The implementation of ESG (Environmental-Social-Governance) standards is to play a key part in Việt Nam’s objective of net-zero carbon emissions by 2050 and the country’s sustainable socio-economic development, heard participants at a seminar, themed: We walk the talk, on Thursday in Hà Nội.
Research data indicate that not only are Vietnamese businesses becoming increasingly aware of ESG as a means to attract foreign investment, but consumers are starting to make purchase decisions based on the brand’s commitment to ESG. However, integrating and incorporating ESG standards into brand development still faces numerous difficulties and challenges.
Vice chairman of the Việt Nam Chamber of Commerce and Industry (VCCI) Nguyễn Quang Vinh said 80 per cent of businesses based in Việt Nam, according to a survey by PwC and the Việt Nam Institute of Directors (VIOD) in 2022, said they are committed to the country’s ESG implementation or soon to build their own.
He said an increasing number of foreign investors have been making the implementation of ESG a key priority in investing in Việt Nam in recent years.
According to Bloomberg Intelligence, estimated ESG assets are to reach US$50 trillion by 2025, or a third of all managed assets globally, making the standards one of the most important economic performance indicators in the global economy.
Vinh said businesses can use the Corporate Sustainability Index, established by VCCI in 2016, to review their ESG performance to identify weaknesses and potential.
Speaking at the seminar, Deputy General Director of Vietnam News Agency (VNA) Đoàn Thị Tuyết Nhung said more and more Vietnamese businesses have been taking a proactive stance in reducing their carbon footprint, waste, and engaging in socially responsible business practices to meet Việt Nam’s ESG standards.
She said since the introduction of ESG in 2003, the standards have greatly contributed to the increased awareness and popularity of social responsibility among businesses to society.
She said that once successfully implemented, ESG will play an important part in helping businesses identify key issues and realise their full potential.
During the event, participants discussed difficulties and challenges in the implementation of ESG in Việt Nam, as well as international experiences and recommendations to help the government and businesses adopt the standards.
The seminar, organised by Việt Nam News – the country’s only English-language daily newspaper under the Vietnam News Agency (VNA) – offered an opportunity for government departments, organisations, and businesses to discuss ESG policies and share practical knowledge, as well as to connect in realising Việt Nam’s sustainable development goals.
Participants in the seminar include leaders and representatives from ministries, committees, sectors, international organisations, economic experts, and business executives from both within and outside the country.