Da Nang, 6 July 2018

Sustainable Consumption and

Cleaner Production Program (SCP)

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Sustainable Consumption and Production Program (SCP)

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Content

I. Practical and legal basis for implementation of the SCP

II. Objectives of the SCP

III. National Action Program for sustainable consumption and

production until 2020, with the vision to 2030

IV. Current status of implementation of SCP activities in the

industry and trade sector (2017-2018)

V. Conclusions and recommendations

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I. Practical and legal basis for implementation of the SCP

a) Practical basis (SCP)In Viet Nam, the assessment on results of nearly 30 years of renovation shows that we have gained significant achievements in economic development, ensuring social security and hunger eradication and poverty reduction. However, our country’s development in the current period mainly depends on expansion of the scale of investment and production through exploiting existing natural resources; labour productivity is still low; production technologies, consumption models use a lot of energy and materials and release a lot of wastes. Many natural resources are being exploited until exhaustion or used in a wasteful and inefficient manner. The natural environment in many places are seriously destroyed, polluted and degraded to the alarming level.

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I. Legal basis for the SCP (~25)

a. Laws (02); Resolutions of the Party and Government (05)

b. Directives of the Prime Minister (02)

c. Decisions of the Prime Minister (15)

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2001• Resolution of the 9th National Party Congress

2004• Decision 153/2004/QD-TTg

2007• Decision 1855/QD-TTg

2009• Decision 1419/QD-TTg

2010• Law on Energy efficiency and

conservation

2012

• Resolution 06/NQ-CP • Decision 1427/QD-TTg• Decision 1393/QD-TTg

Affirmed the requirement to build and develop the country in a sustainable way

“sustainable development is the inevitable pathway of Viet Nam” & “Change of production and consumption model towards an environmentally friendly model”

The National Target Program on Energy Efficiency and Conservation in the period 2012-2015

Strategy for Cleaner production in industry until 2020

b) Legal basis (SCP)

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2013 • Resolution 35-NQ/TW

2013 • Resolution 24-NQ/TW

2013 • Decision 1287/QD-TTg

2014 • Law on Environment Protection

2014 • Decision 403/QD-TTg

2014 • Resolution 08/NQ-CP

2015 • Directive 30/CT-TTg

Some urgent issues in environmental protection

Organizing implementation of Resolution 24-NQ/TW

Requiring to strengthen control of investment projects using a lot of energy, resources and causing environmental pollution

Approving the National Action Plan for Green growth (2014 –2020)

Actively responding to climate change, strengthening resource management and environmental protection

b) Legal basis (SCP)

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2016• Decision 76/QD-TTg

2016• Decision 2053/QD-TTg

2017• Decision 622/QD-TTg

2017• Directive 34/CT-TTg

2018• Decision 24/2018/QD-TTg

National Action Program on sustainable consumption and production until 2020, with the vision to 2030

Plan to implement the Paris Agreement on climate change

National Action Plan for implementation of the 2030 sustainable development agenda

Strengthening power saving

Promulgating the List and roadmap for energy-use vehicles, equipment that must be removed and low efficiency generators that will not be built

b) Legal basis (SCP)

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II. Objectives of the SCP• Mitigating environmental impacts on the economic development

process: increasing social welfare from economic activities by reducing resource consumption, degradation and pollution. • Applying the method of managing input materials, wastes throughout

the product life-cycle, minimizing the use of resources, wastes and pollution from resource exploitation, production of medium inputs, distribution, marketing, usage, removal of waste, reuse of goods and services.• Forming opportunities for developing countries, such as: creating new

markets, employment opportunities as well as managing better natural resources, effectively using resources wih environmentally friendly technologies.

