The Green Transition in Vietnam: Challenges and Opportunities
Navigating International Financing in Power Projects
During recent negotiations for a significant $1 billion loan for the Nhon Trach 3 LNG power plant, Deputy General Director of PetroVietnam Power Corporation (PV Power), Nguyen Duy Giang, faced tough scrutiny from major international partners like SMBC (Sumitomo Mitsui Banking Corporation) and ING Bank. As Vietnam commits to achieving Net Zero emissions by 2050, questions arose regarding the long-term viability of the project. Key concerns included the plant’s break-even point of approximately 25 years and the roadmap for transitioning to clean hydrogen energy.
This challenging landscape emphasizes the pressing need for Vietnamese companies to align with Environmental, Social, and Governance (ESG) standards to secure international funding. Giang highlighted, “To negotiate effectively, we had to hire specialists from Ho Chi Minh City who are not just fluent in foreign languages, but are also well-versed in global environmental policies.”
The Imperative for Skilled Personnel
At a recent workshop titled “Green Transition and Development of High-Quality Human Resources in Manufacturing and Renewable Energy Sectors in Vietnam,” organized by the Vietnam Chamber of Commerce and Industry (VCCI) and the Confederation of Danish Industry (DI), Giang stressed the critical lack of specialized personnel. Despite numerous universities offering environmental training, none meet the rigorous international standards required for effective ESG compliance.
He noted a troubling gap in skill sets: “Many schools focus on theoretical concepts, but the industry demands professionals who can practically apply global standards. There are very few institutions that can prepare experts capable of engaging with international partners.”
This gap is glaringly illustrated by a World Bank report stating that green jobs constitute only about 3.6% of total employment in Vietnam, primarily in energy and mining sectors. The current education system must evolve to close this significant divide between the demand for skilled workers and the actual availability.
Creating New Job Opportunities in a Green Economy
Dao Trong Do from the Department of Vocational and Continuing Education emphasized the urgent need for a workforce trained in renewable energy and green transitions. Despite some institutions offering training, the integration of new global standards is lacking. Educational programs often miss the mark on industry needs, as businesses require a workforce from vocational colleges prepared to work without extensive retraining.
To tackle this challenge, state authorities are identifying key industries facing low enrollment and high demand. They plan to subsidize training costs comprehensively, similar to programs in other sectors. These efforts include covering tuition and providing living stipends for students pursuing careers in renewable energy.
Innovative Partnerships for Skill Development
Some educational institutions are forging partnerships with companies like VinFast to improve training outcomes. In this collaborative model, companies communicate their workforce needs to educational institutions, ensuring that the training aligns with market demands. VinFast even reimburses tuition costs for students who, upon graduation, meet the company’s hiring criteria.
Such collaborations are crucial for addressing labor shortages while also providing students with job placement opportunities. This model not only enriches the educational experience but also enhances employability in a rapidly evolving job market.
The Green Economy: Generating Millions of Jobs
Tran Thi Lan Anh, Secretary General of VCCI, highlighted that transitioning to a green economy encompasses more than just adopting clean technologies; it also necessitates shifts in mindsets and work cultures. As cited in a 2021 report from the International Labour Organization (ILO), the green economy is projected to generate approximately 24 million new jobs globally by 2030, particularly in renewable energy and energy efficiency sectors.
These emerging roles are characterized by inclusivity, benefiting individuals across various demographics—regardless of gender or background—while offering new avenues for women and youth in particular. This transformation not only promises economic growth but also fosters a more equitable workforce.