Accelerating investment to meet "green" standards

Ton Dong A has built a green production value chain to meet the strict requirements of the EU market. Illustration photo: Internet

Energy transition and new technology investments

Founded in 1998, Ton Dong A Corporation specializes in manufacturing steel and coated steel products catering to various demands, from industrial and residential construction to transportation infrastructure and home appliances.

Currently, 50% of Ton Dong A's production is exported to markets including Southeast Asia, the Middle East, Africa, Japan, South Korea, the US, and the EU.

However, according to Nguyen Thanh Vinh Nhat, Director of Planning at Ton Dong A, the company faces numerous challenges in international markets.

Besides fluctuating raw material prices, intense competition regarding quality standards and increasingly strict environmental regulations, particularly in the EU, have posed significant hurdles.

To address these challenges, Ton Dong A has built a green production value chain. This involves optimizing processes to reduce emissions, developing eco-friendly products, and meeting stringent EU standards for carbon emissions and sustainability. The company ensures high-quality data for every export batch.

Specifically, the company has invested in energy-efficient and low-emission production technologies to ensure its products meet stringent EU standards such as ISO 9001:2015, ISO 14001:2015, ISO 50001:2018, ISO/IEC 17025, and carbon emission regulations during production.

Key initiatives include replacing traditional lighting with LEDs, installing inverters to optimize electricity efficiency, and implementing water-saving policies to minimize resource consumption. Solar energy solutions have also been integrated into the production process, significantly reducing carbon emissions.

Thanks to the rooftop solar panels at its factories, Ton Dong A has reduced CO2 emissions while leveraging clean, renewable energy, contributing to environmental protection goals.

Additionally, the company has imported advanced machinery and technology from the US, Europe, and Japan to improve product quality and diversify offerings, cementing its leadership in Vietnam's coated steel industry.

In addition to enhancing the "greenness" of its products, Ton Dong A also emphasizes product quality by delivering items with long lifespans, which can even be reused, aligning with the circular economy trend adopted by developed countries.

From a logistics business perspective, Trinh Duc Cuong, Director of the Express Delivery Center at Viettel Post, highlighted barriers in trade between Vietnam and the EU.

These include increasingly stringent requirements for green logistics, traceability, and transparency. Meanwhile, Vietnam's import-export model involves numerous intermediaries, leading to high costs and inefficiency.

Given this reality, Cuong stated that Viettel Post was focusing on addressing these issues by creating optimized logistics chain solutions in terms of both cost and time.

The company is investing in logistics centers in Dong Nai, Binh Duong, Ho Chi Minh City, Lang Son, and Hanoi. These centers serve as cargo hubs equipped with full capabilities for customs clearance, goods traceability, and storage to accommodate diverse products, including agricultural goods.

To meet the EU's sustainability requirements and support businesses in import and export, Viettel Post is focusing on new technologies such as renewable energy, robotics, and electric vehicles.

Collaboration and learning for faster "green" transition

Despite achieving initial impressive results, businesses acknowledge that the green transition is a long journey fraught with numerous challenges ahead.

As a major partner in the EU’s fashion retail sector, Anastacia Howe, Sustainability Director of H&M, shared that in the coming years, H&M ươuld place greater emphasis on clothing products that are recyclable and regenerative, following the circular economy trend.

Currently, H&M collaborates with over 700 independent suppliers, most of which own their own factories. Since its products are sourced globally, including from Vietnam, H&M's push for "green" practices requires all suppliers and manufacturers in its supply chain to follow suit.

Specifically, suppliers must work to improve recycling technologies, use renewable energy, and source sustainable raw materials. To this end, H&M is actively communicating with global suppliers to change perceptions and encourage production transformation.

EU representatives emphasized that Vietnamese businesses should not delay further and must begin the green transition immediately. For this process to be smoother and faster, collaboration, learning, and experience-sharing will bring significant benefits.

As a certification entity, Bureau Veritas has supported the green transition of many businesses in recent years. Tran Viet Hoang, Director of Greenhouse Gas and Energy Products at Bureau Veritas, stated that training was one of their most sought-after services.

Through training sessions, Bureau Veritas has guided businesses in adopting standards, particularly small and medium enterprises (SMEs) unfamiliar with such standards.

Bureau Veritas also assists businesses in obtaining certifications related to these standards, allowing them to gradually improve management systems, mitigate risks, enhance product quality, boost environmental and safety credentials, minimize incidents, and meet supply chain requirements.

Nguyen Xuan Thang, Vice Chairman of EuroCham, remarked that the international community plays a crucial role in supporting Vietnam’s green transition, particularly in capacity-building, policy advisory, and sharing international best practices.

The EU can provide financial and investment support through initiatives such as the Just Energy Transition Partnership (JETP), which aims to mobilize US$15.5 billion from donor countries and private partners during 2026–2028.

“EuroCham and its members are committed to creating a favorable investment environment through partnerships with the EU, accelerating Vietnam’s transition to a sustainable energy future,” Thang emphasized.

Notable examples include the collaboration between Cat Tuong Company and Syntegra Solar, supported by German Federal Ministry for Economic Cooperation and Development, which successfully piloted an 850 kWp project.

Additionally, the Asian Development Bank (ADB) and GreenYellow, an active EuroCham member, provided a US$13.8 million loan to facilitate the installation of solar energy systems in the commercial and industrial sectors, addressing upfront cost challenges and promoting broader adoption of renewable energy technologies.