Opportunities abound for businesses to adopt sustainable practices

The event, co-organised by the US Agency for International Development, and Vietnam’s Agency for Enterprise Development under the Ministry of Planning and Investment, was part of the USAID-funded Improving Private Sector Competitiveness project.

During the conference, participants explored the overall requirements of sustainable transitions at both domestic and international levels and the direct impact of these transitions on Vietnamese businesses.

The event also shed light on the benefits available to companies through the upcoming “Vietnam ESG Initiative 2025” set to launch in December.

This marks the third consecutive year of the Vietnam ESG Initiative, which supports the implementation of Vietnam’s Green Growth Strategy for 2021-2030 and sustainable private sector development. The programme aims to help Vietnamese businesses seize new opportunities amid the green transition and enhance their competitiveness in the global supply chain.

Trinh Thi Huong, deputy director of the Agency for Enterprise Development, said, "In an increasingly shifting global economy, integrating environmental, social, and governance criteria (ESG) is not only a trend but a crucial requirement for businesses to ensure sustainable development. Corporate governance within ESG serves as the guiding principle for a company’s operations and decision-making processes while laying the foundation for its environmental and social activities to be carried out effectively. The Vietnam ESG Initiative 2025 aims to further encourage and support businesses in implementing ESG practices and fostering their sustainable growth."

Trinh Thi Huong, deputy director of the Agency for Enterprise Development under the Ministry of Planning and Investment. Photo: USAID

The Vietnam ESG Initiative 2025 will provide pilot funding and technical support worth up to VND2 billion ($80,000) to the top three enterprises with outstanding sustainable business models. Additionally, the ten finalists will receive in-depth one-on-one training and consultation on the latest sustainable business and green transition trends. This includes ESG implementation planning and setting up sustainability reporting in line with international standards.

Moreover, businesses participating in the initiative will gain access to domestic and international partners who support sustainable business ecosystems, allowing them to expand partnerships, enhance their knowledge and experience in applying ESG, and explore state support programmes, investment funds, and credit institutions catering to sustainable enterprises in Vietnam.

Businesses interested in joining the Vietnam ESG Initiatives 2025 programme are required to submit their applications by November 30. Photo: IPSC

In 2024, the Vietnam ESG Initiative attracted nearly 150 applications from private enterprises, cooperatives, and household businesses.

Tran Thi Thu Phuong, vice chairwoman and CEO of HHP GLOBAL, one of the winners of the Vietnam ESG Initiatives 2023, shared her company’s development journey.

“As a paper manufacturer, we aimed for a green building standard for our new factory between 2012 and 2015, focusing on sustainable development. In March 2023, we joined the Vietnam ESG Initiatives because the ESG pillars aligned with our goals. After being selected among the top 10 companies, we underwent intensive training from June to August 2023, gaining valuable insights into ESG practices, helping us to develop a sustainable growth strategy, moving beyond ad-hoc ESG efforts,” Huong said.

10 enterprises honoured at final round of 'Vietnam ESG Initiative 2024' On October 3, the Agency for Enterprise Development under the Ministry of Planning and Investment and the United States Agency for International Development (USAID) organised the Vietnam ESG Initiative 2024 Award Ceremony.

ESG activity needs clearer roadmap Although Vietnam has not yet systematically introduced mandatory requirements for businesses to have environmental, social, and governance reports, domestic enterprises may be eliminated from the game if they do not meet common standards.

Support for SMEs vital for ESG adoption S&P Global is committed to providing the essential intelligence and solutions needed to power SMEs’ journey towards a sustainable future.