MOU Signing to cooperate in Sustainable Forest Development, towards Water Replenishment and Carbon Offset Between The Forestry Department of the Ministry of Agriculture and Rural Development and Suntory PepsiCo Vietnam

Hanoi, July 11, 2024 – The Ministry of Agriculture and Rural Development (MARD), in partnership with Suntory PepsiCo Vietnam, organized a Public-Private Partnership Conference in the Multi-Use Value of Forest Ecosystems. The event also marked the launch of the National Forest Passport Initiative.

Attendees included Minister of Agriculture and Rural Development Le Minh Hoan, leaders of Suntory PepsiCo Vietnam, representatives from various authorities, international organizations, NGOs, national parks, and nature reserves.

Promoting Public-Private Partnership in Developing the Multi-Use Value of Forest Ecosystems

Vietnam has over 14.86 million hectares of forests, rich and diverse in ecosystem values. Over the years, the forestry sector has promoted the policy of "socializing forestry" through various mechanisms and policies. Specifically, the Vietnamese Forestry Development Strategy for the period 2021 – 2030, with a vision to 2050, clearly states: "...there should be appropriate mechanisms and policies to support, facilitate, and encourage organizations and individuals from all economic sectors to participate in forestry investment and development."

Today's signing of the Memorandum of Understanding between the Forestry Department and Suntory PepsiCo Vietnam aims to realize these policies. Suntory PepsiCo Vietnam becomes one of the first companies to partner with the forestry sector in sustainable forest development, towards water replenishment and carbon offset.

Key areas of cooperation:

  • Forest Planting: planting native and large timber trees, aim to regenerate water resources, increase carbon absorption, and protect the environment,  while enhance livelihood for local people. The program is expected to plant and enrich almost 250 hectares of forest in watershed and protective forest areas across the country.
  • Designing and Implementing the “Forestry Semester” Program: Developing forest experience program to educate about water resources, biodiversity, and fostering a love for forests and water among students and national park visitors.
  • Piloting the “National Forest Passport” Initiative: This initiative encourages people and tourists to explore forests, fostering awareness of forest protection and development to achieve the goal of developing the multi-use value of forests.

Additionally, both parties will cooperate in areas such as improving mechanisms, policies, as well as communications to raise awareness about nature conservation, biodiversity, the role of forest ecosystems, and water protection.

Speaking at the signing ceremony, Mr. Jahanzeb Khan, General Director and CEO of Suntory PepsiCo Vietnam, shared: "Throughout 30 years in Vietnam, Suntory PepsiCo, has established partnership with key stakeholders, in striving to address environmental and social challenges through strategic partnerships and innovative models, bringing positive impacts to the community. Through strategic public-private partnerships with the Ministry of Agriculture and Rural Development, we not only level up the impact of our ongoing reforestation programs but also pursuing multiple objectives, such as restoring and replenishing more than 100% of the water used in production at all our plants by 2050, contributing to carbon offset and improving livelihoods for local."

Mr. Jahanzeb Khan, General Director and CEO of Suntory PepsiCo Vietnam

The Director of the Forestry Department, Tran Quang Bao, stated: “The overarching goal of the forestry sector is to become an economic-technical sector; to establish, manage, protect, develop, and use forests sustainably,... ensuring broad and equal participation of all economic sectors in forestry activities,... Therefore, the roles of both the public and private sectors are extremely important. We acknowledge the contributions of Suntory PepsiCo Vietnam to sustainable development programs in Vietnam. This cooperation marks a significant step forward between the two parties in developing sustainable forests and leveraging the multi-use value of forest ecosystems.”

Mr. Tran Quang Bao, Director of the Forestry Department, MARD

Implementing the “National Forest Passport” Initiative

This is the first time this initiative is being implemented in Vietnam, with the goal of creating a mechanism to promote ecotourism development in national parks and nature reserves. It aims to motivate tourists to experience and explore the values of forest ecosystems. Gradually, it will form a sustainable financial mechanism and create momentum for national parks and nature reserves with tourism infrastructure to attract visitors, while also drawing community attention to the sustainable values of ecosystems.

In the initial phase, the National Park Passport will be rolled out in 34 national parks which have special-use forest system that have tourism activities. Domestic and international tourists can obtain the passport in either paper or electronic form. Passport holders will also have the opportunity to receive incentives and rewards when visiting national parks and meeting the required conditions.

Suntory PepsiCo Vietnam’s Sustainable Development Programs

Guided by the core value of “Growing for Good,” Suntory PepsiCo Vietnam’s sustainable development strategy and goals align with the Vietnamese Government’s sustainable development commitments. Over three decades of operation in Vietnam, the company has continuously strived to realize its commitments through practical and specific programs and initiatives:

  • The Forest Planting Program towards water replenishment and carbon offset: In Vietnam, the scarcity of fresh water is becoming increasingly concerning. Watershed forests play a crucial role in providing water sources, maintaining biodiversity, and adapting to climate change. Since 2021, Suntory PepsiCo Vietnam has initiated a forest planting program to conserve and restore groundwater in watershed and protection forests across five provinces severely affected by climate change, including Quang Nam, Quang Ngai, Binh Thuan, Dak Lak, and Dak Nong. To date, the program has planted over 191,000 trees, covering more than 159 hectares of watershed forests.
  • Mizuiku - I Love Clean Water: This education program aims to raise primary pupils' awareness of water conservation and protection, initiated in 2015. By 2023, the program has established strategic partnership with the Ministry of Education & Training, and the program's materials is approved as the mandatory Teaching material in primary curriculum, aiming to educate 3.7 million students nationwide about the importance of water and water conservation by 2025.
  • Sustainable Packaging Initiative: To minimize the use of virgin plastic in production, Suntory PepsiCo Vietnam continuously develops sustainable packaging initiatives. Products are introduced with packaging made from 100% recycled plastic, such as the lightest packaging globally for Oolong Tea+ products. In 2023, the initiative reduced 5,300 tons of virgin plastic, equivalent to over 23,000 tons of CO2 emissions.
  • Sustainable Development in Production: As of 2024, all manufactory plants of Suntory PepsiCo Vietnam have transitioned from fossil fuels to renewable energy throughout their operations. The most modern factory in the Asia-Pacific region, located in Long An Province, is expected to operate on renewable energy sources including solar and biomass fuel./.

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