The Vietnam Steel Association has announced that Vietnam’s steel industry has targeted to achieve carbon neutrality by 2050 and has started transitioning to a greener model of production.
Nghiem Xuan Da, Chairman of the Vietnam Steel Association, said that some steel mills in Vietnam have started generating electricity from the excess heat from their factories, aiming to reduce negative environmental impacts and increase energy use.
He emphasized that the nation’s steel industry is actively participating in the government’s sustainability efforts by implementing digital transformation, optimizing technology, and improving overall efficiency.
To support these goals, the Vietnamese government has launched an action plan to achieve carbon neutrality in the industrial and commercial sectors by 2030. The plan aligns with the country’s commitment to net-zero by 2050.
Vietnam ranks 13th among the biggest crude steel producers around the world and leads the Association of Southeast Asian Nations (ASEAN) countries in both steel production and consumption.
However, the steel industry is a major emitter, and currently uses a substantial amount of fossil fuels- accounting for 7 to 9% of the country’s total carbon emissions.
Ma Khai Hien, director of the Energy Conservation Research and Development Centre, said Vietnam's steel manufacturing companies will face challenges in lowering the emissions as the average rate of greenhouse gas emissions is about 23% higher than the world average.