Climate change compels Vietnamese firms to restructure: Report
Along with its challenges, Vietnamese companies see climate change as an opportunity to speed up restructuring, reorganise production, and create new products and technologies, according to a report from the Vietnam Chamber of Commerce and Industry (VCCI) and the Asian Foundation released on September 16.
The “Adapting to Succeed: Assessing the Impact of Climate Change on Vietnamese Businesses” report revealed that local companies find it necessary to respond to natural disasters and climate change and a large number have adjusted their business plans, upgraded production technologies, and taken out insurance to protect themselves against natural disasters.
They are also now more willing to invest in improving compliance with environmental regulations. In particular, one business is ready to set aside 7.32% of its operational costs to go greener, the report revealed.
Speaking at the launch ceremony, VCCI President Vu Tien Loc noted Vietnam is among ten countries hit hardest by climate change, and severe climate conditions have had a critical impact on local business, as they cause disruptions to transport networks, increase production costs, and create shortages in material supplies, eventually bringing business to a standstill.
The business community must work together towards a greener, cleaner, and more sustainable economy, he said, adding that with their creativity, Vietnamese companies will have an important voice in promoting activities to respond to climate change.
The Vietnamese Government has worked to complete the legal framework to encourage environmental protection and sustainable development in recent years.
The report collected the opinions of 10,400 enterprises across the country. It is billed as the largest business survey on the impact of climate change on Vietnamese companies to date.
