5 million plastic straws eliminated, Vinamilk expands export orders

A small solution from the dairy giant shows that emission reduction is not always a cost burden, but can be a “priority pass” helping products expand their presence in premium markets and elevate brand value.

At the beginning of 2024, Vinamilk proposed that its New Zealand importer test a small packaging improvement for its 80ml HDPE bottled drinking yogurt – one of the company’s key export products. Specifically, the traditional round cap was replaced with a pre-cut lid with a pull tab, allowing consumers to easily open and use the product without a plastic straw.

The trial quickly created a buzz: New Zealand consumers enthusiastically welcomed it, and the importer immediately placed additional orders for nearly one million products with the improved packaging. In 2025, an additional 4.1 million bottles of drinking yogurt with the new design are expected to be supplied to the two largest retail chains in New Zealand. This means more than 5 million plastic straws will disappear from the market.

When sustainability becomes a competitive advantage

“When it becomes part of the development strategy, emission reduction is no longer a cost but a competitive advantage,” said Mr. Le Hoang Minh, Chief Production Officer and Head of the Net Zero Project at Vinamilk, at the 12th Vietnam Corporate Sustainability Forum (VCSF).

As one of the most important annual dialogue events between the business community and the Vietnamese government on sustainability, organized by VCCI since 2014, this year’s forum carried the theme “Sustainable development in the new era: Turning aspirations into actions” – reflecting the directive spirit of General Secretary To Lam to bring the nation into a new era of growth.

Using the packaging transition as an example, Mr. Minh explained that while installing new cap molds naturally incurred costs, the benefits were well worth it. In New Zealand alone, the innovation contributed to nearly 80% market growth in 2024, making it one of the top growth markets of the year. In 2025, it is expected to bring over 20% growth, building on the already high base of 2024.

More importantly, Vinamilk’s image as a “green” manufacturer was reinforced, enhancing competitiveness in markets with stringent environmental standards such as the U.S. and Australia. In fact, annual sales growth in many Oceania markets reached more than 56% in 2024. Vinamilk products are now present in major retail chains such as Costco, Woolworths, Coles, Aldi, and Foodstuffs.

Of course, this success did not come from a single effort. Mr. Minh emphasized that more than a decade ago, Vinamilk was already prepared to provide sustainability reports in line with international partners’ requirements. Alongside building international certifications such as ISO 9001:2015, FSSC 22000, ISO 17025, Halal, and EU Organic, the company has completed greenhouse gas inventories and accelerated its Net Zero roadmap across its value chain. The achievement of carbon neutrality certification for two factories and one farm further reinforces this commitment.

Cutting emissions, elevating brand value

Expressing his admiration for how Vinamilk leveraged emission reduction as a competitive edge, Mr. Nguyen Tien Huy, Secretary General of the Vietnam Business Council for Sustainable Development (VBCSD) under VCCI, said this was a strong example showing that sustainability does not always demand high costs. “Sometimes, small innovations can make a big difference,” he noted.

According to a recent Kantar report, about 22% of consumers said they are actively changing their behavior to shop more sustainably. PwC also found that over 80% of respondents expressed concern about climate change, with about half (44%) willing to pay more for eco-friendly food, such as products that improve soil quality and biodiversity. Another 43% said they could be persuaded to do so.

“This means businesses that lag behind in green transition or sustainable business strategies will face risks and be pushed out of the game sooner,” the VBCSD representative stressed.

Echoing this view, Mr. Minh emphasized that green consumption is no longer a niche but is becoming a mainstream requirement across all segments and markets, creating a lever for brand value growth.

For Vinamilk, the Food & Drink 2025 report by Brand Finance ranked the company No. 1 among the world’s Top 3 most valuable dairy brands. The ranking was based on key factors such as brand loyalty/recommendation, attractiveness to investors, pricing power, and long-term prospects - all directly influenced by ESG (Environmental – Social – Governance) practices.

“In other words, sustainability has shifted from being a ‘compliance cost’ to becoming a ‘strategic asset,’ directly enhancing brand value in global markets,” Mr. Minh concluded.