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 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

VIRI and VNCPC Co-organize an Information-sharing Program on Circular, Green, and Sustainable Agriculture

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On April 3rd and 4th, 2025, the program “Sharing Information and Knowledge on Circular, Green and Sustainable Agriculture” was organized in Tuyen Quang and Kien Giang provinces, both in-person and online.

The event is part of the project “Development of Eco-Fair women businesses in green and circular agriculture sector in Vietnam” (Eco-Fair 2), funded by the European Union (EU). The project is being implemented over three years (2024 – 2027) across four provinces: Bac Giang, Tuyen Quang, Binh Dinh, and Kien Giang.

The project “Development of Eco-Fair women businesses in green and circular agriculture sector in Vietnam” (Eco-Fair 2), funded by the European Union (EU)

Ecofair 2 aims to support women-led businesses, cooperatives, and individual production households, or enterprises with high proportion of female workers, in improving access to sustainable employment and business opportunities in green and circular agriculture, and promoting local social welfare activities.

The event attracted strong interest from businesses, production facilities, and cooperatives, who are the core targeted groups of the program. In addition, the event welcomed representatives from the Central Executive Committee of the Vietnam Farmers’ Union; Chairpersons and Vice Chairpersons of the Provincial Farmers’ Unions in the host provinces; and experts from the Vietnam Rural Industries Research and Development Institute (VIRI); the Institute of Policy and Strategy for Agriculture and Rural Development; the Vietnam Cleaner Production Centre Co. Ltd. (VNCPC); the Vietnam Organic Agriculture Association (VOAA), along with other advisors and specialists of the program.

Mr. Do Tran Thinh, Provincial Party Committee member and Chairman of the Kien Giang Farmers’ Union remarked at the workshop.

Dr. Nguyen Bao Thoa, Director of VIRI and Program Director of EcoFair 2, emphasized during her speech “Agriculture is not only a key sector of the economy but also an essential component of ensuring social welfare. This event focuses on sharing information, knowledge, and practical solutions for sustainable agriculture, reducing environmental impact, improving production efficiency, protecting natural resources, and enhancing labor productivity.”

Experts at the event provided valuable insights on topics such as sustainability certification, carbon credits, and Resource Efficient and Cleaner Production (RECP) practices.

Dr. Le Xuan Thinh, Director of VNCPC presented topic on RECP.

The next program is scheduled to take place on April 18, 2025, in Binh Dinh province.

Previously, the project “Promoting Supply and Demand for Eco-Fair Agri-Food Processing Products in Vietnam” (EcoFair), also funded by the EU, was implemented from April 2020 to May 2023.

The project was carried out nationwide, supporting Vietnamese micro, small, and medium-sized enterprises (MSMEs) in the fields of meat processing, seafood, rice, cashew nuts, vegetables, and fruits. The project helped to improve production processes and product quality in the context of international integration, while also raising public awareness and trust in locally made goods.

VNCPC continues to collaborate with VIRI to implement the Eco-Fair 2

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The program titled “Development of Eco-Fair women businesses in green and circular agriculture sector in Vietnam” (Eco-Fair 2) is funded by the European Union (EU) and implemented from 2024 to 2027 by the Vietnam Rural Industries Research and Development Institute (VIRI), in collaboration with the Vietnam Cleaner Production Centre Co. Ltd. (VNCPC).

The program is being carried out in four provinces: Bac Giang, Tuyen Quang, Binh Dinh, and Kien Giang. Its objective is to support women-led businesses, cooperatives, and individual business households or those with a high proportion of female workers (WB) in improving their access to sustainable employment and business opportunities within the green and circular agriculture sector. Additionally, the program aims to promote social welfare activities in local communities.

Within this program, VNCPC plays the following key roles:

  • Training and sharing information on sustainable agricultural practices to enhance the capacity of WBs in adopting eco-fair, green, and circular agricultural production and business activities (sustainable agriculture);
  • Providing technical consulting and guidance on the application of sustainable agricultural practices at WBs through hands-on support in Resource Efficient and Cleaner Production (RECP), thereby contributing to emission reduction and job creation for women;
  • Directly supporting the development of green and eco-fair agricultural models for WBs in local areas; and
  • Advising on business planning and financial linkages for businesses and cooperatives participating in the program to expand their production capacity and market access.

