Public and private sector cooperate to boost sustainable forest development

Suntory PepsiCo Vietnam is one of the first companies to form a strategic partnership with the forestry sector for sustainable forest development, water conservation, and carbon neutrality.

The event was marked by a conference named “Public-Private Partnership in Developing the Multi-use Value of Forest Ecosystems and Launching of the National Park Passport Initiative”.

The conference was attended by Minister of Agriculture and Rural Development Le Minh Hoan, Suntory Pepsico Vietnam executives, representatives from various ministries, local authorities, embassies, international organisations, non-governmental organisations, associations, businesses, and national nature reserve managers.

Director of the Forestry Department Tran Quang Bao and general director and CEO of Suntory PepsiCo Vietnam Jahanzeb Khan signed an MoU for sustainable forest development

Jahanzeb Khan, general director and CEO of Suntory PepsiCo Vietnam, addressed the company’s commitment to sustainable development in the country, “Through strategic public-private partnerships with the Ministry of Agriculture and Rural Development, we are raising the impact of our ongoing reforestation programmes and pursuing multiple objectives, such as restoring and replenishing more than 100 per cent of the water used in production at all our plants by 2050, contributing to carbon offset and improving livelihoods."

The key areas of cooperation between the MARD and Suntory PepsiCo Vietnam aim to develop forests sustainably, and leverage the multi-use value of forest ecosystems, encompassing environmental, economic, and educational values.

Firstly, the collaboration focuses on planting large timber trees and native species combined with medicinal plants. The programme is expected to plant and enrich nearly 250 hectares of forest in watershed and protective forest areas across the country. This approach aims to improve local livelihoods, enhance carbon absorption and neutralisation, protect forest environments, and regenerate water resources.

In addition, a "Forestry Semester" for students and tourists will be implemented with the goal of creating forest experiences, educating participants about water resources, biodiversity, and fostering a love for nature.

Director of the Forestry Department Tran Quang Bao emphasised the important roles of both the public and private sectors in developing sustainable forests and leveraging the multi-use value of forest ecosystems

Tran Quang Bao, director of the Forestry Department, stated, “The overarching goal of the forestry sector is to become an economic-technical sector and to establish, manage, protect, develop, and use forests sustainably, ensuring broad and equal participation of all economic sectors in forestry activities. Therefore, the roles of both the public and private sectors are extremely important.”

According to Nguyen Hong Hai, deputy director of the Forestry Department, private sector funding accounts for 83 per cent of forest restoration activities. Forest environmental services development has received VND 3.5 trillion ($145.8 billion) from businesses in the hydroelectric power, clean water, and tourism sectors.

"Public-private partnerships offer significant benefits. They serve as a channel for mobilising resources to develop the forestry sector. Private sector involvement, including businesses, can contribute technological advancements, technical expertise, and new initiatives such as carbon finance schemes,” said Hai.

For 30 years, under the "Growing for Good" motto, Suntory Pepsico Vietnam has committed to sustainable development through practical initiatives, including water conservation, sustainable packaging, and sustainable production practices.

According to the 2023 forest status report, Vietnam has over 14.86 million ha of forests with diverse ecosystem values. "There should be appropriate mechanisms to support, facilitate, and encourage organisations and individuals from all economic sectors to participate in forestry investment and development," said the report.

Vietnam approves sustainable forestry development programme by 2025 The Vietnamese government on August 5 issued Resolution No.84/NQ-CP approving the programme on sustainable forestry development in 2021-2025.

Project to develop multi-use values of forest ecosystem to 2030 approved Deputy Prime Minister Tran Luu Quang on February 29 signed a decision approving a project on developing multi-use values of the forest ecosystem to 2030, with a vision to 2050.

Vietnam receives $41 million from World Bank for sale of forest carbon credits Vietnam has received over $41 million from World Bank for sale of forest carbon credits, equal to 80 per cent of the committed amount under the Emission Reductions Payment Agreement.

Large-scale timber forest development remains challenging for Vietnam Investment in timber is needed to offset sluggish demand in the sector, according to industry insiders.