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Methodology for sustainable consumption and production

• Product life-cycle

Product design

Resource exploitation and usage

Production

Distribution, Marketing

Consumption

DipsosalTái sửdụng

II. Objectives of the SCP

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III. National Action Program for sustainable consumption and production until 2020, with the vision to 2030 (SCP)

a. ObjecMves of the NaMonal AcMon Program for sustainable consumpMon and producMonNo. Target Indicator Period

1 Ratio of enterprises developing and implementing a roadmap for application and renovation of clean technologies

60-70% 2015-2020

2 Ratio of industrial production entities applying EE and cleaner production measures

50% 2015-2020

3 Succesful implementation of pilot project on ecological renovation (enterprise, industrial zone, industrial cluster)

2015-2020

4 Contributed value of the green industry, environmental industry, waste recycle

42-45% GDP 2015-2020

Reducing waste in distribution activities:

5 Training and capacity building for enterprises 50% 2015-2020

6 Reducing waste in distribution activities: reducing the use of non-biodegradable packages in supermarkets, trade centers

65% 2015-2020

7 Reducing waste in distribution activities: reducing the use of non-biodegradable packages in open markets

50% 2015-2020

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III. National Action Program for sustainable consumption and production until 2020, with the vision to 2030 (SCP)

No. Target Indicator Period

8 Ratio of recycling waste materials, paper, oil and steel/iron 90% 2015-2020

9 Ratio of recycling household solid waste 85% 2015-2020

10 Ratio of recycling non-hazardous solid waste 75% 2015-2020

11 Ratio of recycling, recovering construction waste 50% 2015-2020

12 Developing the model of green supply chain

13 Increasing the share of environmentally friendly products and services in export goods

2015-2020

14 Providing information, instruction to support application of management systems, environmental standards of some export markets

2015-2020

15 Providing information to consumers about environmentally friendly products

2015-2020

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Content 1: Creating the legal framework to encourage participation of individuals, organizations, enterprises in investment, implementation of areas related to sustainable consumption and production

1. Review, instruct the integration of contents, activities related to sustainable consumption and production into strategies, plannings, development plans of the country, sector and locality, programs on sustainable development, socio-economic development, environmental protection and hunger eradication and poverty reduction;

MOIT MPI; MOF 2015-2020

2. Research, develop supporting policies, incentives forinvestment in production of environmentally friendly products; MOIT - 2015-2020

3. Develop supporting policies for environmentally friendlyproducts and services and incentives to encourage the use of environmentally friendly products and services;

MONRE MPI 2015-2020

4. Develop and finalize policies to promote green public procurement activities; promulgate the list of priority environmentally friendly products and services in public procurement;

MOF MPI 2015-2020

Activities of SCP (Decision 76) Chairedby

Coordinated with

Implementation time

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4. Develop and finalize policies to promote green public procurement activities; promulgate the list of priority environmentally friendly products and services in public procurement;

MOF MPI 2015-2020

5. Review and propose policies to encourage investment, development of distribution channels, network for purchasing green goods; develop sustainable supply chains;

MOIT MPI 2015-2020

6. Develop and finalize international trade policy, export tax policy, import tax policy for environmentally friendly products in conformity with the international and regional integration roadmap, environment agreements, bilateral and multilateral trade agreements;

MOIT MPI 2015-2020

7. Research, finalize the mechanism for coordination, public-private partnership in implementation of sustainable consumption and production.

MONRE MPI 2015-2020

8. Develop and finalize the policy framework to promote activities of circulating, recycling, reusing waste MONRE MPI 2015-2020

Content 1: Creating the legal framework to encourage participation of individuals, organizations, enterprises in investment, implementation of

areas related to sustainable consumption and production

Activities of SCP (Decision 76) Chairedby

Coordinatedwith

Implementation time

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Content 2: Improving community awareness, enhancing capacity of enterprises in sustainable consumption and production

1. Conduct activities of propaganda, dissemination, improvement of awareness of sustainable consumption and production; MONRE MOIT, PC, MIC

2. Organize training and disseminate knowledge, policies, laws on sustainable consumption and production to staffs, enterprises; MONRE MOIT, PC, MIC

3. Organize ceremonies to commend, award successful cases of sustainable consumption and production; Organize competitions to call upon participation of the community, enterprises to promote sustainable consumption and production;

MONRE MOIT, PC, MIC

4. Integrate educational contents on sustainable consumption and production into the national education program, vocational training and professional education at colleges, universities, vocational schools;

MOET MOIT, PC, MIC

5. Disseminate and replicate models of practicing sustainable consumption and production in the community. MONRE MOIT, PC, MIC

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Content 3: Ecological renovation: application of product life-cycle approach

1. Research, propose policies to promote activies of ecological renovation in manufacturing enterprises, industrial zones, industrial clusters;

MOIT

MPI, MONRE, MARD, MOC, MOT

2015-2020

2. Organize activities of propaganda, knowledge dissemination to raise awareness, enhance capacity of implementing ecological renovation for enterprises and related subjects;

MOIT

MPI, MONRE, MARD, MOC, MOT

2015-2020

3. Organize training, provide technical assistance to implement ecological renovation in manufacturing enterprises, industrial zones, industrial clusters; develop technical guidelines for implementation of ecological renovation in various sectors/areas.

