Shin-Etsu Vietnam saves over VND 5 billion per year through RECP implementation

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By implementing Resource Efficiency and Cleaner Production (RECP) solutions – from simple technical adjustments to larger-scale investments Shin-Etsu Magnetic Materials Vietnam Co., Ltd. (100% Japanese-owned, located in Deep C Industrial Park, Hai Phong) has saved more than VND 5 billion per year and reduced over 2,000 tons of CO₂ emissions, becoming one of the exemplary enterprises applying the Eco-Industrial Park (EIP) model in Vietnam.

A large-scale enterprise in rare-earth magnet manufacturing

Established in 2011 with a total investment of nearly USD 450 million, Shin-Etsu Vietnam currently operates three factories on an area of more than 200,000 m² and employs 2,159 workers.
The company specializes in producing rare-earth magnets – an essential material used in various industries such as motors, automobiles, electronics, wind energy, and healthcare.

Products of Shin-Etsu Vietnam and their applications in daily life.

From initial skepticism to breakthrough transformation

In 2022, when the project “Implementing EIPs in Vietnam through the approach of the global EIP programme”, funded by the Swiss State Secretariat for Economic Affairs (SECO) and implemented by UNIDO in cooperation with the Ministry of Planning and Investment, invited Shin-Etsu to participate, the Japanese leadership believed the factory had already been optimized according to Kaizen principles for many years and that few further improvements were possible.

According to Ms. Nguyen Thi Lien, in charge of Environment – Health – Safety (EHS, HOS), it took more than two months of persuasion before the company agreed to allow the expert team to conduct a highly restricted assessment.

Ms. Nguyen Thi Liên shared at the Sustainable Production Expert Training Course organized by the Ministry of Industry and Trade in Quang Ninh, November 2025.

However, after only three days of on-site assessment, the working team led by expert Đinh Mạnh Thắng (VNCPC) identified 21 feasible saving opportunities related to electricity, water use, and internal management.

Savings surpassing all expectations

  • In 2022 alone, Shin-Etsu implemented 19 out of 21 solutions with a total investment of USD 200,520.
    The results were remarkable:
  • USD 257,000 saved annually (equivalent to over VND 5 billion)
  • 2,031 tons of CO₂ emissions reduced

Improved working conditions and operational performance

  • Many solutions were simple yet highly effective, such as:
  • Setting air conditioners to 26°C
  • Strengthening industrial maintenance: repairing steam trap leaks, cleaning air compressor filters, air-conditioning filters, etc.
  • Ventilating the compressor room
  • Adjusting water flow in hand-washing areas

According to Ms. Liên, “Small improvements brought results far beyond expectations. They also helped the company meet the strict environmental standards required by EU and U.S. customers.”

Continued strong investment driven by confidence in improvement results

From 2023 to 2025, Shin-Etsu Vietnam continued investing more than USD 2 million in RECP solutions.
In 2023 alone, nearly USD 1.4 million was spent on new machinery and equipment, including four air compressors. These investments are considered to have high returns on investment (ROI) and significantly enhance production efficiency.

Investment and cost savings at Shin-Etsu over the years through RECP implementation.

During this period, Shin-Etsu Vietnam also implemented 35 additional RECP solutions, further optimizing the entire production line.

The company’s success demonstrates clearly that RECP not only protects the environment but also delivers tangible economic value to businesses.

The EIP Project – A launchpad for sustainable production in Vietnam

The project “Implementing Eco-Industrial Parks in Vietnam Through the Approach of the Global EIP Programme” (2020–2024), funded by SECO and implemented by UNIDO and the Ministry of Planning and Investment, aims to:

Enhance productivity and resource efficiency

Improve economic – social – environmental performance of enterprises

Contribute to promoting sustainable production in Vietnam

Deep C Industrial Park, Amata Industrial Park, and more than 100 participating enterprises have reported many positive outcomes.

VNCPC

VNCPC Participates in Training Session on Updated Environmental Regulations for Enterprises in Tay Ninh

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On the morning of December 5, the Tay Ninh Economic Zone Authority, in collaboration with the Institute of Policy and Strategy for Agriculture and Environment, organized a conference to disseminate and update legal regulations and national technical standards on environmental protection for industrial parks (IPs) and economic zones in 2025.

More than 150 enterprises and IP infrastructure units attended the event to gain insight into new regulations, address challenges, and work together toward eco-industrial parks, a green economy, and sustainable development.

Dr. Le Xuan Thinh, Director of the Vietnam Cleaner Production Centre Co., Ltd. (VNCPC), is presenting at the training session.

