This message was shared at the "ESG – Green Production Transformation Trend: Seizing Opportunities to Enhance Competitiveness and Attract Investment in Gia Lai" workshop. The Gia Lai Provincial People's Committee coordinated with Becamex Binh Dinh Joint Stock Company to organize the event on 26/6. The workshop drew more than 120 representatives from domestic and international businesses, investors, and diplomatic agencies.

Experts highlight that the global business landscape is rapidly changing, with ESG progressively becoming a mandatory standard. From the European Union’s (EU) carbon border adjustment mechanism (CBAM) regulations to multinational corporations' demands for supply chain transparency, the pressure to green production directly impacts the competitiveness of Vietnamese businesses.

Domestically, the government has enacted the National Program to Promote Sustainable Business Practices for the 2026-2030 period. This program aims to support approximately 25,000 businesses, business households, and cooperatives in adopting circular economy models, inclusive business models, and the ESG framework. This demonstrates that green transformation is no longer an option but a prerequisite for sustainable development.

Nguyen Thanh Long, general director of Houselink Joint Stock Company, speaks at the workshop. Photo: Vuong Quoc

Nguyen Thanh Long, general director of Houselink Joint Stock Company, noted that green transformation is a global trend. Many major export markets are continuously raising environmental standards for imported goods. Europe, for instance, has already implemented carbon fees for specific product categories like steel, aluminum, cement, and fertilizers.

According to Long, when integrating into the global marketplace, ESG is no longer an encouraging factor but a mandatory condition. Customers demand ESG not to enhance profiles but to secure orders. A factory unable to prove its "green" credentials and transparent data will face price pressure, extended evaluation times, and potentially lose orders to competitors.

Long also stated that Vietnam has gradually refined ESG-related regulations, and many businesses are starting to integrate these criteria into their development strategies. "However, many small and medium-sized enterprises still view ESG as a 'too large and expensive garment' compared to their current resources," Long explained.

From an international investor's perspective, Nguyen Mai Hanh, senior external relations manager for Syre Impact AB in Vietnam, believes ESG is an irreversible trend. Syre Impact AB, a Swedish textile recycling group, is advancing a one billion USD fabric recycling project in Gia Lai.

Hanh noted that international fashion brands currently require suppliers to provide comprehensive documentation and data proving ESG compliance. This compels businesses to proactively establish data systems from the outset, particularly in the recycled fiber sector.

Hanh highlighted that polyester fiber production currently accounts for about 30-40% of the carbon emissions across the entire textile and garment value chain. In contrast, recycled fiber represents under 1% of the global market. With the polyester market projected to exceed 120 billion USD by 2032, Syre is developing polyester recycling technology to create a circular raw material supply and reduce emissions.

However, businesses also face many challenges, including research costs, raw material collection, and incentive mechanisms.

"This is not just one company's story; it's an ecosystem-wide narrative. We are both developing technology and demonstrating to the community that recycling businesses are processing waste, not adding environmental pressure," she stated.

Based on practical implementation, Hanh suggested that businesses can begin ESG by undertaking simple tasks such as managing electricity consumption, waste management, and environmental data storage. After effectively addressing environmental factors, they can then expand to social and governance criteria.

Professor Nguyen Hong Quan, director of the Institute for Circular Economy Development Research (Vietnam National University Ho Chi Minh City), advised businesses to first change their perspective: ESG is not a cost but an investment that will generate returns over time. He suggested starting with environmental factors and then gradually standardizing the remaining elements.

According to Professor Quan, one key challenge is the lack of coordination in policy implementation, which hinders the adoption of circular economy models at the local level. Additionally, hardware and digital infrastructure, which are foundational for the circular economy, still require significant investment.

Meanwhile, Tran Ngoc Diep, Southeast Asia sustainable development project manager for Bureau Veritas Consumer Products Service Vietnam, argued that businesses should not wait to build a complete dataset before starting ESG.

Diep advised businesses to utilize existing internal data and prioritize critical indicators specific to each industry. For textiles and garments, this includes water sources, raw materials, and fabric types. For electronics, the focus should be on energy consumption and hazardous waste. Identifying the right key indicators will help businesses effectively manage data as ESG requirements become more stringent.

Experts and business representatives participate in the discussion. Photo: Organizing Committee

Nguyen Huu Que, vice chairman of the Gia Lai Provincial People's Committee, acknowledged that ESG is an urgent issue for the Gia Lai business community. "The most suitable approach is not to pursue ESG as a trend or merely as a formality, but to start with concrete actions appropriate to the scale of each business's industry and capacity. The workshop provided crucial information for the province's businesses to absorb," he said.

Que pledged that the province will continue to improve infrastructure, enhance the investment environment, promote digital transformation, and support connections with experts, investors, financial organizations, and consulting units. He also proposed appropriate mechanisms to the central government to assist businesses in the green transformation process.

The province also hopes that business associations, international organizations, research institutes, consulting units, and leading businesses such as Becamex VSIP Binh Dinh, Houselink, Glassdome, CNG Vietnam, Syre, and other partners will continue to collaborate with Gia Lai in building a green production ecosystem, green industrial parks, circular supply chains, and scalable ESG models.

A highlight of the program was the signing of a memorandum of understanding between Becamex Binh Dinh and CNG Vietnam Joint Stock Company to develop clean energy solutions at Becamex VSIP Binh Dinh.

The organizing committee anticipates that the workshop will help Gia Lai businesses gradually adopt ESG standards, promote green transformation, and enhance their competitive advantage. This is crucial as sustainable development requirements increasingly become important criteria for global investment capital and trade.

Vuong Quoc