Innovation and ESG practices drive green transition in the digital era

Innovation and ESG practices drive green transition in the digital era

Innovation and environmental, social and governance (ESG) practices are becoming critical enablers for businesses to access capital, particularly green credit and green bonds at preferential costs, while strengthening long-term competitiveness.

On January 15, the Ministry of Science and Technology, the National Innovation Centre, the Institute of Strategy and Policy on Agriculture and Environment, and the Institute of Research and Socioeconomic Development, together with Dragon Capital and ESGI, co-hosted a workshop titled “Innovation and ESG Practices: Green Transition in the Digital Era”.

The event brought together around 300 participants, including representatives from ministries, government agencies, international experts, and the business community, to discuss the “dual transformation” strategy combining green and digital transitions, which is considered key to enabling Vietnamese enterprises to integrate more deeply into global value chains.

According to Prof. Dr. Bui Minh Trung, director of the Institute of Research and Socioeconomic Development, the world is entering a profound transformation phase in which sustainable development, green transition, and digital transformation are no longer optional but essential requirements for economies, nations, and businesses alike.

In this context, ESG criteria are increasingly becoming a new development benchmark, reflecting enterprises' long-term competitiveness, risk resilience, and responsibility towards society and future generations.

Effective ESG implementation enables businesses to access lower-cost capital through green credit and green bonds. Outstanding green credit in Vietnam has exceeded VND744 trillion, up 9.4 per cent compared to the end of 2024, equivalent to approximately $28.1 billion and accounting for 6.44 per cent of GDP. From an operational perspective, circular economy models also help optimise costs by reducing input materials, recycling waste into resources, and improving energy efficiency.

Dr. Pham Hong Quat, director of the National Innovation Centre, highlighted the role of innovation in providing technical tools and solutions that allow enterprises to implement ESG in a more effective, transparent, and cost-efficient manner.

“Beyond unlocking capital flows, ESG acts as a powerful 'export passport', enabling goods to overcome increasingly stringent non-tariff technical barriers and penetrate demanding international markets,” Quat said. He added that businesses can also generate new revenue streams by participating in carbon credit markets, while attracting high-quality talent and fostering innovation and technological advancement.

Highlighting international cooperation opportunities, ESGI chairman Jaime Amoedo Lucas noted strong interest from foreign investors in Vietnamese enterprises pursuing green and digital transformation strategies and developing digital green data platforms.

“Key areas of focus include building integrated green-digital databases linked to socioeconomic development, investing in smart buildings and smart cities, and creating digital twins of the physical world to support effective dual transformation,” Lucas said.

Within the framework of the conference, the organisers also launched the ESG Awards 2026 - Honouring Vietnamese ESG Enterprises, aiming to identify, recognise, and promote sustainable business models and outstanding innovation initiatives, contributing to the realisation of Vietnam's net-zero commitment by 2050.

VIR