VIR talkshow on the green-digital dual transition

May 22, 2024 | 10:30

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At the VIR talkshow “Enticing FDI for Dual Transformation,” speakers discussed the factors needed to create a stable and effective FDI environment.

Vietnam is entering an era which focuses on both green growth and digital transformation. This dual transition is considered one of the key driving forces for Vietnam’s economy to grow sustainably and meet its long-term development goals.

VIR talkshow on the green-digital dual transition

With that in mind, the role of the business community, especially foreign-invested enterprises, is crucial to ensuring these goals are reached. In the past month alone, several major foreign-led groups have kicked off massive ventures. Pandora from Denmark is making a foray into manufacturing in Vietnam with a new production factory in Binh Duong province, with investment of around $150 million.

Meanwhile, SK Group from South Korea has begun work on a biodegradable materials plant in Haiphong with a price tag of close to $100 million, with investment expected to reach over $460 million by the end of the decade.

Both of these latest examples, together with others bigger cases like the $1 billion Lego complex, are special in that they are aligning with Vietnam’s green and digital goals. The Pandora production facility is set to operate with the highest eco-friendly standards across its value chain, and rely on 100 per cent renewable energy sources, illustrating the company’s dedication to green transformation and carbon neutrality. The SK project, meanwhile, will engage in manufacturing secondary battery materials, semiconductor materials, and other eco-friendly materials.

The Vietnamese government is also taking action to pull in more foreign investment by crafting new supporting policies to enable more sustainable development.

At the talkshow hosted by VIR themed "Enticing FDI for Dual Transformation", speakers emphasised that foreign investors prioritise profitability, stability, predictability, clarity, and transparency in policies and regulatory frameworks. Ensuring these attributes is crucial for building trust and confidence among investors.

In addition, human resource upskilling and a stable legal framework are among the most critical factors for attracting and retaining foreign investment.

The talkshow was attended by:

Do Van Su, deputy director general of the Foreign Investment Agency under the Ministry of Planning and Investment — the designated administrative agency that promotes and manages foreign investment in Vietnam.

Pulkit Abrol, regional director for Asia-Pacific at the Association of Chartered Certified Accountants (ACCA), which supports professional accountants and research on the impact of tech developments on finance professionals, and their vital role in sustainability. With over 20 years of experience in marketing, sales, and business development, he has successfully executed brand and strategy narratives across sectors from consumer goods, retail, and design to advertising, telecoms, finance, and education.

Chiew Chun Wee, regional lead for Policy and Insights in Asia-Pacific at ACCA. In his work, he supports ACCA’s professional insights and policy work across the region, and drives new research initiatives that provide evidence-based policies that impact the business community.

Dao Thu Trang, management board member and deputy general director of the Delegation of German Industry and Commerce in Vietnam. She leads a vital division that focuses on providing comprehensive services to German companies in Vietnam, enhancing their market presence through specialized offerings.

Rizwan Khan, managing partner at Acclime Vietnam. He has over 25 years of experience in diversified industries and has worked with international companies in Vietnam for over 16 years in corporate services, education, and manufacturing. Mr. Khan is also joining us online.

Dr. Santiago Velasquez, associate program manager for the Master of Business Administration program at RMIT University Vietnam. He lectures on "Design Thinking for Business”, among other courses. He also serves as advisor for multinational companies in projects related to digital solutions and supply chain analyses in the forestry sector.

Driving dual transformation

Vietnam's Ministry of Planning and Investment and the German International Cooperation Agency (GIZ) have released a report titled “Business digital transformation 2023: Digital Transformation, Green Transformation”.

Businesses take heed of the dual transition

Combining digital transformation with the green transition has become a more urgent requirement for enterprises to ensure business goals as well as social responsibility.

FDI focus for twin transition intensifies

Vietnam is prioritising investment attraction from overseas for its dual green-digital transition, in order to fuel its socioeconomic development and reach medium- and long-term goals.

By Linh Le

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