Global green trade trend: Green transformation - A chance for innovative businesses

DNHN - According to economists, businesses that actively implement green transformation early in the global green trade trend will save significant money, protect their competitiveness, and establish a sustainable foundation for the future.

A stimulus for investment and expansion

The President of the European Chamber of Commerce in Vietnam (EuroCham), Gabor Fluit, stated that clean and renewable energy is an investment and growth catalyst. European companies rely heavily on this source of energy. As a result of their inability to meet the demand for renewable energy sources, several investment projects have recently had to halt expansion.

The global demand for green consumption, accompanied by stricter environmental standards and smaller carbon footprints, has prompted foreign investors to actively transition to green production.

Investors always inquire about renewable energy and green materials when investing in Vietnam. Investors who have entered Vietnam are also interested in "greener" practices. Simultaneously, businesses in the supply chain of the world's leading brands must comply with the requirements of "greening" production, such as reducing emissions, conserving water and resources, and fulfilling their social and environmental responsibilities.

Therefore, Vietnam's strong commitment to achieving net zero emissions (Net Zero) by 2050 at COP26 has created a new investment opportunity. Along with the mandatory greenhouse gas inventory regulation for large businesses, the recent Power Plan VIII has initially fulfilled the government's pledge to achieve carbon neutrality.

Net Zero race in Vietnam

Sharing the vision and supporting the government's Net Zero objective, Vietnamese businesses are entering the green transformation race with numerous projects and initiatives aimed at reducing emissions, thereby transforming the "brown" development model into a "green" one.

According to the report on readiness to implement ESG for green transformation, by 2022, up to 80 percent of businesses will have committed to implementing ESG within the next two to four years.

BSI Vietnam, a unit that specializes in providing solutions for sustainable development, reported that the number of training courses related to greenhouse gases for businesses to implement the inventory program has increased six to sevenfold over the past few years.

Hundreds of companies have made substantial investments in renewable energy over the past five years, contributing to the rapid growth of this key sector. In which the TNPower Energy Joint Stock Company is well-known. TNPower, a subsidiary of TNG Holdings Vietnam, has expeditiously commissioned three solar power plants. These plants contribute nearly 400 million kWh annually to the national electricity grid, reducing CO2 emissions by 453,000 tonnes annually.

The transformation of industrial zones to net-zero emissions is of particular importance for promoting green growth. Vietnam piloted the conversion of traditional industrial parks into ecological industrial zones in five provinces and cities from 2015 to 2019. 72 enterprises participating in the program have implemented more than 900 solutions for resource efficiency and cleaner production, saving a total of VND 76 billion per year by reducing energy consumption, material usage, and resource consumption.

With 403 industrial zones in operation across the nation, promoting the development of eco-industrial parks will require substantial private sector resources.

IMC Industrial Park Operations Management Service Joint Stock Company, a member of TNG Holdings Vietnam's ecosystem, has implemented the "green industrial park" operation orientation over the years. IMC is attempting to promote symbiotic models based on the content of the circular economy, with the following guiding principles: "Recycling - Diversity - Using green energy - Bio-based platform"

IMC signed a memorandum of understanding (cooperation agreement) with several large rooftop solar power partners in 2022, including Green Yellow, Shire Ork International Vietnam, and Risen Vietnam. This is the first step in assisting businesses in IMC-managed IPs to go green and utilize renewable energy for production.

According to experts, businesses benefit from an early strategic orientation when implementing green transformation. Choosing the appropriate solution and technology from the outset will help businesses save a significant amount of money during the implementation process.

TNG Holdings Vietnam has undergone a green transformation in pursuit of a more convenient lifestyle. Currently, the Group is accelerating green transformation in tandem with digital transformation across all operational fields, including real estate management, business & development, real estate leasing, trade & services, hotels & resorts, energy, and more.

When the trend of green trade is inevitable, the first steps businesses take today to reduce carbon will lay the groundwork for future sustainable development.

P.V