Eight Strategies in Vinamilk's Sustainable Development

At the Green Economy Forum & Exhibition (GEFE) 2024, Mr. Le Hoang Minh, Executive Director of Production and Head of Net Zero Project of Vinamilk, talked about the company's efforts to achieve sustainable development goals and its commitment to reaching Net Zero by 2050. Vinamilk has been implementing Environmental, Social, and Governance (ESG) practices and released annual Sustainability Reporting. In 2023, Vinamilk developed an action strategy aimed at achieving Net Zero by 2050.

Mr. Le Hoang Minh, Executive Director of Production and Head of Net Zero Project of Vinamilk

From this program, Vinamillk has built eight specific development strategies: Using sustainable raw materials; increasing the use of renewable energy, green energy - 87% of energy from fossil fuels is replaced by green energy in production; using low-emission packaging, from design to packaging reuse and seeking suitable suppliers; developing low-emission products for users; developing environmentally friendly logistics; increasing carbon absorption reservoirs ( Since 2012, Vinamilk has planted 1.1 million trees across Vietnam. Beginning in 2023, the company has also committed to protecting 25 ha of mangrove forests in Ca Mau province); being committed to stakeholders on emissions and circular economy; and aiming for sustainable production and sustainable consumption.

"As a result of these strategies, Vinamilk currently has two carbon neutral factories and one neutral farm according to PAS2060 standards, hence enabling Vinamilk to reach its final goal of Net Zero 2050. We are aiming to reduce net emissions by 15% by 2027 and by 55% by 2035," he added.

Vinamilk's products that have achieved the "Vietnam Value 2024" award are key exports, available in major markets like Japan, the US, Korea, and Canada

Technological application for circular production

Vinamilk has applied technology to livestock farming for a long time, hence facilitating green transformation, Mr. Minh said. Technological application in production and livestock farming has brought significant benefits and improvements, such as disease control and feeding control.

Especially regarding the emission system, Vinamilk uses wastewater treatment technology from the farm to the system and forms many cycles, he said.

"Waste generates biogas, which becomes energy for farm operations - that is a cycle. Standard wastewater is used to irrigate corn fields and grasslands - that is a cycle. Cow manure is composted into organic fertilizer, which is then used to nourish the grasslands - this is also a cycle".

In addition, Vinamilk's factories apply technologies to optimize production, invest in low-energy consumption lines with higher productivity and reduce human impact to achieve great commercial performance.

"For example, Vinamilk has four smart warehouses, fully automated from material importing and production to each pallet. Currently, the total number of pallets in smart warehouses is 50,000 positions".

He acknowledged that the initial investment in these warehouses is substantial. However, businesses seeking to invest in technology to enhance productivity, reduce emissions, and secure long-term benefits will require access to green capital with preferential interest rates. This would alleviate financial pressures, enabling more proactive investments in green transformation and innovation.

By Van Luong, Vietnam Business Forum