Previously, the “Promotion of supply and demand for Eco-Fair agri-food processing products in Vietnam” (Eco-Fair) project, funded by the EU, was implemented from April 2020 to May 2023. This project was carried out nationwide, supporting micro, small, and medium-sized enterprises (MSMEs) operating in key agri-food sectors such as meat processing, seafood, rice, cashew nuts, vegetables, and fruits.

The project contributed to enhancing production processes and improving product quality in the context of international integration. At the same time, it helped shift community perceptions and build greater trust in domestic agri-food products.

Through its participation in the project, VNCPC performed the following key activities:

  • Compiling and disseminating online courses on Sustainable Consumption and Production (SCP);
  • Raising consumer awareness through online training programs, and establishing a network of ambassadors to drive positive change within the community;
  • Providing capacity building for 1,000 MSMEs in the field of the agri-food processing sector through accessible online learning platforms;
  • Raising awareness of eco-fair products and circular economy policies in the agri-food processing sector;
  • Conducting quick onsite assessments to identify opportunities for supporting 200 MSMEs in adopting more sustainable production practices;
  • Carrying out in-depth RECP assessment for 50 MSMEs to identify cost-saving opportunities, reduce product prices, and improve access to both domestic and foreign markets; and
  • Training for MSMEs on procedures and opportunities to access green financial resources, and supporting businesses in need in preparing bankable projects to apply for funding.

VNCPC

Biochar still lacks policy mechanisms to “green” the agricultural sector

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With diverse and abundant raw materials for production, biochar has great application in the agricultural sector. It helps to capture CO2 in the atmosphere and contributes to reducing greenhouse gas (GHG) emissions. However, there is still a lack of policy mechanisms to promote the commercialization of this product.

On March 18, 2024, in Hanoi, the Ministry of Agriculture and Rural Development (MARD) coordinated with the United Nations Industrial Development Organization (UNIDO) and Vietnam Cleaner Production Centre Company Limited (VNCPC) organized “Consultation workshop on policy review and recommendation report to promote biochar production and use in Vietnam”. The workshop attracted the participation of nearly 30 delegates from representatives of ministries and branches, representatives of units under the MARD, associations, businesses, and national experts.

“Consultation workshop on policy review and recommendation report to promote biochar production and use in Vietnam”  was held in Hanoi, attracting the participation of nearly 30 delegates

Biochar: Cheap raw material – big benefits

At the workshop, Mr. Vu Thanh Liem, Deputy Director of the International Cooperation Department (MARD) said that biochar is an environmentally friendly product, brings high economic benefits when used and is considered a “black gold” in the agricultural sector. In particular, biochar also can absorb about 50% of CO2 in the atmosphere, contributing to a significant reduction in GHG emissions in general and in agriculture.

Mr. Vu Thanh Liem, Deputy Director of the International Cooperation Department (MARD)

Regarding raw materials for biochar production in Vietnam, it is currently very abundant and diverse, most of which are agricultural by-products such as peanut shells, sugarcane bagasse, rice husks, coconut shells, cocoa shells, durian shells… to forest exploitation waste products can be used. In the past, these materials were often burned, causing environmental pollution, or used at very low value.

Putting these materials into biochar production not only solves environmental problems but also helps create jobs for rural labors. More importantly, biochar is also a source of organic fertilizer that helps improve soil and enhance sustainable crop productivity, which can replace chemical fertilizers.

Ms. Le Thi Thanh Thao, Country Representative at UNIDO Vietnam Country Office also said: In 2022, UNIDO coordinated with the MARD and VNCPC to organize 02 technical events on biochar and its benefits in protecting soil resources, living environment and human health, contributing to the sustainable development of Vietnam.

Ms. Le Thi Thanh Thao, Country Representative at UNIDO Vietnam Country Office

There are still barriers

According to the general assessment of the delegates: The benefits of biochar are becoming more and more known and receiving the attention of relevant parties, from research, production, trade, and practical application. However, there is still a lack of regulations on standardization and quality control of biochar products, a lack of cooperation and interaction between relevant parties, and pyrolysis technology for biochar production has not been recognized as a green technology… These factors are crucial drivers to promote biochar products to be more widely applied in life.

