With the expectation of promoting sustainable growth led by the private economic sector, increasing competitive advantages for businesses and contributing to the implementation of Vietnam’s Green Growth Strategy for the period 2021-2030 and the Decision 167/QD-TTg 2022 of the Prime Minister on the Program to support enterprises of sustainable private business sector, the Department of Enterprise Development, Ministry of Planning and Investment and USAID announced the Vietnam ESG Initiative.
With the theme “Embracing opportunities for green transformation”, Vietnam ESG 2024 Initiative encourages the business community to align sustainable development strategies with business goals to anticipate new opportunities in the context of green transformation and improve competitiveness when participating in the global supply chain. Applying sustainable business models as well as ESG practices will help businesses meet the requirements of the market, partners and investors; access green investment capital sources; enhance image and brand in domestic and international markets. In particular, this is a good opportunity for businesses to turn compliance responsibility into a competitive advantage and ensure sustainable development for the business.
Speaking at the seminar “Building advantages – Sustaining the future with Vietnam ESG 2024 Initiative” taking place on March 21, Ms. Pham Thi Ngoc Thuy, Director of Department IV Office, the expert of private sector development acknowledged that, in the context of global economic integration, Vietnamese businesses are facing many challenges in meeting strict requirements for green and sustainable development from investors, partners, international markets and consumers. The “green transformation” trend is taking place strongly around the world. A successful business not only generates a lot of profits but also must pay attention to the factors E- Environment, S- Society, and G- Corporate Governance. Facing with this trend, Vietnamese businesses, especially those participating in global supply chains or exports, are facing increasing pressure to apply ESG practices to avoid falling behind or being eliminated from the “game”.
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At the discussion, businesses and experts and managers exchanged and discussed domestic and international policy and practice movements related to sustainable development and ESG practices (environmental, social and administration) in business. In particular, discuss what businesses must do to meet new requirements; corporate governance strategies to adapt to the new context; transformation plan and key pillars such as finance, human resources, and technology.
Mr. Bui Quang Duy, Deputy Director of Global Investment, Climate Finance Department, Respons Ability Investments AG Fund (Switzerland) said, in the greening trend, senior leaders understand and are positive about green issues, sustainable green development is very good and will guide where to invest in the long-term strategy. However, investing in green and sustainable transformation requires a large and expensive investment, so it is necessary to have a long-term vision to invest in modern, energy-saving machinery and equipment, etc”. With such a large investment, businesses cannot go alone, they need an ecosystem.
Accordingly, the Fund is currently tending to invest in green transformation and sustainable exports. Therefore, the Fund will support businesses with technical support packages and long-term investment aid, sit down, discuss directly with businesses and come up with a suitable technical package for each business. Sustainable green development and green finance will support businesses in effective transformation, which is the resonance of businesses, financial systems, and banks in investing and cooperating to bring green capital into practice”, Mr. Bui Quang Duy emphasized.