Global Industries in the Green Trasition
- Vinex Official
- 2 days ago
- 5 min read
The landscape of global industries is undergoing unprecedented transformation as the green transition reshapes manufacturing, trade, and investment patterns worldwide. Climate imperatives, regulatory pressures, and evolving consumer expectations are driving industries across all sectors toward sustainable practices. This shift represents not merely environmental compliance but a fundamental reimagining of how global industries operate, compete, and create value.
Record renewables growth led by solar helped push clean power past 40% of global electricity in 2024 Vietnam’s E-Commerce Market: Poised for Explosive Growth by 2025, signaling accelerating momentum in the global industries renewable energy sector. Simultaneously, global industries supply chain networks face mounting pressure to demonstrate sustainability credentials, with mechanisms like the EU's Carbon Border Adjustment Mechanism (CBAM) creating new market access requirements.
For foreign investors considering Vietnam operations, understanding these global industry trends proves essential. Vietnam's manufacturing-oriented economy heavily integrated into international supply chains faces both challenges and opportunities from green transition demands. This comprehensive analysis examines how global industries are navigating green transition pressures and critical implications for businesses operating in Vietnam's dynamic investment landscape.
The Green Transition Imperative for Global Industries
Understanding the Green Transition Context
The green transition has evolved from voluntary corporate responsibility initiatives into mandatory business requirements reshaping global industries. Multiple converging forces drive this transformation: climate crisis urgency, energy security concerns, regulatory proliferation, and growing stakeholder expectations demanding measurable sustainability performance.
Achieving climate targets requires rapid and large-scale roll-out of clean technologies to fully decarbonize electricity supply, electrify most final energy use and scale up low-carbon hydrogen Vietnam’s Economic Outlook for 2025 and Key Sectors for Investors. These commitments translate into specific industrial sector requirements, directly impacting manufacturing processes, energy sourcing, and product specifications.
Governments increasingly legislate sustainability requirements rather than relying on voluntary corporate action. The EU leads with comprehensive frameworks including the Green Deal targeting 55% emissions reduction by 2030, CBAM imposing carbon costs on imports, and the Deforestation Regulation (EUDR) restricting market access for products linked to forest degradation.
Global Industries Most Affected by Green Transition
The Carbon Border Adjustment Mechanism, effective since October 2023, immediately affects specific global industries exporting to the EU: steel (among the most carbon-intensive industries), cement (high emissions profile creates substantial transition challenges), fertilizers (energy-intensive production processes), and aluminum (emissions from smelting operations drive transformation needs).
Scheduled for full enforcement by December 30, 2025, EUDR extends green transition pressure to agriculture, aquaculture, timber and wood products, textiles and apparel, and other manufacturing sectors facing cascading sustainability requirements from customers and regulators.
The textile and footwear industries exemplify green transition challenges facing highly integrated global industries. The EU and US markets, representing 70% of Vietnam's textile and footwear exports, now impose stringent requirements including supply chain traceability legislation, anti-deforestation laws, extended producer responsibility mandates, eco-labeling requirements, and eco-design standards. Vietnam's Ministry of Industry and Trade responds by implementing policies supporting sustainable supply chain development, specifically focusing on greening textile and footwear supply chains.
Global Industries Supply Chain Sustainability Revolution
Supply Chain Transformation Drivers
Global industries supply chain networks experience fundamental restructuring driven by sustainability imperatives, geopolitical tensions, and technological capabilities. The reshaping of global supply chains occurs in the context of both the transition to a green economy and rising geopolitical tensions, Vietnam's Economic Outlook for 2025 and Key Sectors for Investors, creating complex challenges for multinational enterprises.
Modern global industries supply chain management extends beyond traditional cost, quality, and delivery metrics to encompass comprehensive sustainability performance. Companies must measure and report Scope 1, 2, and 3 emissions across entire value chains, verify suppliers meet environmental and social standards, implement circular economy principles, and ensure complete supply chain visibility tracking raw materials from origin through manufacturing to final product.
