Vinamilk eager for roadmap to net-zero

Le Thanh Liem, executive director of Finance, Vietnam Dairy Products JSC (Vinamilk)

Two decades ago, Vinamilk began building its wastewater treatment system and odour control facilities. At that time, our focus wasn't explicitly on sustainable development, but rather on adhering to legal regulations. Nonetheless, this required a substantial financial investment.

In recent years, with the concerted efforts of the government, the business community, and citizens, along with partners, sustainable development has gained more prominence.

Businesses are increasingly allocating significant funds towards sustainable development and the goal of achieving net-zero.

The leadership at Vinamilk views sustainable development and the pursuit of net-zero as a long journey, necessitating a specific roadmap. Only with a clear roadmap can we allocate resources and budget effectively for investments.

Vinamilk's initial years of transformation involved substantial investment. However, these investments were within the company's control. It's crucial to invest now, as failing to do so could dramatically alter Vinamilk's image in 5-7 years.

In terms of our sustainability strategy, we operate across two main sectors: livestock and production-business.

In livestock, Vinamilk manages over 14 farms nationwide, using waste from cattle to generate energy. Our entire wastewater and manure system employs a biogas circulation system to produce energy, complemented by solar power.

For example, at the Tay Ninh farm, spanning 680 ha, a total of 500 ha are dedicated to greenery and cattle feed. Growing grass is a key activity in neutralising the carbon footprint of our livestock operations.

In the production sector, packaging is a critical focus. Vinamilk's diverse product range uses various packaging materials like plastic, paper, and tin.

We are in active discussions with our suppliers to use recyclable, eco-friendly packaging. While a complete transition can't be achieved overnight, we have a five-year plan in place.

Another challenge is measuring indicators for assessment and reporting, ensuring transparency and objectivity. We are collaborating with an international organisation to provide a direct software connection for measuring and compiling reports, aiding in our continuous improvement efforts.

In our 2022-2026 strategic phase, sustainable development is a main pillar, underscoring our ongoing commitment to environmental and social responsibility.

Vinamilk currently holds about 40 per cent of the domestic market share and exports a variety of products to nearly 60 countries and territories, including those with strict import requirements such as Singapore, Japan, and New Zealand.

Products from Vinamilk are being distributed at major supermarket chains Costco, Woolworths, Coles, Aldi, and Foodstuff, with sales growth of more than 10 per cent each year.

The value and development potential of sustainable export trends are also a driving force for Vinamilk to continue growing in high-income market groups in Asia, North America, and the Middle East, which contribute more than 85 per cent to the brand’s total export revenue.

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