Green transformation - driving force for Vietnam's new growth model

Institutional breakthroughs are needed to promote green transformation

The Resolution of the 14th National Party Congress emphasized the establishment of a new growth model based on improving the productivity, quality, efficiency and competitiveness of the economy; taking science, technology, innovation and digital transformation as the main driving forces; and at the same time promoting the development of the digital economy, green economy, circular economy, promoting digital transformation, green transformation and energy transformation.

According to Dr. Nguyen Quoc Viet - Public Policy expert, Hanoi National University of Economics (VNUHN), the goal set at the 14th National Party Congress is no longer growth in breadth, mainly based on expanding investment capital, exploiting resources or using cheap labor, but growth in depth, based on productivity, quality and efficiency.

The growth model based on cheap labor has revealed many limitations such as low productivity, low domestic added value and poor resilience to global fluctuations. Therefore, Vietnam needs to establish a new growth model based on productivity, technology and sustainable development. In which, dual transformation including digital transformation and green transformation is considered an important driving force for economic restructuring. If digital transformation helps improve management efficiency and competitiveness, then green transformation plays a long-term orienting role through innovation of production, consumption and resource use models towards sustainability, circulation and environmental friendliness" - Dr. Nguyen Quoc Viet assessed.

Through the green transformation process, Vietnam will have the opportunity to promote technological innovation, improve labor productivity, improve growth quality and increase the efficiency of the economy. "These are the core goals that Vietnam's new growth model needs to aim for in the coming period" - Dr. Nguyen Quoc Viet analyzed.

To promote green transformation, Dr. Nguyen Quoc Viet believes that it is necessary to build a transparent and stable market environment to encourage businesses to innovate and attract international resources. At the same time, it is necessary to implement the "sandbox" mechanism to pilot new green transformation technologies and models. He also emphasized the requirement for breakthroughs in financial mechanisms, supporting businesses to access loans, preferential credit and green funds, thereby promoting technology investment, improving management capacity and stimulating green consumption, creating momentum for the sustainable transformation process of the economy.

Businesses apply circular economy model, reducing carbon emissions

Not only stopping at macro orientation, green transformation is being concretized by many businesses with ecological, circular and carbon emission reduction models to improve competitiveness and attract high-quality investment. Nam Cau Kien Industrial Park (Hai Phong) is a typical model when identifying green transformation as a core development strategy in the long term.

Talking to Lao Dong Newspaper, Mr. Pham Hong Diep - Chairman of the Board of Directors of Shinec Joint Stock Company, the investor of Nam Cau Kien Industrial Park (IP), said that the IP has built three circular economic models, forming a symbiotic relationship between businesses operating in the industrial park. In which, the output waste of this business becomes input material for another business.

In terms of technology and environmental management, Mr. Pham Hong Diep said that Nam Cau Kien IP has deployed an online monitoring system to control emissions, wastewater and dust in the entire industrial park.

“Through the online monitoring system, Nam Cau Kien IP can monitor carbon emissions transparently and continuously. With the support of international organizations and consulting units, the industrial park has conducted carbon emission inventories for 18 businesses to determine the specific emission levels of each unit, thereby building a roadmap and appropriate solutions to reduce emissions throughout the industrial park” - Mr. Diep said.

Not only stopping at control, the online monitoring system also allows the IP to specifically calculate the amount of carbon emissions that has been cut in stages.

In the past time, the Government has had many policies and guidelines to encourage the development of ecological industrial parks, green businesses and green credit. However, the implementation process still faces many difficulties due to the lack of a synchronous "green" criteria system that is compatible with international standards. "Businesses expect that in the coming time there will be more substantive, stable and long-term support policies, while simplifying procedures and removing technical barriers to create favorable conditions for the green transformation and sustainable development" - Mr. Diep shared.