MOIT

MPI, MONRE, MARD, MOC, MOT

2015-2020

4. Support development and dissemination of the demonstration model of ecological renovation implementation in manufacturing enterprises, industrial zones, industrial clusters.

MOIT

MPI, MONRE, MARD, MOC, MOT

2015-2020

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Content 4: Promoting production and supply of environmentally friendly products and services to meet the need for sustainable conconsumption

1. Assess development status, supply capacity and market needs for environmentally friendly products; Propose the list of priority environmentally friendly products for development investment support;

MOITMONRE, MOF~

2. Research, apply, master the clean technologies, environmentally friendly technologies and production technologies of environmentally friendly products;

MOItMONRE, MOF~

3. Develop and guide the application of specialized incentives to attract enterprises to manufacture environmentally friendly products.

MOITMONRE, MOF~

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Content 5: Developing a sustainable distribution system:(Greening the distribution system and developing distribution channels and green shopping network)

1. Assess current status of supplying environmentally friendly products; infrastructure system and activities serving for distribution of products and services;

MOIT PC

2. Support implementation of developing, disseminating, replicating several pilot models of distributing environmentallyfriendly products and services;

MOIT PC

3. Provide guidance, technical assistance, develop pilot model of cleaner production and energy saving application MOIT PC

4. Develop the standard system and give certificates to green and environmentally friendly distribution models; MOIT PC

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Content 6: Developing sustainable supply chains

1. Survey, assess current status and select to develop in a pilot scale some sustainable supply chains for products in sectors of agricultural products and food, textile and leather shoes;

MOIT, MARD

-

2. Support pilot application and replication of models of sustainable supply chain of products and services of the economy;

MOIT, MARD

-

3. Propose mechanism, policies to support, enhance links between material suppliers – manufacturers – distributors –consumers in production and consumption of environmentally friendly products and services.

MOIT, MARD

-

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Content 7: Enhancing competing capacity of export enterprises and ability to approach markets, participate in the global supply chain

1. Assess market potential and capacity to supply environmentally friendly products of Viet Nam; Research opprotunities for trading, exporting, participating in the global value chain for Viet Nam’s key export products when having green label, energy efficiency label and other ecological labels;

MOITMARD,MOF, MOST

2. Support trade promotion, market approach for Viet Nam’s ecological-labeled products; MOIT

MARD,MOF, MOST

3. Develop the database, guidelines on systems of regulations and standards for sustainability of export markets; MOIT

MARD,MOF, MOST

4. Provide guidance, technical assistance to enterprises to apply international standard systems, standards of importers for environment and sustainable development;

MOITMARD,MOF, MOST

5. Develop standards and give certificates for models of sustainableexport enterprises. MOIT

MARD,MOF, MOST

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Content 8: Green public procurement

1. Assess current situation of public procurement in thegovernment agencies and enterprises; Develop the list and roadmap for applying mandatory procurement of products having green label, energy efficiency label and other ecological labels;

MOF MOIT, MPI...

2. Develop regulations, policies to promote green public procurement for government agencies and enterprises;

MOF

3. Develop and disseminate guidelines on green public procurement.

MOF

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Content 9: Plan for reducing, recycling, and reusing waste (3R)

1. Provide guidance, implement in pilot scale and disseminate techniques, practicing models of reducing, recycling and reusing solid waste in residential, production and business, commerce and service areas;

MONRE PC

2. Provide guidance, implement classification of solid waste at source; Pilot application and replication of models of classification of waste at source in the community and enterprises;

MONRE PC

3. Organize communication activities to enhance awareness of the community and enterprises about 3R; MONRE PC

4. Develop and finalize the legal policy system to promote activities of reducing, recycling and reusing waste. MONRE PC

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Content I: Developing the legal framework Implementing agency1. Research to develop technical regulations on certification of products from waste recycle in the industry and trade sector ISEA

