Green Transition: An Opportunity to Build an Effective Business Development Strategy

DNHN - In the face of the impacts of climate change, as resources are gradually being depleted, the green transition is becoming an inevitable trend for development. Therefore, it is an opportunity to build an effective business development strategy.

Green transition is an inevitable trend for development

Green growth and green transition have received great attention from the Party and the State, as demonstrated through national strategies and legal frameworks, specifically the National Strategy on Green Growth for the 2021-2030 period and the National Action Plan on Green Growth for the 2021-2030 period approved by the Prime Minister in Decision No. 1658/QD-TTg dated October 1, 2021, as well as the National Master Plan for Energy for the 2021-2030 period, with a vision to 2050 through Decision No. 882/QD-TTg dated July 22, 2022.

To have an overview of the green economy in Vietnam, VOV Online Newspaper (Voice of Vietnam) organised the “Vietnamese Business Forum: Promoting Green Economic Development” on the morning of April 17 in Hanoi, with the hope that the Forum would be a place for exchange, sharing, and listening between state management agencies, businesses, localities, experts, and researchers to further specify policy actions as well as support solutions to promote green transition of Vietnam’s economy.

At the Forum, Director General of the Voice of Vietnam Do Tien Sy, a member of the Party Central Committee and a National Assembly delegate, stated: “In the face of the impacts of climate change, the environment, and the gradual depletion of resources, the green transition is becoming an inevitable trend for development. In businesses, the gradual ‘greening’ of production, green factories, green technology, clean raw materials, green energy, etc. has become an inevitable trend and creates a competitive advantage. Therefore, the green transition is not only a challenge but also an opportunity to build a business development strategy most effectively.”

To achieve the goal of green economic development, the State has implemented many measures to encourage domestic and foreign businesses to approach and apply the green agriculture model, develop green industry, invest in renewable energy and energy saving, and reduce greenhouse gas emissions. Many domestic businesses have proactively innovated, promoted in-depth model transition, and linked it with sustainable and environmentally friendly development.

Vietnam is entering a new development phase associated with development goals for 2030, with a vision for 2045. The 10-year socio-economic development strategy (2021-2030 period) has set out a major orientation to innovate thinking and action, proactively grasp promptly, and effectively utilise the Fourth Industrial Revolution in conjunction with comprehensive and in-depth international integration to restructure the economy, develop a green economy, a digital economy, and a digital society.

Also at the Forum, Ms Ta Thi Yen - Deputy Head of the Delegate Affairs Committee, and Delegate of the 15th National Assembly, affirmed: “As one of the six countries in the world most affected by climate change, Vietnam has been and is pioneering in implementing ‘green’ commitments, which are assessed by the international community as a model of a developing country with many difficulties but has made leading contributions to the safe ‘common home’ of humanity. At the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), Vietnam committed to developing and implementing strong greenhouse gas emission reduction measures with its resources, together with the cooperation and support of the international community, to strive to achieve net zero emissions by 2050.”

“Sustainable development, digital economic development, circular economy, and green growth are becoming inevitable global transition trends, a development model chosen by many countries. However, the world is undergoing many complex changes and developments and is facing many risks of hunger, inequality, environmental pollution, natural disasters, and complex climate change, causing many difficulties and challenges in implementing sustainable development goals on a global scale. Domestically, we can all clearly see that the Party and State’s policy on green transition is very clear, with a well-structured roadmap and strong determination. If we follow closely, in many visits by senior Vietnamese leaders abroad, they have all emphasised the message of the digital economy and green economy. This has become one of the important discussion topics when Vietnamese leaders visit European countries or some economies where ‘green’ factors are the backbone,” Ms Yen shared.

Speaking to reporters, Mr Nguyen Dinh Tho - Director of the Institute of Strategy and Policy on Natural Resources and Environment, said: “In the 2017-2021 period, about 9 billion USD of FDI capital was mobilised into green sectors in Vietnam, focusing on renewable energy and the production of equipment and machinery for projects in the green growth sector. In terms of international rankings, according to the 2023 edition of the Green Growth Index, Vietnam ranked 73rd out of 245 countries and 16th out of 50 countries in Asia, with an index score of 56.44. Vietnam has performed well in the aspects of protecting natural capital and social inclusion.”

