Corporate governance foundation for sustainable development goals

This perspective was shared by experts and business leaders at the 2024 Autumn Women Entrepreneurs Forum, organised by the Vietnam Association of Women Entrepreneurs (VAWE) in collaboration with the Prime Minister's Advisory Board for Private Economic Development (Board IV). The event, held in Hanoi on October 18, centred around the theme "Sustainable Development - Perspective from Strategy and Corporate Governance."

Five key sustainable development trends were identified for businesses to seize, including the shift to green practices, smart business models, embracing AI, enhancing customer engagement, and building business resilience.

Darryl James Dong, chief economist of IFC in Vietnam, emphasised the urgency of sustainable practices, stating, "The current context presents a simple choice: go green or go home. Sustainable and environmental practices are now unstoppable. The train has already left the station, and it’s not coming back. Companies must adapt by embracing circularity, reusing materials, and recycling resources.”

Dong also discussed the importance of smart business strategies. “A smart business adapts to market changes and consumer demand. If your business is built smart, you will lead the market and maintain an advantage in an increasingly competitive environment," he said.

In terms of customer engagement, Dong added, "If you can create a friction-free, hyper-personalised, and memorable relationship with your clients, you will succeed every time. The final piece of the puzzle is business resilience. If the customer is king, then business resilience is queen, and both rule the market together."

Experts at the forum highlighted that in a rapidly changing global environment, challenges can be transformed into opportunities that drive businesses towards sustainable development, with a strong focus on ESG (environment, society, governance). The governance component, in particular, was emphasised as crucial.

“To gain distinct competitive advantages, businesses must proactively adjust their strategies to align with sustainable development goals, building on a foundation of strong corporate governance,” said Dao Ngoc Dung, vice chairwoman of VAWE.

Dung also acknowledged the unique challenges faced by female-led and female-owned businesses, which are typically small and medium-sized enterprises (SMEs). "These businesses may face difficulties in mobilising resources for sustainable development. However, by implementing an ESG-aligned sustainable development strategy rooted in good corporate governance, such goals can be achieved through resource connectivity," she said.

The forum also celebrated the 10^th anniversary of VAWE, marking a decade of commitment and contributions to the community of female entrepreneurs and the broader business community in Vietnam.

Ha Thu Thanh, vice president and head of external affairs at VAWE, and president of VIOD, pointed out that market competition is even fiercer for women-led and women-owned businesses, which tend to be SMEs. “While these enterprises may struggle with resource mobilisation, adopting an ESG-based strategy on a corporate governance platform is achievable through the connection of resources. VAWE serves as a key resource to create social impact and generate new value,” Thanh said.

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