VIR talkshow on the green-digital dual transition

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.

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.

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.