Environmental Regulations and Sustainability in the Manufacturing Industry

What does it take for factories to grow without harming the planet? In today's world, environmental regulations and sustainability in the manufacturing industry are no longer optional—they're essential. From Vietnam's strict pollution standards to modern green practices, Vietnam factories face real challenges. Are you curious about how to stay compliant while building a greener future? Learn strategic methods and see the role Kizuna plays in driving long-term achievements!

Importance of Environmental Compliance and Sustainability

The importance of environmental compliance and sustainability (Source)

Environmental compliance in Vietnam factories plays a vital role in meeting legal standards. It includes managing emissions, handling chemicals safely, reducing industrial waste, and keeping accurate records. These actions protect natural resources and help factories avoid fines or shutdowns due to violations.

Sustainability focuses on reducing environmental harm during every production stage. From sourcing materials to final disposal, each step must aim to lower energy use, cut pollution, and protect worker health. Sustainable practices also improve long-term efficiency and product value.

Businesses in Vietnam that follow these practices build stronger reputations. Investors and global buyers increasingly favor manufacturers that show care for the environment. Aligning operations with eco-friendly standards creates more growth opportunities while supporting cleaner and safer communities.

Vietnam Factory operations that align with environmental laws can gain a competitive edge in the global supply chain.

Environmental Regulations Applicable to Manufacturing in Vietnam

All Vietnam factories are required to comply with strict environmental regulations. These rules aim to protect natural resources and ensure safer industrial development.

Law on Environmental Protection and relevant decrees & circulars

Environmental Law (Source)

Vietnam's primary environmental legislation is the Law on Environmental Protection (LEP) No. 72/2020/QH14, which took effect on January 1, 2022.

This law outlines the responsibilities of organizations and individuals in safeguarding the environment. It introduces classifications for investment projects based on environmental risk levels, determining the extent of environmental assessment required. The LEP emphasizes public participation in environmental decision-making and integrates environmental protection into national and regional planning.

To implement the LEP, the Vietnamese government issued Decree No. 08/2022/ND-CP on January 10, 2022. This decree provides detailed regulations on environmental licensing, strategic environmental assessment, and environmental impact assessment procedures. It also sets forth guidelines for environmental registration and protection plans for businesses.

Additionally, the Ministry of Natural Resources and Environment (MONRE) released Circular No. 02/2022/TT-BTNMT, effective from January 10, 2022. This circular offers implementation rules for various articles of the LEP, including specific forms and procedures for environmental permits and reports. It also details technical requirements for environmental monitoring and data management.

Technical standards (QCVN, TCVN) on air, water, and noise pollution

Technical standards on air, water, and noise pollution (Source)

Vietnam has established National Technical Regulations (QCVN) and National Standards (TCVN) to control environmental pollutants:

Air Quality: QCVN 05:2023/BTNMT

This regulation sets maximum allowable concentrations for various air pollutants, including particulate matter (PM2.5, PM10), sulfur dioxide (SO₂), nitrogen dioxide (NO₂), carbon monoxide (CO), ozone (O₃), and lead (Pb). It aims to protect public health by defining limits for these pollutants in ambient air.

Surface Water Quality: QCVN 08:2023/BTNMT

The standard QCVN 08:2023/BTNMT defines acceptable limits for critical surface water quality indicators. It provides a framework for assessing and classifying water bodies, ensuring their suitability for various uses, and protecting aquatic ecosystems.

Groundwater Quality: QCVN 09:2023/BTNMT

This regulation specifies acceptable levels of contaminants in groundwater, including pH, total coliforms, nitrate (NO₃⁻), and ammonium (NH₄⁺). It serves as a basis for evaluating and monitoring groundwater quality to safeguard human health and guide its appropriate use.

Noise Pollution: QCVN 26:2010/BTNMT

QCVN 26:2010/BTNMT defines maximum permissible noise levels in different environments, such as residential areas, schools, and hospitals. It aims to minimize noise pollution's impact on human well-being by setting clear limits for various times of the day.

Adherence to these standards is crucial for manufacturers to maintain compliance and minimize environmental impact.

Required procedures: EIA, discharge permits, periodic inspections

Required procedures in manufacturing (Source)

Manufacturing facilities in Vietnam must follow specific environmental procedures before and during operations to remain compliant with legal standards:

Environmental Impact Assessment (EIA):

Before construction or expansion, project owners must prepare an EIA report. This document analyzes the project's possible environmental impacts and proposes solutions to reduce negative effects. Approval from environmental authorities is required before moving forward.

Discharge Permits:

Any facility that discharges wastewater, emissions, or solid waste must apply for an environmental permit. This permit outlines specific discharge limits and treatment methods based on national standards. Facilities must treat pollutants properly before releasing them into the environment.

Periodic Inspections:

After operations begin, companies must conduct regular environmental monitoring. Government agencies also perform routine or unannounced inspections. These checks ensure the facility continues to follow approved standards and permit conditions.

