Sustainable Development: Transforming Cost Burdens into Brand Assets

A groundbreaking innovation in bottle caps has enabled Vinamilk (HOSE: VNM) to eliminate over 5 million plastic straws, contributing to a remarkable 80% growth in the New Zealand market. This small yet impactful solution from the dairy giant demonstrates that reducing emissions isn’t solely a cost challenge—it can serve as a strategic "priority card," expanding product presence in premium markets and elevating brand value.

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In early 2024, Vinamilk proposed that its New Zealand importer partner test a minor packaging innovation on the 80ml HDPE bottled sterilized yogurt drink—a flagship export product of the company. The traditional round bottle cap was replaced with a “tabbed lid” (Pre-cut lid with a pull tab), allowing consumers to easily open the bottle without using a straw.

The trial quickly gained traction: New Zealand consumers enthusiastically embraced the change, prompting the importer to immediately order nearly one million units featuring this innovation from Vinamilk. By 2025, an additional 4.1 million yogurt drinks with the improved packaging are expected to be supplied to New Zealand’s two largest retail chains. This shift means over 5 million plastic straws will disappear from the market.

When Sustainability Becomes a Competitive Advantage

“When integrated into a development strategy, emission reduction transforms from a cost into a competitive advantage for businesses.” This statement was made by Mr. Lê Hoàng Minh, Production Executive Director and Net Zero Project Lead at Vinamilk, during the 12th Vietnam Corporate Sustainability Forum (VCSF). Organized annually by VCCI since 2014, this forum is a key dialogue platform between Vietnam’s business community and government on sustainable development. This year’s theme, “Sustainable Development in the New Era: Turning Aspirations into Action,” reflects General Secretary Tô Lâm’s vision for propelling the nation into a new era of progress.

Mr. Lê Hoàng Minh, Production Executive Director and Net Zero Project Lead at Vinamilk, at the 12th Vietnam Corporate Sustainability Forum (VCSF) – Photo: Minh Anh.

Illustrating this with the packaging transition, Mr. Minh noted that while installing new cap molds incurs costs, the benefits are substantial. In New Zealand alone, this innovation contributed to nearly 80% market growth in 2024, ranking it among the year’s top-performing markets. For 2025, it is projected to drive over 20% sales growth, building on the strong 2024 baseline.

More significantly, Vinamilk’s reputation as a “green” producer has been strengthened, enhancing its competitive edge in environmentally stringent markets like the U.S. and Australia. In 2024, sales growth in Oceania exceeded 56% annually, with Vinamilk products available in major retailers such as Costco, Woolworths, Coles, Aldi, and Foodstuff.

These achievements are not the result of isolated efforts. Mr. Lê Hoàng Minh revealed that over a decade ago, Vinamilk began providing sustainability reports to meet international partner requirements. Alongside adopting standards like ISO 9001:2015, FSSC 22000, ISO 17025, Halal, and Organic EU, the company has completed greenhouse gas inventories and accelerated Net Zero initiatives across its value chain. The certification of two factories and one farm as carbon-neutral under international standards underscores this commitment.

Vinamilk is the first dairy company to achieve carbon-neutral certification for both farms and factories under the PAS 2060:2014 standard – Photo: Minh Anh.

Reducing Emissions, Elevating Brand Value

Impressed by Vinamilk’s approach to leveraging emission reduction as a competitive advantage, Mr. Nguyễn Tiến Huy, Secretary-General of the Vietnam Business Council for Sustainable Development (VBCSD) under VCCI, noted that sustainable development doesn’t always require massive investments. “Sometimes, small innovations can make a significant difference,” he remarked.

A recent Kantar report indicates that 22% of consumers are actively adopting more sustainable shopping habits. Meanwhile, PwC found that over 80% of survey respondents are concerned about climate change, with 44% willing to pay more for eco-friendly food—such as products improving soil quality and biodiversity. An additional 43% could be persuaded to follow suit.

“This means businesses slow to embrace green transformation or sustainable strategies risk being left behind,” emphasized the VBCSD representative.

Vinamilk’s eco-friendly products, produced with sustainability criteria, attracted significant interest from international buyers at the Vietnam International Sourcing 2025 exhibition.

Echoing this view, Mr. Lê Hoàng Minh stated that green consumption is no longer a niche market but a widespread demand across all segments and markets. This trend acts as a “lever” to enhance brand value.

For Vinamilk, the 2025 Food & Drink Report by Brand Finance ranked the company as the world’s most valuable dairy brand. This ranking is based on key criteria such as brand loyalty, investor appeal, premium pricing acceptance, and long-term prospects—all directly influenced by ESG (Environmental, Social, and Governance) practices.

“In essence, sustainable development has shifted from a ‘compliance cost’ to a ‘strategic asset,’ directly boosting brand value in the international market,” Mr. Minh concluded.

Kim Ngân

– 08:25 16/09/2025

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