Most Vietnamese businesses are not yet ready for the green transition.

At the 2025 Green Innovation Conference in Ho Chi Minh City, experts sounded the alarm about the slow pace of green transition among Vietnamese businesses. According to Mr. Dinh Hong Ky, Chairman of the Ho Chi Minh City Green Business Association, about 90% of domestic enterprises are still unprepared for this process, even though it is no longer just a trend but a matter of survival.

Pressure from the Market and Policy

According to experts, Vietnamese businesses are facing significant pressure from both domestic and international sources.

International Pressure: International environmental regulations, ESG (Environmental, Social, and Governance) standards, carbon standards, and changing consumer habits are forcing businesses to adapt. Otherwise, they risk being excluded from the global supply chain.
Domestic Pressure: Vietnamese policies such as the Law on Environmental Protection, the carbon market, and the country’s commitment to Net-Zero by 2050 also create strict requirements.

Recognizing these challenges, the Vietnamese government has been implementing various support policies to accelerate the green transition.

Financial Policies: The government and banks are offering green credit packages with preferential interest rates, credit guarantee funds for green projects, and tax incentives for businesses investing in environmental technology.
Legal Framework Development: Completing environmental regulations, issuing emissions standards, and establishing a domestic carbon market will create a clear legal corridor to encourage businesses to take action.
Technical Support and Training: The state is collaborating with international organizations to provide training programs, technical consulting, and clean technology transfer, helping businesses access knowledge and effective solutions more easily.
Investment Incentives: Projects that invest in renewable energy, clean production, waste treatment, and more are eligible for incentives related to land, taxes, and administrative procedures.

Green Transition: Cost or Opportunity?

The Benefits of Green Transition

The green transition offers many strategic benefits for businesses, going far beyond mere compliance with environmental regulations. These benefits include:

Increased Competitiveness: Businesses that adopt green standards will meet the increasingly high demands of international markets, especially strict markets like the European Union (EU) with its Carbon Border Adjustment Mechanism (CBAM). This helps them expand their market and increase market share.
Cost Savings and Production Optimization: Adopting green technology helps businesses use resources (water, energy, materials) more efficiently and minimize waste, thereby significantly reducing long-term production costs.
Enhanced Brand Image and Customer Attraction: Consumers are increasingly concerned about eco-friendly products. A green brand can easily build credibility, trust, and attract this group of customers, creating a competitive advantage in terms of value.
Improved Stakeholder Relationships: Businesses with strong ESG performance will attract investors, partners, and talent, while also strengthening relationships with the community.

Initial Costs and Barriers

Despite the many benefits, the green transition still faces major barriers, primarily high initial costs.

Technology and Equipment Investment Costs: To switch to green production, businesses need to make large investments in new machinery, technology, and waste treatment systems. This is a significant financial burden, especially for small and medium-sized enterprises (SMEs).
Research and Development Costs: Finding and testing eco-friendly materials and production processes requires substantial R&D expenses.
Shortage of High-Quality Human Resources: To effectively operate and manage green systems, businesses need a highly skilled workforce, but the supply of this talent is still limited.
Mindset and Corporate Culture Barriers: Many businesses still have a “short-term” mindset and are hesitant to change because the benefits are not immediately visible.

Mr. Thai Van Chuyen, General Director of TTC AgriS, noted that many businesses are still hesitant about the high costs of this process. However, he emphasized that with a creative mindset, many low-cost solutions are still feasible.

TTC AgriS is a prime example. By reusing 95% of its wastewater and turning by-products into energy and fertilizer, the company reduced its greenhouse gas emissions by 21% from 2021 to 2022. Moreover, their organic and sustainable products are accepted at a higher price by customers, generating significant profits for reinvestment.

A Call to Action

Mr. Dinh Hong Ky called on business leaders to become “green architects” to drive change. He emphasized that the focus of the transition must encompass four key aspects: green production, green materials, green products, and green supply chains.

He stressed that the transition’s core focus should be on green production, green materials, green products, and green supply chains, implemented synchronously through six solutions: technology, finance, governance, socio-cultural aspects, a green market, and a collaborative public-private-international ecosystem.

“Business leaders need to become ‘green architects,’ who are both flexible and inspiring innovators,” he said.

The green transition is no longer a choice but a mandatory path to ensure sustainable survival and development. Businesses must change their mindset, moving from individual actions to cooperation, and from voluntary to mandatory, to avoid being left behind. With government support and the determination of businesses, this process will soon be accelerated, helping Vietnam stay ahead on the global green economic map.