Challenges in promoting green economic development

In addition to the achievements, Mr Tho pointed out some challenges in promoting green economic development in Vietnam. Specifically:

Firstly, the lack of coordination and unity between different sectors and levels of government leads to overlapping and inconsistent policies and plans, hindering the effective implementation and monitoring of green growth actions and targets.

Secondly, the green financial system is still in its infancy, making it difficult for green projects to mobilise financial resources, including raising capital or accessing preferential credit. This stems from the incomplete green financial legal framework (green bond market) and the fact that new green financial mobilisation tools have not yet been implemented (carbon market).

Thirdly, the enforcement of environmental regulations is sometimes lax and cumbersome, leading to non-compliance by businesses.

Fourthly, the level of awareness and participation of the community in green growth and sustainable development issues is still not high. This limits the potential for behavioural change and social innovation that can support green growth and low-carbon development.

Finally, the adaptation and application of green technology can be hindered by the country’s technological and infrastructural limitations.

Also at the forum, Ms Yen stated: “Currently, it must be admitted that factors such as natural disasters, climate change are becoming increasingly severe, complex and unpredictable, the shortage of resources, energy, the low level of scientific and technological development; the development of businesses and the entire economy faces many difficulties after the Covid-19 pandemic, etc. are also considerable challenges in implementing sustainable development goals and fulfilling the commitment to achieve net zero emissions by 2050.”

How to develop a sustainable green economy?

Recognising the above difficulties, which are both challenges and opportunities in implementing green growth and sustainable development goals for businesses and investors.

From a personal perspective, Ms Ta Thi Yen assessed the importance of the following solutions to promote green economic development:

Firstly, it is necessary to complete the legal framework for the green economy. This is an important factor, a pioneer in determining the “green” direction of the economy.

Secondly, it is necessary to create consensus and unanimity from the Government to businesses and people to address environmental challenges such as climate change, environmental pollution, deforestation, and the depletion of natural resources.

Thirdly, focus on exploiting and effectively developing renewable energy sources, promoting the use of sustainable energy to replace energy sources that affect the environment.

Fourthly, promote a circular economy, focusing on designing products that can be reused, repaired, remanufactured, and recycled to minimise the generation of waste that can easily cause environmental pollution.

Fifthly, it is necessary to strengthen international cooperation at the bilateral and multilateral levels, spread the message of a Vietnam determined to transition to green, learn technology, and be an active partner of the international community in working together to solve the common problem of the globe.

Speaking to reporters, Mr Nguyen Dinh Tho gave his opinion: “If Vietnam wants to participate in and invest in global trade, shortly, Vietnamese businesses will have to report on sustainable development. Businesses that do not meet the requirements for reporting on sustainable development will not be able to list and will not be allowed to export goods to the European market as well as many developed countries. Therefore, the current challenge for businesses will be to ensure sustainable development in the coming time.”

From the perspective of the Institute of Strategy and Policy on Natural Resources and Environment, Mr Tho informed: “In the policy of the Party Central Committee, the National Assembly, and the Government, we have clearly outlined that a circular economy is a challenge for us to achieve the goal of net zero emissions by 2050. Article 142 of the Law on Environmental Protection stipulates that sectors and levels from the central to local levels must integrate a circular economy into the process of developing their plans, schemes, and strategies. This circular economy is a whole chain of sustainable production, from investigation, exploration, exploitation, design, production, distribution, consumption, collection, storage, recycling, and reuse. To do this, sectors and localities need to implement the Government’s policy in the coming time. Currently, the Institute of Strategy and Policy on Natural Resources and Environment is developing a National Plan for Implementing a Circular Economy.”

Today’s discussion forum is considered to be very practical. The presentations and opinions at the Forum will be a scientific and practical basis of real value for recommendations to competent authorities for consideration and decision. In addition to the policies and strategies of the State, businesses also need to see the context, challenges, and opportunities in green development to self-identify, forecast strategies, plans, programs, and projects of their businesses to seize opportunities, overcome difficulties and challenges in the green transition process, and make practical contributions to the sustainable development of the country.

Bao Bao