Optimizing productivity for green and sustainable manufacturing

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Amid rising input material costs and increasingly stringent sustainability requirements, Vietnamese enterprises are facing a new challenge: optimizing productivity while greening production. Rather than viewing productivity and environmental performance as separate objectives, integrating these two factors is becoming a critical management solution that helps businesses enhance competitiveness and achieve sustainable development.

  1. Productivity and green production: Two sides of the same coin

For many years, businesses have focused on increasing output, reducing labor costs, or improving operational efficiency, while environmental issues have often been managed separately. However, experience has shown that when production processes are optimized and waste is minimized, the consumption of energy, water, and raw materials can also be significantly reduced.

This is where productivity and green production intersect: businesses can simultaneously lower costs and reduce their environmental footprint.

  1. Resource savings through operational efficiency

A standardized operating process can generate substantial benefits for both economic performance and environmental protection.

Reducing energy consumption: When machinery operates at the appropriate capacity and production schedules are organized efficiently, idle running and inefficient operations can be minimized. This enables businesses to significantly reduce electricity costs, which often account for a large share of overall production expenses.

Optimizing water use: In industries such as textile dyeing, food processing, and agricultural product processing, the adoption of water-saving technologies, water reuse systems, and leakage control measures not only lowers operating costs but also demonstrates corporate responsibility toward natural resources.

  1. Reducing defect rates – protecting the environment through quality

Effective quality control is one of the most practical ways to reduce environmental pressure. When product defects and material losses are minimized, businesses can use raw materials more efficiently, reduce waste generation, and lower waste treatment costs.

Continuous improvement tools such as 5S, Kaizen, and ISO 9001 quality management systems help businesses prevent defects at the source, improve production efficiency, and establish a strong foundation for sustainable green development.

  1. Toward a circular economy

Rather than maintaining the traditional “take-make-dispose” model, many businesses are transitioning toward a circular economy. By utilizing by-products as inputs for other processes, reusing materials, or collaborating with recycling partners, companies can extend resource lifecycles, reduce environmental pressures, and create additional value streams.

This is not only an environmental solution but also a long-term strategy that helps businesses reduce dependence on virgin raw materials and improve resilience against market fluctuations.

  1. An essential requirement of the global marketplace

Green productivity is no longer an optional initiative – it is rapidly becoming a business necessity. Major export markets are imposing increasingly stringent requirements related to environmental performance, carbon emissions, resource efficiency, and product traceability.

Businesses that integrate productivity goals and sustainability objectives into their operational strategies at an early stage will gain significant advantages in terms of cost efficiency, product quality, and competitive positioning in international markets.

It is clear that productivity optimization not only enables businesses to operate more efficiently but also serves as a key driver of green production and sustainable development. As every process is improved, every resource is utilized more effectively, and every form of waste is reduced, businesses move closer to achieving sustainable growth in the green economy era.

VNCPC

Why should businesses transition to a circular economy?

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As the global economy faces increasing pressure from resource scarcity, climate change, and increasingly stringent regulatory requirements, the traditional linear economic model of “take – make – consume – dispose” has revealed significant limitations. In contrast, the circular economy is emerging as an inevitable pathway, enabling businesses to optimize operational performance while creating long-term sustainable value.

Below are the key reasons why businesses should accelerate their transition toward a circular economy model.

  1. Addressing Resource Scarcity Challenges

Demand for raw materials continues to rise, while many non-renewable resources are gradually being depleted. This trend drives up extraction, procurement, and transportation costs, directly affecting business profit margins.

At the same time, dependence on imported raw materials exposes companies to supply chain disruptions and geopolitical uncertainties. A circular economy enables businesses to reuse materials, by-products, and waste generated during production, transforming the “output” of one process into the “input” of another. As a result, companies can reduce reliance on imports and gain greater control over production and business planning.

  1. Enhancing Operational Efficiency and Optimizing Costs

One of the most evident benefits of the circular economy is its ability to generate direct economic value. Rather than viewing waste as a cost burden, this model treats it as a valuable resource that can be recovered and utilized.

