The FINANCIAL — A new business hub supporting local clean-tech enterprises was launched on December 11 by the Government of Vietnam with the Governments of Australia and the United Kingdom and the World Bank Group. First of its kind in the country, the Vietnam Climate Innovation Center (Vietnam CIC) aims to assist 48 clean-tech businesses within its first three years of operations, expanding access to new and improved climate-smart products and services to over 1,700 households.
Vietnam is one of the five countries most vulnerable to climate change and the Government sees clean technologies as key to reducing greenhouse gas emissions by 8 to 10 percent between 2010 and 2020, and a further 1.5 to 2 percent by 2050.
“The VCIC will contribute to the government’s comprehensive efforts to respond to climate change and promote green growth,” said Nguyen Quan, Vietnam’s Minister of Science and Technology. “In line with Vietnam’s Green Growth Strategy 2011-2020 with a vision toward 2050, the VCIC’s innovative model will help local enterprises catalyze innovative technology for green and sustainable growth.”
To achieve the country’s goal of 50 percent of enterprises applying green production techniques by 2020, the World Bank Group’s Climate Technology Program estimates that Vietnam’s clean technology market will need up to $19 billion in investment through to 2025, according to the World Bank.
The Vietnam CIC, which is supported by the Australian Department of Foreign Affairs and Trade and the UK Department for International Development, will provide financing, mentorship, and advisory services to the growing number of local clean-tech entrepreneurs working in five key sectors—energy efficiency, information technology, renewable energy, sustainable agriculture, and water management.
“The private sector plays a central role in the global climate change response,” said Layton Pike, Deputy Head of Mission, Australian Embassy to Vietnam. “All countries, both developed and developing, can help mobilize climate-friendly private sector investment by creating an enabling environment for innovative businesses.”
“The VCIC will help turn climate challenges into opportunities of growth as it helps small and medium enterprises scale the most innovative private-sector solutions to climate change,” said Victoria Kwakwa, World Bank Country Director for Vietnam. “By encouraging domestic entrepreneurship and innovation, as well as supporting local clean-tech enterprises, the center will help reduce emissions and improve climate resiliency, while also creating jobs and improving regional competitiveness.”
Hosted by the Ministry of Science and Technology, the VCIC is part of World Bank Group’s Climate Technology Program, which is currently implementing a global network of innovation centers in seven countries.
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