sum, to date there are no explicit policy documents that address the creation of

Green Jobs with a systematic approach.

3. Greening Discourses

3.1 Situating the discourse on green jobs

i Mi is not only the term for the socio-economic reform policies that started in 1986, the

concept has also became the grand narrative for discourses on socio-economic development in Vietnam

ever since. One of the prevalent strands of the i Mi discourse centers on the subject matter of

economic growth, which is also the central concept that links and integrates the discourses on green

growth and green economy into the grand narrative. The debates about green jobs are a more recent

extension to the green growth and green economy discourse that only emerged in the last few years. In

order to better understand and situate the debates about green jobs it is worthwhile having a closer look

at the concept of economic growth in the overall developmental discourse of Vietnam and how green

growth and green economy are attached to it.

Economic growth has been and still is one of the prime developmental objectives for Vietnam.

Since the first socio-economic development strategy (SEDS) (the key policy document outlining the socio-economic developmental priorities) economic growth has been a central aim. All three socio-economic

development strategies (1991-2000, 2001-2010, 2011-2020) that Vietnam has had so far commonly

targeted significant GDP growth.

In the first SEDS for 1991-2000 the target was to double the gross domestic product (GDP) of

Vietnam in 2000 compared to 1990. This is set forth in the SEDS for 2001-2010 where the GDP growth

also aimed at doubling in 2010 compared to 2001 and lastly, the SEDS 2011-2020 maintained this goal

by aiming to reach a GDP in 2020 equal to 2.2 of that in 2010.

Prima facie there is no difference between the SEDS when looking at the quantitative targets foreconomic growth. Quite the contrary the endured objective of effectively doubling the GDP every ten


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years highlights the primacy attached to economic growth in government policies. However, differences

can be found in how the aim of economic growth is framed, which is also the entry point for the

discourses on green economy, green growth and green jobs.

Economic growth was framed in the first SEDS in the context of leading a country out of a socio-

economic crisis and stabilizing the macroeconomic balance (Nguyen 2006). Although, in the second SEDS

economic growth was framed in a context of establishing a socialist-orientated market economy and in

laying the foundations for a modern industrialized country by 2020, it was the first time that sustainable

development and environmental protection where referred to in the context of economic growth. The

third SEDS frames economic growth in the context of finally lifting Vietnam to industrialized country

status. Interestingly, it also brings further economic growth, by not only attaching it to environmental

protection, but also by referring to green economic development and by demanding a shift of the pastgrowth model.

In short, the concept is evolving and among other drivers, one of the main drivers of this

evolution is the environmental consideration in the plans, although they also clearly relate to economic

considerations.

The next section will provide a short history of how environmental issues became part of the

developmental discourse, which will reveal that a paradigm shift in the understanding of economic

growth is actually under way. As said before, this paradigm shift is the entry point for the discourses on

green growth, green economy and green jobs.

3.2 A short history of the relationship between environment and development

in Vietnam

In the past there were three broad discursive strands that influenced the discursive relationship

between environment and development in Vietnam that are complemented in recent years by the

discourse on green economy, green growth and green jobs.

The first is a discourse on environmental concerns and its protection that was initiated on the

national level already before i Mi, the second is a discourse on sustainable development that started

with the Earth Summit in Rio de Janeiro in 1992 and the third discourse being the discourse on climate

change that dated back into the 1980s, but got prominent at the beginning of the 21st century in

Vietnam.

3.2.1 The discourse on environmental protection

In 1980, the basic foundations for environmental policies were laid in Vietnam, when the

subject environment was considered strategically by the government and first research on the issue was

undertaken. 1981 marked the start of a government initiative the National Resources and Environment

Research Programme to assess environmental challenges and approaches to solve them. The programme

concluded that Vietnam required a legal environmental framework, especially for environmental


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protection. Interestingly, environmental issues gained further traction with the introduction of i Mi,

when environmental concerns accompanied the economic opening of the country (Bryant/Akers 1999).

A first milestone was reached in 1992 when the National Plan for Environment and Sustainable

Development 1991-2000: Framework for Action was approved. The plan was requested by the

government and designed by Vietnamese scientists with international support. Based on prior work

the plan provided the rationale for the development of a legal framework on environmental issues and

the administrative structure for law implementation. The legal framework in the form of the Law on

Protection of the Environment was passed in December, 1993 (Bryant/Akers 1999). The law was revised

in 2005. In 2010, the Law on Environmental Protection Tax, in development since 2004, was passed.

In sum, environmental considerations were always part of the developmental discourse and have

resulted in corresponding policies.

3.2.2 The discourse on sustainable development

Environmental concerns also ranked high on the agenda at the global level during the time when

Vietnam began to initiate a legal framework for environmental protection. The Earth Summit was held

in Rio de Janeiro, Brazil in 1992, where a Vietnamese delegation from the National Environment Agency,

which was part of the Ministry of Science, Technology and Environment (in 2002 this became the Ministry

of Natural Resources and Environment (MONRE)) participated. The conference in Rio highlighted the

interrelationships between the environmental, social and economic sectors and the need to integrate them

in planning, calling nations to deploy strategies for sustainable development, the so-called Agenda 21.Agenda 21 was also endorsed by the Vietnamese government, a process that started in August

2000. In 2001, with international technical and financial support the project on Support to Formulation and

Implementation of the Vietnam Agenda 21 was initiated. The project was carried out by the department

of Science, Education, Natural Resources and Environment in MPI and aimed at giving guidance through

capacity building, awareness raising and policy research for the development of Agenda 21 in Vietnam

on the national and the local level (Pellini 2008). In August 2004 the Strategic Orientation for Sustainable

Development (Vietnam Agenda 21) was approved building the legal foundation for a more comprehensive

concept of development in government policies.

