Vietnam has experienced rapid economic growth over the past decade, but this growth has also brought severe environmental challenges. To meet these challenges, the Vietnamese government has continuously improved and strengthened its environmental management policies. The revised Environmental Protection Law in 2020 marks a new stage in Vietnam’s environmental management. The law places greater emphasis on the precautionary principle, the polluter pays principle, and encourages clean production and a circular economy. In addition, Vietnam has also introduced a series of supporting regulations, such as Decree No. 40/2019/ND-CP, which further refines environmental management requirements. The implementation of these policies not only improves environmental standards, but also provides clear guidance for companies’ environmental management work.
In Vietnam’s economic structure, small and medium-sized enterprises occupy an important position. They are the main driving force of economic growth and an important source of employment. However, these enterprises often face limitations in terms of funds, technology and talents, and face great challenges in environmental management. Despite this, environmental management of small and medium-sized enterprises is still crucial. First, good environmental management can help enterprises reduce operating costs and improve resource utilization efficiency. Secondly, it can enhance the market competitiveness of enterprises, especially in the international market that pays more and more attention to sustainable development. Finally, active environmental management helps enterprises fulfill their social responsibilities, improve relations with local communities and governments, and lay the foundation for long-term development.
This case library aims to provide Vietnamese SMEs with reference to best practices in environmental management. We have collected successful cases from different industries and organized them by industry and theme. Readers can directly access relevant cases according to their own industry or theme of interest. Each case includes background introduction, measures taken, results achieved, and key experiences, providing readers with comprehensive reference information. We recommend that readers pay attention not only to specific technologies or methods when reading cases, but also to the management concepts and innovative ideas reflected in the cases. At the same time, we encourage readers to creatively apply these best practices in combination with the actual situation of their own enterprises. The case library will be updated regularly to reflect the latest developments and innovative practices in the field of environmental management in Vietnam.
Through this case library, we hope to inspire innovative thinking in environmental management among Vietnamese SMEs, provide practical solutions, and promote experience exchange among industries. Environmental management is not only a responsibility, but also an important guarantee for the sustainable development of enterprises. Let us work together to contribute to building a cleaner and more sustainable Vietnamese manufacturing industry.
1. Textile and clothing industry
The textile and garment industry is one of the pillar industries of Vietnam’s manufacturing industry, and it is also an industry with greater environmental management challenges. In recent years, Vietnamese textile enterprises have made significant progress in environmental management. The following cases show the best practices of some small and medium-sized enterprises in the industry in water resource management, chemical management and energy efficiency.
1.1 Water resources management
Case: Wastewater recycling system in a textile factory
ABC Textile Co., Ltd. in Dong Nai Province implemented an innovative wastewater recycling system in 2020, significantly reducing water consumption and pollutant emissions. The system uses advanced membrane separation technology to treat and purify wastewater generated during the production process in multiple stages. The treated water quality meets the standard for reuse and is used in non-critical production links such as preliminary cleaning and cooling systems.
After implementing this system, ABC Company reduced its daily fresh water consumption by 40% and its wastewater discharge by 50%. Although the initial investment was large, about US$300,000, the project achieved payback within three years by saving water and reducing sewage treatment costs. More importantly, this practice has greatly improved the company’s environmental reputation, won recognition from international buyers, and promoted order growth.
1.2 Chemical Management
Case: Successful implementation of dye safety alternatives
XYZ Garment Factory in Hanoi successfully implemented a dye safety replacement program in 2021, effectively reducing the use of harmful chemicals. The company worked with local research institutions to develop a natural dye based on plant extracts that can replace traditional azo dyes. This new dye not only reduces environmental risks, but also improves product safety and added value.
During the implementation process, XYZ Company faced challenges in color fastness and large-scale production. Through continuous experiments and process optimization, they finally achieved the goal of using natural dyes for 90% of conventional colors. This change greatly reduced the difficulty of the company’s wastewater treatment and reduced the use of chemicals by 60%. At the same time, the product line using natural dyes was favored by the European market, bringing a 20% increase in orders.
1.3 Energy efficiency
Case: Application of solar energy in textile production
DEF Textile Company in Binh Duong Province installed a large-scale solar photovoltaic system on the roof of its factory in 2019, becoming a model for improving energy efficiency in Vietnam’s textile industry. The system has a total installed capacity of 500kWp and can produce about 730,000 kWh of clean electricity per year.
DEF’s solar system is not only used to power lighting and office equipment, but also innovatively integrated into some production processes. For example, they have developed a solar-driven fabric pre-treatment system, which greatly reduces the electricity consumption of this energy-intensive link. Through this measure, the company saves about $100,000 in electricity bills and reduces carbon emissions by about 500 tons each year.
In addition, DEF has also used this green energy practice to enhance its brand image and attract more international customers who focus on sustainable development. Their successful experience has also led other local textile companies to follow suit, forming a positive industry demonstration effect.
These cases demonstrate innovative practices in environmental management in Vietnam’s textile and garment industry. By investing in advanced technologies, developing green alternatives and using renewable energy, these enterprises have not only reduced their environmental impact, but also improved their economic benefits and market competitiveness. These experiences provide valuable references for other small and medium-sized enterprises in the industry, demonstrating the possibility of synergistic development of environmental management and business growth.
2. Electronic Manufacturing
2.1 E-waste management
Case: Establishing a complete electronic waste recycling system
XYZ Electronics, a medium-sized electronic product manufacturer in Vietnam, has successfully established a comprehensive electronic waste recycling system, becoming an industry model. The main challenges faced by the company are how to effectively manage the electronic waste generated during the production process and how to deal with scrapped electronic products. XYZ Electronics took the following measures: First, a special waste sorting area was set up in the factory to carefully sort different types of electronic waste. Second, a long-term partnership was established with a local licensed electronic waste recycler to ensure that the waste was professionally handled. Finally, the company also launched a “trade-in” program to encourage consumers to return used electronic products to the factory for recycling. Through these measures, XYZ Electronics not only reduced environmental pollution, but also reduced raw material costs, and reduced annual waste disposal expenses by 30%. This case shows how small and medium-sized enterprises can achieve dual environmental and economic benefits through systematic management of electronic waste.
