PANO – Vietnam is now heading for sustainable development under recent lines of the Government. One of the important ways to reach the target is do develop “green business”, which in fact is operating in several developed economies around the world. According to Nguyen My Lan, Chairwoman of GE Vietnam, green business is a must in the long run development for individual enterprises and the whole nation and it would bring potential benefits for businesses and the economy.

Vietnam plays an increasingly important role in the Asian and global economy and is proving to be an attractive destination for foreign companies. Even during the global economic crisis Vietnam demonstrated its ability to manage its economy and recover rapidly in comparison with other peers in South East Asia. Now Vietnam is poised for the next stage of development and growth. How it manages that growth will be another important indicator of the long sustainability of the Vietnamese economy.

The COP15 discussions at the end of last year put into sharp focus the challenges that we face as an international economy in delivering growth while at the same time address the environmental challenges that we and future generations will face. Achieving growth is a social and economic imperative but it shouldn’t be done without a focus on the long term competitiveness and long term sustainability of the planet. So that is the challenge for both Government and policy makers but equally for business.

Vietnam is evaluated as one of the countries hardest hit by climate change and rising sea levels, hence, the Vietnamese Government is adamant that socio-economic development must go together with environmental protection. And Vietnam is actively making great efforts to turn itself into a green country in the future. 

If the challenges that Vietnam faces in the fields of energy, water supplies, transportation and construction are not addressed, future generations will suffer from their harmful effects. According to Deputy PM Hoang Trung Hai at “Green Biz 2009”, it is now essential to encourage cooperation between Vietnam and foreign partners to conduct research into the development of green technologies.

To achieve the targets, both foreign and local companies in Vietnam need to play their part and address the challenge of becoming green business by striving to minimize environmental impacts from their business activities, as well as introduce to the market the technologies, ideas and measures for doing that.

When thinking about solutions for Vietnam, we at GE are trying to work on “recycling-oriented manufacturing,” “green work-style” and “offering eco-solution using our own expertise”, but initially “minimizing our Carbon emissions in all business processes” which we also call “ enabling low carbon innovation”. Policy certainty and a refocus of funding mechanisms will be key. One example of this is the investment by GE in EU of €340 million in off-shore wind energy projects, creating up to 2,000 new jobs, made possible by the certainty created by EU and supportive national policies. As well as being the right thing to do greening our business makes sound business sense. For example, GE's China business for its ecomagniation certified products increased 50% year on year to $US656 million for the first three quarters of 2009.  In addition GE’s ecomagination initiative has resulted in savings to the bottom line of over $100million over five years from energy savings and has created approximately 50,000 jobs directly and through its supply chain.

Companies and economies that invest in innovation for green business today will emerge from the recession strongly positioned for growth. That is why we have increased our investment in R&D in new technologies over the past two years of the crisis, rather than cutting it with the total investment of €4 billion a year in this area.

GE in Vietnam hopes to help wind developers exploit and make use of abundant wind source for the cause of promoting renewable energies instead of fossil fuels. GE’s first facility in Hai Phong manufacturing components of wind turbines has set up a foundation for wind development in Vietnam. However, it mostly depends on the government investment policy to attract investors. The legal framework for wind energy development should include specific standards for wind energy development to help investors understand and have investment orientation, and financial incentives for each wind energy unit that will join the power network. The most important thing is that each wind energy policy must be stable for a long time because each wind energy project needs 10-20 years of operation to bring economic profits for investors. 

Overall, we are looking forward to the correct policy and financial frameworks to support the development of green growth. Green business need this certainty to make the investments required even in terms of duty-free imported green products, removing barriers to trade or operation, allowing government incentives to foreign companies, etc.

One such initiative that can be taken on an international level is the introduction of an Environmental Goods and Services Agreement. An Environmental Goods and Services Agreement (EGSA) and the liberalisation of green trade can serve as a catalyst for growth within the green energy space and stimulate the market. An agreement to create open trade for green products and services would represent the most significant step governments can take in the short term to bridge the gap from our present-day reliance on fossil fuels, and a future based on renewable and other clean energy. While the removal of excessive tariffs would also serve to promote growth and unleash the great potential in the sector.

Looking at the EGSA and the current socio-economic context in Vietnam, we would like to deliver a simple message that GE and the wider industry has been investing in developing technologies which can help Vietnam develop green business. We are creating partnerships here, sharing our initiatives which will help address basic community needs of sustainable environmental development by using innovative technologies to address some of the greatest challenges we face. We do that not just because we believe it’s the right thing to do but also because it makes great business sense.

Reported by Thu Nguyen