Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

Processing agricultural products for export. Illustration photo: VNA

According to the Ministry of Industry and Trade, sustainable development has become a trend of the times, guiding the development strategy of each country. Important policies such as the European Green Deal, the Carbon Border Adjustment Mechanism (CBAM), the Circular Economy Action Plan or the Biodiversity Strategy to 2030 are having a great influence on the growth method, economic cooperation, trade and investment in the world.

Dr. Le Huy Huan, coordinator of the Vietnam Global Green Growth and Climate Change Program, said that Vietnam has been very proactive and positive in its preparations and has taken quite clear steps to support businesses in meeting the requirements of green economy and green trade of the export market in general and the UK market in particular.

Accordingly, Vietnam has issued the Green Growth Strategy for the period 2021 - 2030, the National Project on Circular Economy with specific goals on carbon emission reduction, sustainable production and consumption... At the same time, Vietnam has been building a carbon market with policies to support businesses to meet requirements related to emission reduction, sustainable development in the production process...

Representing the business, Ms. Nguyen Thi Huyen, CEO of Vinasamex, shared the success story of the business when participating in the UK market thanks to applying a sustainable production model. "We are proud to be a supplier for many famous brands in the UK such as Bombay Sapphire or herbal tea brands. To achieve this, businesses must persistently build value chains, control quality from raw materials to final products", Ms. Nguyen Thi Huyen said and stated that the biggest challenge is changing business philosophy.

“We have to invest resources, time and money, sometimes feeling discouraged because we do not know if we are on the right path or not. But the strict requirements of the UK market help us affirm our position,” said Ms. Nguyen Thi Huyen.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that with its existing potential and advantages, Vietnam is facing many great opportunities to become an important link in the global supply chain, especially in the field of exporting green and sustainable goods, promoting investment in renewable energy, cleaner production, digital economy, and circular economy

Preparing Vietnam's export sources to effectively adapt to sustainable standards is vital to the Vietnamese economy. Seizing this opportunity will not only help Vietnam meet the requirements of the international market but also contribute to enhancing the country's position, realizing its commitment to contributing to global sustainable development goals. This transformation requires a synchronous strategy, including the Government's orientation through incentive and support mechanisms and policies, the initiative of enterprises in investing in implementing green transformation solutions and the spirit of cooperation among related parties.

According to Associate Professor, Dr. Nguyen Dinh Tho, Director of the Institute of Strategy and Policy on Natural Resources and Environment (Ministry of Natural Resources and Environment), the requirements on green standards are mandatory and enterprises must comply when entering the market, especially the EU market. In the coming time, enterprises need to be more proactive in learning about the requirements and regulations of the EU. In addition, it is necessary to prioritize the mobilization of green finance and green technology. In particular, it is necessary to strengthen capacity, improve the ability to absorb green finance, and use green technology to meet the requirements of converting energy to a circular economy.

At a financial perspective, Mr. Nguyen Ba Hung, chief economist in Vietnam, Asian Development Bank (ADB), said that green finance in Vietnam has been modest in recent times, so to promote green finance, first of all, businesses need to be proactive in building a green production and business roadmap. Only when there is a green transformation can green loans and green finance from domestic and international sources be green.