MANY PROPOSALS TO SUPPORT BUSINESSES IN GREEN TRANSITION AT HAWAEXPO 2026

Within the framework of HawaExpo 2026, the forum titled “Green Transition: A Prerequisite for Vietnam’s Wood Industry to Break Through in the Global Value Chain”, held on the afternoon of March 6, attracted the participation of sustainability experts, international certification organizations, and representatives from industry associations.

Discussions at the forum focused on the latest developments in global markets while proposing practical solutions to support businesses in proactively implementing green transformation strategies. As global supply chains undergo major restructuring, requirements related to ESG, traceability, carbon emissions, EUDR, CBAM, and CSRD are rapidly becoming mandatory standards for companies seeking to maintain orders and expand into international markets. Green transition is therefore no longer a trend but a prerequisite for Vietnam’s wood industry to strengthen competitiveness and achieve sustainable growth.

A roadmap-based transition to avoid superficial “greenwashing”

According to Vu Linh Quang, Vice President of the Ho Chi Minh City Green Business Association, the global business environment is shifting from the VUCA model to BANI, a context characterized by fragility, nonlinearity, and unpredictability. In this environment, companies can no longer rely solely on low costs or fast production speeds to remain competitive. Instead, they must meet increasingly strict requirements related to carbon emissions, traceability, and social responsibility.

“Most companies currently approach sustainability in reverse order. They position themselves as ‘green’ first, then try to integrate ESG and optimize operations, and only afterward begin measuring,” he noted.

Quang recommended that wood industry enterprises adopt a four-step transition roadmap:

1. Measurement – Accurately identify emission levels and environmental impact across production processes.

2. Optimization – Improve operations, particularly in energy efficiency and emission reduction.

3. Integration – Embed ESG criteria into corporate governance systems.

4. Positioning – Only after building a solid foundation should companies promote themselves as green brands.

Such a structured approach helps businesses reduce risks associated with green trade barriers such as CBAM or EUDR, while opening opportunities to access higher-value markets.

Applying a “Twin Transition” strategy in the global economy

A common misconception is that environmental protection limits economic growth. However, Nguyen Hong Quan presented a different perspective, describing the circular economy as a business model capable of creating multiple layers of value. According to him, this approach addresses the traditional conflict between development and conservation by optimizing resource use across the value chain-from production to waste management.

He emphasized that businesses must develop operational models where waste from one supply chain becomes a valuable input for another. Integrating nature-based solutions into industries such as wood processing and construction not only protects ecosystems but also strengthens a company’s global competitiveness.

The Director of the Institute of Circular Economy Development Vietnam also proposed adopting the “Twin Transition” model, where green transformation and digital transformation must go hand in hand.

In the traditional linear economy model (extract – produce – discard), data flows are often fragmented. However, a circular economy requires a digital operating system capable of tracking material flows throughout the entire lifecycle.

Technologies such as AI and Big Data can optimize raw material use from the design stage, minimize waste, and enable transparent product lifecycle management.

Elaborating further, David Baggs, CEO of Global GreenTag International, explained that international architects and contractors increasingly use Life Cycle Assessment (LCA) software to analyze the environmental footprint of entire buildings. Products lacking clear carbon data are often excluded from supplier lists at the design stage.

Leveraging financial instruments for green projects

Tomaso Andreatta, Vice President of the Italy-Vietnam Foundation, noted that green finance in Vietnam has evolved beyond a trend and is now integrated into banks’ credit performance indicators (KPIs). The Vietnamese government is introducing strong incentives for green projects, including proposals to reduce interest rates by approximately 2% for loans that meet green criteria. At a time when many banks lack sufficient qualified projects for green lending, companies that can demonstrate clear emission measurement systems and environmentally friendly production improvements will have a strong advantage in accessing financing.

Green-certified projects are also considered lower risk, which can significantly reduce capital costs compared with conventional investments.

