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Shin-Etsu Vietnam saves over VND 5 billion per year through RECP implementation

By implementing Resource Efficiency and Cleaner Production (RECP) solutions – from simple technical adjustments to larger-scale investments Shin-Etsu Magnetic Materials Vietnam Co., Ltd. (100% Japanese-owned, located in Deep C Industrial Park, Hai Phong) has saved more than VND 5 billion per year and reduced over 2,000 tons of CO₂ emissions, becoming one of the exemplary enterprises applying the Eco-Industrial Park (EIP) model in Vietnam.

A large-scale enterprise in rare-earth magnet manufacturing

Established in 2011 with a total investment of nearly USD 450 million, Shin-Etsu Vietnam currently operates three factories on an area of more than 200,000 m² and employs 2,159 workers.
The company specializes in producing rare-earth magnets – an essential material used in various industries such as motors, automobiles, electronics, wind energy, and healthcare.

Products of Shin-Etsu Vietnam and their applications in daily life.

From initial skepticism to breakthrough transformation

In 2022, when the project “Implementing EIPs in Vietnam through the approach of the global EIP programme”, funded by the Swiss State Secretariat for Economic Affairs (SECO) and implemented by UNIDO in cooperation with the Ministry of Planning and Investment, invited Shin-Etsu to participate, the Japanese leadership believed the factory had already been optimized according to Kaizen principles for many years and that few further improvements were possible.

According to Ms. Nguyen Thi Lien, in charge of Environment – Health – Safety (EHS, HOS), it took more than two months of persuasion before the company agreed to allow the expert team to conduct a highly restricted assessment.

Ms. Nguyen Thi Liên shared at the Sustainable Production Expert Training Course organized by the Ministry of Industry and Trade in Quang Ninh, November 2025.

However, after only three days of on-site assessment, the working team led by expert Đinh Mạnh Thắng (VNCPC) identified 21 feasible saving opportunities related to electricity, water use, and internal management.

Savings surpassing all expectations

  • In 2022 alone, Shin-Etsu implemented 19 out of 21 solutions with a total investment of USD 200,520.
    The results were remarkable:
  • USD 257,000 saved annually (equivalent to over VND 5 billion)
  • 2,031 tons of CO₂ emissions reduced

Improved working conditions and operational performance

  • Many solutions were simple yet highly effective, such as:
  • Setting air conditioners to 26°C
  • Strengthening industrial maintenance: repairing steam trap leaks, cleaning air compressor filters, air-conditioning filters, etc.
  • Ventilating the compressor room
  • Adjusting water flow in hand-washing areas

According to Ms. Liên, “Small improvements brought results far beyond expectations. They also helped the company meet the strict environmental standards required by EU and U.S. customers.”

Continued strong investment driven by confidence in improvement results

From 2023 to 2025, Shin-Etsu Vietnam continued investing more than USD 2 million in RECP solutions.
In 2023 alone, nearly USD 1.4 million was spent on new machinery and equipment, including four air compressors. These investments are considered to have high returns on investment (ROI) and significantly enhance production efficiency.

Investment and cost savings at Shin-Etsu over the years through RECP implementation.

During this period, Shin-Etsu Vietnam also implemented 35 additional RECP solutions, further optimizing the entire production line.

The company’s success demonstrates clearly that RECP not only protects the environment but also delivers tangible economic value to businesses.

The EIP Project – A launchpad for sustainable production in Vietnam

The project “Implementing Eco-Industrial Parks in Vietnam Through the Approach of the Global EIP Programme” (2020–2024), funded by SECO and implemented by UNIDO and the Ministry of Planning and Investment, aims to:

Enhance productivity and resource efficiency

Improve economic – social – environmental performance of enterprises

Contribute to promoting sustainable production in Vietnam

Deep C Industrial Park, Amata Industrial Park, and more than 100 participating enterprises have reported many positive outcomes.

VNCPC

VNCPC conducts field survey at Tang Loong industrial park (Lao Cai)

From October 14-16, a working delegation from the Vietnam Cleaner Production Centre Co.Ltd. (VNCPC) and Green Ventures Vietnam Joint Stock Company coordinated with the Management Board of Lao Cai Economic Zone to conduct a field survey at Tang Loong industrial park (IP).

This activity is part of the project “Transforming Tang Loong IP into an Eco-IP.”

Tang Loong IP covers more than 1,100 hectares and hosts a large number of enterprises operating in industrial production, fertilizer, and chemical sectors. It is considered one of the key industrial hubs in northern Vietnam.

During the mission, the delegation carried out:

  • Surveys of production lines, energy and water use systems, and the consumption of raw materials, fuels, and chemicals;
  • Assessments of the current wastewater, exhaust gas and solid waste treatment systems of enterprises within the industrial park;
  • Collection and analysis of data to identify opportunities for cleaner production, resource efficiency, and the development of industrial symbiosis networks among enterprises.

The survey aims to support enterprises in Tang Loong IP in:

  • Identifying cost-saving opportunities;
  • Reducing emissions and reusing by-products;
  • Enhancing cooperation in by-product utilization through industrial symbiosis models.

This is an important step towards transforming Tang Loong IP into the first eco-industrial park in Lao Cai province, contributing to the province’s goals for sustainable development and a circular economy.

Some photos from the field survey at Tang Loong IP:

VNCPC

Free Online Training Programme on Eco-Industrial Park for EIP Policy-makers and Practitioners/Service Providers

UNIDO and Ministry of Planning and Investment (MPI) are organizing a training programme aimed at building awareness on EIP concepts amongst the key stakeholder groups, sharing and exchange of experiences and knowledge related to EIP deployment, EIP policy implementation, identification, and intervention of EIP opportunities, etc. based on existing UNIDO, World Bank and GIZ materials.

The training will be delivered online by international as well as national experts consisting of six 2-hour modules (a total of 12 hours of learning). Each session will be delivered twice, thus allowing participants to choose the most convenient slot.

The training material covers aspects of EIPs and approaches, underlying tools and toolkits as well as Resource Efficient and Cleaner Production (RECP) approaches to the extent needed for the incorporation of EIPs into local and national policy landscapes and provide EIP support to Industrial Parks in Vietnam. It covers a range of EIP topics relevant to strengthen the capacity and to address the needs for EIP policy-makers as well as EIP services providers, including a balanced mix of EIP theory, practical examples and interactive exercises.

The training programme will help participants to network effectively and benefit from peer learning while establishing a network of competent national institutions to deliver quality and value-added EIP services which respond to the needs of enterprises and other organizations in Vietnam.​

The detailed information for the training, please click HERE (Flyer_Policymakers) or (Flyer_Practisioners).

If you are interested in joining it, please submit your application by registering the link in HERE (Call for application for policymakers) and (Call for Application for Practisioners) before 20 August 2023.

Source: http://eip-vietnam.org/event/49