During the event, experts shared key topics including:

  • Environmental protection regulations and standards for 2025

  • Criteria framework and certification procedures for Eco-IPs under Decree No. 35/2022/NĐ-CP and Circular No. 05/2025/TT-BKHĐT

  • Best-practice models, research findings, and implementation results of Eco-IPs in Vietnam

  • Assessment of opportunities for water circularity and industrial symbiosis in Phuoc Dong IP

Dr. Le Xuan Thinh is participating in a Q&A session with enterprises.

The conference also provided time to address questions and support enterprises in effectively applying new regulations in practice.

VNCPC

Training course on “Sustainable production experts” held in Quang Ninh

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On November 26 – 27, 2025, in Quảng Ninh, the Department of Innovation, Green Transition and Industrial Promotion (Ministry of Industry and Trade), in collaboration with the Vietnam Cleaner Production Centre Co. Ltd. (VNCPC), organized the 2025 Sustainable production expert training course. The course was designed for consultants, technical and managerial staff in the fields of industry, environment, energy, cleaner production at manufacturing enterprises, as well as related units and organizations.

The training aims to support enterprises in improving resource efficiency, reducing production costs, meeting green development requirements, and progressing toward sustainable growth. This activity is part of the National action plan on Sustainable production and consumption for the period 2021 – 2030.

Participants attending the training course

For 2025, the programme was designed with streamlined theory and enhanced practical sessions, focusing on three key content areas:

1. Principles and the role of Sustainable Production for industrial enterprises

Participants were guided to analyse the efficiency of material, water, chemical, and energy use (boilers, compressed air, refrigeration systems, etc.) to reduce costs, minimize waste, and identify improvement opportunities.

2. Integrating ESG (Environmental – Social – Governance) into corporate strategy

The course helped participants grasp ESG trends and practice using rapid assessment tools such as the Quick scan tool and ESG checklist to identify risks, opportunities, and the readiness level of enterprises.

3. Circular Economy and Industrial Symbiosis

Participants were introduced to circular economy concepts and industrial symbiosis models – where enterprises within an industrial park share infrastructure and resources to achieve superior economic, environmental, and social benefits.

Content on sustainable marketing was also integrated into the course, equipping businesses to transform their green transition efforts into competitive market advantages.

Below are some photos from the training course:

VNCPC

Promoting efficient energy use in enterprises – Moving toward sustainable development

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On November 21, 2025, in Hai Phong, the Vietnam Cleaner Production Centre Co.Ltd. (VNCPC) coordinated with VSIP Hai Phong Co., Ltd. to organise a workshop “Disseminating knowledge on energy saving and efficient use for enterprises.”

The event is part of the support activities for energy-intensive enterprises located in the target industrial parks in Hai Phong, under the National programme on economic and efficient use of energy for the period 2019 – 2030, chaired by the Ministry of Industry and Trade. The workshop promotes the adoption of advanced management and technological solutions to reduce energy intensity and accompany businesses on their path toward sustainable development.

Delegates participating in the workshop pose for a commemorative photo.

In the context of rising energy prices and increasing emphasis on sustainability, efficient use of energy not only helps enterprises reduce operating costs but also protects the environment, enhances competitiveness, and drives sustainable growth.

Below are some photos from the workshop:

VNCPC conducts field survey at Tang Loong industrial park (Lao Cai)

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From October 14-16, a working delegation from the Vietnam Cleaner Production Centre Co.Ltd. (VNCPC) and Green Ventures Vietnam Joint Stock Company coordinated with the Management Board of Lao Cai Economic Zone to conduct a field survey at Tang Loong industrial park (IP).

This activity is part of the project “Transforming Tang Loong IP into an Eco-IP.”

Tang Loong IP covers more than 1,100 hectares and hosts a large number of enterprises operating in industrial production, fertilizer, and chemical sectors. It is considered one of the key industrial hubs in northern Vietnam.

During the mission, the delegation carried out:

  • Surveys of production lines, energy and water use systems, and the consumption of raw materials, fuels, and chemicals;
  • Assessments of the current wastewater, exhaust gas and solid waste treatment systems of enterprises within the industrial park;
  • Collection and analysis of data to identify opportunities for cleaner production, resource efficiency, and the development of industrial symbiosis networks among enterprises.

The survey aims to support enterprises in Tang Loong IP in:

  • Identifying cost-saving opportunities;
  • Reducing emissions and reusing by-products;
  • Enhancing cooperation in by-product utilization through industrial symbiosis models.

This is an important step towards transforming Tang Loong IP into the first eco-industrial park in Lao Cai province, contributing to the province’s goals for sustainable development and a circular economy.

Some photos from the field survey at Tang Loong IP:

VNCPC