Vietnam’s Green Growth Attracts Global Investors
The green growth and sustainable development sectors in Vietnam have experienced a significant influx of foreign direct investment (FDI), accounting for roughly 2% of the nation’s GDP. Both local and foreign businesses have invested approximately $9 billion in areas such as renewable energy, clean energy, and green economy infrastructure, witnessing a growth rate of 10 to 13% in the past two years.
Vietnamese businesses, including those with FDI, have been instrumental in driving green growth by fostering shifts in production, consumption, and business practices. This transition has enabled companies to turn challenges into competitive advantages, further enhancing their operations and investments. The FDI landscape has evolved, with only 5% of FDI companies being high-tech before 2021, 80% being average technology, and 15% being outdated. This was a time when attracting FDI took precedence over environmental protection and job creation.
However, Vietnam has become more discerning in its approach to attracting investment, emphasizing green development and high-tech companies like Lego and Nestlé. The issuance of Resolution 50-NQ/TW by the Politburo has played a critical role in refining mechanisms and policies to improve the quality and efficiency of foreign investment cooperation by 2030.
- For instance, Nestlé has minimized carbon emissions during production and waste processing at its facilities, with 9% of its packaging being recyclable and biodegradable within two years. The company has also worked to reduce plastic waste.
New Policies and Business Strategies to Encourage Green Growth
Despite Vietnam’s success in attracting FDI and fostering political stability, achieving green growth remains a challenging goal. It is crucial to develop practical, targeted incentive policies to support businesses in adopting and implementing sustainable production and business practices. The government must ensure that legal frameworks are conducive to encouraging green practices and that businesses contribute to green growth strategies.
The Vietnam Chamber of Commerce and Industry (VCCI) emphasizes the importance of businesses in implementing green growth strategies and adapting to climate change. It is essential for the business community to reassess its role and create added value in deploying green growth strategies and meeting new demands for sustainable and inclusive development.
Vietnam Sourcing