Fostering the private sector to accelerate green industries

November 23, 2023 | 23:00
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It is crucial that Vietnamese businesses adopt a more proactive stance in response to the global shift towards sustainability. Juhern Kim, the Global Green Growth Institute’s country representative in Vietnam, spoke with VIR’s Angela Nguyen about how Vietnamese companies should pursue sustainable development.

What are your views on the green transition of the private sector in Vietnam?

Fostering the private sector to accelerate green industries
Juhern Kim

Vietnam’s private sector faces a crucial shift in moving towards sustainability, reflecting global trends. The country’s role as a major manufacturing centre and key exporter requires adaptation for continued access to global markets.

Notably, the European Union’s Carbon Border Adjustment Mechanism now taxes imports based on emissions, targeting the steel, fertiliser, aluminium, and cement sectors, pushing Vietnamese exporters to minimise emissions during manufacturing or face potential taxes. This also prompts EU-based businesses to closely monitor emissions in their supply chains.

Amid this change, businesses have an opportunity to strengthen their competitiveness while aligning with Vietnam’s push for net-zero goals in the global drive towards sustainability.

Do you think there is a lack of proper regulations in place to support the green transition in the private sector?

Developed countries and regions like the European Union, US, UK, South Korea, and Japan are leading the way with environmental, social, and corporate governance standards to promote a greener world. But developing countries like Vietnam still face challenges meeting detailed related requirements such as emissions, labour, and environmental monitoring.

The Vietnamese government is actively working on new rules to fill these gaps. Vietnam is going to play a huge role in the global supply chain in the coming decades given its population and economic growth trajectories, so the government is in a strategic position to update their regulatory standards with strong international support to move ahead during this important shift.

How do you think the private sector can support Vietnam’s green transition?

It is crucial for Vietnamese businesses to adapt to the global shift towards sustainability more proactively. It’s not just about making businesses more environmentally friendly – there’s huge potential in fostering innovative startups and small- and medium-sized enterprises that drive the growth of green industries. This can happen via climate-related technology transfer through joint ventures and strategic partnerships.

With its stable political climate, young and dynamic population, and thriving investment scene, Vietnam is attracting significant attention from global investors and is poised to remain in the spotlight. Boosting green and climate-focused startups in Vietnam can bring both economic and environmental benefits, aiding the country’s journey towards a net-zero transition.

The Global Green Growth Institute is a treaty-based international, inter-governmental organisation dedicated to supporting and promoting strong, inclusive, and sustainable economic growth in developing countries and emerging economies. Headquartered in Seoul of South Korea, it currently has a network of 48 member countries worldwide.

In Vietnam, it has been providing technical assistance to the government by originating catalytic climate projects, mobilising investments, and supporting the implementation of them with diverse stakeholders to accelerate Vietnam’s commitment towards net-zero by 2050.

Fostering ties with private sector in green growth Fostering ties with private sector in green growth

The technical session of the Vietnam Business Forum (VBF) took place on March 17 with a theme of partnership between the private sector and the government to foster green growth.

By Angela Nguyen

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