Small and medium enterprises have many advantages for green transition to access EU market

DNHN - In an interview with the Business and Integration Magazine, Mr. Vu Ba Phu, Director General of the Trade Promotion Agency, highlighted that SMEs possess numerous advantages in the green transition, digital transformation to access the EU market.

In an interview with the Business and Integration Magazine, Mr. Vu Ba Phu, Director General of the Trade Promotion Agency under the Ministry of Industry and Trade, highlighted that small and medium enterprises (SMEs) possess numerous advantages in the green transition, digital transformation, and shared social responsibility to access the European Union (EU) market.

The green transition is an inevitable global trend. The EU is recognized as one of the most proactive regions worldwide in pursuing this trend, particularly with the adoption and implementation of the European Green Deal since early 2020. This framework package of policy initiatives aims to make the EU a carbon-neutral region by 2050 and minimize the use of natural resources in economic development.

Speaking on the sidelines of the press conference announcing the Green Economy Forum and Exhibition 2024 (GEFE 2024), scheduled for the end of October, which will showcase the green economy products and models of 24 diverse Vietnamese enterprises alongside many leading EU corporations, Mr. Phu stated that there is a great opportunity for both sides to enhance cooperation.

The Ministry of Industry and Trade will organize a B2B trading conference between Vietnamese and EU enterprises during this event to help Vietnamese businesses adapt better and seize more cooperation opportunities in light of EU regulations regarding green transition and social responsibility.

“The Ministry of Industry and Trade has launched numerous activities to support businesses regarding green transition. Since 2020, we have organized the first workshop related to sustainable development and green transition.

Through trade promotion activities, we have recognized that there are significant opportunities for small and medium enterprises, even micro-enterprises, in the green transition. This is because their compliance costs for meeting the new green transition requirements are much lower than those of larger enterprises,” Mr. Phu stated.

According to the Director General, large enterprises have established internal control systems and compliance management that are already in place. They have invested heavily in their current control and management systems. Therefore, transitioning to meet the new requirements for green transition, digital transformation, and social responsibility will require more time and investment from large enterprises to comply with EU and other countries' green transition requirements.

In contrast, the capital of SMEs, particularly startups, allows them to immediately adhere to the management systems required by the EU and other countries. They have more advantages in accessing markets under green transition requirements.

Regarding EU support for Vietnamese businesses in the green transition, Mr. Phu noted that the EU has provided financial and expert assistance through various projects and programs aimed at raising awareness among communities and businesses about implementing green transition, digital transformation, and social responsibility.

Additionally, EU policy consultations have helped Vietnam refine its institutional framework and address many issues related to the green transition, especially through the Green Transition Support Fund.

After four years of implementing the green transition, Vietnamese enterprises have matured significantly and are showing high proactivity. Businesses aiming to export to the EU must meet many standards, including the EU Green Deal and other regulations, the most recent being social responsibility regulations for companies with 3,000 employees or more in Germany.

“Most goods exported by Vietnamese enterprises to EU supermarkets and distribution systems go through multinational companies based in EU countries. Therefore, businesses must gradually transition to meet green transition requirements and provide explanations regarding their social responsibilities in the past,” Mr. Phu advised.

Ha Anh