Many advantages, but also great challenges.

The Lego factory commenced construction in November 2022 at the Vietnam-Singapore Industrial Park 3, Binh Duong province. (Source: Dau Tu Newspaper)

In recent times, many global giants have established themselves in Vietnam, focusing on green criteria such as using renewable energy, innovating machinery and technology, and making commitments related to environmental and climate protection.

For example, the $1.3 billion FDI project by Lego Group (Denmark) in Binh Duong plays a "landmark" role in shifting FDI capital into Vietnam. Or the Heineken brewery in Ba Ria - Vung Tau, which plans to operate 100% on renewable energy. 97% of the biomass heat energy used to brew beer at this factory is supplied by a business across the street, right in the My Xuan Industrial Park…

Assessing Vietnam's potential and advantages in attracting green FDI, Tim Evans, CEO of HSBC Vietnam, stated that Vietnam already possesses many factors to attract foreign direct investment (FDI). Specifically regarding green FDI, nearly 40% of Vietnam's land area has average wind speeds favorable for wind power development.

The Heineken brewery in Ba Ria – Vung Tau plans to operate entirely on renewable energy. (Source: Heineken)

He emphasized: "Furthermore, the country has many areas with favorable radiation levels for solar power development. Therefore, Vietnam possesses advantages in both policy and geographical conditions to compete with other countries in the region in attracting green FDI."

Affirming that Vietnam is a very promising growth market, Mr. Bhardwaj Vinay, General Director of Indorama Ventures Vietnam, wants to seize this growth opportunity.

Accordingly, Indorama Ventures Ngoc Nghia Vietnam has chosen a sustainable development approach. From an investment and business perspective, green solutions such as energy optimization will help businesses reduce costs. Access to funding from international organizations and banks for green projects is now also easier and cheaper than before.

Meanwhile, Mr. Nguyen Anh Duong, Head of the General Research Department (under the Central Institute for Economic Management Research - Ministry of Planning and Investment), stated that the interest of FDI investors in the green economy has created positive ripple effects on the entire government system, people, and businesses in Vietnam.

Currently, government agencies and businesses have taken steps to shift towards green production. Many industrial zones are also paying more attention to screening and assessing the impact of projects to ensure they are environmentally friendly.

"In particular, Vietnam is among the countries with a growing trend towards sustainable consumption, which has contributed significantly to creating demand for green products. This, in turn, helps attract FDI into green industries and economic activities naturally," Mr. Nguyen Anh Duong shared.

Green FDI flows into Vietnam are increasing. (Source: Lao Dong Newspaper)

However, challenges exist in attracting green FDI, and Vietnam needs to urgently address these challenges to attract more green FDI flows.

Gabor Fluit, General Manager of De Heus Asia, noted that the country faces obstacles in complying with the European Union's (EU) green supply chain focus. Specifically, this includes the enforcement of stricter environmental standards and regulations. Simultaneously, the adoption of green technologies requires significant investment. Ensuring transparent and sustainable sourcing from local suppliers also presents a considerable challenge for the country.

A wind power project in Dak Lak. (Source: Trung Nam Group)

“Vietnam urgently needs to upgrade its power grid to connect existing solar and clean energy projects and support new projects in the future. Neglecting this upgrade could lead to more frequent power outages, disrupting daily life and business operations,” emphasized the CEO of De Heus Asia.

A renewable energy complex with solar and wind power covering an area of ​​900 hectares in Ninh Thuan. (Source: Trung Nam Group)

Furthermore, experts believe that policies and incentives to encourage FDI investment in renewable energy projects will be crucial. This is an issue that the Vietnamese government needs to focus on in the coming time. At the same time, it should concentrate on training the workforce to equip people and businesses with the necessary skills for this developing sector.

Vietnam urgently needs to upgrade its power grid to connect solar and clean energy projects. (Source: Bnews)

Source: https://baoquocte.vn/thu-hut-von-fdi-xanh-loi-the-nhieu-thach-thuc-lon-294509.html