Experts met to discuss how heavy industry can support the country’s industrialization and modernization efforts at a recent workshop organized by Vietnam’s Central Economic Commission. Dr. Le Thanh Loan, EfD Vietnam, contributed with a presentation on the development of Vietnam’s fertilizer industry. Her insights focused on achievements, challenges, and solutions to ensure the sector’s sustainable growth.
The fertilizer industry has, according to Le Thanh Loan, been a key driver of agricultural productivity in Vietnam, helping to meet food demand and support the chemical industry’s development. Since 1986, various policies have encouraged domestic production and reduced reliance on imports. However, she pointed out several challenges, such as the country's chemical fertilizer consumption remains among the highest in the region and especially the environmental damage caused by chemical fertilizers, including their nitrogen oxide (NOx) emissions, which harm air quality and contribute to climate change.
Proposing solutions for sustainability
Le Thanh Loan recommended introducing an environmental tax on fertilizers emitting NOx. This policy could encourage manufacturers to use cleaner technologies and promote sustainable agricultural practices. Her suggestion reflects Vietnam’s growing efforts to align with global standards on green development while improving the competitiveness of its fertilizer and agriculture sectors.
Contributing to Vietnam’s industrial future
"The suggestion was received very positively. Dr. Nguyen Hong Son, Deputy Head of the Central Economic Commission, mentioned that the government will consider gradually implementing such measures. He emphasized that farmers utilizing land should take steps to maintain productivity, and taxing harmful chemical fertilizers and pesticides could help mitigate negative impacts," said Le Thanh Loan.
She also clarified that the proposed tax, coupled with policies supporting organic fertilizers, aims to:
1) Encourage a shift toward sustainable, organic agriculture,
2) Adjust producer and consumer behavior in a sustainable direction, and
3) Align with principles like the Polluter Pays Principle PPP and User Pays Principle UPP.
She also provided an example related to a similar tax, where there were concerns initially about how fuel taxes affect farmers, but those concerns were addressed over time.
The participation of Le Thanh Loan highlights the important role of researchers in shaping policies for sustainable development. As a member of EfD Vietnam, she aims to provide practical, evidence-based solutions to environmental challenges. The workshop emphasized how Vietnam’s heavy industries, including the fertilizer sector, can contribute to economic growth while prioritizing environmental protection.
“Sustainable practices are essential to building a modern, competitive economy that meets national and global expectations,” said Le Thanh Loan.
By: Nhan Le