Vicostone Leads the Way in ESG Implementation for a Sustainable Future

E – Building a Green and Sustainable Value Chain

In the face of global challenges such as climate change and resource depletion, the transition to sustainable development has become an imperative for the construction materials industry. With a long-term vision, Vicostone proactively adopted an ESG-based business strategy from the outset, steadily progressing toward achieving Net Zero carbon neutrality by 2050.

Not only a pioneer in environmental governance, Vicostone is also one of the few companies in the construction materials sector with a sustainable and self-reliant supply chain. Supported by its parent company, Phenikaa Group, Vicostone continuously invests in technology, raw materials, and product research and development to ensure autonomy, transparency, efficiency, and sustainability across the entire value chain.

Currently, over 90% of high-quality raw materials are researched and produced internally within the Phenikaa and Vicostone ecosystem, ensuring tight control over origin, quality, and sustainability. Additionally, seven advanced Breton (Italy) production lines optimize processes, reduce energy consumption, and increase the recycled material ratio in products by sevenfold in 2024 compared to 2023.

The effectiveness of the sustainable value chain is evident in the success of its products: To date, approximately 33% of VICOSTONE® products contain recycled materials, generating annual revenue of $15–20 million. Notably, recycled products like BQ7405, certified by Cradle to Cradle (C2C), have successfully entered demanding markets such as the U.S. and Canada, showcasing the brand’s technological capabilities and green production philosophy on the global stage.

Viewing raw material self-sufficiency as a cornerstone of sustainable development, Vicostone sources over 90% of its inputs internally from the Phenikaa ecosystem, proactively mitigating risks associated with climate change, trade wars, and geopolitical tensions.

With a focus on technological innovation and climate action, Vicostone has digitized and greened its entire value chain, encompassing the full product lifecycle: from raw material extraction and circular production to post-consumer recycling. The company’s investments in technology and practical solutions have yielded impressive results:

In 2024, the adoption of international standards (ISO 14064 & ISO 14067) for emissions tracking and verification at factories reduced greenhouse gas emissions by 21% compared to 2022, cutting over 200 tons of CO₂ annually through solar power systems.

100% of wastewater and 62% of industrial solid waste are recycled, transforming waste into valuable resources for other industries.

Implementation of the ISO 50001:2018 energy management system ensures sustainable cost savings and emission reductions.

These synchronized initiatives—optimizing energy management, promoting renewable energy, and advancing production technology—deliver dual benefits: environmental protection and enhanced economic efficiency.

At Phenikaa Hue, these innovations save billions annually, recover 94% of lost materials, and boost production efficiency by 20%, underscoring the tangible value of green manufacturing.

Adhering to international standards, Vicostone operates an integrated vertical production model, ensuring consistent quality, resource optimization, and minimized environmental impact.

S – Social Responsibility in Every Action

Under the Social pillar, guided by a conscious business culture and a “Service-Oriented Mindset,” Vicostone places people at the heart of its operations, inspiring every member to contribute to sustainable value creation.

Beyond integrating ESG into production and business, Vicostone and Phenikaa Group launch meaningful community programs like “School Reinforcement,” “Journey of Knowledge,” and environmental campaigns such as “Green Actions – Sowing Happiness,” engaging nearly all employees. These initiatives foster happiness and promote sustainable development for society.

Vicostone also fosters a professional yet humane work environment, championing gender equality, personal development, and innovation. Every employee acts as an “Internal ESG Ambassador,” driving the company’s sustainability commitments from within.

Social responsibility is embedded in every Vicostone product. Beyond aesthetics and superior quality, each product embodies a commitment to green living. Vicostone collaborates with architects, designers, and global customers to promote green materials for a sustainable lifestyle worldwide.

VICOSTONE® products are chosen by customers and experts for sustainable, elegant, and safe living spaces (Vicostone at IDS Canada Exhibition, September 2025)

G – Robust Governance Aligned with International Standards

In an era of globalization, sustainable governance aligned with ESG principles has become essential for long-term business survival and growth. Recognizing this, Vicostone prioritizes building a governance foundation based on international standards, a key pillar in its sustainable development strategy.

Vicostone operates a three-tiered ESG governance system, closely aligned with Phenikaa Group’s strategy. This modern, transparent structure ensures effective coordination among people, technology, and data. Through synchronized digital platforms—integrated enterprise management systems, centralized data warehouses, and intelligent analytics tools—decisions are data-driven and timely. The BSC–KPI-OKR framework, internal audit mechanisms, and international risk management standards (ISO 31000, COSO ERM) guarantee compliance, integrity, and high performance.

A core focus is comprehensive Risk Management (RM), integrated into all operations—production, business, and investment—and embedded in the corporate culture. Vicostone also prioritizes information security through dedicated policies and projects, turning challenges into opportunities for long-term sustainable growth.

In 2024, Vicostone marked its 11th consecutive year publishing a Sustainability Report aligned with GRI standards, demonstrating its commitment to transparency, accountability, and international governance compliance.

Vicostone’s resilience and flexible governance have earned prestigious awards, including Vietnam National Brand, Top 100 Sustainable Companies (CSI 100), Top 10 HNX-Listed Companies for Governance, and Top 100 Green ESG Companies in Vietnam. These accolades highlight Vicostone’s integration capabilities, agile governance, and pioneering sustainable development strategy.

Committed to sustainable development, Vicostone and Phenikaa Group are honored in the Top 100 Green ESG Companies in Vietnam (ESG100)