HCM City (VNS/VNA) - The green economy and sustainabledevelopment are inescapable global trends, and businesses need to embrace themto meet the increasing demands in the domestic market and mounting pressurefrom foreign markets, heard the recent “Green Trade Forum” in Ho Chi Minh City.

Vice Chairman of the city People's Committee Vo Van Hoanacknowledged that Vietnam has signed numerous free trade agreements, includingnew-generation pacts, which present significant opportunities for local firmsto expand their exports.

However, these FTAs also come with stringent environmental andsustainable development clauses, he pointed out.

“Green growth and sustainable economic development have becomeinevitable trends worldwide. Investors coming to HCM City always inquire aboutthe availability of renewable energy and green materials.Investors already in the city also want to become greener. Since a failureto meet green criteria can hinder their products from being exported toEuropean markets and other developed countries. Therefore, green transformationhas become an urgent issue.”

Consumers in both local and international markets have become moreenvironmentally conscious, he said.

To cater to them, the creation of an eco-system comprising greenmaterials, green finance, green energy, and supportive policy systems and legalframeworks is necessary, he told the forum held by Sai Gon Giai Phongnewspaper, Saigon Co.op and the HCM City Union of Business Associations.

Forums like the Green Trade Forum play a crucial role in raisingawareness among consumers, producers, and society, ultimately leading to theformulation of policies conducive to a green economy.

Vietnam is committed to achieving net-zero emissions by 2050,necessitating increased awareness and contributions from the businesscommunity.

Prof. Dr. Nguyen Hong Quan, Director of the Institute for CircularEconomy Development at the Vietnam National University in HCM City, cited asurvey by McKinsey revealing that 63% of consumers consider brand sustainabilitywhen making purchase decisions.

Embracing environmental, social and governance (ESG) standardswould provide companies with significant development opportunities, he added.

Pham Van Truong, Deputy Editor-in-Chief of Sai Gon Giai Phongnewspaper, said developing a green economy and circular economy is crucial notonly for businesses but also for the entire country.

But the task is challenging due to limited resources possessed byVietnamese enterprises, 99% of which are small and medium-sized businesses, hesaid.

Nguyen Ngoc Hoa, Chairman of the HCM City Union of BusinessAssociations, commended HCM City's long-standing awareness of the importance ofgreen growth and its initiatives to promote it like the Green EnterprisesAwards, which honour businesses compliant with waste treatment regulations andproduce environmentally friendly products.

Under the programme, the organisers, HUBA and Sai Gon Giai Phongnewspaper, will also provide firms with information about green technicalbarriers to trade in the domestic and export markets, and help them find themeans to achieve green development.

Tran Lam Hong, deputy general director of Saigon Co.op, said theretailer gives priority to buying products from firms that areenvironmentally conscious.

The country’s leading consumer goods retailer and Sai Gon Giai Phongnewspaper have organised the annual Green Consumption Campaign for 14years to promote environment-friendly products.

Saigon Co.op’s distribution systems also hold theannual Green Consumption Month in June with promotionson environment-friendly products to encourage the use ofgreen products and those made by companies that do well in environmentalprotection, thereby creating environment-friendly consumption habits./.