Tan Hiep Phat Finds Success with Green Economy Strategy

Sharing on the sidelines of the conference named “Policies to encourage and support enterprises to develop circular economy,” Phuong Uyen Tran, Deputy CEO of Tan Hiep Phat Group, affirmed that the responsibility of an enterprise associated with the development of the community, green economy is always put priority in the development of Tan Hiep Phat.

Being one of the enterprises that have successfully applied the circular economy model to production, Tan Hiep Phat is currently applying the 3R model (Reduce – Reuse – Recycle). In the first phase, Tan Hiep Phat made maximum cuts to create efficiency. This also helps bring economic efficiency to businesses and also helps effectively in protecting the environment and using natural resources.

Phuong Uyen Tran. Photo: Pinterest.com

During the first 5 years of 2013-2018, the 3R model helped Tan Hiep Phat reduce more than 50,000 tons of plastic and paper. In the period 2018-2022, the cumulative amount of reduced plastic climbed up to more than 70,000 tons thanks to the application of an aseptic cold filling line.

From 2021, Tan Hiep Phat enters the recycling phase, using PE, and PP plastic to produce pallets. Tan Hiep Phat’s goal by 2027 is to reduce more than 112,000 tons of paper and plastic. Ms. Phuong Uyen Tran acknowledged that this was the responsibility of the company and that the sustainable development of the business must be associated with the development of the community.

After nearly 3 decades of implementing 3R, Tan Hiep Phat realizes that circular economy or green economy are indispensable models for the sustainable development of businesses.

However, the companies have to face some challenges. One of the biggest “concerns” of businesses is how to “circulate” smoothly but still have to keep the “economic” value.

Phuong said, after 2 years of research, besides reducing and reusing, Tan Hiep Phat’s R&D team found an opportunity and started manufacturing the first recycled product named plastic pallets in October 2021.

This model is really effective and worth replicating. However, it is a fact that there have been many difficulties in the implementation phase. For example, there is no input invoice for the collected plastic to put into recycling production.

Bottles and products made from plastic are considered garbage, so it is difficult to get an input invoice, which becomes an urgent problem for businesses, Ms. Phuong Uyen Tran acknowledged.

Besides, according to Ms. Phuong Uyen Tran, there should be more policies to support businesses to implement the circular economy. Currently, the incentives for businesses in this field are few, in general, and are not really motivating for businesses.

Although circulating products have not really brought high economic efficiency yet, Tan Hiep Phat still takes responsibility to the community. That is the initial motivation to start implementing.

“In the future, I believe that with the efforts and available opportunities, along with the pressure to save natural resources, both people and businesses will join hands in spreading the model of green economy,” Phuong Uyen Tran shared.

Green economy is always associated with sustainable development. According to Phuong Uyen Tran, for the circular economy to really come to life, it is necessary to change the perception of people and businesses at the national level, not just at a minority group.

Citing the story of Thanh Vu, the female champion at the SwissUltra 2022, which is one of the toughest races on the planet, Phuong Uyen Tran said Thanh Vu was currently an employee and the brand ambassador of Tan Hiep Phat. She was the girl with a green lifestyle, good awareness of preserving and protecting the environment. In Thanh’s opinion, human being uses natural resources to survive, so they must be responsible for “returning” the environment, making up for what they have used.

Photo: kinhtevadubao.vn

Photo: kinhtevadubao.vn

According to Phuong Uyen Tran, individuals with such a socially responsible lifestyle are an inspiration for young people to change their perceptions. For example, garbage sorting has contributed to environmental protection and sustainable development.

Because waste classification is one of the most laborious and expensive stages, after sorting recyclable parts such as plastic bottles being used as raw materials for recycling plants such as Number One factory in Hau Giang.

In addition to spreading the green lifestyle, Phuong Uyen Tran also emphasized that it is necessary to have a synchronous policy to further encourage businesses to participate in the circular economy.

“These policies need to be applied specifically and clearly so that businesses can invest more heavily in building factories and applying technology to implement the circular economy,” Phuong Uyen Tran said.

When it comes to the investment in Number One factory in Hau Giang, besides recycling and processing plastic bottles into pallet products used internally by the company, Tan Hiep Phat also sees the demand for recycled products in the market and is ready to join hands with other businesses to synchronously implement this model at Number One factories in Chu Lai, Ha Nam, and Binh Duong.

Sharing about the development orientation, Phuong Uyen Tran said: “For Tan Hiep Phat‘s employees or partners, we always require the implementation of a green economy. This is a part of the new investment criteria of the partners and employees. Thanks to the establishment of requirements from the very beginning, the factors of a green economy are always put priority in the development of Tan Hiep Phat”.