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COVER STORY

be ignored. This is true in high-end markets
such as the EU, where customers demand
information on the carbon footprint of
seafood products. They are increasingly
aware of and place a high level of importance
on carbon footprint declarations, and even
make specific requirements such as con-
Minimizing trolling catches and encouraging carbon
footprint declarations on products. The
EU has approved the Carbon Border Adjust-
ment Mechanism (CBAM) for a number
& mitigating
of specific goods such as steel, cement,
chemicals, and fertilizers, and such trends
Vietnamese businesses have become will continue to expand to other fields.
The CBAM mechanism imposes a carbon
more willing to engage in waste reduction
price on imported goods based on the
and adopt circular practices. greenhouse gas emission intensity of the
production process, and requires that Viet-
By AN CHI namese enterprises exporting these goods
conduct a greenhouse gas inventory.
“Circularity not only helps save on
production costs but also reduces emis-
sions and negative impacts on the envi-
ietnam is one of five countries most economy, in which efforts were made to ronment, increases revenue and profits,
affected by climate change. Accord- convert chemicals into resources, reduce the penetrates and expands the high-end
V ing to its National Strategy on Climate consumption of input materials, and utilize market, and boosts opportunities to receive
Change to 2050, issued by the government, environmentally-friendly materials that can investment,” Mr. Trung Anh added.
total national greenhouse gas emissions be reused and recycled or that easily decom- Throughout its development journey,
are to fall by 43.5 per cent by 2030, with pose, in order to minimize adverse impacts in addition to its mission of providing
the five sectors of energy, agriculture, forestry, on the surrounding environment.” “green vehicles” for a sustainable future,
waste, and industry sharply cutting their Also involved in the agricultural sector, VinFast also pays great attention to effective
carbon emissions during the production the PAN Group has committed to and management and waste reduction towards
process. Vietnamese businesses have there- invested in implementing low-emissions production under a circular economic
fore become a lot more proactive in waste agricultural solutions. This stems from model. It has implemented waste reduction
reduction and circular practices to promote actual requirements in its production and programs under the principle of Reduce
the economy’s green transition. business activities. waste at source - Reuse - Recycle. The
The government has made national company’s recycled waste rate is increasing
Not just a trend; a choice commitments and encouraged businesses year after year. In 2021, 69 per cent of
Consistently pursuing growth in asso- to make more important contributions to generated waste was recycled, and in 2022
ciation with environmental conservation, the implementation of the sustainability and 2023 the rate was 81 per cent and 86
Vinamilk has determined that corporate program. The agricultural sector accounts per cent, respectively. Investing in advanced
responsibility is not only strict compliance for 19 per cent of total emissions in Viet- production lines has resulted in the com-
with legal regulations on waste manage- nam, and ranks second on the list of pany maximizing its water savings.
ment but also the optimal consumption industries that are the largest emitters, On December 5, 2023, VinFast signed
of resources and improving the level of after the electricity and energy industry. an MoU with Japan’s Marubeni Corpo-
reuse and recycling of waste from the The government has introduced require- ration on cooperation in researching and
product design stage to the distribution ments for businesses to conduct inventories manufacturing SES storage battery sys-
and consumption stage. It focuses on col- and report on their greenhouse gas emis- tems from used electric vehicle batteries.
lecting and sorting waste at the source, sions. Additionally, under Decision No. The two parties will also collaborate to
actively renovating production lines, 01 and an updated list, there are 2,893 promote business opportunities in the
investing in environmentally-friendly establishments that must conduct green- used electric vehicle battery sector, mark-
technologies, and building a circular econ- house gas inventories in their emissions ing an important step in VinFast’s strategy
omy, thereby contributing to reducing reduction roadmap from now to 2030. to establish a circular economy.
emissions and greenhouse effects. At its “The business environment increasingly A VinFast representative told VET
dairy cattle farms, waste treatment is a requires stricter compliance with envi- that the transition to a circular economy
top priority to protect the environment. ronmental standards and resource man- is inevitable in all countries around the
“At Vinamilk, the circular economy is agement,” said Mr. Nguyen Trung Anh, world, including Vietnam. One of the key
associated with goals in environmental pro- Sustainable Development & Innovation motivations for VinFast to carry out waste
tection and sustainable development, notably Director at the PAN Group. “Though not reduction activities towards a circular
the economical and efficient consumption required to submit a greenhouse gas economy model is the growing recognition
of resources, minimizing and eventually inventory report, implementing a low- of the importance of sustainability in
eliminating all types of waste polluting the emissions agricultural model can help business operations. In the current context,
environment,” a Vinamilk representative PAN comply with regulations and require- demand for raw materials is increasing
told VET. “As a result, in 2022, Vinamilk ments from the government.” while these resources are being depleted,
strived to implement many activities to In addition to legal requirements, pres- especially non-renewable resources such
transform its linear economy to a circular sure from international customers cannot as minerals. So becoming a link in the

26 Vietnam Economic Times April 15, 2024 en.vneconomy.vn