Currently, Vietnamese enterprises are facing significant pressure from international regulations such as the EU’s CBAM or environmental–social–governance (ESG) standards. This requires strong government support through enabling policies to ensure that the green transition takes place quickly and effectively, turning challenges into opportunities, promoting the green economy, and driving sustainable growth.

Dual benefits of the green transition

The green transition is the process of shifting the economy toward environmental sustainability, reducing greenhouse gas emissions, and using resources efficiently. It delivers multidimensional and long-term benefits to enterprises by enhancing competitiveness in the global market.

According to the Viet Nam Chamber of Commerce and Industry (VCCI), adopting green transition practices generates dual impacts as businesses can reduce carbon emissions by 15–25% through investments in renewable energy, and save 20–30% in annual energy costs. At the same time, it creates opportunities to access broader international markets, strengthen brand value, and increase export potential as “green” products are prioritised in free trade agreements such as CPTPP and EVFTA.

Despite the clear benefits, the green transition in Viet Nam still faces many challenges, discouraging many enterprises. Among them, high initial investment costs are the greatest barrier for small and medium-sized enterprises. Installing renewable energy systems or waste treatment technologies can cost millions of USD, while short-term returns remain uncertain.

A shortage of high-quality human resources and modern technological equipment is also a major obstacle to the “greenisation” of businesses.

A recent VCCI survey shows that only around 30% of enterprises have staff knowledgeable about ESG, leading to “greenwashing” or delays in meeting green compliance requirements. In addition, the legal framework has not yet aligned with international standards, causing overlapping procedures and legal risks, which makes businesses hesitant to invest.

To reaffirm the commitment to green development and support enterprises in their transition, the Party and the Government have issued various key policy directions, including the National Strategy on Green Growth for 2021–2030 (vision to 2050), the National Action Plan on Green Growth for 2021–2030, and the Circular Economy Development Project.

However, according to Dau Anh Tuan, Deputy Secretary General of VCCI, administrative burdens, informal costs, and inconsistencies in policy implementation continue to weigh on enterprises during their green transition. Small and medium-sized enterprises face particular difficulty accessing green finance and technical consulting.

Therefore, the Government needs concrete and stronger actions to resolve institutional bottlenecks, improve policy implementation, enhance green competitiveness, and attract high-value investment. Administrative reform should continue to be accelerated, especially in key sectors such as investment, land, environment, and construction.

Promoting investment and development of green enterprises, and building an effective green financial ecosystem, are essential to accelerating Viet Nam’s green transition.

Need for strong support from Government

According to Dr Nguyen Duc Kiem, former Head of the Prime Minister’s Economic Advisory Group, due to limited human resources, especially among small and medium-sized enterprises, Viet Nam has not yet been able to develop a complete set of criteria defining what constitutes a green economy.

Therefore, businesses must proactively adapt, implement green and digital transformation in production and operations; invest in new technologies to reduce energy consumption; comply with sustainability commitments; and prioritise environmental and social indicators in their products. Companies should also work through industry associations to actively contribute opinions and propose recommendations, helping authorities address challenges in the transition process and improve the legal framework in line with practical business conditions.

To accelerate green transformation in enterprises, VCCI President Ho Sy Hung stressed the need for close coordination between the Government and the business sector, with concrete and feasible solutions to remove obstacles in the digital era.

Businesses need a stable, transparent, predictable, and consistently enforced legal framework across different periods and localities, in accordance with the spirit of Politburo’s Resolution No.66-NQ/TW (April 30, 2025) on law-making and enforcement.

Additionally, breakthroughs in energy mechanisms are essential, along with solutions to remove financial feasibility barriers for large-scale power projects such as LNG and offshore wind. Viet Nam must also urgently address the severe shortage of high-quality human resources with digital skills, as highlighted in Resolution No.71-NQ/TW (August 22, 2025) on transformative development in education and training.

Green growth and sustainable development are not easy paths, but they will yield valuable “fruits” worthy of enterprises’ efforts. Viet Nam’s advantageous position offers a major opportunity to accelerate, seize early advantages, and advance across multiple dimensions.

In this journey, enterprises are identified as the central drivers, both beneficiaries and pioneering actors in achieving rapid and sustainable development, with strong government backing. Instead of waiting for support, businesses must take the initiative, turning challenges into competitive advantages and asserting their leadership in a low-carbon economy.

First, enterprises need to develop comprehensive green strategies and integrate ESG across the entire value chain, from input materials to final products, to accurately identify emission points and prioritize reductions. Continued investment in technology and innovation is essential, such as rooftop solar systems, closed-loop water treatment, or AI-powered energy consumption forecasting.

Additionally, businesses should focus on improving workforce quality and building a green corporate culture through regular ESG and international standards training; and proactively participate in carbon markets and global green supply chains.

These efforts not only help Vietnamese enterprises avoid exclusion from supply chains but also create new revenue streams through carbon credit trading, contributing to the nation’s sustainable development goals.