Improving policies to promote green enterprises

Vietnam is determined to accelerate the "greening" of its economy and fulfill its commitment to net-zero emissions by 2050. To achieve this goal, the active participation of businesses is essential. However, for enterprises to engage proactively and effectively, the foremost requirement is to improve legal framework, particularly government support policies.

The government has issued the National Green Growth Strategy for 2021–2030, with a vision toward 2050, as well as the National Green Growth Action Plan for 2021–2030. Ministries, sectors, and localities have also integrated green growth initiatives into their socio-economic development plans. Nevertheless, there is still ample room for further policy improvements to better support businesses.

According to a representative from the Ministry of Finance, the first priority is to establish a clear national green taxonomy, which will serve as the basis for specific incentive policies for businesses. The government is also considering pilot mechanisms for green investment projects, enabling businesses to access support when adopting environmentally friendly technologies.

Additionally, Vietnam’s participation in various next-generation free trade agreements (FTAs) presents a major opportunity, as import tariffs in partner markets could be reduced to 0%. However, this also comes with stringent environmental technical standards. Vietnamese businesses must rethink their strategies and adopt innovative approaches to meet these requirements while leveraging their competitive labor costs.

Consumer support is essential

The green transition poses numerous challenges, particularly for small and medium-sized enterprises (SMEs), which often lack expertise, resources, and a high level of innovation. According to Binu Jacob, general director of Nestle Vietnam, businesses should engage in multilateral partnerships rather than acting alone.

Furthermore, younger generations play a key role in driving the green economy. Jacob noted that Generation Z is highly interested in sustainability, possesses knowledge, and offers diverse solutions. Raising consumer awareness of net zero is equally important, as businesses will struggle to implement sustainable initiatives without their support, given the high costs of recycling.

Quach Quang Dong, deputy director of the Department of Energy Efficiency and Sustainable Development at the Ministry of Industry and Trade, emphasized that businesses must focus on reducing emissions, adopting new technologies, enhancing competitiveness, and strengthening resilience against risks. At the same time, they should integrate a circular economy model into their production and operations to improve global integration and fulfill their environmental responsibilities.

Carbon market – a key for Vietnam on the path to net zero

The carbon market not only alleviates environmental pressure but also offers significant financial advantages, supporting businesses in adopting green technologies without bearing the full burden of costs, experts said at a discussion on Vietnam’s carbon credit exchange mechanism.