2. Research to propose solutions to promote the activity of low-carbon labeling for industrial products of Viet Nam ISPONRE

3. Research to propose policies to support development of sustainable supply chain for the industrial sector of Viet Nam – (Milk and Plastics) Planning Department

4. Research to develop methods and apply the carbon emission calculationin enterprises in Textile and Leather shoes sector EPRO Consulting JSC

5. Research to propose solutions to promote sustainable production and consumption in Viet Nam, in comformity with the committed contents in the Free trade agreements and other international cooperation frameworks of Viet Nam

Planning Department

6. Research to integrate contents of SPC into development strategies, planning of the industry and trade sector

Planning Department

7. Research to propose policies to develop distribution channels of environmentally friendly products Domestic Market Department8. Research, propose to develop and finalize policies of international trade for supporting development of environmentally friendly products in conformity with the international integration roadmap of Viet Nam Import and Expert Agency

IV. Current status of implementation of SCP activities in the industry and trade sector (2017-2018)

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IV. Current status of implementation of SCP

activities in the industry and trade sector

(2017-2018)

Content II. Enhancing awareness, implementation capacity

Implementing

agency

1. Develop plan and implement propaganda activities on sustainable development, sustainable production and consumption in the industry and trade sector EESD

2. Develop the green development management system in industry and pilot application for the thermal power production sector in Viet Nam

Electric Power University

3. Organize the national specialized training workshop on sustainable production and consumption EE&C Association

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1. Survey to assess potential of implementing ecological renovation in industrial sectors EPRO Consulting JSC2. Research, develop the pilot model of applying ecological renovation for enterprises in the beverage sector IPSI

3. Research, develop the pilot model of applying ecological renovation for enterprises in the paper and pulp sector

CCS

4. Research, develop the pilot model of applying ecological renovation for enterprises in the paper and pulp sector CCS

5. Research, apply the model of ecological renovation for enterprises in the shoe-making sector EPRO Consulting JSC

6. Research, apply the model of ecological renovation for enterprises in the industrial ceramic sector

Vietnam National Research Institute For Industrial Ceramic And Glass

7. Research, apply the model of ecological renovation for enterprises in the seafood processing sector

Natural Resources and Environment Consultancy and Service Center

8.Research, propose policies to promote activities of ecological renovation in manufacturing enterprises, industrial zones, industrial clusters

Department of Science and Technology

IV. Current status of implementation of SCP activities

in the industry and trade sector (2017-2018)

Content III. Ecological renovation

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Content IV. Developing production of environmentally friendly products and services

1. Develop the list of priority environmentally friendly products for development until 2025

Cleaner Production and environment Center

2. Research to identify the priority orientation of development of clean technologies, environmentally friendly technologies in the weaving and dyeing sector and paper and pulp sector

Clean Technology Institute –Environment Technology Association

3. Research to identify the priority orientation ò development of clean technologies, environmentally friendly technologies in the steel sector (electric arc furnace technology)

School of Material Science and Technology – Hanoi Unviversity of Science and Technology

4. Research, apply and disseminate solutions of enhancing efficiency of using resources, energy in supermarkets, trade centers

GRECO Development JSC

IV. Current status of implementation of SCP activities in the industry and trade sector

(2017-2018)

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Content V. Developing the sustainable distribution system Implementing agency

1. Develop the system of assessment criteria, indicators and givecertificates for the green retail distribution system

Commerce Reserach Institute

2. Assess market potential and capacity to provide, distribute environmentally friendly products of production and business enterprises in the city

DOIT of Hanoi City

3. Develop the Program for developing sustainable distribution system for Vietnamese textile enterprises

Domestic Market Department

IV. Current status of implementation of SCP activities in the industry and trade sector

(2017-2018)

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IV. Current status of implementation of SCP

activities in the industry and trade sector

(2017-2018)

Content VI. Developing sustainable supply chain Implementing agency

Research to assess current status of production, distribution, shopping behaviour and propose solutions to develop organic vegetable products in Viet Nam

International Environment Company Ltd.

