Seize opportunities and innovate so that Vietnamese businesses do not miss out on the green "game"

As green transformation is an indispensable global trend, Vietnamese enterprises must proactively seize opportunities, innovate, and improve their capacity to be ready to join the "game".

An Hao Solar Power Plant (Soc Trang Province). (Source: Life Photography)

According to the Vietnam Clean Air Network (under the Vietnam Association for Conservation of Natural Resources and Environment), Green transformation is an inevitable requirement, requiring strong participation from the State, businesses and the whole society.

Businesses are still struggling

In Vietnam, accompanying the Government, the business community has made strong changes, with many practical and effective actions in investment and business activities in all fields and sub-sectors of the economy following two green transformation trends.

Many economic groups and large enterprises quickly "joined the game", promoting green transformation to respond to climate change and develop a low-carbon economy, towards the goal of net zero emissions.

However, this change takes place mainly in large enterprises and foreign-invested enterprises, while the number of small and medium-sized enterprises is quite large but has not received due attention and has not had clear changes.

According to the Vietnam Clean Air Network, up to 90% of Vietnamese enterprises are small and medium-sized enterprises, which often face many difficulties in the greening process, from finance, human resources to technology and awareness.

Giving the reason, Chairman of the Vietnam Clean Air Network Hoang Duong Tung emphasized that one of the main reasons is the lack of a clear mechanism, making it difficult for businesses to know which fields to invest in, which technology to choose, or where to borrow capital to carry out the conversion.

Citing a report from the Vietnam Federation of Commerce and Industry (VCCI), Mr. Tung said that about 65% of businesses have difficulty accessing capital to implement green projects. "Although there are financial support mechanisms, bringing this capital to the right target is still a difficult problem," Mr. Hoang Duong Tung emphasized.

Sharing the same view, Mr. Dinh Hong Ky, Vice President of the Ho Chi Minh City Business Association (Huba) said that human resources are a barrier for businesses when making green transformation. Only about 12% of businesses in Ho Chi Minh City have a team of personnel with expertise in ESG (environment, society and governance).

At the same time, technology is also a challenge for businesses, especially in high-emission industries such as textiles. Currently, about 40% of equipment in this industry is outdated, making carbon emission reduction a difficult problem.

Mr. Dinh Hong Ky stated: "In the context that Vietnam has to compete with many rivals in the international market, upgrading technology and meeting green standards is mandatory."

In addition, according to Vice President Huba, business awareness is also a major barrier. Not all businesses clearly understand the importance of green transformation and are willing to invest long-term in this process.

Production line of completely biodegradable biological products at An Phat Holdings factory. (Source: An Phat Holdings)

Take advantage of opportunities from international partners and customers

Expressing concern about the above issue, Associate Professor, Dr. Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy on Agriculture and Environment (Ministry of Agriculture and Environment) affirmed: "If businesses do not comply, the risk of being eliminated from the market is very high, and can even lead to bankruptcy."

Associate Professor, Dr. Nguyen Dinh Tho cited lessons from the textile and garment industry. Specifically, in the period of 2022-2023, due to slow implementation of green standards, Vietnam's textile and garment industry has declined sharply, while Bangladesh has maintained stable growth thanks to timely transformation. Therefore, businesses need to "roll up their sleeves" to make a green transformation right now.

To overcome these challenges, in the coming time, businesses need to be determined to strongly transform, especially improving their understanding and awareness of their responsibilities in protecting the environment, responding to climate change, and grasping relevant regulations both domestically and internationally.

According to economic expert Pham Chi Lan, in the green transformation journey, businesses need to take advantage of cooperation and support opportunities from partners, customers, and international buyers because this is a common transformation problem and a common responsibility.

Many international buyers are willing to support businesses in the supply chain to practice green transformation and ESG to reduce the opportunity cost of finding a new partner or customer.

“In addition to the initiative of business owners, the workforce also needs to 'join in' to spread the culture of sustainable development, thereby effectively exploiting opportunities from green transformation,” economic expert Pham Chi Lan recommended.

In addition to support from the Government, Director of the Department of Foreign Market Development (Ministry of Industry and Trade) Ta Hoang Linh realized that businesses need to be more proactive and determined in green transformation. This is no longer a

"Enterprises need to review their production activities, cut back on outdated technology, and optimize processes to reduce emissions. At the same time, applying digital technology in energy management, supply chains, and smart manufacturing will help businesses improve operational efficiency, save costs, and better meet international standards," Mr. Ta Hoang Linh suggested.

The role of the business community is extremely important to realize the green transformation goal in Vietnam. In the coming time, it is expected that businesses will make the most of their competitive advantages, transform, and keep up with this "wave" to stand firm in the context of an ever-changing global economy.

Next April, Vietnam will host the Partnership for Green Growth and the Global Goals 2030 (P4G) Summit.

Hosting this event is considered an opportunity for Vietnam to promote green tourism, strengthen relations with partners, mobilize resources for socio-economic development, respond to climate change and sustainable development of the country.

P4G was formed in 2017 on the initiative of the Danish Government. It is one of the world's leading forums for promoting public-private partnerships, connecting governments, businesses and socio-political organizations to jointly develop breakthrough solutions for green growth; thereby, contributing to the implementation of the 2030 Sustainable Development Goals (SDGs).

To date, P4G has 12 member countries, including: Denmark, Chile, Mexico, Vietnam, Korea, Ethiopia, Kenya, Colombia, Netherlands, Bangladesh, Indonesia and South Africa, with the participation of more than 90 countries, international organizations and businesses.

Source: https://baoquocte.vn/nam-bat-co-hoi-doi-moi-de-doanh-nghiep-viet-khong-bo-lo-cuoc-choi-xanh-308211.html