Journey towards Sustainability and Carbon Neutrality in Production

At the conference “Journey towards Sustainability and Carbon Neutrality in Production” taking place on May 29, Mr. Dang Bui Khue, Creative Director, Sustainable Development Management and Second Party Evaluation (Bureau Veritas) Vietnam, said that manufacturing enterprises have been under direct pressure from many world regulations, such as the carbon border adjustment mechanism (CBAM), the carbon tax on imported goods from the EU, the European green deal, …

Experts believe that digital transformation and green transformation are the two most important parallel transformation solutions. If you want to be green, you must use digital. Without digital, you cannot move quickly. If you do not use green technology, you will waste a lot of energy and resources while destroying the environment.

Mr. Nguyen Van Khoa, Chairman of the Vietnam Software and Information Technology Services Association, stated, “The government is deeply committed to NETZERO. Major markets around the world, including the United States and Europe, have begun to implement the Carbon Adjustment Mechanism – barriers and standards for green transformation and ESG for imported goods, services, and solutions. Even technology companies that provide information technology services to Japan and Europe have started declaring and meeting ESG standards for their partners on an annual basis.

Furthermore, in addition to implementing digital and green transformation and practicing ESG, technology companies bear additional responsibilities and efforts to support their customers’ transformations. According to experts, the trend of green transformation and sustainable development, which is linked to digital transformation, focuses on conveying everything from basic knowledge to standards, measurement, and a product and service ecosystem. ESG (environment, society, and governance) is particularly well-informed.

Green growth is defined as the process of restructuring economic activities to promote economic growth while also achieving environmental sustainability and social justice goals. To accomplish this, Vietnamese businesses will need to undergo both digital and green transformations at the same time to meet the requirements of improving production and business efficiency, as well as market requirements in both domestic and international markets, under the new development trend. This is also the “dual conversion” trend, which has emerged in several countries around the world.

Mr. Wu Jung Pin, General Director of Cheng Loong Binh Duong Paper Company (Binh Duong), stated that, in tandem with the trend of “green consumption,” businesses have been working to transform “green production,” using the circular economy model to ensure that their products meet the market and customer’s greening requirements. As a result, the company decided to invest in constructing a factory in My Phuoc Industrial Park, Binh Duong. Businesses must produce and consume resources by a circular economy model, including recovering scrap paper for remanufacturing through green and low-carbon production processes, to help paper become a green packaging material. The company has invested more than $1 billion in capital to achieve the greening goal.

Needs a lot of support

Aside from the opportunities and benefits, green and digital technologies present numerous challenges and difficulties for businesses; successful implementation becomes the best solution to this difficult problem. Furthermore, difficulties in obtaining finance, technology, and expertise have become a major barrier for businesses seeking to invest in green transformation activities, particularly small and medium-sized enterprises. One of the major factors “holding back” businesses in this transformation is a lack of field data. This makes it difficult for them to assess the risks and potential benefits of their companies’ “greening” initiatives and plans.

From a business standpoint, Mr. Kieu Van Mat, Chairman of the Board of Directors of Song Da Cao Cuong Joint Stock Company, stated that the transition to a circular economy to use sustainable energy will reduce climate change while creating economic opportunities, particularly in the fields of innovation research, design, recycling, and creativity.

This business representative proposed that the government continue to promulgate policy mechanisms to promote the production and use of green construction materials, as well as create appropriate mechanisms to ensure that green construction materials are easily accessible to consumers, investors, contractors, and projects. Simultaneously, promote communication and training to raise community awareness about green construction materials and the benefits they provide to investors, users in particular, and society as a whole, to change construction material use habits.

“In addition, the authorities must fully issue product standards, technical regulations, usage instructions, and economic and technical norms relating to the use of green construction materials and soon complete assessment processes, documents, and guidance tools so that businesses can access carbon credits and the benefits that the circular economy provides. It is necessary to help businesses access green credit capital sources, as well as domestic and international preferential capital sources,” Mr. Kieu Van Mat proposed.

At the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), the Vietnamese government committed to reducing net emissions to “zero” by 2050, participated in the Fair Energy Transition Declaration (JETP), and committed to attracting green financial flows to develop renewable energy and low-carbon development…

To carry out these commitments, the government has made efforts to implement solutions with practical actions to create a more favorable policy environment for businesses, such as approving the “National Strategy on Green Growth Period 2021-2030, Vision 2050,” expanding green investment portfolios, reducing greenhouse gas emissions for investments, providing financial subsidies, …


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