Chemical companies go green to compete effectively

VCN - Chemical and fertilizer production are industries with high emissions and energy usage, making the Green standard particularly stringent for them.
Implementing Green manufacturing helps to improve the position of the business.
Implementing Green manufacturing helps to improve the position of the business.

Challenges in greening the industry

Nguyen Thanh Phuong, representative of the Department of Industrial Safety and Environmental Protection (Ministry of Industry and Trade - MoIT), discussed the obstacles faced by Vietnamese companies in greening industrial practices. According to Phuong, while Vietnam has programs for a Green economy, Green growth, and a circular economy, green industrialization remains a new concept and is not yet clearly defined in legislation.

Awareness is a major hurdle, as many companies do not fully understand what green industrialization entails or how to implement it. Additionally, chemical and fertilizer companies face financial challenges in switching to greener materials, technology, and investing in eco-friendly processes. Small and medium-sized enterprises, in particular, find it difficult to invest in Green transformations due to the high costs involved, creating barriers to accessing environmentally friendly solutions.

Phuong noted that, while Vietnam is committed to efficient natural resource use and energy conservation, implementation remains fragmented and lacks coherence.

From a business perspective, Phung Ngoc Bo, Technical Director of the Vietnam Chemicals Group, highlighted three major benefits of removing pollution sources in the chemical industry. First and foremost, a cleaner and safer working environment benefits employees, enhancing productivity as workers feel more committed and effective in their roles.

The second benefit is economic. By managing environmental protection and reducing waste, companies significantly lower treatment costs, which helps reduce consumption rates and save on expenses.

Finally, adopting Green production raises a company’s profile, particularly for those participating in global supply chains. Chemical companies with effective environmental management can access demanding markets like the EU, aligning with Vietnam’s 2050 net-zero emission goal.

To move towards Green production, the Vietnam Chemicals Group focuses on five main solutions, starting with energy-saving measures. Efficient energy use not only reduces costs but also greenhouse gas emissions, a key priority for the Group. Another solution focuses on fuel efficiency.

The Group also emphasizes waste treatment and recycling per the Environmental Protection Law, particularly with products like rubber tires, batteries, and packaging. Additionally, they are raising environmental awareness among employees to encourage proactive environmental protection and resource-saving practices.

For the fertilizer industry, Phung Ha, President of the Vietnam Fertilizer Association, noted that Green production has become a necessary trend for fertilizers specifically and chemicals in general. Green production ensures sustainable development and enhances market competitiveness.

"Fertilizers are one of the most crucial agricultural inputs," said Ha. "According to the FAO (Food and Agriculture Organization of the United Nations), inputs include fertilizers, pesticides, seeds, and other techniques, with fertilizers accounting for around 40-70% of input value. When talking about Green production, connected to Green agriculture, inputs must be energy-efficient, conserve natural resources, and ensure sustainable outputs.”

Necessary steps to advance green industrialization

Nguyen Thanh Phuong noted that companies must focus on several key areas to promote Greening in industry. Firstly, they should fully comply with environmental protection regulations, climate change response, and emissions reduction.

Businesses must also consider options for emissions reduction and energy savings to optimize production costs. Adopting cleaner production solutions will provide clear benefits, enabling companies to meet environmental standards.

Additionally, companies should explore Green projects and utilize State policy support, like Green credit and Green bonds. The Ministry of Natural Resources and Environment is drafting a decision to present to the Prime Minister for approval on environmental criteria, providing Green project funding support, particularly through Green credit and bonds.

“There is no alternative but for companies to conduct their own research and keep up with new information to find solutions and secure investment sources for their projects,” Phuong emphasized, adding that the MoIT is currently studying and proposing core components related to industrial Greenification, such as defining Green industry and setting indicators to measure the Green level of industrial sectors.

This research aims to identify current opportunities and challenges, suggesting new policies to promote industrial Greenification in Vietnam through 2030.

By Ngoc Linh/ Ha Thanh

Related News

New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

VCN - According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

VCN - Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Focus on sustainable development, greening the textile industry

Focus on sustainable development, greening the textile industry

VCN - Vietnam’s textile and garment industry has made great strides in strengthening its supply chain, diversifying its markets, and developing sustainably. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, shared the industry’s strategy to adapt to the changing global context, as well as the export value target for 2024 that the industry is aiming for.
Wood industry faces many variables in key markets

Wood industry faces many variables in key markets

VCN - Vietnam's wood exports are recovering positively, but there are still many potential risks in terms of trade defense as well as policies to control wood origin in key markets.

Latest News

Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN – Many businesses are implementing large-scale investments in technology, energy transitions, and production processes to meet the increasingly stringent "green" criteria set by the EU market.
US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

To better exploit the tariff incentives from the UKVFTA, it is necessary for Vietnamese fishery producers and exporters to focus on improving quality and supply capacity to expand market share in the UK
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surplus value recorded a spectacular increase year on year.

More News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Read More

Your care

Latest Most read
Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN - Founded in 1998, Ton Dong A Corporation specializes in manufacturing steel and coated steel products catering to various demands, from industrial and residential construction to transportation infrastructure and home appliances.
US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

To better exploit the tariff incentives from the UKVFTA, it is necessary for Vietnamese fishery producers and exporters to focus on improving quality and supply capacity to expand market share in the UK
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surp
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
Mobile Version