By 2025, over 60% of supply chain leaders will have adopted AI tools to drive efficient GDP - Official information channel of the Government of Viet Nam, with artificial intelligence, blockchain for traceability, and digital twins revolutionizing global industries supply chain management.
Implications for Vietnam-Based Manufacturing
For businesses operating within Vietnam's global industries supply chain networks, these transformations create both challenges and opportunities. Meeting stringent sustainability requirements demands investment in cleaner production technologies, renewable energy adoption, and comprehensive reporting systems. Vietnamese manufacturers must work with domestic suppliers to elevate sustainability performance across entire supply chains.
However, early adopters of green practices gain preferential access to sustainability-focused buyers and premium pricing opportunities. Compliance with CBAM, EUDR, and other mechanisms maintains and expands access to lucrative developed markets, while demonstrated sustainability performance attracts international capital as investors increasingly screen for ESG criteria.
Global Industries Renewable Energy Growth and Innovation
Renewable Energy Market Expansion
The global industries renewable energy sector experiences explosive growth, fundamentally altering energy markets and creating vast investment opportunities. Renewable electricity will overtake coal-generated electricity for the first time in 2025, accounting for 35% of global electricity supply Vietnam E-commerce Market Size, Share Industry Trends & Forecast 2030, marking a historic inflection point in global energy systems.
Solar will meet nearly half of the global growth in electricity demand through 2025, remaining a key driver of renewable capacity additions. Energy supply from hydropower increased by 4.4%, posting a recovery from the record drop seen in 2023 due to droughts in major hydro markets Vietnam - eCommerce, though climate change impacts create long-term concerns about hydropower reliability.
China's Leadership in Global Industries Renewable Energy
China dominates global industries renewable energy markets through unprecedented investment scale. By 2024, China invested $818 billion in energy transition more than double any other economy. China accounted for over 40% of global renewable energy capacity Vietnam’s Economic Outlook for 2025 and Key Sectors for Investors and nearly 77% of Asia's total capacity, establishing overwhelming market leadership.
China employs a distinctive strategy called "xian li hou po," meaning "build first, break later" rapidly constructing renewable energy industries while gradually phasing out fossil fuel dependency. The Chinese government views the green energy transition as a "massive national security multiplier," recognizing that renewable energy development simultaneously addresses carbon emissions, energy security, and economic competitiveness.
Vietnam's Position in Global Industries Renewable Energy
For Vietnam, global industries' renewable energy trends present significant opportunities. Vietnam possesses excellent solar irradiation levels, strong offshore wind potential along extensive coastline, and growing domestic electricity demand supporting renewable business cases. Vietnam's Decree 57 reshapes the renewable energy legal framework by introducing price ceilings, new Direct Power Purchase Agreement models enabling corporate renewable procurement, and clearer frameworks for long-term renewable investment.
Investing in Vietnam’s Green Transition
The transformation of global industries through green transition represents one of the most significant economic shifts in modern history. Global industries supply chain networks increasingly require demonstrated sustainability performance, while global industries renewable energy expansion opens vast new markets and investment possibilities.
For foreign investors operating in Vietnam, early adopters positioning ahead of regulatory requirements gain significant advantages: preferential market access, premium pricing opportunities, and better access to capital. Success requires comprehensive approaches including measuring environmental performance, developing strategic roadmaps, and investing in renewable energy and clean technology.
Unlock Green Opportunities in Vietnam with Vinex
Vinex stands ready to support foreign investors throughout their green transition journey in Vietnam. Thank you for exploring how global industries' green transition reshapes business opportunities. We invite you to contact Vinex for personalized consultation on preparing your Vietnam operations for sustainable success in an increasingly green-focused global economy.
Why Partner with Vinex?
Company Formation: Secure ERC/IRC in 1-3 months.
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Contact Vinex at +84 98 1111 811 or contact@vinex.com.vn to launch your venture.
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