Digital, green transformation: A new growth driver for enterprises

Digital transformation combined with green transition has been identified as a key driver for business development, particularly as Vietnam’s agricultural sector faces mounting pressure from climate change and stricter global market requirements.

Digital transformation and green transition have been identified as key drivers for business development in the new era. (Illustrative photo: VNA)
Digital transformation and green transition have been identified as key drivers for business development in the new era. (Illustrative photo: VNA)

Hanoi (VNA) – Digital transformation combined with green transition has been identified as a key driver for business development, particularly as Vietnam’s agricultural sector faces mounting pressure from climate change and stricter global market requirements.

In this context, integrating digital technologies with sustainabile practices has emerged as an inevitable pathway. Notably, the Politburo’s Resolution No. 57-NQ/TW sets breakthrough orientations in science – technology development, innovation, and national digital transformation, opening up new development space for enterprises.

The convergence of data, digital tools, and emissions-reduction solutions is helping shape more sustainable production models that are resource-efficient and ensure greater supply chain transparency. This is also seen as a core driver enabling Vietnamese enterprises to enhance competitiveness, adapt more flexibly, and gradually strengthen their position and brand in the global green agriculture landscape.

Vietnam at an early stage of green transition

Associate Professor Dr Pham Anh Tuan, Director of the Vietnam Institute of Agricultural Engineering and Post-Harvest Technology, noted that under the Prime Minister’s Decision No. 749/QD-TTg that approves the National Digital Transformation Programme by 2025, with a vision to 2030, agriculture is identified as one of the eight priority sectors. However, Vietnam remains at an early stage of implementation.

He cited statistics as showing that around 30% of agricultural enterprises have adopted digital technologies, mainly in data entry, traceability, and sales management. More advanced applications such as the Internet of Things (IoT) and unmanned aerial vehicles, are limited to large-scale farms and businesses. Meanwhile, the adoption of green technologies to develop smart, organic, and circular agriculture and low-emission practices, is limited. The integration of big data, artificial intelligence (AI), and full automation is still lacking, and technology application remains fragmented.

Offering a more optimistic assessment, Master Pham Thi Truc Hoa Quynh of the National Institute for Economics and Finance under the Ministry of Finance noted that although digital transformation and green transition have gained prominence in Vietnam since around 2021, especially following its commitments to net-zero emissions at the 26th United Nations Climate Change Conference (COP26), the country has achieved notable initial results. Awareness and digital capabilities among enterprises have improved significantly nationwide.

Policies supporting digital transformation are being further refined, while programmes assisting businesses in adopting digital solutions are being expanded and diversified. Vietnamese firms are gradually applying environmental standards and preparing to adapt to mechanisms such as carbon taxation and the Carbon Border Adjustment Mechanism (CBAM). Besides, a carbon market is entering a pilot phase.

However, Quynh pointed out that challenges remain as digital and green transformation efforts are often fragmented rather than integrated, hampering the full capitalisation of their potential to increase productivity and efficiency. Institutional frameworks and ecosystem for digital – green transformation remain incomplete, and many enterprises have yet to identify such transformation as a long-term strategic priority due to limited awareness and vision.

Financial constraints also pose a significant barrier, including limited access to investment capital and high transformation costs. In addition, Vietnam still lacks integrated models that combine digital technologies with green solutions in production and consumption, leaving many businesses uncertain about implementation, she noted.

First movers will gain competitive advantage

Quynh emphasised that digital – green transformation is an inevitable trend in a rapidly evolving global economy shaped by technological advances and sustainability demand. These dual transitions not only help enhance competitiveness but also contribute to environmental protection and sustainable development.

To advance this process in the 2026–2030 period, Vietnamese enterprises, particularly those in agriculture, are encouraged to integrate sustainability into their digitalisation strategies to seize new business opportunities and deliver social and environmental benefits.

Quynh proposed several solutions, including building a comprehensive legal and institutional framework for digital – green transformation, raising awareness, and expanding support programmes for businesses. Promoting green finance and sustainable financial instruments are also workable solutions, as is developing a carbon market, including establishing a carbon trading exchange with a view to full operation by 2029.

Further recommendations highlight the need to develop digital – green infrastructure, including national data systems, cloud computing, AI, and renewable energy grids, alongside building a skilled workforce.

Similarly, Tuan suggested establishing an integrated policy framework for digital – green transformation in agriculture and introducing preferential green credit mechanisms such as low-interest loans for enterprises investing in digital and low-emission technologies, along with circular agriculture and deep processing projects.

He also proposed launching programmes such as “Digital Farmers – Green Farmers” to enhance digital skills and sustainability awareness; promoting linkages among state agencies, research institutes, enterprises, and farmers under value chains; developing agricultural innovation clusters; piloting new technologies; incubating agri-startups; and promoting technology transfer and international cooperation.

Delivering a broader message, Professor Dr. Mac Quoc Anh, Vice Chairman and Secretary General of the Hanoi Association of Small and Medium Enterprises and Director of the Institute of Economics and Enterprise Development, stressed that the dual transformation is an inevitable trend of the era, and enterprises that take the lead will gain a clear competitive edge.

To ensure implementation, he stressed the importance of early completion of institutional frameworks and green finance mechanisms, along with continued support for enterprises, workforce training, and the development of robust digital infrastructure./.

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