February 6, 2025
The Green Innovation Summit at InnoEx 2024 brought together over 20 experts to discuss the challenges and solutions for Vietnamese businesses to balance profit goals and sustainable development.
Sustainable development is no longer just a game for large corporations, but has become a common goal for even emerging startups. ESG standards are increasingly important, not only as an “added value” but also as a prerequisite for participating in the global supply chain.
Green or be eliminated?
Ms. Pham Thi Ngoc Thuy, Private Sector Development Expert, Director of Board IV Office, cited European bills such as the Carbon Border Adjustment Mechanism (CBAM). CBAM is changing rapidly, applying to businesses in Vietnam on emission control. The first affected group is industries such as steel, cement, and aluminum. Currently, many large enterprises in Vietnam are “struggling” to find ways to respond. In other areas such as wood, coffee … Vietnamese businesses are also “sleepless” because of worries about European regulations against deforestation.
The US Clean Competition Bill is expected to affect more than 10 export industries of Vietnam to this market. Not only the US, countries like Japan, Korea, Canada and the UK are also building bills on green transformation, putting pressure on Vietnamese suppliers to change in order not to be eliminated from the game.
A more worrying reality is that green capital is “stopping at the border” of Vietnam. This occurs because the level of readiness of Vietnam is still low, although we have many opportunities. According to a survey on the readiness of Vietnamese enterprises in reducing emissions and green transformation, 64% of Vietnamese companies have not made any preparations.
Representing the voice from businesses, Ms. Tran Phuong Ngoc Thao – Vice Chairman of the Board & Head of ESG Committee, Phu Nhuan Jewelry Company, emphasized that green transformation and digital transformation are now integrated into a “dual transformation”. This is also a “difficult transformation”, because to implement green transformation requires a strong spirit of innovation.
Myriad challenges in the journey of “breaking the shell”
Mr. Nguyen Bao Trung, General Director of AP Saigon Petro, shared about his company’s greening journey that commenced five years ago, through the application of technology to reduce 95% of paperwork, to waste management and the utilization of green energy. He stressed: “Green must be integrated into all activities.” The proof is the newly launched 3R automatic oil change machine, which helps reduce costs, plastic waste, and properly collects used oil, addressing the issue of 100 million liters of used oil released into the environment annually.
Another representative from the technology sector, Mr. Richard Liu, Marketing and Partner Ecosystem Development Director of Huawei, also underscored the significance of green transformation through concrete actions. He stated that in its operations, Huawei consistently adheres to the principles of energy conservation, applying advanced technology and digitizing processes. Furthermore, Huawei’s objective is to create products that are not only environmentally friendly but also encourage users to participate in the green transformation process, transcending the company’s boundaries.
Practical experience to “overcome obstacles,” focusing internal resources towards green qualify
Despite being challenging yet urgent, Vietnamese businesses need to find shortcuts for green transformation, minimizing risks. Ms. Pham Thi Ngoc Thuy suggested starting by updating information, raising awareness, and even accepting to sacrifice a portion of short-term profits to launch green initiatives. This enables Vietnamese businesses to seize the first-mover advantage, an opportunity that will gradually diminish over time.
Concluding the discussion, Mr. Tran Duy Thanh from Samsung offered inspiration: “Despite the difficulties, let’s just start taking action, because when the market becomes greener, everything will become easier.”
About Green Innovation Summit
The Green Innovation Summit at InnoEx is a crucial event fostering sustainable development and green solutions within the business community, particularly in Vietnam and Southeast Asia. Serving as a platform for experts, businesses, investors, and policymakers, the Summit facilitates discussions on pressing environmental challenges and explores innovative approaches to a greener future. Its overarching goal is to raise awareness of green innovation’s importance, inspire action, and accelerate the transition to a sustainable economy by empowering businesses and individuals with the knowledge, tools, and connections needed to contribute.