    • Reducing production costs: Reusing materials, improving energy efficiency, and minimizing waste help businesses significantly reduce operating expenses, waste treatment costs, and logistics expenditures.
    • Addressing overproduction: The circular economy encourages improved product design, focusing on quality and product lifespan, thereby reducing overproduction in a context of limited resources.
    • Extending asset lifespan: Through maintenance, repair, refurbishment, and remanufacturing, businesses can prolong the useful life of machinery, equipment, and materials, maximizing the value of their investments.

One of the clearest benefits of the circular economy is its ability to generate direct economic value.

  1. Meeting Environmental and Climate Commitments

Greenhouse gas emissions and environmental pollution are global challenges. Transitioning to a circular economy is a critical step for businesses seeking to contribute to the achievement of Net Zero emissions by 2050.

This model helps reduce environmental impacts from the design stage onward by:

    • Using renewable energy and environmentally friendly materials;
    • Minimizing waste and eliminating polluting materials;
    • Protecting ecosystems and biodiversity.

Beyond environmental benefits, these efforts also help businesses build a green brand image, enhance corporate reputation, and strengthen trust among customers and communities.

  1. Strengthening Competitiveness and International Integration

In today’s economy, competitive advantage is no longer based solely on cost but increasingly on sustainability and social responsibility. Many companies have successfully adopted innovative business models, such as the “service instead of product” model. For example, Philips provides lighting services rather than simply selling light bulbs, helping optimize resource use while maintaining long-term customer relationships.

In Vietnam, the environmental regulatory framework continues to evolve, particularly through provisions in the Law on Environmental Protection and Extended Producer Responsibility (EPR) regulations. Businesses are increasingly required to collect, recycle, and manage waste generated by their products. Companies that proactively transition to a circular economy will be better positioned to meet international standards, expand export opportunities, and attract green investment capital.

  1. Creating New Market Opportunities

The circular economy is not only an environmental solution but also a driver of innovation. Businesses can unlock various new opportunities, including:

    • Industrial symbiosis: Collaboration among companies where the waste of one enterprise becomes the raw material for another.
    • Sustainable design: Developing products that are easier to repair, upgrade, and recycle, meeting growing consumer expectations for quality and safety.
    • Resource recovery markets: Collecting and recycling waste into raw materials for new production processes, thereby creating circular value chains.

Conclusion

The transition from a linear economy to a circular economy is no longer a short-term trend but an essential journey toward sustainable business development. Shifting the mindset from “take – make – dispose” to “regenerate and restore” enables businesses to overcome challenges related to resources and environmental pressures while creating new drivers of growth. More broadly, the circular economy contributes positively to the prosperity of society and the national economy as a whole.

VNCPC

Greenwashing: Spotting fake sustainability claims

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As climate change becomes an increasingly urgent global challenge, green consumption is emerging as a dominant trend. According to surveys, up to 70% of consumers are willing to pay a premium for environmentally friendly products. However, this growing expectation has also created opportunities for a negative phenomenon known as “Greenwashing.”

The Origin of the Term “Greenwashing”

Greenwashing refers to the practice whereby companies exaggerate, misrepresent, or even fabricate environmental commitments in order to create an “eco-friendly” image and attract customers.

The term “greenwashing” first emerged in the 1960s and became more widely recognized after 2015, following the adoption of the Paris Climate Agreement. Many companies pledged carbon neutrality and Net Zero emissions, but some of these commitments were merely marketing claims unsupported by meaningful actions.

Common Forms of Greenwashing Today

Businesses employ a variety of sophisticated tactics to mislead consumers, including:

    • Using vague terminology: Terms such as “natural,” “environmentally friendly,” and “eco-friendly” are often used indiscriminately without supporting evidence or credible certification.
    • Misleading imagery: Green colors or nature-related images (leaves, water droplets, wildlife) are displayed on packaging to create an illusion of sustainability, even when the product contains harmful chemicals.
    • Highlighting a single positive attribute: Companies heavily promote one minor improvement (such as recyclable packaging) while concealing environmentally damaging production processes behind the scenes.
    • Fake certifications: Self-created labels designed to appear professional but lacking recognition from any reputable independent certification body.
    • Misleading data: Publishing vague claims about environmental performance or green growth without clear timelines, methodologies, or scientific evidence.

Greenwashing refers to the practice whereby companies exaggerate, misrepresent, or even fabricate environmental commitments in order to build a favorable image and attract customers.

