Old technology factories and the problem of green transformation

(Chinhphu.vn) - From 2026, the European Union will officially apply a cross-border carbon tax, directly taxing products imported into the EU if they exceed the permitted emission level. This forces factories using old technology in Vietnam to quickly convert to maintain competitiveness.

Smart and Sustainable Manufacturing Forum organized by Vietnam Industrial Zone Information Portal - VIZ. Photo: VGP

This information was emphasized by experts and business leaders at the Sustainable Smart Manufacturing Forum recently organized by the Vietnam Industrial Park Information Portal - VIZ, when assessing the challenges and opportunities that old technology factories are facing in the global green transformation trend.

Technical barriers turn into tariff barriers

"This is the first time that technical barriers have been transformed into tariff barriers, directly affecting the competitiveness of Vietnamese enterprises. Not only export enterprises, but also countries like Vietnam will be affected if they do not adapt promptly," warned Mr. Dang Hai Dung, Deputy Director of the Department of Green Transformation, Industrial Promotion and Sustainable Production ( Ministry of Industry and Trade ).

According to Mr. Dung, the current challenges of factories using old technology come not only from outdated production lines, but also from great pressure from the global market. New regulations and standards on sustainable development - especially in key export markets such as the EU and the US - are becoming increasingly stringent.

In addition to the CBAM mechanism, other mechanisms such as the Green Deal Directive or the EU's Green Taxonomy will also limit investment flows from Europe to countries with production that does not meet green standards and is not transparent about emissions.

"Therefore, compliance with green standards is no longer an option, but a mandatory condition if we want to maintain exports and attract investment," Mr. Dung affirmed.

Those Big challenge for old technology factory

Specifically, the representative of the Green Transformation Department pointed out 3 major challenges that businesses using old technology are facing:

First, the challenge of technology and emission measurement. Meeting carbon footprint standards requires businesses to have transparent and accurate emission management systems, certified by independent certification organizations. This entails investment in measurement equipment, digital technology applications and data management software. However, most old factories today do not have the technology platform ready for this.

Second, there is the challenge of human resources. Operating a green production line requires a team of engineers and technicians who are well-trained in cleaner production, energy management and emission control. However, the workforce that meets these requirements is still very limited, especially in localities outside the center or in old-generation industrial parks.

Third, there are challenges in terms of information and compliance costs. Many businesses currently do not have full information about international standards, lack access to reputable certification organizations, and have difficulty declaring emission data as required by foreign partners. The cost of independent measurement, monitoring, and certification services is still a heavy burden for small and medium-sized enterprises.

Mr. Vo Van Than, Chairman of the Ho Chi Minh City Industrial Zones Association (HBA) speaking at the Smart Sustainable Manufacturing Forum. Photo: VGP

From a practical perspective, Mr. Vo Van Than, Chairman of the Ho Chi Minh City Industrial Zones Association (HBA) frankly shared: "Currently, following the general trend, businesses are forced to transform to survive and develop. However, reality shows that many businesses are still very slow in implementation."

According to Mr. Than, the main reason is that business owners' awareness of the importance of transformation is still limited. "Many businesses do not know where to start, due to the lack of a clear roadmap and specific instructions. Finally, the lack of financial and technical resources is the biggest barrier that prevents them from transforming even if they want to," Mr. Than analyzed.

"Especially, in production activities or startups in general, financial factors are always a prerequisite. Without a specific capital support mechanism, businesses will have great difficulty in investing in technological innovation and equipment to meet the transformation trend," the Chairman of HBA emphasized.

From his practical experience, Mr. Vo Son Dien - Chairman of Binh Duong Supporting Industry Association, Director of Riverside Binh Duong Science and Technology Industrial Park Project - Becamex IDC, and an expert with nearly 30 years of experience in developing Industrial Parks also pointed out three bottlenecks that are hindering the process of industrial model transformation in the Southern provinces, especially the Southeast region:

"First, the cost of land and infrastructure is increasing, making it difficult for small and medium enterprises to access. Meanwhile, industries that use a lot of labor or have low added value will gradually have to move to lower-cost areas such as the Central region or the Red River Delta," Mr. Dien pointed out.

"Second, there is a lack of appropriate financial mechanisms. We do not have a mechanism for land use capital or long-term infrastructure development funds. Disbursement is slow, procedures are complicated, especially related to legal procedures.

"Third, policies are still inconsistent and have not kept up with reality. The boundary between 'eco-industrial parks' and 'high-tech parks' is still vague, causing confusion in licensing and operation."

