Developing green brands vital to businesses
As Vietnam is integrating in both breadth and depth with the regional and world economy, developing a strong and sustainable green brand is essential, heard a workshop held in Ho Chi Minh City on June 27.
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| Illustrative image. (Source: VNA) |
The workshop, entitled “Brand – Soft Power for Vietnamese Enterprises”, was jointly organised by the Sai Gon Giai Phong (Liberated Saigon) newspaper and the Institute for Circular Economy Development (ICED).
Participants at the event said that Vietnamese businesses have been affected by green barriers set by international markets, but they have opportunities for development and enhance competitive advantages when producing green products. The green economy, circular economy, and low carbon economy are inevitable trends, so leading enterprises have a "pivotal" role in the industry, in coordination with the State, scientists, and international organisations, they added.
Owning a green brand means that businesses have met consumer requirements through transmitting a green image, green trust, and green satisfaction.
A Nielsen market report showed that the global market for green products is growing faster and more profitable than other products of the same type. Other reports also pointed out that the global green and sustainable technology market size is expected to expand at a compound annual growth rate (CAGR) of 22.4% from 2022 to 2030.
Le Viet Nga, Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade (MoIT), said Vietnam is among the top 10 exporting countries in the world.
In the first five months of 2024, the export turnover was estimated at 156.77 billion USD, an increase of 15.2% over the same period last year. Of the total export earnings, the domestic economic sector reached 43.69 billion USD, showing an increase of 20.5 percent, and accounting for 27.9 percent of total export turnover. The foreign-invested sector, including crude oil, hit 1138 billion USD, up 13.3% and accounting for 72.1%.
However, very few products in these sectors have been exported under their brands.
According to the MoIT, up to 70-80% of Vietnam's goods are exported due to raw materials with low added value. The lack of value-added exports is indicative of limited processing of raw materials and a shortage of Vietnamese business brands.
According to Nguyen Hong Quan, Dthe ICED’s director, solutions to develop "soft" internal resources for businesses in the context of green trade should be linked to corporate social responsibility (CSR) and environmental, social and governance (ESG), and net zero emissions in the business ecosystem. As enterprises still have many challenges in green transition such as finance, technology and institutions, it requires the efforts and determination of all parties, especially the State, he added.
Marketing Director Vuong Ngoc Dung of the Saigon Cosmetics Joint Stock Company said that by moving towards a green economy, businesses not only ensure environmental sustainability, but also create opportunities for future socio-economic development.
He went on to say that complying with green standards helps Vietnamese businesses reach developed countries such as those in Europe, North America and Japan which are markets with high demand for environmentally friendly products.
(Source: VNA)