2.2 Clean production
Case: Promotion of lead-free soldering technology
ABC Circuits, a PCB manufacturer based in Ho Chi Minh City, has achieved remarkable success in promoting lead-free soldering technology. Faced with the requirements of the EU RoHS directive and the global environmental protection trend, the company decided to fully switch to lead-free soldering technology. During the implementation process, ABC Circuits encountered challenges such as high equipment upgrade costs and difficulty in adjusting process parameters. To overcome these difficulties, the company adopted a step-by-step implementation strategy: first pilot on one production line, and then gradually promote to other production lines after accumulating experience. At the same time, the company invested in training employees to improve their ability to operate new technologies. During the transformation process, ABC Circuits also worked closely with equipment suppliers to optimize soldering parameters. After two years of hard work, the company successfully achieved 100% lead-free production, which not only met international environmental standards, but also improved product quality and reduced the defective product rate by 15%. This case shows that even small and medium-sized enterprises can successfully upgrade clean production technology through reasonable planning and unremitting efforts.
2.3 Air pollution control
Case: Application of innovative technologies for VOCs emission reduction
DEF Coatings, a small company specializing in coating electronic components in northern Vietnam, has made innovative breakthroughs in reducing VOCs (volatile organic compounds). The company originally used traditional solvent-based coatings, which seriously exceeded VOC emissions and faced penalties from local environmental protection departments. DEF Coatings decided to seek innovative solutions and eventually adopted a new water-based nano-coating technology. This technology not only significantly reduced VOCs emissions, but also improved coating performance. During the implementation process, the company faced challenges in process adjustments and initial cost increases. To this end, DEF Coatings cooperated with a local technical college to jointly optimize the coating process. At the same time, the company applied for government subsidies for environmental protection technology to ease financial pressure. After 6 months of debugging and optimization, the new technology was successfully applied to all production lines. The results showed that VOCs emissions were reduced by 85%, product quality was improved, and customer satisfaction was significantly improved. In addition, due to the quick-drying characteristics of the new coating, production efficiency increased by 20%. This case shows how small and medium-sized enterprises can effectively solve environmental problems and improve their competitiveness through technological innovation and industry-university-research cooperation.
These cases fully demonstrate the innovative practices of small and medium-sized enterprises in Vietnam’s electronics manufacturing industry in environmental management. From the systematic management of electronic waste, to the comprehensive promotion of clean production technology, to the innovative application of air pollution control, these enterprises have not only solved urgent environmental problems, but also improved their operating efficiency and market competitiveness in the process. These experiences provide valuable references for other companies in the industry and also demonstrate the possibility of a win-win situation between environmental management and business development.
3. Food processing industry
Vietnam’s food processing industry is an important part of the country’s manufacturing industry. It has grown rapidly in recent years with economic development and consumption upgrading. However, this industry also faces severe environmental challenges, including the generation of large amounts of organic waste, packaging material pollution, and high water consumption. This section will use three typical cases to show how Vietnamese food processing companies innovatively solve these environmental problems.
3.1 Organic waste treatment
Case: Biofuel from food waste
ABC Food Company, located in Dong Nai Province, is a medium-sized fruit and vegetable processing company that produces a large amount of organic waste such as peels and cores every day. The traditional practice is to landfill or incinerate these wastes, which not only wastes resources but also causes environmental pollution. In 2021, the company invested in a biofuel conversion system. This system converts organic waste into biogas through anaerobic fermentation technology. After purification, the biogas is used in the factory’s boiler system, greatly reducing the use of fossil fuels.
One year after the project was implemented, the company saved about $2,000 in energy costs per month and reduced the amount of organic waste processed by 80%. More importantly, this practice significantly reduced the company’s carbon emissions and won praise from the local environmental protection department. ABC’s successful experience quickly spread in the local food processing industry, leading a group of companies to follow suit. This case shows how to turn environmental challenges into economic opportunities and achieve a win-win situation for economic and environmental benefits.
3.2 Packaging material innovation
Case: Successful application of biodegradable packaging
XYZ Dairy is a medium-sized dairy company in Hanoi that mainly produces yogurt and fresh milk. Traditional plastic packaging has always been an environmental problem for the company. In early 2022, the company decided to cooperate with a local biomaterial company to develop biodegradable yogurt cups. This new packaging material is mainly made of bagasse and corn starch and can be completely degraded in the natural environment within 180 days.
Although the cost of the new packaging is about 15% higher than traditional plastic packaging, XYZ Company found through market research that more and more consumers are willing to pay a premium for environmentally friendly products. The company combined this innovative packaging with brand upgrading and launched a high-end organic yogurt product line. Surprisingly, the new product not only quickly recovered its cost, but also led to a 20% increase in overall sales.
This case not only solved the packaging pollution problem, but also improved the brand image and opened up new market opportunities. It proves that environmental innovation can be a powerful tool for corporate competitive differentiation.
3.3 Water use optimization
Case: Advanced cleaning technology reduces water consumption
DEF Aquaculture Company is a medium-sized seafood processing company in Nha Trang City, mainly producing frozen shrimp and fish fillets. The seafood processing process requires a lot of cleaning, resulting in the company’s daily water consumption of up to 500 cubic meters. Faced with increasingly stringent water resource management policies and rising water prices, the company decided to carry out comprehensive water optimization in early 2023.
The company has introduced an intelligent cleaning system, including high-pressure low-flow nozzles, water recycling devices and real-time water monitoring systems. The new system can automatically adjust the water pressure and water consumption according to the cleaning needs of different products. In addition, part of the cleaning water can be recycled after treatment, greatly reducing the consumption of fresh water.
Three months after implementation, the company’s average daily water consumption dropped to 300 cubic meters, a 40% reduction. The monthly water bill savings are approximately $3,000. More importantly, due to the improved water efficiency, the company’s product quality is more stable, reducing the risk of product contamination due to improper cleaning.
