The shift towards green and renewable energy is how the Vietnamese government is working to fulfill its Net Zero commitment by 2050, as pledged at COP26. As the primary energy consumers in Vietnam, industrial zones and manufacturing plants play a crucial role in this transition.
Industrial production in Vietnam remains heavily reliant on fossil fuels, particularly coal. The increasing demand for energy has led to a significant rise in greenhouse gas emissions.
Despite high energy consumption, the economic value generated per unit of electricity remains relatively low. According to data from the World Bank, 1 kWh of electricity in Vietnam only produces only $1.07 in value, which is significantly lower than in other countries in the region. Reports from the Ministry of Industry and Trade indicate that in industries such as cement and steel, energy costs account for 50-55% of the total production value. This inefficient energy use results in high production costs and reduces competitiveness in the international market.
Transitioning to Green Energy is a mandatory requirement to enhance competitiveness, combat climate change, and reduce dependence on fossil fuels for manufacturing businesses. At COP26, Vietnam committed to achieving net-zero emissions by 2050, with a target to reduce greenhouse gas emissions by 43.5% and to ensure that renewable energy accounts for 70% of the energy development plan by 2050.
Green Energy is derived from natural resources that emit little to no greenhouse gases, unlike fossil fuels such as coal, oil, and gas. In recent years, many key industrial enterprises have invested in replacing equipment and technology to directly reduce energy input for production and promote on-site renewable energy.
In 2022, Vinamilk installed solar energy systems across all of its factories and its main office headquarters. Simultaneously, the company has actively increased the use of other Green Energy sources in its production, such as CNG (compressed natural gas) and biomass, to replace fossil fuels like FO and DO oil. Currently, green and clean energy accounts for more than 92% of the energy consumed at Vinamilk’s factories. According to its greenhouse gas inventory report, Vinamilk’s emissions in 2023 decreased by 30% compared to 2022. These “greening” efforts have helped the company meet international standards, such as ISO 50001 for energy management, ISO 14001 for environmental management, and now, the PAS 2060:2014 certification for carbon neutrality.
Self-producing Green Energy, such as solar, wind, or bioenergy, offers many benefits, including long-term operational cost reductions and decreased dependence on traditional energy sources. However, this requires significant initial investment and technical expertise.
Beyond investing in Green Energy production systems, Vietnamese businesses can also purchase energy from suppliers like Singapore Power, depending on their needs, business goals, and specific conditions. This option, in addition to being more flexible and quicker, also helps companies save time and resources on investment.
Green energy solutions and practical application methods will be shared at the DxHub event titled “Orientation on Sustainable Energy Transition and Practical Implementation for Manufacturing Enterprises.” The event will provide practical insights and experiences in sustainable energy transition worldwide, as well as suitable approaches to energy transformation for Vietnamese manufacturing businesses.
The event will take place on Wednesday, May 15, 2024, from 1:30 PM to 4:30 PM at the 8th Floor, FPT Tower, 10 Pham Van Bach, Hanoi. Key speakers include Mr. Le Vu Minh, Consulting Director at FPT Digital; Mr. Stuart Livesey, Co-chair of the Green Growth Sector Committee, EuroCham Vietnam; and Mr. Tran Quoc Hai, Director of Sustainable Energy Solutions, SP Group Vietnam.
Interested readers can register at: https://digital.fpt.com/dxhub
For further information, please contact: [email protected] | Phone: +84 904689597
DxHub™ is a series of events organized by FPT Digital, designed to build a community and connect experts and businesses across various industries. The program serves as a platform for sharing the latest updates, knowledge, experiences, expert perspectives, and fostering business connections in digital transformation, green transformation, and sustainable development.
