Vietnam Promoting Zero-Emission Economy

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by KnowESG
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Many businesses in the United States use the models of the circular economy and the green economy to adapt to climate change. They use manufacturing technologies that are good for the environment to cut greenhouse gas emissions and make development more sustainable. This is good not only for businesses but also for the community as a whole.

For instance, Nestlé Vietnam is cooperating with the Ministry of Agriculture and Rural Development and the Central Highlands Agro-Forestry Science and Technology Institute to support coffee farmers in selecting suitable seeds for farming practices that meet international standards. As a result, 40 per cent of irrigation water and 20 per cent of artificial fertiliser, and pesticides have been reduced, greatly improving the health of farmers and the carbon sequestration rate, as well as increasing local biodiversity.

Using the circular coffee production model, Nestlé Vietnam has decreased 12,679 tonnes of CO2 a year on average via the use of biomass energy harnessed from coffee grounds to replace 74.4 per cent of DO fuel. The switch from plastic to paper straws also reduces 700 tonnes of plastic waste a year in Vietnam.

For sustainable growth, Vietnam Dairy Products JSC. (Vinamilk) has been launching synchronous measures of organic farming, greenhouse gas monitoring under the ISO 14064 standards to manage carbon footprint, livestock raising under the European Organic and Global GAP standards, biomass and solar energy use, anaerobic technology for waste treatment, and methane recycling to heating water for cow bathing. These practical solutions have saved nearly 171kWh of electricity, and 86,000m3 of water, 100kg of fuel per year while reducing the use of 980kg of chemicals per year.

Mark Birnbaum, Director of the Vietnamese Private Sector Competitiveness Enhancement Project (the US Agency for International Development, – USAID), commented that the ways businesses interact with their local communities and environment can affect their market access, and in turn, their success. Sustainable business practices do not merely limit themselves to environmental issues but also relate to human, system, and resource matters. Companies that invest in green development always think about how their actions will affect the community around them. This helps them grow steadily and become more stable.

Therefore, USAID has worked with the Ministry of Planning and Investment to launch the ‘Initiatives to Promote the Application of an Environmental, Social, and Governance Framework (ESG) in the Private Sector for Sustainable Growth in the 2023–2025 Period’.

The initiative will be completed via the project ‘Private Sector Competitiveness Enhancement’, with a total capital of US$36 million sponsored by USAID. It will focus on improving legal frameworks to promote ESG practice and capacity for 100,000 small domestic enterprises while supporting another 300 companies regarding technical aspects. These are expected to answer the demands of key export markets for sustainable development.

Director Birnbaum said that the boost of ESG method implementation will create excellent ideas, models, and typical successes in the hope of spreading the usefulness of this method to other companies for a more sustainable economy.

Tran Quoc Phuong, who is the Deputy Minister of Planning and Investment, said that climate change is affecting every country in the world, including Vietnam. The new consumption trend has asked manufacturers to prioritise sustainable, green production. Domestic companies need to update themselves to keep up with the times. If they don't, their competitiveness will drop, and they won't be able to join the global value chain.

Hence, the Planning and Investment Ministry has actively consulted the Government to introduce new mechanisms and policies to aid businesses in switching to more sustainable models that ensure a harmonious combination between economic efficiency and social responsibilities, environmental protection, and natural resource conservation. It is these models that help fulfil the 17 goals of sustainable development in Vietnam by 2030.

Source: Saigon

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