This case shows how to solve water resource problems through technological innovation. It not only brings direct economic benefits, but also improves production efficiency and product quality, while also contributing to the protection of local water resources. DEF’s experience is being promoted to the entire aquatic processing industry and is expected to have a positive impact on a larger scale.
4. Machinery Manufacturing
4.1 Noise pollution control
Case: Application of innovative sound insulation technology in workshops
XYZ Machinery Co., Ltd. in Hanoi, Vietnam, faced a serious noise pollution problem, which not only affected the health of employees, but also caused complaints from the surrounding community. The company decided to take innovative measures to solve the problem. They worked with a local acoustic technology company to develop a new modular soundproof wall. This soundproof wall uses a multi-layer composite material, including recycled rubber and special acoustic foam, which can effectively absorb and isolate noise of various frequencies.
During the installation process, the company cleverly combined the soundproof wall with the workshop layout, which not only isolated the main noise source but also optimized the work process. In addition, they installed acoustic diffuse reflectors on the roof of the workshop to further reduce the reflection and propagation of noise. After these measures were implemented, the noise level in the workshop was reduced by about 15 decibels, meeting the national standard. Employees reported that the working environment was significantly improved and production efficiency increased by 8%. Most importantly, community complaints stopped completely and the company’s social image was significantly improved.
4.2 Metal waste recycling
Case: Building a closed-loop metal recycling system
ABC Precision Machinery Co., Ltd. in Ho Chi Minh City generates a large amount of metal waste every year. The traditional treatment method not only wastes resources but also increases costs. The company decided to establish a closed-loop metal recycling system. First, they classified the metal waste generated during the production process in detail, including different types such as steel, aluminum, and copper. Then, the company invested in a set of advanced metal sorting and processing equipment that can efficiently separate and preliminarily process different types of metal waste.
More innovatively, ABC has established strategic partnerships with upstream suppliers and downstream recycling companies. They sell the processed metal scraps directly back to raw material suppliers, who then recycle and reuse them. For some special alloy scraps, the company works with professional recycling companies to ensure that these rare metals are recycled to the greatest extent possible. This closed-loop system not only reduces the company’s raw material costs by 60%, but also reduces metal scrap processing costs by 90%. At the same time, the company’s carbon emissions have been significantly reduced, and it has received environmental protection awards from the local government.
4.3 Energy management
Case: Implementation of Smart Energy Monitoring System
DEF Industrial Machinery Manufacturing Co., Ltd. is a medium-sized enterprise facing high energy costs. In order to improve energy efficiency, the company decided to implement an intelligent energy monitoring system. This system includes smart sensors distributed throughout the factory to monitor the use of electricity, compressed air, water and natural gas in real time. All data is transmitted to a central control platform and analyzed by artificial intelligence algorithms.
The system can not only display energy usage in real time, but also predict future energy demand and automatically adjust the operating parameters of production equipment to optimize energy use. For example, it can automatically reduce the power of non-critical equipment during peak power consumption periods, or adjust the operating mode of the air conditioning system during the off-season. In addition, the system can also identify energy waste points, such as detecting air compressor leaks or abnormal energy consumption of a certain device, and immediately alarm.
One year after implementation, DEF’s energy consumption was reduced by 23%, saving about $50,000 per year. More importantly, this system helped the company establish a refined energy management culture, and employees’ energy-saving awareness was significantly improved. The company also used the accumulated data to optimize production plans and further improve overall operational efficiency. This success story has also attracted the attention of other companies. DEF now often receives visits and study from peers, and has established a good image of innovation and environmental protection in the industry.
5. Chemical Industry
As an important part of Vietnam’s manufacturing industry, the chemical industry faces unique and severe environmental challenges. However, many small and medium-sized chemical companies have achieved remarkable results in environmental management through innovation and persistent efforts. This section will introduce three typical cases to show how Vietnamese chemical companies have achieved breakthroughs in hazardous waste management, environmental risk prevention and control, and clean production technology.
5.1 Hazardous waste management
Case: Hazardous waste reduction and harmless treatment
ABC Chemical Co., Ltd., located in Binh Duong Province, is a medium-sized enterprise that produces organic solvents. The company faces the challenge of disposing of a large amount of hazardous waste, which is not only costly but also poses potential environmental risks. In 2021, the company implemented a comprehensive hazardous waste management plan, focusing on source reduction and harmless treatment.
First, the company conducted a comprehensive review of the production process and identified key links that may lead to waste generation. By optimizing reaction conditions and improving separation technology, the amount of by-products generated was successfully reduced by 30%. Secondly, the company introduced an advanced solvent recovery system that can purify waste solvents and reuse them in production. This measure not only reduced the amount of hazardous waste, but also reduced the cost of raw materials.
The most innovative is that the company uses a new type of catalytic oxidation technology to treat organic waste liquid that is difficult to recycle. This technology can decompose organic pollutants into carbon dioxide and water at a lower temperature, greatly reducing the energy consumption and secondary pollution risk of the treatment process.
Through these measures, ABC Company reduced the total amount of hazardous waste by 60% and the treatment cost by 50% in two years, while significantly improving the safety of the working environment. This case shows how to achieve the reduction and harmless treatment of hazardous waste through technological innovation and system management, setting a benchmark for the Vietnamese chemical industry.
5.2 Environmental risk prevention and control
Case: Comprehensive environmental risk assessment and emergency response system construction
XYZ Agrochemical Joint Stock Company is a pesticide manufacturer located in Long An Province. Due to the characteristics of its products, the company has been facing high environmental risks. In 2020, under the guidance of the local environmental protection department, the company launched a comprehensive environmental risk assessment and emergency system construction project.
First, the company hired a professional environmental consulting agency to conduct a detailed risk assessment of the entire production base. The assessment covered the entire process from raw material storage, production process to product packaging, and identified 20 potential high-risk points. Based on the assessment results, the company formulated targeted risk prevention and control measures, including improving storage tank design, upgrading automatic control systems, and adding leak detection devices.
