Honoring Sustainability: The Vietnam ESG Initiative 2024
On October 3, 2024, Hà Nội hosted a significant event—the Vietnam ESG Initiative 2024 Award Ceremony—organized by the Agency for Enterprise Development (AED) and the United States Agency for International Development (USAID). This gathering celebrated the commitment of Vietnamese enterprises to Environmental, Social, and Governance (ESG) practices while introducing essential tools designed to enhance sustainability in the business sector.
Celebrating the Winners
This year, three outstanding companies—ECOKA Joint Stock Company, SECOIN Joint Stock Company, and SHINEC Joint Stock Company—were distinguished as the top winners of the Vietnam ESG Initiative 2024. Their innovative approaches and dedication to sustainable practices set an exemplary standard for other enterprises. Additionally, EMIC HOSPITALITY Co. Ltd. was awarded the Promising Achievement Award, reflecting their strides in promoting sustainability within the tourism industry.
Financial Support for Effective ESG Practices
As part of their recognition, the winning enterprises are set to receive a substantial technical support package valued at up to VNĐ2 billion (approximately US$80,000) from AED and USAID. This funding is specifically aimed at assisting these companies in piloting, deploying, or replicating effective ESG initiatives, thereby further advancing their sustainable practices.
Introduction of Tools for ESG Implementation
During the awards ceremony, AED and USAID presented a series of tools tailored to bolster ESG implementations in businesses. The Sustainable Business Assessment Toolkit was highlighted as a key resource. This valuable tool aligns with the ESG framework and is designed to provide companies with insights into their current ESG implementation levels. By utilizing this toolkit, businesses can develop more robust strategies that meet investor expectations, market demands, and partner requirements.
Navigating the Complexities of Global Markets
The event underscored the growing necessity for sustainability and responsible governance within Việt Nam’s business landscape. As the world moves towards deeper economic integration, Vietnamese enterprises find themselves facing dual pressures. While they strive to access global markets, they must also adhere to stringent environmental and sustainability standards set by investors, international markets, and consumers. This trend signals a clear shift toward green transformation, where businesses must adapt to not only focus on profitability but also factor in their ESG responsibilities.
The Role of the Vietnam ESG Initiative
Launched by AED with support from USAID through the USAID Improving Private Sector Competitiveness project, the Vietnam ESG Initiative aims to enhance the competitiveness of Vietnamese businesses. This initiative plays a pivotal role in implementing the “National Program on Support for Private Enterprises in Sustainable Business from 2022 through 2025,” also known as Program 167. This program mirrors the government’s commitment to fostering a robust private sector capable of driving sustainable economic growth.
Benefits of Embracing Sustainable Practices
The initiative encourages business leaders to align their sustainable development strategies with broader company objectives, allowing them to seize new opportunities within the green transformation narrative. By adopting sustainable business models and ESG practices, these enterprises can not only meet market demands but also gain access to green investment capital. This shift not only enhances their brand image domestically but also positions them favorably in international markets.
Economic Impact of the Private Sector
At the award ceremony, Deputy Minister of Planning and Investment Trần Quốc Phương elaborated on the significance of the private sector within Vietnam’s economy. With over 930,000 active enterprises, comprising 98% small and medium-sized businesses, alongside approximately 29,000 cooperatives and over five million business households, the private sector plays a crucial role in driving Vietnam’s GDP growth. It accounts for approximately 40-45% of the national GDP and provides jobs for about 85% of the workforce, making it an integral part of Vietnam’s economic framework.
A Push for Collaborative Entrepreneurship
The emphasis on the ESG Initiative illustrates a clear path forward for enterprises looking to enhance their competitive edge while fostering sustainable practices. By taking part in such initiatives, businesses not only contribute to a greener economy but also transform their compliance responsibilities into strong competitive advantages within both local and global markets.