Approaches to Applying Natural Capital Accounting (NCA) in Viet Nam

As Viet Nam advances its transition toward a green economy, circular economy, sustainable blue economy, and its commitment to achieving net-zero emissions by 2050, the application of Natural Capital Accounting (NCA) is increasingly recognized as a critical tool for integrating the value of natural capital into policy planning and development decision-making. Unlike traditional approaches that focus primarily on economic growth, NCA enables the quantification of the relationships between ecosystems and the economy, including both the contributions of ecosystems to economic sectors and the impacts of economic activities on natural capital.

For Viet Nam, the implementation of NCA should be based on a combination of internationally recognized frameworks—such as the System of Environmental-Economic Accounting – Ecosystem Accounting (SEEA EA), the Natural Capital Framework, and the Ocean Accounts Framework—while taking into account the country’s data availability, statistical systems, and natural resource management context. Such an approach would allow Viet Nam to maintain international comparability while ensuring flexibility in addressing national institutional and technical conditions that continue to evolve.

One of the key principles of NCA is the prioritization of both ecosystems and economic sectors. In the Vietnamese context, priority ecosystems include mangrove forests, seagrass meadows, coral reefs, wetlands, and natural forests, as these ecosystems provide critical ecosystem services while facing significant degradation pressures. At the same time, economic sectors that are highly dependent on, or exert substantial impacts upon, natural capital should be prioritized for assessment. These include capture fisheries and aquaculture, coastal and marine tourism, ports and maritime transport, coastal infrastructure development, coastal industries, and offshore renewable energy.

Table: Priority Ecosystems and Economic Sectors for NCA Implementation in Viet Nam

By adopting a phased and ecosystem-based approach, Viet Nam can gradually establish a robust natural capital accounting system that supports evidence-based policymaking, promotes sustainable resource management, and contributes to the country’s long-term green and blue development objectives.