Vietnam is stepping up efforts to help its small and medium enterprises (SMEs) adopt a combined digital and green approach to development, with technical and financial support from Germany’s development agency, GIZ. In a recent interview with Nhân Dân newspaper, GIZ representative Dennis Quennet outlined how the partnership aims to turn policy ambitions into concrete action for the business community.
Driving the digital-green transition for SMEs
Quennet noted that Vietnam now has more than one million registered businesses, a sign of sustained private-sector growth following reforms to company law and supportive policies. He said these enterprises — often described as the backbone of the economy — must be included in the country’s wider ambitions for sustainable growth.
Access to green finance is a central pillar of the effort. Vietnam has recently developed green classification criteria that clarify which investments qualify as environmentally friendly. Those criteria are intended to channel capital to projects that reduce emissions and support climate resilience, giving businesses confidence when seeking finance for green upgrades.
GIZ and its Vietnamese partners are pursuing a threefold strategy. First, they share international best practice from Germany and other European countries where digitalisation and green innovation have already progressed. This helps Vietnamese firms and policymakers adapt proven models to local conditions.
Second, the partnership focuses on strengthening capacity across the public and private sectors. That includes providing research, technical guidance and policy inputs so that government agencies and industry can implement the digital-green transition effectively without undermining economic growth.
Third, the programme places strong emphasis on skills development. As companies change their business models to incorporate digital tools and green technologies, they will need workforces trained in both areas. GIZ is supporting vocational training and education initiatives to prepare workers for those new roles.
Quennet acknowledged that awareness alone is not enough. “Understanding the digital-green transition is one matter; having the knowledge, skills and resources to implement it is another,” he said. The projects supported by GIZ aim to bridge that gap through hands-on training, technical assistance and sharing international experience.
The interview also addressed Vietnam’s long-term climate pledge to reach net-zero emissions by 2050. Quennet described that commitment as ambitious and reiterated that SMEs will play a crucial role. By enabling smaller firms to invest in energy efficiency, cleaner production and digital solutions, Vietnam can reduce emissions while boosting competitiveness and employment.
Quennet highlighted three enabling conditions for progress: clear and stable legal frameworks, access to finance — including green investment — and a skilled labour force. He said these elements are essential for turning policy into private-sector action and for supporting the innovation that usually originates with smaller firms.
Looking ahead, Germany intends to maintain close cooperation with Vietnam across public and private sectors, promoting technology transfer, workforce training and green investment. The partnership aims to ensure that the benefits of global integration reach not only the largest firms but also the SMEs that drive much of Vietnam’s innovation and growth.
If implemented at scale, the measures promoted by GIZ and Vietnamese authorities could help move a large number of firms from awareness to practice, aligning economic development with environmental goals and helping Vietnam advance its digital-green transition.
Key Takeaways:
- GIZ and Vietnamese authorities are supporting small and medium enterprises in the digital-green transition to boost sustainable growth.
- More than one million registered businesses in Vietnam could benefit from green finance, technical assistance and skills training.
- Three-pronged approach: international experience sharing, capacity building for public and private sectors, and workforce development.
