Green transition – The key to enhancing competitiveness for manufacturing enterprises

As sustainable development and the green economy become a global necessity, the green transition is no longer optional but an urgent requirement for manufacturing enterprises. Policies such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and Vietnam’s Decree 06/2022/NĐ-CP have introduced strict greenhouse gas (GHG) emission reduction standards. This demands that businesses not only adopt green transition solutions but also integrate Environmental, Social, and Governance (ESG) factors to enhance competitiveness and meet international standards.

Green transition – An inevitable trend in manufacturing

With increasing pressure on businesses to reduce emissions and achieve Net Zero targets, the green transition has become essential. One of the most effective solutions is adopting solar power in manufacturing, enabling enterprises to reduce operational costs while aligning with ESG requirements.

In Vietnam, major corporations such as Voltaira (a subsidiary of FIT – Foxconn Interconnect Technology) have installed solar power systems at their manufacturing facilities. This helps lower electricity costs, secure a clean energy supply, and enhance brand reputation. It is also a crucial strategy to maintain competitiveness in the growing green economy and sustainability landscape.

A 1.24MWp solar power system developed by Vu Phong Energy Group at a leading automotive parts manufacturing facility.

Opportunities from green transition and solar power in manufacturing

Integrating solar energy into manufacturing not only reduces environmental impact but also provides significant economic benefits:

• Lower operating costs: Investing in renewable energy, particularly solar power, significantly cuts electricity expenses and optimizes production costs.
• Enhanced competitiveness: Green certifications, including solar-powered manufacturing, facilitate market entry into regions with strict ESG standards, such as Europe.
• Attracting investment: Green investment funds increasingly prioritize businesses with clear ESG strategies, where solar energy plays a pivotal role.

Additionally, government agencies are promoting policies to support solar power adoption in manufacturing, creating long-term sustainable development opportunities.

Green transition solutions with solar power in manufacturing

Investing in solar power systems

Installing solar power helps businesses reduce reliance on the national grid, particularly as electricity prices continue to rise. Zero Capex Solar models allow companies to use solar energy without upfront investment, optimizing cash flow while ensuring long-term economic benefits.

GHG inventory and energy efficiency optimization

Conducting a GHG inventory helps businesses assess baseline emissions and implement effective reduction strategies. Combining solar power with energy efficiency solutions ensures effective progress toward Net Zero goals.

Renewable Energy Certificates (I-RECs)

For businesses unable to generate enough renewable energy onsite, purchasing I-RECs offsets remaining emissions and ensures compliance with international sustainability standards. This is a crucial step in ESG implementation and global market competitiveness.

Some solutions to help green transition effectively for manufacturing enterprises

Trends and outlook for solar power in manufacturing

Vietnam has a strong advantage in solar power adoption due to high solar irradiation, especially in the southern regions. Many manufacturers are leveraging solar energy to meet ESG goals and optimize costs. Key emerging trends include:

• Battery energy storage systems (BESS): Maximizing solar power usage while ensuring a stable energy supply despite weather variations.
• The self-production and self-consumption models: Encouraged by government policies, allowing businesses to take control of their clean energy sources.
• AI-Powered energy management: Enhancing solar energy efficiency by enabling real-time monitoring and optimizing electricity consumption.

The green transition is an irreversible trend, and solar power in manufacturing is a strategic solution for emission reduction, cost savings, and competitiveness enhancement.

Vu Phong Energy Group is proud to support businesses in their green transition journey, offering optimal solar power solutions through the Zero Capex Solar model. For collaboration and consultation, please contact us at Hotline: 1800 7171 – (+84) 9 1800 7171 or Email: hello@vuphong.com.