Secondly, the company has established an intelligent environmental risk monitoring platform. The platform integrates various sensor data in the plant area and can monitor key parameters in real time, such as harmful gas concentration and wastewater pH value. The system is equipped with an early warning function. Once an abnormality is detected, an alarm is immediately triggered and an emergency plan is initiated.
Finally, the company formed a professional emergency response team and conducted regular training and drills. It is worth mentioning that the company also established an emergency notification mechanism with surrounding communities to improve the environmental risk response capabilities of the entire region.
After the implementation of this series of measures, the environmental risk accident rate of XYZ Company was reduced by 90%. In 2022, when a sudden rainstorm caused a flood, the company’s emergency response system effectively prevented any leakage of harmful substances, winning high praise from the government and the community. This case shows the importance of comprehensive risk assessment and advanced emergency response systems for environmental risk prevention and control in chemical companies.
5.3 Clean Production Technology
Case: Application of green catalytic technology in production
DEF New Materials Co., Ltd. is a company specializing in the production of polyurethane foam, located in Da Nang City. The isocyanate used in the traditional polyurethane production process is not only toxic, but also produces a large amount of organic waste gas. In 2019, the company decided to invest in the introduction of a green catalytic technology, which completely changed the production model.
This new technology uses an innovative heterogeneous catalyst that can promote the reaction of carbon dioxide and epoxy compounds to produce polyurethane at room temperature and pressure. This not only reduces the energy consumption of the production process, but also cleverly utilizes greenhouse gas carbon dioxide as a raw material. More importantly, this process completely avoids the use of toxic isocyanates, greatly improving the safety and environmental friendliness of production.
The company also upgraded the entire production line, introducing a closed reactor and an efficient tail gas treatment system. These measures further reduced the emission of volatile organic compounds (VOCs), significantly improving the air quality around the factory.
After implementing this technology, DEF’s VOCs emissions were reduced by 95% and energy consumption was reduced by 30%. Product quality was also improved, and it obtained multiple green certifications, opening up the high-end market. This case fully demonstrates that clean production technology can not only significantly improve environmental performance, but also bring new market opportunities to enterprises.
These three cases vividly demonstrate the innovative practices of Vietnam’s chemical industry in environmental management. From hazardous waste management to risk prevention and control, to the application of clean production technology, the experience of these enterprises provides valuable reference for the entire industry. They prove that even small and medium-sized enterprises can find a balance between environmental protection and economic benefits and achieve sustainable development as long as they are determined and innovative.
6. Best Practices for Cross-Industry Topics
6.1 Implementation of Environmental Management System (EMS)
Case: The impact of ISO 14001 certification on small and medium-sized enterprises
The experience of a medium-sized electronic parts manufacturer in Hanoi, Vietnam, demonstrates the positive impact of ISO 14001 certification on SMEs. The company decided to implement the ISO 14001 environmental management system in 2019 and successfully obtained certification in 2020. Despite the large initial investment, the company has achieved significant benefits in many aspects within two years of certification. First, energy consumption has been reduced by 15%, mainly due to systematic energy audits and improvement measures. Second, waste disposal costs have dropped by 20%, which was achieved by optimizing production processes and improving material utilization. More importantly, the company has won orders from several multinational companies, which regard ISO 14001 certification as a prerequisite for supplier selection. In addition, employees’ environmental awareness and participation have been greatly improved, and the company’s overall operational efficiency has also improved. This case shows that even for SMEs with limited resources, the implementation of a formal environmental management system can bring substantial business value.
6.2 Cultivate employees’ environmental awareness
Case: Innovative environmental training methods to improve employee participation
A medium-sized food processing company in Ho Chi Minh City has successfully improved its employees’ environmental awareness and engagement through innovative environmental training methods. Instead of traditional didactic training, the company adopted a combination of gamification and practice. They developed a mobile app that allows employees to earn points by completing daily environmental tasks, such as correctly sorting waste and saving water. Points can be exchanged for actual rewards, such as extra vacation time or gift cards. In addition, the company regularly organizes “Green Idea Competitions” to encourage employees to come up with innovative ideas to improve the company’s environmental performance. The most successful proposals will receive bonuses and be implemented. This approach not only makes environmental training fun and interactive, but also stimulates employees’ creativity. After one year of implementation, the company’s water consumption has decreased by 10%, and the correct sorting rate of recyclable waste has increased to 95%. More importantly, employee satisfaction and loyalty have increased significantly, and the turnover rate has dropped by 15%. This case shows that integrating environmental protection concepts into corporate culture and promoting them in an innovative and incentive way can bring significant environmental and operational benefits.
6.3 Supply Chain Environmental Management
Case: Successful implementation of green procurement policy
A medium-sized textile export company in Da Nang has successfully improved the environmental performance of its entire supply chain by implementing a strict green procurement policy. In 2021, the company developed detailed supplier environmental assessment standards covering energy use, water management, chemical use, and waste disposal. They required all suppliers to conduct self-assessments and conducted on-site audits of major suppliers. For suppliers that did not meet the standards, the company provided a 6-month improvement period and technical support. Through this policy, the company not only improved its own environmental performance, but also led to the upgrading of the entire supply chain. After one year, 90% of suppliers met the company’s environmental standards, and 30% of them obtained environmental management system certification as a result. This not only reduced the company’s environmental risks, but also improved product quality and reduced production interruptions due to supplier environmental problems. More importantly, this initiative won recognition from international buyers and the company successfully entered several high-end markets. This case shows that by actively managing the environmental performance of the supply chain, SMEs can not only reduce risks but also create new business opportunities.
