Abstract

Vietnam has committed to achieving net-zero carbon emissions by 2050, rendering the transition toward a green industry (GI) a strategic imperative. In this context, the transformation of the industrial sector toward greener production models is not only an environmental necessity but also a critical condition for maintaining competitiveness and deeper integration into global value chains. Despite this commitment, the practical implementation of GI in Vietnam continues to face significant constraints, including fragmented policy frameworks, limited access to finance, weak innovation capacity, and a shortage of skilled labor. Against this backdrop, this study aims to assess the current status of green industry development in Vietnam by identifying key achievements, persistent challenges, and emerging opportunities. The findings indicate that although Vietnam has made initial progress through initiatives such as eco-industrial parks and the promotion of green finance, these efforts remain uneven and insufficient in scale and effectiveness. Most enterprises, particularly small and medium-sized firms (SMEs), encounter substantial barriers related to high compliance costs and restricted access to green credit, while foreign direct investment has largely concentrated in environmentally intensive industries. Moreover, pronounced regional disparities and low labor productivity further impede a balanced and inclusive green transition. Based on these insights, the study proposes a set of comprehensive policy measures, including strengthening the institutional and regulatory framework, promoting innovation and technological upgrading, enhancing human capital for the GI transition, and improving resource and environmental management within green industrial zones. These policy implications are expected to accelerate Vietnam’s GI transformation, enhance its competitiveness in global markets, and support sustainable and inclusive economic growth.