In the context of sustainable development becoming a global goal, green transformation is no longer an option but an inevitable trend. Especially with over 97% of businesses in Vietnam being small and medium-sized enterprises (SMEs), participating in this process not only enhances competitiveness but also ensures long-term development in the future.
Current Status of Green Transformation in Vietnamese Enterprises
According to a survey by the Private Sector Development Research Board (Board IV), up to 64% of Vietnamese enterprises have not implemented any actions related to green transformation. Most businesses are still in the stage of exploring the concept, without specific plans or clear solutions in place.
The main reason for this situation is the lack of investment capital — identified by 50% of businesses as the biggest challenge. In addition, other difficulties include a lack of suitable technical personnel, limited access to green technologies, scarce expert information, and challenges in meeting green credit criteria.
Digital Transformation as the Foundation, Green Transformation as the Goal
Experts suggest that green transformation is the next step in a business's development journey after digital transformation. Digital transformation acts as the foundation, enabling businesses to digitize data, automate processes, and optimize operations. With a solid foundation, businesses can effectively implement green solutions in a comprehensive and sustainable manner.
Understanding this relationship helps businesses be more proactive in adapting and better equipped to access and utilize green capital effectively, instead of passively seeking funding.
Building a Policy Ecosystem to Support Green Transformation
To ensure that green transformation happens consistently and effectively, Vietnam needs to quickly build a flexible policy ecosystem tailored to the characteristics of each type of enterprise.
First, it is crucial to establish a national Green Credit Guarantee Fund to help SMEs access preferential capital sources. At the same time, the list of green technologies eligible for import tax exemption or reduction — currently limited to only 54 items under the 2012 APEC agreement — should be reviewed and updated.
Standardizing product traceability systems through technologies such as blockchain and digital identity will enhance transparency and improve competitiveness in international markets. Moreover, support programs for green startups and innovation must be prioritized to create breakthroughs in areas like renewable energy, circular production, and sustainable agriculture.
What Should Businesses Do?
Green transformation cannot be a solo journey. Businesses need to be proactive in both mindset and action. First, they should build development strategies aligned with sustainability goals, practice green governance, and transition production processes toward environmental friendliness.
Additionally, businesses should actively seek green financing from both domestic and international sources, understand green credit criteria, and collaborate with financial institutions and support funds. Investment in technology, improving product quality, and developing socially responsible products are also essential steps.
Act Now – A Chance to Lead
This is a golden time for Vietnamese businesses to make a breakthrough by embracing and implementing green transformation. Being ahead of the curve not only boosts competitiveness but also opens doors to access demanding markets, where green standards are increasingly mandatory.
One specific support opportunity for businesses is the GEVA Project – Green Export Incubation and Acceleration Program through Voluntary Sustainability Standards (VSS), funded by the Swiss Government, managed by the International Trade Centre (ITC), and operated by KisStartup.
The project supports businesses to:
-
Self-assess capabilities through an online measurement tool
-
Participate in in-depth training programs on green exports and VSS
-
Be selected for a 6-month, customized 1:1 coaching package tailored to each business
Green transformation is an irreversible trend. The businesses that seize this opportunity will be the leaders of the future. Don’t wait — take action today to build a sustainable future for your business and for Vietnam’s economy.