Against the backdrop of global momentum towards sustainable development, Vietnam stands at a critical juncture facing both challenges and opportunities from the wave of green industrial revolution. This assessment emerged from leading experts at the Sustainable Development Conference held on November 12 at the Pullman Hanoi Hotel.

The conference brought together policymakers, industry experts, and business leaders to discuss the intensifying global trends in digital and green transformation, as well as their profound implications for Vietnam's market in the near future.

Leading experts voice perspectives at Sustainable Development Conference

Strong Commitment to Emissions Reduction

Associate Professor Dr. Nguyen Dinh Tho, Director of the Institute of Strategy and Policy on Natural Resources and Environment, highlighted the transition from Industry 4.0 to Industry 5.0 - also known as the green industrial revolution - occurring amid intensifying global power competition between major nations.

Notably, Vietnam has demonstrated stronger commitments to emissions reduction compared to other developing nations. According to Dr. Tho, Vietnam's updated Nationally Determined Contribution (NDC) has raised its mitigation targets from 9% to 15.8% under the self-reliant scenario, and from 27% to 43.5% with international support, compared to the business-as-usual scenario. These figures stand out when compared to major emitting economies such as Brazil, India, Indonesia, Thailand, and China.

The Nexus Between Digital and Green Transformation

Dr. Le Viet Anh, Director of the Department of Science, Education, Natural Resources and Environment (Ministry of Planning and Investment), cited the World Bank's latest report on dual transformation trends. The report identified 16 green technologies and 11 digital technologies as fundamental to this comprehensive transformation process.

Achievements in Green Technology Patents

Encouragingly, during the 2017-2021 period, Vietnam recorded impressive achievements in green technology patents, accounting for 15% of the total 493 patents in emerging markets, ranking third after Malaysia (51%) and Thailand (20%). These patents primarily focus on key areas such as wind energy, waste management, air and water pollution control, and green building technologies.

Challenges from New Sustainable Development Regulations

Do Le Thu Ngoc, Head of Inclusive Growth at the United Nations Development Programme (UNDP) in Vietnam, warned about the urgency of accelerating the dual transformation process. According to Ngoc, the EU's adoption of new sustainability regulations such as the Carbon Border Adjustment Mechanism (CBAM) and Deforestation Regulations, along with similar trends from other major markets, is creating significant pressure on Vietnamese businesses.

"These regulations not only require businesses to be transparent about their environmental and social impacts throughout the supply chain but also serve as a catalyst forcing them to transform or risk exclusion from global value chains," Ngoc emphasized.

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The green industrial revolution has evolved from a trend to an imperative requirement for Vietnam in its sustainable development journey. This necessitates close collaboration between the government and the business sector in developing appropriate transformation roadmaps, ensuring sustained competitiveness in the new era of green and digital economy.

Cre: VIR