According to a recent survey by the Private Economic Development Research Board (Board IV), 64% of SMEs have not taken any green transition actions, while only 5.5% have reduced emissions in some activities, and 3.8% have monitored and disclosed emission reduction results. These figures show that most businesses are still in the preparation phase and have yet to move into planning or implementing specific green solutions.

The main reason hindering green transition is a lack of investment capital, identified by 50% of businesses. This is followed by a lack of suitable technical personnel (46%) and a shortage of green technology solutions (42%). In addition, many SMEs struggle to access information, technical documentation, and requirements from banks, making it difficult for them to meet the criteria for green credit access.

“For businesses with limited capabilities, transitioning from their current state to a digital state requires certain resources. When we undertake digital transformation, resources will come, but policymakers believe there should be support policies to drive this process, providing further motivation for businesses to change. This perspective is complementary, not contradictory,” says Phan Duc Hieu, a member of the National Assembly’s Economic and Financial Committee.

Meanwhile, Nguyen Truong Giang, director of the Institute for Digital Transformation and Strategy, points out the green transition is the next phase of digital transformation. It is a revolution in organisational structures aimed at sustainable development, where data is capitalised and becomes a growth driver.

“With the green transition, we create new ways to absorb capital. This transformation allows us to attract investment for growth, rather than mobilising capital for the green transition itself. There’s abundant green finance available, but we fail to absorb it because we misunderstand the process that is seeking capital first instead of transitioning first to meet the standards,” explains Giang.

The Institute for Policy and Strategy Research notes that the lack of standard criteria, unclear guidelines, overlapping responsibilities among ministries, and scattered support policies are confusing businesses, especially SMEs that don’t know what qualifies as “meeting standards.” This acts as a barrier to their green transition.

Green transition cannot be a solo effort by businesses. It requires close coordination between the government, the private sector, financial institutions, research institutes, and society, reminds the instritute.

Dr. Nguyen Quoc Viet, lecturer at University of Economics (Vietnam National University, Hanoi), says “Our policies need to be practical and resonate with business realities, from responsible production to consumption. Since our financial resources are limited, investment needs to be focused rather than spread thin. If we spread too thin, each sector becomes like a separate potato, each locality like a sacred land, and each agency a fragmented part of policy support and implementation. Therefore, we need policy consistency and alignment.”

Nguyen Minh Khoi, program manager at the Tony Blair Institute for Global Change, proposes that Vietnam adopt a systemic approach with tailored policies suitable to local business realities. He underscores the need to standardise product traceability systems using blockchain technology and digital identification.

“We should support green innovation startups as they are flexible pioneers capable of breakthroughs in renewable energy, waste treatment, circular production, or sustainable agriculture. For businesses, digital transformation should not be seen as merely a tech task, but as a comprehensive strategy forming the foundation for sustainable green growth. It is not only necessary, but also sufficient for a real green transition,” analyses Khoi.

He proposes establishing a national green credit guarantee fund inspired by Indonesia’s model. In addition, he says, Vietnam should review and expand the list of green technologies eligible for import tax exemptions to improve access to eco-friendly technologies and support green product development.

Experts emphasise that to make green transformation effective and genuine, Vietnam must urgently implement the National Green Growth Strategy. This includes expanding green financing by credit institutions, especially for innovative SMEs, and enhancing the efficiency of local support funds, including loan guarantee mechanisms.

Meanwhile, enterprises must proactively practice green governance, aiming to produce socially and environmentally responsible products. SMEs should take the initiative to access green credit from domestic and international financial institutions.

Furthermore, business leaders need to be flexible, shift their mindset, and actively seek green financial sources from the market.

P4G Summit adopts two documents on green transition, sustainable development

VOV.VN - The fourth Partnering for Green Growth and the Global Goals 2030 (P4G) Summit has adopted the Hanoi Declaration on Sustainable and People-Centred Green Transition and the P4G Declaration on Strengthening Multilateral and Institutional Partnerships to Promote Green Transition and Sustainable Development.