Green growth is what? The status & strategy to promote the progress

Green growth is becoming a global trend strong, when the national and businesses constantly attempt to find solutions to economic development, sustainability, environmental protection, minimize negative impact on the planet. In Vietnam, green growth has become the strategic goal of many industries, from renewable energy to the solution of digital technology. So, green growth, what is? This solution actually bring benefit to the business as well as community? Let's find out in the article below of Lac Viet Computing.

1. Learn green growth

1.1 Growth what is green?

According to the Organization for cooperation and Economic development (OECD): “Green growth is the economic development strategy based on minimizing the negative impact on the environment, efficient use of natural resources, promote sustainable development.”

According to The government of Viet Nam (Decree no. 83/2015/ND-CP): “Green growth is the process of economic growth associated with environmental protection, efficient use of natural resources, responding to climate change, ensuring the sustainable development and improve the quality of your everyday life.g.”

The 2 concepts are stressed that green growth is not only minimize the environmental risks but also to promote innovation, create new economic opportunities. Core characteristics of green growth is a balance between economic growth, environmental protection, improving the quality of life.

1.2 examples of green growth

Green growth is not just theoretical concepts that have been implemented through the specific action of many businesses in Vietnam and in the world. The typical example below clearly demonstrates that the applied strategy green to help protect the environment, create competitive advantage and sustainable business. The pioneer organization in the field have shown how they combine between economic development, social responsibility to promote sustainable development.

• VinFast: Using technology in the production of electric cars to reduce greenhouse gas emissions, contributing to the tendency to use transport blue in Vietnam and international.
• Unilever: Given the strategic use recyclable packaging, optimize resources in production, minimize plastic waste.
• Water plants Tan Hiep 2 (HCMC): Integrated IoT technology to monitor the efficient management of water resources, ensuring savings.

These businesses not only confirms the pioneering position but also create motivation to spread the spirit of green in the business community, which helps green industry gradually become the benchmark new development.

1.3 the Relationship between the green economy and green growth

Green economy and green growth are focused on the sustainable development goals, but there are differences in scope:

• Green economy is the economic model focuses on the replacement of the industry cause harm by industry-friendly environment, enveloping the entire economy.
• Green growth emphasis on improvement in the business or specific areas to achieve economic efficiency, environmental protection parallel.

For example: A green economy will invest in industry, recycling or renewable energy, while green growth focuses on how businesses in the industry in reducing emissions, resource use more efficient.

2. Green growth can do for your business?

In the context of the global environment is under pressure from economic activity, business is increasingly more aware of his role in creating positive change. Green growth is not merely a commitment to the environment, but also opens many exceptional opportunities to enhance business efficiency, meet customer needs, promote our position in the market. Here are the benefits that businesses can achieve when applying green growth strategy.

• Strengthen suction power brand and trust from customers: Business to adopt green growth has the ability to build brand image positively, attract customers thanks to the commitment to protect the environment.
• Minimize operating costs and resources: The application of digital technology, renewable energy sources helps to optimize the cost of energy, water, raw material input.
• Meet legal requirements and catch the market trends: Comply with increasingly stringent environmental protection from the government and international organizations.
• Promote creativity and innovation in business: Green growth strategy stimulate business investment in R&D to improve products, enhance performance, meet the international standard.
• Expand cooperation opportunities and financial resources: The business committed to green growth often be approached with capital support program, tax incentives, cooperation from the large financial institutions.

3. The status of green growth in Vietnam today

3.1 achievements

In recent years, Vietnam has achieved many important advances in promoting green growth, particularly in the areas of policy, renewable energy technology application.

Policy and national strategy

• Plan national action on green growth period 2021-2030, vision 2050: The government has committed to reduce 15% of greenhouse gas emissions in 2030 compared to the level of 2014. In particular, Vietnam has also set a target level of emissions to net 0 by 2050, as was committed at Conference COP26. Here is a step strong in building a green economy, sustainability and minimize adverse impact on the environment.
• The main frame sync list: The national policy has now support for green industry development, at the same time create a favorable environment for investment in the field of clean energy and renewable technologies. The government also is building financial mechanisms to support business transition to green growth model, including the program credit green tax support.

Development of renewable energy

• Solar power: Vietnam is a country-led southeast Asia capacity solar power installation. With more than 16.5 GW of installed capacity (according IRENA, 2023), Vietnam was quick to rise up in the application technology of solar power to generate clean energy sources, reducing dependence on fossil energy sources. The solar project floating on the lake, power sun roof has become a trend in the development of renewable energy in the province.
• Wind power and hydro power: The wind power project is being implemented strong in coastal areas such as Quang Tri, Binh Thuan, Khanh Hoa, with a total capacity of wind reached more than 4.5 GW in 2023. Besides, hydropower projects also does not contribute to the supply of clean energy for the country.
• Technology application number: The business in the country, especially in the manufacturing sector, have started using advanced technology such as the Internet of Things (IoT), artificial intelligence (AI), Big Data to optimize the process of using energy and resources.

For example: Vinamilk, one of the big companies in the dairy industry, has deployed IoT technology in the dairy farm of his own. This technology helps tracking and optimizing the use of water, food, livestock management, at the same time minimize emissions of methane from livestock.

3.2 Difficult and challenging

Although Viet Nam has achieved a number of significant achievements in promoting green growth, but still no less difficulties and challenges in realizing this goal.