Major Companies Involved in Greenwashing Scandals

Even multinational corporations have not been immune to greenwashing controversies:

    • Volkswagen (2015): The company became embroiled in a major emissions-cheating scandal after installing software designed to manipulate emissions tests, despite marketing its vehicles as “clean diesel.”
    • McDonald’s: Replaced plastic straws with paper alternatives, but the paper straws proved more difficult to recycle than expected, while the production process continued to consume significant resources.
    • H&M: Its “Conscious” collection was criticized after reports suggested that up to 96% of its sustainability claims lacked sufficient evidence, while the company’s fast-fashion business model continued to generate substantial environmental impacts.
    • Coca-Cola: Faced criticism for promoting its “Life” product line as a greener and healthier alternative, despite containing high sugar levels and despite the company’s continued status as one of the world’s largest plastic polluters.

The Serious Consequences of Greenwashing

Greenwashing is not merely a communications issue – it can lead to significant risks:

    • Loss of trust: Approximately 66% of consumers express skepticism toward corporate environmental claims. Once trust is eroded, consumers may turn away even from companies that genuinely pursue sustainability.
    • Negative impact on purchasing intentions: Research conducted in Vietnam indicates that greenwashing increases consumer skepticism and directly undermines intentions to purchase environmentally friendly products.
    • Legal risks: In the European Union, the Green Claims Directive requires businesses to substantiate environmental claims with scientific evidence. In Vietnam, greenwashing practices may be subject to penalties under the Competition Law and the Law on Protection of Consumer Rights.

How Can Consumers Become More Informed?

Rather than merely appearing green, businesses should pursue genuine transformation to build long-term sustainable value.

To avoid falling into the greenwashing trap, consumers should:

    1. Read labels carefully: Look for credible certifications such as FSC, Energy Star, or Rainforest Alliance.
    2. Be cautious of absolute claims: Phrases such as “100% green” or “completely harmless” are often signs of exaggeration.
    3. Research the company: Evaluate its level of transparency through sustainability reports and supply chain audits.
    4. Distinguish it from “Greenhushing”: Some companies genuinely perform well but remain silent about their sustainability efforts due to concerns about scrutiny. Honest transparency is often more trustworthy than claims of perfection.

Conclusion: Rather than focusing on appearing environmentally friendly, businesses should pursue meaningful transformation to create long-term sustainable value. A culture of transparency and accountability is the key to protecting the planet while maintaining consumer trust in the modern era.

VNCPC

“BRIDGE for Cities – Belt and Road Initiative: Developing Green Economies for Cities”

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“BRIDGE for Cities – Belt and Road Initiative: Developing Green Economies for Cities” event organized conjointly by UNIDO and the Finance Center for South-South Cooperation. The annual “BRIDGE for Cities” event aims to advance the implementation of the 2030 Agenda and its 17 Sustainable Development Goals as well as the New Urban Agenda.

The 2nd “BRIDGE for Cities” event, which was held in September 2017, attracted over 650 participants from over 136 cities located in 67 countries.

Based on the success of the previous events, we are happy to share with you that the 3rd “BRIDGE for Cities” event will take place from 9 to 11 October 2018 at UNIDO Headquarters in Vienna, Austria. The 3rd event will showcase concrete city cases including urban-industrial development challenges and solutions.

Four case cities – Trieste, Shanghai, Vienna and Chengdu – have been identified for the 3rd event to represent, respectively, the ideal-type of “sustainable city”, of “smart city”, of “liveable city” and of “park city”. Each case city will be the focus of a thematic session on the second day of the event and will organize a booth in the exhibition area to showcase successful projects in the urban development domain, both public- and private-driven.

The registration webpage and the event website for the 3rd “BRIDGE for Cities” event are accessible at: https://www.unido.org/bridge.

VNCPC

106 poor families received financial support from SUPA – a EU-funded project

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The first pilot pangasius batch that was raised and harvested in a model farm under the EU-funded project – “Establishing a Sustainable Pangasius Supply Chain in Vietnam” (SUPA) – was sold to give financial support to 106 poor families in Tan Phu Ward with the approval of the European Union.