6.4 Disclosure of environmental information
Case: Brand value growth due to improved transparency
A medium-sized seafood processing company from Can Tho City has significantly improved its brand value and market competitiveness by proactively disclosing environmental information. Since 2020, the company has regularly published detailed environmental reports on its official website, including data on energy use, water consumption, waste generation and treatment. They also invited third-party agencies to conduct environmental audits and publish the audit results. At first, the company was worried that disclosing unfavorable information might affect its image, but the actual effect was far beyond expectations. First, this transparency has won the trust of the local community, and the company’s relationship with surrounding residents has improved significantly. Second, many international buyers have appreciated this honest and responsible attitude, and several European customers have increased their orders as a result. More importantly, this disclosure has prompted the company to continuously improve its environmental performance. Within two years, the company’s energy efficiency has increased by 20% and wastewater discharge has decreased by 30%. The company’s brand value has also increased, and it has entered the top 100 of Vietnam’s most valuable brands for the first time in 2022. This case shows that transparency in environmental information can not only enhance a company’s image, but also promote actual environmental improvements and business success.
7. Innovative application of environmental technologies
In Vietnam, more and more small and medium-sized enterprises are adopting innovative technologies to improve their environmental management. These technologies not only help enterprises better comply with environmental regulations, but also improve operational efficiency and reduce costs. This section will introduce three innovative environmental technology applications that are becoming increasingly popular in Vietnam, and demonstrate their actual effects through specific cases.
7.1 Application of Internet of Things (IoT) in environmental monitoring
IoT technology is revolutionizing the way Vietnamese companies monitor the environment. By deploying a network of sensors connected to the Internet, companies can monitor various environmental parameters in real time, such as air quality, water quality, noise levels, etc. This real-time monitoring not only improves the accuracy and timeliness of data, but also enables companies to respond quickly to potential environmental issues.
Case: Deployment of a real-time pollution monitoring system
A medium-sized textile factory in Binh Duong Province has successfully deployed a real-time pollution monitoring system based on IoT. The system includes water quality sensors at wastewater outlets, air quality monitors in workshops, and boundary noise detection devices. All data is transmitted in real time to the central control room and management’s mobile devices. After the system was put into use, the factory was able to immediately detect and deal with abnormal situations, such as a sudden increase in wastewater pH or excessive VOCs concentration. This not only helped the company avoid several potential environmental violations, but also optimized the production process, reduced raw material waste, and reduced annual environmental protection-related costs by 15%.
7.2 Artificial intelligence optimizes environmental management
Artificial intelligence (AI) technology has broad prospects for application in environmental management. By analyzing large amounts of historical data, AI systems can predict potential environmental risks, optimize resource use, and provide decision support. In Vietnam, some forward-looking small and medium-sized enterprises have begun to explore the application of AI in environmental management.
Case: AI prediction model reduces energy waste
A medium-sized food processing plant on the outskirts of Hanoi has introduced an AI-based energy management system. The system has established an accurate energy demand forecasting model by analyzing production data, energy consumption data and weather information over the past three years. The system is able to adjust the operating parameters of refrigeration equipment and air conditioning systems in advance according to production plans and weather forecasts. After one year of implementation, the factory’s energy efficiency has increased by 20%, which has not only significantly reduced energy waste and corresponding greenhouse gas emissions, but also saved a lot of electricity bills. In addition, due to more reasonable energy use, the equipment failure rate has also been significantly reduced.
7.3 Application of blockchain technology in environmental compliance
Blockchain technology is becoming a powerful tool for environmental compliance management due to its transparent and tamper-proof characteristics. In Vietnam, some companies have begun to explore the use of blockchain to track waste disposal processes, ensure compliance, and improve environmental performance throughout the supply chain.
Case: Using blockchain to improve waste tracking efficiency
An electronics manufacturer in Ho Chi Minh City has taken the lead in adopting a blockchain-based waste tracking system. The system records the entire process from waste generation, classification, transportation to final disposal. Every step of the operation is recorded on the blockchain, including time, location, operator and treatment method. This not only greatly improves the transparency of waste management, but also simplifies the preparation process of compliance reports. The environmental protection department can view the company’s waste disposal in real time, significantly improving the efficiency of supervision. After implementing this system, the company’s waste disposal compliance has been significantly improved, and it has received an excellent rating in the annual environmental audit. At the same time, due to the improved efficiency and accuracy of waste disposal, the company saves about 5% of waste management costs each year.
The application cases of these innovative technologies demonstrate the progress and innovative spirit of Vietnamese SMEs in environmental management. Although the initial investment may be high, in the long run, these technologies can not only help companies better comply with increasingly stringent environmental regulations, but also bring significant economic benefits. As the cost of technology decreases and application experience accumulates, we expect that more Vietnamese companies will adopt these innovative technologies to improve their environmental management level.
8. Community Engagement and Corporate Social Responsibility (CSR)
In Vietnam, more and more small and medium-sized enterprises are aware of the importance of community participation and corporate social responsibility for environmental management. By actively participating in community activities and assuming social responsibilities, enterprises can not only improve their own environmental performance, but also enhance their brand image and strengthen their connection with the local community. The following are three typical cases that show how Vietnamese SMEs can fulfill their environmental responsibilities in innovative ways while achieving common development between enterprises and communities.
8.1 Environmental education project
Case: Factory open day raises community environmental awareness
ABC Textile Company in Binh Duong Province has launched an innovative “Green Factory Open Day” activity, opening the factory to community residents and students on a monthly basis. During the tour, the company detailed its advanced wastewater treatment system, energy-saving measures and waste recycling processes. Visitors also had the opportunity to participate in interactive environmental knowledge quizzes and DIY environmental handicraft activities. This initiative not only raised the community’s awareness of environmental protection, but also enhanced the mutual trust between the company and the surrounding residents. One year after the open day activities, the number of complaints from residents around the company decreased significantly, and more than 20% of visitors said they were inspired to start practicing energy conservation and emission reduction at home. This case shows how to effectively improve the environmental image and community support of a company through transparent operations and educational activities.
8.2 Ecosystem restoration
Case: Enterprises participating in mangrove protection project
Located in the Mekong Delta, XYZ Aquaculture Company took the initiative to participate in a large-scale mangrove restoration program after realizing the impact of its business on the local ecosystem. The company not only provided financial support, but also organized employees to participate in mangrove planting activities on a regular basis. In three years, the company assisted in the restoration of more than 100 hectares of mangroves, significantly improving coastal protection and biodiversity. This initiative not only helped the company gain a better environmental reputation, but also actually improved the local ecological environment, reduced coastal erosion, and increased fish habitat, indirectly benefiting its aquaculture business. This move also won the support of the local government, creating favorable conditions for the company’s future business expansion. This case shows how companies can achieve a win-win situation for environmental protection and commercial interests by participating in ecological restoration projects.
