Setting course for green growth
Viet Nam has identified green growth as a core development orientation, reflected in a series of policies implemented over more than a decade. According to the Ministry of Science and Technology, among more than 4,000 innovative start-ups nationwide, around 200–300 are pursuing renewable energy, environmental technology, sustainable agriculture or the circular economy.
Pham Hong Quat, Director General of the National Agency for Startups and Technology Entrepreneurship under the Ministry of Science and Technology, noted that despite ongoing challenges in accessing long-term capital, the demand to transform production models in line with global green standards is opening up new growth opportunities. Many start-ups have successfully raised between 1 million USD and 5 million USD for projects in green energy, waste recycling and green transport. At a time when climate change is causing losses equivalent to around 3.2 per cent of GDP each year, green transformation must be regarded as a development investment, particularly in high-emission sectors such as agriculture, energy, processing industries and construction.
Globally, many countries are demonstrating the effectiveness of green technology applications. Kenya is using AI to balance power grids and provide disaster warnings, while in the Middle East, the United Arab Emirates (UAE) has chosen innovation as a sustainable pathway in response to harsh climatic challenges.
UAE Ambassador to Viet Nam Bader Almatrooshi emphasised that the UAE is promoting smart agriculture models, hydroponics and related solutions. These experiences show that leveraging AI can help countries shorten their journey towards sustainable development. What successful nations have in common is placing technology at the centre of their green strategies.
Denmark, one of the world’s leading countries in green growth, stands as proof that technological innovation can deliver growth alongside emissions reduction. Viet Nam and Denmark established a Green Strategic Partnership in 2011. Many international corporations also regard Viet Nam as an attractive destination for green investment. The 1.3 billion-USD carbon-neutral factory project by the LEGO Group in Binh Duong is evidence of the country’s potential to integrate more deeply into global green supply chains.
A critical lever
Viet Nam is accelerating green transformation by simplifying administrative procedures, reducing investment costs and encouraging the use of clean energy. In this context, public–private partnerships (PPP) have become a crucial lever. The Partnering for Green Growth and the Global Goals 2030 (P4G) Summit is a notable example, supporting early-stage start-ups through technical and financial advice and partner connections. Viet Nam is an active member of P4G, with 12 cooperative projects implemented to date in renewable energy, the circular economy and environmental protection, helping green businesses access international resources.
However, the gap between potential and reality remains wide. Green technologies are currently concentrated mainly in sectors that are easier to deploy, while heavy industry—the largest source of emissions—has only about 11 per cent of its emissions treated using clean technologies. This calls for a stronger combination of innovation, green investment and multilateral cooperation models. This gap also explains why Viet Nam needs greater access to highly applicable green technology solutions from more advanced countries.
Many international partners are accompanying Viet Nam with practical technology solutions. Japan has introduced waste-to-energy technologies and Johkasou wastewater treatment systems suited to expanding urban areas and regions lacking centralised drainage infrastructure. In Viet Nam, waste-to-energy projects in Bac Ninh and Johkasou systems in Ha Long Bay have demonstrated the feasibility of PPP models in the environmental sector. Japan is also promoting technologies for recycling solar panels, plastics and metals from electronic waste; meanwhile, the AI-integrated GOSAT satellite helps enhance transparency of emissions data in line with the Paris Agreement.
The United Nations Industrial Development Organisation (UNIDO) has warned that sustainable development cannot be achieved while communities continue to suffer from floods, droughts, sea-level rise and biodiversity loss. UNIDO is implementing a programme worth around 13 million USD in Viet Nam, focusing on green industry, sustainable supply chains and clean technologies. At the same time, the AIM Global – AI Alliance for Industry and Manufacturing initiative is expanding international cooperation on AI, knowledge sharing and technology transfer, providing additional momentum for green transformation.
Domestically, the National Agency for Startups and Technology Entrepreneurship has proposed developing a “green start-up map”, impact measurement frameworks and financial support mechanisms. The Ministry of Science and Technology is studying tools such as green venture capital funds, green start-up exchanges, tax incentives and reforms to lending procedures. Experts from the Global Green Growth Institute (GGGI) believe that Viet Nam should prioritise the development of renewable energy infrastructure, energy-efficient data centres, AI workforce training and data governance frameworks—foundational elements for a green technology ecosystem. Green technologies will only be truly effective when scaled up in major emission sectors, accompanied by AI governance aligned with digital ethics. However, for these solutions to deliver results, the ecosystem requires a coherent structure linking institutions, technology and markets, rather than fragmented, project-based efforts.
Innovation, start-ups and cooperation are the key to addressing environmental challenges while promoting the circular economy.
Hoang Minh,
Deputy Minister of Science and Technology
Alongside cooperative models, Viet Nam needs a comprehensive policy framework to foster green start-ups. Developing green supply chain models and strengthening cooperation will help Vietnamese enterprises confidently expand into international markets.
Deputy Minister of Science and Technology Hoang Minh reaffirmed: “Innovation, start-ups and cooperation are the key to addressing environmental challenges while promoting the circular economy.” As technology becomes the key to unlocking the door to Net Zero, Viet Nam must not only invest but also take the lead in how green solutions are applied, innovated and scaled up.
