“The Chili King” Phuc Sinh Shares Insider Stories on Attracting Million-Dollar Investments from Europe after a Decade of ESG Practices

In August 2024, Phuc Sinh Group received an investment from the &Green Investment Fund (Netherlands) with a total disbursement and planned funding of up to $25 million over seven years. Mr. Phan Minh Thong, Chairman of Phuc Sinh Company (known as the “King of Pepper” in Vietnam), shared that to secure this $25 million deal, the company has been committed to implementing sustainable development practices since 2010 and has persevered in its ESG efforts for over a decade.

ESG stands for Environment, Social, and Governance. These are the three critical standards used to measure a company’s level of sustainable development and its impact on society.

At the 2024 National Sales and Marketing Conference (VSMCamp), Mr. Phan Minh Thong revealed that during Phuc Sinh’s 23-year journey, the company has dedicated nearly half of that time to focusing on ESG.

“In 2008, Phuc Sinh sold products to a top-5 company in the Netherlands in the consumer goods sector. They required that 50% of their shelf goods carry a sustainable development certificate. At that time, the concept of ‘sustainable development’ was still novel, and we asked ourselves how Phuc Sinh could obtain such a certificate? By 2010, Phuc Sinh had invested VND 800 million to hire ESG experts to drive sustainable development. However, we faced setbacks in the first two years of implementation. But by 2014, we succeeded in becoming one of the first companies in the spice industry in Vietnam to attain the Rainforest Alliance certification.”

The Chairman of Phuc Sinh Company also shared that when they embarked on their ESG journey, they realized that sustainable development is closely tied to people, organizations, and, most importantly, the land and water sources in the local community, rather than some abstract concept.

“Just a year and a half after obtaining the sustainable development certification, Phuc Sinh’s products commanded higher prices. The profits generated were sufficient to cover the entire project’s costs. Initially, we only operated in one region, but now Phuc Sinh has expanded its projects to Dak Lak, Dak Nong, Gia Lai, Lam Dong, Binh Phuoc, and especially Son La,”

Mr. Phan Minh Thong revealed.

Notably, the Chairman also shared that just three months after partnering with &Green in August 2024, Phuc Sinh received more good news with a non-refundable grant from the Dutch Climate and Development Fund (DFCD). According to Mr. Thong:

“DFCD is funding 75% of the total project value of 575,000 Euros, equivalent to 431,250 Euros. With this funding, Phuc Sinh will further expand its sustainable development projects, including anti-deforestation efforts and broader ESG initiatives, meeting international standards, especially in demanding markets like Europe.”

Following these two investments, Mr. Thong revealed that Phuc Sinh has received another funding offer.

“Sustainable development requires a significant financial commitment, and it demands perseverance and determination from the business. In summary, for a company to achieve sustainable development, three key factors are needed: determination, time, and financial resources,”

emphasized Mr. Phan Minh Thong.