Rearch to develop, implement pilot model of administration and distribution of clean agricultural products to trace origin of beef products

Agricultural Policy Consultancy Center

Research, assess current status and propose solutions to develop sustainable supply chain for the leather shoe sector of Viet Nam National Economics University

Assess current status and propose solutions to develop sustainable supply chain for the beverage sector of Viet Nam

Q & G Economics and Environment Research Center Company Limited

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Content VII. Enhancing competing capacity and promoting export Implementingagency

1. Assess current status and propose priority programs, activities to enhance competing capacity for Vietnamese enterprises to meet the conditions for export products in the environmentally friendly orientation. Trade University2. Program of enhancing competing capacity for Vietnamese enterprises to meet the conditions for export products in the environmentally friendly orientation. Trade University

Trade University3. Database/information about relevant regulations on environmental technical boundaries; ecological labels of export markets, foreign distributors in Viet Nam for export products which are environmentally friendly Trade University

IV. Current status of implementation of SCP activities in the industry and trade sector

(2017-2018)

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V. Recommendations

• Implementation organization• Activities in the first 2 years mainly focus on developing policies, legal

framework, programs at the central level (MIIT, MONRE, MOF …)• Participation of localities mainly in cleaner production activities.• Links between the Program and Corporations, Companies are weak.• There is no full report on development of local action programs (Official

Letter 2379/BCT-TKNL, except for Hanoi and Dong Nai)• Official issuance in the coming time the set of national indicators for

sustainable production and consumption of the industry and trade sector.• Develop the database system as basis for monitoring and evaluation

(currently not available)

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• Activities have been implemented not synchronously; some activities were not implemented in accordance with Decision No.76 and need attention in the coming time: - Develop and guide the application of typical incentives to attract enterprises to manufacture environmentally friendly products.- Support pilot application and replication of models of sustainable supply chains of products and services of the economy;- Propose supporting mechanism, policies, enhancing links between material suppliers – manufacturers – distrobutors – consumers in production and consumption of environmentally friendly products and services.

V. Recommendations

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• Assess the market potential and capacity of supplying environmentally friendly products of Viet Nam;• Research opportunities for trading, exporting, participating in the

global chain value of key export products of Viet Nam;• Strengthen links between the Program with the Corporations,

Companies, enterprises having export products;• Support trade promotion, market approach for Vietnamese products

having ecological labels; • Develop standards and give certificates for sustainable export

enterprise model.

V. Recommendations

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Thank you for your attention!

Energy Efficiency and Sustainable Development Department Address: 54 Hai Ba Trung, Hoan Kiem, Ha Noi.Tel: 22202358

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No. List of legal documents

1 Resolution of the 9th National Party Congress affirmed the requirement to build and develop the country in a sustainable way.

2 Decision No. 153/2004/QD-TTg dated 17 August 2004 of the Prime Minister on issuance of the orientation of sustainable development strategy in Viet Nam

3 Decision No. 1855/QD-TTg dated 27 December 2007 of the Prime Minister on approval of the National energy development strategy of Viet Nam until 2020, with the vision to 2050

4 Decision No. 1419/QD-TTg dated 07 September 2009 of the Prime Minister on approval of the “Cleaner production strategy in industry until 2020"

5 Resolution No. 06/NQ-CP dated 07 March 2012 of the Government on issuance of the Action program of the Government in the period 2011-2016

6 Decision No. 1393/QD-TTg dated 25 September 2012 of the Prime Minister on approval of the National Strategy for Green Growth

7 Decision No. 1427/QD-TTg dated 02 October 2012 of the Prime Minister on approval of the National Target Program on energy efficiency and conservation in the period 2012-2015

8 Resolution No.35/NQ-CP dated 18 March 2013 of the Government on some urgent issues in environment protection

9Resolution No. 24-NQ/TW dated 03 June 2013 of the Central Executive Commitee of the 11th Party Congress on active response to climate change, enhancing management of resources and environment protection

10Decision No.1287/QD-TTg dated 02 August 2013 of the Prime Minister on assigning tasks to implement the Resolution No. 24-NQ/TW on active response to climate change, enhancing management of resources and environment protection

Reference Annexes

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No. List of legal documents

11

Resolution No. 08/NQ-CP dated 23 January 2014 of the Government on issuance of the Action program to implement the Resolution No. 24-NQ/TW dated 03 June 2013 of the Central Executive Commitee of the 11th

Party Congress on active response to climate change, enhancing management of resources and environment protection

