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BUSINESS REPORT
C O VER S T OR Y

The journey to green Communications and Sustainability, at
Coca-Cola Beverages Vietnam, told VET.
Agreeing, Mr. Thammasak Sethaudom,
and sustainable President and CEO of Thai conglomerate
SCG, said that since its commitment at
COP26, the Vietnamese Government has
been steadfast in its pursuit of achieving
Embracing global trends amid Vietnam’s efforts to achieve its net-zero net-zero emissions by 2050, thereby cre-
emissions target by 2050, the focus of the upcoming Vietnam Connect ating a sustainable economy.
Forum 2024 is on the country’s economic transition. “This commitment is demonstrated
through its promotion of collaborative
By VIET AN efforts between the public and private sec-
tors and its endorsement of the National
Action Plan for Circular Economy (NAPCE)
n assessment by the European since October 1, 2023, while the EU Defor- framework,” he said. “Building on this
Commission found that the global estation Regulation (EUDR) is slated to momentum at COP28, the government
A market for green products and become effective from January 1, 2025. has reaffirmed its dedication by actively
services is estimated to currently exceed Additionally, global initiatives on plastic embracing and implementing initiatives
$5 trillion and is growing at a faster rate footprints and plastic borders continue. aligned with the Global Cooling Pledge.”
than traditional products and services. Consequently, compliance with global Indeed, regulations within the Law
By 2030, it is forecast that the green econ- supply chain standards for exported goods on Environmental Protection, issued in
omy will have created approximately 24 is now a mandatory requirement. 2020 and effective from January 1, 2022,
million new jobs globally. “In Vietnam, there is a concerted effort are being vigorously implemented. Under
The green economy also presents major to accelerate the transition of the economy Decision No. 01/2022/QD-TTg from the
opportunities to attract investors in various towards green and sustainable practices, Prime Minister, a list of sectors and facil-
new sectors, such as renewable energy, reflecting a key policy focus of the Party, ities are required to conduct greenhouse
smart transportation, smart agriculture, State, and government,” Mr. Bui Khanh gas inventories.
green urbanization, green buildings, and Nguyen, Vice President of Public Affairs, Starting from 2023, these enterprises
green finance. have been required to voluntarily conduct
Determined not to be left behind in inventories of their greenhouse gas emis-
this increasingly important development sions. By 2025, a greenhouse gas inventory
trend, Vietnam is undergoing a strong will be mandatory for enterprises.
transformation from a “brown economy” Within this law, provisions regarding
to a “green economy”, with a focus on the Extended Producer Responsibility (EPR)
circular transition, energy transition, low are further specified, aligning with inter-
carbon emissions, ensuring green growth, national practices. These represent key
and the successful implementation of its policy instruments embodying the Party
commitment to net-zero emissions by and State’s orientation towards green eco-
2050 and sustainable development. This nomic development, the circular economy,
is seen as a Green Revolution / Industrial “Vietnam is well-positioned to and low carbon emissions in Vietnam.
Revolution and has become an inexorable lead the green economic transition Though acknowledging Vietnam’s
trend in global development. efforts and achievements in its green
in Southeast Asia. With a thriving transformation process, FDI businesses
Going green market, strong government have still identified certain areas that
On a national level, Vietnam’s Green support, abundant renewable need improvement for the country’s sus-
Growth Strategy reflects its determination tainable economic development.
and aspiration to develop into a powerful and energy resources, and a tech- According to Mr. Lim Dyi Chang, Country
prosperous country in a sustainable manner. savvy workforce, Vietnam has the Head of Commercial Banking at UOB Viet-
The concept of a green economy has key ingredients for success.” nam, the country’s sustainable development
been and is being cemented in high- currently faces three main challenges.
level regulatory standards and contained Mr. Lim Dyi Chang “The first is the high cost of green
in international trade commitments. Country Head of Commercial Banking transformation,” he explained. “The UOB
The Carbon Border Adjustment Mech- at UOB Vietnam Business Outlook 2024 indicates that 34
anism (CBAM) has been operational per cent of Vietnamese manufacturers

6 Vietnam Economic Times April 2024 en.vneconomy.vn