Page 200 - Ebook HTKH 2024

- One of the primary barriers to green transformation is the high cost of adopting
environmentally friendly technologies. For instance, renewable energy systems, waste

management solutions, and cleaner production technologies often require significant
upfront investment, which can be prohibitive for many businesses, particularly small
and medium-sized enterprises (SMEs) (Nguyen et al., 2021). SMEs, which make up a
large portion of the Vietnamese economy, often lack the financial resources to invest in
these green technologies, limiting their ability to fully embrace sustainability initiatives.
Moreover, while adopting green technologies may lead to long-term savings through
reduced energy consumption and waste, the immediate costs are often perceived as too
high for businesses to bear, especially in the absence of financial incentives or subsidies

from the government.
- Many businesses, particularly SMEs, are unaware of the long-term benefits of
green transformation or lack the knowledge required to implement sustainable
practices. A study by Pham et al. (2022) revealed that a significant number of SMEs in
Vietnam still view sustainability as an added cost rather than a business opportunity.
This perception is often exacerbated by a lack of information about the potential cost

savings and efficiency gains that can result from green practices, such as energy
efficiency and waste reduction. The limited awareness of sustainability concepts also
extends to consumers, who may not fully understand the value of green products and
services. This lack of consumer education poses a challenge for businesses looking to
market their sustainable offerings effectively (Nguyen & Pham, 2020).
- Green transformation often requires access to advanced technologies and
resources, which may be unavailable or unaffordable for many Vietnamese businesses.

For example, industries that rely heavily on traditional production methods, such as
textiles and agriculture, may find it difficult to transition to cleaner and more efficient
processes due to a lack of expertise, resources, and technological support (Doan &
Vuong, 2019). The absence of skilled professionals with expertise in sustainability
management and green technology adoption further exacerbates this issue. Additionally,
while the government has made efforts to promote renewable energy, the energy

infrastructure in Vietnam remains heavily reliant on fossil fuels, particularly coal, which
limits the ability of businesses to transition to cleaner energy sources (World Bank,
2021). Until Vietnam’s renewable energy sector becomes more developed and
accessible, many enterprises will continue to face constraints in adopting green
practices.
3.2.3. Opportunities in green transformation
Despite these challenges, there are several opportunities for Vietnamese
businesses to embrace green transformation, which can lead to long-term growth and

competitiveness.
- Green transformation can lead to significant cost savings for businesses,
particularly through improved resource efficiency and energy conservation. For
instance, companies that adopt energy-efficient technologies and processes can reduce
their operational costs, while businesses that implement waste reduction practices can

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