8.3 Green Volunteer Program
Case: Employees participate in local environmental cleaning activities
DEF Electronics in Hanoi launched an innovative “Green Friday” program to encourage employees to participate in local environmental cleanup activities on the last Friday of each month. The company not only provides paid volunteer time for participating employees, but also donates to local environmental NGOs in the name of each participant. The program quickly gained popularity among employees, and the participation rate increased from an initial 20% to 75% within six months. Employees not only cleaned up the rivers and parks around the company, but also shared their experiences on social media, greatly enhancing the company’s environmental image. More importantly, this activity cultivated employees’ environmental awareness, and many participants said that they began to pay more attention to energy conservation and waste reduction in their daily work. This case shows how to integrate environmental protection concepts into corporate culture through employee participation while improving the local environment.
Together, these cases show that Vietnamese SMEs have not only fulfilled their environmental responsibilities but also gained significant business value through innovative community engagement and CSR projects. They have successfully combined environmental protection with business development, employee engagement and community relationship maintenance, setting an example for other companies. This comprehensive approach to environmental management not only helps companies stay compliant under increasingly stringent environmental regulations, but also stands out in a highly competitive market and wins the trust of consumers and partners.
9. Government Cooperation and Policy Response
In Vietnam, close cooperation between the government and enterprises is crucial to promoting environmental management. This section will use three specific cases to show how SMEs can interact with the government to jointly promote environmental protection.
9.1 Participate in policy making
Case: Small and Medium Enterprises Alliance promotes the optimization of environmental protection policies
In 2022, 50 small and medium-sized manufacturing companies from Ho Chi Minh City formed the “Green Manufacturing Alliance”. The alliance recognized that some existing environmental protection policies are difficult for small and medium-sized enterprises to implement. They collected a large number of specific difficulties and suggestions encountered in implementing environmental protection measures and compiled them into detailed reports. Alliance representatives communicated with the Municipal Environmental Protection Bureau many times and put forward suggestions such as implementing new emission standards in stages and providing technical support for small and medium-sized enterprises. After half a year of hard work, the Environmental Protection Bureau adopted some of the alliance’s suggestions, revised the policy implementation rules, and set a more reasonable transition period and phased goals for small and medium-sized enterprises. This case shows that through unity and cooperation, small and medium-sized enterprises can effectively participate in policy formulation and promote the introduction of more practical environmental protection measures.
9.2 Government-enterprise cooperation projects
Case: Construction of a sewage treatment plant under the public-private partnership (PPP) model
In 2023, the Dong Nai provincial government cooperated with 10 local medium-sized textile enterprises to build a sewage treatment plant dedicated to the textile industry using the PPP model. The government provided land and some infrastructure, and the enterprises jointly funded the construction of treatment facilities. This treatment plant uses advanced membrane bioreactor (MBR) technology, which can not only effectively treat textile wastewater, but also achieve a 40% water reuse rate. Through this cooperation model, the problem that individual small and medium-sized enterprises are difficult to afford large-scale sewage treatment facilities has been solved, and the financial pressure on the government has also been reduced. After the project was put into use, the wastewater treatment costs of participating enterprises were reduced by an average of 30%, and the regional water environment quality was also significantly improved. This case shows how the government and enterprises can jointly solve environmental challenges through innovative cooperation models.
9.3 Respond to environmental protection incentive policies
Case: Using tax incentives to promote clean energy transformation
In 2021, the Vietnamese government introduced a tax incentive policy for the use of clean energy in the manufacturing industry. A medium-sized electronic component manufacturer in Bac Ninh Province quickly responded to this policy. The company invested 2 million US dollars to install a photovoltaic power generation system on the roof of the factory building, with an annual power generation of 1.5 million kWh, accounting for 40% of the company’s total electricity consumption. Through this investment, the company not only enjoyed a five-year income tax exemption, but also saved about 20% of its electricity bills each year. More importantly, the company’s carbon emissions have been significantly reduced, improving its competitiveness in the international supply chain. The company’s successful experience quickly spread in the local industrial park, driving more small and medium-sized enterprises to invest in clean energy. This case shows that actively responding to the government’s environmental protection incentives can not only obtain direct economic benefits, but also promote the long-term sustainable development of enterprises.
Through the above three cases, we can see that the cooperation between Vietnamese SMEs and the government in environmental management is becoming increasingly close and diversified. Whether participating in policy formulation, carrying out public-private partnership projects, or responding to incentive policies, it has created value for enterprises and promoted the environmental protection cause of the entire society. This positive interaction model is worth learning and reference for more enterprises.
10. Economic Benefit Analysis
Environmental management is not only a corporate social responsibility, but also an important means to enhance competitiveness. By implementing advanced environmental management practices, Vietnamese SMEs have not only achieved environmental protection goals, but also achieved significant economic benefits. This section will use three specific cases to show how environmental management can bring cost savings, new market opportunities and brand value enhancement to enterprises.
10.1 Cost savings
Case: Waste reduction leads to lower processing costs
A medium-sized electronics manufacturer in Hanoi, Vietnam, has successfully reduced waste disposal costs by 40% by implementing a comprehensive waste reduction program. The company first conducted a detailed analysis of the production process and identified the main waste generation links. Subsequently, they took a series of measures, including optimizing production processes, improving packaging design, and strengthening employee training. In particular, in the circuit board production link, the introduction of precision cutting technology has significantly reduced the generation of scraps. In addition, they have established an internal material exchange platform to turn waste from one department into raw materials for another department. These measures not only reduced the amount of waste that needs to be processed, but also reduced the cost of purchasing raw materials. After one year of implementation, the company’s waste disposal costs dropped from US$5,000 per month to US$3,000, saving US$24,000 per year, and the payback period was only 8 months.
