In an international market increasingly demanding lower carbon emissions, higher energy efficiency, and adherence to ESG (environmental, social, and governance) standards, "green standards" are becoming essential for entering global supply chains. The building materials industry, in particular, connects many links, from raw materials, energy, and production to logistics, contractors, and investors. A product's competitiveness is inherently tied to the capacity of its entire ecosystem.

Nguyen Thi Thanh Tam, Head of Sustainable Development at Prime Group (a member of SCG), noted that many of the company's international customers have expanded their assessment criteria to include carbon emissions, raw material origin, energy efficiency, and ESG standards. Prime Group's products are currently available in 24 countries; as the company enters more markets, it faces increasing requirements related to environmental impact, safety, traceability, and governance.

According to Tam, with Vietnam's commitment to achieving net-zero emissions by 2050, these requirements will become even more crucial for participating in high-standard supply chains. For small and medium-sized enterprises (SMEs), raising these standards requires a clear, specific roadmap that aligns with each business's resources.

To enhance competitiveness, SCG has integrated green transformation into its long-term strategy through a comprehensive green growth orientation and the ESG 4 Plus framework. "For SCG, green transformation is not just a market demand but is becoming an important direction in the Group's long-term development process," Tam shared.

Accordingly, Prime Group, with 14 member companies and over 3,600 employees, translates this direction into action through ISO 9001, 14001, 45001, and 50001 systems. Prime Group aims to reduce emission intensity by over 30% by 2030 compared to 2020, use 30% clean and recycled energy, and recycle or reuse 100% of wastewater in production. This is achieved through heat recovery, reusing broken bricks and coal ash as raw materials, applying IoT (internet of things), and increasing the use of biomass and solar power.

Nguyen Thi Thanh Tam, Head of Sustainable Development at Prime Group, presents at the "connecting Vietnamese enterprises in the global supply chain" seminar in Hanoi on 8/10. *Photo: SCG Vietnam*

Leveraging its own green transformation experience, SCG extends its approach to partners across the supply chain through the Go Together initiative. "For SCG, Go Together is how a leading enterprise raises standards while simultaneously encouraging partners, especially small and medium-sized enterprises, to improve their capabilities to meet those standards," Tam explained. Many improvements by the leading company directly affect partners, from raw material quality and logistics to traceability data. Therefore, Go Together focuses on three action groups: sharing standards on quality, safety, environment, and market; sharing SCG and Prime Group's experience on energy, materials, waste, and data; and collaborating to improve issues impacting supplier quality, costs, and productivity.

Tam noted that green solutions at Prime Group also help reduce consumption, improve efficiency, and ensure better quality control. She acknowledged that ESG still presents many challenges regarding costs, technology, and human resources, so the roadmap needs to be linked to business efficiency.

"For businesses in the chain, the starting point can be very specific issues," Tam said. She elaborated that issues could include stabilizing raw material quality, reducing energy consumption, minimizing waste, reusing water or materials, or standardizing environmental safety. SCG collaborates to help partners identify necessary requirements, current gaps, and priority areas. When improvements both meet standards and deliver productivity and cost efficiency, raising standards creates a more sustainable business foundation for SMEs, while also providing the leading enterprise with a more stable supply.

The solar power system on the rooftops of Prime Group's factories. *Photo: SCG Vietnam*

"For SCG, Vietnam is a long-term strategic market, and an ecosystem that the Group wishes to develop together with local businesses," Tam affirmed. SCG is committed to continuing investment in solutions, technology, and products that support green transformation, while also sharing experience and accompanying businesses within the ecosystem. SCG views this as a way for a foreign direct investment (FDI) company to contribute to Vietnam's sustainable development and enhance the long-term competitiveness of Vietnamese businesses.

Hoang Anh