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The power of Twin transition: Advancing Sustainability through Green and Digital synergy

May 05, 2025
Green Transition and Digital Transition are emerging as two important pillars in the sustainable development strategies of countries and businesses.When deployed in synergy, these two trends create a “twin transition” – a development model in which digital technology promotes sustainable solutions, and conversely, the greening process sets new requirements for digital systems. The convergence of digitalization and greening is considered a factor shaping the future of the global economy.
 
 
The Synergistic Power of Twin Transition
Digital transition acts as a catalyst for modernizing economies through the application of technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Big Data, and cloud computing. These advancements enhance operational efficiency, productivity, and market adaptability. Simultaneously, the green transition focuses on minimizing environmental impact, optimizing resource utilization, and fulfilling sustainable development commitments such as ESG (Environmental, Social, and Governance), carbon neutrality, and the circular economy.
 
Twin transition represents the integration of these two major trends to realize the Sustainable Development Goals (SDGs). This is not merely an inevitable trend but also a long-term economic development strategy that helps businesses enhance their competitiveness in the new era.
 
Policy Frameworks: The Government's Strategic Direction
Recognizing the crucial role of the twin transition the Government of Vietnam has been implementing a series of fundamental policies. Specifically, in 2022, the Prime Minister issued the National Digital Transformation Program to 2025, with a vision to 2030, to accelerate the digital transformation process. The National Strategy on Climate Change for the period 2021–2030, with a vision to 2050, and the National Action Plan on Green Growth for the period 2021-2030 have been promulgated, setting clear objectives that demonstrate the synergy between digitalization and sustainable development in policy planning.
 
The commitment to achieving Net-Zero emissions by 2050 is also a strategic step, paving the way for businesses to adopt environmentally friendly production, investment, and consumption models, while leveraging digital technology to optimize value chains.
 
At the 2024 Summit, Minister of Information and Communications Nguyen Manh Hung affirmed: “Digital and green transformations are twin engines driving rapid and sustainable national development.”
 
Enterprises at the Threshold of Transformation: Opportunities and Challenges
The primary challenges in implementing the twin transformation include technological and infrastructural hurdles, policy and legal complexities, and human and cultural factors.
 
  • Supportive policies from the government and regulatory bodies play a vital role in encouraging enterprises to undertake the twin transition. If investment incentives and support programs for green economic development are lacking or not sufficiently detailed, businesses may face difficulties in complying with regulations in different markets and capitalizing on sustainable development opportunities.
  • Technological and infrastructural challenges necessitate significant investment in advanced technologies for enterprises undergoing digital transition. On the green transformation front, building renewable energy infrastructure such as solar and wind power, as well as resource recycling systems, also requires substantial capital expenditure. Furthermore, businesses must confront challenges related to optimizing production processes and management to achieve energy efficiency and carbon emission reduction targets.
  • Cultural and human factors represent one of the most significant challenges in implementing the twin transformation. Promoting new initiatives, applying digital technologies, and adopting green standards require employees to possess skills, creative thinking, and adaptability to change. However, many businesses still lack a workforce with adequate digital technology and sustainable management expertise. Retraining the workforce to adapt to new technologies and production processes also demands time and resources.
 
The Future Ahead: Vietnam's Green-Digital Economy
Vietnam is progressively shaping an economy that is both green and digital. The green economy in Vietnam is developing rapidly, driven by national commitments to sustainable development and environmental protection. Simultaneously, the digital economy is reshaping Vietnam's business landscape with advancements in technology and infrastructure across sectors such as fintech, e-commerce, and edtech.
 
In this context, businesses need to develop clear twin transformation strategies, focusing on investing in people, technology, and sustainable operating models. This will be the key to helping businesses not only adapt but also thrive in the future.
 
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