10.2 New market opportunities
Case: Business growth brought by the development of environmentally friendly product lines
A small and medium-sized plastic products company in Ho Chi Minh City seized the environmental protection trend and developed a series of biodegradable plastic products, achieving significant business growth. Faced with the increasingly stringent plastic pollution control policies of the Vietnamese government, the company did not respond passively, but actively transformed. They invested in research and development, using locally abundant raw materials such as cassava starch to develop plastic bags and tableware that can be completely degraded within 180 days. These products not only meet the needs of the domestic market, but also successfully entered international markets such as Japan and South Korea with high environmental protection requirements. The new product line brought the company a 20% revenue growth in the first year of its launch, and reached 35% in the second year. More importantly, this strategic transformation enabled the company to stand out in the fiercely competitive plastic products market and establish a unique market position.
10.3 Enhanced brand value
Case: Improved market recognition of companies with excellent environmental management
A medium-sized textile company in Da Nang has significantly improved its brand value and market recognition through excellent environmental management practices. The company not only strictly complies with environmental regulations, but also takes the initiative to adopt environmental protection measures that exceed the standards. They invested in the construction of an advanced wastewater treatment system, achieving 90% water recycling, which is much higher than the industry average. At the same time, they also adopted organic cotton and environmentally friendly dyes and obtained the Global Organic Textile Standard (GOTS) certification. These measures have made the company a benchmark for environmental management in Vietnam’s textile industry. As a result, they have not only won government recognition, but also attracted the attention of many internationally renowned brands. In just two years, the company’s cooperation with high-end European and American clothing brands has increased by 50%, and the order volume has increased by 40%. More importantly, they are able to obtain higher profit margins in negotiations because customers are willing to pay a premium for environmentally friendly products. The company’s brand value valuation has doubled in three years, and it is also more attractive in terms of talent recruitment.
These cases clearly show that good environmental management is not only a cost, but also an important source of corporate value creation. Through innovative environmental management practices, Vietnamese SMEs can achieve both economic and environmental benefits and gain competitive advantages in a global market that increasingly values sustainable development.
11. Challenges and Solutions
11.1 Funding restrictions
For small and medium-sized enterprises in Vietnam, funding constraints are a major obstacle to implementing environmental management best practices. Although many companies are aware of the importance of environmental protection, they often find it difficult to raise enough funds to upgrade environmental protection equipment or implement new environmental management systems. However, some companies have successfully overcome this challenge through innovative financing models.
Case: Innovative financing model to support environmental protection equipment upgrades
A medium-sized textile enterprise in Binh Duong Province was faced with the problem of urgently needing to upgrade its wastewater treatment equipment, but the threshold for traditional bank loans was high. The enterprise cooperated with a local environmental protection equipment supplier and adopted the “financial leasing + profit sharing” model. The supplier provided the equipment and was responsible for installation and maintenance. The enterprise paid monthly rent and shared with the supplier the water and energy saving benefits brought by the equipment upgrade. This model not only reduced the initial investment pressure of the enterprise, but also achieved the binding of the interests of suppliers and users, ensuring the long-term and efficient operation of the equipment. Through this innovative financing method, the enterprise successfully increased its daily wastewater treatment capacity by 50%, while reducing energy consumption by 30%, saving about 2 billion VND per year.
11.2 Technical barriers
For many small and medium-sized enterprises in Vietnam, mastering and applying advanced environmental management technologies is a major challenge. Enterprises often lack professional R&D teams and technical reserves, making it difficult to independently develop environmental protection solutions that suit their own needs. However, some enterprises have successfully broken through technical barriers by cooperating with research institutions and universities.
Case: Industry-university-research cooperation breaks through technical bottlenecks
A medium-sized chemical company in Hanoi has long been troubled by the problem of VOCs (volatile organic compounds) emissions. Traditional treatment technologies are ineffective and costly. The company has established an industry-university-research partnership with the Department of Environmental Engineering at Hanoi University of Technology. Based on the company’s actual situation, the university research team developed a VOCs treatment system based on biofilter technology. This system is not only highly efficient, but also 40% cheaper than traditional methods. Through this cooperation model, the company has successfully reduced VOCs emissions by 85%, far exceeding the government’s 60% standard. At the same time, the success of this technology has also brought actual cases and research data to the university, achieving a win-win situation.
11.3 Talent gap
The lack of professional talents in environmental management is another major challenge facing small and medium-sized enterprises in Vietnam. Although many enterprises are willing to improve environmental management, they lack talents with professional knowledge and practical experience to promote and implement related projects. Some forward-looking enterprises have adopted a long-term talent training strategy by cooperating with educational institutions.
Case: School-enterprise cooperation to cultivate environmental management talents
A medium-sized food processing company in Ho Chi Minh City realizes the importance of environmental management talents to the long-term development of the company. The company has established a deep cooperative relationship with Ho Chi Minh City University of Technology and jointly designed the “Environmental Management Internship” project. Every year, the company provides 5-10 environmental engineering students with paid internship opportunities for 6 months. Under the guidance of the company’s mentors, the students participate in actual environmental management projects. This model not only cultivates talents suitable for the company’s needs, but also provides students with valuable practical experience. In the three years since the implementation of the project, the company has officially hired 8 environmental management specialists from the interns. These young professionals have brought new vitality and innovative thinking to the company’s environmental management.
Through these cases, we can see the innovative spirit and problem-solving ability of Vietnamese SMEs in the face of environmental management challenges. These experiences not only provide a model for other companies to learn from, but also highlight the importance of collaboration between industry, academia and government departments. With the promotion of these innovative practices, the environmental management level of Vietnamese SMEs is expected to be improved overall, making greater contributions to the country’s sustainable development.
12. Future Outlook
Vietnam’s environmental management sector is facing rapid changes and new challenges, but also holds opportunities for innovation. This section will explore possible environmental challenges, potential technological breakthroughs, and policy trends in the future, providing forward-looking insights for Vietnamese SMEs.
