Reduction of Industrial Pollution in Ho Chi Minh City
(HCMC Cleaner Production Project)
United Nations Industrial Development Organisation
General Background
The Environmental Management section of DoSTE (HCMC) proposed a project for the
practical demonstration of Cleaner Production (CP) and its benefits in selected industrial
sectors that were labeled "sensitive" from an environmental point of view. DoSTE
approached the United Nations Industrial Development Organisation (UNIDO) for
funding and support in conducting the project in order to address the management and
control of industrial pollution through CP.
The following definition of CP was used throughout the project:
"Cleaner Production is a new and creative way of thinking about products and the
processes that make them. It is achieved by the continuous application of strategies to
minimise the generation of wastes and emissions". (National Productivity Council, 1995).
Aims:
- To demonstrate the economical and environmental benefits of CP in 3 industrial
sectors (small and large scale enterprises)
- To develop a cadre of trained CP professionals within the country
- To test the appropriateness and usefulness of a systematic approach applied to CP
assessment and to make necessary adjustments according to local conditions
- To identify barriers to CP during planning and implementation stages and for long
term sustainability
- To disseminate the results of 6 case studies and proposed CP policy tools
- To recommend a strategy for the promotion and dissemination of CP to other
industries
Description of the situation before the program was implemented
The growth rate of Vietnam's industrial sector has been faster than any other sector,
generating 31.2% of the country's GDP in 1997. The Southern region is the major centre
for industry in the country. The industrial sector in HCMC alone accounts for roughly
25% of Vietnam's total economic growth and represents 35% of the total industrial
production output of the country.
In HCMC 65 of the 102 major production sites seriously affect the quality of nearby
residential neighbourhoods. Prior to the implementation of the project, the CP options at
each of the sites selected for demonstration were analysed to gauge the potential for
improvements in environmental performance. In most cases it was not possible to
quantify the direct environmental benefits specific to each neighbourhood site due to a
lack of measurement and monitoring facilities and equipment. However, the reductions in
outputs harmful to the environment were quantified for each case study example. These
are tangible elements that have direct impacts on environmental quality, and so can be
extrapolated to represent proportionate environmental improvements. These
measurements are described in the "Description of the situation after the program was
implemented" section.
Processes
The aim of the project was to demonstrate that a preventative approach to industrial
pollution through reduction in the consumption of resources, minimisation of waste at the
source through better operating practices, and employment of cleaner technologies could
significantly improve environmental and economic performance of companies. In short,
the aim was to demonstrate how waste could be turned into profit. In order to achieve this
aim, the project used six successful case studies to demonstrate the application of the CP
approach (Table 1). By doing this, it was possible to disseminate the results of real,
practical examples to other industries and also ensure the continuation of CP activities for
a minority of enterprises beyond the project period.
Table 1: Six companies who participated in CP project
COMPANY
1. Thein Huong Food Company
2. Vissan Slaughter House
3.
4.
5.
6.
Xuan Duc Paper Company
Linh Xuan Paper Company
Phuoc Long Textile Company
Thuan Thien Bleaching & Dyeing
Company
BUSINESS ACTIVITY
Instant noodles, soup and peanuts
Abbatoir, frozen meat products, processed
meat and sausages
Duplex paper
Tissue paper
Integrated textile processing
Material bleaching & dyeing
The project focused on providing the above companies (as demonstration units) with the
knowledge, skills and resources to be able to undertake CP alternatives within their
business enterprises. The CP approach used in the project employed the following
techniques:
Good Housekeeping - systems to prevent leakages and spillages through preventative
maintenance schedules and routine equipment inspections. Proper working instructions,
supervision and regular training of workforce facilitates proper housekeeping.
Input material change - substitution of input materials by eco-friendly (non/less toxic and
renewable) materials, preferably having longer service time.
Better process control - modifications to working procedures, machine operating
instructions and process record-keeping in order achieve higher efficiency and lower
waste and emission generation rates.
Equipment modification - modification of existing production equipment and utilities in
order to achieve higher efficiency and lower waste and emission generation rates.
Technology change - replacement of technology, processing sequence and/or synthesis
pathway in order to minimise waste and emission generation during production.
On-site recovery and reuse - reuse of waste materials in the same process or for other
applications within the company.
Production of useful by-product - transformation of waste material a product (or material)
that can be reused or recycled for another application within or outside the company.
Product modification - modification of product characteristics to minimise the
environmental impacts of its production or those of the product itself during or after its
use (disposal).
The processes undertaken to produce successful results relating to each of the project
objectives, can be summarised as follows:
1. Practical demonstration of financial and economic benefits
CP measures were identified by the six companies participating in the project and
implemented with assistance and support from the project team. The range of measures is
listed above and the process of implementation depended on the measure in question
(includes technical modifications, changes to operating practices, altered input materials,
adopting recycling practices, etc). In some cases, financial support was offered to
participants to implement changes, in other cases company staff were trained in change
processes.
