Businesses take proactive steps to drive the green transition for a sustainable future. Photo: Le Ngoc Tu
Vietnam is stepping up solutions to meet its net zero emissions target by 2050, with green public procurement seen as one of the most effective ways to steer markets toward cleaner production.
Green public procurement refers to government agencies prioritising products, services or infrastructure that meet environmental criteria. Under the national green growth strategy, at least 35 per cent of total public procurement value must come from green products by 2030, rising to 50 per cent by 2050.
Dr Nguyen Sy Tinh from Hanoi University of Natural Resources and Environment said that green public procurement creates both pressure and motivation for businesses to innovate. When green criteria appear in every bidding package, companies cannot survive if they keep producing in the old way.
This shift has changed how bids are assessed. Previously, the lowest price played a decisive role. Now, criteria such as energy efficiency, lower toxicity, durability and recycled materials are considered.
Procuring agencies are also moving from measuring only the initial purchase price to adopting life cycle cost calculations. This encourages businesses to invest in clean technologies that optimise long term operations. Products with energy efficiency labels or eco labels are prioritised, giving strong advantages to bidders with sustainable development strategies.
Dr Nguyen Sy Tinh said that applying life cycle costing forces businesses to rethink their approach. Products must not only be cheap, they must also be durable, efficient, safe and environmentally friendly. These standards have long been required in international markets.
Several provinces have already taken the lead in implementing green procurement. In Hue, education projects now apply criteria such as non-fired bricks, low VOC paints and heat insulating glass. In Tuyen Quang, five-star energy rated LED lighting systems have been widely installed for public lighting, cutting electricity costs and limiting mercury emissions.
Green public procurement also creates new opportunities for businesses. Meeting green standards increases chances of winning bids, strengthens corporate reputation and improves access to export markets.
Dr Nguyen Sy Tinh noted that enterprises taking early steps in green transformation gain major advantages in supply chains. Beyond the domestic market, they can access international markets with strict environmental requirements.
According to training materials under the GEF and ADB project “Mainstreaming climate resilience and environmental protection for green secondary city development” of the Ministry of Agriculture and Environment, public procurement accounts for a large share of State spending, at about 12.5 per cent of GDP, especially in development investment, where it covers 72.6 per cent of bids. This scale can help drive the green market and create positive environmental impacts.
As Vietnam moves toward a low carbon economy, green public procurement is a practical step forward. Businesses that invest early in green transformation will not only capture new growth opportunities but also help build a greener future for the country.
