To keep businesses on track in the "arduous" green transformation journey

	Truly comprehensive finance: supporting micro and small enterprises
	Green transformation: It's time to force businesses to "get involved"

Mr. Nguyen Quang Vinh

VCCI has worked with ministries, sectors and international experts to develop the Corporate Sustainability Index (CSI) since 2016. How has this index impacted the Vietnamese business community, Sir?

Green transformation is not only a trend but also an inevitable requirement in the context of increasingly serious climate change and countries must move towards a sustainable economic development. In implementing the green transformation goal in Vietnam, the role of the business community is extremely important. Therefore, VCCI has proactively coordinated with ministries and branches such as the Ministry of Labor - Invalids and Social Affairs, the Ministry of Natural Resources and Environment as well as international organizations to build the CSI Index.

This index was created to assess the sustainability of businesses, helping them identify the strengths and weaknesses of their business models. With the support of the Government, we annually organize the ranking of sustainable businesses in Vietnam to recognize and honour businesses that implement well the criteria of sustainable development.

The 2024 CSI Index with more than 150 indicators, 62% are compliance indicators and 32% are green initiative indicators. Therefore, this Index is not only a measurement tool but also a mirror for businesses to find shortcomings in the production process, thereby being able to improve and go in the right direction in the " arduous" green transformation journey, contributing to the sustainable development of the whole economy.

What do you think about the successes and challenges that Vietnamese businesses face in transitioning to a circular economic model?

Many Vietnamese businesses have actively participated in the circular economic model, reducing greenhouse gas emissions. This model not only helps to minimize the impact on the environment but also creates a driving force for businesses to develop. Some applying the circular economic model can optimize production processes, reuse raw materials, reduce waste and save costs. In addition, reducing greenhouse gas emissions is also an important goal for businesses in the green transformation journey following global trends.

However, not all businesses can easily switch to this model. One of the biggest challenges is the lack of clear support policies from the government, especially in encouraging businesses to invest in green technology. Many businesses, especially small and medium-sized ones, are still hesitant because the initial investment costs for new technologies are quite high.

In addition, accurately measuring and reporting the environmental impact of manufacturing activities, such as greenhouse gas emissions or impacts on biodiversity, is also a challenge for many businesses.

In the coming time, to continue promoting sustainable development, in your opinion, what do businesses need policies?

One of the most important factors is to create a clear and stable legal environment for green growth and green transition. For example, having a clearer definition of green business so that there are specialized preferential policies.

Businesses also requested strong support policies from the Government. In fact, many businesses are still facing difficulties in accessing resources to support green transformation, especially for small and medium businesses Therefore, we hope that the Government will soon issue clearer criteria on green criteria.

In addition, we also recommend that the Government develop preferential policies on tax, finance and land for start-ups, especially those applying the circular economic model and using green technology. These policies will help businesses reduce initial investment costs and create motivation for them to dare to embark on the green transformation journey.

We also hope that in the coming time, the Government will continue to closely coordinate with the business community to create sustainable initiatives, while encouraging businesses to participate in environmental protection and sustainable development activities. Once large enterprises take the lead in green transformation, they will become mirror for small and medium businesses to follow, thereby creating a stronger and broader green transformation movement in the business community.

Thank Sir!