Looking for green procurement solutions in public investment

A workshop on solutions to promote green procurement in public investment at CIEM

On October 10, the Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment (MPI) in collaboration with the German Agency for International Cooperation held a workshop on green procurement in public investment.

Dang Duc Anh, deputy director of the CIEM, said that innovating the growth model towards sustainable development, green growth, and the circular economy was an inevitable solution against the increasing impacts of climate change, environmental pollution, and the over-exploitation of natural resources.

Vietnam has continuously updated its strategies, plans and programmes towards a green and low-carbon economy, circular economy, and sustainable development, the seminar heard.

In the summer, the prime minister issued the Decision No. 888/QD-TTg on solutions to implement the commitment in COP26, the National Green Growth Strategy and Action Plan for 2021-2030, as well as Decision No. 687/QD-TTg approving the development of the circular economy in Vietnam.

The MPI is also preparing an outline to amend the 2013 Law on Bidding, towards green public procurement, sustainable development, and green growth.

Ho Cong Hoa, deputy head of the CIEM's Department for Social Affairs Research, said that green procurement played an important role in establishing a green market in Vietnam.

“Vietnam has issued policies on green procurement, and green public procurement, gradually forming a green purchasing market. The requirements for environmental protection have been mentioned in the pre-qualification invitation documents and bidding documents for investors and contractors," said Hoa.

To implement green public procurement, Hoa suggested that there should be regulations that directly adjust green public procurement activities, such as mandatory integration of environmental criteria in the public procurement process to analyse and evaluate investment options and select the best contractor.

Hoa also emphasised organising an investigation and assessment of green businesses and the market's ability to provide green goods and services, especially local firms. Moreover, the government should institutionalise green public procurement policies to create policy tools for sustainable consumption and production models. They must be open, transparent, and non-discriminatory.

Additionally, the government should issue policies that require, favour, encourage, and create a change from awareness to action for businesses on sustainable/green production and consumption; as well as more programmes and preferential policies. Promoting domestic production, research and innovation, technological and product innovation towards green and sustainable living, and circular economy is also necessary.

Ministries, agencies, and localities need to integrate green growth targets, especially green standard public expenditure targets, into annual budget estimates and annual socioeconomic development plans, analysing and evaluating the overall cost-benefits in consideration of the efficiency of resource use, environmental costs, and inclusivity in investment projects, public products and services.

Solutions for developing circular businesses On August 19, the Ministry of Planning and Investment's Central Institute of Economic Management (CIEM) in collaboration with the Embassy of Denmark held the launching workshop report on The Circular Business Model: International experience and application in Vietnam.

Public investment hits forward motion Overcoming a number of socioeconomic difficulties, local public spending disbursement has been accelerating nationwide to ensure goals are reached.