Businesses accelerate green transition to boost competitiveness

Businesses accelerate green transition to boost competitiveness

VCCI Vice Chairman Hoàng Quang Phòng said requirements on carbon emissions reduction, energy efficiency, data traceability and environmental, social and governance (ESG) responsibilities are becoming conditions for businesses to join supply chains, access markets and capital, and work with international partners.

VCCI Vice Chairman Hoàng Quang Phòng speaks at the workshop on solutions to improve the competitiveness of industrial parks on Wednesday. Photo congthuong.vn

Pressure from global green standards is not merely a compliance requirement, but is also driving Vietnamese businesses to adopt new technologies, improve production efficiency and move further up global value chains.

Experts made the assessment at a workshop titled 'CBAM, ESG and Global Green Standards: Solutions to Improve the Competitiveness of Industrial Park Businesses', held by the Institute of Industry and Business Innovation under the Vietnam Chamber of Commerce and Industry (VCCI) on Wednesday.

Speaking at the workshop, VCCI Vice Chairman Hoàng Quang Phòng said requirements on carbon emissions reduction, energy efficiency, data traceability and environmental, social and governance (ESG) responsibilities are becoming conditions for businesses to join supply chains, access markets and capital, and work with international partners.

For businesses in industrial parks, which account for a large share of manufacturing, energy consumption and exports, the pressure is even more pronounced. The EU's Carbon Border Adjustment Mechanism (CBAM) and increasingly stringent green standards in many markets are creating an urgent need for emissions inventories, carbon data management, energy efficiency and measurable and verifiable emissions reduction plans.

However, according to Phòng, while many businesses are aware of the need for the transition, they still face considerable difficulties in implementation. Many do not know where to start and lack data and measurement tools, while constraints in technology, personnel and capital, as well as uncertainty over solutions suited to their scale and production characteristics, remain obstacles.

Chairman of the Halcom Vietnam board Nguyễn Quang Huân identified four major gaps: the lack of a unified institutional framework, insufficient sector-specific criteria, fragmented systems for measuring, verifying and monitoring data and limited support ecosystems covering workers, technology, consultancy and finance.

ESG should be integrated into corporate strategy and governance rather than being carried out merely to complete paperwork or meet short-term requirements from partners, Huân said.

Emphasising the need for an appropriate transition roadmap, Phòng said an unplanned green transition could increase costs. Conversely, early and proper preparation could help businesses optimise operations, save energy, improve productivity, strengthen their reputation and expand markets.

“What businesses need now is not only to identify the trends, but also practical guidance and solutions,” Phòng said. Businesses also needed to clearly determine which data should be standardised, what technologies and energy sources are appropriate, how financing could be mobilised and how to build a transition roadmap that meets market requirements while ensuring investment and business efficiency.

Dr Nguyễn Minh Thảo, head of the Business Environment and Competitiveness Research Department at the Institute for Policy and Strategy, recommended that businesses regularly update green policies related to their products, prepare proactively and act fast, while strengthening their capacity in capital, technology, technical expertise, personnel and governance.

In the long term, businesses need to manage emissions across the entire production chain, use resources efficiently, reduce waste, develop clean energy, promote industrial symbiosis and conduct ESG reporting, she said.

Nguyễn Bá Hải, deputy director of the Trade and Investment Promotion Support Centre under the Trade Promotion Agency at the Ministry of Industry and Trade, proposed strengthening information provision and early warnings, providing practical training, promoting exports linked to green branding, connecting businesses with green finance and technology, and boosting inter-agency coordination and public-private partnerships.

Businesses should conduct emissions inventories, make use of support programmes, strengthen supply chain links and promptly report difficulties arising during policy implementation, he said.

“CBAM and global green standards are creating growing pressure on Vietnamese businesses, especially those in industrial parks. However, they are also a driving force for businesses to restructure production towards sustainability, strengthen their position in global value chains and build long-term competitiveness,” Hải said.

INTRACO General Director Hoàng Anh Dũng said greenhouse gas inventories are the starting point for businesses to both meet compliance requirements and manage carbon effectively. Businesses could carry out the transition in three stages: in the short term, they could focus on operational efficiency and training; in the medium term, they could develop product carbon footprints and switching fuels; and in the long term, they could pursue deeper emissions reductions and technological innovation.

Drawing on his experience as director of sustainable development at Du Long Industrial Park, Dr Trần Hồng Hải said industrial parks and businesses need to conduct a comprehensive assessment of their potential to transition towards the eco-industrial park model and build industrial symbiosis networks.

They should also strengthen monitoring of resource efficiency and cleaner production and link green finance with social objectives to improve their advantages in international supply chains, he added.

To help the business community overcome these challenges, VCCI and research institutes pledged to continue strengthening policy consultancy, providing self-assessment toolkits and organising in-depth training courses on ESG and CBAM.

Experts also called on State agencies to promptly issue detailed technical guidance on sector-specific emissions benchmarks, complete the domestic carbon credit market and simplify procedures for accessing green credit.

Adapting to global green standards is not a process that can be completed overnight. It is a long journey requiring perseverance, systematic investment and close cooperation among businesses.

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