Green transformation in production for business integration

In the context of globalization and increasingly severe climate change, green transformation is no longer merely an option but an inevitable path toward sustainable development.

Workers at Eco Polymers Co., Ltd., in Ho Nai Industrial Park, produce products from recycled materials.

Vietnamese enterprises are under growing pressure to adapt more quickly to new environmental protection, energy efficiency, and social responsibility standards. With rapid technological advances, businesses can now more easily access green production solutions and strengthen connections with technology providers and specialized organizations.

Standards for sustainable development

According to experts, applying green production standards has become an unavoidable requirement for businesses. Speaking at the Industry Talk: Green Transformation in Industrial Manufacturing amid New Challenges held in Ho Chi Minh City on May 12, Pham Hoai Trung, Vice Chairman of the Vietnam Green Transition Association (VGA), stated that pressure to reduce emissions and increase production transparency is intensifying. Standards such as ESG (Environmental, Social and Governance) are not only risk-management tools but also a “multi-standard system” that supports businesses in moving toward sustainable development.

However, one major challenge is that Vietnam still lacks a unified ESG evaluation framework suitable for domestic enterprises. Although general criteria for green production have been established, detailed guidelines and assessment tools for specific industries and sectors remain insufficient. Developing an effective set of criteria requires consideration of each industry’s characteristics and environmental impact levels. Once a transparent evaluation system is in place, businesses with high ESG ratings will enjoy significant advantages in accessing international partners, joining sustainable supply chains, and enhancing market credibility.

Businesses also face financial difficulties in pursuing green transformation. Green credit remains limited, and most available funding is concentrated in renewable energy projects. Meanwhile, manufacturing enterprises still lack suitable lending mechanisms for green transformation initiatives. As a result, many businesses struggle to secure investment capital for green technologies and environmentally friendly production processes.

Nguyen Dinh Quyen, founder of ESG Education & Business and ESG Investment Fund, said businesses that start green transformation sooner will gain greater advantages. Many major corporations have already demonstrated their long-term sustainable development goals by committing to net-zero emissions by 2050 or carbon neutrality by 2040. To fulfill these commitments, businesses must develop detailed roadmaps and clearly define each stage of their emission-reduction efforts. The first step, he said, is to create a “current status picture” to determine where the business stands on emissions and its level of compliance with ESG standards. Once baseline data have been established, businesses can develop emission-reduction strategies and identify the gap between their current position and their long-term goals.

Dong Nai aims to have, by 2030, at least 10% of enterprises in industrial parks adopt resource-efficient and cleaner production solutions, achieving savings in raw materials, water, energy, chemicals, and waste while reducing environmental emissions.

Businesses making strong efforts

Green transformation is not only a challenge but also an opportunity for Vietnamese enterprises to improve competitiveness, expand markets, and develop sustainably.

Tuong Lai Co., Ltd. in Long Thanh Ward is applying productivity improvement tools and developing smart factory systems. The company has also established a research and innovation department to strengthen its position in the supporting industries sector. According to Director Truong Quoc Cuong, the company has implemented a comprehensive productivity and quality improvement project with support from the Vietnam Productivity Institute. Through modern management tools, the company has initially established a lean, transparent, and efficient operational foundation. As a result, labor productivity increased by 20%, overall equipment effectiveness rose from 79% to 87%, production order completion rates reached 98%, and all orders were delivered on time. Building on these achievements, the company has advanced significantly in applying digital technologies to production planning and control.

Similarly, Dong Nai Rubber Corporation has identified its core strategy as increasing product value rather than merely focusing on output volume. The company aims to manufacture green, clean rubber products with high scientific and commercial value, as well as semi-processed materials that can replace fossil-based materials such as silicon and synthetic rubber. Therefore, the corporation’s processing plants continue to upgrade technologies to save energy, reduce emissions, and protect workers’ health. According to General Director Do Minh Tuan, accelerating technological application and green production will also support the company’s expansion into multiple sectors. The corporation is also the first enterprise in Vietnam’s rubber industry to establish a raw material traceability system, helping enhance product credibility and competitiveness in international markets.

Meanwhile, Eco Polymers Co., Ltd. in Ho Nai Industrial Park has achieved partial self-sufficiency in production by reusing recycled materials. By mastering all stages simultaneously, including formula research, material synthesis, mold design, and automated production, the company has maintained stable quality in recycled materials, a factor often viewed as a major obstacle in competition, especially in demanding markets such as the United States and Europe.

By Vuong The – Translated by Mai Nga, Minho