Green Industry: From Choice to Mandatory Requirement

Industry as a Growth Engine, But a New Model is Needed

After more than three decades of industrialization, the industrial sector currently contributes about 35% of GDP and is a key pillar for job creation in Vietnam’s economy. However, rapid growth has brought a series of challenges: 75% of energy still comes from fossil fuels, domestic value added is low, supporting industries remain weak, and sectors such as cement, metallurgy, and mining continue to cause serious pollution.

Although the energy and transportation sectors have started the green transition, the industrial sector – the backbone of national production – has not yet been placed at the center of green growth strategies or Net Zero commitments. This puts Vietnam at risk of falling behind as major export markets tighten ESG standards and carbon taxes.

Research and practical models indicate that investing in green industrial zones can increase productivity by 15–25% and reduce operating costs by up to 30% through high-tech, circular, digital, and renewable energy applications. This is a key factor for Vietnamese enterprises to continue participating in global value chains, as major corporations like Apple, Samsung, Nike… now include ESG as a mandatory criterion.

Shifting Industrial Development Mindset: Towards Sustainable Growth

Dr. Chu Van Lam, Chairman of the Editorial Board of Vietnam Economic Review, emphasized in his opening speech at the forum: “In the equation of high growth and sustainable development, the solution does not lie in trade-offs but in strategic thinking. We must design an industrial model suitable for Vietnam’s capacity while meeting new global standards for green development.”

International experts, including representatives from ADB, also noted that Vietnam needs to phase out the industrial growth model based on low costs, high resource use, and high emissions as soon as possible.

According to Mr. Nguyen Ba Hung, Chief Economist of ADB in Vietnam, the trend of “decoupling growth from emissions” successfully implemented by many developed countries is entirely feasible for Vietnam if appropriate policies, synchronized institutions, and clear roadmaps are in place.

Vietnam is gradually realizing its Net Zero commitment by 2050 through the Green Growth Strategy to 2030, piloting carbon exchanges from 2025, and implementing key policies such as Resolution 29-NQ/TW, Decision 21/2025/QD-TTg… contributing to the formation of a green institutional and investment ecosystem.

Industrial Transformation for Sustainable Development

At the forum, major companies such as Panasonic, CNCTech, and VietCycle shared new-generation industrial zone models that apply digital technologies, circular economy principles, and energy-saving solutions to reduce costs and enhance competitiveness. These models not only protect the environment but also provide clear economic benefits.

However, speakers also warned about the inherent conflict between high growth demands and increasingly strict environmental standards from export markets. Mr. Tran Duc Ninh, CEO of KN Group, stated that transformation cannot wait until carbon taxes are applied or goods are rejected. Vietnam must act now, especially in the industrial sector.

Future Requirements: Act Now

Experts recommend that Vietnam’s industrial development strategy converge on four key factors:

1. Position green industry as a national development priority.

2. Establish strong green institutions and credit systems.

3. Develop competitive supporting industries.

4. Support businesses in innovation, workforce training, and technology transfer.

At the same time, Vietnam needs to promote a domestic carbon market, expand green financing, diversify credit programs, and develop an innovation ecosystem connecting enterprises with research institutes and universities.

Dr. Chu Van Lam emphasized: “The solution does not lie in trade-offs but in choosing the right direction and committing to action; harmony must not just be a slogan but a long-term development principle. In an era where ESG, Net Zero, and green growth are becoming benchmarks for national capacity, Vietnam cannot delay. Building an innovative – green, clean, self-reliant, and competitive – industrial strategy is not only a contemporary requirement but also an inevitable path to ensure sustainable national development for decades to come.”

Source: Net Zero Vietnam

https://netzero.vn/cong-nghiep-xanh-tu-lua-chon-den-yeu-cau-bat-buoc/