We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Vietnam Business Forum (VBF) has broadly positive engagement on climate policies, but with mixed positions on the transition of the energy mix. VBF expressed support for climate-related regulations in Vietnam including carbon taxes, a carbon border adjustment mechanism, emissions trading, and renewable energy legislation. On the Vietnamese energy mix, VBF appears to support the prioritization of renewables in the transition from coal alongside the use and expansion of natural gas, but without specifying the need for CCS or methane abatement.
Top-line Messaging on Climate Policy: VBF has positive top-line messaging on climate policy. At the Annual Vietnam Business Forum in February 2022, VBF expressed support for Vietnam’s commitment to net-zero greenhouse gas emissions by 2050, stating that its “member companies welcome these changes are eager to support Vietnam's energy transition.” InfluenceMap did not find any evidence on VBF’s positions on the Paris Agreement.
Engagement with Climate-Related Regulations: VBF has positive engagement with climate-related regulations in Vietnam. At the Annual Vietnam Business Forum in February 2022, VBF expressed support for the European Union’s proposed carbon border adjustment mechanism (CBAM), stating that it “will play an increasing role in trade not only with the EU, but also Vietnam’s other trading partners” and that there are “opportunities in this for Vietnam to push forward its transition to 21st century technologies that lower carbon emissions.” At the Technical Session held in February 2022 leading up to the Annual Vietnam Business Forum, VBF encouraged the government to “cautiously” support the EU CBAM “while seeking concessions from the EU,” including “developing a timeline for implementation” and support for the development of Vietnam’s ETS. At the same session, VBF recommended an ETS with a periodically adjusted cap “that aims to meet Vietnam’s goal of becoming a net-zero economy by 2050.” As a part of this system, VBF suggested incremental emissions reduction targets toward net-zero emissions in 2050. At the Vietnam Business Forum in February 2022, VBF stated support for the development of Vietnam’s emissions trading system (ETS) and carbon market.
Positioning on Energy Transition: VBF takes a mixed position on the energy transition. VBF appears to support a transition from coal that prioritizes renewables, while also supporting increases in unabated LNG and natural gas as baseload sources to satisfy Vietnam’s energy demands. At a consultation meeting on the PDP8 chaired by the Vietnamese Deputy Prime Minister in November 2021, VBF stated that it “agrees” with "gas as a cleaner and more reliable transitional fuel to the net zero future to the extent it is needed to secure the baseload while the build out of renewable capacity takes place,” while recommending that gas power plants be designed to use “low carbon fuel such as hydrogen in the future or other technological steps to reach 100% decarbonization”. At the same meeting, it advocated that coal plants be “converted to gas as soon as possible.” At the Vietnam Business Forum in February 2022, VBF suggested that to “secure a baseload sufficient to replace coal,” “the transition toward renewables, including hydro, wind and solar, will require a pathway that includes energy storage and flexible gas or LNG power,” with such projects being designed for the “introduction of hydrogen as a renewable, clean fuel source for baseload in the near future.” At the Technical Session leading up to the Vietnam Business Forum in February 2022, VBF recommended a transition toward hydro, wind, and solar renewable energy, with “flexible gas/LNG” that would eventually be “replaced by hydrogen as a baseload,” while also suggesting that “green hydrogen would be used to reduce Vietnam’s CO2 as a replacement fuel for LNG/Gas fire power plants.” At the same meeting, VBF also recommended regulatory measures to decarbonize the transport sector, including tax credits and “public procurement of low and zero emissions vehicles.” At the Vietnam Business Forum Technical Session in February 2022, VBF recommended a feed-in tariff (FIT) for the increased offshore wind capacity proposed by the MOIT in the PDP8.