Vietnam's Booming Green Scene

A country that was once notorious for pushing economic growth ahead of its fragile environment, Vietnam is today putting the brakes on reckless development and finding the upside in becoming sustainable

Aerial View of Six Senses Hideaway Ninh Van Bay photographed by Kiattipong Panchee.

With its 'grow first, clean-up later' philosophy, Vietnam has experienced rapid rural and urban development, alongside population growth over the past two decades. Combined with an excessive focus on economic advancement, the country's natural resources have been placed under huge pressure, creating serious environmental woes such as poor waste treatment, deforestation and pollution on land, in rivers and, perhaps most significantly, in the air.

Uncontrolled development, lax regulations, plus naivety regarding global environmental issues have compounded these problems. "Vietnam is open to eco-friendly practices but helping the environment is still a luxury; for most, it's a matter of economics," testifies Steve Mueller, General Director of Green Energy.

At the World Economic Forum, a 2008 Environmental Performance Index ranked Vietnam 76th, scoring lowest in biodiversity, conservation, indoor air pollution and sanitation. The Forum's Competitiveness Reports 2007-2009 ranked Vietnam's Quality of Natural Environment 122nd out of 133 countries. Ho Chi Minh City (HCMC) is among the world's top 10 cities most endangered by climate change and has some of the world's highest air pollution levels.

But before we all sob into our lattes, there are encouraging signs. The government is increasingly aware of the need for urgent measures to redress environmental problems, one official at a recent conference on the matter admitting: "To develop sustainably, we must pay special attention to protecting the environment and maintaining natural resources reasonably."

Lately, various ministries have drafted environmental strategies and policies; these include a 2020 plan for Environmentally Sustainable Transport and an action plan to implement the Kyoto Protocol and combat climate change. More environmental-based enforcements and regulations are being introduced. In the private sector, according to a recent Grant Thornton report (IBR), 69 percent of Vietnam's private businesses are prepared to introduce green practices. And thankfully, an increasing number of individuals and organizations, in their own diverse ways, are making a difference and leading by example.

Fuelling sustainable energy

Settled in Vietnam for a decade, American Stephen Mueller wanted to help the environmental issues in his new home – and certainly did, founding Green Energy (www.greenenergy.com.vn) in 2005. Backed by Australian partners Jatoil, this HCMC-based Vietnamese company focuses on renewable, clean energy – namely, biofuel, a non toxic alternative fuel.

After dabbling in waste cooking oil from hotels, General Director Mueller looked at alternative biofuel sources – selecting Jatropha Curcas, an inedible plant that thrives on marginal lands. Seeds from Jatropha can be pressed and refined into sustainable, biodegradable and non-polluting biodiesel. A second generation biofuel feedstock, Jatropha requires little water, doesn't involve destruction of high-value native environments and is cultivated solely for fuel, rather than competing with land for food crops. It burns 70 percent cleaner than fossil fuels and is CO2 neutral – an important factor, considering transport causes over 70 percent of air pollution in Vietnam's urban areas.

Additionally, Jatropha cultivation generates sustainable yields on Vietnam's most unproductive lands – including degraded and war damaged areas – where nothing else can grow (Jatropha grows wild in the central provinces). Supplied with tools, training and contracts, biofuel plantations offer some of Vietnam's poorest farmers a viable economic recourse on otherwise barely cultivable land.

Still on trial runs, Green Energy is currently committed to 2,000 hectares of cultivation, expanding to 25,000 and full production within five years. Although not yet profitable, Mueller believes that a potential market exists; primarily local, with its lower priced fuel, but increasingly, with the government. Aware of biofuels' potential of meeting Vietnam's escalating energy and transport needs, the government is legislating a five percent biodiesel mandate by 2015, rising to 15 percent by 2020, plus plans to bring millions of hectares under biofuel feedstock cultivation. Green Energy will play a significant part in reducing rural poverty and creating a sustainable energy future for Vietnam.