Energy saving: The key to sustainable development for Vietnamese businesses

Mr. Mach Dinh Khoa, Vice President of Business Strategy & Operations for Commercial Buildings at Schneider Electric

Q: Can you assess the effectiveness of energy saving in products and goods on the market?

A: Currently, energy costs account for 15-20% of total production costs in some industries. In today's fiercely competitive environment, consumers demand that product prices remain stable or even decrease, while energy consumption and prices continue to rise. Therefore, energy saving becomes a critical factor for businesses to maintain profits and create a sustainable competitive advantage.

Moreover, many businesses exporting to Europe are now required to report the carbon footprint of their products. Without participating in this initiative, businesses will gradually lose their competitive advantage in the international market.

Q: In your opinion, what is the current level of competitiveness of Vietnamese goods in the export market?

A: Vietnamese goods still maintain a good position in major markets such as Europe, the US, Japan, and South Korea. However, as countries are tightening their carbon policies, for example, Europe's implementation of a carbon tax on six major industries, Vietnam needs to improve to maintain its competitive edge. Through surveys, we see that many Vietnamese businesses are still not fully aware of the urgency needed in energy saving. They view this mainly as compliance with government requirements, rather than self-improvement to increase competitiveness.

Q: Schneider Electric has many solutions to help businesses save energy. Can you elaborate on these solutions?

A: One of the important solutions that we encourage businesses to start with is building an independent energy metering and management system. Businesses need to have a comprehensive strategy on energy saving in all aspects of their factory, from each individual machine to every production line. Only with an independent metering system can businesses accurately identify areas of high and low energy consumption to develop a comprehensive solution. With accurate data on each machine's capacity, businesses can easily recognize where to begin optimizing energy usage.

Furthermore, the human factor plays a vital role in a company's energy-saving strategy. Businesses need to communicate effectively and raise awareness among employees in the factory.

Saving energy is not a one-time effort; it requires continuous maintenance and improvement. A machine may operate optimally today, but after five years, the equipment will age and require maintenance or replacement. This is a long-term commitment that businesses must be mentally prepared for.

Programs encouraging businesses to use energy efficiently and economically have shown positive results. More and more businesses are interested in saving energy and seeking information on energy-saving solutions. However, it is evident that more stringent solutions and practical actions are necessary.

Q: You mentioned the need for more stringent solutions. Could you elaborate on what those might be?

A: Currently, energy saving mainly revolves around encouragement and reporting requirements for businesses. However, in the long run, we need specific regulations and penalties. As the market develops, businesses must make clear commitments to energy saving and be held accountable if they fail to fulfill those commitments.

We are fully capable of achieving energy-saving goals according to the Government's roadmap, even surpassing them, using currently available technologies. The market offers increasingly more technologies to assist businesses in achieving these goals. However, many businesses are currently in limbo - unsure of which technology to choose or facing financial or human resource challenges. Businesses need independent consulting services for the long term, not just short-term solutions. By having a clear strategy and choosing a trustworthy independent consultant, businesses can undoubtedly achieve their energy-saving goals.

Q: What are your recommendations to promote energy saving in businesses?

A: The Law on Economical and Efficient Use of Energy should incorporate specific sanctions for more effective implementation. Furthermore, businesses must prioritize energy saving throughout their operations. In the long term, the Ministry of Industry and Trade and relevant agencies should promptly issue technical standards and equipment regulations for consistent implementation and maximum energy efficiency.

Thank you!