07/12/2017
The development strategy of Việt Nam has presented efforts in solving issues of economic growth, environmental protection, reduction of greenhouse gas emission, saving of natural resources and adaptation to climate change. Green growth has become an inevitable development strategy of Việt Nam, which clearly identifies four priority actions including: development of national institution and green growth plan at localities; reduction of greenhouse gas emission intensity and promotion of the use of clean energy, renewable energy; greening production; greening lifestyles, sustainable consumption. These actions have reiterated the commitments of the Government for a green growth economy, of which sustainable production and consumption play important roles and driving forces for the changes and alterations of the current production and consumption ways.
Sustainable consumption and production circle is the initiative of the United Nations Environment Programme (UNEP). The SCP circle consists of sustainable natural resources management; Design and development of sustainable products; Cleaner production and effective use of natural resources; Sustainable transport; Ecolabel and sustainable product certification; Sustainable consumption; Sustainable marketing, sustainable consumption; Effective management of emission. SCP is a closed circle, of which the management is carried out towards product lifecycle approach. Environmental impacts, social impacts and economic growth are managed at all steps according to product value chain, which bring towards the sustainable development model.
Concept of sustainable consumption and production circle and ecological renewal
Ecological renewal is a tool to support enterprises to contribute significantly to the success of SCP. Ecological renewal is considered as a new approach for strategic business, of which enterprises consider sustainability to be one of their business strategies, implementing interference from the development of the core business strategies to changes in the business models and manufacturing activities of the enterprise. Approaching towards lifecycle and cooperation among stakeholders in the whole value chain of the enterprises is the key to ecological renewal.
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| Figure 1 - Sustainable Consumption and Production Circle |
Ecological renewal will support enterprises to explore and participate in new markets and expand the markets, including new market shares and unexplored markets for renewal solutions, participate in global supply chain and purchase green products. At the same time, it will increase profits for the value chain through effective usage of natural resources and human resources, maximize procedures, and use renewable energy sources, environmentally friendly products and packaging; meet environmental regulations and standards; attract green financial sources; increase productivity and technical capacities through knowledge enhancement, skills and linkage with laborers. The SCP policy framework is a prerequisite condition to promote ecological renewal in enterprises and on the other hand, ecological renewal will contribute significantly to the success of SCP.
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| Figure 2 - Enterprise ecological renewal towards product lifecycle approach |
Policies supporting SCP
Environmental protection has been referred to in the policy framework of Việt Nam including laws, strategies, national action plans, and national target programs. In general, all policies directly or indirectly promote SCP, but focus mainly on the areas of energy, industry and agriculture.
Energy: The Law on Energy Conservation and Efficient Use (promulgated in 2010) and the Việt Nam National Energy Development Strategy to 2020, Vision to 2050 (promulgated in 2007) are bases for the development of other programs and initiatives such as: National target program on energy efficiency and conservation during 2012 - 2015; national project on energy conservation and efficient use, in order to promote the development of the energy market in Việt Nam and positive impacts to the performance of enterprises towards sustainable development. Enterprises are encouraged to save energy and efficiently use energy through financial and technical support for energy auditing, replacement of backward technologies, application of advanced solutions on energy consumption and use of renewable energy.
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| Energy saving is considered as an optimum solution to reduce costs for enterprises in order to increase profits |
Industry: The national strategy on cleaner production (2009) is the foundation for the development of follow-up policies, which positively influence the production and business of many enterprises towards SCP approaches by applying cleaner production. These policies support the application of advanced technologies, and renew and transfer technologies in enterprises towards sustainable development.
The national strategy on industrial development to 2025 and vision to 2030 (2014), followed by the Master Plan on industry development to 2020 and vision to 2030 emphasized on sustainable production and the close link with sustainable consumption which is the driving force for the green industry. The agenda of these policies focus on changing industrial production models towards applying clean energy, environmentally friendly technologies, environmental management models, cleaner production, efficient and effective use of natural resources, and development of the environmental industry.
National action plan on SCP 2010 - 2020 was promulgated in 2016 which is a substantial step in finalizing the policy framework and developing tools to promote ecological renewal in enterprises.
Agriculture is a priority field, contributing significantly to the green growth of Việt Nam. The national project on “Restructuring of the agriculture sector” (2013) has promoted to form an agriculture sector of high added value, enhanced natural resources management, reduction of greenhouse gas emission, and development of the sustainable agriculture value chain. The Master plan on development of high technology zone for agriculture to 2020 (2015) has laid out the support of the Government for sustainable value chain investors; the credit policy for agriculture and rural development (2015) has encouraged agriculture production to apply the alliance model and high technologies in business value chain. Since 2008, policies on agriculture have been formulated, which creates the legal environment to support SCP in the agriculture sector.
In general, current policies relating to SCP have basically created favorable conditions for enterprises to implement ecological renewal; however, the implementation of ecological renewal in enterprises is still very slow. Majority of policies relating to SCP are incoherent and “localized”, and focus mostly on particular sectors such as energy, industry, and agriculture. Multi-sectoral supporting policies such as natural resources procurement, products, services and efficiency and cleaner production are very limited.
Some policies are promulgated in order to promote SCP and encourage enterprises to drive towards sustainable business. However, almost all policies and regulations are focusing on the source part (first half of the SCP circle relating to production) while policies/tools to promote the end part (second half of the SCP circle relating to sustainable consumption and disposal) are still limited.
Product design and improvement is considered as a key step of the SCP circle in order to create sustainable products. However, policies/programs relating to product design and improvement towards sustainable development are limited. Policies promoting sustainable distribution and marketing have not been promulgated, except some policies to support to participate in exhibitions and commercial fair trade. Currently, the program on limitations of use of non-degradable plastics and replacement of environmentally friendly bags has been implemented but the result is inconsiderable. The sustainable procurement program plays important roles in promoting sustainable consumption behaviors. This is considered as an effective tool to enhance the demand of environmentally friendly products; however this tool has not been promulgated.
The State has promulgated policies to encourage enterprises to convert to sustainable business models by investment supports and tax reductions, infrastructure investments and other credits from development funds or official development assistance (ODA) or from international financial organizations, and loan guarantee; however, these funds are very limited.
Recommendations to finalize the SCP policy framework to support ecological renewal
Reviewing and finalizing promulgated policies relating to SCP at central and local levels such as efficient use of natural resources and energy, renewal in innovation and research, development; cleaner production; eco-labelling and waste management programs…
Promoting the application of economic tools in order to promote SCP and ecological renewal such as policies to promote sustainable investment and business, tools to promote the models of public - private partnership; international trade and import export tax applied for sustainable products and other incentives.
Integrating the National action plan on SCP into sectoral and provincial socio-economic development strategies.
Establishing the ecological renewal Fund, or mainstream into existing funds (Cleaner production fund, Science and Technology Fund, Innovation Renewal Fund, Environmental Protection Fund, central and provincial SME support Fund) and mobilize other financial sources from individuals, private and international organizations, large companies, donors and enterprises to contribute to the ecological renewal.
Nguyễn Thị Bích Hòa
Asian Institute of Technology in Việt Nam
