Hanoi (VNA) – Green production and artificial intelligence (AI) are creating a “dual transformation” – combining green and digital transitions – which forces Vietnamese manufacturers to seek effective ways to maintain their place in global supply chains.
Amid geopolitical uncertainty and shifting global trade dynamics, international markets are increasingly governed by non-tariff requirements related to environmental protection, carbon emissions, traceability and data transparency. New-generation trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), together with the European Green Deal (EGD) and the Carbon Border Adjustment Mechanism (CBAM), have made sustainability standards a prerequisite rather than an option for exporters.
As one of Vietnam’s key economic growth drivers, the manufacturing and processing industry now faces mounting pressure to move beyond a development model based on inexpensive labour, intensive energy consumption and high emissions.
At various forums, Minister of Industry and Trade Le Manh Hung has consistently identified dual transformation as a strategic priority. He has stressed the need to accelerate green transition in tandem with safeguarding national energy security, and at the same time advance digital transformation as a major breakthrough. Although the sector has maintained average annual growth of 6.9% in recent years, sustaining its leading role will require a more favourable investment climate, the removal of institutional bottlenecks and stronger support for industrial modernisation, autonomy and deeper global integration, Hung stated.
Investment in green industry and digital technology has therefore become an economic necessity rather than a corporate social responsibility initiative. For Vietnam, strengthening competitiveness in the Net Zero era will depend on its ability to adopt cleaner production methods and embrace advanced digital technologies.
AI and digitalisation are increasingly becoming the most effective tools for achieving green manufacturing goals. Across industrial parks, AI and Internet of Things (IoT) technologies are helping optimise production processes through automated waste sorting, real-time emissions monitoring and AI-powered demand forecasting that reduces inventories and material waste. These applications are laying the foundation for smart factories where economic efficiency goes hand in hand with environmental sustainability.
According to Assoc. Prof. Dr. Nguyen Hong Son, Vietnam’s manufacturing sector still relies heavily on manual operations, while the adoption of advanced technologies such as robotics and AI remains limited. To accelerate industrialisation and modernisation, businesses need to move beyond assembly and processing toward producing higher-value “Make in Vietnam” products. Mastering smart manufacturing technologies, expanding research and development (R&D), and integrating AI into production will be essential to improving operational efficiency and reshaping digital technologies.
Beyond improving productivity, AI is also enabling enterprises to enhance transparency across supply chains by providing comprehensive product traceability, now a core requirement of international buyers.
Small- and medium-sized enterprises (SMEs), which account for more than 97% of businesses in Vietnam, will play a critical role in this transition. Although high initial investment costs and shortages of skilled workers remain major obstacles, competitive pressure is encouraging many firms to embrace change. Export-oriented industries such as agricultural processing, food production, textiles and wood processing have been among the most proactive in adopting greener and smarter production practices.
Drawing on Germany’s experience, Dennis Quennet, Director for Sustainable Economic Development at the German Agency for International Cooperation (GIZ), said SMEs are the backbone of the economy and often lead innovation and dual transformation efforts. Integrating digital technologies with green development enables businesses to reduce costs, improve resource efficiency and strengthen business models, creating opportunities to expand into new markets and achieve long-term growth.
According to experts, for Vietnam’s manufacturing sector, dual transformation is not a final destination but an ongoing journey toward higher value-added production, greater technological autonomy and sustainable integration into the global economy./.
VNA
