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Economic development associated with environmental protection

Việt NamViệt Nam07/09/2023

Gradually forming a circular economy

In April 2023, for the first time, the Vietnam Federation of Commerce and Industry (VCCI) announced the PGI (Provincial Green Index) within the framework of the Provincial Competitiveness Index (PCI) Announcement Ceremony. According to Deputy Secretary General, Head of the Legal Department of VCCI - Dau Anh Tuan, PGI encourages and promotes the efforts of provincial and municipal governments towards the development of the private sector in the spirit of the National Green Growth Strategy and the National Strategy for Response to Climate Change (CC).

The Mekong Delta (MD) is expected to be most severely affected by climate change. The world economy in general, Vietnam in particular, and the Vietnamese business community are facing many changes, including two major trends.

Firstly, we must adapt better to unusual and unpredictable conditions; secondly, we must develop “greener”. With the above trends, Vietnam has oriented FDI attraction in the coming time to be “greener”, with better quality, higher technology, and bring higher added value.

GB Steel Structure Factory (Thuy Tay Commune, Thanh Hoa District) uses new technology to help reduce environmental pollution.

Notably, at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change, Vietnam committed to bringing net emissions to zero by 2050. This demonstrates the great political commitment and determination of the Party and State in promoting economic transformation, contributing to solving the major global challenges of climate change and current environmental issues.

At the Regional Workshop on Economic Development in Association with Environmental Protection and PGI Introduction in Tra Vinh Province in May 2023, Vice Chairman of the Provincial People's Committee - Huynh Van Son shared that in the field of investment promotion, attraction and licensing, Long An always pays attention to economic development in association with environmental protection. The province implements the motto of not trading the environment for the economy; selecting and prioritizing attracting investors with environmental protection awareness and "green" projects, high-tech projects, clean industrial development projects, using renewable energy, minimizing environmental pollution.

Long An is currently one of the localities attracting domestic and foreign investment quite well in the Mekong Delta as well as the Southern Key Economic Zone. In particular, the province prioritizes attracting investment in high-tech projects. Typically, the Coca-Cola Factory of the Coca-Cola Group invested in Phu An Thanh Industrial Park, Ben Luc District.

With a total investment of over VND 3,100 billion, the Coca-Cola Factory in Long An is a project applying smart technologies, aiming at a green and circular economic model. The factory is designed to minimize negative impacts on the environment, saving electricity, water, raw materials through the use of solar energy and biomass fuels to replace fossil fuels.

This project is developed in line with the province's sustainable development goals; at the same time, it contributes to the realization of Vietnam's commitment to reduce net emissions to zero by 2050.

Workers operate equipment at GB Steel Structure Factory (Thuy Tay Commune, Thanh Hoa District). This is a factory with new technology to help reduce environmental pollution.

In April 2023, Duy Tan Recycled Plastic Joint Stock Company (Duc Hoa Plastic Industrial Park, Duc Hoa Ha Commune, Duc Hoa District) inaugurated the first phase of the factory with a production capacity of up to 30,000 tons/year. The factory is operating according to the "3 no" criteria in the production process: No waste, no air emissions, no wastewater. Applying this criterion not only helps the Company promote production without causing environmental pollution but also pays more attention to reusing energy sources in production.

The recycling technology that Duy Tan Recycled Plastics Joint Stock Company’s factory is applying is “bottle to bottle”, each used plastic bottle will be recycled into plastic granules, creating a new plastic bottle loop that helps reduce the use of fossil fuels. From there, gradually perfecting the circular economic model in plastic waste management, helping to minimize environmental damage, moving towards a green economy and contributing to promoting businesses to increase the use of recycled plastic in packaging production.

In 2022, the factory recycled over 1.3 billion plastic bottles. The number of recycled plastic bottles not only provided raw materials for major fast-moving consumer goods (FMCG) brand partners in Vietnam but also exported 4,200 tons to 12 countries including the United States and Europe. According to the plan, in phase 2, the factory will increase its processing capacity to 60,000 tons of plastic per year, equivalent to 4 billion water bottles to be recycled.

Don't trade the environment for economics

According to the results of the PGI 2022 announcement by VCCI, Long An achieved 15.04 points, ranking 28th in the country and 3rd in the Mekong Delta region. Aiming for green growth and sustainable development, the Provincial People's Committee has just issued a plan to promote the implementation of tasks and solutions to improve and enhance PGI in 2023, striving for the province to be in the top 10 in the national PGI rankings in 2023. According to the plan, the province will develop and plan policies, contributing to promoting the development of an environmentally friendly business ecosystem, increasing the attraction of investors with environmental protection awareness and "green" and quality projects for the province.

The slaughterhouse at the MeatDeli Processing Complex under Masan Group complies well with environmental protection regulations.

In addition, the province will accelerate the progress of technical infrastructure projects, ensuring synchronization and keeping up with the pace of economic and industrial development of the province. The province will focus investment resources on effective drainage and flood prevention projects to minimize the impacts of natural disasters and climate change on business operations; increase afforestation and tree planting to minimize the negative impacts of climate change, promote green growth and sustainable development.

The province also continues to ensure compliance with minimum environmental standards by enhancing the capacity to collect and treat domestic solid waste generated in the province, through calling for investment and mobilizing support resources. The authorities continue to inspect, examine and control facilities with high risk of causing environmental pollution, prevent and respond to environmental incidents, and resolutely not allow facilities to operate without completing environmental protection works. For enterprises, strengthen guidance and dissemination of environmental laws and environmental protection solutions in various forms, encourage greening of production and business models through specific policies and support programs.

According to Vice Chairman of the Provincial People's Committee - Huynh Van Son, the province will review and promulgate legal documents on environmental protection under the authority of the Provincial People's Committee to stipulate and provide detailed instructions on the contents assigned in the Law on Environmental Protection 2020 and deploy them for easy implementation by the business community.

It is expected that the solutions proposed by the province will be a great driving force for the province to continue to reform, innovate and make further progress in performing its tasks, for the sustainable development of the province, contributing to improving the business environment, promoting the construction of an environmentally friendly business ecosystem in the province./.

PGI consists of 4 component indexes:

1. Strengthening the reduction of environmental pollution and negative impacts of climate change.

2. Strengthen compliance with minimum environmental standards.

3. Strengthen the leadership role of provincial authorities in environmental protection.

4. Preferential policies and support services for businesses in environmental protection.

Gia Han


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