Interestingly, (Pellini 2008) shows how Agenda 21 has actually influenced and is referred to in the

Socio-eocnomic development plan for 2006-2010 (SEDP)3, where rapid and sustainable development

is the approach to industrialization and modernization of Vietnam. This is evidence that the concept of

economic growth was influenced by activities on the global level that led to enhanced awareness for

environmental concerns and the beginning of a rethinking of the growth model in Vietnam.

3.2.3 The discourse on climate change

The discourse on climate change is a very powerful discourse in Vietnam, because Vietnam is

especially vulnerable to climate change and climate change is threatening the developmental achievements

3 presume that this is the same with the SEDS, because the wording in the SEDS 2001-2010 is the same, which is also rapid andsustainable development


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made in the past. Although, the climate change discourse became important in the last ten years,

government officials and researchers had already begun to be preoccupied with it in the late 1980s

(Fortier 2010). Vietnam ratified the United Nations Framework Convention on Climate Change (UNFCCC)

in 1994, and the Kyoto Protocol in 2002. In December 2008, the national target program to respond to

climate change (NTP-RCC) has been approved, which was drafted by MONRE the ministry responsible for

climate policies. The NTP-RCC sets the foundation for responding to climate change through research,

planning and communication. Its linkages to socio-economic planning and implementation are therefore

less strong (Fortier 2010). However, the NTP-RCC highlights that an effective response to climate change

is necessary to ensure sustainable development and it emphasizes the need to mainstream climate

change into the socio-economic development strategies. Furthermore, it stresses the need to develop a

low-carbon economy.

Building on the NTP-RCC the National Climate Change Strategy (NCCS) was approved in

December 2011. The NCCS is the policy document that builds the foundation for the implementation

of a climate change response in Vietnam. Most notably, the NCCS considers a low-carbon economy and

green growth as the guiding approaches for achieving sustainable development.

To conclude, climate change has also significantly influenced how economic growth is

conceptualized. Nevertheless, in the context of climate change the discussion on economic growth is not

constructed in a way that does lead to a refraining from the objective of economic growth, quite the

contrary, economic growth is seen as means to strengthen the capacity to deal with climate change and

therefore is even more important (Fortier 2010).

3.2.4 Brief conclusion

In summary, what can be seen from this short history is that economic growth is the prime

objective and that the paradigm is beginning to shift in favor of environmental considerations. However,

this shift is evolving only gradually. The concept of economic growth still retains some of its established

characteristics that may not be compatible with the new concepts. The most notable characteristic here

is that economic growth is expected to take place rapidly. As a result, discursive concepts like rapid and

sustainable development are formed that inherit an immanent tension. Furthermore, the discourse on

economic growth stays dominant in that the environment is discursively constructed in a way to supportthe imperative of economic growth. The next section will elaborate on the characteristics and structure

of the discourse on green growth, green economy and green jobs, which resembles a similar discursive

structure.

3.3 The characteristics and structure of the discourse on green economy, green growth

and green jobs

Green economy, green growth and green jobs (GE/GG/GJ) have entered the discourse in Vietnam

only very recently. An accumulation of press references can only be found since late 2011. However,

discussions on GE/GG/GJ have been very dynamic since then, the main reason being the development ofthe Vietnamese Green Growth Strategy (VGGS). In the course of the development of the VGGS several


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conferences, workshops, consultations and discussions have been organized, which also was covered by

the Vietnamese press.

One characteristic of the discourse is that it is predominantly an expert discourse. The main

stakeholders in the discourse are the ministry of planning and investment (MPI), which is the ministry

responsible for sustainable development since early 2000 (Pellini 2008). The sustainable development

office is located at MPI. Furthermore, the drafting of the VGGS was led by the General Department of

Science, Education, Natural Resources in MPI. Other important stakeholders in this discourse are the

United Nations Development Programme (UNDP) that supported MPI in the process of the development

of the VGGS. Furthermore, other parts of the Vietnamese government and related research institutes

took part. With regards to the issue of green jobs, the International Labor Organization, the Ministry of

Labor, - Invalids and Social Affairs (MOLISA), the Vietnam General Confederation of Labor with supportof the Friedrich-Ebert Stiftung were active in the discourse.

Three central discourse configurations mark the structure of the discourse, because they recur

often in the discourse. There are three discourse configurations of importance.

a) The problem configuration

The problem configuration refers to the Old/past growth model which is linked with the

attributes pollution/GHG emissions, energy-resource intensive, low level labor, and increase

competitiveness. What can be seen here is that the past economic model is linked to major problems

of the Vietnamese economy. Furthermore, as these wordings recur often in the discourse in t

Greening ĐổI MớI: An Outlook on the Potential of Green Jobs in Vietnam

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