A roadmap to prepare for greener products

What impact have changes in quality standards and new requirements on green production from international import markets had on the awareness and thinking of Vietnamese businesses?

Nguyen Le Thang Long, president of the Eco-Friendly Products Manufacturer Association

Vietnamese businesses exporting goods to international markets, including large markets such as Europe, the US, or Japan, have become familiar with basic management standards.

From 2026, Vietnam will face risks when the cost of exporting some products to the European Union market skyrockets under the impact of its Carbon Border Adjustment Mechanism.

When developed countries convert to green products, in addition to the above standards, Vietnamese manufacturers must also meet other standards to demonstrate environmentally friendly products, such as biological origin, green products and eco-labels, and biodegradable standards. This has put Vietnamese businesses in a situation where they are forced to learn, know how to apply, and build a roadmap to achieve.

What has the association done to support member businesses to commercialise products?

Supporting businesses aiming to produce and develop environmentally friendly products and promote green consumption is both the responsibility and the purpose of our establishment.

Since 2022, the association has organised events and seminars to connect supply and demand and introduce to consumers and interested partners new products of member businesses.

We also have a team of experts ready to advise and support businesses in product development, choosing to register standards and certificates suitable for the domestic market and each export market.

In addition to expanding capacity and markets related to fully biodegradable products, we are aiming to promote businesses to engage in research of other products such as recycled products, paper packaging products, and new environmentally friendly products. Moreover, we are also determined to strengthen communication and marketing activities for our green products in both domestic and global markets.

We also opened a playground for businesses to connect with each other, thereby contributing to perfecting the supply chain from selecting raw materials, finding suitable production solutions, then introducing them to businesses to encourage them to boldly switch from producing conventional products to greener products.

In fact, the business of environmentally friendly products is still difficult, requiring more efforts from our businesses in continuously updating new technologies and communication, educating consumers so they can switch to truly smart, sustainable consumption habits.

On the other hand, when developed countries have specific policies on the circular economy, emission reduction, and net-zero, financial resources to support green production will become increasingly abundant. These financial sources often go hand-in-hand with technology suppliers to set up production lines for more environmentally friendly products.

What is the biggest benefit when businesses convert to green and environmentally friendly production?

The green product trend requires businesses to participate if they do not want to be eliminated from the market. According to the Ministry of Industry and Trade, the demand for green products in Vietnam grew at an average rate of 15 per cent per year in 2021-2023. Some 72 per cent of Vietnamese consumers are willing to pay more for green products.

According to a survey by Nielsen Vietnam, almost one-third of consumers are willing to accept a higher price for products that are considered environmentally friendly, with sustainable supply chains, compared to products of the same value but less green.

Vietnam’s advantage is that it possesses abundant natural raw materials, especially those of biological origin. Along with that, Vietnam builds a policy framework and orientation for sustainable national development. This creates a dynamic market with lots of potential for development and conversion to environmentally friendly products.

These factors have opened opportunities for businesses to learn and apply new technology to convert it into environmentally friendly products. Businesses also need to seize the opportunity to become pioneering manufacturers when the market is not yet clearly shaped.

When businesses change their thinking and steadfastly transform it, they will firmly grasp the ticket to depart faster and more smoothly in the new race of green production.

Taking the lead in dual transition for a greener Vietnam On November 12, VIR will host its annual sustainable development conference, with the presence of hundreds of leaders from ministries, international organisations, and domestic and foreign businesses pursuing digital and green transitions in Vietnam.