Excerpt from Vietstock.
An undeniable reality in today's flat world is that global economic growth depends on developing countries.
However, this also brings along the consequence of increasing emissions and a heavy reliance on natural resources.
The economic and social impacts, along with the potential environmental degradation, are especially serious for these countries.
Due to their dependence on natural resources for economic growth and their vulnerability to energy, food, water security, climate change, and extreme weather risks.
All these factors pose challenges to the development potential of developing nations, including Vietnam.
To address these challenges, the world has set the path of "green growth" with various standards for countries and businesses to follow.
But in essence, there is no one-size-fits-all solution or path.
This is the view shared by Mr. Lê Thành Liêm, the Chief Financial Officer of Vinamilk, one of the pioneers in green development in Vietnam.
"Developed countries, emerging economies, and developing nations all face different challenges and opportunities in different economic and political contexts. The green transition of an economy depends on its institutions, development levels, resources, and specific environmental pressures. Each country has its development strategy based on its own strengths and limitations," said Mr. Liêm.
However, Mr. Liêm emphasized that green growth and sustainable development will be "an inevitable path" that the world and Vietnam must follow.
"Vinamilk believes that Vietnam, as a developing country, has the opportunity to turn these challenges into advantages. Vinamilk focuses on sustainable development as an integral part of its business strategy. This not only promotes long-term growth but also contributes to the green growth of the country."
The concept of ESG (Environmental, Social, and Governance) has become more popular in recent years and is seen as a "guiding principle" for businesses that aim for a sustainable future and aspire to reach international markets.
Vinamilk is among the few companies that recognized the importance of ESG when other businesses were not yet focusing on this trend.
As a pioneer, Vinamilk has gone through a journey that, though not long, is certainly not short either. The strong foundation was invested in systematically, ensuring sustainable growth over time.
"From the early days of economic development, Vinamilk simultaneously focused on sustainability. Since the 1990s, Vinamilk has collaborated with households nationwide to develop dairy farming, eventually building 'green' farms and 'modern, low-emission' factories nationwide," said a Vinamilk representative about the early milestones.
After its privatization in 2003 and listing in 2006, Vinamilk made improvements in its processes, investing in sustainable development, setting the stage for long-term business growth and enhancing its capital raising ability to expand the farm and factory system.
One of the most noteworthy activities for its green transformation was its collaboration with the Ministry of Natural Resources and Environment on the One Million Trees Fund for Vietnam, which ran from 2012 to 2020.
"After nine years of dedication to greening the country, the One Million Trees Fund for Vietnam concluded in 2020, having planted over 1.1 million trees at 56 locations across 20 provinces and cities nationwide," Mr. Liêm shared.
Not only planting trees, but during this period, Vinamilk also implemented numerous solutions and applications to meet sustainable development standards.
In 2011, the company was a pioneer in replacing high-pressure lamps with LED lights at its subsidiaries, saving up to 80% of electricity consumption.
Three years later, all of its factories received ISO 14001:2004 certification for environmental management and ISO 50001:2011 for energy management.
Vinamilk also launched two super high-tech factories focused on green production: the Vietnam Dairy Factory and the Vietnam Powdered Milk Factory. The Vietnam Dairy Factory was ranked among the Top 5 most modern dairy factories in the world, with leading emissions-reducing applications such as the LGV robot (reducing emissions by 62% compared to traditional forklifts) and smart warehouses (saving 70% energy compared to traditional systems).
In 2014, Vinamilk's Nghe An farm became the first dairy farm in Southeast Asia to achieve the Global G.A.P. certification for good agricultural practices.
The milk produced at the farm allows for traceability, ensuring food safety, worker health, social welfare, and environmental protection.
In the following years, Vinamilk consistently applied various green, renewable energy sources such as biogas, biomass, natural gas (CNG), and solar energy at its farms and factories to reduce costs and minimize environmental impact.
"These green activities have helped Vinamilk build sustainability in production, enhance its brand reputation, and attract investments from foreign funds," Mr. Liêm added.
In recent years, one of Vinamilk's greatest successes in its "greening" journey is the GreenFarm model, which has been implemented at its farms.
The model is built around three main aspects: careful selection of inputs, regenerative agricultural practices, and the application of advanced technology in sustainable agriculture.
Vinamilk has three Green Farm locations in Tây Ninh, Quảng Ngãi, and Thanh Hóa, part of a network of 13 farms across Vietnam.
These farms are strategically located to connect with Vinamilk's most advanced factories, ensuring high-quality raw milk during transportation.
"Seeing how much waste events create, Gloton started exploring the use of cardboard for decorations in 2022. Our goal is to cut carbon emissions by using recycled, eco-friendly materials.
Every project tells a story of our creativity, our dedication to protecting the planet, and our drive to keep innovating."