12 Decision No. 403/QD-TTg dated 20 March 2014 of the Prime Minister on approval of the National Action Planfor Green growth in the period 2014 - 2020

13Decision No. 1292/QD-TTg dated 01 August 2014 of the Prime Minister on approval of the Action plan to develop the environment and energy efficiency industry to implement the Strategy for industrialization of Viet Nam in the cooperation framework between Viet Nam and Japan towards 2020 with the vision to 2030

14 Directive No.30/CT-TTg dated 27 November 2015 of the Prime Minister on enhancing control of investment projects which use al lot of energy, resources and cause environmental pollution

15 Decision No. 76/QD-TTg dated 11 January 2016 of the Prime Minister on approval of the National Action Program for suatinable production and consumption until 2020, with the vision to 2030

16 Decision No. 428/QD-TTg dated 18 March 2016 of the Prime Minister on approval of the revised National power development planning in the period 2011-2020 with the vision to 2030

17 Decision No. 2053/QD-TTg dated 28 October 2016 of the Prime Minister on the Plan to implement Paris agreement on climate change

18 Decision No. 622/QD-TTg dated 10 May 2017 of the Prime Minister on issuance of the National Action Plan for implementation of the 2030 Sustainable Development Agenda

19 Directive No. 34/CT-TTg dated 07 August 2017 of the Prime Minister on strengthening power saving

20 Decision No. 24/2018/QD-TTg dated 18 May 2018 of the Prime Minister on promulgating the List and roadmap for energy-use vehicles and equipment to be removed and low efficiency generators that will not be built

- The plan of fuel saving and efficient use of resources in some processing industries until 2025 approved by the Prime Minister

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Action plan of MOIT to implement the National action plan for implementation of 2030 sustainable development agenda (Decision 4917/QD-BCT)

No. Decision 662 Objectives

1 Objective No. 2 3b. Revise and prevent commercial barriers and measures which distort the worls agricultural market to conform to the tasks of Doha development negation round, including removal of all price subsidies for argricultural export and export measures having similar impacts.

2 Objective No. 7 1: By 2020, basically 100% households have access to electricity; by 2025 reaching 100%; by 2030 ensuring nationwide access to affordable, reliable and modern energy services

3 Objective No. 7 2: By 2030, increaseremarkably the share of RE in total national primary energy consumption, specifically 31% in 2020 and 32.3% in 2030.

4 Objective No. 7 3: By 2030, double the speed of improving energy efficiency; reducing power consumption by 10% compared to the baseline scenario

5 Objective No. 7 4: By 2030, expand the infrastructure and upgrade technologies to provide modern and sustainable energy services for everyone, espeacially for remote, mountainous and island areas

6 Objective No. 8 4: By 2030, gradually increase efficieny of resource use in production and consumption, reduce impacts of economic growth on the environment, in conformity with the 10-year Program frame on sustainable consumption and production of Viet Nam.

7 Objective No. 9 2: By 2030, promote overall and sustainable industrialization; upgrade the infrastructure and supporting industries towards sustainability, increased resource use efficiency and appy clean and environmentally friendly production process; increase remarkably the rate of employment and gross domestic product of the industrial sector

8 Objective No. 9 3b. (Enhance capacity of SMEs in approaching funds and participating in the global chain)

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Action plan of MOIT to implement the National action plan for implementation of 2030 sustainable development agenda

No. Decision 662 Objectives9 Objective

No. 105.5. Point b. Develop and facilitate to narrow the development distance between countries (ensuring representation and voice of developing countries)

10 Objective No. 12

1. Implement the frame of the 10-year Program frame on sustainable consumption and production of Viet Nam in accordance with international commitment.

11 Objective No. 12

2b. (Sustainable production and consumption)

12 Objective No. 12

3b. By 2030, reduce by half the amount of food waste per capita and reduce food loss in the production and supply chain, including loss after harvest

13 Objective No. 12

4a.ion By 2020, achieve good management of life cycle of chemicals and wastes in accordance with the signed international commitments, to reduce soil, water, air environment pollution and negative impacts on human health and the environment

14 Objective No. 17

1. Enhance implementation method and promore global partnership for sustainable development

15 Objective No. 17

2. Improve quality and added value in export. Strive for the export growth rate of over 10%/year