Hanoi (VNA) – Prime Minister Pham Minh Chinh has affirmed the significance of the public – private partnership (PPP) model to not only the green transition process but also many socio-economic sectors, considering it an effective approach to mobilise both domestic and international resources for sustainable development.
The PM chaired a business dialogue with leaders on public-private partnership for innovation and sustainability held in Hanoi on April 17 within the framework of the 4th Partnering for Green Growth and the Global Goals 2030 (P4G) Summit.
The Government leader said in some models, capital may come from the public sector and project operation could be entirely entrusted to the private sector, which boasts more experience and more flexible and effective governance. The coordination will create synergistic power, helping accelerate projects in a faster and more economical manner while delivering more substantive value to the economy and the people.
PM Chinh highlighted that the business community and international investors play an essential role in Vietnam's journey towards green transformation and sustainable growth. In particular, the country is strongly committed to creating an open, transparent, and most favourable investment environment for foreign investors.
Vietnam is implementing extensive administrative reforms, reorganising its governmental apparatus, streamlining administrative units, and moving towards an efficient government. This will remove administrative procedure bottlenecks and reduce barriers for investors and businesses operating in Vietnam, he added.
In the same vein, UN Deputy Secretary-General Amina J. Mohammed held that strengthening public-private partnerships is a key factor in the journey towards green transformation and sustainable development globally. She underscored the need to cooperate, given today's challenges exceeding the capacity of any individual government or business to solve alone.
In this partnership, the public sector plays a formative role, building legal frameworks, appropriate fiscal policies, providing financial instruments, and ensuring public benefits and the ability to implement large-scale projects. Meanwhile, the private sector brings flexibility, capital mobilisation capability, modern technology, and innovation.
Only through close coordination can the two sectors balance profit objectives with environmental, social, and development targets, thereby promoting clean energy transition, circular economy development, nature restoration, and inclusive digital transformation, she said.
To ensure the efficacy of the partnership, it is a must to create clear incentives for facilitating highly liquid projects, attracting investment inflows, developing localities’ capacity, and generating harmonised benefits for all stakeholders, she stressed.
Meanwhile, Italian Government's Special Envoy for Climate Change Francesco Corvaro emphasised that public-private cooperation has strategic significance beyond resource mobilisation in the transition to a green economy. He noted this model is especially suitable for developing countries like Vietnam where public finances are limited but investment need for green infrastructure is surging.
Drawing from Italy's experience, Corvaro highlighted how the Government’s leadership in steering investment flows has opened opportunities for private sector engagement in key areas like renewable energy, green technology, and smart urban development, helping restructuring the national energy system and creating new jobs for the youth – the core force in creating a green and sustainable future.
He cited Milan city's sustainable public transportation as a successful example of local government involvement in PPP implementation—a model Vietnam could adapt.
At the dialogue, representatives from international corporations and Vietnamese enterprises shared their visions for sustainable development. All agreed that public-private cooperation is the key factor helping them realise green transition goals and move towards a more harmonious, inclusive, and sustainable economic development.
Labour Heroine Thai Huong, Founder and Chairwoman of the Strategy Council of the TH Group, explained how her company emerged in response to China's 2008 melamine milk scandal, saying she built TH Group with a closed-loop chain approach that prioritise the nature, people, and advanced technology to make the impossible possible.
She underscored that that while green transformation and innovation generate substantial benefits, effective public-private partnerships are essential for widespread adoption. She outlined three key requirements, namely policies that create industry leaders, promotion of data and experience sharing among businesses, and economic development in tandem with life quality and human stature improvement through investment in high-tech agriculture and circular economy./.
