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renewable energy sources and new raw materials, which helps reduce operating costs.
In fact, the costs that businesses have to spend to pay taxes, fees and fines due to

environmental violations are often greater than the environmental costs. Fines for
violations of environmental protection regulations are not recognized as reasonable
expenses of the enterprise. When a business considers the environmental aspect of
economic activities, it will tend to reduce the number of resources in production.
Applying environmental accounting also changes the mindset in production and
management, businesses tend to use resources rationally, avoiding waste. In the future,
businesses in Hanoi will also have to face the requirements of the government to
establish production and business activities in compliance with environmental

protection regulations.
Implementing green accounting not only helps businesses show social
responsibility but also saves energy costs, raw material costs, and waste treatment costs,
thereby reducing the cost of products and services, and improving business efficiency.
In the current context, the green transformation in production also helps businesses
obtain the necessary certificates, opening up opportunities for businesses to enter

fastidious markets such as the US and EU.
4.2.2. Disadvantages
Financial resources
Green transformation requires businesses to change technology, which means
companies must have the resources to invest in modern technology and equipment. The
Vietnamese Government has approved the Circular Economy Development Project in
Vietnam to increase awareness and investment interest of domestic and foreign

businesses to promote the application of the circular economy model. To become
"green", economic sectors aim to reduce the intensity of greenhouse gas emissions per
GDP by at least 15% by 2030 compared to 2014, aiming to bring net emissions to zero
by 2050. From the Government's plans and goals, many Vietnamese businesses have
gradually transformed and rebuilt their business models toward circularity and
sustainable development. According to a survey about the Readiness of ESG Practices

in Vietnam by the PwCVietnam, most Vietnamese enterprises tend to transform towards
sustainable development, among more than 50% of enterprises face difficulties when
transforming the model towards circularity, nearly 48% of enterprises said that they are
facing financial difficulties (The Readiness of ESG Practices in Vietnam, 2023). The
Vietnamese government has taken measures to promote green transformation, including
creating green finance for sustainable development. However, most businesses in Hanoi
are small and medium enterprises with limited financial capacity, capital size, and
management level. Many businesses do not have audited financial statements or have

financial problems. mortgaged assets make it difficult to access medium and long-term
loans from financial institutions. Applying green accounting practices requires
businesses to have financial resources to improve production models and train qualified
human resources.
Understanding and Awareness

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