Cleaner production toward a circular economy

The circular economy and cleaner production are emerging as essential pathways for development as countries pursue green growth, lower greenhouse gas emissions, and advance sustainable development goals. Nevertheless, many enterprises continue to face significant challenges in making the transition.

Production activities at Domilk JSC in An Phuoc commune. Photo: Vuong The.

Investment in technology, finance, data systems, training, and the development of a green workforce are considered essential factors for enterprises seeking to move toward cleaner production.

Businesses take the initiative in greening production

Green development and cleaner production have become key solutions for enterprises striving to meet increasingly stringent standards in both international and domestic markets.

Nestlé Vietnam Co., Ltd., located in Bien Hoa 2 Industrial Park, has set a target to reduce emissions by 50% by 2030 and achieve net-zero emissions by 2050. To achieve these targets, the company is focusing on two key areas: promoting regenerative farming and integrating shade-tree cultivation into sustainable coffee production; and improving operational sustainability through energy-saving measures, greater use of renewable energy, circular waste-management practices, and reduced reliance on virgin plastics in packaging.

Likewise, Domilk JSC in An Phuoc commune has placed green and safe production at the center of its development strategy. The company recently introduced its ESG+ Code of Conduct on sustainable governance and business ethics as part of efforts to further strengthen and standardize its governance framework.

According to Vo Van Manh Em, the company’s standing deputy general director, Domilk has implemented a range of cleaner-production measures to reduce its carbon footprint. The factory has been optimized to minimize electricity and water consumption while improving overall energy efficiency. At the same time, the company is gradually increasing the use of recycled packaging materials. Beyond its internal operations, Domilk has sought to encourage environmentally responsible behavior within the community through initiatives such as its waste-for-gifts program, which allows consumers to exchange 50 empty product packages for a new item. The initiative is viewed as another step in reinforcing the social responsibility of the Long Thanh-based dairy and confectionery brand toward environmental protection and consumer health.

The shift is not confined to industrial manufacturing enterprises. Many agricultural cooperatives have also made the transition boldly. Thanh Binh Agricultural Cooperative in Bau Ham commune has invested in cold storage systems and deep-processing lines to produce value-added products such as dried bananas, banana powder, and dried banana stems. According to Director Ly Minh Hung, the cooperative applies a circular agriculture model by using agricultural by-products as organic fertilizer for crops. This endeavor helps reduce input costs, contribute to environmental protection, and sustainably increase production value.

Technology and human resources remain critical challenges

Despite growing momentum, cleaner production remains only one component of the broader transition toward green and sustainable business models, and significant obstacles remain. Many enterprises continue to operate under the traditional linear economic model of “extract – produce – consume – dispose.” In contrast, the circular economy requires businesses to rethink waste as a resource that can be reused, recycled, or transformed into new value. Such a shift extends beyond production activities and demands changes in business strategies and corporate governance models. Financial and technological constraints remain particularly challenging for small and medium-sized enterprises.

Another major challenge is the shortage of human resources capable of supporting green transition and circular economy initiatives. Green transformation requires employees with knowledge and skills in environmental management, cleaner production, circular economy practices, ESG standards, and sustainable development governance.

According to Dr. Nguyen Thuy Lan Chi, Director of the Institute for Safety, Health and Environmental Research and Vice Chairwoman of the Dong Nai City Chemical Society, one of the biggest barriers today is the gap in implementation capacity within enterprises. Many businesses recognize the importance of green transformation. However, they still lack personnel with the knowledge and skills needed to translate requirements for the circular economy, ESG, greenhouse gas inventories, and cleaner production into concrete plans and actions. Therefore, along with investment in technology, finance, and data, as well as leaders’ commitment to implementation, training, and the development of green human resources, these should be seen as priority solutions for businesses to carry out the transition effectively and sustainably.

Dr. Chi also emphasized that technological innovation and digital transformation must go hand in hand with green transition efforts. Technological innovation serves as the core driver enabling enterprises to realize cleaner production and circular economy objectives. Businesses should prioritize investments in energy-efficient, low-emission, and environmentally friendly technologies that use resources more effectively. Meanwhile, outdated production lines should gradually be replaced with modern systems that deliver higher productivity while consuming fewer resources. In parallel, enterprises should accelerate the adoption of renewable and clean energy sources to reduce dependence on fossil fuels and lower greenhouse gas emissions.

Within its industrial promotion programs, Dong Nai City is moving beyond traditional goals such as saving electricity and water or reducing dust emissions. Instead, it is shifting toward a broader circular-economy model to foster sustainable production and consumption. During the 2026–2030 period, industrial promotion initiatives will prioritize resources for the development of five pilot models on sustainable production and consumption based on circular-economy principles at rural industrial establishments.

By V.The – Translated by M.Nguyet, Minho