The representative of the UNIDO hopes that the knowledge and experience from experts will provide useful and updated information on the field of biochar in Vietnam, not only in terms of technique but also in terms of policy. On this basis, the organizing unit will receive and provide comments and consultations for the “Report on review and policy recommendations to promote biochar production and use in Vietnam”.

Ms. Do Thi Diu – VNCPC officer shared information about the project and pyrolysis technology

During the workshop, delegates also asked questions to learn more about the applications of biochar, contributed more information about policies, provided comments, and proposed additional research with more information to help develop regulations on quality control standards for biochar. Ministries and trade promotion agencies were also very interested and proposed developing pilot models using pyrolysis technology to create biochar for agricultural enterprises and cooperatives.

Through this meeting, the MARD, other ministries, UNIDO, and partners will coordinate to build a biochar working group including policymakers, researchers, manufacturers/businesses, trade promotion agencies/certification organizations, and users… to improve interaction between relevant parties in promoting production, business, and developing the biochar market, aiming to build a green, clean and sustainable agriculture.

At this conference, the website biocharvietnam.org, an online information repository about biochar in Vietnam, was officially introduced. It was established under the financial support of the State Secretariat for Economic Affairs (SECO) through UNIDO to share and disseminate knowledge, lessons, and initiatives in biochar research, production, and trade activities over the country.

Mr. Le Viet Hien – Representative of the unit receiving the transfer of the small-scale pyrolysis system in Vietnam

In Vietnam, Vina Viet Hien Company Limited is the only unit that has received technology transfer from Switzerland and successfully manufactured a pilot small-scale pyrolysis system for the cooperative model. With funding from the SECO and technical support from UNIDO, this technology has the potential to convert a variety of agricultural wastes into thermal energy and biochar, adding value for organic waste and agricultural residues, while also providing economic opportunities for farmers and agricultural processors, allowing on-site biomass energy supply and meeting strict emission standards.

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VNCPC coordinated with the MOIT to organize a training course on sustainable consumption and production

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During 2 days (September 21-22, 2023), in Hanoi, the Energy Efficiency and Sustainable Development Department (Ministry of Industry and Trade – MOIT) coordinated with Vietnam Cleaner Production Centre Co. Ltd, (VNCPC) organize basic training courses on sustainable consumption and production (SCP) for officials from the Department of Industry and Trade, Industrial Development Consulting and Industry Promotion Centre of provinces and cities, and individuals, units and organizations operating in the SCP field.

The training course had more than 40 delegates representing Departments of Industry and Trade, Industrial Development Consulting and Industry Promotion Center, consulting units and related units, from more than 20 Northern and North Central provinces.

Speaking at the opening ceremony, Mr. Cu Huy Quang, Deputy Chief of the Energy Efficiency and Sustainable Development Department emphasized: In addition to training basic knowledge, skills, and solutions to contribute to promoting SCP, the training course also contributes to establish a network of experts in SCP in the Northern and North Central regions to jointly support businesses to transform faster.

Mr. Cu Huy Quang, Deputy Chief of the Energy Efficiency and Sustainable Development Department emphasized the role of the training course.

Accordingly, the content of the training course focused on main contents including: Sustainable Production topic with a focus on: Economical and efficient use of Energy, water, materials, Use of chemicals safety and efficiency, Instructions for using calculation tools in energy audits…, Circular economy; Topic: Sustainable Resource Management; The topic of Sustainable Distribution and the topic of Sustainable Consumption, with presentations by experts from Hanoi University of Science and Technology, National Economics University and senior experts from VNCPC.

In addition to the above content, the training course is also designed with games, interactive exercises, and knowledge synthesis to increase attraction for students. The course has also received high appreciation from students.

Mr. Le Xuan Thinh, Director of VNCPC spoke at the training session.

Mr. Le Xuan Thinh – Director of VNCPC said: The 2-day training program in the North is the first training course to be held in 2023. Following this program, training courses will be conducted in Central region and Southern region in October and November.

After participating in the training course, delegates will receive a certificate from the Department of Energy Conservation and Sustainable Development. This is also the premise for the Ministry of Industry and Trade to build and expand a network of sustainable production and consumption across the country.

Some pictures of the training course:

VNCPC