Amid the Ministry of Agriculture and Environment’s nationwide consultation on the Draft Law amending and supplementing several articles of the Environmental Protection Law, Vietnam’s sustainable development agenda has once again been placed at the center of policymaking. As the economy enters a phase of rapid growth, deeper global integration, and a new wave of investment inflows, environmental pressures are also intensifying - ranging from domestic pollution and the risk of importing outdated technologies to increasingly complex transboundary challenges. At the same time, fulfilling international commitments such as the Paris Agreement and achieving the “Net Zero” emissions target require Vietnam to accelerate its transition toward a low-carbon development model while promoting the green economy and circular economy.
In this critical transition, the UEH Sustainable Finance Institute under University of Economics Ho Chi Minh City has proactively contributed in-depth recommendations through its analytical report on improving the Draft Law. The report focuses on key areas such as greenhouse gas emissions management, carbon market development, international exchange mechanisms, and the promotion of the circular economy. UEH’s recommendations not only reflect an academic perspective but also demonstrate its pioneering role in connecting policy, markets, and business practices.
UEH’s report acknowledges that the Draft Law marks an important step forward by shifting from a “emissions reduction” approach to a broader “greenhouse gas emissions management” framework. It also requires emitting facilities to conduct annual inventories and regularly update data on the national system, laying a critical foundation for an integrated emissions governance system.However, UEH also highlights a major challenge: the limited capacity for Measurement, Reporting, and Verification (MRV) of corporate emissions reduction strategies — particularly among small and medium-sized enterprises (SMEs) — while compliance costs could rise significantly without a suitable roadmap.Accordingly, UEH proposes:
This approach shows that UEH is not merely advocating for stricter regulations, but is also emphasizing feasibility and the economic costs of transition.
One of the Draft Law’s notable highlights is the recognition of carbon credits as “property rights” and the initial establishment of a domestic carbon market. However, according to UEH, the system remains at an early stage and still lacks long-term strategic design.From a financial and market perspective, UEH proposes a series of systemic recommendations, including:
These recommendations demonstrate that UEH views the carbon market not only as an environmental tool, but also as a core component of the national green finance system capable of mobilizing resources and enhancing the competitiveness of Vietnamese enterprises.
Regarding the circular economy pillar, UEH highly appreciates the Draft Law’s integration of circular economy principles into development strategies and its prioritization of green bond financing. Nevertheless, a significant gap remains in linking circular economy models with the carbon market.To address this issue, UEH proposes:
Notably, UEH emphasizes the role of financial leverage — rather than relying solely on policy encouragement — to drive substantive corporate transformation.
Beyond strategic issues, UEH also provides several practical recommendations aimed at improving transparency and implementation effectiveness, including:
These recommendations reflect an interdisciplinary, systemic, and practice-oriented approach aimed at creating a transparent, coherent, and highly enforceable legal framework.
The active participation of the UEH Sustainable Finance Institute in contributing to a significant law such as the Environmental Protection Law goes beyond a purely academic exercise. It reinforces UEH’s position as a knowledge partner in national policymaking.Through this report, UEH has connected international standards with Vietnam’s domestic context, proposed systemic solutions ranging from legal frameworks to market mechanisms, and placed strong emphasis on feasibility, efficiency, and the long-term competitiveness of the economy.As Vietnam stands before a major opportunity for a “green transformation,” contributions like these not only help improve institutions, but also shape a new development model — one where economic growth goes hand in hand with environmental protection and innovation.
