Vietnamese enterprises should focus on green growth and the green and circular economies that have become a mainstream trend globally, the Green Economy Forum heard in HCM City on Saturday.

Nguyen Hong Quan, director of the Institute for Circular Economy Development at the Viet Nam National University, Ho Chi Minh City, said green growth strategies and awareness of green and sustainable growth have improved significantly among provincial administrations, the public and businesses.

They have gradually made changes to businesses and daily life and made practical contributions to implementing the green growth strategy, he said.

However, the Government and international organisations point out that Viet Nam's economy has not developed sustainably, and that quality, productivity, efficiency, and competitiveness remain low, he said.

The economy is not stable because development still relied heavily on the exploitation of natural resources, capital and labour, and inefficient use of resources and energy has increased pollution and greenhouse gas emissions, he added.

Experts said a green economy and a switch to green growth would help businesses improve their competitiveness and catch up with global trends.

Changes in consumer behaviour due to COVID require manufacturers and retailers to meet green standards and transparently provide information.

The growing ‘green lifestyle’ trend has brought new requirements for Vietnamese businesses in the race to enhance their competitive capacity.

According to the director of the Institute for Brand and Competitiveness Strategy, Vo Tri Thanh, two factors spurring green growth are digital transformation and the circular economy.

Under free trade agreements, if firms do not adopt “green” production and business, their products would not find favour with consumers, thus their competitive edge is lost, he said.

“Green growth is prompted by market demand, not just policies or legal regulations,” he said, pointing out that green growth has helped firms and brands become more resilient in both the medium and long terms.

The Government has approved the National Green Growth Strategy for 2021-30, which sets out an overall goal of promoting economic restructuring in association with transforming the growth model that would incorporate environmental sustainability and social equity.

Viet Nam showed its strong commitment to green growth at the 26th United Nations Climate Change Conference when Prime Minister pledged it would achieve its net zero carbon emissions target by 2050.

To achieve its sustainable development goals, the country needs to achieve strategic breakthroughs in terms of institutions, human resources and infrastructure, and focus on innovation and science and technology, experts said.

Source: VNS