Dual Transition: The Way Out of the Climate Crisis and Sustainable Growth

Digital transformation is an important driving force to promote the success of green transformation. Accordingly, the dual transformation trend is inevitable and the business community needs to grasp it to take advantage of new business opportunities.

Vietnam has implemented many important strategies on green growth and climate change, achieving certain results. (Photo: Vietnam+)

Vietnam and world Vietnam is facing a serious climate crisis, requiring drastic actions for a green, safe and sustainable future. This is the main theme of the Annual Conference on Sustainable Development and the Launching Ceremony of the Special Issue with the theme “Pioneering Dual Transformation for a Greener Vietnam” organized by Investment Newspaper on 12/11.

The “crossover” of double conversion

General assessments at the workshop stated that in recent years, Vietnam has emerged as a dynamic factor in the global economy with digital transformation. Green transformation is playing an important role as a catalyst for the country's growth and development. This transformation is an inevitable and irreversible trend. This is also an important strategy for sustainable economic development.

Mr. Le Trong Minh, Editor-in-Chief of Investment Newspaper, emphasized the intersection between digital transformation and green transformation, creating a synergy that supports the benefits of both. In particular, digital transformation is both a means of modernizing the economy and providing powerful tools to promote green growth. Meanwhile, green activities can promote the application of sustainable digital solutions.

Therefore, Mr. Minh believes that promoting green growth through digital transformation will bring Vietnam a special opportunity to achieve sustainable development, increase labor productivity and improve the quality of life of the people. However, to achieve the expected results, the business community - one of the main subjects of this process, needs to have a high awareness of responsibility and at the same time pioneer and actively take innovative actions.

Affirming the urgency of dual conversion, Deputy Minister Ministry of Planning and Investment Do Thanh Trung shared that Vietnam has implemented many important strategies on green growth and climate change, achieving certain results. However, digital transformation and green transformation are still taking place separately, not fully exploiting their potential.

Promoting green growth through digital transformation will provide Vietnam with a unique opportunity to achieve sustainable development. (Photo: Vietnam+)

The Deputy Minister cited the World Bank's 2023 report on the Dual Transformation trend, which pointed out the connection between digital technology and green technology. During the 2017-2021 period, Vietnam held 15% of the total 493 green patents in emerging markets, behind Malaysia (51%) and Thailand (20%). Meanwhile, in terms of digital transformation technologies, Vietnam only held 8% of the total 537 patents in developing economies, behind Malaysia (58%), the Philippines (16%) and Thailand (11%). On that basis, the World Bank recommends that digital transformation is an important driving force to promote the success of green transformation. Therefore, the dual transformation trend is an inevitable trend that the business community in Vietnam needs to grasp to take advantage of new business opportunities as well as bring sustainable benefits to society and the environment.

Leaders of the Ministry of Planning and Investment emphasized a number of issues related to dual transformation. In particular, science, technology, innovation and high-quality human resources are the prerequisite foundation. In addition, dual transformation must be people-centered, ensuring fairness and minimizing impacts on vulnerable groups. However, this process requires close coordination between the State and enterprises. In addition, the parties also need to update and grasp world trends and strengthen international cooperation.

In addition, Deputy Minister of Planning and Investment Do Thanh Trung also suggested that FDI enterprises need to support small and medium enterprises in the dual transformation process. Finally, he emphasized that digital transformation and green transformation need to support each other: “Digital transformation helps green transformation faster, but digital technology itself needs to be greener to reduce energy consumption.”

Optimize internal initiatives

Mr. Craig Richard Bradshaw, General Director Masan High-Tech Materials, shares experience in sustainable development strategy combined with innovation. The company has developed high technology with more than 105 patents, Science and technology certified as a “High-Tech Enterprise.” Masan High-Tech Materials cooperates with technology enterprises, universities, and research institutes in the program “Innovation for the Energy Revolution” by Goverment Germany sponsored. In addition, the company promotes continuous improvement programs, innovates production and business, and creates sustainable values.

To achieve this result, Mr. Craig said that Masan High-Tech Materials always encourages its staff to proactively propose initiatives to improve product performance and quality, initiatives related to green transformation and green production, environmental protection, towards the goal of Net Zero.

“Awards such as Kaizen Awards and Innovation Awards are held annually to promote the spirit of innovation from within, to recognize and apply in practice initiatives to improve processes, save energy and optimize resources, and achieve sustainable development goals. Thereby, enhancing competitiveness in the global market, meeting the increasing requirements of environmental responsibility from customers and partners,” said Mr. Craig.

Assessing the dual transformation trend in the foreign direct investment (FDI) sector in Vietnam, Mr. Truong Bui, General Director of Roland Berger Company (a German global management consultancy specializing in transformation, innovation in all industries and performance improvement) said that the Vietnamese Government is promoting renewable energy through direct power purchase agreements (DPPA). This is an important step towards a competitive electricity market. This allows manufacturers to choose green energy suppliers and meet the growing global demand for sustainability. In addition, FDI enterprises are embracing the digitalization trend, integrating advanced technologies (such as AI and automation) to improve efficiency.

Vietnam's dual transformation strategy will be a new driving force for sustainable socio-economic growth. (Photo: Vietnam+)

“Leading FDI companies like Samsung are testament to this dual transformation, combining renewable energy with digital transformation. These efforts align with Vietnam’s economic goals, positioning the country as a leading destination for FDI focused on sustainability and innovation,” said Mr. Truong.

According to Mr. Truong, Vietnam’s dual transformation strategy will be a new driving force for sustainable socio-economic growth. The green transformation will minimize the environmental impact of industrialization, ensure long-term sustainability and comply with global environmental standards, while the digital transformation will promote innovation, improve operational efficiency and open up new market opportunities.

“By integrating these dual priorities, Vietnam strengthens its position as a preferred destination for high-quality FDI, demonstrating a clear commitment to sustainable and technology-driven economic development. This strategic approach will also help Vietnam move up the global value chain, further strengthening its competitive advantage in the international market,” said Mr. Truong.

To attract FDI, Mr. Truong recommended that Vietnam encourage green investment, strengthen digital infrastructure, streamline the legal framework, promote public-private partnerships, and focus on skills development./.

(Vietnam+)