Industrial transition will be a new avenue for mobilising finance for Viet Nam
On 10 July, Monash University’s Climateworks Centre and the Ho Chi Minh City Institute for Development Studies (HIDS) convened a consultation workshop that brought together government, industry, industrial zone authorities and finance stakeholders to advance industrial transition in Viet Nam.
Viet Nam’s strong economic growth agenda presents a major opportunity to align industrial expansion with green investment goals.
The country has set a target of achieving an average annual GDP increase of 10 per cent or more for the 2026–2030 period, with infrastructure investment, manufacturing, exports and domestic demand expected to continue to power economic growth.
Climateworks’ Southeast Asia Lead, Phat Pumchawsaun, said Viet Nam’s next opportunity is attracting investment into low-carbon industries.
‘Viet Nam’s economic ambitions will require significant investment in infrastructure, construction and manufacturing,’ said Pumchawsaun.
‘This will increase demand for steel, cement, power and industrial infrastructure.’
‘This presents an opportunity to ensure the next wave of investment builds a more competitive, lower-carbon industrial base from the outset.’
‘Government policies on procurement, standards, carbon pricing, green finance and emissions data will be critical to turn policy ambition into a new tranche of investment.’
The workshop is part of phase 2 of the Net Zero Industrial Precinct program, a collaboration between Climateworks and HIDS.
Climateworks’ Net Zero Industrial Precincts program supports building future industries by fostering solutions for green industrial clusters across Australia and Southeast Asia.
This approach brings stakeholders together within geographically defined industrial areas to coordinate investment in renewable energy, low-carbon technologies, shared infrastructure and skills.
Two illustrative case studies – Saigon Hi-Tech Park and Becamex VSIP – are used to examine how different governance and investment models could support bankable transition projects at the industrial zone and cluster level.
Climateworks’ analysis finds that Viet Nam’s industrial transition finance gap is structural: despite growing capital and technology availability, projects remain hard to finance due to fragmented demand, long paybacks, high preparation costs and limited risk-sharing instruments.
Industrial clusters offer the most practical level to aggregate demand, share infrastructure and improve bankability.
HIDS’ Deputy Director General, Mr Pham Binh An, co-chairing the workshop, said industrial clusters have and will continue to be the driver of change for Viet Nam’s industrial transition.
‘The Vietnam International Financial Center in Ho Chi Minh City is committed to being at the forefront of attracting and mobilising capital for green transition and innovative solutions,’ Dr Nguyen Huu Huan, Vice Chairman of The Executive Authority of the International Financial Center in Ho Chi Minh City, said.
‘As many countries look at expanding new industries, mobilising financing for clean industries can enable a new wave of investment.’
The Viet Nam program is delivered in partnership with HIDS, following a Memorandum of Understanding signed at the 2024 Ho Chi Minh City Economic Forum. Phase 2 informs the next stage of work, which aims to develop investment-readiness projects and scale up the framework nationwide.
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