Green goods generate green demand

Many consumers don’t realise it, but the market is rife with environmentally friendly options that are both practical
and durable. Photo: Duc Thanh

Nguyen Ngoc Thuyen decided to spend several thousand dollars on light-emitting diode (LED) bulbs for his new four-storey house.

“They are ten times the price of standard bulbs, but they are durable and I can buy them in many different colours,” said Thuyen, an architect living in Hanoi.

Pham Ngoc Minh, head of an electrical appliances store on Hanoi’s Phung Hung street, said his sales of LED lights to customers like Thuyen had risen considerably.

“LED products are both durable and fashionable, and though they are expensive, there is high demand,”Minh said.

Thuyen and Minh, while appreciating some of the lights’ qualities, did not realise that they are also helping Vietnam reduce greenhouse gas emissions.

“I buy them because they look good and are reliable,” Thuyen explained.

Are consumers thinking green?

Ralf Matthaes, the regional managing director of TNS Indochina – a world leader in market research, global market information, and business analysis, said the average Vietnamese consumer had little knowledge of environmental issues, let alone green products.

“Most consumers think of environmental issues in the sphere of motorbike and car emissions and garbage and toxins in rivers and waterways. However, they have little knowledge of things like depletion of the ozone layer and deforestation,” he explained.

“This is not a surprise, given that most Vietnamese focus on basic needs like filling their stomachs and consumer fads like buying the latest mobile phone. Green products are not high on their wish list, and though the younger generation is much more aware, this is only on a superficial level” he added.

A representative from Osram Vietnam, which makes the LED lights Thuyen used in his home, said that many Vietnamese consumers regularly used environmentally friendly products, but were unaware they were helping to save the environment.

Nguyen Duc Anh, a salesman at the HC electronics superstore on Hanoi’s Pham Van Dong street, said that his customers usually focused on the quality and prices of products, rather than any environmental bonus.

“We have sold many energy-saving refrigerators, irons, and TVs, but the local demand comes from a reputation for quality, design and reasonable prices, not from the companies green outlook,” Anh said.

“Consumers are not even aware of HCFC, which is largely responsible for ozone depletion and used in the manufacture of refrigerators and air-conditioners,” he continued.

HCFC is the generic and chemical acronym for DuPont’s Freon and is used as a refrigerant, propellant, and solvent in numerous retail and industrial products.

According to Nguyen Dinh Thanh, a senior branding expert from locally-owned company Le Bros, Vietnam should look to developed nations’ green mentality, where consumers are the driving force behind companies innovating energy saving products and less pollutive manufacturing processes. 

“If Vietnamese consumers go green, it will be a tremendous step toward reducing pollution and mitigating the impact of climate change, Thanh said. “Supermarkets such as Hanoi-based Tutraco still give nylon bags to customers and that damages the environment.”

According to TNS, environmental pollution tops the list of concerns in its 2010 survey of Vietnamese consumers about the environment. 63 per cent of respondents believed pollution would worsen in the following 12 months.

The survey also reflected that over 90 per cent of consumers were concerned with Vietnam's pollution problem, particularly in Ho Chi Minh City where over 60 per cent opined that pollution had worsened over the previous three years.

Perhaps reflecting this concern was head of Big C supermarket chain’s public relations and corporate affairs division Duong Thi Quynh Trang’s opinion that consumer awareness and interest in environmentally friendly products was beginning to grow.

“Demand for biodegradable bags is increasing, and Big C is aware of and is meeting that demand,” she said.

The bags, which have been recognised by the Ministry of Natural Resources and Environment's Vietnam Environment Administration, decompose within five years after being discarded.

German-backed Metro supermarket joined the club when they decided to use biodegradable plastic bags and cardboard boxes to wrap meat and vegetables.

“They [disposable bags and boxes] are convenient and are eco-friendly,” said Nguyen Thu Ha, a housewife from Hanoi. “They don’t discolour and can be kept in the refrigerator for long periods without harming the food.”

Khuat Quang Hung, head of Metro’s general affairs and corporate communications, said customers’ demand for these bags and boxes was so great that Metro sold  them in large volumes to other businesses.

“There is an increasing demand for environmentally friendly products,” Hung added.

A greener tomorrow According to Thanh, millions of customers are benefiting from and seeking green brand trends.

He added that all around the world, companies are developing and distributing greener products built by environmentally friendly technology.

In particular, electronics producers such as Osram, Samsung and Haier, as well as auto manufacturers like Toyota, Ford, Mercedes, and Honda are introducing their own environmentally friendly products. A major goal of both industries is to reduce energy consumption during production and reduce emissions and pollution resulting from their products while maintaining the quality and durability their customers expect.

“Toyota and Panasonic even have museums in Japan showcasing environmentally friendly technologies and products which are open free of charge to the public,” said Thanh.

He also said that enterprises needed to continue churning out newer and better green products, as this was now a major factor in competition. Furthermore, companies all over the world were having to adapt to policies limiting emissions.

Keisuke Seto, assistant manager of Toyota’s global communications department, said the company was researching green solutions at its Vietnam factory.

“Going green means you aim at a sustainable future for your business and customers,” Seto explained. “Toyota is innovating new hybrid cars that we think will be very popular in Vietnam.”

Many companies that work in foodstuff and industrial products are also showing a greener outlook.

Swedish-backed Tetra Pak, the world leader in processing and packaging solutions for food and beverages, is supplying eco-friendly milk cartons to all Vietnamese milk manufacturers including TH TrueMilk, Vinamilk, and Dutch Lady.

“These cartons can be recycled to make other products such as ornamental trees and office stationery,” said Vu Thu Hang, a public relations representative from TH TrueMilk.