For small and medium-sized enterprises (SMEs), Andreatta suggested a two-year transition roadmap to avoid being caught between international customer requirements and tightening financial regulations.

Year 1:

• Standardize environmental data

• Declare formaldehyde levels for exports to European markets

• Establish basic energy and waste monitoring systems

Year 2:

• Align operations with Green Taxonomy standards

• Ensure eligibility for green financing programs

He emphasized that the cost of sustainability consulting and certification should be viewed as a long-term investment, as preferential interest rates and stable capital flows can offset initial costs multiple times.

Although specific statistics on green credit for the furniture sector are not yet available, Andreatta believes opportunities remain significant for wood industry businesses.

Major banks such as Agribank are currently working with the Ho Chi Minh City Green Business Association to organize forums connecting businesses with green credit programs and policy updates.

Building a “green passport” through data and international certification

According to Vu Que Anh, Country Director of Forest Stewardship Council Vietnam, transparency is becoming a core value in modern supply chains. Major corporations such as IKEA and U.S. retailers like Lowe’s are aiming to use 100% FSC-certified materials, creating strong pressure for Vietnamese suppliers to comply. To manage this transition efficiently, companies are encouraged to adopt digital tools such as FSC Trace, a free platform that automates traceability and reduces reliance on expensive consultancy services.

For small enterprises and forest growers, Group Certification models can significantly lower certification costs. Of the approximately 550,000 hectares of FSC-certified forest in Vietnam, more than 400,000 hectares are certified under group schemes.

In addition to certification systems, independent assessment organizations are providing tools to help businesses create a “green passport” for their products.

Global GreenTag offers certification frameworks such as Environmental Product Declarations (EPD), which evaluate product life cycles according to the European standard EN 15804 and provide detailed carbon data to identify emission hotspots.

Additional tools such as CarbonRate, PHD, and HealthRate labels enhance transparency in environmental and health-related product data while reducing the risk of greenwashing.

These certifications are recognized by green building systems including LEED, WELL, Green Star, EarthCheck, and LOTUS, enabling products to qualify for sustainable construction projects in global markets.

Policy recommendations for government support

To effectively implement green transition and circular economy principles, Nguyen Hong Quan proposed several institutional and practical solutions.

One recommendation is the development of Living Labs, real-world experimental environments where scientists, businesses, and consumers collaborate to test circular solutions. This model helps shorten the gap between research and practical application.

He also emphasized the importance of regulatory sandbox mechanisms, which allow innovative business models to be tested within a controlled regulatory framework. Such mechanisms would enable pioneering companies to experiment with circular practices while providing policymakers with real-world insights for future legislation.

In addition, several organizations announced new initiatives aimed at supporting businesses particularly SMEs in reducing the pressure of green transformation.

The Institute of Circular Economy Development is currently working with international partners to develop training programs for Vietnam and the global market, while also contributing to a new guideline on corporate circular economy practices under the Global Sustainable Business Development Council.

Meanwhile, the Ho Chi Minh City Green Business Association announced it will provide free ESG consulting services for member businesses during the initial transition phase.

Concluding the forum, Nguyen Chanh Phuong, Vice President of the Handicraft and Wood Industry Association of Ho Chi Minh City, emphasized that even if certain international regulations such as EUDR may adjust implementation timelines, the global trend toward greener supply chains is irreversible.

Therefore, businesses should begin their transition journey proactively rather than waiting for mandatory market pressures.

He stressed that carbon accounting will become just as important as financial accounting, forming the foundation for Vietnamese wood companies to maintain their position in the world’s most demanding markets over the coming decade.

Echoing this view, Tomaso Andreatta encouraged businesses not to aim for immediate perfection but to establish a long-term strategy and transparent governance systems.

He compared the transition process to the story of “The Three Little Pigs.” Companies that rely on temporary or superficial solutions may struggle to withstand future market and policy changes. In contrast, those that invest systematically in sustainable management systems will build a solid “brick house” capable of standing strong against emerging trade barriers.