On October 24, 2024, the Seminar "Greening" chemical and fertilizer production: Effective competitive opportunities for businesses took place, organized by Industry and Trade Magazine.
Investment costs for green technology are still very high.
Greening industry is becoming a development trend that brings efficiency in economic growth, solves social problems and overcomes the consequences of environmental pollution. Currently, domestic and foreign markets also continuously have new regulations related to green production and green growth, requiring goods to have adaptive solutions.
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| Overview of the Discussion |
Meanwhile, chemical and fertilizer production are industries with high potential for causing high emissions and using a lot of energy.
According to Mr. Phung Ha, Chairman of the Vietnam Fertilizer Association, green production is an inevitable trend, not only in the fertilizer industry, the chemical industry in general or fertilizer in particular.
As one of the 10 sub-sectors of the chemical industry, according to Mr. Ha, when producing green, it is necessary to ensure both sustainable development and effective competition, because of the trend of smart consumption, when choosing a product, the first thing will be quality, price, then choosing the brand. "If a business produces in a green direction, the brand will be more famous. Accordingly, green production, that is, associated with green agriculture , focuses on saving energy and natural resources in the input, and the output must ensure the environment and must be sustainable" - Mr. Phung Ha stated and said that the use of fertilizer is quite wasteful. Citing statistics from IFA ( International Fertilizer Association), according to Mr. Ha, the average world uses only about 135 kg-140 kg/hectare, while in Vietnam it is up to 400 kg.
According to Mr. Phung Ngoc Bo, Head of Technical Department of Vietnam Chemical Group, chemical enterprises have realized the importance of eliminating pollution sources and environmental management: “ Eliminating waste not only brings environmental benefits but also helps improve the position of enterprises when integrating into the global supply chain, especially accessing strict markets like the EU ” - Mr. Bo said.
However, the Minister also acknowledged that the biggest challenge at present is that the investment cost for green technology is still very high. The cost of technology and the price of green products are still much higher than that of conventional products, requiring a long time to balance economic and environmental benefits. This shows that businesses need more support from the state to access investment capital and funding for green projects.
In addition, the Minister acknowledged that although mechanisms and policies are available, access to them is not really clear for the chemical industry, not to mention the difficulty in accessing preferential financial resources for technology investment and green transformation...
Regarding the issue of greening, Ms. Nguyen Thanh Phuong, Department of Industrial Safety and Environment Techniques (Ministry of Industry and Trade) said that awareness of greening industry is the biggest difficulty, because there are no specific regulations, so implementation is still difficult.
On the other hand, the implementation capacity for chemical enterprises in particular, especially related to greening industry such as converting input materials to converting energy sources, changing technologies, applying new technologies, green technologies, more environmentally friendly technologies... all require large investments, so it will be difficult for small and medium enterprises.
“ Although Vietnam has policies towards greening industry as well as using natural resources effectively and using energy economically and efficiently, its application is still very small and not uniform ,” said Ms. Nguyen Thanh Phuong.
Need "supportive" policy mechanism
Mr. Phung Ngoc Bo proposed preferential tax and investment capital mechanisms for green projects. Currently, the cost of producing green products is still high, and businesses have difficulty accessing green investment funds. The representative of this group also proposed reducing VAT on recycled products from gypsum residue to increase competitiveness, while adding more standards and technical regulations for the treatment and use of gypsum residue in areas other than cement.
Meanwhile, Mr. Phung Ha proposed that the state focus on developing organic fertilizers and supporting research on new generation fertilizers.
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| Greening chemical and fertilizer production creates opportunities for businesses to compete effectively. Photo: TH |
According to Professor, Doctor Bui Chi Buu, Former Director of the Southern Institute of Agricultural Science and Technology, Technical Advisor to the Vietnam-Japan Fertilizer Company, to increase fertilizer efficiency, we must rely on the most modern approach, which is precision agriculture, which has computerization and everything to advise farmers on how to fertilize, how to do it...
At the COP26 conference, Vietnam pledged to develop and implement strong greenhouse gas emission reduction measures using its own resources, together with the cooperation and support of the international community to strive to achieve net zero emissions by 2050.
A representative of the Department of Industrial Safety and Environment said that in the coming time, the Ministry of Industry and Trade will strengthen the direction and implementation of related tasks assigned in the Law on Environmental Protection and documents guiding the Law on Environmental Protection in general, related contents such as developing environmental industry, responding to climate change, preventing and responding to environmental incidents, circular economy, green growth, etc.
In addition, the Ministry of Industry and Trade continues to work with the Ministry of Natural Resources and Environment to find regulations and amend relevant regulations to help businesses implement them most effectively and feasibly.
Currently, the Ministry of Industry and Trade is coordinating with ministries, branches in general and the People's Committees of provinces and cities in particular to complete and submit to the Prime Minister the Environmental Industry Development Program in the coming period, including contents to promote greening of the agricultural sector in general and the chemical industry in particular.
In addition, the Ministry of Industry and Trade will also promote the development of the “Green Industry Project for the period up to 2030” with the goal of promoting the development of environmental industry, circular economy and reducing greenhouse gas emissions. This is one of the important steps to realize Vietnam’s commitment to zero net emissions by 2050.
Source: https://congthuong.vn/xanh-hoa-san-xuat-hoa-chat-va-phan-bon-tao-loi-the-canh-tranh-cho-doanh-nghiep-354571.html
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