12.1 Emerging environmental challenges
The impact of climate change is becoming increasingly evident in Vietnam, especially in the Mekong Delta and coastal areas. Companies will face more frequent extreme weather events such as typhoons, floods and droughts, which may disrupt supply chains and production activities. Adaptive strategies will become an important part of corporate environmental management. In addition, with the acceleration of urbanization, land use changes and biodiversity loss will also become new challenges. Companies need to pay more attention to the impact of their operations on local ecosystems and take measures to reduce negative impacts.
Water shortage and water quality issues are expected to become more serious. With industrialization and population growth, competition for water resources will intensify, and companies may face stricter water restrictions and higher water treatment standards. In addition, plastic pollution, especially microplastics, will also become one of Vietnam’s major environmental challenges. Manufacturing companies will need to re-examine their product design and packaging strategies to reduce plastic use and improve recyclability.
12.2 Potential technological breakthroughs
Artificial intelligence (AI) and machine learning technologies are expected to play an important role in environmental management. These technologies can be used to optimize energy use, predict equipment failures, and even identify potential environmental risks. For example, AI-driven predictive maintenance systems can significantly reduce environmental incidents caused by equipment failures.
Nanotechnology is expected to achieve breakthroughs in water treatment and air purification. Highly efficient nanomaterials may revolutionize the processes of wastewater treatment and air purification, providing more efficient and lower-cost solutions. This is especially important for water-intensive industries such as textile and electronics manufacturing in Vietnam.
Renewable energy technologies, especially solar and biomass, are expected to achieve significant progress in Vietnam. As technology costs fall and efficiency improves, more small and medium-sized enterprises will be able to adopt these clean energy solutions. In addition, advances in energy storage technology will make the application of renewable energy more stable and reliable.
12.3 Policy trend forecast
The Vietnamese government is likely to strengthen the enforcement of environmental regulations, especially in industrial pollution control. Stricter emission standards and higher fines are expected. At the same time, the government may introduce more market-based environmental policy tools, such as an emission rights trading system, to provide companies with more flexible compliance paths.
Green finance policies are expected to develop further. The government may introduce more incentives to encourage banks to provide preferential loans for environmental protection projects, and may require financial institutions to consider environmental risk factors in loan decisions. This will create new financing opportunities for small and medium-sized enterprises that are committed to improving their environmental performance.
The circular economy concept is expected to be more deeply integrated into Vietnam’s industrial policy. The government is likely to introduce more support measures to encourage companies to adopt a circular economy model, such as formulating product life cycle management guidelines and supporting industrial symbiosis projects. This will push companies to pay more attention to resource efficiency and waste minimization.
In addition, Vietnam is likely to strengthen regional and international environmental cooperation. This may include participating in more cross-border environmental protection projects and gradually aligning with international environmental standards. For small and medium-sized enterprises with international operations, this means paying more attention to changes in global environmental trends and standards.
In general, future environmental management will be more integrated, intelligent and forward-looking. Vietnamese SMEs need to remain flexible and proactively respond to new challenges while making full use of opportunities brought by new technologies and policies to remain competitive in the increasingly complex environmental management landscape.
13. Conclusion
Through a comprehensive analysis of the best practices in environmental management of small and medium-sized enterprises in Vietnam, we can summarize several key success factors. First, the firm commitment and support of corporate leadership is the basis for implementing effective environmental management. The leadership of companies that excel in environmental management often regards environmental protection as an important part of corporate strategy, rather than just a burden of regulatory compliance. Second, innovative thinking and technology application play a key role in environmental management. Whether it is the use of advanced pollution control technology or the application of the Internet of Things and artificial intelligence to optimize resource use, innovation is an important driving force for improving environmental performance. Third, employee participation and training are crucial. The most successful cases show that when environmental awareness permeates every corner of the enterprise and every employee becomes an active participant in environmental management, the enterprise can truly achieve comprehensive environmental improvement. Finally, effective communication and cooperation with stakeholders are also key to success. This includes good interaction with government departments, collaboration with suppliers and customers, and active interaction with the community.
In promoting these best practices, we recommend the following strategies. First, establish an experience exchange platform within the industry to encourage companies to share their success stories and lessons. This can be achieved through industry associations or government-supported projects. Second, promote industry-university-research cooperation to help more small and medium-sized enterprises obtain appropriate environmental management technologies and knowledge. The government can consider setting up special funds to support small and medium-sized enterprises in carrying out environmental management innovation projects. Third, establish incentive mechanisms, such as environmental management performance evaluation and reward systems, to increase the enthusiasm of enterprises to participate. At the same time, strengthen the publicity and reporting of successful cases to increase the society’s recognition of environmentally friendly enterprises. Finally, encourage large enterprises to promote environmental best practices in supply chain management and drive more small and medium-sized enterprises to improve their environmental management level.
Continuous improvement is the core concept of environmental management. Environmental challenges are dynamic, regulatory requirements are constantly increasing, and technology is constantly advancing. Therefore, enterprises cannot be satisfied with existing achievements, but need to establish a mechanism for continuous improvement. This includes regularly evaluating environmental management performance, identifying room for improvement, setting higher environmental goals, and constantly updating environmental management strategies and measures. Enterprises should cultivate a culture of continuous learning and innovation, encourage employees to make suggestions for improvement, and actively try new environmental management methods. At the same time, enterprises should also pay close attention to the latest trends and best practices in environmental management at home and abroad, and constantly absorb new concepts and methods. Through continuous improvement, Vietnamese SMEs can not only meet the ever-increasing environmental requirements, but also establish an environmentally friendly competitive advantage in the international market.
In general, Vietnamese SMEs have made significant progress in environmental management, and many best practice cases have emerged that are worth learning from. These cases show that environmental management is not only a responsibility, but also an important way to enhance corporate competitiveness. By summarizing key success factors, actively promoting best practices, and insisting on continuous improvement, Vietnamese SMEs are expected to occupy a favorable position in the future green economy and make important contributions to the country’s sustainable development. We look forward to seeing more companies join the vanguard of environmental management and jointly create a cleaner, healthier and more sustainable Vietnamese manufacturing industry.
