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Industry Discussion: “Sustainable Development in the Fast-Moving Consumer Goods Sector”Date: 03/07/2024 |
Unlocking Growth Potential and Embracing the “Green” Trend
According to Associate Professor Dr. Dinh Trong Thinh, the potential of the consumer goods industry is evident in Vietnam’s rapidly growing economy and the swift rise in per capita income. This dynamic gives rise to diverse consumer demands, spanning from durable technological goods to fast-moving consumer goods, the latter consistently achieving double-digit growth rates over the years.
Dr. Thinh highlights that Vietnam’s population of over 100 million presents a diverse range of consumer needs. While younger demographics exhibit a penchant for immediate and diverse fast-moving consumer goods, middle-aged individuals are also increasingly embracing this trend.
In the digital age, swift and precise delivery is a growing expectation, especially among the elderly. These factors present unique advantages for Vietnam’s fast-moving consumer goods sector.
Navigating Challenges in the Quest for Sustainability
However, as consumer trends evolve towards “greener” preferences, fast-moving consumer goods must increasingly meet stringent standards for food safety, environmental hygiene, and waste management.
Professor Dr. Vu Trong Hong identifies two primary challenges: the first being the rapid evolution of the legal framework, exemplified by frequent amendments to the Environmental Protection Law, which poses difficulties for businesses to keep pace.
Secondly, infrastructure shortcomings hinder business development, notably the struggle to secure sufficient sand for road construction, limited progress in rail expansion, and the costly nature of air freight.
Professor Hong emphasizes the imperative for a symbiotic relationship between the superstructure and infrastructure, aligning with longstanding economic principles in Vietnam.
Vietnamese Businesses: Embracing the Journey towards Sustainability
Associate Professor Dr. Dinh Trong Thinh sheds light on the intense competition faced by Vietnamese businesses, given the multitude of border trade points facilitating swift imports from abroad. This competition spans across various sectors, including industrial goods, food products, consumer goods, and electronics.
The critical challenge for Vietnamese fast-moving consumer goods enterprises is ensuring product safety, efficiency, and reasonable costs. Dr. Thinh underscores the complexity of this equation, warning that failure to strike the right balance will result in products being ousted from shelves and failing to penetrate developed markets.
From instant noodles to alcoholic beverages, imported goods undergo rigorous scrutiny, driving up costs. Thus, we must embrace “green” practices from the outset, encompassing production, warehousing, and transportation, to ensure optimal preservation and consumer safety.
Vietnamese businesses currently grapple with the necessity of obtaining green certifications, a complex endeavor that requires collaboration across various governmental agencies, as noted by Dr. Thinh.
Professor Dr. Vu Trong Hong identifies three primary barriers for Vietnamese businesses in their quest for sustainable development: inadequate capital, logistics bottlenecks in certain regions, and the fickle nature of consumer preferences, often influenced by online trends.
Nurturing a Culture of Safe and Sustainable Consumption
Associate Professor Dr. Dinh Trong Thinh affirms that the pursuit of sustainability in the fast-moving consumer goods sector aligns with global trends, and Vietnam is gradually embracing this paradigm. To steer consumer behavior towards “greener” choices, effective propaganda to reshape consumer mindsets is paramount, complemented by practical initiatives and activities.
It is essential to foster a heightened sense of environmental responsibility among consumers, encouraging proper waste segregation and disposal, alongside the implementation of commensurate sanctions.
By Huy Khai
VinFast’s journey to realizing the dream of Vietnamese businesses conquering the international market
After a stunning victory in the “Event of the Year” category at the WeChoice Awards 2023, VinFast’s pioneering event listed on the US stock exchange has inspired many Vietnamese businesses and young people.
VinFast’s Success Leads the Way for Vietnamese Businesses to Conquer the Global Market
VinFast’s listing on the US stock exchange not only provides an opportunity for the company, but also inspires a strong sense of empowerment among young Vietnamese entrepreneurs. It affirms that dreams and ambitious visions are not bound by geographical limitations.
The Advantages of Saint-Gobain in the “Green Racing” Track
Pioneering early investments in the production and supply of lightweight, sustainable construction materials, Saint-Gobain has achieved success and is ready to expand its ecosystem of these solutions to meet the potential market demand in Vietnam.
Adapting to the trend, ITL is ready to take off.
Being attuned to global logistics trends is one of the secrets that helps ITL stay on track and shorten the journey towards our goals.
A multi-billion dollar industry set to enter the top 5 largest export markets in Vietnam: USA and Japan could be major clients.
The industry has the potential to reach $12 billion by 2027, making it the fifth largest export industry in Vietnam.
