The Rise of ESG in Vietnam: A Spotlight on Phenikaa Group
In recent years, the importance of Environmental, Social, and Governance (ESG) criteria has surged, reshaping how businesses operate on a global scale. This trend is particularly visible in Vietnam, where companies are recognizing the competitive edge that sustainable practices can provide. Among these forward-thinking enterprises, the Phenikaa Group stands out, having recently been honored as one of the Top 100 Vietnam Green ESG Enterprises (ESG100) for 2025.
An Esteemed Recognition
The ESG100 award is a collaborative effort by the Finance-Investment Newspaper, under the Ministry of Finance, and Viet Research, aimed at identifying and celebrating companies that contribute to sustainable growth. The recognition underscores the commitment of Phenikaa Group and its subsidiary, Vicostone JSC, to integrate eco-friendly practices in their operations. With this accolade, they join a distinguished cohort of businesses across various sectors striving for a greener future.
A Blueprint for Sustainability
At the core of Phenikaa’s approach is a robust environmental management system designed to minimize emissions. The group stands as a leader in industrial manufacturing, utilizing advanced production technologies to reduce its environmental footprint. Noteworthy initiatives include the full recycling of wastewater and the extensive use of solar energy within their operations. This commitment not only enhances sustainability but also sets a benchmark against which other companies can measure their own efforts.
Emphasizing Local Resources
One of the critical strategies for Phenikaa is its green supply chain approach. By localizing over 95% of its input materials, the company significantly reduces its reliance on imports, thus enhancing operational efficiency. This focus on sourcing locally not only contributes to sustainable practices but also bolsters the local economy, fostering job creation and skill development within communities.
Innovations in Green Technology
Phenikaa Group is also making significant strides in innovation, focusing on the development of green technologies. Their portfolio includes eco-friendly advanced materials and autonomous robots, which are tailored for use in various settings such as factories, hospitals, schools, and throughout smart cities. These technologies are not just innovative; they contribute significantly to sustainable lifestyles and align well with Vietnam’s national goal of achieving net zero carbon emissions by 2050.
Social Responsibility at the Core
While environmental sustainability is crucial, Phenikaa also emphasizes the ‘S’ in ESG—social responsibility. The group has made substantial investments in high-impact sectors like education and healthcare. Their initiatives include establishing a comprehensive education system and creating a high-standard healthcare ecosystem. These efforts aim not only to spread knowledge but also to improve community well-being, promoting inclusive, sustainable growth throughout the country.
Governance: The Backbone of Sustainability
Equally important in Phenikaa’s sustainability strategy is a strong governance framework. The company adheres to a transparent and effective management system, ensuring compliance with all legal regulations. This foundational pillar not only fosters trust among stakeholders but also reinforces the company’s commitment to social and environmental governance.
By integrating these pivotal elements—environmental management, local sourcing, innovation, social responsibility, and good governance—Phenikaa Group showcases a comprehensive model of sustainable business practices. As more Vietnamese companies follow suit, the landscape of corporate responsibility is poised for transformative change, elevating Vietnam’s standing in the global push for sustainability.