The Sustainable Journey of Thien Long: A Trailblazer in Vietnam’s Stationery Industry

Over a decade ago, Thien Long, a prominent name in Vietnam’s stationery sector, embarked on a transformative journey by developing eco-friendly products made from recycled materials. This ambitious initiative encompassed a range of products, including blackboards, ballpoint pens, and industrial pallets. However, the path towards sustainability was riddled with challenges, pushing the company to its limits and testing its resilience. As CEO Tran Phuong Nga notes, “To succeed, we had to reduce costs, refine designs, and clearly convey our message to customers.”

Navigating Challenges

The onset of e-commerce introduced fierce competition, coupled with an influx of counterfeit products that undermined consumer trust. While many companies might have opted for quick fixes, Thien Long chose a sustainable approach. As Ms. Nga emphasizes, “For the company, sustainability wasn’t just about eco-friendly products; it was a philosophy rooted in purpose.” This commitment to a sustainability-centered mission set Thien Long apart in a crowded marketplace.

A Vital Imperative for Brand Development

Thien Long’s journey highlights a crucial understanding in today’s business landscape: sustainable brand development is not merely a noble mission but a strategic necessity. For Vietnamese brands aiming to establish a presence on the global stage, embracing sustainability as a core identity becomes vital. This notion was echoed at the Vietnam Global Brand Summit 2024, where Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HUBA), pointed out the importance of aligning resources to elevate Vietnamese brands globally.

A Foundation for Success

Sustainability is positioned as the foundation for thriving in both domestic and international markets. Mr. Hoa noted that supportive government policies combined with sustainability-focused corporate governance are essential for fostering a responsible business environment. Brands wield a kind of “soft power” that shapes public perception and nurturing community accountability—a key ingredient for meaningful change.

Crafting a Defining Narrative

Ms. Tran Tue Tri, Co-Founder and Senior Advisor at Vietnam Brand Purpose, articulated a vision where sustainability becomes the defining narrative of Vietnam’s National Brand. According to her, “Sustainable development will be a defining, timeless, and impactful narrative for Vietnam’s National Brand.” She further emphasized that alongside state policies, corporate sustainability strategies are instrumental in forging this narrative, enabling businesses to stand strong in both local and international arenas.

The Global Context of Sustainability

The global landscape is increasingly influenced by sustainability dynamics. Ms. Marie-Anne Aymerich, Non-Executive Director at Haleon Global, highlighted the necessity of embedding sustainability into the core strategy of businesses. Achieving this, she pointed to the importance of developing a robust Environmental, Social, and Governance (ESG) framework that enhances trust and connection with consumers.

Five Key Sustainable Approaches

Navigating the challenges inherent in sustainability requires strategic foresight. Ms. Aymerich outlined five fundamental approaches:

1. Balancing ESG and Business Needs: Companies face the tough task of navigating trade-offs between meeting sustainability standards and reaching business goals.

2. Emphasizing Collaboration: Building alliances with stakeholders, from suppliers to customers, can significantly increase value and enable businesses to extend their reach.

3. Effecting Global Change: Strategic alliances with other organizations enhance efficacy in addressing global challenges.

4. Prioritizing Transparency: In an era where consumer trust is paramount, businesses must operate transparently to bolster long-term success.

5. Measuring Outcomes: Implementing clear methods for assessing sustainability strategies allows companies to adapt and improve continuously.

Consumers’ Willingness to Pay Premiums

Despite the obstacles on the sustainability journey, consumer appetite for eco-friendly products is rising. Mr. Alex Haigh, Managing Director of Asia Pacific at Brand Finance, noted that data suggests consumers are increasingly willing to pay a premium for sustainable options. In fact, over half of consumers are showing interest in electric vehicles and a significant majority would opt for products with verified zero-carbon footprints.

VinFast and Vinamilk serve as prime examples of Vietnamese firms leaning into sustainability. Brand Finance has reported a 140 percent increase in VinFast’s brand value due to its commitment to net-zero and renewable energy. Vinamilk is also gaining recognition in ESG rankings by shifting focus toward sustainable food production practices.

Consumer Awareness and Behavior

A recent survey conducted by MetrixLab revealed that 75 percent of Vietnamese consumers are familiar with sustainability concepts, with 81 percent indicating that a brand’s sustainability efforts influence their purchasing decisions. Interestingly, while there is a high awareness of sustainable practices, there’s a notable “Values-Actions” gap, as only 10 percent of consumers consistently follow through on their intentions.

Building for the Future

From the perspective of businesses embracing sustainability, Mr. Ly Huy Sang, General Director of Minh Long I Ceramics and Porcelainwares, noted a shift among younger consumers towards eco-friendliness. The company has undertaken initiatives to educate and engage students about sustainable practices. This generational shift is fostering a cultural change towards more mindful consumerism.

Minh Long has also made significant strides in reducing its environmental footprint by transitioning from traditional fuels to electricity, leading to a 60 percent reduction in greenhouse gas emissions. However, challenges remain, including competition from the plastic industry and the need for investments that balance cost-effectiveness with consumer benefits.

By focusing on strong community values and consumer trust, businesses can navigate the path to sustainable growth effectively.