As the world moves towards the goal of “Net Zero” emissions, multinational corporations are imposing increasingly strict requirements on their suppliers. One of the most critical criteria is the “greening” of production. This has transformed the “green factory” concept from a voluntary trend into a mandatory standard for any business wishing to participate and maintain its position in the global supply chain.
An Inevitable Trend Driven by Global Commitments
Major markets such as the European Union (EU), the United States, and Japan are aggressively implementing carbon reduction policies. The EU has enacted the Carbon Border Adjustment Mechanism (CBAM), which requires imported goods to provide transparent data on the emissions generated during their production. This means that Vietnamese businesses seeking to export to the EU must prove that their manufacturing processes meet green standards.

For industries with high export turnover, such as textiles, footwear, electronics, and steel, delaying the transition to sustainable production models will result in a loss of competitive advantage.
“Greening”: From a Trend to a Mandatory Condition
In the past, many businesses viewed investing in green technology or using renewable energy merely as a way to build their brand image. Today, however, it has become a mandatory requirement from partners. Corporations like Nike, LEGO, Samsung, and Apple have all established compulsory criteria for their suppliers to reduce emissions and use a specific percentage of renewable energy.
A factory that fails to meet these criteria will be removed from the supply list, regardless of its production capacity.

Rooftop Solar Power: A Practical Solution for Businesses
Among the various solutions for saving energy and reducing emissions, rooftop solar power is considered the most feasible for Vietnamese businesses. Given the country’s tropical climate with abundant sunshine, the potential for harnessing solar energy is immense. Installing a solar power system offers several distinct benefits:
- Reduced Operating Costs: Businesses can generate their own clean electricity, reducing their dependence on the traditional grid, especially as electricity prices trend upwards.

- Meeting ESG Requirements: Using solar power helps a company achieve a higher score in Environmental, Social, and Governance (ESG) assessments, which are a key consideration for many international corporations when selecting suppliers.
- Creating a Competitive Advantage: Products manufactured using renewable energy are often preferred by the market, can more easily obtain green certifications, and command a higher export value.

In addition to directly using clean energy, businesses can register for Renewable Energy Certificates (I-REC) to demonstrate their commitment to emissions reduction. This serves as a “green passport,” helping Vietnamese products overcome technical barriers while providing leverage in negotiations with international corporations.
It is clear that the “green factory” has become a prerequisite for Vietnamese businesses to integrate more deeply into the global supply chain. This is not just a matter of cost but a strategic investment to maintain long-term competitiveness. The pioneering businesses that transition early will hold a significant advantage in accessing markets, attracting international partners, and affirming their brand’s reputation.