Robust green aims will unlock new potential

In agriculture, the sector has undergone positive restructuring. Advanced production and preservation processes that enhance efficiency, reduce post-harvest losses, and adapt to climate change are increasingly recognised and applied. Meanwhile, the industrial sector has embraced modernisation, prioritising science and technology to improve efficiency and restructure resource- and energy-intensive industries.

Le Viet Anh, director general Department for Science, Education, Natural Resources, and Environment Ministry of Planning and Investment

Renewable energy now accounts for a higher proportion of Vietnam’s power system compared to many countries. The shift to clean energy vehicles is progressing, particularly in public transport in major cities. Similarly, green and sustainable tourism is emerging as a cornerstone of the tourism industry, with innovative models and products driving its development.

New economic models, such as the circular and sharing economies, are being promoted and piloted in various enterprises. Circular economic principles, particularly in industrial symbiosis and ecological industry models, are showing promising results. Programmes supporting sustainable businesses, assessing enterprise sustainability, and advancing environmental, social, and governance initiatives have garnered widespread support from the business community.

While digital transformation in Vietnam trails green transformation, it has become a central development trend globally. Digital technologies optimise production and business processes, reduce costs, and enhance competitiveness through automation, data analysis, and efficient information management.

Vietnam has set ambitious digital transformation goals, aiming to build a fully digital government by 2030, with the digital economy contributing 30 per cent of GDP. Vietnam also aspires to rank among the top 50 countries globally and third in ASEAN for e-government and digital economy performance. These goals are critical for achieving modern industrialisation and realising sustainable development objectives by 2030.

Digital transformation has already spurred significant changes in both state and private sector operations. According to the Ministry of Information and Communications, the digital economy accounted for 12 per cent of GDP in 2020, rising to 16.5 per cent in 2023, with an annual growth rate exceeding 20 per cent.

Despite their importance, green and digital transformations in Vietnam often proceed independently, missing opportunities for synergy. The World Bank’s 2023 report on dual transformation highlights the intersection between digital and green technologies. It identified 16 green and 11 digital technologies as foundational for this dual transformation.

Between 2017 and 2021, Vietnam accounted for 15 per cent of green patents in emerging markets, focusing on wind energy, waste management, pollution reduction, and green buildings. However, Vietnam lags in digital transformation technologies, holding just 8 per cent of patents in developing economies, behind Malaysia (58 per cent), the Philippines (16 per cent), and Thailand (11 per cent).

The integration of digital and green transformations is vital for sustainable growth. Businesses must seize dual transformation opportunities to boost productivity, unlock new market potential, and deliver societal and environmental benefits. Green and digital transformations rely on science, technology, and high-quality human resources. Investment in these areas is essential for success.

The transformation process must also ensure equity, particularly for vulnerable groups such as the poor, ethnic minorities, women, children, and the elderly. The state should create an enabling institutional and policy framework, while businesses, especially large enterprises, take the lead in implementing solutions.

International cooperation and knowledge-sharing are crucial. Large corporations and foreign-invested enterprises should support small- and medium-sized enterprises in adopting dual transformation initiatives. By prioritising these efforts, Vietnam can harness the full potential of green and digital transformations to drive sustainable development and enhance global competitiveness.

Green transformation and a journey to the future In Vietnam, the green consumption trend is making significant strides as consumers increasingly prioritise sustainability as a core aspect of their future outlook. This shift is not merely reflected in their purchasing behaviour, but also in their long-term priorities and overarching concerns regarding the living environment.

Dual transition can motivate businesses Investing in green transformation will be a crucial tool for Vietnam to secure substantial advantages in global trade, Prof. Nguyen Dinh Tho, general director of the Institute of Strategy and Policy on Natural Resources and Environment, under the Ministry of Natural Resources and Environment, explained more to VIR’s Hoang Minh.

Dual transition to help firms of all sizes The green and digital dual transition is bringing transformative changes to Vietnam’s business community, but significant challenges in financial resources and policy frameworks need to be addressed for greater acceleration.