The Roadmap to Green Transition: Why Businesses Must Act Now

In the context of climate change, energy crises, and increasing pressure from global integration, the green transition has become a central concept in every development strategy. This is not only an environmental issue but also the pathway for nations and businesses to strengthen competitiveness, attract investment, and build a sustainable future. But what does green transition truly mean, and what are the key factors for success?

The article below on TA Vital provides a comprehensive overview—from concepts to benefits, challenges, and practical solutions for implementing a successful green transition.

I. What is Green Transition?

When people mention the term green transition, many immediately think of replacing fossil fuels with renewable energy. However, that is only part of the story. In essence, green transition is a holistic transformation from a high-emission, resource-intensive growth model to one that is energy-efficient, low-carbon, and based on clean technologies and the circular economy. This journey “greens” all aspects of production, management, distribution, and consumption, while reshaping policies and infrastructure to align sustainability with national development.

II. Why Do We Need a Green Transition?

There are several reasons why the green transition has become an urgent strategy:

1. Climate urgency – Vietnam is among the top five countries most affected by sea-level rise and extreme weather, especially in the Mekong Delta.
2. Global integration – The EU’s Carbon Border Adjustment Mechanism (CBAM) requires exporters to prove their products are made sustainably. Without green transition, key industries such as textiles, footwear, and steel face strict trade barriers.
3. Long-term benefits – Businesses adopting green transition reduce operating costs, enhance brand reputation, and gain easier access to international investment capital.

III. Benefits of Green Transition

The advantages can be seen at three levels:

• For businesses: Energy-efficient technology can cut production costs by 20–30%. Green certifications also unlock entry into demanding markets like the EU and the US.
• For nations: Reduces reliance on fossil fuels, ensures long-term energy security, and strengthens global credibility by fulfilling COP26 commitments toward net-zero by 2050.
• For society: Cleaner air, lower healthcare costs from pollution, and the creation of green jobs in renewable energy and clean technology.

Clearly, green transition and sustainable development are inseparable goals—two sides of the same journey.

IV. Challenges to Green Transition

Despite its benefits, green transition faces major barriers in Vietnam:

• High initial costs for renewable energy projects, modern production lines, and waste treatment technologies.
• Incomplete infrastructure, such as smart grids, recycling systems, and waste management.
• Limited awareness, as some businesses still view green transition as a slogan rather than a long-term strategy.
• Weak legal framework—green finance, preferential credit, and carbon markets are still in the trial phase, offering insufficient incentives for widespread adoption.

V. Solutions to Accelerate the Green Transition

To achieve meaningful change, both government and businesses must act:

• Government actions: Finalize legal frameworks, build transparent carbon markets, and promote green finance via instruments like green bonds and tax incentives.
• Business strategies: Adopt ESG standards, implement green transition strategies, and build sustainable supply chains.
• Digital synergy: Combine digital transformation with green transition to monitor emissions in real time and optimize operations.
• International cooperation: Learn from leading countries (EU, Japan, South Korea), while attracting capital and advanced technologies.

VI. Green Transition in Practice

Many Vietnamese companies have already pioneered this journey:

• VinFast – investing in electric vehicles and green mobility ecosystems.
• Vinamilk – implementing eco-farms that recycle waste into organic fertilizers.
• Sabeco – upgrading production lines to save energy and reduce CO₂ emissions.

Globally, the EU Green Deal targets a 55% emission reduction by 2030; Japan advances hydrogen energy and fuel cells; South Korea pursues the K-Green New Deal to accelerate sustainable production. These examples show that green transition is not theory—it is happening now.

VII. Conclusion

Understanding what green transition is is just the beginning—what matters most is action.

• For nations, it is the only path to sustainable growth and global competitiveness.
• For businesses, it is the key to survival and expansion in an increasingly demanding global market.
• For society, it promises cleaner environments, healthier lives, and better opportunities.

There is no more time to wait. Each step—saving energy, choosing green products, investing in clean technologies, and building sustainable supply chains—contributes to a greener future.

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