The transition to a green economy will bring opportunities for Vietnam not only to transform products and services, but also to reduce environmental impacts, develop clean technologies and capture international markets.

The efficient use of resources can bring significant cost savings across a number of sectors. Decarbonisation of energy generation, transport and buildings will create business opportunities.

Markets for renewable resources such as timber and energy crops are likely to expand, with new markets for ecosystem services. Furthermore, a good quality natural environment will enable a wide range of service, lifestyle and tourism businesses that depend on the quality and diversity of the natural environment.

Contributing to environmental benefits, improved resource efficiency can deliver cost savings and increase competitiveness for businesses. There will be potential gains for businesses in this area. In the same way as the carbon market rewards organisations for reducing emissions there may be longer-term opportunities to establish a market which helps manage other natural resources or services.

Besides potential benefits, businesses will need to meet the challenges associated with the transition to a green economy and that result from climate change. For example, a potential significant challenge for energy intensive businesses will be the increased costs as a result of climate change and other environmental policies, and from the increased cost of energy.

But, improving energy and resource efficiency will not only be about investment in new capital and new technologies. Regular monitoring and maintenance will often maintain or improve efficiency where new capital investment may bring minimal improvements and increase waste. As such, there is an increasing role for the use of equipment, which monitor and identify inefficient equipment or processes.

Also, more needs to be done to reduce greenhouse gas emissions through materials efficiency, increased recycling and the development of new process technologies and new carbon abatement approaches such as carbon capture and storage, renewable heat and electricity.

Moreover, many industries may need to change their business models over the long-term, with some disruption and cost. This may involve a focus on a service-based model involving longer-term customer relationships, such as leasing, repair, refurbishment or reuse of products by successive customers.

One of Vietnam’s green growth strategies is building green lifestyle and sustainable consumption. To help meet the targets that have been set, consumer demand needs to change, with a shift towards products and services that are green and more efficient. Where this happens businesses will need to take account of the environmental impact of their products, services and sustainable business practices at home and abroad. Access to strategically important resources could become a growing issue for businesses.

The transition to a green economy requires a workforce with relevant skills. This includes not only skills in the low carbon and environmental goods and services sector, but also those needed to help all businesses use natural resources efficiently and sustainably and to be resilient to climate change. Skills for a green economy stresses that all businesses – from small owner-managed companies to large service businesses – should be thinking about the generic skills required to use resources efficiently and sustainably.

To support the transition to a green economy, the government’s commitments and businesses’ efforts will be key factors. To enjoy the success, the green growth policies should be taken into account to ensure the competitiveness. There is a need for support to enable businesses to increase their resource efficiency, resource security and resilience to climate change.

Furthermore, the encouragement and relevant investment will be necessary to support the development of green products, services and technologies.

Businesses could explore approaches to greening products and services, production processes and business models which reduce the use of resources and carbon emissions. Enterprises or investors should consider the value of the natural environment to their business and invest in green products, services and production processes. They should also build risks of energy/resource security and climate change into future business planning.

Source: VIR.