Financing challenges for industrial manufacturers in the green transition

Green transformation in industrial production has become an irreversible global trend, and Vietnam is no exception. However, the process is presenting significant challenges, especially for small and medium-sized enterprises. GREEN FINANCING REMAINS LIMITED AND MOST NEW CAPITAL FOCUSES ON RENEWABLE ENERGY At the conference “Industry Talk: Green transformation in industrial production in the face of new challenges,” held on the morning of May 12, Mr. Pham Hoai Trung, Vice Chairman, Head of ESG/NETZERO and Science and Technology at the Vietnam Green Transformation Association, emphasized that the carbon neutral pathway is not only about reporting emissions but also linked to carbon credits markets and the international competitiveness of Vietnamese firms. In particular, when the carbon credit trading mechanism is implemented, enterprises will need to open accounts to trade credits similar to stock trading. This requires firms to prepare thoroughly in financial and technological terms. [Image captions and related visuals omitted for brevity.] However, one of the biggest current challenges is capital and green credit mechanisms for green transformation. Mr. Trung pointed out that green credit remains limited and most new financing is still concentrated in renewable energy. Green transformation projects for manufacturing enterprises have not yet found suitable loan mechanisms. "This makes many firms struggle to access funds to invest in green technologies and processes," he said. Of course, not every small enterprise faces disadvantages. Mr. Trung noted that small firms typically have simpler management structures, fewer factories, and fewer operating layers, making data control and implementation of changes easier than for large conglomerates. TURNING CHALLENGES INTO OPPORTUNITIES AND COMPETITIVE ADVANTAGES IN THE GREEN PLAY Speaking on this issue, Mr. Nguyen Dinh Quyền, Founder of ESG Education & Business and ESG Investment Fund, argued that firms that start green transition earlier will gain advantages. To implement green transformation effectively, a company must quickly build the “current state picture,” i.e., determine its emission level and its readiness against ESG standards. With baseline data in hand, firms can then develop a strategy to reduce emissions and identify the gap between the current state and long-term targets. In practice, many large groups have already pledged Net Zero by 2050 or carbon neutrality by 2040, and to meet these commitments, firms must establish a concrete roadmap and clearly define each stage of emission reductions. "The earlier a company starts the green transition, the greater the future advantage," said Mr. Nguyen Dinh Quyền. He cited an example of an energy efficiency project at a manufacturing plant that could reduce about 4,000 tons of emissions per year. Notably, the project’s emission reductions cost at “negative USD 45 per ton of carbon,” meaning the firm saves costs through optimized operations after technology and process upgrades. At the conference, many experts acknowledged that today, firms can access technology trends, green production solutions, and new market demands more quickly, with greater connectivity among businesses, technology suppliers, and professional organizations. According to experts, green transformation is not only a challenge but also an opportunity for Vietnamese enterprises to enhance competitiveness, expand markets, and achieve sustainable development. To succeed, firms need a clear strategy, thorough preparation, and support from appropriate policies. In the context of globalization and climate change, green transformation is not a choice but an inevitable path to sustainable development. The Industry Talk conference: Green transformation in industrial production in the face of new challenges, also serves as the opening activity for the International Exhibition on specialized coatings, paper, rubber, plastics - chemicals in Vietnam, scheduled for June 10–12, 2026 in Ho Chi Minh City. This is a good opportunity for businesses to explore energy-saving solutions, emissions reduction, and adaptation to new international market requirements. OPPORTUNITIES TO ATTRACT GREEN FINANCE FROM INTERNATIONAL EXCHANGES RESULTING FROM EMISSION REDUCTIONS AND CARBON CREDITS By 19/5, new regulations stipulate that international exchanges involving greenhouse gas emission reductions and carbon credits will operate under three specific mechanisms, defining transfer ratios as well. This is expected to open opportunities for international carbon credit transfers from projects and attract finance and technology for green transformation and emissions reductions. More sections and linked content follow in the original article.