The World Bank is committed to supporting Vietnam reducing its dependence on coal-fired power plants and promoting renewable energy development.

State President Nguyen Xuan Phuc and Vice President at the World Bank for East Asia and the Pacific Victoria Kwakwa. Photo: VNA

Vice President at the World Bank for East Asia and the Pacific Victoria Kwakwa stressed the view in a meeting with Vietnam’s President Nguyen Xuan Phuc today [June 29].

Kwakwa also congratulated Vietnam on its success in containing the pandemic last year, saying with flexible economic management, the country along with China were the only two having positive economic growth in 2020.

Vietnam’s President Nguyen Xuan Phuc highlighted Kwakwa’s active contribution to the country’s development.

“Vietnam’s achievement in poverty reduction over the years was partly thanks to World Bank’s support,” said Phuc.

According to Phuc, the fact that Vietnam has been maintaining rapid economic growth, low inflation, a declining public debt, and putting the pandemic under control in the past years has been key in building trust among the public and businesses.

“These are the foundation for Vietnam speedy recovery once the pandemic is fully contained,” Phuc stressed, saying the ratio of public debt to GDP going down from 64% in 2016 to 55% at present has created room for Vietnam to continue mobilizing foreign funds, including the World Bank.

Expressing his support for Kwakwa’s proposal over green growth policy, Phuc said Vietnam has been steadfast on realizing a sustainable development strategy in the Mekong Delta region for greater resilience against climate change.

Phuc referred to his speech at the Leaders’ Summit on Climate in April in which he pledged that Vietnam will reduce emissions by 9% with domestic resources and by 27% with bilateral and multilateral support.

“Vietnam strives to greatly reduce coal-based power generation and rapidly increase the share of renewables in the total primary energy supply to 20% by 2030 and 30% by 2045,” Phuc said.

In that context, the country would reduce the intensity of greenhouse gas emissions per GDP by nearly 15% by 2030 and methane emissions from agricultural production by 10%, he said.