This was the assessment of Ho Chi Minh City People's Committee Chairman Nguyen Van Duoc at the opening session of the "Green Transition and Recycling Day 2025" forum, organized by the Vietnam High-Quality Goods Business Association on July 31. He stated that Ho Chi Minh City is facing a new landscape, completely redefining the meaning of "development."

Firstly, the increasingly extreme impacts of climate change have become a reality. Secondly, global supply chains are being reshaped, with environmental, social, and governance (ESG) standards becoming mandatory. In this geopolitical and economic competition, strength is measured not only by growth but also by resilience and innovation. Additionally, with Ho Chi Minh City's expansion encompassing former industrial centers in Binh Duong and energy hubs in Ba Ria - Vung Tau, a green transition is essential.

"The green transition is a strategy to ensure economic security, attract investment, and secure export orders, serving as a crucial foundation for enhancing competitiveness and maintaining our position as a leading economic hub," Duoc said.

Ho Chi Minh City People's Committee Chairman Nguyen Van Duoc speaks at the forum on July 31. Photo: BSA

Ho Chi Minh City People's Committee Chairman Nguyen Van Duoc speaks at the forum on July 31. Photo: BSA

After its merger, Ho Chi Minh City now covers over 6,772 km2, with a GRDP of 2.71 quadrillion VND (24% of the national total). According to Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies (HIDS), the city faces challenges including flooding, air pollution, and infrastructure strain. As a megacity emerges, synchronized policies, inter-regional governance, and a balance of sustainable development become even more urgent.

"In particular, the city must rethink its entire development governance model, with the green transition as a core element," he said. According to the Green Transition Scheme, the city is focusing on 5 pillars: green and high-tech industry; ecological agriculture; clean energy; green urban development and sustainable infrastructure; and biodiversity conservation and climate change adaptation.

The chairman of the Ho Chi Minh City People's Committee said the city is shaping a holistic approach, from infrastructure to industry. Infrastructure development will shift from "construction" to "creating a smart and sustainable ecosystem." In the green transport transition, metro line 1 is the backbone of a multimodal public transport network, connecting electric buses, waterways, and environmentally friendly personal mobility solutions.

For industry, the focus is on "attracting high-tech and sustainable investment." A circular economy mindset, viewing waste as a resource, is also key. Source separation, promoting reuse, and building waste-to-energy plants will not only address pollution but also generate clean energy. "The plan to establish an electric vehicle battery recycling center is a pioneering step, making Ho Chi Minh City an important link in the global recycling industry supply chain," Duoc added.

He believes businesses must be at the forefront of the green transition, viewing compliance with environmental regulations and green standards as an opportunity to innovate products, conquer markets, and enhance their brands. "The government is committed to working alongside businesses on this journey and always considers them a resource and driving force for development," he said.

According to experts at the forum, awareness of the green transition among businesses has improved, but there are still limitations in action. A survey by HIDS indicated that most respondents were aware of various recycling, production, and sustainable consumption activities, but lacked clarity on policies, information about green public procurement, green finance, and other incentives for sustainable practices.

"Businesses' awareness of the green transition is evolving, but needs further improvement. The joint efforts of the private sector are the key to unlocking a sustainable, prosperous, and green future for Ho Chi Minh City," An said.

Pham Minh Huong, Director of Sustainable Development Services at Deloitte Vietnam, cited recent studies showing that 80% of Vietnamese businesses have heard of and intend to implement sustainable development. However, there's a significant gap between intention and action due to barriers such as cost, human resources, and consumer willingness to pay.

According to Huong, with limited resources, businesses need to define different roadmaps and priorities depending on the specifics of their industry. For example, energy-intensive manufacturing businesses should focus on reducing emissions, while businesses using a lot of packaging should focus on recycling. For sustainable projects with the potential to mobilize finance, businesses should conduct impact measurement processes to find opportunities to access capital sources such as loans or sustainability-linked bonds.

Pham Minh Huong and Nguyen Huy at the panel discussion on July 31. Photo: BSA

Pham Minh Huong and Nguyen Huy at the panel discussion on July 31. Photo: BSA

Nguyen Huy, General Director of Business Assurance and Food Services for Vietnam and Cambodia at Intertek Group, cited the Financial Times' "Climate Leader" ranking, noting that no Vietnamese businesses were among the top 350 in the Asia-Pacific region.

He recommended that businesses establish management systems, processes, and forms to accurately collect data on sustainable development activities. At the same time, businesses should progress from complying with regulations to achieving green and sustainable standards within their industries.

"Meeting these standards helps businesses become a vital and almost irreplaceable link in the supply chain, avoiding being chosen solely for low labor costs," Huy said. He also recommended forming sustainable production alliances to exchange information and share new technologies.

Vietnam already has the Packaging Recycling Organization Vietnam (PRO Vietnam) and, more recently, the Ho Chi Minh City Green Business Association (HGBA), established in 4/2025 with about 150 members. HGBA Vice President Nguyen Chanh Phuong stated that the green transition is a major issue involving the government, businesses, citizens, and scientists. "In the current context, businesses should work together to achieve green goals, as going it alone will be very difficult," he said.

To encourage and support green transition activities, Ho Chi Minh City People's Committee Chairman Nguyen Van Duoc said the city will prioritize resources for international-standard research centers (CoE) and startups developing technological solutions in the fields of environment, energy, and new materials.

He also requested that departments and sectors think "outside the box" with flexibility, boldly innovate their working methods, leverage technology, and increase digital transformation to advise on removing bottlenecks in mechanisms and policies to unleash social resources for green investment, especially in renewable energy and circular economy projects.

Vien Thong