How to balance profit and green conversion goals?

	Prioritize financial resources for green growth
	Seize the opportunity in the trend of "green competition"
	Vietnam eyes transition to green production for sustainable value

Foreign tourists experience green tourism products in Quang Nam. Source: Internet.

To support this, both financial and market-supportive government policies are needed. Besides, enterprises also need to actively allocate resources appropriately to achieve both immediate and long-term effectiveness.

Create thrust from the market

The environment is increasingly becoming a major concern of consumers, thereby promoting enterprises to produce green and environmentally friendly products.

However, the problem of profit in the transition period is a big challenge for businesses when a series of costs increase. To support this, the Government has launched many policies to promote green consumption in order to protect the environment and conserve natural resources. Including an eco-labeling program for products.

Up to now, in the domestic green product certification system, there are many categories such as food, beverages, textiles, construction materials, household appliances, lighting, automobiles and many other items.

According to regulations, products and services with green labels will receive many incentives in terms of capital, taxes, fees, land support, etc. These incentives will stimulate enterprises to actively produce eco-friendly products to meet the criteria of being labeled green.

Assoc. Dr. Tran Dinh Thien, an economic expert, considers the transformation of the economy from brown to green a very difficult process.

"In order to do this, it will definitely need the support of the State, especially institutional support," said Thien.

However, according to Thien, it is necessary to open up this issue more widely, in addition to financial support such as taxes and interest rates, it is necessary to consider more about the market aspect to accelerate the green transition.

Accordingly, the State can also support by pledging to be the buyer of green-labeled products to promote manufacturers. According to Thien, this is a very meaningful and highly encouraging solution for businesses and manufacturers. In addition, consumers of green-labeled products should also be encouraged and this also benefits the producer when consuming the product. At that time, the benefits of enterprises are very clear, not only input benefits.

“The benefit of the green economy is the development benefit, not the monetary benefit of enterprises. Therefore, it is necessary to consider a preferential approach to the market. There should be a green procurement law in order for the market to benefit, thereby stimulating producers," said Thien.

In addition, it is also necessary to study more about the State's support policies for banks in providing financial support for green production. Accordingly, if lending to the green economy is difficult, the State can provide additional support to the mechanism, helping the financial system ensure that enterprises producing green products can receive real financial benefits. Thereby promoting the green economy in terms of consumption more clearly.

Resource balance

Quang Nam is one of the localities orienting towards sustainable tourism development. Phan Xuan Thanh, Chairman of Quang Nam Tourism Association, said tourism can lead to green growth and a circular economy because it is a combination of many other industries. “Even if the hotel is green, the car is not green, the people's lifestyle is not green, the destination cannot be green. So there needs to be synchronization," said Thanh.

According to Thanh, Quang Nam has the resources and opportunities to create a green tourism market. The market also has a demand for green tourism and is becoming a common trend in many countries. However, creating synchronization and companionship of the whole society is very difficult. Because the human culture of a green lifestyle is very difficult to change. Thanh pointed out that: “Many people only think about immediate benefits rather than long-term, when analyzing in detail, they understand, but whether they act or not is another matter. Therefore, it is necessary to balance resources and allocate resources appropriately for both the short-term and the long-term.”

In the field of real estate, Vo Van Khang, Deputy General Director of Hung Thinh Corporation, also considers green living not only a trend but a real need, especially after the Covid-19 pandemic. This market has its own customers and segments. Realizing that trend, Hung Thinh has brought products towards a green, environmentally friendly life, while sustainable development is one of the criteria that has been focused on.

Accordingly, Hung Thinh's projects have a landscape environment close to nature. In the past two years, this enterprise has been looking for many companies capable of implementing high-quality, low-cost landscapes to carry out M&A or sign strategic cooperation to ensure both quality and cost.

Besides, the criteria of saving energy, waste, using natural light, solar energy, wind energy, air convection are also taken into account during the design and construction process.