In the context that the world is moving towards sustainable development, many big brands in the plastic industry have implemented solutions such as using clean energy in the manufacturing process, using environmentally friendly PET raw materials, and creating and implementing a circular economy model…
A new problem of the plastic industry
The plastics business is a dynamic industry in Vietnam’s economy, with a high annual growth rate. Despite typical challenges created by the Covid-19 outbreak, according to statistics from the Vietnam Plastics Association, the plastic sector continued to develop in production and business in 2020. In comparison to 2019, plastic export turnover climbed by 6.3 percent, while total industry revenue increased by 10.8%. Vietnamese plastic products are not only widely used in daily life, serving a variety of domestic industrial production industries, but they are also exported to 150 countries around the world, including markets with developed and discerning industries like Japan, the European Union, and the United States…
The EU-Vietnam Free Trade Agreement (EVFTA), which went into force in August 2020, has increased opportunities for the plastics industry, as the EU market accounts for around 18.2 percent of Vietnam’s total plastic export turnover and plastic products. However, in order to take advantage of this opportunity and maintain growth momentum, apart from improving raw material production capacity and reducing reliance on imported materials, the plastic industry must face a new problem: the use of environmentally friendly plastic products. This is an inevitable trend in both the global and Vietnamese plastic industries.
The green consumer trend and sustainable development are providing a new problem for the plastics industry (Illustration image of the internet)
Many businesses are pioneers in the direction of sustainable development
In the context of the world toward sustainable development, a number of businesses have proactively pioneered solutions such as switching to environmentally friendly, biodegradable plastic materials (PET) for production and have exported to many major markets around the world, including the EU. Some businesses have invested in modern technology and implemented the circular economy, focusing on recycling and reusing the quantity of plastic released into the environment, helping to reduce pollution and toward sustainable development.
Installing a solar power system at a plastic factory or using the BLT (Build – Lease -Transfer) model to use clean energy in the manufacturing process without having to spend capital is also an option that many plastic companies are looking at. Mekong Plastics, Thai Duong Plastics, Tien Phong Plastics, Duy Tan Plastics, Rang Dong Plastics, and others, among others, have pioneered the installation of solar power for plastic factories.
Solar power system on the roof of a plastic factory installed by Vu Phong Energy Group
Vu Phong Solar – Vu Phong Energy Group built and installed the solar power system in the photo above for a large manufacturer of reusable plastic packaging in Vietnam. With over 15 years of development experience, this business now has many customers and partners in the United States and Europe. A solar power system has been installed in Tien Giang, one of the company’s three plants. The project makes use of 1,998 high-efficiency 450Wp solar panels, 10 SMA 75KW grid-tie inverters, high-quality auxiliary frames, and wiring with a 30-year design life. This project has a unique aspect in that it is built using the BLT (Build, Lease, Transfer) model, which is currently attracting the attention of many businesses and is being chosen as a means of “greening” production. (Learn more about the BLT model for solar power.)
The green consumer trend is gaining traction around the world, including in Vietnam. Efforts to invest in production to generate “green” and “clean” products, as well as the development of a green brand connected with sustainable development, can be considered a key issue for businesses to withstand and breakthrough. The fact that many plastic businesses invest, install solar power systems, use clean energy sources in production, use modern technologies and environmentally friendly materials, and pay attention to recycling solutions… can be seen as a positive sign for the plastic industry’s development, as well as the Vietnamese industry’s overall development. This also demonstrates businesses’ awareness of the necessity of creating a healthy business environment, aligning their interests with the communities, and protecting the living environment.
Vu Phong Energy Group