This is an unexpected significant achievement of the project after 2 years of construction and 6 months in operation of the model farm. It is located at the study site of Can Tho University to serve research, placement, experiment, and professional training, as well as demonstrate new technologies before applying in pangasius farms and households.

Speaking at the event, Mr Nguyen Van Tam (Chairman) was on behalf of Tan Phu’s People Committee, acknowledged the European Union, SUPA project, and Can Tho University for the contribution, kindness, and humanity to help the poor in the project site, especially on the occasion of upcoming Tet holiday.

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The pictures at donated event

Participating in this event were representatives of Tan Phu ward, Can Tho University, and SUPA project. On behalf of Tan Phu ward, Mr. Nguyen Van Tam – Chairman, Mr. Pham Hung Thong – Party committee secretary, and representatives of the organizations and unions of Tan Phu ward participated in the event. Dr. Tran Ngoc Hai and Dr. Nguyen Thanh Long – Vice dean of College of Aquaculture and Fisheries of Can Tho University, Dr. Pham Thanh Liem – Deputy Chairman of Freshwater Aquaculture Department, Dr. Nguyen Van Trieu – Director of Centre of High-tech Aquaculture, were representatives of Can Tho University. Importantly, Mr. Le Xuan Thinh, Deputy director of VNCPC/ Project manager of SUPA and 106 poor households presented.

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The speech of Tan Phu’s chairman

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Representatives of the poor and beneficial households

To close the event, Tan Phu’s People Committee highlighted contribution of SUPA and Can Tho University by giving a thankful certificate. Hopefully, the project will be successful and generate more meaningful activities for local people in Mekong Delta region.

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Can Tho University and SUPA received the certificate from Tan Phu’s People Committee

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Representatives from all participated organizations

 

Source: VNCPC Admin

World’s coal power plants consume enough freshwater to sustain 1 billion people – Greenpeace

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The world’s rapidly dwindling freshwater resources could be further depleted if plans for hundreds of new coal power plants worldwide go ahead, threatening severe drought and competition, according to a new Greenpeace International report.

Coal-Fired-Power-Plant

The report is the first global plant-by-plant study of the coal industry’s current and future water demand. The research also identifies the regions that are already in water deficit, where existing and proposed coal plants would speed up the depletion of water resources.

“If all the proposed coal plants would be built the water consumed by coal power plants around the world would almost double. We now know that coal not only pollutes our skies and fuels climate change, it also deprives us of our most precious resources: water,” said Harri Lammi, senior global campaigner on coal at Greenpeace East Asia.

Globally, 8,359 existing coal power plant units already consume enough water to meet the basic water needs of 1 billion people. A quarter of the proposed new coal plants are planned in regions already running a freshwater deficit, where water is used faster than it is naturally replenishing, which Greenpeace calls red-list areas.

The top countries with proposed additional coal plant capacity in red-list areas are China (237 GW), India (52 GW) and Turkey (7 GW).  Almost half of the proposed Chinese coal fleet is in red-list areas. In India and Turkey this figure is 13%.

Coal is one of the most water-intensive methods of generating electricity. According to the International Energy Agency, coal will account for 50% of the growth in global water consumption for power generation over the next 20 years. Greenpeace research shows that if the proposed coal plants come online, their consumption of water will increase by 90%. Given the deepening water crisis in the major coal power bases, it is unbelievable that plans for hundreds of new coal plants are even being considered.

“Governments must recognise that replacing coal with renewable energy will not only help them deliver on their climate agreements, but also deliver huge water savings. It’s more urgent than ever that we move towards a 100% renewable future,” said Iris Cheng, lead author of the Greenpeace International report.

Greenpeace proposes three key policy steps, which, taken together, can turn around the coal industry’s water use:

  • An immediate moratorium on coal expansion in regions with high water stress, and a transition from thirsty coal to energy that uses little or no water, like solar PV and wind.
  • Replacing the planned coal plants in the red-list areas with renewable energy, such as solar PV and wind power, would avoid consumption of 1.8 billion cubic metres of water per year in China, and 1.2 billion cubic meters per year in India.
  • Closing plants that have been operating for 40 years. The US could save a staggering 9 billion cubic meters of water by shutting down its old coal power plants.

Source: Greenpeace.org