Digital transformation is also a key factor in promoting green transformation. Photo: TL

Waiting for support policy

According to Mr. Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies (HIDS), Vietnam is on the path to transforming into a digital economy, a green economy, and a circular economy after a long period of developing a "brown and linear economy", which is based on natural resources and cheap labor. The Government has been making efforts to institutionalize the viewpoints and sustainable development goals set by the Party and the State, aiming to "promote innovation, digital transformation and develop new products, services, and economic models", with a series of strategies, projects, and plans on digital transformation, green growth, and circular economic development... Accordingly, localities and enterprises are very excited, but also waiting for more specific support policies to operate new business models to turn opportunities and potentials into reality.

According to Mr. Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies (HIDS), Vietnam is on the path to transforming into a digital economy, a green economy, and a circular economy after a long period of developing a "brown and linear economy", which is based on natural resources and cheap labor. The Government has been making efforts to institutionalize the viewpoints and sustainable development goals set by the Party and the State, aiming to "promote innovation, digital transformation and develop new products, services, and economic models", with a series of strategies, projects, and plans on digital transformation, green growth, and circular economic development... Accordingly, localities and enterprises are very excited, but also waiting for more specific support policies to operate new business models to turn opportunities and potentials into reality.

Speaking more clearly about this issue, Associate Professor Dr. Bui Quang Tuan, former Director of the Vietnam Economic Institute, said that there should be policies to encourage businesses to go green in the direction that if businesses reduce emissions or switch to green products, they will receive tax support. “Financial instruments must always go hand in hand with the requirement for businesses to go green and reduce emissions because of converting production models and investing in science and technology is very costly. Therefore, in addition to calling on businesses to change their thinking and awareness, there needs to be support in terms of human resources, technology, information, products, markets, etc.”, said Mr. Tuan.

Regarding supporting green transformation of enterprises, since 2006, Saigon Giai Phong Newspaper has launched the Green Enterprise Award. In 2023, this award was upgraded by the Ho Chi Minh City People's Committee to a city-level award with many special support policies for winning enterprises. Specifically, enterprises will be supported in developing their brands, widely promoting to the community; at the same time, participating in the ecosystem to stimulate green consumption directly for the enterprise's products. In particular, regarding capital issues, the Ho Chi Minh City People's Committee has assigned the Ho Chi Minh City State Financial Investment Company (HFIC) to implement a loan interest rate support program for enterprises with a support level of up to 50-100% of interest rates.

What should businesses pay attention to?

Faced with the strong trend of digital transformation and green transformation, where to start and how to start is a concern of most businesses, especially small and medium enterprises.

Responding to this concern of enterprises, Mr. Nguyen Ngoc Hoang, Director of Digital Lighthouse, KPMG Vietnam, said that each enterprise should have a digital transformation program with its own identity. Because digital transformation is not a separate story but must support the business strategy, vision and business philosophy of the enterprise. Therefore, enterprises first need to review the factors of value, culture and vision of the enterprise.

According to Mr. Nguyen Ngoc Hoang, despite certain limitations in resources, small and medium-sized enterprises have flexibility and the ability to adapt quickly, so when transforming digitally, they will have the opportunity to create value the fastest. Accordingly, enterprises should build a roadmap, prioritizing issues that can bring immediate value to create a reinvestment capital flow for the enterprise. Mr. Nguyen Ngoc Hoang also suggested a shift from asset investment solutions to leasing solutions. Specifically, digital transformation activities will be approached in the form of services and paid monthly or quarterly instead of having to invest a huge amount of money in assets. This will be very suitable for small and medium-sized enterprises with limited resources.

Mr. Nguyen Ngoc Hoang also added that digital transformation is an important factor in green transformation. When transforming digitally, each business activity leaves a "digital footprint". This will help businesses clearly identify the "green" level of each stage to have appropriate adjustment solutions.

From a legal perspective, lawyer Nguyen Trung Nam, Senior Partner of Dentons Luat Viet Law Firm, Arbitrator of the VIAC International Arbitration Center, noted to businesses that in the future, there will be many new regulations tightening environmental issues. According to lawyer Nguyen Trung Nam, in the context of the incomplete legal system on digital transformation and green transformation, businesses need to pay special attention to monitoring and updating legal regulations carefully and regularly. In fact, since Vietnam made a commitment to neutralizing emissions at COP26 in 2021, every year there have been dozens of new regulations and information related to guidance programs and mandatory legal regulations. "Regulations are issued a lot and very quickly, so businesses need a legal department to promptly grasp and implement them" - lawyer Nguyen Trung Nam recommended.