The journey to green and sustainable
Embracing global trends amid Vietnam’s efforts to achieve its net-zero emissions target by 2050, the focus of the upcoming Vietnam Connect Forum 2024 is on the country’s economic transition.
An assessment by the European Commission found that the global market for green products and services is estimated to currently exceed $5 trillion and is growing at a faster rate than traditional products and services. By 2030, it is forecast that the green economy will have created approximately 24 million new jobs globally.
The green economy also presents major opportunities to attract investors in various new sectors, such as renewable energy, smart transportation, smart agriculture, green urbanization, green buildings, and green finance.
Determined not to be left behind in this increasingly important development trend, Vietnam is undergoing a strong transformation from a “brown economy” to a “green economy”, with a focus on circular transition, energy transition, low carbon emissions, ensuring green growth, and the successful implementation of its commitment to net-zero emissions by 2050 and sustainable development. This is seen as a Green Revolution / Industrial Revolution and has become an inexorable trend in global development.
Going green
On a national level, Vietnam’s Green Growth Strategy reflects its determination and aspiration to develop into a powerful and prosperous country in a sustainable manner.
The concept of a green economy has been and is being cemented in highlevel regulatory standards and contained in international trade commitments. The Carbon Border Adjustment Mechanism (CBAM) has been operational since October 1, 2023, while the EU Deforestation Regulation (EUDR) is slated to become effective from January 1, 2025.
Additionally, global initiatives on plastic footprints and plastic borders continue. Consequently, compliance with global supply chain standards for exported goods is now a mandatory requirement.
“In Vietnam, there is a concerted effort to accelerate the transition of the economy towards green and sustainable practices, reflecting a key policy focus of the Party, State, and government,” Mr. Bui Khanh Nguyen, Vice President of Public Affairs, Communications and Sustainability, at Coca-Cola Beverages Vietnam, told VET.
Agreeing, Mr. Thammasak Sethaudom, President and CEO of Thai conglomerate SCG, said that since its commitment at COP26, the Vietnamese Government has been steadfast in its pursuit of achieving net-zero emissions by 2050, thereby creating a sustainable economy.
“This commitment is demonstrated through its promotion of collaborative efforts between the public and private sectors and its endorsement of the National Action Plan for Circular Economy (NAPCE) framework,” he said. “Building on this momentum at COP28, the government has reaffirmed its dedication by actively embracing and implementing initiatives aligned with the Global Cooling Pledge.”
Indeed, regulations within the Law on Environmental Protection, issued in 2020 and effective from January 1, 2022, are being vigorously implemented. Under Decision No. 01/2022/QD-TTg from the Prime Minister, a list of sectors and facilities are required to conduct greenhouse gas inventories.
Starting from 2023, these enterprises have been required to voluntarily conduct inventories of their greenhouse gas emissions. By 2025, a greenhouse gas inventory will be mandatory for enterprises.
Within this law, provisions regarding the Extended Producer Responsibility (EPR) are further specified, aligning with international practices. These represent key policy instruments embodying the Party and State’s orientation towards green economic development, the circular economy, and low carbon emissions in Vietnam.
Though acknowledging Vietnam’s efforts and achievements in its green transformation process, FDI businesses have still identified certain areas that need improvement for the country’s sustainable economic development.
According to Mr. Lim Dyi Chang, Country Head of Commercial Banking at UOB Vietnam, the country’s sustainable development currently faces three main challenges.
“The first is the high cost of green transformation,” he explained. “The UOB Business Outlook 2024 indicates that 34 per cent of Vietnamese manufacturers
“Vietnam is well-positioned to lead the green economic transition in Southeast Asia. With a thriving market, strong government support, abundant renewable energy resources, and a techsavvy workforce, Vietnam has the key ingredients for success.” Mr. Lim Dyi Chang Country Head of Commercial Banking at UOB Vietnam
and engineers grapple with profitability in green initiatives. This can translate into higher consumer prices, impacting sales. The second barrier is underdeveloped renewable energy infrastructure, with 38 per cent of Vietnamese businesses citing this as a challenge.”
Lastly, he highlighted the limited access to green financing. The report showed a lack of green financing solutions as a significant barrier, according to 50 per cent of respondents. Traditional loans may not be suitable for long-term green projects with extended payback periods.
“Sustainability is hard work, frustrating, and costly, but it’s the only way to sustain our life as we enjoy it today on this planet”, Mr. Alexander Koch, Managing Director of Heineken Vietnam, said. “I believe that as part of the private sector, we need to work closely with the government to help Vietnam reach its net-zero goals by 2050.”
Vietnam Connect Forum 2024
Recognizing the importance of sustainable and green development for Vietnam’s economic prospects, the Vietnam Connect Forum 2024, with the theme “Vietnam Moves Towards a Green and Sustainable Economy - From Government Strategies and Policies to Initiatives and Solutions from Localities and Businesses”, will place these factors at the center of discussions.