2. Develop a cadre of trained CP professionals within the country
Training of in-country staff (in local environment organisations/departments, and in
domestic factory enterprises) was undertaken on a practical demonstration basis, using
the six nominated companies as case studies. Capacity building of professionals in CP
processes and techniques has reduced the dependency on international experts and has
ensured that CP efforts are sustained beyond the project timeframe.
3. Appropriateness and usefulness of systematic CP methodology
A planned and deliberate approach to CP was employed with adaptations to local
circumstances. The methodology had six steps and 18 tasks that were used to implement
CP systematically in all six demonstration factories.
4. Identify barriers and enabling measures for cleaner production
Identification of the barriers and enabling mechanisms experienced by the participating
companies was achieved by gathering the feedback and opinions of management and
workers from factories in a qualitative, participatory process. The major barriers
identified via this process were attitudinal, organisational, market environment, technical,
economic and governmental.
5. Disseminate the results of CP demonstrations
In order to communicate the processes and successes of CP, the results from the six
demonstration case studies were compiled and published in Vietnamese and English for
wider distribution. In addition, three industry sector workshops and one national
workshop were held to supplement the publication and to facilitate networking of
stakeholders and interested parties. A demonstration video and final report for
practitioners were also produced.
6. Strategies for promotion and development of CP in the country
At the completion of the project, the adoption of CP in industry was still far from
satisfactory. Some of the major issues hindering the promotion and development of CP in
HCMC were identified:
a) Initiating the change
b) Creating market demand
c) Development of appropriate specialised services
d) Creation of multiplier effect
e) Means and mechanisms for reaching out to the user
f) Information on cleaner technologies
g) Sustainability of CP promotion and development
The scope of the project did not extend to implementing clear strategies for overcoming
these barriers, but recognition of them was seen as a vital first step.
Description of the situation after the program was implemented
Following the implementation of CP measures through the project, the individual
demonstration companies and their neighbouring areas experienced significant
environmental improvement. This was evidenced through up to 66% reduction in
wastewater discharges, up to 70% reduction in air emissions, up to 27% reduction in solid
waste generation, along with substantial conservation of materials and a reduction in the
use of toxic materials.
A total of 45% of measures implemented across the six demonstration companies had
medium to high improvements on environmental performance. In addition, 33%
measures had a significant environment improvement.
The overall improvements in environmental performance as evidenced through reduced
environmental impacts are presented in Table 2.
Table 2: Environmental impacts of CP measures
COMPANY
NO. OF CP
OPTIONS
Thien Huong
Vissan
Xuan Duc
Linh Xuan
Phuoc Long
Thuan Thein
TOTAL
PERCENTAGE
24
9
21
19
19
14
106
42%
% REDUCTION IN
ENVIRONMENTAL IMPACTS
WASTE
POLLUTION
GASEOUS
WATER
LOAD
EMISSIONS
(%)
(%)
(%)
66
35
30
20
33
33
20
30
45
35
26
34
30
70
(Total CP measures
available)
The demonstration results indicated that cost savings rather than environmental
improvement are the key motivating factors for individual companies to become involved
in CP. Table 3 presents the economic benefits experienced by the participants in the
project as a result of implementing CP measures.
Table 3: Economic benefits of implementing CP measures
COMPANY
Thien Huong
Vissan
Xuan Duc
Linh Xuan
Phuoc Long
Thuan Thein
TOTAL
NO. OF CP
OPTIONS
24
9
21
19
19
14
106
FINANCIAL ANALYSIS
INVESTMENT
SAVINGS
PAY BACK
US $
US $
PERIOD
62,000
633,700
< 2 months
10,000
28,000
< 5 months
15,000
96,000
< 2 months
50,000
100,000
6 months
4,400
40,000
< 2 months
100,000
75,000
> 1.5 year
241,400
972,700
< 4 months
(average)
Each of the six companies that participated in the case study demonstration experienced
significant reductions in environmental impacts. These environmental benefits are
presented for each company in Tables 4a-4c.
Table 4a: Environmental benefits for food processing sector
COMPANY
BEFORE CP
AFTER CP
Thien Huong Fresh water consumption
Noodle
(m3/ton)
Company
Furnace oil consumption
(lit/ton)
12.7
5.3
DIFFERENCE
%
-58
165
138
-16
Shortening oil (kg/ton of
product)
185
160
-13
COD load (kg/ton)
8.3
5.6
-32
BOD load (kg/ton)
3.5
2.2
-37
Green House Gases
(ton/day)
0.51
0.42
-17
Potable water consumption
(m3/day)
Furnace oil consumption
MT/day
1200
950
-20
750
702
-6
17,600
14,628
-17
Pollution load organic COD
ton/day
3.34
2.30
-33
Solid waste ton/day
15.8
11.72
-27
Green House Gases ton/day
4.47
3.60
-19
Vissan
Slaughter
House
INDICATOR
Electric
(KWhr/day)
consumption
Table 4b: Environmental benefits for paper and pulp sector
COMPANY
INDICATOR
BEFORE CP
AFTER CP
Xuan
Duc Water consumption
Paper
(m3/ton)
Company
Furnace oil consumption
(lit/ton)
130
85
DIFFERENCE
%
-33
320
250
-21
Electrical
(KWhr/T)
740
662
-10
10.8
8.8
-20
consumption
Rosin consumption (Kg/T)
Solid waste Kg/T
-
-
-20 (est.)
