Climate change is likely to slow Vietnam’s economic growth and vulnerable sectors are liable to suffer huge losses, said a report released in Hanoi on July 26.
The report, conducted by the Central Institute for Economic Management in association with the World Institute for Development Economics Research and the University of Copenhagen of Denmark, said that Vietnam’s temperature will increase in the future and is likely to rise by one or two degrees Celsius by 2050.
Professor Channing Arndt of the University of Copenhagen said Vietnam’s economy will continue to grow at an annual average of 5.4% with the proportion of agriculture in the country’s GDP plunging from 16% to 7.6% during the 2007-2050 period.
The shock caused by climate change will not be as considerable as the proportion of agriculture to the economy in the 2046-2050 period, at only 7-8%.
The report said the increase in temperature, rainfall and rain frequency will downgrade roads and raise expenses in repairing.
Instead of an average annual growth of 5.4%, the economy will grow by 5.32 – 5.39% annually due to the impact of flooding while the sea level rise will fall by 0-2.5% in the 2046-2050 period.
Danish Ambassador to Vietnam John Nielsen said the government’s climate change adaptation policy will help reduce risks.
Danish assistance to Vietnam’s sustainable economic development aims to increase the knowledge of and improve the life of the Vietnamese people should minimise the impact on growth, especially agriculture, the diplomat said.
Experts advised the Vietnamese Government to focus on concentrated economic activities and infrastructure investment.
Losses caused by climate change can be considerable but can be minimised if there are suitable policies in place, they said.