Vietnam a $45 billion opportunity for sustainable private investment

15:40 | 05/02/2020
Opportunity 2030: the Standard Chartered SDG Investment Map revealed a $9.668 trillion opportunity for private sector investors across all emerging markets to help achieve the UN’s Sustainable Development Goals (SDGs), with Vietnam representing $45.8 billion of this.
vietnam a 45 billion opportunity for sustainable private investment
Vietnam presents a $45 billion opportunity for the private sector to invest in sustainable development

The study identifies opportunities for the private sector to contribute to three infrastructure-focused goals between now and 2030: SDG 6: Clean Water and Sanitation, SDG 7: Affordable and Clean Energy, and SDG 9: Industry, Innovation and Infrastructure across emerging markets.

Open for growth

In Vietnam, the greatest SDG investment opportunities are found in transport infrastructure and improving digital access, both key indicators of SDG 9, which encourages improvement in industry, innovation, and infrastructure.

Opportunity2030 finds that to achieve universal digital adoption – a combination of mobile phone subscription rates and internet connectivity – will require private-sector investment of around $24.4 billion between now and 2030, and to significantly improve Vietnam’s transport infrastructure will require an estimated private-sector investment of $20.1 billion.

The potential private-sector investment opportunity in the water sector is smaller, but as 11 per cent of Vietnam’s population still do not have access to clean water and sanitation (a key SDG 6 indicator), the investment will have a real impact. Helpnig to achieve universal access by 2030 will require an estimated private-sector investment of $1.3 billion.

Nirukt Sapru, CEO Vietnam and ASEAN and South Asia Cluster Markets at Standard Chartered Bank, said, “A series of ongoing market reforms is giving Vietnam a market-leading status in Southeast Asia, making it an increasingly an attractive place for investors. The government is committed to the UN Sustainable Development Goals and is working directly with the UN to align its development plans with the SDGs.

Opportunity2030 provides an important map of the SDG opportunities for private sector investors looking to invest with impact and improve the lives of millions over the next decade.”

Opportunity2030 - Investment opportunity in achieving the SDGs in Vietnam, by sector indicator

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SDG 6: Clean Water and Sanitation

SDG 7: Affordable and Clean Energy

SDG 9: Industry, Innovation and Infrastructure

Sector

Water and sanitation

Power

Transport

Digital access

Current performance

89 per cent access to clean water and sanitation

100 per cent access to electricity

LPI infrastructure score of 3.01

76 per cent digital access

Target by 2030

100 per cent access to clean water and sanitation

100 per cent access to electricity

LPI infrastructure score of 3.46

100 per cent digital access

Total investment required to 2030

$13.1 billion

n/a

$57.3 billion

$40.7 billion

Potential private-sector investment opportunity

$1.3 billion

n/a

$20.1 billion

$24.4 billion

Vietnam already has universal access to power so the investment opportunity to achieve this is not included in the country’s total investment opportunity figure. However, with a growing economy, there will be additional need for continual investment in affordable and clean energy to maintain access in a sustainable way.

Opportunity2030: The Standard Chartered SDG Investment Mapis a macro-economic study that draws on global data sources and indicative private-sector participation rates to provide companies, institutional investors and other stakeholders with an overview of where their investments could have the greatest impact.

It spans 15 of the world’s fastest-growing economies and estimates the potential private-sector investment opportunity to contribute to three of the most investment-ready SDGs (6,7, and 9). Within these SDGs, it focuses on four indicators – water and sanitation services; power; telecommunications (digital access); and transport infrastructure.

By Nguyen Huong

Based on MasterCMS Ultimate Edition Ver 2.9 2020