Sustainability trends urge firms to move more quickly

“Circular economy is becoming a mainstream trend”, said Dr. Vo Tri Thanh, director of the Institute for Brand and Competitive Strategy Studies (BCSI), at a launch workshop for a report on circular business models.

One of the reasons for this trend comes from the changes in the market itself. Vietnamese consumers, especially young people, are very fond of a green lifestyle.

This can be clearly seen through the movements of green living, or campaigns of limiting discharge to the environment, which are being participated by a large number of young people. Many initiatives and solutions to reduce waste and encourage the circular economy are also initiated by young people.

The young generation will be the main consumer force in the future, therefore, according to Thanh, if businesses make early transformation steps, they will gain long-term benefits in the medium and long term though having to spend a lot of investment costs in intial phase.

The global markets is also a "gold mine" for export businesses, and is motivation for them to apply circular economy solutions, as consumers in major Vietnam's export markets such as Europe, Japan have high demand in sustainable products. In addition, these developed markets has been raising environmental standards for products.

Thus, implementing sustainable and circular transformations will help businesses increase their competitiveness.

Addressing the workshop, Nguyen Hoa Cuong, deputy director of Central Institute for Economic Management (CIEM), said numerous Vietnamese enterprises have shifted to circular business models in accordance with regulations and policies in support of sustainable development.

Many firms, including Vinamilk, Nestlé, Coca-Cola, and Lagom Vietnam have promoted circular models to make their business more sustainable. He added that circular business models in the recycling sector have been put into operation, cultivating encouraging results.

For example, as part of its commitment to environmental protection, Nestlé Vietnam undertakes action programmes to avoid detrimental impact on the environment. It also contributes to the preservation, restoration, and regeneration of natural resources for the present and future generations.

The company focuses on four key areas for both present and future generations, including prevention and adaptation to climate change, developing sustainable packaging, sustainable purchasing, and water management.

Despite being affected by the pandemic from 2020 to 2021, Nestlé Vietnam continues to make investments to guarantee the proper implementation of the roadmap and priorities its sustainable development commitments.

Coca-Cola has remained persistent in its contribution to socio-economic recovery and development and creating a driving force for growth in the new normal in Vietnam.

To contribute to environmental sustainability, the company continues to work towards its vision of a ‘World Without Waste’ with a goal of collecting and recycling every bottle and can it sells globally by 2030. It is also rolling out packaging innovations to promote a circular economy model.

In September 2022, it took another meaningful step towards advancing a circular economy by introducing bottles made from 100 per cent recycled PET plastic (rPET), except for the caps and labels, across the country. The move is helping the company reduce new plastic usage by over 2,000 tonnes a year in Vietnam.

Previously, in 2019, Nestlé, Coca-Cola and other leading leading businesses in consuming goods, retailing and packaging, founded Packaging Recycling Organization Vietnam (PRO Vietnam) to promote the circular economic model through transforming the processes of collecting and recycling product packages into more accessible and sustainable manner.