Legal policies need completion

The National Action Plan on sustainable consumption and production for the 2021-2030 period has been seen as a tool to promote sustainable production and consumption activities, applying a circular economic model through efficient exploitation and use of natural resources and energy, thereby promoting competitive advantages and minimizing negative impact on the environment.

The Ministry of Industry and Trade has coordinated with the media to promote sustainable production and consumption - photo: Thu Huong

Cu Huy Quang from the Energy Efficiency and Sustainable Development Department under the Ministry of Industry and Trade (MoIT) said at the moment the legal policies on sustainable consumption and production have been increasingly completed. However, it is necessary to increase consumers’ awareness and encourage their participation in sustainable consumption practices.

A survey conducted in April 2024 reveals that up to 70 percent of consumers worldwide, including the Vietnamese, are very concerned about the environmental impact of the products they buy, which shows that product labeling on air conditioners in Vietnam is very important and needs to be expanded to other products to gain consumer trust.

Deputy General Director of Ernst & Young Vietnam Co., Ltd. said that Vietnam has not issued green standards; therefore, banks cannot appraise applications of businesses which want to invest in this field. In addition, investment costs for green technology are also very high, and businesses also need support policies in this regard.

According to Vice Chairman and General Secretary of the Vietnam Consumer Protection Association Bui Thanh Thuy, prices of green products is something that consumers care about. Many green products are 40 percent higher than similar ordinary products, which is a big barrier for consumers to use them. He underlined that the policies of Vietnam have so far only focused on green production, and are not in favor of consumers to boost green consumption.

Consumers have actively used environmentally-friendly packagings

Green finance approach

From the perspective of financial support, Vice President of the Hanoi Association of Small and Medium Enterprises Mac Quoc Anh said that financial policies are extremely important to promote green production. Currently, Vietnam only has five production and business sectors that are entitled to tax incentives of four to five percent; therefore, financial policies need to expand to encourage businesses investment and cooperation in developing green production.

“Along with that, enforcement and monitoring mechanisms from state management agencies, and indicators need to be built to appraise green and clean production in a transparent manner,” Quoc Anh recommended.

In terms of finance, Director of IUB Capital Joint Stock Company Bui Duy Quang said that the company can provide support to businesses in various categories, of which green credit is a separate one. Currently, two units have approached IUB Capital’s green credit fund. Accordingly, enterprises must have an organizational structure and orientations for business development as well as qualified facilities for green production.

Bui Duy Quang affirmed that IUB Capital has committed to supporting enterprises in converting to green production activities with a preferential interest rate of less than three percent per year, a move in accordance with the Vietnamese Government in achieving net-zero carbon emission target by 2050.