Green House Gases
(ton/day)
Linh
Xuan Water consumption
Paper
(m3/ton)
Company
Furnace oil consumption
(lit/ton)
1.32
0.9
-20
250
140
-44
518
390
-33
Electrical
(KWhr/T)
1,400
1,140
-18
340
208
-39
-
-
-40 (est.)
2.65
1.86
-30
consumption
Bleaching
chemical
consumption (lit/T)
Organic
(Kg/T)
pollution
load
Green House Gases ton/day
Table 4b: Environmental benefits for textile processing sector
COMPANY
INDICATOR
BEFORE CP
AFTER CP
320
240
DIFFERENCE
%
-25
1220
1090
-10
391
330
-15
6.2
4.3
-30
3.8
3.3
-13
104
70
-33
1590
435
-62
Auxillary chemicals (Kg/t)
56
49
-14
Green House Gases ton/day
5.67
2.09
-63
Phuoc Long Water consumption
Textile
(m3/ton)
Company
Furnace oil consumption
(lit/ton)
Auxillary
(total)
chemicals
Kg
Dyestuff (Kg/T)
Green House Gases
(ton/day)
Thuan Thien Water consumption
Bleaching and (m3/ton)
Dyeing
Company
Furnace oil consumption
(lit/ton)
Lessons learned
Among the major lessons learned as part of the CP project were a number of key factors
for success.
a) COMMITMENT
Commitment at all levels in an organisation was seen as vital to the success of CP
programs. This expressed commitment was most effective when it was clearly
communicated by management to all levels. Without it, the organisational cultural change
that is required is difficult to achieve. Commitment was evident in all 6 CP demonstration
companies at all levels and as a result, remarkable behavioural change was observed
along with enthusiasm for the project.
b) OPENNESS
During the course of the project, it was observed that the groups that were the most
successful were those that engaged in frequent open discussions, and whose attitudes
were not resistant to change. In addition, those teams that sought the involvement of
many employees were also more successful as workers at all levels felt some degree of
ownership over the project and the outcomes.
c) CP CHAMPION
In all the demonstration companies, the teams involved in the project nominated a "CP
Champion" who became the focal point for the whole CP program. That person also
assumed responsibility for communication, data collection and compilation, organisation
of meetings and facilitation of the implementation program. The CP Champion in most
teams was highly enthusiastic and served to motivate the team and push the program
forward.
d) PLANNED APPROACH
By employing a deliberate and planned approach, the six companies were successful in
implementing 42% of all identified CP measures in less than a year. This time period is
highly efficient given the typically sluggish approach to organisational and procedural
change that usually prevails. The long-term sustainability of the change towards CP
remains to be seen, however the organisations and key players involved are committed to
the initiative, having seen the initial successes.
e) START WITH SIMPLE MEASURES
In the current project, it was useful to start with CP options that were easy to implement,
required low investment and had quick pay back. It was thus possible to get the approval
of management and the motivation of employees by demonstrating early economic and
environmental improvements without too much resource investment. In the project, 2/3
of CP measures identified were analysed to be low cost and more than 80% had a
payback period of less than a year.
f) LONG TERM SUSTAINABILITY
It was envisaged at the planning stage of the project that the long-term sustainability of
CP in the industrial sector of HCMC would be dependent upon the capacity of
organisations to support CP within the industrial sector. In addition, the ability of
individual CP experts locally to conduct assessments and assist in implementation would
also have an impact on whether CP persisted beyond the project timeframe. This aspect
was addressed by a comprehensive education and training component aimed at
employees of local environment and government agencies/departments who have a role
in environmental management and control.
Possibility of replicating the approach in other cities
The potential for replicating the present approach to Cleaner Production in other cities
either domestically or internationally is extremely promising. This project employed a
strategic, deliberate step-by-step approach to planning, assessment, implementation and
evaluation in relation to CP in the industrial sector of HCMC. This methodology can
easily be transferred to other countries, cities and/or business sectors for identifying areas
in which environmental and economic improvements can be made in production
processes.
The demonstration case study approach is also widely used in many contexts and is
readily recognised and related to by business managers and enterprise owners. If it can be
seen and realised that other businesses or industries are proactive in this regard and are
achieving substantial benefits as a result, others are far more likely to adopt the same
approach in their own contexts.
Ho Chi Minh City
Department of Science, Technology and Environment (DOSTE)