Green Standards and the Barriers Businesses Must Overcome

The Importance of Green Standards

Green standards are a set of regulations and guidelines aimed at ensuring business operations are environmentally friendly, efficiently utilizing resources, and minimizing negative impacts on ecosystems. Adhering to these standards not only meets legal requirements but also enhances a company’s reputation and image in the eyes of consumers and international partners. Notably, as major markets such as the EU and the US tighten environmental regulations, compliance with green standards has become a “passport” for Vietnamese goods to enter these markets.

Applying green standards brings multiple benefits. Firstly, it helps businesses cut costs by using energy and materials more efficiently while reducing waste. Secondly, it improves brand reputation, fostering trust among customers and international partners. Moreover, meeting green standards helps companies avoid trade barriers and leverage incentives from free trade agreements (FTAs). However, to fully reap these benefits, businesses must invest in clean technologies, optimize production processes, and train their workforce, which requires commitment and substantial resources.

Barriers to Implementing Green Standards

Despite recognizing the importance of green standards, many businesses, especially small and medium-sized enterprises (SMEs), face significant challenges in transitioning:

• Financial and Resource Constraints: Investing in clean technology, improving production processes, and workforce training demand substantial capital. With approximately 97% of Vietnamese businesses being SMEs, limited resources make it difficult for them to fund green transformation.

• Lack of Information and Knowledge: Many businesses have not fully accessed information on green standards and their benefits, leading to delays in implementing necessary measures to meet market requirements.

• Challenges in Accessing Green Finance: While banks are increasingly prioritizing credit for green projects, many businesses struggle to secure financing due to a lack of collateral or failure to meet stringent criteria.

• Traditional Mindset and Awareness: Some businesses still perceive investments in green technology as a cost rather than a long-term investment that yields sustainable benefits. This mindset hinders the adoption of green solutions in production and business operations.

Solutions to Help Businesses Overcome Barriers

To support businesses in overcoming these challenges, close collaboration between regulatory agencies, financial institutions, and businesses themselves is essential:

• Establishing Clear Policies and Regulations: The government must introduce specific support policies to facilitate businesses’ green transition, including streamlining administrative procedures and providing timely and transparent information on green standards.

• Financial and Technical Support: Creating support funds and preferential loan programs for green projects is necessary. Additionally, organizing training programs and technical consultancy will help businesses enhance their capacity and understanding of green technology. Partnering with international organizations will also enable businesses to access resources, technology, and expertise from developed nations, thereby accelerating the green transition.

• Strengthening International Cooperation: Collaborating with international organizations will help businesses access global resources, technology, and expertise, promoting an effective green transition. Furthermore, participating in free trade agreements (FTAs) provides businesses with opportunities to enter international markets with tax incentives, requiring them to elevate production standards to meet import market requirements.

• Raising Awareness and Training the Workforce: Businesses need to shift their mindset and view the green transition as an opportunity rather than a challenge. Training employees in green technology, environmental management, and international standards will empower businesses to proactively implement sustainable solutions.

Conclusion

The green transition is no longer optional but a mandatory requirement for Vietnamese businesses in an era of global integration and increasingly stringent environmental standards. Compliance with green standards not only enhances competitiveness and expands market reach but also contributes to sustainable economic development.

However, businesses, especially SMEs, still face multiple barriers related to finance, technology, and policy support. Therefore, close coordination between the government, financial institutions, and industry associations is essential to establish an effective support ecosystem.

Adopting a new mindset, investing in clean technology, and optimizing supply chains will help businesses seize opportunities from the green transformation. Additionally, the government must refine incentive policies, streamline procedures, and promote international cooperation to support businesses in accessing global markets.

Green standards are not barriers but opportunities for Vietnamese businesses to reach new heights, assert their position, and contribute to a green, sustainable economy.