Vietnam's Green Industries Face Gender Disparity, says IFC Report

• According to a recent study, women are underrepresented in leadership positions and employment in Vietnam's green industries
• Just 21% of leadership positions and 23% of jobs in solar energy, plastics recycling, and rice production are held by women
   

To address a looming talent shortage to unlock inclusive, sustainable growth, Vietnam’s private sector must take action to accelerate women’s economic participation according to a new IFC report supported by the Australian government.

According to a recent study "The Green Edge: Women's Employment and Leadership for Sustainable Business in Vietnam", there is a notable gender disparity in Vietnam's green industries, such as rice farming, solar power, and plastic recycling.

Despite the fact that these fields are essential to Vietnam's climate goals, women typically make up only 23 percent of the workforce and 21 percent of leadership positions. Furthermore, this discrepancy may impede innovation, growth, and competitiveness as these sectors expand to meet the soaring demand and contribute to the creation of more green jobs.

The report, a pioneering study, provides actionable suggestions to allow companies to bridge this gap. It calls for businesses to encourage gender-neutral recruitment, offer women skill building, and implement workplace and supply chain policies promoting equality of opportunity.

Australia's Ambassador to Vietnam, Gillian Bird, noted the advantage of enabling women, that it improves female employment and drives economic resilience and inclusive growth. She further noted that women's inclusion in climate-critical sectors is critical towards realizing net-zero targets while promoting shared prosperity.

The research also demonstrates that companies with gender balance are in a stronger position to cope with climate risks, innovate, and mobilize investment. Several companies that implemented equal opportunity practices discovered they had improved access to capital.

Based on the World Bank Group, Vietnam's journey towards net-zero could create close to one million new job opportunities by 2040, particularly in STEM fields. Enabling women to access these positions will be key to creating a capable, future-skilled workforce.

Vietnam's shift to a low-carbon economy presents a chance for companies to promote inclusive and revolutionary change, according to Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Laos. He underlined that inclusive companies are more likely to succeed in bridging skills gaps, creating high-quality jobs, and thriving during the green transition.