Government strategy to utilise SMEs power to achieve green growth

The National Strategy on Green Growth (NSGG), in association with the National Action Plan on Green Growth (NAPGG) recognises the strong commitment of the Government of Vietnam to develop a green economy where sustainable consumption and production (SCP) play a crucial role and act as the key impetus for the country’s green growth and transformation.

Small and medium sized enterprises (SMEs), a significant business layer in the country’s economic structure, could be the so-called “changing agent” for SCP by directly contributing to sustainability targets specified in the 10-year Action Plan for SCP. Eco-innovation can thus support the successful implementation of SCP.

In a bid to evaluate the existing policy framework and identify relevant SCP policies and strategies at national and local levels that are conducive to promoting SCP at the SMEs level, AIT Vietnam, in conjunction with the United Nations Environment Program (UNEP), has carried out a recent survey of key national and local policy makers and stakeholders, such as national, local and international bodies, including ministries, institutions and consultancies, as well as non-governmental organisations and donors. The survey has also identified the barriers that SMEs will likely face.

The survey was in fact focused on policy gaps, SMEs’ gaps and external barriers for eco-innovation in Vietnam.

According to AIT-VN’s findings, the greatest policy gaps are the lack of implementation for sustainable consumption and production, the unclear policy development, and the limited governmental support for SPC.

Significant barriers for SMEs and eco-innovation are identified as weak market orientation, lack of innovation capacity, and lack of eco-innovation awareness.

The current challenges that SMEs are facing when implementing eco-innovations are the lacklustre/lacking stakeholder collaboration, the communication in relation to the benefits of SCP/eco-innovations, and the low market acceptance of green products.

The UNEP Project on Sustainable Consumption and Production into eco-innovation will facilitate the NAPGG and support SMEs in their eco-innovative implementation for sustainable and competitive performance.