Coconut processing for sustainable development in Vietnam Coconut is abundant in the Mekong Delta of Vietnam. The coconut tree is a common crop for Vietnamese farmers. Many coconut waste products remain.The project partners want to establish an advanced coconut processing company in Vietnam where they focus on producing four high quality products from these coconut waste products by integrated production lines. The products are:1. charcoal of a higher quality with regard to the production process (much more environmentally friendly) as to the end product. This charcoal is mainly for the local market.2. active coal. This will be used for air filtering systems and will mainly be exported to Europe.3. High quality farmer-ready growing substrates for the horticultural sector. This is mainly for the local market and they will work together with consultants of the horticulture to make best suitable products.4. Coco chips of a high quality that can be used in air filtering systems. This will be in the first place sold to the Netherlands and Belgium.The production facility will be realised at the Ben Tre province.The project will be realised on the existing business property of the local partner AVW Vietnam. Corporate Social Responsibility (CSR)The joint venture will set up a CSR policy in the first Result. This is based on the principles of providing good livelihood of the employees, serving as a reliable partner for its suppliers, clients and investors, provide interesting and challenging work in safe and responsible setting and to remunerate its management and middle level employees at competitive rates and its basic level employees at living wages, non-discrimination, freedom of labour, employees are free of joining any trade unions and corruption will not be tolerated.The both partners core business is setting up environmentally friendly businesses.Impact•	Employment and working conditionsFor the basic-level workers the joint venture will pay living wages. The possibilities for employee participation will be explored. The joint venture is considering a shareholders position for four persons of the management later on in the project. Fringe benefits include meals, health insurance, employee participation, training on the job career opportunities, personal hygiene, restrooms, worship and leisure.The training programme offered will be highly interested for the workers to improve their skills and experience, making them attractive for employment elsewhere. Knowledge and training are a key for the success of the project according to the partners.•	Innovation/Transfer of knowledgeAlthough charcoal is already locally produced, this project adjust the following:- The quality level of the peat substrates is a big improvement comparing to the currently available peat production.- There are existing charcoal producers in Vietnam. In this project the partners will introduce technologies that are environmentally friendly and much more efficient. This will lead to zero emission charcoal and reduce the environmental impact of producing charcoal.- In this project the activated charcoal will be produced from the zero emission charcoal and this will be produced in the same process as the production of the charcoal, which safes a lot of energy use. The produced active charcoal in this project will be used for air filtration systems in the Netherlands and Belgium. This is a new market for this product produced in Vietnam.The business opportunity of the PSI project is that with the knowledge and experience in the sector of environmental engineering and coco-peat substrates production, the partners can set up an integrated processing operation. The charcoal is part of this integrated process. The demand of charcoal is very big in Vietnam and with this project the partners can cover a small market share.•	Chain effectsImpact on local suppliersThe raw materials are the coconut waste. This will be about 10,000,000 coconut husks by the end of the project. The joint venture will give farmers a new market for their waste products. There will be 100 contracts with farmers.Impact on local customers or consumersThe local consumers will get excess to locally produced charcoal of a high quality. Furthermore, the horticulture will get access to locally produced growing substrates.•	Impact on the sectorThe project will invite other companies to demonstrate the used technologies. The project will be open to collaborate with NGOs and government representative organisations and universities.The project will introduce ISO 9001.•	EnvironmentThe technologies are highly favourable with regard to the energy content of the charcoal, but also the production processes, with zero emission of harmful substances to the environment.•	Position of womenThe project will endeavour ample job career opportunities for women.•	Impact on food safetyIndirectly, the project contributes to food security by supplying growing media for the horticulture. To establish a production company with an integrated approach of producing high quality growing substrates, quality coco chips, charcoal and active coal supplying the local market with the substrates and the charcoal and mainly exporting the chips and the