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digital and green technologies. The government should consider expanding financial
support through grants, low-interest loans, or tax incentives specifically aimed at

encouraging SMEs to invest in dual transformation. The establishment of green and
digital transformation funds that provide direct financial support to businesses can help
alleviate the high upfront costs associated with implementing these technologies
(Nguyen et al., 2021).
Public-private partnerships (PPPs) can play a crucial role in promoting dual
transformation by facilitating collaboration between the government, private sector, and
educational institutions. By forming PPPs, the government can work with technology
firms, financial institutions, and energy companies to develop and scale up digital and

green solutions. These partnerships can also foster innovation by funding joint R&D
initiatives focused on clean technologies, smart manufacturing, and energy efficiency
(Nguyen & Nguyen, 2021).
The regulatory environment needs to be continuously adapted to encourage
businesses to adopt sustainable practices while leveraging digital innovation. Vietnam’s
government should ensure that its environmental regulations, such as the Law on

Environmental Protection, are regularly updated to reflect the latest technological
advancements and sustainability goals. In parallel, clear guidelines on data privacy,
cybersecurity, and intellectual property protection must be established to foster trust and
ensure that businesses feel secure in their digital transformation efforts (Vietnam
National Assembly, 2020).
Furthermore, adopting incentive-based regulatory frameworks that reward
companies for meeting specific sustainability and digital innovation targets (e.g., carbon

credits, tax benefits) can motivate businesses to prioritize dual transformation.
4.2. Investing in infrastructure development
One of the major challenges to digital transformation in Vietnam is the unequal
distribution of digital infrastructure between urban and rural areas. To promote the
widespread adoption of digital technologies, the government should prioritize
investments in digital infrastructure, including expanding broadband internet access, 5G

networks, and cloud computing facilities to underserved regions (World Bank, 2021).
This expansion will ensure that businesses in rural and remote areas - especially those in
agriculture and manufacturing-can participate in digital transformation efforts, leading
to more inclusive economic growth and sustainable practices.
The availability of affordable and reliable renewable energy sources is critical to
enabling green transformation. Vietnam should continue to invest in the development of
its renewable energy infrastructure, particularly solar, wind, and hydroelectric power.
Policies that encourage the installation of renewable energy systems, such as solar

panels on factories and office buildings, can help businesses transition away from fossil
fuels and reduce their environmental impact (Vietnam Ministry of Planning and
Investment, 2021).

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