Chemical Industry Moves toward Green Growth, Circular Economy

Deputy Prime Minister Le Van Thanh recently just signed Decision 726/QD-TTg dated June 16, 2022 approving the Strategy for Vietnam Chemical Industry Development to 2030, with a vision to 2040, with importance attached to the rapid and sustainable development of the chemical industry, application of modern and environmentally friendly technologies towards green growth and circular economy.

According to the strategy, the chemical industry will strive to achieve an average annual growth of 10 - 11% and its contributions to the industry will reach about 4-5% by the end of 2030. In the period to 2040, it will aim for average growth of 7 - 8% a year and its contributions to the industry will be maintained at about 4-5%.

According to the strategy, Vietnam's chemical industry will shift towards a modern pattern that consists of 10 sub-sectors. Existing production facilities will be rearranged to enhance concentration and scale; installed with more advanced technologies. Meanwhile, it will discourage small producers from using outdated technology, having low resource efficiency, poor product quality and causing environmental pollution.

State-owned chemical enterprises will be encouraged to foster innovation, reorganization and operational performance, enhance State budget efficiency, and overcome scattered, ineffective investment.

In addition, the strategy underlines a strong shift to FDI inflows for priority fields and products, projects with advanced, modern and environmentally friendly technologies and with high social and economic efficiency.

By Ha Thu, Vietnam Business Forum