INSTITUTE FOR STANDARD AND QUALITY DEVELOPMENT STUDIES

Applying ISO 14001 in Enterprises – Advantages, Challenges and Solutions

11/03/2022


Up to the present time, all types of enterprises and organizations, when operating, inevitably cause various environmental impacts. The key issue today is what enterprises of different scales should do to manage their operations in order to minimize environmental impacts.

Following the success and widespread adoption of ISO 9000 (Quality Management System), the first ISO 14000 series was issued in 1996. In 2004, it was revised into ISO 14001 – Environmental Management System. Through continuous development and version upgrades, ISO released the latest version ISO 14001:2015. The standard has now been adopted in 138 countries and territories, with more than 140,000 enterprises and organizations certified.

Two years after ISO 14001:1996 came into effect globally, the first certificate was issued in Vietnam. Since then, the number of organizations applying ISO 14001 and obtaining certification has steadily increased. In the early stages, most adopters were foreign-invested enterprises or joint ventures.

Japanese enterprises were pioneers in applying ISO 14001. Japan is among the earliest and largest investors in Vietnam. Today, many large Japanese corporations operate in Vietnam, such as Honda, Toyota, Panasonic, Canon, and Yamaha.

Since their parent companies had already implemented ISO 14001, they required subsidiaries in other countries to establish and apply the same system. As a result, these enterprises created the foundation for the ISO 14001 adoption trend in Vietnam.

ISO 14001 is regarded as an effective legal tool that delivers rapid results and is an indispensable instrument in environmental management and protection strategies. Vietnamese enterprises have increasingly recognized the importance of environmental protection and have developed strategies to implement ISO 14001.

Large corporations and state-owned enterprises with significant environmental impacts, such as Hoa Phat Group, cement corporations like Hoang Thach and Bim Son, and Vinamilk, established environmental management systems based on ISO 14001 early on and upgraded them with each new version. Recently, major corporations have also required all subsidiaries to implement ISO 14001.

Currently in Vietnam, ISO 14001 certificates have been granted to many organizations across diverse industries, including food processing (sugar, seafood, beverages), agricultural and forestry processing, electronics, chemicals (oil and gas, paints, pesticides), construction materials, tourism, and hospitality.

Compared to the number of enterprises certified under ISO 9001, the number implementing ISO 14001 remains limited. This indicates that many enterprises and organizations still do not pay sufficient attention to environmental issues.

After nearly 25 years since its introduction in Vietnam in 1998, despite several version upgrades and increasingly transparent environmental legal frameworks, the implementation of ISO 14001 still faces certain advantages and challenges as summarized below.

Advantages

ISO 14001 does not set specific environmental performance criteria but establishes principles for environmental management. One key principle is that enterprises must comply with applicable legal requirements. Therefore, a complete, understandable, and feasible environmental legal system is essential.

In Vietnam, environmental issues have been addressed in many legal documents. The Environmental Protection Law 1993 was the most significant. The Government issued Decree 175/CP dated October 18, 1994, guiding its implementation. In 2005, the Environmental Protection Law 2005 replaced the 1993 law, providing regulations on violations and public environmental sanitation.

The Environmental Protection Law 2014 inherited and improved the 2005 law, adding provisions on environmental technical regulations. On November 17, 2020, the National Assembly passed the Environmental Protection Law 2020, effective from January 1, 2022, including provisions on environmental permits.

These regulations define subjects requiring environmental permits, procedures, responsibilities, and rights related to environmental licensing.

Overall, environmental protection measures have gradually been improved and institutionalized across legal sectors, contributing significantly to environmental improvement and awareness.

Pressure from multinational corporations

With globalization, many multinational corporations operate in Vietnam. As of December 20, 2021, registered foreign investment reached USD 31.15 billion, increasing by 9.2% compared to 2020.

Foreign investors have invested in 18 out of 21 economic sectors. Manufacturing and processing lead with over USD 18.1 billion (58.2%), followed by electricity production and distribution with USD 5.7 billion (18.3%).

The increase in foreign enterprises brings higher requirements regarding workforce skills, product quality, environmental management, and social responsibility. This presents both challenges and opportunities for domestic enterprises.

Many multinational corporations require their suppliers and contractors to ensure environmental compliance, with ISO 14001 certification serving as assurance. Japanese companies such as Toyota, Honda Vietnam, Yamaha, Suzuki, and Panasonic have implemented ISO 14001, followed by their suppliers, creating a widespread adoption trend.

Challenges

Lack of policy support

Although environmental protection receives attention, there are still limited specific policies supporting enterprises in implementing ISO 14001. Environmental compliance often increases costs, reducing competitiveness compared to non-compliant companies.

Weak integration of environmental policy into business strategy

ISO 14001 requires organizations to establish environmental policies. However, many Vietnamese enterprises still lack long-term strategic planning, making environmental policies unclear or formalistic.

Insufficient linkage between environmental and development objectives

Organizations often face difficulties in setting appropriate environmental objectives, including unclear goals, unrealistic targets, weak internal assessments, and limited awareness programs.

Proposed solutions

  • Enhance awareness and behavioral change regarding environmental protection and clean technology adoption.

  • Promote communication and social responsibility aligned with green growth and sustainable development.

  • Develop economic and financial mechanisms such as environmental taxes, emission trading schemes, and deposit-refund systems.

  • Strengthen environmental governance and coordination among authorities.

  • Improve legal enforcement effectiveness.

  • Cooperate with reputable certification bodies such as the ISSQ Institute for certification services.

Conclusion

Economic integration provides opportunities but also challenges for Vietnamese enterprises. Investing in technological innovation and efficient resource use is essential for competitiveness and environmental protection.

Implementing ISO 14001 helps establish effective environmental management principles and improve production processes.

Enterprises requiring certification assessment may contact us via hotline: +84 981851111 | +84 2422661111 or email vienchatluong@issq.org.vn | tcvn@issq.org.vn

ISSQ Institute is always ready to accompany enterprises in the integration and development process.

Date: March 11, 2022


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