Green direction is long-term necessity

The green transition is rapidly becoming a prerequisite for Vietnamese businesses to maintain exports, remain in global supply chains, and gain access to green finance.

- By Minh Vu

Major markets including the European Union, the United States, South Korea, and Japan are introducing stricter requirements related to carbon border adjustment mechanisms, anti-deforestation regulations, digital product passports and carbon footprints.

Dang Huy Dong, chairman of the Vietnam Green Transformation Association, said at a seminar on the issue last week, “Environmental, social, and governance (ESG) standards and carbon audits are now a green visa for Vietnamese goods to integrate more deeply into global markets.”

Nguyen Doan Thong, from the Vietnam Chamber of Commerce and Industry in Ho Chi Minh City, added, “ESG and net-zero commitments have become tickets to integration that enable businesses to participate more deeply in international supply chains and access green capital.”

In the textile and garment sector, where more than 90 per cent of products are exported to demanding markets such as the EU, the US, and Japan, green transformation has become critical for survival.

However, according to the Vietnam Textile and Apparel Association, many companies still struggle with limited capital, technology and skilled personnel needed to implement meaningful green transition strategies.