Manufacturing enterprises devote large resources to investing in green production and sustainable production.

Enterprises invest heavily in green production and sustainable production.

According to the latest report of the Ministry of Industry and Trade, in the first 9 months of 2024, the total added value of the entire industrial sector is estimated to increase by 8.34% over the same period last year, contributing 2.71 percentage points to the growth rate of total added value of the entire economy. Industrial production is increasingly meeting market demands and playing an important role in economic development.

Along with the investment in production of enterprises, in recent years, the trend of green consumption in Vietnam and around the world has been growing strongly. Consumers today are more interested in smart, sustainable consumption, as well as recycled products, saving raw materials, and being environmentally friendly from the production to consumption stages.

For manufacturing enterprises, this change is both an opportunity and a challenge when they have to produce and supply goods according to green, clean criteria, and transparent product information to attract consumers. The green consumption trend also poses a new problem for Vietnamese enterprises to improve their position and increase competitiveness in domestic and foreign markets.

Therefore, many businesses have invested in technology and production equipment to improve processes, towards green production and sustainable development, typically installing equipment to use renewable energy, applying circular economy, upgrading wastewater treatment systems... At AN MI Tools Co., Ltd., a number of solutions have been implemented such as increasing green space, using solar energy systems on the entire factory roof so that products use green energy, and minimizing recycling by improving production efficiency.

Economic experts say that green transformation in supporting industrial enterprises brings many benefits. It not only meets the green criteria of customers but also reduces costs and ensures stable production in the face of unexpected fluctuations from the market. For example, during the hot season, there may be a shortage of electricity for production, installing rooftop solar power in factories and industrial parks is a solution of interest.

Solving the challenge

It must be affirmed that green transformation is a mandatory requirement for businesses to respond to market trends. However, green transformation has also created great competition and challenges for businesses. On the path to emission reduction, green transformation, and digital transformation, Vietnamese businesses are facing common challenges such as dual transformation of digital transformation and green transformation, responding to climate change, Net Zero in energy development, etc.

Sharing about the challenges in the process of digital transformation associated with green transformation, from the business perspective, Mr. Dang Vu Hung - Chairman of the Board of Directors, General Director of PPJ Group said that the implementation process of enterprises received a lot of support from the policies and guidelines of the State.

However, green transformation also brings challenges, and these challenges can be amplified many times for small and medium-sized enterprises with limited resources. Investment costs for technology and production input costs make product prices higher than traditional ones, and not all brands are willing to pay this difference.

“At PPJ Group, over the past 5 years, tens of millions of USD have been invested in green transformation. This number will not stop. The cost of transformation is very large, but the price of slow transformation or no transformation will be many times greater," said Mr. Dang Vu Hung.

Therefore, businesses believe that the State needs to improve the policy system and establish incentive mechanisms to support businesses in developing a green economy, such as tax reduction, tax incentives and financial support. First of all, it is necessary to develop tax and investment incentives to encourage businesses to switch to a green economic model. For example, green credit policies are promoted through lending channels that support interest rates for environmental protection projects, energy saving, renewable energy and clean technology, recycling technology, etc. Tax incentives focus on encouraging investment and production using clean technology, energy saving and supporting the implementation of the National Strategy on Green Growth. Develop a resource tax policy applicable to businesses and projects that have positive contributions to the environment. At the same time, the government can also create investment support funds for renewable energy and green technology projects, with funding from both domestic and foreign sources.

In addition, it is necessary to encourage businesses to proactively invest in research and technological innovation to improve productivity, save raw materials, as well as produce environmentally friendly organic products, helping to protect resources and reduce environmental pollution. These efforts not only preserve biodiversity but also create more jobs for rural areas. The State also needs to have policies to support farms, farmers and businesses in converting to organic production, such as providing financial support packages for maintaining organic farming, implementing education and consulting programs, supporting the promotion and processing of organic products, etc.

Source: https://moit.gov.vn/phat-trien-ben-vung/doanh-nghiep-san-xuat-danh-nguon-luc-lon-dau-tu-cho-san-xuat-xanh-san-xuat-ben-vung.html