“As for TH, 2018 was the first year we launched the Sustainability Report, but if you look back at our Sustainable Development Strategy, it was me who laid the first brick for the sustainability path of TH in 2008.”
TH is a patriotic business group which aligns its own interests with national interests. The group does not search for ways to maximize profits, but rationalize interests. The group defines that investment for physical and intellectual development is an investment in the nation's next generation and an investment for national strategic sustainable development.
Indeed, all actions of TH during a decade of operation have never left the sustainable development path. And, that consistent path has led TH to many successes obtained from clear competitive advantages.
Improving productivity, optimizing costs and avoiding waste
TH is known to have found a “golden key” for Vietnamese agriculture - the combination of Vietnam's natural resources and Vietnamese intelligence with Technology and Administration Science 4.0.
With cutting-edge Technology and Administration Science 4.0, combined with the rational utilization of resources and conservation of resources, TH can solve a lot of issues related to the United Nations Sustainable Development Goals such as innovation and infrastructure construction, sustainable city and community construction, response to climate change, and land and water conservation.
After spending much time and effort on research, TH found reasons for the failure of the dairy industry in Vietnam: Process and compliance - the two underlying factors.
In the very first days, I did an unprecedented thing: In addition to inviting experts, I also invited Israeli farmers to transfer technology according to the levels. It takes six months for farmers, three years for secondary workers and five years for senior specialists to take over the entire management process with a very professional working system for all stages: Cow management science from Afimilk (Israel), veterinary management from Totally Vets (New Zealand) and financial management from SAP (Germany).
The combination of (advanced) science and technology with consistent management science (4.0) enables us to detect a tiny operational mistake immediately, resulting in strictly controlled cost, price, quality and output of milk right from the beginning by design.
Noncompliance or corruption will be impossible, whether it is wanted or not. That is the sophistication of a scientific management system.
Improving brand image and customer preference
TH's brand is True Happiness, in which True has a very important position. The core values of TH products are clearly defined as “For the community health - Truly natural - Fresh, delicious, nutritious - Environmentally friendly - Outstanding thinking and harmonious benefits”. And right from its core values and missions, TH is closely linked to the United Nations Sustainable Development Goals such as zero hunger, poverty reduction, human health and well-being, responsible consumption and production.
In 2008, the melamine-contaminated milk scandal in China erupted, with the risk of potentially causing millions of children to suffer from kidney bleeding, prompting me to convene an Investment Council meeting and decide that “we must advise someone to make a clean fresh milk right on the land of Vietnam”.
It was truly a predestined relationship. This was the way TH true MILK was born. If I could do it again, I would still choose that path because organic milk is a sustainable way that TH can help solve social issues and contribute to the economy.
Reality proved that TH's strategy is right. As an enterprise that laid the foundation for Vietnam's fresh milk industry, TH has helped reduce the share of imported powdered milk in the Vietnamese market from 92% in 2008 to only 60% now. More importantly, TH's success attracted other milk companies and industries to make serious investment for better dairy cow farming to produce true fresh milk. And, consumers can know the true value of organic fresh milk and enjoy true products of world-class quality. And, the sympathy and favor of customers is reflected by our 40% of fresh milk market share.
Raising regulatory compliance
With discussion about climate change, declining energy resources, and environmental impacts, it does not come as a surprise that government agencies are issuing more and more regulations on environmental protection. Incorporating sustainable development into business activities will help companies comply with changing regulations in time and greatly reduce risks.
In fact, not only respecting the law, TH is also always a pioneer to “legalize” and make the dairy market transparent. Since 2011, I have attended hundreds of different seminars and conferences and sent official letters to the National Assembly in an effort to fight for the transparency of Vietnam's dairy market.
For its part, TH is a milk producer to specify the origin of input materials on product packaging - the most important factor that constitutes the quality of milk. TH has made recommendations for the transparency of Vietnam's dairy market, proposed peers to state the origin of inputs on product packaging and suggested authorities to review, inspect, and classify dairy products in the market and strictly handle violations.
TH's compliance is beyond Vietnamese law. And, right after laying the foundation of the organic fresh milk industry in Vietnam, we intended to make the international quality of all TH products reach the world. In 2015, TH Group deployed organic fresh milk of European EC834-2007 and EC889-2008 standards and American USDA-NOP standards in Vietnam. TH Group has also received organic certifications for FVF-branded fruits and vegetables and TH Herbals-branded medicinal ingredients.
Not only respecting the law with its own regulations and standards, TH Group also takes the lead and shapes environment trends in Vietnam such as pioneering organic farming, developing harmonious agriculture with Mother Nature (awarded the CSR Award and Health Promotion Award in Philippines 2018 for this step). The group forges ahead with the transformation of conventional farms into organic farms right on Vietnamese soil with international organic certification from the EU and the USDA. It applies technology to separate and filter water until it meets standards, builds biodiversity protection corridors throughout Dalatmilk, Farms and NASU to protect the life of insects and natural enemies.
Attracting employees and investors
Along with productivity, this is one of the most visible competitive advantages of an entity. In TH, transparent working conditions are our competitive advantage.
In TH, all employees regularly have their job performance and career development assessed. Since the beginning of 2018, to realize its vision of becoming the best workplace in Vietnam, TH has applied the latest software for human resource management, SAP. The software enables a real-time data-based human resource management and provides complete and timely analytic information for management in all aspects: Inclusion training for new employees; training management and performance management, recruitment, training and successor training; talent management and human resource index analysis.
Getting aligned with the sustainable development goals of reducing inequality and respecting gender equality rights, TH also has its own Code of Conduct. In addition, the “Speak up” violation reporting system is a process system operated by an independent committee where we resolve work incidents with the ultimate goal of finding solutions to harmonize interests among stakeholders.
This very equality creates competitive power for TH. For example, at FVF, we have many ethnic minorities growing on their ancestral land. They are invaluable resources of TH. They not only help TH and Vietnam preserve thousand-year knowledge, but also help TH convey the message that we are proud of our heritage, identity and tradition.
Not only keeping its advantage by preserving and developing its talents, TH Group also creates advantages by prioritizing cooperation with the local community, readily supporting the community whenever and wherever possible. Currently, about 20,000 Vietnamese farmers are participating in a feed production chain for dairy cows at TH Farm. In 2018 alone, TH purchased 110,000 tons of corn from local farmers. In addition, they are trained in farming methods and using raw materials and advanced agricultural techniques.
Madam Thai Huong, Founder of TH Group
(Excerpt from the keynote speech by Madam Thai Huong - the founder of TH Group - at the National Sustainable Development Conference in September 2019)
Vietnamese