Mr. Dien proposed that there should be a more transparent and flexible "post-inspection" mechanism instead of focusing on "pre-inspection" through licenses.

Mr. Vo Son Dien - Chairman of Binh Duong Supporting Industry Association spoke at the Forum. Photo: VGP

The role of the State's support and companionship mechanism

Sharing about the role of support mechanisms, Mr. Vo Van Than said: "Previously, Ho Chi Minh City had a number of very effective mechanisms to support businesses in accessing investment capital for production transformation. Specifically, the investment stimulus program from the city budget, supporting businesses to borrow capital with preferential interest rates to invest in technology and equipment innovation, converting conventional production models to smart, sustainable production".

A typical example is Vinh Loc Industrial Park, which has participated in this program to borrow capital to invest in upgrading the industrial park's wastewater treatment system - an important step in the green transformation process.

"I hope that after the recent administrative boundary merger, this stimulus policy of Ho Chi Minh City will continue to be maintained and expanded, especially for small and medium enterprises - the ones facing the most difficulties in the transition," Mr. Than expressed.

To address the above challenges, a representative of the Green Transformation Department shared that the Department is currently coordinating with ministries, branches, localities and the business community to develop specific support mechanisms, including 4 main contents:

Building a technology transformation support center: To provide information, technical services, human resource training, support businesses in determining roadmaps and choosing technologies suitable for new requirements.

Implement energy audit, product life cycle assessment and carbon footprint programs: Through international cooperation projects and green finance mechanisms to support businesses in accessing measurement tools and upgrading operational capacity.

Review and complete the policy system: Including regulations on ecological industrial parks, high-tech parks, green factory construction standards and credit and tax incentives for businesses implementing sustainable transformation.

"We also recommend close coordination between the Ministry of Industry and Trade, the Ministry of Finance and localities to form comprehensive support packages to help businesses overcome initial cost barriers, especially in key industrial production sectors operating inside and outside industrial parks," Mr. Dung proposed.

Need for comprehensive networking platform of Business Associations

Chairman of Binh Duong Association of Supporting Industry Enterprises (BASI), Mr. Vo Son Dien, stated that to develop sustainable industry, especially in the context of digital transformation and green transformation, a strong connection platform between investors, businesses, investment funds and policy-making agencies is indispensable.

"Currently, the number of technology enterprises in industrial parks is still very limited - less than 100 enterprises in the Southern region. Most of them are small and medium enterprises, with weak access to technology, lacking a playground for testing, connecting or accessing policy support," shared the representative of BASI Chairman.

Therefore, BASI hopes to become a platform - a "common home" - to help build smart manufacturing alliances, promote supply chain transformation, support human resource training and develop green industrial models.

BASI also believes that there should be the support of major investors such as Becamex, VSIP, Long Hau... and international partners to form an innovation network, share technology and markets for Vietnamese enterprises, especially in the context of increasing supervision of goods origin, trade defense and requirements for supply chain transparency from major markets.

As Chairman of the Ho Chi Minh City Industrial Zones Association, Mr. Vo Van Than said that it is necessary to have more mechanisms to support investment capital for technological innovation, consulting and training high-tech human resources, connecting businesses with universities and research institutes, and developing support centers for transformation for manufacturing enterprises.

Agreeing with the above viewpoint, Executive Director of the Sustainable Smart Manufacturing Forum, Ms. Nguyen Thi Kim Khanh - General Director of VIZ shared: "Because we see the need for HBA, BASI, or Associations of Manufacturing Industries, Financial Associations, etc. to join hands to create comprehensive connections, thereby building an ecosystem to support sustainable transformation factories, we organized this Forum".

Affirming his commitment to accompany, Mr. Dang Hai Dung emphasized: "Converting to a smart, sustainable production model is an inevitable requirement. However, this cannot be a solo journey of businesses. It must be a joint effort of the entire ecosystem - including the State, schools, businesses and technical and financial support organizations."

"The Ministry of Industry and Trade is committed to accompanying businesses, listening, synthesizing opinions and proposing appropriate policies. We believe that with consensus, sharing and the right policy mechanisms, Vietnam can completely transform successfully to become a green and smart industrial production center of the region," Mr. Dung affirmed.

Because the transformation to sustainable smart manufacturing is not only a challenge but also a great opportunity for old technology factories in Vietnam to improve their competitiveness, participate more deeply in the global value chain and contribute to building a green and sustainable economy.

Source: https://baochinhphu.vn/nha-may-cong-nghe-cu-va-bai-toan-chuyen-doi-xanh-102250711212840412.htm