Vietnam is rigorously pursuing green transformation across the entire economy, aiming for net-zero emissions by 2050. In this effort, insights from countries around the world will be immensely beneficial to Vietnamese businesses.
Overview of the global green transition
According to a report by FPT Digital on February 1, citing statistics from the Intergovernmental Panel on Climate Change (IPCC), the total CO2e emissions (a unit used to compare the radiative force of a greenhouse gas equivalent to carbon dioxide) worldwide are projected to reach nearly 800 million tons in 2025 and increase to almost 1,000 million tons by 2050.
This is the primary cause of climate change. If efforts to reduce greenhouse gas emissions are not intensified, the world is projected to continue warming by 3.2 degrees Celsius by the year 2100.
Globally, it is essential to limit the temperature increase to 1.5°C; this means reducing net CO2 emissions by 48% by 2030 compared to 2019 levels and achieving net-zero CO2 emissions by the early 2050s.
Emissions have increased across all sectors, but the manufacturing industry is the largest emitter, accounting for over 29% of total global emissions.
Therefore, accelerating the green transition in manufacturing, utilizing renewable energy, optimizing production processes, and reducing greenhouse gas emissions will be a top priority for controlling climate change and protecting the environment.
Global experience and strategic directions for manufacturing businesses in Vietnam
Vietnam is committed to achieving net-zero emissions by 2050 and is actively accelerating this pathway. The country aims to reduce its total greenhouse gas emissions by 9% by 2030 using domestic resources and by 27% with international support.
Globally, many countries have advanced synchronized green transitions by implementing specialized solutions, such as establishing comprehensive carbon reduction strategies and adopting alternative renewable energy options.
Several major global companies have undergone green transitions, such as Nippon Steel (steel industry – Japan), Ferrexpo (iron ore export – Ukraine), and Cemex (construction industry – Mexico)… These examples provide valuable practical insights for manufacturing businesses in Vietnam.
Some manufacturing companies in Vietnam have adopted advanced technologies to effectively reduce emissions in their production processes, even within industries that traditionally have high emission levels.
For example, An Phat (plastics industry) has developed a line of fully biodegradable packaging products called AnEcO. An Phat’s PBAT biodegradable raw material plant has achieved a capacity of 30,000 tons per year, meeting the demand for green materials in production.
Hoa Phat (steel industry) has implemented a fully closed-loop blast furnace technology, which does not discharge waste into the environment. All waste, emissions, and wastewater are thoroughly treated and recycled.
The clean coking technology at Hoa Phat eliminates all gasses, smoke, and harmful chemicals while recovering thermal energy, allowing Hòa Phát to independently meet nearly 50% of its electricity production needs.
Hoa Sen has transitioned to using biomass-fueled boilers instead of chain grate coal-fired boilers, resulting in savings of over 1.84 billion VND in fuel costs and reducing CO2 emissions by approximately 6,237 tons annually.
According to FPT Digital experts, for a successful green transition, Vietnamese companies should consider four factors: consistent policy frameworks, investment in transition solutions, business operations focused on green growth, and the impact of external stakeholders on business activities.
Based on these factors, companies can develop effective strategies and roadmaps for reducing emissions.
