Speaking at the Ho Chi Minh City Green Enterprise Conference (HUGA) on the afternoon of June 10, 2025, Ms. Trinh Thi Huong, Deputy Director of the Department of Private Enterprise and Collective Economy Development (Ministry of Finance), emphasized the important role of the private sector in the green transition process.
Speakers at the seminar on the afternoon of June 10, 2025
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Huge capital needs for the green transition
According to a World Bank study, in 2020, Vietnam lost $10 billion due to climate change, equivalent to 3.82% of GDP. If timely interventions are not made, this number could reach $523 billion by 2050, equivalent to 12-14% of GDP per year.
Vietnam needs to mobilize about $368 billion in the period of 2022-2040 to respond to climate change, equivalent to 6.8% of GDP. More than 50% of the capital needs to be mobilized from the private sector, equivalent to $186 billion, about 3.4% of GDP per year.
“The private sector plays a very important role in responding to climate change and the green transition, contributing to sustainable development,” affirmed Ms. Huong.
Therefore, Resolution 68 of the Political Bureau also mentioned that the private economic sector is the most important driving force of the economy, the pioneer force in promoting growth, creating jobs, and increasing labor productivity. The private sector is also a force contributing to the restructuring of the economy towards green growth.
Ms. Huong shared three main policies that the government is implementing to support businesses in the green transition:
First, create a favorable, open, transparent, and safe business environment for enterprises. This is what businesses want most from the government, not financial support.
Second, support businesses to improve their competitiveness and access to resources. With 98% of private enterprises being micro, small, and medium-sized enterprises, access to finance, technology, markets, and human resources are major challenges.
Third, implement breakthrough policies. Resolution 68 and 98 have introduced two important policies: a 2% interest rate subsidy for green projects through commercial banks or non-budget financial funds, and a 200% tax deduction for R&D investment costs.
According to Resolution No. 68-NQ/TW, Vietnam sets a target of having 2 million enterprises by 2030. In the context of globalization and climate change, the development of the green private sector is identified as a top priority.
Ms. Huong said that the government is making efforts to implement support activities to improve capacity through training, awareness-raising training, sharing of tools, and legal research. A program to support pioneering enterprises in innovation, creativity, and digital transformation is also being designed.
Motivation and barriers in the green transition
Regarding the motivation for enterprises to transition to green growth, Ms. Huong said that there are two main forces at work. First is the pushing force, including pressure from the market, investors, and environmental and social regulations. Second is the pulling force, which includes the practical benefits of the green transition and the preferential policies of the State. Among them, the internal motivation of the enterprise is considered the most important.
However, Ms. Huong also pointed out three main barriers that small and medium-sized enterprises are facing. First is the lack of awareness and information – many enterprises do not know what ESG is, where to start, and how to go about it. Second is the lack of resources in terms of capital, technology, markets, and human resources, especially for manufacturing enterprises that need to transition to new technologies. Finally, there is a lack of connection and support from the ecosystem, including the linkage between the State, investors, financial institutions, schools, and associations.
To overcome these challenges, Ms. Huong proposed three main solutions. First, in policy-making, it is necessary to closely consult with the business community from the very beginning of the policy-making process. In the process of building Resolutions 68 and 98, although there were only about two months, the agencies carefully consulted with the business community through online and offline forms.
Second, in implementing policies, there needs to be the participation of related partners and intermediary organizations, with the State playing only a facilitating role, building legal frameworks, and implementing pilot models. Finally, the business community needs to take the initiative in exploring and accessing support resources.
“The green transition is not just about compliance, but about investing in the future, which is the value of the enterprise’s assets in the balance sheet,” Ms. Huong emphasized.
Cat Lam
– 18:56 10/06/2025
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