HANOI, In recent years, more companies in Vietnam have ventured into the green economy, producing sustainable goods such as biodegradable packaging, organic foods, and eco-friendly fashion.
While growing environmental awareness has boosted consumer interest, green businesses face persistent challenges — especially high production costs — which make it difficult to compete on price or scale up in the domestic market.
Inside a factory of Faslink, a firm committed to sustainable fashion for over 15 years.
Experts say that despite positive momentum, eco-friendly products often remain significantly more expensive than conventional alternatives, leaving many Vietnamese consumers unwilling or unable to make the switch.
One example is the Song Hong agricultural cooperative in Hanoi, which produces vegetable-based drinking straws. Despite their environmental benefits and health-friendly design, most of these products are exported to developed markets including Germany, the UK, Japan, and South Korea, as local demand is limited by price sensitivity.
Vietnam consumes an estimated 5.3 billion plastic straws annually — about 50 times its population. Even if only 1–2% are improperly disposed of, the environmental impact is severe. Yet, eco-friendly options remain beyond the reach of most domestic consumers.
The challenge extends beyond straws. Fuwa Biotech, a Thanh Hoa-based company producing enzyme-based dishwashing liquid from pineapple peels, also struggles with affordability. A 3.8-litre bottle of its chemical-free product retails for VNĐ335,000 (US$13) — two to three times higher than standard alternatives.
“High prices are the biggest barrier to reaching more customers,” said Vo Van Luat of Fuwa Biotech, who stressed the need for more forums and awareness campaigns to encourage sustainable consumption.
In the fashion industry, long-established players such as HCM City’s Faslink face similar struggles. Deputy general director Nguyen Bech Dien noted that while the company has pioneered fabrics made from recycled and natural fibres, such as pineapple leaves, the high cost of research and production keeps prices elevated. “Consumers remain hesitant to pay more for eco-friendly fabrics when conventional options like polyester or cotton are much cheaper,” she said.
A Deloitte Vietnam survey cited by sustainability director Pham Minh Huong found that while up to 50% of consumers express interest in green products, fewer than 30% are willing to pay a premium. “This highlights the gap between awareness and actual behaviour,” Huong said.
Industry players argue that lowering production costs is key to making green goods more accessible. But the hurdles are considerable: substantial upfront investments, strict environmental standards, and the need for clean raw materials make scaling up risky and expensive. National Assembly vice chairman Ta Dinh Thi echoed these concerns, noting that many companies are reluctant to expand beyond small-scale experiments because of doubts over profitability and competitive pressure, despite existing government support.
Meanwhile, Faslink’s Dien highlighted the difficulty of commercialising new recycled materials. Promising ideas — such as fabrics from banana stems or composting mushrooms — often stall at the lab stage due to technology and supply chain gaps. 
Recycling plastics remains particularly costly. At Duy Tan Recycling, recycled plastic costs 20–30% more than virgin plastic, driven by expensive collection, sorting, and processing. “Encouraging waste segregation at source could reduce costs and help lower prices,” said the company’s sustainable development head, Le Viet Dong Hieu.
Experts agree that innovation and affordable technology will be critical to driving down costs. But small and medium-sized enterprises — which form the backbone of Vietnam’s green sector — face difficulties accessing financial support and resources. Many are now calling for targeted incentives, funding schemes, and public education campaigns to help them transition towards sustainable production at scale.