The Forum is an annual event of national scale with international connectivity, jointly organized by the Ministry of Foreign Affairs and VET / VnEconomy. Its main objective is to enhance the effectiveness of links and increase opportunities for investment and trade cooperation between localities, international partners, and business communities, while supporting the integration of Vietnamese localities and enterprises into global value chains.
The Forum takes place over one day with a series of networking activities, information exchanges, investment promotions, and trade facilitation between international partners, foreign business associations, localities, and enterprises.
Building on the success of three previous editions, in Hanoi in 2021, Ho Chi Minh City in 2022, and Da Nang in 2023, the Vietnam Connect Forum 2024 will take place on April 10 in the port city of Hai Phong. Considered a key growth pole of the northern economic triangle, Hai Phong is also striving to become a leading maritime economic center in Southeast Asia.
“The Vietnam Economic Forum represents the ever-closer collaboration between economic diplomacy and economic journalism, aiming to promote and enhance the effectiveness of connectivity activities, expand cooperation in emerging global trends, and help Vietnamese localities and businesses in furthering their integration into global value chains,” Mr. Nguyen Nhu Hieu, Head of the Ministry of Foreign Affairs’ Department of External Affairs Provincial, emphasized ahead of this year’s gathering.
The Forum will discuss new international trends in the green economy, the low-carbon economy, and the net-zero economy, and will reflect the practical implementation of green transformation by localities, economic sectors, and the business community in Vietnam, showcasing the country’s progress in green economic development.
Representatives from ministries, national agencies, and committees, leaders from 25 northern cities and provinces, as well as representatives from diplomatic agencies, international organizations, and business associations will join economic experts and over 200 FDI and Vietnamese businesses in sharing their opinions at the Forum.
The participation of government leaders is another example of the country’s steadfast resolve towards green transformation and sustainable development. “The openness and support of the Vietnamese Government in promoting the transition to a green economy has promoted business collaboration, national and business connectivity, and education and guidance to the community about the importance of sustainable practices,” Mr. Sethaudom believes.
Discussion sessions will feature an exchange of international experience from pioneering countries in green transformation. Success stories and even setbacks will provide valuable insights for Vietnam’s green transformation process, helping the country’s business community and foreign enterprises devise more suitable and effective strategies.
Recommendations from practical experience will also inform policies to facilitate
“In Vietnam, there is a concerted effort to accelerate the transition of the economy towards green and sustainable practices, reflecting a key policy focus of the Party, State, and government.”
and accelerate the green transition, meeting Vietnam’s short, medium, and longterm socio-economic development goals.
23rd Golden Dragon Awards
Within the framework of the Vietnam Connect Forum 2024, the Top 10 and Top 50 exceptional FDI enterprises in 2023 will be unveiled and honored at the prestigious 23rd Golden Dragon Awards. Originating in 2001, this initiative from VET / VnEconomy is held annually to establish a platform for fostering engagement, exchanging insights, and sharing information on the FDI landscape in Vietnam.
The Golden Dragon Awards’ surveys and recognition programs are designed to acknowledge the outstanding endeavors and accomplishments of FDI enterprises operating in Vietnam.
Over the past two decades, the Golden Dragon Awards has surveyed and honored thousands of FDI enterprises operating effectively in various economic sectors in Vietnam. Those surveyed, evaluated, and honored are all large-scale enterprises with important links in regional and global supply chains. In the past decade, the Golden Dragon Awards has focused on criteria related to digital transformation, green transformation, and the application of advanced technology by enterprises in production and service provision.
“Most notably, in the past three years, to keep pace with the latest development trends, the Organizing Committee has included several digital and green transformation criteria to the registration and evaluation guidelines for participating businesses,” Mr. Dao Quang Binh, General Managing Editor of VET / VnEconomy, said about recent changes to the Golden Dragon Awards. “This year, we also introduced net-zero emissions criteria to the evaluation process.”
Over the past two years, proactive disclosure and commitments by enterprises to implement the roadmap towards Net Zero 2050, with specific plans for circularity and technological and green conversion in production and trade processes to reduce emissions and plastic waste, have also been considered significant points.
“I am convinced that green transformation is an inexorable trend for businesses striving to compete on a broader global scale,” said Mr. Nguyen. “It not only ensures a competitive edge but also fosters responsible growth in the long term.”
As for Mr. Chang, he believes that with a thriving market, strong government support, abundant renewable energy resources, and a tech-savvy workforce, Vietnam is currently well-positioned to lead the green economic transition in Southeast Asia. “Vietnam has the key ingredients for success,” he concluded. ■
Mr. Bui Khanh Nguyen Vice President of Public Affairs, Communications and Sustainability, at Coca-Cola Beverages Vietnam