Industry develops strongly but faces environmental challenges
After nearly 40 years of renovation, Vietnam has become a bright spot in economic growth in the region, with industry playing a central role. In the period of 2011-2020, industry grew the most, contributing nearly 30% of GDP and leading exports. By 2019, Vietnam ranked 22nd globally in exports, up sharply from 50th in 2010. In the 2021-2024 period, despite facing many challenges, the industry still contributes more than 31% of GDP and increased global competitiveness by 16 ranks, ranking 42nd according to UNIDO.
However, this strong development also carries many consequences. Traditional industries such as mining, smelting and cement cause serious pollution, while fossil energy accounts for 75% of total energy consumption. The processing and manufacturing industry, which is the main growth driver, depends heavily on FDI enterprises, accounting for 70% of export value, with low domestic added value due to weak supporting industries and dependence on imported raw materials.
Meanwhile, the world is strongly shifting to green economic models, with strict standards such as CBAM of the European Union, ESG regulations in the supply chain or Net Zero commitments by 2050.
Towards sustainable development solutions
Faced with global challenges, the thinking of Vietnam's industrial development is gradually changing towards harmony between growth and sustainability.
At the Forum "Green Industry: Harmonizing High Growth and Sustainable Development Goals" organized by Vietnam Economic Magazine, Dr. Chu Van Lam - Permanent Vice President of the Vietnam Economic Science Association - emphasized: "The explanation is not in the exchange, but in the way we look back to design the most harmonious industrial strategy."
Vietnam has identified industry as the main driver in the GDP growth target of 8% by 2025 and is aiming for double digits in the following years. In parallel, the Party and the Government have issued many key policies to promote industrialization associated with green development, notably Resolution No. 29-NQ/TW on industrialization and modernization of the country until 2045 and the "Make in Vietnam 2045" program to increase autonomy in raw materials, technology and production.
Specific green goals are also being promoted: Increasing solar power capacity to 73GW and wind power to 38GW by 2030, modernizing the power grid, implementing 18 pumped-storage hydropower projects; reducing 30% of methane gas in agriculture by 2030 compared to 2020; promoting the use of electric vehicles and public transport; preparing to operate the carbon market in 2028.
In particular, Resolutions No. 57-NQ/TW and 68-NQ/TW provide strategic orientations on science and technology, digital transformation, private economic development and promoting the green industrial model. Green credit, clean technology transfer, high-quality human resource training and a one-stop mechanism in attracting investment are key tools to support businesses in the transformation process.
According to Dr. Bui Thanh Minh, Deputy Director of the Office of the Private Economic Development Research Board (Board IV), to develop the industry sustainably, Vietnam needs to overcome 4 main bottlenecks: Infrastructure, human resources, institutions and technology. At the same time, it is necessary to clearly identify the focus of industrial policies, create momentum for the domestic supporting industry, support leading enterprises in the value chain and promote cooperation.
Dr. Nguyen Ba Hung - Chief Economist of ADB Vietnam - Green growth is the process of restructuring the economy to take advantage of comparative advantages, effectively use natural resources, reduce greenhouse gas emissions, respond to climate change and promote sustainable development. Green growth model requires separating economic growth from environmental degradation, a problem that requires synchronous policy coordination and strategic thinking innovation.
Dr. Bui Thanh Minh - Deputy Director of Office of Committee IV - said that Vietnam is entering a "running" period between efficiency and innovation - phases 2 and 3 of the growth model based on productivity and innovation. However, the conversion rate is still slow due to the existence of many bottlenecks in infrastructure, institutions, technology and human resources.
It is time for Vietnam's industry to not only be a "processing workshop" but also become a center for innovation, meeting both rapid growth requirements and sustainable development goals. Transitioning to green industry is no longer an option, but the only way for Vietnam to maintain its position in the global green economic era.
