Fourteen years ago, Phuc Sinh Group made a pivotal decision to invest in environmental, social, and governance (ESG) initiatives instead of purchasing land for VND5 billion (approximately $196,810). Chairman Phan Minh Thong reflects on this choice, stating that although the initial outcome was a complete loss, the decision ultimately proved to be the right one.
“In the beginning, many predicted my downfall,” Thong recalled. “A woman in the industry told me I would be bankrupt in six months.”
Thong’s journey began in 2001 with just VND60 million ($2,361) after relocating from Hai Phong to Ho Chi Minh City. Starting as an exporter of pepper and spices, Thong faced significant challenges. However, within five years, Phuc Sinh had ascended to become the leading pepper exporter in Vietnam, surpassing established competitors from around the globe.
“At that time, our revenue was about $120-130 million annually, but today, we export up to $320 million,” Thong noted, emphasizing that the company never aimed for number one; it was a byproduct of relentless effort and adaptability.
Reflecting on the opportunity cost of not purchasing land, Thong mused, “If I had spent that money on real estate, I could have made millions. But my choice to focus on ESG was an investment in the future.” He explained that he worked tirelessly, often exceeding 20 hours a day, driven by a belief in the value of building trust with customers and suppliers.
Phuc Sinh’s breakthrough came after securing a significant loan from a major Vietnamese bank—a feat considered impossible a decade ago when they were able to obtain VND70 billion ($2.75 million) in unsecured loans.
Thong emphasized the importance of self-belief and understanding the true essence of business: relationships. “Many in the industry viewed domestic sales as the goal, or considered it a triumph to be acquired by a foreign company. I had a different vision,” he explained.
Traveling extensively, Thong recognized Europe as a leader in sustainable development, fueling his ambition to trade globally. His commitment to sustainable practices was solidified when a European client urged Phuc Sinh to adopt ESG practices in 2007. By 2015, the client sought certification for half their products, prompting Phuc Sinh to invest significantly in ESG initiatives.
Despite facing setbacks in the early years, Thong remained resolute. “While we lost money initially, the experiences gained became integral to our company culture.” In 2014, Phuc Sinh proudly became the first Vietnamese company to receive the Rainforest Alliance (RFA) sustainable development certification.
Thong’s passion for agriculture, particularly coffee, inspired him to establish a processing plant in Son La province. “I discovered flavoring-filled coffee at a supermarket, which ignited my vision for a quality coffee product,” he said.
Despite logistical challenges, including lengthy travel from Saigon to Son La, Thong embraced the opportunity. Local government officials, recognizing the potential of Phuc Sinh, eagerly supported his endeavors.
“They were excited to meet me after years of seeking investors,” he recalled. Their enthusiasm motivated Thong to draft investment agreements during his visit, and he remained undeterred by the obstacles.
Ultimately, Thong’s commitment to ESG practices has not only propelled Phuc Sinh Group to success but also contributed significantly to the local economy, creating thousands of jobs and fostering sustainable development in Vietnam. As he reflects on his journey, Thong underscores the transformative power of resilience and vision in the face of adversity.
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