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Sunday, June 16, 2024

Green economy – An inevitable path for the development of businesses

By T.S - M.Anh

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HCMC – Vietnam is committed to achieving sustainable economic growth while protecting the environment. One of the key solutions to realizing this goal is to actively promote green growth across various sectors. While this poses challenges for local businesses, it also brings numerous opportunities as the world and Vietnam transition towards a green economy.

After enduring three years of severe impact from the Covid-19 pandemic, Vietnam’s economy now faces challenges stemming from the global economic downturn and unpredictable climate change. According to the World Bank, Vietnam’s GDP is projected to be eroded 3.5% by 2050 due to climate change.

To overcome these challenges, Vietnam must pursue the objective of achieving rapid and sustainable economic growth while actively promoting green growth across various sectors. The country’s commitments at the 2021 United Nations Climate Change Conference (COP26) in Glasgow to achieve net-zero emissions by 2050 represent a significant milestone towards building a green and sustainable economy.

Embracing the net-zero roadmap will bring potential challenges, but it will also create business opportunities, particularly for enterprises that can seize the trends of green transition in the global and local economy.

In practice, many local businesses have already embarked on renovating and shifting their business models towards sustainability and environmental friendliness. For instance, the cultivation and exportation of organic agricultural products have gained prominence. These organic products are expected to align with global consumer trends due to their positive effects on human health, the environment, and ecosystems.

Statistics show that in 2021, Vietnam had approximately 174,000 hectares of organic farmland, ranking 9th among the top ten countries in Asia with the largest area of organic agricultural production. The country successfully exported organic agricultural products to 180 countries worldwide, with annual export revenue reaching US$335 million, a remarkable increase of nearly 15 times compared to 2010.

Despite these achievements, Vietnamese organic agro-products still hold a modest share in the global market. Moreover, investing in green growth requires substantial financial resources. Joint research conducted by the World Bank and the Ministry of Planning and Investment estimates that Vietnam may need around US$30 billion to implement green growth strategies by 2030.

However, the state budget can only cover a maximum of 30% of this financial requirement, necessitating the need to raise the remaining funds from other sources, primarily the private sector.

In addition, environmental and climate-related barriers in international trade have been increasingly adopted by many countries worldwide. Exporters run the risk of missing out on opportunities to increase export revenue if their transition to green growth is delayed. For instance, the European Union (EU) has imposed carbon tariffs on exports, which are based on the greenhouse gas emissions from production activities in the exporting country. Exporters are obligated to report these emissions, and if they exceed the EU’s standards, they must purchase carbon credits at EU-regulated prices. Such regulations pose significant barriers for Vietnamese exports entering demanding markets.

To address these issues and foster a sustainable future, the Saigon Times Group will organize the 2023 Green Economy Forum titled “Net Zero – Pathway toward Sustainability” on August 18. The forum aims to provide businesses with a comprehensive understanding of the trend. Experts, management professionals, scientists, and businessmen will engage in discussions regarding the challenges and opportunities of embarking on the Net Zero roadmap and the journey towards a green economy while navigating economic downturns and achieving stable development.

The event will also explore solutions to capital challenges, investment costs, revenue generation, and profits during the green transition. Participants will gain insights into effectively seizing global and local green transition opportunities to meet consumer demand.

For more information about the 2023 Green Economy Forum, please visit the website at kinhtexanh.thesaigontimes.vn or contact Ms Anh Dao via email: online@kinhtesaigon.vn or mobile phone: 0969.372.309.

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