Efficiency As A Result of Vinamilk's Strategy for Green, Sustainable Agricultural Development

DNHN - As of late, Vietnam Dairy Products Joint Stock Company (Vinamilk) has risen to the top of the list of the five milk brands with the highest perceived value of sustainability (SPV) worldwide, placing it as the only Southeast Asian company to do so.

The strategic spearhead of Vinamilk

At present, Vietnam Dairy Products Joint Stock Company (Vinamilk) ranks among the top 36 largest dairy companies globally in terms of revenue. Furthermore, it holds the position of the sixth largest milk brand in the world, boasting a brand value of 3 billion USD (as determined by Brand Finance, the preeminent organisation in brand valuation worldwide). Moreover, it is the most valuable food brand in the ASEAN region (publicised in October 2023). Vinamilk has emerged as the sole Southeast Asian brand to rank among the top five milk brands worldwide in terms of sustainability, as determined by the Sustainability Perceived Value (SPV) index. This exemplifies the efficacy of the sustainable agricultural development strategy implemented by the dairy industry.

As stated by Mr. Le Thanh Liem, the Executive Director of Finance at Vinamilk, the organisation has consistently prioritised sustainable development since its inception. This commitment extends to achieving optimal regeneration, which entails not only high productivity and efficient production but also environmental friendliness, resource conservation, emission reduction, and animal welfare considerations... At present, consumers exhibit a heightened focus on product quality and demand green products with ever-increasing stringency. This generates the impetus for businesses to implement sustainable development practices to construct and advance their brands.

Vinamilk has introduced a sequence of novel initiatives since 2023 as part of its "green" trajectory: "Vinamilk Net Zero Forest Ca Mau Cape"; "Planting trees towards Net Zero" (in collaboration with the Ministry of Natural Resources and Environment); "Complete inventory and measurement of greenhouse gases at factories and farms; Research and develop products incorporating green and sustainable components; and "Vinamilk Net Zero Forest Ca Mau Cape."

At present, Vinamilk oversees a network comprising sixteen factories and fourteen dairy farms, among which it operates nearly fifty member units, subsidiaries, and affiliated companies both domestically and internationally. Can Tho Dairy Factory is, in particular, the most advanced dairy facility owned and operated by Vinamilk in the Mekong Delta area.

The factory, situated on an area exceeding 2 hectares in Tra Noc Industrial Park, Can Tho City, commenced operations in 2001. The factory has consistently made investments in and upgraded modern production lines while adhering to a "green" and sustainable production model, following over two decades of development. The factory is outfitted with and utilises renewable energy sources, including photovoltaics, optimises production energy usage, and adheres to PAS 2060 and ISO 14064 standards for greenhouse gas control and carbon neutrality, respectively.

By implementing contemporary technological advancements in manufacturing, the factory can enhance its capacity and effectively compete for market share in the Mekong Delta region. This is achieved through stringent process control, labour force reduction, and product quality improvement.

Can Tho Dairy Factory has manufactured a diverse range of products, including ice cream, condensed milk, yoghurt, and pasteurised fresh milk. In addition to supplying vital nutrients, beverages, and dairy products to the local community and environs, the factory has made a substantial financial contribution to the city of Can Tho's budget. Specifically, in 2020 it is 262 billion VND and in 2021 it is 272 billion VND; in 2020 and 2021, Vinamilk contributed 4,912 billion VND and 4,794 billion VND, respectively, to the State budget.

Can Tho Dairy Factory consistently obtained Certificates of Merit from the General Department of Taxation, the Ministry of Finance, and the People's Committee of Can Tho City in recognition of its contributions to the State budget throughout the construction and development phases. Additionally, the factory has been recognised as one of 37 exemplary enterprises that have successfully met their tax obligations in 2022. The Department of Taxation has suggested that the People's Committee of Can Tho City bestow a Certificate of Merit from the Chairman of the City People's Committee in recognition of exceptional accomplishments in business and production development, budget submission for 2021 amid the COVID-19 pandemic, and the attainment of a "dual goal" consisting of stable and efficient production.

Vinamilk intends to further invest approximately 100 billion VND in the Can Tho Dairy Factory in the coming years to expand its operations and business ventures and thereby make a greater contribution to the local economy and society.

Tri Kien – Phuoc Lap