Bền vững cần đi đôi lợi nhuận, nếu không đó là “từ thiện” - Bruno Jaspaert, DEEP C Industrial Zones

Key Concepts

• Global Supply Chain Restructuring
• Sustainability & Profitability
• Eco-Industrial Parks
• Trade Wars & Tariffs
• Vietnam's Economic Growth
• ESG Compliance
• Talent Acquisition & Retention
• Renewable Energy & Green Manufacturing

Global Supply Chain Restructuring and Trade Wars

• Main Point: The global supply chain is undergoing a restructuring, moving away from a purely global model to a more agile, multi-headed approach due to trade wars and geopolitical tensions.
• Details:
  • The speaker believes that the global supply chain is no longer becoming global.
  • The US has been steadily pushing to bring production back since the Trump administration.
  • Biden administration also imposed tariffs, such as on solar panel manufacturers in Vietnam.
  • Supply chains are becoming more agile, with production platforms popping up in different locations like a "multi-headed dragon."
  • This shift will likely lead to increased costs due to the duplication of machinery and management across multiple platforms.
• Impact: Increased production costs and potential price increases for consumers.
• Example: Solar panel manufacturers in Vietnam faced tariffs exceeding 200%, leading to a shift in production towards non-American markets.

Deep C's Strategy in a Changing World

• Customer Mix: Roughly 25% Chinese-speaking, 20% Korean, 15% Japanese, 40% Vietnamese, and the rest from other countries.
• Impact Assessment: Less than 20% of Deep C's customers have substantial business going to the US, mitigating the immediate impact of tariffs.
• Pipeline: The company's pipeline remains strong, and the outlook for the current year is on track.
• Long-Term Strategy: Acknowledges potential pain in the short term and the need to take action to address long-term uncertainties.
• Vietnam's Role: It is still an open question whether Vietnam can deliver what America wants.
• EuroCham Survey: A survey of 1,500 European companies in Vietnam revealed that 83% are adopting a "wait and see" approach, while only 25% anticipate a severe impact (roughly 20% bottom line impact).

Sustainability as a Core Business Offering

• Key Argument: Sustainability should go hand-in-hand with profitability. If something is sustainable but not profitable, it is charity, not sustainability.
• Deep C's Approach: Deep C builds its business around sustainability, including energy companies, industrial zone design, and circular economy principles.
• Long-Term Dividends: Sustainability provides long-term dividends by enabling the development of more services that benefit investors and employees.
• Vietnam's Unique Position: Vietnam is working with the United Nations Development Organization to set up a new standard for industrial parks, ensuring that new zones comply with eco-industrial park standards.
• Eco-Industrial Park Standards: New decree ensures that new industrial zones by default need to comply with the standard of an eco-industrial park. Initially, there is a national standard which is slightly less difficult to achieve, and then there is the international standard as per the conditions set out by the United Nations.
• Example: Deep C's farm, which provides organic food to employees earning less than $500 a month and serves as a school for local farmers to learn sustainable agriculture.

ESG and the Vietnamese Context

• Message for Vietnamese Companies: Focus on creating a sustainable business model that is profitable and has longevity.
• ESG as a Practical Approach: ESG should be a practical thing that can be put in motion and bring back something both for your company, for your employees, but also for your customers.
• Deep C's Farm: A 3.4-hectare organic farm that provides food to employees and serves as a school for local farmers. It employs eight local farmers and is profitable.
• Farm Shop: The farm shop is set up in the CEO's office, selling fresh produce daily.

Infrastructure and Green Manufacturing

• Unique Approach: Deep C invests in its own infrastructure, including water distribution, water treatment, and electricity generation.
• Renewable Energy: The company has its own electricity company, a windmill, and solar rooftop farms.
• Innovative Zone Design: Deep C 2 was designed with green zones, novel drainage systems, water retention ponds, and rainwater reuse schemes to prevent flooding.
• Attracting High-Tech Industries: The company's approach attracts industries focused on renewable energy, batteries for EVs, and water filtration membranes.
• Investment per Hectare: The average investment sum per hectare has increased from $1.3 million seven years ago to $10.3 million today, and $14.3 million in the latest zones in Quang Ninh, indicating high-tech industry.

Energy Solutions and Reliability

• Goal: To achieve 30% energy independence by 2030 through solar, wind, and batteries.
• Industrial Battery: Deep C is conducting a feasibility study for the first industrial battery inside an industrial zone in Vietnam.
• Backup Plans: The company has a scheme where non-crucial power lines are cut out during code orange, and a system called red where customers share the burn by cutting out electricity for half a day every 10 days.
• Government's Role: The government needs to ensure energy reliability by ordering enough coal and taking contingency on hydropower.
• Electricity Costs: Electricity in Vietnam is about 30% cheaper than in China.

Talent and the Vietnamese Workforce

• Talent Availability: Vietnam has a hardworking, loyal, and eager workforce.
• Momentum: The country is experiencing a once-in-a-lifetime momentum where people can change their lives and the lives of future generations.
• Employee Retention: Deep C has a low turnover rate of less than 2% by taking employees out of their comfort zone, giving them new experiences, and allowing them to become accountable.
• Accountability: Accountability is still not yet up to the western standards. It is not part of the educational system and it is also not part of the standard Vietnamese management model system.
• Hy Phong's Appeal: People from Hy Phong are starting to consider returning home due to companies like Deep C and the city's improved infrastructure.

Conclusion

The discussion highlights the complex interplay of global trade dynamics, sustainability, and economic development in Vietnam. Deep C's proactive approach to sustainability, infrastructure development, and talent management positions it as a key player in attracting high-tech industries and fostering long-term economic growth in the region. The emphasis on profitability alongside sustainability underscores the importance of creating viable business models that can withstand changing market conditions and contribute to a more resilient and environmentally conscious economy.