Experts tackle nation’s sustainable reporting

In June, the Association of Chartered Certified Accountants (ACCA) will organise an event with the participation of over 30 banks in the market to discuss the subject of how to refinance sustainable reporting among banks. They will also share the requirements that banks require the companies when they ask for sustainable financing or refinancing.

Listed companies are being helped to improve their capacity to access green finance, Photo: Shutterstock

To Quoc Hung, country director of ACCA Vietnam, said, “We organised workshops with the involvement of the experts and the local banks. They sit down together to share the vision that you have, what they expect from sustainable reporting, and what they expect from regulators in helping them in this area.”

For listed companies, this is the 12th year the ACCA organised those sustainable reporting awards.

“Early on, we used the international criteria to score the awards are great the awards, but later, we made adjustments to suitable for Vietnamese corporations. That’s what we have done so far to help listed companies to improve their capacity to access the green finance,” Hung said.

In addition, the ACCA is partnering with various parts and various governments in ASEAN to support that capability. Two years ago, it launched climate finance in collaboration with the CFA Institute. The ACCA also translated for International Financial Reporting Standards in December, deemed a significant step towards understanding international financial data across different systems when it comes to supporting the language of raising campaigns and working on them.

Vice chairwoman of the European Chamber of Commerce in Vietnam Claudia Anselmi, who is also general director of Hung Yen Textile and Dyeing said, “There are three major challenges that businesses face when making a giant green transition: a lack of knowledge of the subject, high initial investment costs, and the ability to access green finance.”

The green credit sector in Vietnam, growing at an average rate of 23 per cent in 2017-2022, demonstrates a higher growth trajectory compared to the national average. This surge is driven by businesses increasingly complying with environmental, social, and governance (ESG) standards, boosting the demand for green credit. Government initiatives and regulations further bolster this sector.

With the commitment to achieve net-zero emissions by 2050 and reduce methane emissions by 2030, the demand for Vietnam’s investment in projects that minimise environmental impacts will grow, Anselmi added. In addition to public resources, Vietnam mobilised resources from the private sector and international organisations through the formation and development of green financial markets.

To access green finance, board of directors must be determined to reach sustainable targets through methodical and detailed action plans.

Agro-food company The PAN Group signed an MoU with Standard Chartered Vietnam to collaborate on the implementation of ESG financial solutions and services at COP28 in December 2023. Nguyen Thi Tra My, CEO of The PAN Group, told VIR that it is not easy to access green finance.

“Green capital will just come when the companies show their good performance. One of the most important factors is the determination and consistency of the board of directors with sustainable targets,” My said. “For example, not all our member companies are aware of the importance of practising ESG, as well as green and low-emission productions, because they do not export goods. However, the board tried to convince and spread the sustainable spirit until they all understand.”

The most difficult thing for banks to approve the disbursement of green credit capital is measuring the impact of action programmes of businesses, My added.

“The government also has yet to have clear announcements about the impact of businesses’ sustainable activities. Thus, the important thing is that corporations and businesses themselves must have a way to explain to banks and investors what they are doing,” My said.

ACCA and vocational colleges to enhance business training The Association of Chartered Certified Accountants (ACCA) signed MoUs with Hanoi Vocational College of Technolgy, and Hanoi College of Commerce and Tourism on May 29.

AI changing teaching and learning During a panel discussion themed "Innovative Teaching for Accounting and Finance: Technology and Beyond" held by the Association of Chartered Certified Accountants (ACCA) on May 29, experts from various universities in the region discussed and recommended ways of using AI in teaching and studying.

Gains for the workforce clear through partnership The Association of Chartered Certified Accountants (ACCA) has signed an MoU to provide training and improve VIB’s human resource capacity. Ren Varma, head of mainland Southeast Asia for the ACCA, talked to VIR’s Linh Le about the dynamic and evolving finance and accounting landscape in Southeast Asia, while also addressing challenges such as the need for skilled professionals and compliance with international standards.

Crucial facets of talent can help companies adapt The Association of Chartered Certified Accountants (ACCA) emphasises the role and responsibility of auditors in ensuring professional quality and creating value for businesses. ACCA chief executive Helen Brand covered the company’s role in line with sustainable development goals with VIR’s Vy Vy.

Region is integrating at speed with outlook on sustainability Environmental and sustainability issues have gained significant importance in a wide range of industries and organisations globally. Pulkit Abrol, regional director for Asia-Pacific at the Association of Chartered Certified Accountants (ACCA), told VIR’s Nguyen Thu his vision for sustainable development and how to drive positive change.

Deals to assist with auditing standards The Association of Chartered Certified Accountants is supporting workers in accessing strong job opportunities, while promoting sustainable development of accounting and auditing human resources at the same time.

Brown to green switch accelerates The greening of the economy is being spurred on by a wide range of stakeholders, taking in energy transition, business changes, and government policy.