3 reasons why wood industry enterprises are 'timid' about switching to green production

According to the Department of Forestry (Ministry of Agriculture and Rural Development), green production and green supply chain are among many activities of enterprises to ensure sustainable business development.

Green production is the use of green materials, energy, and technology that emits less greenhouse gases. However, currently, wood processing enterprises are not bold and thorough in pursuing green production towards sustainable values.

3 lý do khiến doanh nghiệp ngành gỗ 'rụt rè' chuyển đổi sản xuất xanh - Ảnh 1. — Forestry processing enterprises that achieve green production and green supply chain goals will create trust and prestige with customers (illustrative photo)

Mr. Tran Quang Bao, Director of the Forestry Department, pointed out three main reasons leading to this situation.

Firstly, most businesses still do not realize the importance of switching to green production for sustainable development and are not willing to change.

The wood industry is not yet under much pressure to reduce carbon emissions, but it will certainly be in the future.

"The two major markets, the EU and the US, will soon control the assessment of carbon content in imported products. Therefore, from now on, wood businesses need to change their traditional ways of doing things towards reducing emissions and greening the current supply chain, considering this an opportunity to transform, not a challenge," said Mr. Bao.

The second reason mentioned by the leader of the Forestry Department is that there are no specific guidelines on how much greenhouse gas emissions are emitted from forest product processing technology, and guidelines on measuring the amount of greenhouse gas emissions.

Third, the transition to green production increases production costs to convert to green production technology, convert to using green raw materials, fuels, and electricity; change business management and operation processes during the green transition.

Many advantages if achieving green production

The leader of the Forestry Department emphasized that if the green production goal is achieved, forest product processing enterprises will have clear advantages.

The current general trend is that consumers increasingly pay attention to green products, products that do not degrade or deforest, and do not emit greenhouse gases during the production process. Therefore, forest product processing enterprises that achieve green production and green supply chain goals will create trust and prestige with customers.

In addition, in the coming time, only green products, products that do not degrade or deforest, and do not emit greenhouse gases during the production process will be eligible for export to the EU market. This is a "difficult" market, requiring very high standards, so products that meet export standards to the EU market can be exported to all markets in the world.

"In the coming time, the Carbon Border Adjustment Mechanism will be implemented in Vietnam's main forest product export markets such as the EU, the US, and Japan. Products that achieve green production goals and green production chains will not have to pay greenhouse gas emission fees; this cost will usually be higher than the conversion to green production," said Mr. Bao.

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