Financial bottlenecks need to be removed to help businesses transition to green.

In recent years, large corporations and businesses have been actively promoting green transformation to address climate change and develop a low-carbon economy, aiming for the Net Zero goal.

However, the changes are mainly seen in large enterprises and those with foreign investment. Examples include Vinamilk, TH True Milk, and Masan, which have announced roadmaps for reducing emissions, investing in renewable energy, etc.

Meanwhile, small and medium-sized enterprises (SMEs), which account for the majority of businesses nationwide (over 97%), have not received sufficient investment and have not seen significant changes.

To support businesses in overcoming difficulties in green transformation, the "Forum for Unlocking Resources with Businesses for Green Transformation" was held in Hanoi with the participation of experts and business representatives.

Speaking at the forum, Ms. Tran Thi Hong Minh, Director of the Institute for Policy and Strategy Research, stated that in recent times, many businesses in Vietnam have shown positive changes in their awareness of green transformation.

Accordingly, the trend of green transformation combined with technological advancements has created more favorable conditions for businesses to promote sustainable development. However, the level of implementation remains limited, stemming from many "bottlenecks" in green transformation within businesses.

Listing the "bottlenecks," Ms. Tran Thi Hong Minh stated that, in addition to issues related to awareness and expertise, financial matters are a "bottleneck" that requires special attention.

Accordingly, technologies for cleaner production, energy saving, advanced waste treatment, or renewable energy deployment all require significant investment costs compared to the typical financial capacity of Vietnamese businesses.

While conventional investments in equipment or production can yield quick returns, green transformation projects such as exhaust gas treatment, water recycling, renewable energy use, and operational digitalization to reduce emissions typically have payback cycles of 5-10 years.

Although Vietnam has several green finance programs such as the Global Environment Fund (GEF), the Vietnam Environmental Protection Fund, and loans from ADB and WB, approximately 65% of businesses face difficulties in accessing capital to implement green projects.

Furthermore, with most businesses currently struggling with tight cash flow, "allocating a large portion of the budget to long-term beneficial projects is not easy," emphasized Ms. Tran Thi Hong Minh.

Continuing the above viewpoint, in order to resolve the financial issue, Mr. Nguyen Thanh Son, Director of the Training Center, Vietnam Banking Association (VNBA), Several solutions have been proposed to enhance access to credit, contributing to sustainable development and a green transition.

Accordingly, the government needs to develop and establish an integrated green finance policy framework, including credit, refinancing, fiscal and financial policies for the private sector, green banking and finance, as well as capital markets to channel capital into the green economy and climate change programs.

Vietnam has already developed a strategy and established a national steering committee to restructure its economy towards a green direction and respond to climate change, but it needs to build a policy framework, tools, and green financial products to ensure that capital flows are appropriately and adequately channeled.

At the same time, he suggested that the State Bank of Vietnam continue to direct credit institutions to balance capital and focus credit on priority areas in accordance with the Government's policy, including: agriculture, rural areas, exports, supporting technologies, and high-tech applications; and increase capital for innovative and digitally transformed businesses in accordance with legal regulations...

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