Adopting sustainability standards, traditionally seen as a pressure point, emerges as a significant opportunity for the agricultural sector. This paradigm shift is crucial for countries like Vietnam, which experienced a surge in agricultural exports, peaking at $53.22 billion in 2022. Despite this growth, the nation’s food processing companies face competition challenges due to delays in embracing sustainability commitments.
Vietnam’s minor market share in the EU’s extensive fruit and vegetable market, currently at 0.18%, is partly due to non-compliance with the EU’s strict sustainability norms. Le Minh Hoan, Minister of Agriculture and Rural Development, advocates for a transition to a green, low-emission food system, perceiving this shift as an advantageous opportunity rather than a burden.
Discussions on initiating the greening process were central at a recent forum on logistics and supply chain management at RMIT University Vietnam. Experts shared insights from projects assisting Vietnamese manufacturers and food producers to adhere to environmental regulations.
Nguyen Thi Thanh An from the Australian Centre for International Agricultural Research in Vietnam shared successes from Moc Chau, where vegetable farmers gained VietGAP certification. This milestone led to a fivefold income increase, benefiting farmers, local authorities, businesses, and research institutions.
Nguyen Viet Dung of Bureau Veritas Vietnam emphasized the importance of international certification for learning and adapting to superior standards. Such efforts are vital for elevating Vietnamese agricultural brands.
Supply chain leaders play a crucial role in this transformation, as demonstrated by Vinamilk’s dairy farms. Their carbon-neutral initiative, leading to the first PAS 2060 carbon-neutral certification for a farm in Nghe An, showcases achievable success.
Recent RMIT University research published in the Journal of Supply Chain Management and Business Strategy and the Environment reveals that exporters’ proactive adaptation to green pressures leads to sustainable improvements. This approach allows local firms to engage with demanding markets and assimilate new standards and processes.
This research, surveying 437 manufacturers in seven countries, including Viet Nam, was conducted by Dr Nguyen Manh Hung and colleagues. Hung, a senior program manager for logistics and supply chain management, asserts that green credentials can be decisive in securing sales orders and gaining a market advantage. Adhering to environmental regulations and sustainable requirements is a strategic necessity, driven by the demands of a circular economy.
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