Binh Duong getting to Net Zero

Speaking at the Workshop, Standing Vice Chairman of the PPC Mai Hung Dung said that the workshop aimed to discuss clean energy technologies that support Viet Nam's sustainable development in the manufacturing sector, focusing on energy-saving technologies and decarbonization solutions; exchange ideas between the US and Vietnamese experts and energy industry leaders; promote the products, services, expertise, and experience of US companies in the areas of energy efficiency, renewable energy deployment and decarbonization of the manufacturing sector.

Delegates attend the Workshop.

To adapt to fluctuations created by geopolitical factors and the 4.0 industrial revolution that cause unpredictable variables, Binh Duong has been developing a new ecosystem - a new development model, complementing the Industry-Urban-Service model, that is an ecosystem of innovation and science and technology, building smart industrial parks, sustainable, ecologically smart cities. It would bring Binh Duong's industry to a higher segment, gradually building a new economic development engine to replace labor-intensive and land-intensive, actively participating in the process towards net zero emissions by 2050 to which the Government of Viet Nam has committed.

Mr. Mai Hung Dung – Standing Vice Chairman of the PPC speaks at the Workshop.

According to the Standing Vice Chairman of the PPC, achieving net zero emissions not only solves environmental and sustainable development issues but also tests the local governance capacity. As a major manufacturing center of Viet Nam, Binh Duong commits to deeply participating in the process of bringing net emissions to zero, with the desire to contribute to building a sustainable future for Viet Nam in particular and the world in general.

Mr. Nguyen The Duy - Director of English-speaking markets, Becamex IDC Corp shares clean energy development opportunities in industrial parks invested by Becamex IDC

Sharing at the Workshop, the Becamex IDC representative said that Binh Duong province is aiming to build a sustainable environmental system according to the Government's Net Zero roadmap. Accordingly, the province is implementing a policy of technology application and green development with the transition to a model of ecological industrial park - industrial symbiosis, smart traffic planning, smart technology, green development with the restoration of canal corridors and parks along the river, the establishment of green belts in parallel with urban - industrial development, etc.

Binh Duong set the goal of converting industrial parks (IPs) and developing ecological IPs. Specifically, at least 20% of enterprises in IPs must apply solutions to use resources effectively, clean production, reserve at least 25% of the IP area for green trees, traffic, and shared service infrastructure, and ensure housing and social, cultural, and sports facilities for workers. Along with that, the province also aims at maintaining and developing ecological corridors, river, and canal systems to ensure the life of the land, effectively implementing the industrial urban model - service technology urban model and sustainable green ecosystem.

Develop policies to support clean energy development

At the Workshop, experts and speakers exchanged contents such as a case study on eco-IPs in Viet Nam presented by Becamex IDC representatives; a study on opportunities to develop eco-IPs in Viet Nam; IFC's initiative to promote green and resilient buildings in emerging markets; activating the decarbonization process of mission-critical industrial systems. Delegates discussed issues of industrial decarbonization, industrial energy efficiency international financial support programs, and green financing opportunities to promote sustainability in the manufacturing industry.

According to experts, in 2023, Viet Nam experienced many peak heat waves, causing the electricity demand of households and production and business enterprises to increase. Therefore, using energy economically and effectively is a practical solution to help improve economic efficiency, while helping to preserve national energy resources, protect the environment, and reduce greenhouse gas emissions, contributing to minimizing the impacts of global climate change.

Speakers discuss issues related to clean energy at the Workshop

To achieve the above goal, manufacturing enterprises increasing the implementation of energy-saving solutions not only helps enterprises save investment costs and reduce operating costs but also makes an important contribution to reducing power supply pressure for the system, thereby improving economic efficiency. In particular, in the context of fuel and energy sources becoming increasingly scarce, using energy economically and effectively contributes to reducing dependence on energy imports.

Speakers had useful shares about the role of energy saving as well as the possibility of realizing these goals, especially in the context of Viet Nam's commitments to net zero emissions by 2050.

According to a representative of the World Bank (WB), IPs play an important role in promoting emissions reduction, and investing in green IPs helps improve the labor productivity of enterprises in IPs. Recognizing this, IPs have invested in infrastructure and achieved improvement indicators. Southeast Asia is the leading region in promoting green IPs. In Viet Nam, the WB has coordinated with Ministries and branches to implement green programs and research Viet Nam's resources to reduce emissions. The WB has chosen Becamex IDC as a partner to implement green projects because it has many IPs operating in the localities and modern investment infrastructure and high-quality services; determination to implement green initiatives, commitment to the agenda, and green IPs. The WB has researched solutions including installing rooftop solar power in IPs. These solutions can make a profit without funding, enterprises can take advantage of 19% of the IP's roof area to generate 44 MW of electricity, with a recovery time of about 4.4 years; the internal capital return rate is 18%; generating 0.21 million tons of CO2 reduction. Installing rooftop solar power is a solution that can be applied and expanded in all IPs in Viet Nam. If this solution is implemented, Viet Nam can reduce total greenhouse emissions by 5%.

However, currently, direct electricity purchase agreements and power network infrastructure capacity in Viet Nam still face many difficulties. Therefore, it is not attractive for enterprises to invest in this field. Besides, Viet Nam still has limited access to green finance. Viet Nam is slow to catch on in the green bond market compared to other countries in the region. The WB recommended that the Vietnamese Government build a framework of improvement indicators (EIPs) that can be easily measured and develop a set of model EIPs to help investors compare; and take advantage of IPs to produce renewable energy through investors. At the same time, the province must consider simplifying the licensing process and adjusting management regulations to minimize difficulties in the implementation of IPs, helping investors better access the market.

Introducing the support program of V-Leep II (2021 - 2025 period), Mr. Nguyen Hai Duc said, V-Leep coordinates with the Ministry of Industry and Trade to support Viet Nam's transition to a clean, secure, and market-oriented energy economy through Advanced energy systems including new technologies, renewable energy, efficient energy use, demand management, distributed energy, smart grid applications, efficient thermal power generation, etc. This is a key energy program of the United States Agency for International Development (USAID) in Viet Nam, which is implemented by Deloitte Consulting LLP. The project's goal is to increase the deployment of advanced energy systems; promote competition in the energy sector; and improve the operational efficiency of the energy sector in Viet Nam.