Vietnam is a high-potential market where FDI enterprises want to operate here for a long time, including Coca-Cola - one of the first foreign companies in Vietnam. For its long-term goals, Coca-Cola always focuses on the supply chain as well as small and medium enterprises (SMEs) with practical actions, aiming to support SMEs in joining the global supply chain, together with Coca-Cola help the economic development in Vietnam.
The companion of Vietnamese enterprises
By identifying itself as a "global brand with local knowledge", Coca-Cola Vietnam has adopted a localization strategy for the supply chain. Currently, up to 91% of Coca- Cola Vietnam’s suppliers are domestic. The company has also created many practical programs to build a strong supply chain network as well as to enhance SMEs’ competitiveness, helping them learn from each other's experience, and increasing their opportunity to join the global supply chain of Coca-Cola.
In 2017, Coca-Cola Vietnam invested in the project "Supporting the sustainable development of SMEs in Vietnam" with 3 main focus areas: innovation, supply chain management, and social responsibility practices. After attending the program and having been assessed as eligible, many businesses have joined the supply chain of Coca-Cola Vietnam. The training process provided access to technology, improved management, and connected businesses so that the enterprises could further develop themselves when the project ended.
Mr. Le Hoang Dan, Sales Manager of Coca-Cola Indochina, met 12 Vietnamese entrepreneurs from SMEs who were invited to visit the Coca-Cola Vietnam factory.
On the other hand, Coca-Cola Vietnam also focuses on the role of women in the SME sector and creates opportunities for women entrepreneurs to participate in the supply chain, improving their competitiveness and social practices. Recently, at the "Positioning Women Entrepreneurs in the Global Supply Chain" forum, Coca-Cola Vietnam, together with the Vietnam Women Entrepreneurs Council and the US-ASEAN Business Council (USABC), signed a Memorandum of Understanding to support women-owned businesses to participate in the supply chain. “Vietnam has a potential growth of USD 58 billion through strengthening the domestic supply chain. Greater global and regional integration will motivate Vietnamese businesses to become more involved in different stages of the global supply chain and become more interdependent,” said Ms. Nguyen Thi Tuyet Minh - Chairwoman of Vietnam Women Entrepreneurs Council.
Signing ceremony for the Memorandum of Understanding to support women-owned businesses in Vietnam participating in the supply chain
Along with the values created for SMEs, Coca-Cola Vietnam also has a significant impact on the economy. According to a recent report by PwC (2016-2018), Coca- Cola Vietnam contributes an amount of VND 3,500 billion average annual GDP, creating more than 80,000 direct and indirect jobs for Vietnamese people. Total procurement expenditure on domestic goods and services of Coca-Cola amounted to more than VND 3,332 billion, increased by 38% in 2015-2017.
Spreading positive values to the community
The leaders of Coca-Cola have stated that the corporate's sustainability strategy focuses on 4 key elements: water, women, quality of life, and waste management. Coca-Cola is committed to making positive changes, creating jobs for the society, forming an effective value chain alliance, and achieving sustainable development in the countries where Coca-Cola operates. Hence, in addition to the economic benefits, SMEs can also participate in social responsibility practices, thereby building the capacity to build a sustainable supply chain together with Coca-Cola.
The EKOCENTERs operated by social enterprises are the model that receives the maximum support in consultation with Coca-Cola Vietnam. The EKOCENTER is Coca-Cola's global sustainable development initiative based on providing 4 key benefits to the local community including clean drinking water, women empowerment, the development of cultural and spiritual life, and environmental protection. 11 EKOCENTERs across the country are currently operating and gradually creating certain positive impact to the community.
For example, Dong Thap EKOCENTER is the first place to apply the social enterprise model operated by women, creating resonant values for local women-owned businesses and female labour. A part of the profits coming from the social enterprises' business activities will be continuously invested in the EKOCENTER's community programs, contributing to bringing sustainable values to the local community.
Ms. Ta Thu Thuy, who is in charge of managing the Dong Thap EKOCENTER, said: “Through the social enterprise model, women in Dong Thap in particular, and other provinces in general will have more opportunities to participate in activities at the EKOCENTER to learn, share experiences, improve their business skills, and have a stable income.”
Ms. Ta Thu Thuy, who is in charge of managing the Dong Thap EKOCENTER, has led a social enterprise to achieve significant success
Another case is the EKOCENTER located in the village of Thanh Toan tile-roofed bridge (Hue), which has also helped many women in Thanh Toan to be more confident in operating businesses and tourism activities. The center is run by Hue Green Social Company, a small and medium-sized enterprise. Equipped with computers, internet, coffee, and drinking water, the center is the place to train on computer literacy, using computers to help women and children access new information and gain computer skills, as well as serve water, coffee, and Hue’s specialties to tourists.
Ms. Dang Thi Duong, the female CEO of Hue Xanh Social Company, ventured into social enterprise at age 60
Assessing the efforts of Coca-Cola Vietnam in the goal of sustainable development, Mr. Nguyen Quang Vinh, General Secretary of VCCI and Vice Chairman of VBCSD, said that when a corporation proactively attaches sustainable development goals to its business strategies and concretized by actions, he believes that the corporate governance, investment attraction, improvement of competitiveness or productivity of such enterprise would surely mark promising advances and set up a solid development foundation.