The article by Mr. Đinh Hồng Kỳ was published in the Business Forum Magazine – Vietnam Chamber of Commerce and Industry (VCCI), issues 280-282, January-February 2023, under the title “Symbiosis and Circulation.”
In early May 2022, our company received a “Carbon Emission Reporting” (carbon footprint questionnaire) request from a French customer — the world’s third-largest retail system with nearly 900 supermarkets distributing building materials and interior-exterior decoration products globally.
In the context that the concept of “carbon emission reporting” is still new to Vietnamese businesses, our partner further explained: “Reporting carbon emissions at the factory during production is a crucial activity to reduce pollution, create Positive Products, and contribute to building a circular economy. This is a mandatory requirement for manufacturers to be allowed to participate in our supply chain in the future.”
Proactively Participating in the Green Supply Chain
Transitioning from a linear economy model to a circular economy requires the involvement and close cooperation of all components in the supply chain, including Sub-suppliers; Suppliers; Companies; Customers; and Consumers. Enterprises and individuals participating in the supply chain need to be aware of and act to adapt to the shift from a linear supply chain management (SCM) to green supply chain management (GSCM) — where resources are retained for as long as possible and waste is minimized at every stage, from design to distribution.
For example, Secoin is participating in this global supply chain with stringent requirements for Secoin’s artistic tile products. To ensure green and circular factors for the supply chain, our partner has established the “Positive Products” program based on five core principles: (1) Products safe for humans and the planet; (2) Made from renewable and recycled raw materials whenever possible; (3) Produced with responsibility regarding human rights, labor rights, and pollution prevention; (4) Durable products; (5) Designed to improve indoor environmental performance, such as water and energy use. To meet these criteria, we need to build a circular transformation roadmap in each stage—from design, product development, raw material procurement, production, packaging to the selection of external logistics services. The challenges are many but will create opportunities for our products to have a long-term and sustainable position in the global green supply chain.
Ten Opportunities for Investing in the Circular Economy Spread Across Five Sectors: Construction, Transportation, Plastic Packaging, Fashion, and Food.
Promoting Industrial Symbiosis
Each enterprise has its own approach to the circular economy model suitable for its actual operations. However, another important solution is “industrial symbiosis” to create a circular business community. Industrial symbiosis is an innovative approach that brings together companies from different business sectors to process waste into energy and/or materials, including water.
In other words, in symbiotic linkage, the waste output of one enterprise becomes the input raw material of another. This symbiotic process creates added value while enabling sustainable management of industrial waste, by-products, and urban waste.
Industrial symbiosis has also begun to emerge in Vietnam. For example, in Nam Cau Kien Industrial Park, companies are linked together to form a circular business community with an industrial symbiosis model covering three sectors: metallurgy–mechanics; plastics; and electrical auxiliary industries.
Current production and business models in Vietnam still heavily reflect a “linear” characteristic, and we are only beginning the journey toward a circular economy. There is no universal formula for enterprises on the path to approaching the circular economy. However, with the mindset and awareness of the importance of the circular economy and the urgent need to create sustainable supply chains, each enterprise needs to develop its own roadmap to transition from “linear” to “circular.”
Especially when participating in the global market, Vietnamese businesses are required to produce regenerative products that contribute to combating climate change. If they do not adapt to the global trends, Vietnamese companies will only develop in the short term and lose opportunities to participate in the global supply chain. Business performance will be assessed not only through financial reports but also through new criteria sets, such as Environmental, Social, and Governance (ESG) reports. Creating positive and sustainable products is rapidly becoming a societal benchmark for the “business ethics” of companies and entrepreneurs.
In less than 30 years—equivalent to one generation—our country must bring net emissions down to “zero”! This means urgent action is required from all sectors of society, with the business community playing a foremost role.
From the perspective of a businessperson, I see that in the near future, only enterprises that deliver “positive” products/services, create value for the community with minimal resource costs, and do not generate new carbon emissions can be considered successful businesses.
Mr. Dinh Hong Ky
Chairman of Secoin Joint Stock Company
Vice Chairman of Ho Chi Minh City Business Association
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