This shift aims at aligning with global trends and fulfilling the growing demand for eco-friendly products in international markets, especially in Europe, the U.S., and Japan. The journey toward carbon neutrality has become not only a strategic necessity but also a competitive advantage for companies that wish to thrive in the new green economy.
A Mandatory Path for Businesses
Mr. Pham Van Viet, CEO of Viet Thang Jean and founder of the V-Sixtyfour brand, notes that five years ago, greening the business was merely seen as a trend. Today, it has evolved into a non-negotiable requirement for the textile industry. Companies that fail to adapt will find it increasingly difficult to secure orders from international buyers.
Before the COVID-19 pandemic, green transformation was not a major pressure point for businesses, and costs were less of a concern. However, the post-pandemic environment has reshaped the competitive landscape. The industry now faces a severe shortage of orders, intense rivalry between suppliers, and a clear mandate: greening is no longer optional. It has become the entry ticket to participate in international trade, especially with environmentally conscious markets like the EU, the U.S., and Japan.
According to Mr. Viet, green certification is now the decisive factor in winning contracts. Meanwhile, from an industry perspective, Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, highlights that buyers in major global markets are shifting their procurement policies to prioritize green products. This transformation poses significant challenges, particularly for small and medium-sized enterprises (SMEs), who often lack the resources for large-scale, long-term investments. Securing financing for green projects is a tough hurdle, especially with loan periods extending up to 20 years.
Nonetheless, despite the challenges, many businesses have started to implement changes in a phased manner. A number of firms are transitioning from fossil fuel-based energy sources, like coal, to renewable energy, including wind and solar power, or adopting biomass fuel for boilers. Vietnam, with its rich agricultural waste, urban garbage, and livestock residue, also has considerable potential for developing biomass energy.
A Call to Action
In fact, the push for eco-friendly standards from international buyers is not a new phenomenon. Mr. Phan Minh Thong, Chairman of Phuc Sinh Group, recalls that more than a decade ago, his company was already confronting stringent sustainability demands. In 2009, a Dutch partner required Phuc Sinh’s pepper products to obtain Rainforest Alliance (RA) certification, a standard for sustainable agriculture. Back then, the requirement was non-negotiable, leaving Phuc Sinh with no choice but to comply. This marked the beginning of the company’s long-term commitment to sustainability and later its full adoption of ESG (Environmental, Social, and Governance) practices.
For companies like VISSAN, a leading Vietnamese food producer, achieving net-zero emissions is not just a goal; it’s a carefully charted roadmap with specific action plans aimed at reducing greenhouse gas emissions throughout its production chain. One of VISSAN's critical steps involves accurately measuring and assessing its carbon footprint using advanced technological tools. By identifying its emissions, the company can strategically target reduction areas and make informed decisions about its production processes.
However, VISSAN faces substantial challenges in achieving these ambitious goals. One of the largest hurdles is the high upfront cost associated with adopting new technologies and environmental management systems. These investments require unwavering commitment from both the company's leadership and its investors. Despite the financial challenges, VISSAN is determined to remain on course in the race towards carbon neutrality.
Similarly, Ca Mau Fertilizer Company is forging ahead with its own green strategy. The company has set a goal to reduce emissions by 7% by 2030, equivalent to cutting 60,000 tons of CO2 annually. The company’s 2023 Sustainable Development Report reaffirms its dedication to accompanying Vietnam on its path to carbon neutrality.
Across various industries, the momentum towards greening business operations is stronger than ever. The pharmaceutical sector, for example, has also embraced green practices. Imexpharm, a leading pharmaceutical company in Vietnam, has prioritized greening its entire supply chain, from production to distribution. Its adherence to EU-GMP (Good Manufacturing Practices) standards not only ensures product quality but also demonstrates its commitment to environmental protection. These efforts contribute not only to the health of consumers but also to the company’s ability to address the growing environmental challenges and emerging health threats.
In the agricultural sector, green production models are increasingly viewed as key to sustainability. Mr. Vu Manh Hung, Chairman of the Hùng Nhơn Group, a prominent agricultural corporation, emphasizes that adopting green farming methods ensures stability in livestock farming and the quality of end products. It also benefits all participants in the agricultural value chain, from producers to consumers, by providing clear product traceability and superior quality.
Mr. Hung points out that globally, leading corporations are gravitating toward the concept of the “teal organization”—companies that excel in both business and green, sustainable development. This model aligns with the global trend of balancing economic growth with environmental stewardship.
Green is Everyone’s Responsibility
When discussing green transformation, many people initially think of sectors like manufacturing and export. However, as Ms. Tran Thi Thuy Ngoc, Deputy General Director of Deloitte Vietnam, notes, no one is exempt from this shift. In today’s rapidly evolving economy, businesses must focus on sustainability and environmental protection. ESG principles are gaining traction not only in production industries but also in financial services, where companies are exploring unique perspectives and approaches to green transformation.
In the tourism sector, green practices are also becoming increasingly important. Ms. Doan Thi Thanh Tra, Marketing Director of Saigontourist, highlights that sustainability has been a core philosophy since the company began serving international visitors in the 1970s. The company’s motto—“Take nothing but photographs, leave nothing but footprints”—has been deeply embedded in its tour offerings, long before sustainability became a mainstream concern.
Since the 2000s, Saigontourist has continued to invest in green tourism products across its various business segments. This strategy not only meets global demand but also satisfies the growing expectations of domestic and international tourists. As travelers become more conscious of their environmental impact, they increasingly seek out tours and services that are responsible and sustainable. The demand for green tourism goes beyond just professional service; tourists now expect their travel experiences to contribute positively to local communities and ecosystems.
As businesses around the world shift towards more sustainable practices, Vietnamese companies are embracing this change with a sense of urgency. From textiles to agriculture, pharmaceuticals to tourism, and even financial services, no sector is untouched by the green revolution. While the journey toward net-zero emissions is fraught with challenges—especially the significant financial investment required—Vietnamese businesses are demonstrating a strong commitment to building a greener, more sustainable future. This is not just an economic necessity; it is a moral imperative. The path towards green development is not one that can be delayed or sidestepped. It is a journey that all businesses must take, ensuring that they remain competitive, relevant, and responsible in a rapidly changing world.
