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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 22nd Freon Recovery Business
In recent years, SDGs have been a hot topic around the world, and this time we asked MZVINA president Furuoka about the trigger for their expansion into Vietnam and the details of their business in Vietnam.
1. What was the trigger for MZVINA to start the Freon gas recovery business in Vietnam?
Three years before our business launch in June 2023, we heard the information that the Freon law would start in Vietnam on January 1, 2024, and we prepared for it. We heard that Freon-related laws would be enforced for the first time in Asian countries, and we wanted to contribute to the reduction of GHG emissions and global warming prevention by promoting the recovery and recycling of Freon in Asian countries as well.
Furthermore, the parent company M-Zett had been accepting several technical intern trainees for the past 6 years, and we were considering providing them with a place to work even after they returned to their home country. In the midst of this, with the talk about the Freon law, we accelerated our expansion into Vietnam.
2. What were some of the challenges you faced when starting the business locally ?
Regarding the licenses, we were first surprised by the large number of them. For any type of business, we had to obtain licenses and repeatedly apply for additional ERC (Enterprise Registration Certificates). Furthermore, for our Freon recycling business, which was a new type of business not covered by the existing licenses, it took a considerable amount of time to consult with the Vietnamese government, various provinces, and industrial park authorities, and to have them understand our business. However, we were able to obtain the licenses in a short period of time with the backup support from the Japanese Ministry of the Environment and our partner companies, which is said to be exceptional. This is a testament to the Vietnamese government’s expectation and interest in our new initiative.
3. Why did you decide to locate your factory in Ba Ria-Vung Tau Province?
The presence of our partner companies was a significant factor. We were searching for a factory that could start a Freon recycling business, visiting industrial parks around Hanoi and Ho Chi Minh City. At that time, a bank we do business with introduced us to a company that had expanded from Saitama Prefecture to Vietnam, and we held discussions with them. That company was engaged in aluminum recycling and had valuable experience in establishing a business in Vietnam. Considering their connections within Vietnam and the potential for future collaboration with our company, we decided to partially lease their premises in Bariavung province, as we believed it would be advantageous for our future business expansion.
4. What is MZVINA’s business in the region?
“Our business activities consist of three main areas:
Freon recovery services
Freon collection and regeneration services
Sales of Freon recovery equipment and tools
In the Freon recovery services, we undertake the recovery of Freon from equipment that is being removed or replaced on-site. We collect the Freon in specialized containers and issue a collection certificate to the equipment owner, which is a necessary document for annual reporting to the Vietnamese government.
In the Freon collection and regeneration services, we process the Freon collected by HVAC service providers. If the analysis determines that the Freon cannot be regenerated, we outsource the destruction process to our partner companies.
Lastly, the Freon recovery equipment and tools sales business involves the sale of Japanese-made devices and tools necessary for Freon recovery.”
5. The Decree 06 related to the Environmental Protection Law that came into effect on May 30, 2024 and the most important point to note regarding the penalty provisions.
The Freon law in Vietnam has successfully incorporated laws already implemented in developed countries. However, as it is a country that has not previously carried out recovery, there are still hesitant expressions and areas that have not yet been fully developed. The point that requires special attention is the recovery work. It is stipulated that the recovery machine and containers must have a certain level of safety devices and capabilities, and that technicians are required for the recovery. In Japan, Freon is also a high-pressure gas, and its handling by the general public is prohibited, but in Vietnam, the awareness has not yet spread, so anyone can do the recovery, leading to accidents, and the penalty provisions of Article 46, Paragraph 3 of Decree 45 may also be applied. When requesting recovery, please make sure to use a vendor who understands the technical regulations QCVN76:2023.
According to the recent announcement by UN Secretary-General Guterres, only 17% of the 2030 SDG targets have been achieved so far. It is hoped that the activities of Japanese companies will receive more attention and can contribute to the achievement of the SDGs.
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
