Vietnam’s energy firm identifies 3 emissions violations among Vietnamese enterprises

Looking ahead, 2030 is a milestone year, as major global brands such as Unilever, Nestlé, H&M, and Nike have committed to cutting Scope 1 and Scope 2 emissions by 50-65%, said Pham Dang An, CEO of Vu Phong Energy Group, a major developer of clean energy in Vietnam.

An explained at the workshop titled “Green solutions for businesses in the era of climate change - opportunities and actions,” held on Wednesday in Ho Chi Minh City.

Expanding on Scope 1 emissions, An said that fuel is also burned in mobile equipment, including internal transport vehicles like employee shuttle buses, trucks, and containers. Additionally, greenhouse gases can leak from equipment such as air conditioners and refrigeration units.

Scope 2 emissions involve indirect emissions from purchased energy, including electricity, steam, heat, chilled water, and compressed air. Scope 3 encompasses all other indirect emissions along the supply chain, such as third-party logistics, outsourced services and production, rented or leased equipment, recycling, and franchised operations.

An noted that since 2009, Vu Phong Solar has been a pioneer in the solar energy sector, launching large-scale projects and introducing the Zero Capex Solar solution for manufacturing plants.

By 2025, Vu Phong Energy expanded to the Zero Capex group model, offering emissions reduction solutions while helping manufacturers optimize costs.

“Starting January 1, 2026, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will be fully implemented. If you can’t reduce emissions, you’ll have to pay taxes. Our entire ecosystem - from importing goods to manufacturing, distribution, and consumer sales - must factor in emissions. This is something every business must care about,” said An.

Looking ahead, An identified 2030 as a milestone year, as major global brands such as Unilever, Nestlé, H&M, PepsiCo, ASICIS, and Nike have committed to cutting Scope 1 and Scope 2 emissions by 50-65%.

Tech giants like Google, Microsoft, Apple, and packaging company Tetra Pak have gone even further, pledging to achieve net-zero emissions in both categories.

Despite these commitments, Tran Thanh Tam, deputy head of the science, technology, and foreign relations department at HCMC University of Natural Resources and Environment, said that emissions reduction remains a major financial challenge - especially amid current market difficulties.

He emphasized that businesses cannot afford to ignore the issue, particularly as CBAM reporting becomes mandatory from January 1, 2026.

“For example, a local furniture manufacturer exporting to Europe was recently required by an EU importer to submit a CBAM report. Without it, they couldn’t export,” said Tam.

Agreeing with this concern, Vo Minh Quan from the Business Association of High Quality Vietnamese Products shared that a 2024 green consumption survey by the Business Association of High Quality Vietnamese Products found that 80% of small and medium-sized enterprises (SMEs), which make up the bulk of Vietnam’s economy, lack a clear ESG (environmental, social, and governance) strategy.

“Many businesses still view ESG and sustainability as costs rather than investments. This mindset leaves them unprepared for new legal requirements like CBAM, the Environmental Protection Law, or requests from export partners for eco-labels and carbon certifications,” said Quan.

He also pointed out that most companies lack dedicated personnel in ESG, climate, or environmental management, and do not have systems in place for collecting and analyzing key data, such as energy use, emissions, water consumption, and waste. Internal training programs and knowledge sharing from professional organizations are also severely lacking.