The measure of success for a green-thinking retailer

What is AEON Vietnam doing to keep up with the green development trend?

We have set out two strategies for greening and digitising retail operations, promoting modern consumption habits for customers to align with the specific nature of the retail business model. For years, AEON has been making gradual efforts to transition from single-use plastic packaging to more environmentally friendly materials such as biodegradable bags, sugarcane bowls and trays, while also discontinuing the display and sale of single-use plastic products as part of its green transformation strategy.

Corporate sustainability and external relations manager of AEON Vietnam, Nguyen Bang Lang

We have also converted plastic membership cards to mobile applications and paper vouchers to electronic vouchers. Our Topvalu private brand products in Vietnam are also developed according to COC standards with strict environmental regulations.

As a bridge between manufacturers and consumers, AEON Vietnam also collaborates with customers to promote green consumption behaviours and modern consumption habits in shopping activities. We have refused to provide nylon bags if customers use them for food at the store, and implemented a programme to rent environmental bags to help customers establish the habit of using eco-friendly bags.

Could you share some of the company's activities related to green transformation, and explain how they have supported business and development goals in the Vietnamese market?

Since 2019, AEON Vietnam has been actively involved in a project to reduce single-use plastic waste by supporting customers and employees in changing their behaviours and operational practices.

The total number of single-use plastic bags has been reduced in that time by over 12 million bags, equivalent to 133 tonnes, with more than six million bags reduced in 2023 alone. The total number of customer transactions refusing single-use plastic bags is nearly 4.1 million. Several new activities have also been implemented, such as the “Rent a bag” initiative, which lets consumers borrow environmental bags when shopping, and the “Plastic Bag Free Day” from 2023, for every first Monday of the month at cashless payment counters.

We are ready to collaborate with suppliers to develop environmentally friendly products. For students and the community, AEON also organises environmental bag design competitions to increase interaction, spread messages, and enhance awareness of green consumption.

What are the pros and cons for retailers when implementing green goals in Vietnam?

Advantages always come hand in hand with challenges for any business in the dual green-digital transformation journey. AEON enjoys advantages in the large and potential consumer market. The rapid development of the middle class in Vietnam, expected to account for 26 per cent of the population by 2026 and double compared to last year, has created a significant demand for digital and green products and services. Meanwhile, young Vietnamese consumers are increasingly favouring digital products and sustainable solutions.

We also benefit from the preferential policies and financial support from the Vietnamese government. Programmes such as the national digital transformation strategy and green growth strategy also create a favourable environment for retailers to carry out the transformation.

Vietnam is heavily investing in IT infrastructure, especially in the development of 5G technology and e-commerce platforms. This is also a path to narrow the gap and drive businesses like AEON to participate in the dual transformation journey.

Do you have any suggestions for government agencies to address these challenges?

We hope that government agencies will soon develop policies on digital and green transformation in retail, formulating tax and financial incentives for businesses to implement it. The training and quality improvement should focus on this transformation, encouraging universities and educational institutions to integrate training programmes on digital technology and sustainable development into their curriculum.

Furthermore, there is a need to strengthen collaboration among agencies, businesses, and non-governmental organisations to share experiences and resources, as well as promote public-private partnerships and international cooperation.

Learning from and applying successful transformation models from advanced countries is also essential to promote international cooperation in this field. Businesses also need to collaborate with regulatory agencies to carry out communication campaigns to raise consumer awareness of the benefits of dual transformation.

What are AEON Vietnam’s plans to increase investment and prioritise green development activities in the future, as its business model continues to expand?

Going green is one of the main goals in AEON Vietnam’s sustainable development journey. In the upcoming time, AEON will expand this strategy with suppliers and partners in the supply chain, not only including goods suppliers but also transportation, delivery, e-commerce service providers, and partners implementing programmes for AEON Vietnam.

To bring these goals closer to the future generation and enhance their awareness about green consumption habits, AEON Vietnam will also launch the AEON Cheer Club programme this year to educate elementary school students about the UN's 17 Sustainable Development Goals in a friendly and understandable way.

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