Enterprises need a long-term strategic vision in green transformation and green growth

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Promoting the "greening" of the economy, green growth is not only a goal but also a strong commitment of Vietnam to the international community in minimizing negative impacts on the environment and moving towards the Net Zero target by 2050.

GREEN TRANSFORMATION BRINGS LONG-TERM BENEFITS TO ENTERPRISES

Currently, Vietnam has participated in new-generation free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Vietnam-EU Free Trade Agreement, the Vietnam-UK Free Trade Agreement, etc.

At the recent discussion on "green growth - a global trend, an inevitable choice", Mr. Quach Quang Dong, Deputy Director of the Department of Energy Saving and Sustainable Development, Ministry of Industry and Trade, emphasized that these new-generation free trade agreements all have commitments on the rate of eliminating import tariffs for participating countries. The agreement can be up to 100%.

This will create challenges for developed countries in protecting domestic production from competition in production costs from developing countries, including Vietnam, which have advantages in lower labor costs, lower energy costs as well as environmental standards. These countries set up and apply additional technical barriers, including those related to factors such as product quality, origin or environmental protection standards, thereby limiting cheap products from developing countries.

With import tariffs in countries participating in the new generation of free trade agreements that can be as low as 0%. This will be a great opportunity for Vietnamese enterprises that want to reach out to the world.

This also requires Vietnamese enterprises to drastically change their thinking and strategies to meet the requirements of sustainable development and green growth. Businesses need to pay attention to factors related to product quality and environmental standards and must comply with the rules of the game of developed countries.

However, in addition to potential opportunities, the process of sustainable development and green growth still faces many challenges. Sharing this, Mr. Le Viet Anh, Director of the Department of Science, Education, Natural Resources and Environment, Ministry of Planning and Investment, said that the challenges come from the general environment as well as from businesses. Business awareness related to green growth also needs to be strengthened in the coming time. Businesses also need to learn more about the policies that the State is giving incentives for green development and growth.

Many businesses are currently implementing the process incorrectly related to environmental and green growth certifications and certificates. In the coming time, state management agencies will have to determine a system and policy mechanism to have clear rewards and punishments, that is, incentives for businesses that do business properly and sanctions for businesses that do not do business properly.

This requires the coordination of many sectors and fields so as not to miss out on businesses that deserve incentives as well as businesses that are subject to strict sanctions from our legal policy system as well as public opinion.

Not only that, according to Mr. Le Viet Anh, green transformation requires relatively large investment costs. Many businesses are hesitant to invest in technological chain innovation as well as long-term innovation investment, ensuring greenhouse gas emission standards or environmental protection standards.

Therefore, the State needs to have clear policy mechanisms to support these businesses in the transformation process. Of course, from the business side, it is also necessary to clearly identify the long-term, green transformation brings long-term benefits to the business.

 “Businesses need to be aware that short-term profits will quickly be affected by the progressive policy mechanisms currently in place worldwide,” emphasized the Director of the Department of Science, Education, Natural Resources and Environment.

In the face of international standards related to environmental protection and green growth, this expert affirmed that “this is a global game, we need to meet global criteria and standards to survive in today's constantly changing world”.

Typically, the European Union has issued a cross-border carbon control mechanism (CBAM). With this mechanism, in just a few years, businesses that do not clearly understand the processes, regulations, and rules to ensure that goods and products meet standards and conditions will be severely affected.

NEED A LONG-TERM, STRATEGIC VISION

According to experts, in the green growth process, in addition to the direct or indirect support role of the State through policy mechanisms, the proactive grasp and development of enterprises is extremely important.

From the side of state agencies, clearly define the contents that will focus on supporting enterprises. Specifically, the policy mechanism must be quickly and promptly issued in full to support sustainable development and green growth.

Along with that, it is necessary to mobilize sufficient financial resources so that the sustainable development and green growth processes have enough resources to implement and support enterprises.

In particular, it is necessary to increase awareness for both enterprises and users. When consumers tend to consume green, environmentally friendly products, it will create motivation for enterprises to continue the production and business process.

 “Green products are currently priced higher than conventional products. When we have mobilized and ensured the participation of people in consuming green products, it will be an important driving force for businesses to innovate technology and continue to implement the process of sustainable development and green growth,” Mr. Le Viet Anh emphasized.

Sharing this, Mr. Dong pointed out that in terms of mechanisms and policies, it needs to have comments, analysis, and evaluation, as well as recognition, encouragement, and support to increase awareness and orientation for sustainable consumption and production, towards green and clean goods and services. It is necessary to create motivation for businesses to take the lead, pioneer, and hold leading positions, thereby spreading to attract other businesses to follow.

To support businesses, the Government, ministries and sectors need to supplement and improve mechanisms and policies to respond to the new context and situation of the world, while protecting the legitimate interests of businesses, creating favorable conditions for businesses to develop and limit risks.

Currently, for small and medium-sized enterprises, to develop in a green and sustainable direction, it is necessary to change, transform as well as upgrade and improve production technology chains.

However, this requires large investment costs. To support businesses, the Government needs to support the maximum exploitation of domestic and international resources, including new financial sources such as green finance or carbon markets to create more resources to support business development.

The vision and strategy of a large number of small and medium-sized enterprises are still limited, still seasonal, short-term and immediate. Therefore, according to Mr. Dong, to transform towards a green, sustainable direction, reaching out to the world, requires businesses to have a strategic, long-term vision, ensuring long-term benefits, ensuring competitiveness in the context of globalization and meeting the general trend of the world. If this is not done, the transformation will become distant./.