Green, Clean or Profit?

Making up 90 percent of the Vietnamese economy and operating with tight budgets, SMEs are striving to just meet profit targets. They are often unwilling to spend money on changing to cleaner equipment and technology for manufacturing processes. However, Vietnam has set quite a high target for green industrial development. Accordingly, by 2020, products of high and clean technology will account for 42 - 45 percent of GDP; 80 percent of manufacturing facilities meet environmental requirements, and 50 percent of them apply clean technology.

 

According to Mr Nguyen Dinh Hiep, Deputy Director of Science and Technology Department (Ministry of Industry and Trade - MOIT), energy efficiency in industrial production of Vietnam is very low compared to the global average. Specifically, coal and oil - fired power plants reaches only 28 - 32 percent, 10 percent lower than in other countries. Industrial steam boilers also reach only 60 percent, 20 percent lower than the world average. To produce 01 ton of steel from ore, Vietnam’s factories require 13 million KCAL, 3 times higher than world material consumption. Compared to Thailand and Malaysia, energy consumption in industry of Vietnam is 1.5 - 1.7 times higher.

Another concern is that although the legal system on environment has been amended and supplemented many times, its implementation is impractical and lacks synchronisation. The sanctions are not enough to deter violations. Moreover, changing the thinking from maximising profits to increasing investment costs, significantly reducing profits, is not an easy task. However, every enterprise is aware that this is the way to develop sustainably.

 

Mr Manuel Albalagejo, representative of United Nations Industrial Development Organisation (UNIDO), said that efforts of policy implementation of Vietnam mainly focus on large enterprises. Meanwhile, although SMEs situated far from the city are the main source of degradation and serious environmental pollution at the community level, they are often overlooked and uncontrolled. According to Mr Pham Hoang Mai, Director of Science, Training, Natural Resources and Environment Department (Ministry of Planning and Investment), to complete the policy framework for the green industry, it is necessary to issue economic and financial policies on recovery, policies and implementation plans on supporting green industry development. It is necessary to limit industries generating large amounts of waste that cause environmental degradation and pollution, at the same time to create new green industries.

 

Ms Annette Frick, First Secretary at the Embassy of the Federal Republic of Germany in Vietnam, shared that to have a green economy, Germany always encourages innovations in industry, promotes and expands great and practical models. Ms Annette Frick said that, in Vietnam, concrete solutions can be formed from very green industrial zones.