Green transformation helps businesses overcome trade barriers
The necessity of green transformation stems from the fact that traditional growth drivers such as cheap labor and resource exploitation are gradually reaching their limits. To achieve double-digit growth in the 2026-2030 period, Vietnam needs a "revolution" in productivity, with science and technology, innovation and digital transformation playing a leading role.
This process is driven by the Net Zero commitment by 2050 and the global green supply chain shift, opening up opportunities to attract high-quality FDI into the fields of semiconductor, artificial intelligence and clean energy.
Greening is not simply a cost but a strategic investment to help Vietnamese businesses reposition their positions in the supply chain. With the green transformation strategy, businesses will have many opportunities.
For example, overcoming international trade barriers: Green transformation is the process of eliminating energy-intensive and outdated industries, helping businesses penetrate into stages with higher added value.
Operating optimization through technology: The goal of reducing energy consumption on GDP by 1.5% each year requires the intervention of AI, IoT and smart sensor systems. This directly benefits by reducing input costs and improving actual labor productivity.
Access to sustainable financial resources: International influential investors currently consider Vietnam the second largest market globally for transparent green projects. This is a golden opportunity to mobilize cheap and long-term capital for businesses that prove their true ESG commitments.
Fair green transformation, leaving no one behind
Besides opportunities, green transformation also reveals clear differentiation in capacity and position between business groups.
The FDI sector and large corporations have advantages in capital, technology, and ESG management. With this group, green transformation is no longer an option, but a "license" to participate in the global supply chain, accessing demanding markets such as the EU and the United States.
Meanwhile, small and medium-sized enterprises - accounting for more than 98% of Vietnamese enterprises - are a major "bottleneck". This group has a awareness of green transformation but has not taken strong action due to financial constraints and lack of emission measurement skills.
The need for green transformation is real and is demanding strongly, but the psychology of waiting for real changes in institutions - policies causes legal risks and increases compliance costs for businesses. Vietnam needs strong solutions in the current process of implementing green transformation, and here are some specific solutions in terms of institutions - policies.
First, it is necessary to implement a substantial and responsible "institutional bottleneck" resolution, state agencies need to decisively shift from the "management and control" mindset to "opening up and creating" and the immediate task is to focus on removing legal bottlenecks for businesses' green transformation activities.
Business support policies need to shift from the form of "survival support" (such as short-term tax and fee reduction) to "capacity investment" through green human resource training and core technology transfer.
Second, complete green financial infrastructure according to market mechanisms: Implement specific financial and credit policies according to the national green classification list to create breakthroughs for the credit market and green bonds.
Third, promote technology and pilot mechanisms (sandboxes). Build pilot legal spaces (sandboxes) for the carbon credit market, green Fintech and new circular economic models. Fourth, social security in the equitable energy transition: Green transformation must be a "humane" process, leaving no one behind.