Sustainability Standards and Strategies in Manufacturing

Embracing sustainability in manufacturing is essential for reducing environmental impact and enhancing operational efficiency. Companies across Vietnam are taking steps to encourage long-term, sustainable growth.

Use of clean energy and resource optimization

Use clean energy (Source)

Adopting clean energy sources is a key strategy for sustainable manufacturing.Lego, for instance, invested $1 billion in a Binh Duong facility in Vietnam, which is set to be fully powered by renewable energy by early 2026. The facility utilizes solar panels and energy storage systems to meet its energy needs, aligning with Lego's goal to eliminate greenhouse gas emissions by 2050.

Similarly, Masan High-Tech Materials focuses on energy optimization by collaborating with technology companies and research institutes. In 2023, their initiatives led to a reduction of approximately 14,409 GJ in electricity consumption, equivalent to 973.4 tonnes of CO2 emissions.

Kem Nghia, a leading manufacturer of personal care products, has integrated clean energy into its operations by installing a 2.23 MWp rooftop solar power system at its factory in Ho Chi Minh City. This initiative demonstrates the company's commitment to environmentally friendly production practices.

Waste reduction and recycling in production processes

Reduce waste and recycle in production processes (Source)

Implementing waste reduction and recycling practices is vital for minimizing environmental impact. Masan High-Tech Materials has surpassed a 30% recycling rate by efficiently dividing waste during operations and incorporating it into fresh product offerings. In 2023, they recycled 7.8 million cubic meters of wastewater, representing 76.1% of total water consumption in Vietnam.

URC Vietnam has also prioritized waste management by developing detailed plans for handling household solid waste, hazardous waste, and regular industrial waste. Their factories are equipped with wastewater treatment systems and water recycling programs, contributing to effective waste management and water conservation.

Heineken Vietnam has achieved a 99% recycling and reuse rate of its by-products and waste, effectively eliminating landfill waste. The company has also optimized product distribution, reducing CO2 emissions by 2,000 tons, and improved packaging to cut 273 tons of paper usage in 2020.

Building green corporate culture and social responsibility

Build social responsibility (Source)

Fostering a green corporate culture involves integrating sustainability into the company's core values and operations. Masan High-Tech Materials has been recognized as a 'Vietnam Sustainable Enterprise' for six consecutive years, reflecting its commitment to sustainable practices and community development. The company engages in environmental restoration programs, such as planting over 2,000 trees in waste dump areas, contributing to carbon sequestration and ecological balance.

URC Vietnam emphasizes corporate social responsibility by actively contributing to the community through safe and healthy products, meaningful CSR activities, and proactive environmental initiatives. The company has been honored as one of the Top 100 Sustainable Businesses in Vietnam, affirming its dedication to sustainable values and the development of a green and circular economy.

Unilever Vietnam has made significant strides in sustainable packaging by reducing virgin plastic usage by 55% and ensuring that 62% of their product packaging is recyclable. Additionally, 100% of their hard plastic packaging incorporates recycled plastic, demonstrating a commitment to environmental responsibility.

How Kizuna helps businesses comply with environmental regulations and sustainability development

Kizuna offers comprehensive support to businesses aiming to meet environmental regulations and achieve sustainable growth in Vietnam. Their expertise enables firms to handle complex environmental rules and integrate environmentally friendly solutions.

One of Kizuna's key services is aiding businesses in preparing and obtaining Environmental Impact Assessments (EIA). This involves consulting on procedures, preparing necessary documents, and submitting applications to relevant authorities. Completing an EIA is a mandatory step before commencing manufacturing operations, ensuring that potential environmental impacts are assessed and mitigated.

In addition to EIAs, Kizuna supports companies in acquiring Environmental Compliance Certificates (ECC). This process includes guidance on procedures, document preparation, and liaising with authorities to secure official approvals. Obtaining an ECC is crucial for businesses to demonstrate adherence to environmental standards and legal requirements.

Beyond regulatory compliance, Kizuna promotes sustainable development through its green industrial park model. By integrating eco-friendly infrastructure and practices, Kizuna creates an environment that supports businesses in reducing their ecological footprint. This approach not only benefits the environment but also enhances the corporate social responsibility profiles of tenant companies.

Kizuna enables businesses to effectively comply with environmental regulations and pursue sustainable development in Vietnam by providing these essential services and fostering a green industrial environment.

Final Thoughts

The future of manufacturing in Vietnam depends on strong environmental responsibility and a clear commitment to sustainable growth. By following legal standards and adopting green practices, factories not only protect the environment but also enhance their reputation and attract global partners. Companies focusing on clean energy, waste reduction, and responsible operations build long-term value. With expert support from partners like Kizuna, manufacturers can stay compliant while making a real difference. Choosing sustainable development is no longer a trend—it's a smart, strategic move for lasting success.