Businesses have invested 9 billion USD in green growth

Sharing at the seminar "FDI enterprises in Vietnam's green growth" on April 27, Mr. Nguyen Anh Tuan - Deputy Director of the Foreign Investment Agency (Ministry of Planning and Investment) assessed that the contribution of the business community, including FDI enterprises, is very large.

According to Mr. Tuan, FDI enterprises have helped create behavioral changes in production, consumption, and business, contributing to the implementation of green growth goals.

“The business sector, including FDI enterprises and domestic enterprises, has invested about 9 billion USD in areas related to green growth and green development such as renewable energy, or investing in equipment serving the green economy. This figure accounts for about 2% of GDP and the average growth rate over the past 2 years has been quite high, from 10-13%. This is one of the very good signals,” said Mr. Tuan.

Experts attending the seminar. Photo: VGP

Meanwhile, Mr. Nguyen Van Toan - Vice President of the Association of Foreign Investment Enterprises, said that although Vietnam has made many commitments to green, sustainable growth, emission reduction, and cooperation with non-governmental organizations to build a circular economy; joined many agreements, treaties and cooperation, and most recently, the strategy to reduce emissions to 0% by 2050... however, there is still a huge gap from policy to practice.

Along with that, although FDI has a green development model, according to the cumulative summary report before 2021, the high-tech ratio of FDI enterprises is still low: only 5% use high technology, 15% of enterprises use outdated technology and 80% of enterprises use average technology.

“That is a cumulative index since we attracted foreign investment at all costs, without even paying much attention to the environment. Attracting foreign investment only requires capital, solving labor problems, only needing exports... But I am very happy that some enterprises such as Lego, Nestlé and many others in Vietnam... have paid attention to high technology. The Ministry of Planning and Investment does not have specific data yet, but I believe that in the last 3-4 years, that index has changed a lot,” Mr. Toan added.

Mr. Nguyen Quang Vinh - Vice President of VCCI, Chairman of the Vietnam Business Council for Sustainable Development (VBCSD), noted that, in response to the Government's commitments to reduce net emissions and the plans and roadmaps outlined, businesses, associations, and industries must also change their investment methods and business strategies.

“FDI enterprises are the same, they have to change the way they use technology and the formula to create surplus value instead of using new machines and technologies. If Vietnam does not commit to green growth, set high standards and strive for zero emissions by 2050, businesses will rush to buy outdated technology,” said Mr. Vinh.

According to Mr. Vinh, the big challenge for green and sustainable growth is green financial resources and human resources. If Vietnam wants to mobilize foreign participation in this process, it must have strategies and regulations to meet green investment requirements.

“It is time for the business community to look back and examine strategies, especially green growth strategies, to reposition their values, not only their roles but also how businesses create added values,” Mr. Vinh emphasized.