• Restrictions on capital: The project, renewable energy, green technology, capital requirements the large initial investment. This is especially difficult for small and medium enterprises (SMEs), as they lack the ability to mobilize capital from traditional financing. Meanwhile, big business can easily access funds from financial institutions or investment funds.
• Lack of synchronization in the policy: Although The government has taken many strategies, but still lack of synchronization in the implementation of policy support for enterprise engaged in the green industry. The tax regulations, financial aid, green credit has not been fully deployed, or even more entangled. In addition, administrative procedures in the issuance of permits for the project of renewable energy such as solar power and wind power are still complex, making it difficult for investors and businesses.
• Limited awareness: Some businesses are still not fully aware about the benefits of green growth and still see it as a cost rather than a strategic opportunities to increase long-term benefits. Especially in the context of economic difficulties, the transition to the green model is still many businesses deemed not feasible or not required.
• Lack of infrastructure support: A big challenge for the development of renewable energy is that the infrastructure has not developed equal. The technology, energy storage (battery storage), smart grid has not yet been widely deployed and synchronized across the country, prompting the development of renewable energy, yet to achieve optimum efficiency. In addition, the power grid system old, not smart, making the connection with solar power, wind power into the national grid is facing many difficulties.

4. Green growth strategy in business

To business can be sustainable development, contribute to green growth targets, the construction of the appropriate strategy is very important. Below are the main strategies to help businesses promote green growth, minimize negative impact on the environment, while improving operational efficiency.

4.1 Integrated digital technologies promote growth

Digital technology plays a key role in promoting green growth. The use of advanced technology doesn't just help businesses improve productivity and operational efficiency, but also help minimize the impact to the environment.

• Technology applications, renewable energy smart:
  Digital technology helps to optimize the process of using renewable energy. The management system, smart energy use IoT, AI, Big Data can analyze data in real time, adjust the level of energy use, reducing waste. Businesses can optimize the use of solar power, wind, renewable energy source to another.
• Digitized production process:
  The application of digital technology in the production process help businesses minimize the use of resources and energy. The ERP (Enterprise Resource Planning), IoT helps monitor, manage resources more efficiently, from which optimize production and minimize waste.
• Supply chain management smart:
  Use digital technology to monitor and manage your supply chain to help businesses reduce carbon emissions from the shipping process, manufacture. The blockchain technology, AI can help optimize processes, raw material supply, delivery, reduce reliance on sources of non-renewable resources.

4.2 strengthen cooperation in the ecosystem xanh

One of the key strategies to promote green growth is to cooperate closely in green ecosystem where businesses, organizations and stakeholders together to build a sustainable economy.

• Cooperation with technology partners, a provider of renewable energy:
  Business can partner with a provider of green technology and renewable energy to develop solutions to save energy, reduce carbon emissions. Work together to build the infrastructure, green energy brings economic benefits, helping to improve the environment.
• Associated with environmental organizations and community:
  Promote cooperation with non-governmental organizations, government agencies, the local community, help businesses create initiatives to protect the environment, thereby contributing to the sustainable development of society. The cooperation strategy, this includes participation in the program to reduce carbon, planting trees, or support activities protected plants and animals.

4.3 promote corporate culture, green

Corporate culture is the determining factor to the success of the green growth strategy. To transition to green growth model, effective, businesses need to build a culture of green in the entire organization.

• Training and awareness for staff:
  Training employees about the benefits of the implementation of the green initiative is an important step to building culture business green. Businesses need to organize training programs, workshops, campaigns, internal communications to raise awareness about environmental protection, energy saving, using resources in an efficient way.
• Encourage creativity and innovation:
  Culture green also encourage employee creativity, contribute to initiatives to protect the environment. The enterprise can organize the contest creatively about solutions to save energy, reduce CO2 emissions, or find out how to minimize waste in the production process.
• Measurement and evaluation of effectiveness:
  Enterprises need to build indicators to measure and evaluate the applied green initiative, as the proportion of minimizing energy consumption, reducing CO2 emissions, or the proportion of recycled material. This helps businesses keep track of progress and adjust strategies as needed.

4.4 Avail the policy support from The government

The government of Vietnam has issued many policies to support businesses in the transition to green growth model, including tax incentives, green credit, and support research and development of green technology.

• Credit policy green:
  Businesses can take advantage pack green credit provided by the bank to invest in projects in renewable energy, green technology, or project to mitigate environmental pollution.
• Tax incentives for green businesses:
  The government offers tax incentives for businesses to invest in clean technology and environmentally friendly, help reduce the financial burden for businesses in transition.
• Support research and development (R&D):
  The policy research and development (R&D) helps businesses can develop and apply new technologies, which helps reduce the cost, sustainable growth. Businesses get support from R&D fund to invest in research, product development and green technology.

4.4 Cut paper documents

Minimize the use of paper documents is an act not only saves cost, but also minimizes the impact on the environment through the protection of the forest, save water, reduce CO2 emissions from the production of paper. When using the solutions to digitize, businesses will reduce printing costs, preserve material paper, cut operating costs. This helps save resources contribute to the objective of environmental protection, pursuing green growth.

Services, document digitization of Vietnam using OCR technology advanced, have the ability to recognize, convert photo or scan documents into digital text with high accuracy. Tech support recognize multiple languages, including Vietnamese with signs, help to expand the ability to apply for business in many different areas.

Digitization services of supply, storage capacity, data security in place through a system of Local AI Server, avoiding the risk of leakage or loss of information when transmitted through the services public cloud. This is a strong point important, especially for business requires high security, do not want to use storage services cloud international.

The strategies, policies right will help businesses not only reduce the adverse impact on the environment, but also opens new development opportunities, improve business efficiency and enhance competitive position. With the progress achieved during the last time, the applicable model green growth has clearly demonstrated that the combination of environmental protection, optimize economic benefits is workable. Therefore, every business should be more active again in the construction of the green growth strategy for the sustainable development long-term.

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