Vietnam has gained momentum in agricultural exports in recent years, reaching about $US40 billion per year and setting a record high of $US53.22 billion in 2022. Although high standards for sustainable production and exports create opportunities to gain a competitive edge, it also put pressure on the agricultural industry. Many Vietnamese food processing companies have reportedly lost their orders to competitors due to slow implementation of sustainability commitments.
The EU is the world's largest fruit and vegetable import market, but Vietnam's market share only accounts for 0.18 per cent of the EU's total import value, partly due to failure to comply with stringent norms set by this region.
Generally, food production in Vietnam has yet to meet green growth requirements. Minister of Agriculture and Rural Development Le Minh Hoan highlighted the need to transition to a green food system with low emissions and said greening agriculture is not a burden but an opportunity.
How to start the greening process? This was one of the major questions raised in the recent Logistics and Supply Chain Management Forum at RMIT University Vietnam. Experts at the event shared findings from projects facilitating Vietnamese manufacturers and food producers in handling compliance with environmental regulations.
Photo: Speakers and guests at Logistics and Supply Chain Management Forum at RMIT University Vietnam
Mr Viet Dung Nguyen, Country Chief Executive of Bureau Veritas Vietnam, a world leader in testing, inspection, and certification said the certification process provides opportunities for learning from the best practices of supply chain partners and adapting to higher international standards. This can enhance and promote the brands of Vietnamese agricultural products.
Photo: Mr Viet Dung Nguyen sharing at Logistics and Supply Chain Management Forum at RMIT University Vietnam
He re-emphasised the role of supply chain leaders in motivating farmers and food processing companies in adapting to global certification, citing the success of Vinamilk's Green Farm project with itsPAS 2060 carbon neutral certification.
Recent research published in the Journal of Supply Chain Management and Business Strategy and the Environment by RMIT University researchers, surveyed 437 manufacturers in seven countries, indicates that exporting led to a proactive approach in handling customers’ green pressures and better sustainable measures. These findings highlight a practical approach for local firms to be exposed to more challenging markets and learn new standards, processes, and schemes.
Dr Nguyen Manh Hung, Senior Program Manager for Logistics and Supply Chain Management at RMIT Vietnam said “When all companies strive to compete on costs, quality, and delivery, being green can help a company win sales orders and achieve a competitive advantage in the marketplace.
At Bureau Veritas, we understand that sustainable development is an essential element for businesses to move towards a sustainable and resilient future. We are proud to have shared our expertise at the conference and look forward to continuing our collaboration to promote sustainable development in the industry.