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Vingroup Leading Vietnam's Green Revolution

General Report January 11, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Vingroup's Commitment to Sustainability
  3. VinFast: A Leader in Electric Vehicles
  4. Broader Environmental Impact Across Vingroup's Ecosystem
  5. Collective Action Towards a Greener Future
  6. Conclusion

1. Summary

  • Vingroup is at the helm of Vietnam's green transition through its multifaceted approach to sustainability, significantly driven by VinFast, its electric vehicle company. The report delves into the company's strategic initiatives, highlighting its transition from traditional vehicles to electric ones, resulting in substantial reductions in carbon emissions. Vingroup's achievements in launching eco-friendly vehicles, reducing CO2 by 152,000 tonnes through VinFast, and cutting 500,000 tonnes of carbon emissions throughout its operations in 2023 are noteworthy. The corporation's commitment extends across its other sectors, such as real estate through Vinhomes, and hospitality via Vinpearl, integrating energy-efficient and sustainable practices in their operations. This comprehensive effort underscores Vingroup's leadership in promoting green living and its influence in inspiring collective action towards a sustainable future.

2. Vingroup's Commitment to Sustainability

  • 2-1. Overview of Vingroup's green initiatives

  • Vingroup is at the forefront of Vietnam's green transition, primarily through its electric vehicle division, VinFast, and its various eco-friendly initiatives across its diverse business sectors. The company has made significant strides in sustainability, not merely as a compliance measure but as an integral part of its corporate identity. For instance, VinFast, which pivoted from traditional gasoline vehicles to electric cars in 2021, has rolled out multiple electric vehicle models and successfully delivered 34,855 units in 2023 alone, resulting in a CO2 emissions reduction of 152,000 tonnes. Furthermore, Vingroup's overall commitment to green practices has led to a 500,000 tonne reduction in total carbon emissions across its ecosystem in 2023.

  • 2-2. Corporate environmental responsibility and its importance

  • Vingroup exemplifies corporate environmental responsibility, showcasing its role as a key player in advancing the sustainability agenda in Vietnam. The company's initiatives span sectors such as automotive, real estate, and tourism, sectors known for their substantial environmental impacts. Vingroup's leadership reflects the critical necessity for large enterprises to engage in sustainable practices to shape a more environmentally responsible future. The approach taken by Vingroup serves as a benchmark for other corporations, proving that integrating sustainability into business operations is not only viable but essential for collective action toward achieving net zero emissions.

3. VinFast: A Leader in Electric Vehicles

  • 3-1. Transition from gasoline to electric vehicles

  • VinFast, initially launched in 2017 as a conventional gasoline vehicle manufacturer, pivoted in 2021 to focus exclusively on electric vehicles. This strategic transformation reflects Vingroup's dedication to contribute to society, not just to conduct business. The commitment to electric vehicles is supported by Chairman Pham Nhat Vuong's vision, which emphasizes societal contribution as a core motive behind the establishment of VinFast.

  • 3-2. Achievements in electric vehicle sales and emissions reduction

  • In 2023, VinFast delivered a total of 34,855 electric vehicles, which contributed to a significant reduction of 152,000 tonnes of CO2 emissions. The company's rapid growth is attributed to its strategic integration within Vingroup’s diverse business ecosystem. Additionally, by providing incentives such as free charging and discounted parking for VinFast EV users at Vingroup properties, VinFast has successfully positioned itself as a leading brand, achieving the milestone of becoming the top-selling car brand in Vietnam for September 2023. This achievement marks a significant advancement for the electric vehicle sector and contributes meaningfully to Vietnam's green transportation efforts.

4. Broader Environmental Impact Across Vingroup's Ecosystem

  • 4-1. Sustainability initiatives in real estate (Vinhomes)

  • Vinhomes, Vingroup's real estate division, has prioritized sustainability by designing eco-friendly properties that incorporate energy-efficient technologies and green spaces. These initiatives reflect Vinhomes' commitment to facilitating green urban living and achieving a harmonious balance between urban development and nature.

  • 4-2. Green practices in hospitality and entertainment (Vinpearl)

  • Vinpearl, Vingroup's hospitality and entertainment brand, has embraced sustainability across its 45 properties located in 17 provinces. The brand has implemented energy-efficient measures, including rainwater harvesting systems for irrigation and advanced wastewater treatment solutions that adhere to international standards, earning it recognition as a collection of 'green paradises' within the community.

  • 4-3. Overall carbon emissions reduction across Vingroup's operations

  • In 2023, Vingroup achieved a significant reduction in carbon emissions, nearing 500,000 tonnes across its diverse ecosystem. This accomplishment underscores Vingroup's commitment to environmental, social, and governance (ESG) principles and highlights its role as a key player in Vietnam's green transition efforts.

5. Collective Action Towards a Greener Future

  • 5-1. The importance of collaboration for achieving sustainability goals

  • The need for a collaborative approach is crucial for achieving sustainability goals. As highlighted in the reports, achieving net zero emissions is a monumental task that requires participation from individuals, communities, and multinational corporations alike. The collective action from all sectors is essential to create meaningful change in addressing environmental challenges.

  • 5-2. Vingroup’s role in inspiring collective environmental responsibility

  • Vingroup is positioned as a key driver in Vietnam's green transition, especially through its electric vehicle company, VinFast, and various eco-friendly initiatives across its diverse business operations. The corporation has not only demonstrated corporate environmental responsibility but has also inspired other businesses to adopt sustainable practices. In 2023 alone, Vingroup’s total carbon emissions reduction across its ecosystem approached 500,000 tonnes, showcasing its commitment to environmental, social, and governance (ESG) principles. By integrating sustainability deeply into its corporate DNA and encouraging a collective responsibility for environmental stewardship, Vingroup serves as a powerful model for how corporations can influence broader societal change.

Conclusion

  • Vingroup’s efforts, notably through VinFast, set a high standard for corporate environmental responsibility within Vietnam. The impactful reduction of emissions achieved by Vingroup highlights the transformative potential of integrating sustainable practices across business operations. Such initiatives not only underscore Vingroup's role as a leader in Vietnam's green transition but also serve as a model for other companies. However, achieving net-zero emissions across larger scales remains a formidable challenge necessitating sustained collaboration among communities, industries, and governments. Vingroup exemplifies the efficacy of collective action in addressing environmental challenges, demonstrating that corporate engagement can catalyze significant change. Going forward, continued innovation and expansion of eco-friendly initiatives will be vital, and practical steps like Vingroup's can guide global corporate strategies towards a cleaner future.

Glossary

  • Vingroup [Company]: Vingroup is one of Vietnam's largest private enterprises, with a diversified portfolio spanning automotive, real estate, and tourism. Its commitment to sustainability is evident through its electric vehicle division, VinFast, and various eco-friendly initiatives. Vingroup's actions play a pivotal role in Vietnam's transition to a greener economy, positioning it as a leader in corporate social responsibility and environmental stewardship.
  • VinFast [Electric Vehicle Company]: VinFast is Vingroup's electric vehicle division, which shifted its focus from gasoline vehicles to electric models in 2021. The company has achieved significant milestones, including becoming the top-selling car brand in Vietnam and contributing to substantial reductions in CO2 emissions. VinFast exemplifies the integration of sustainability into business strategy and highlights the critical role of innovation in addressing environmental challenges.

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