From December 29, 2023 to March 31, 2024, private enterprises, cooperatives, and household businesses with intentions and commitments to implement ESG practices, undergo transformation, or expand sustainable business models can register to participate.
Themed “Seizing Green Transformation Opportunity,” the 2024 scheme encourages businesses to align sustainable development strategies with their business goals to seize new opportunities in the context of green transformation.
The Vietnam ESG Initiative is among efforts to implement the National Strategy on Green Growth for 2021-2030 and prime minister’s Decision No.167/QD-TTg issued in 2022.
“Adopting sustainable business models as well as ESG practices will enable businesses to meet requirements of the market, partners and investors, increase access to green capital sources, enhance their images and brands in domestic and international markets. Particularly, this is a valuable opportunity for them to turn compliance responsibilities into competitive advantages and benefit from added values,” said Trinh Thi Huong, deputy general director of the Agency for Enterprise Development.
The 2023 Vietnam ESG Initiative attracted nearly 150 applications from private enterprises, cooperatives, and household businesses.
The 10 finalists were then provided with training and intensive one-on-one coaching to update new trends in sustainable business and green transformation, develop ESG action plans, and create sustainable development reports in line with international standards.
The top 3 winners including HHP GLOBAL JSC, Vinasamex., JSC, and Vietnam Food JSC have received technical support with a total value of up to VND2 billion ($81,276) to pilot, implement or scale up their sustainable business initiatives.
In addition, businesses that participate in the initiative received support in approaching local and international partners in sustainable business ecosystems, expanding partnerships, learning and improving their knowledge and experience in applying ESG practices and sustainable business models, as well as accessing sustainable business support programmes of the state, investment funds, and credit institutions in Vietnam.
Tran Thi Thu Phuong, vice chairperson cum CEO, HHP GLOBAL JSC
Adopting sustainable business models and ESG practices is a challenging journey but will definitely sharpen competitive advantages in the long run. The technical assistance from the Ministry of Planning and Investment and USAID through the Improving Private Sector Competitiveness Project to HHP GLOBAL, one of the top 3 winners of the 2023 Vietnam ESG Initiative, has driven us to further implement our ESG initiatives.
Thanks to the valuable support, not only can we address technical challenges but also seize new opportunities, especially taking advantage of new knowledge and management methods, expert consultation, and contacts to undertake such initiatives across our enterprise.
HHP GLOBAL has made forceful investment decisions and will become a pioneer in paper manufacturing in Vietnam as its built factory meets the requirements for Leadership in Energy and Environmental Design standards, certified by the US Green Building Council.
At the same time, the firm is implementing the 3S iFACTORY Smart Factory project and its wastewater treatment system ensures a recycling rate of up to 70 per cent together with the adoption of a solar power system.
We also focus on personnel training, promoting employees’ awareness of energy saving, fostering shared responsibility for protecting the environment. This includes implementing ESG principles across the entire organisation, inspiring and instilling pride in all staff members as they contribute to HHP GLOBAL’s Green Transformation journey.
Nguyen Van An, chief strategist officer, Vietnam Food JSC
For small businesses that have just started to adopt ESG-based business models, some additional costs will surely arise in addition to their regular operating expenses. However, if we can balance financial resources and consider long-term outcomes that ESG practices can generate, we will see that it is completely worth adopting such models.
By participating in the 2023 Vietnam ESG Initiative, our company can equip itself with useful knowledge and gain greater confidence in our green transformation journey. Through training programmes, we have developed more suitable ESG directions and action plans.
Specifically, Vietnam Food (VNF) aims to make an annual ESG report. Additionally, we also operate more efficiently and sustainably in line with such targets, better meeting international market demands for a greener and more sustainable direction. As a result, VNF has built up a better corporate image and reputation with an increasing number of approached partners and customers.
The initiative serves as a stepping stone for participating businesses like us to understand the nature of ESG adoption and partly help us carry out typical activities. After the programme, VNF continues to maintain our proposed initiatives and further implements additional ESG activities.
When we consistently apply such principles through the business operations and enhance awareness among all employees, the adoption of these measures becomes pervasive, contributing to the sustainable development of the enterprise at all times and in all places.
Nguyen Thi Huyen, CEO, Vinasamex
As one of top three winners of the 2023 Vietnam ESG Initiative, Vinasamex has received a lot of technical support from the Agency for Enterprise Development, Ministry of Planning and Investment and USAID through the ISPC project.
The ESG reports that we prepare with support from IPSC serve as valuable resources for us to collaborate with impact investors and work with our customers and partners. They enhance our credibility and provide a competitive advantage for the company.
Notably in 2024, Vinasamex plans to increase its production scale through expanding plantation areas and constructing additional factories in raw material areas. We seek to draw in more impact investors to join us in a business model that creates positive social impacts.
Thanks to the valuable support that we have received from the USAID IPSC Project, we are ready to disseminate and replicate our solutions, initiatives, and experience within the business community for the sustainable development of Vietnam.
For example, we have established AVANTA social enterprise, where we are willing to advise businesses on sustainable business models, provide training on market access approaches, and facilitate international trade promotion. Besides this, we offer internships to students and post-graduates to work at the business where they can conduct research, write papers and develop dissertations on sustainable business models.
The Research Institute for Innovation, National Economics University have also invited us to collaborate with them to consult social impact businesses about creating social impact through the institute’s network.
Private enterprises, cooperatives, and household businesses with intentions and commitments to implement ESG practices, undergo transformation, or expand sustainable business models can register to participate in the 2024 Vietnam ESG Initiative – Seizing Green Transformation Opportunities before 5pm on March 31. Detailed information about the eligibility requirements can be accessed on the website: esg.business.gov.vn/esg-vietnam or facebook.com/usaid.ipsc
Duc Hanh
