How Green Industrial Development Benefits the Environment

According to the provincial Department of Planning and Investment, more than 18,000 businesses operated in Dong Nai at the time of this report. Over the preceding three years, the province had adopted a more selective investment approach, rejecting projects with a high pollution risk and prioritising high technology, supporting industries and environmentally friendly projects as part of a cleaner industrial economy.

Starting with cleaner production

Cleaner production is an important part of green industry. It helps industrial and service businesses operate efficiently, compete and improve profitability while protecting workers, surrounding communities and the environment. It also conserves resources, reduces hazardous material use and limits waste and emissions.

The article described green industrial production as increasingly important as Vietnam integrated into the global economy. Provincial businesses adopting cleaner production reported lower pollution, production costs, waste-treatment and disposal costs, and reduced legal exposure. Benefits differed by sector. Metal processors could recover and recycle steel and aluminium offcuts and reuse recovered oil as fuel. Paper manufacturers could turn waste into additional products. Food processors could recover residues for animal feed and use methane generated during suitable wastewater treatment processes to produce electricity and heat.

With support from the Ministry of Industry and Trade’s Cleaner Production in Industry Component, Dong Nai began preparing its industrial cleaner-production plan to 2015 in 2011. It also established a Cleaner Production Division within the Industrial Consultancy Centre. Alongside awareness programmes, the provincial department helped businesses adopt cleaner production and energy efficiency measures. Pilot participants included Mabuchi Motor Vietnam, Dong Nai Mechanical Engineering Joint Stock Company, Dong Nai Electrical Mechanical Joint Stock Company and Bien Hoa Packaging Joint Stock Company in Bien Hoa City.

Results reported at five businesses

The original report identified five company examples. At Bien Hoa Packaging Joint Stock Company, potential energy savings were nearly 12% of consumption, with energy-cost savings above 9%. At Tung Kuang Industrial Joint Stock Company, potential consumption savings were 16.5%, while energy-cost savings exceeded 17%. Meiwa Vietnam reported consumption savings of 6.5% and energy-cost reductions above 15%. Construction and Interior Decoration Company No. 7 reported savings of 17% in energy use and nearly 27% in energy costs. Phi Dung Company reported reductions of 32% in both energy use and costs.

Using energy efficiently

Businesses pursuing green industrial production placed considerable emphasis on energy efficiency because it reduced production costs, improved economic performance and supported environmental protection and climate action. Saving electricity was a priority for many Dong Nai businesses, offering the combined benefits of lower costs, resource conservation and reduced pollution.

Chu Van Hieu, then Director of the Industrial Consultancy Centre under the provincial Department of Industry and Trade, said the centre planned annual support for business energy audits, feasibility studies and investment studies to encourage energy-saving projects.

The participating businesses operated in different sectors, with reported energy-saving potential ranging from 6.5% to 32% and fuel-cost reductions from 9.3% to 32%. According to Hieu, the largest cost benefits came from improving thermal systems and shifting operations towards off-peak periods where practicable.

The reported measures across the five businesses saved more than 2.8 million kWh of electricity, 312 tonnes of oil and hundreds of tonnes of gas annually, and reduced CO₂ emissions by nearly 2,800 tonnes. Investment in the energy-saving measures totalled approximately VND 10.7 billion. Annual savings in electricity, gas and oil costs approached VND 14 billion, giving a payback period of just over nine months.

At the time, most large and medium-sized businesses were paying attention to energy efficiency and modernising equipment to improve productivity, reduce labour requirements, save energy and limit pollution. Smaller businesses were less able to invest because of financial constraints. Nevertheless, environmental performance was an important consideration for companies seeking sustainable growth and access to export markets.

Source: collected article; historical report.