HANOI: Many Vietnamese micro, small and medium enterprises (MSMEs) have not prioritised the transition to green development due to many limitations such as human resources and access to capital, according to experts.

       Hoang Minh Chien, deputy director of the Vietnam Trade Promotion Agency at the Industry and Trade Ministry, said climate change and environmental pollution have made businesses worldwide shifting to a more sustainable development model.

       He said Vietnamese businesses should not go out of this trend, noting that it is an opportunity for development but also a challenge.

       According to a survey by the Planning and Investment Ministry, 98% of Vietnam’s MSMEs have limitations in carrying out changes in their business models to a more sustainable manner.

       Therefore, the majority of small and medium enterprises has just been studying the green model but stopped short of taking any actions towards sustainable development.

       The survey also showed that the pioneering enterprises in green development are foreign direct invested firms, public companies and exporting enterprises.

       They are enterprises having resources, as well as grasping the trends and requirements of the foreign markets.

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       There are many barriers to the businesses in carrying out the green development, especially among MSMEs.

       About 70% of the businesses have not been fully aware of green development and the benefits of pursuing a circular economy.

       They also lack knowledge about standards of environment, social responsibility and corporate governance, according to Chien.

       Besides that, they face challenges in terms of capital resources which prevent them from upgrading their old production technology. — Viet Nam News/ANN