Need to remove financial "bottlenecks" to help businesses make green transition

In recent years, economic groups and large enterprises have participated in promoting green transformation to respond to climate change and develop a low-carbon economy, towards the goal of Net Zero.

However, the change mainly appears in large enterprises and enterprises with foreign investment capital. Examples include Vinamilk, TH True Milk, Masan in announcing their roadmap for emission reduction, investment and renewable energy,...

Meanwhile, the number of small and medium enterprises (SMEs) accounts for the majority of the total number of enterprises in the country (more than 97%) but has not yet invested and has not had clear changes.

In order to support businesses in overcoming difficulties in green transformation, the "Forum on unlocking resources for businesses in 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 Studies, said that recently, many businesses in Vietnam have had positive changes in their awareness of green transformation.

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

Listing the "bottlenecks", Ms. Tran Thi Hong Minh said that, besides issues of awareness, expertise,... financial issues are the "bottlenecks" that need special attention.

Accordingly, technologies serving cleaner production, energy saving, advanced waste treatment or renewable energy deployment all require large investment costs compared to the normal financial capacity of Vietnamese enterprises.

While conventional investments in equipment or production can bring quick returns, green transformation projects such as waste gas treatment, water recycling, renewable energy use, digital operations to reduce emissions, etc., often have a payback period of 5-10 years.

Although Vietnam has had a number of green finance programs such as the Global Environment Facility (GEF), the Vietnam Environmental Protection Fund, loans from ADB, WB, etc., about 65% of businesses have difficulty accessing capital to implement green projects.

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

Continuing the above viewpoint, in order to solve the financial problem, Mr. Nguyen Thanh Son, Director of Training Center, Vietnam Banking Association (VNBA), has proposed a number of solutions to increase access to credit, contributing to sustainable development and green transformation.

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, banking and green finance, as well as capital markets to channel capital flows into the green economy and climate change programs.

Vietnam has developed a strategy and established a national steering committee to restructure the economy towards greenness and respond to climate change, but it needs to develop a policy framework, tools and green financial products so that capital flows are appropriately and adequately channeled.

At the same time, he recommended that the State Bank continue to direct credit institutions to balance capital, focus credit on priority areas according to the Government's policies, including: Agriculture, rural areas, exports, supporting technology, high-tech applications); increase capital sources for innovative and digital transformation enterprises in accordance with legal regulations...

Source: https://phunuvietnam.vn/can-go-nut-that-tai-chinh-giup-doanh-nghiep-chuyen-doi-xanh-20250422234242355.htm