The 2024 Vietnam Environmental, Social, and Governance (ESG) Initiative
Following the success of the 2023 Vietnam Environmental, Social, and Governance (ESG) Initiative, the Agency for Enterprise Development under the Ministry of Planning and Investment and the United States Agency for International Development (USAID) are thrilled to announce the launch of the 2024 Vietnam ESG Initiative. This collaborative effort aims to promote sustainable business practices across various sectors in Vietnam.
Key Dates and Participation
From December 29, 2023, to March 31, 2024, private enterprises, cooperatives, and household businesses committed to implementing ESG practices can register to participate. This year’s theme, “Seizing Green Transformation Opportunity,” focuses on aligning sustainable development strategies with overarching business goals, enabling participants to harness emerging opportunities within the green transformation landscape.
Alignment with National Strategy
The Vietnam ESG Initiative complements the National Strategy on Green Growth for 2021-2030, as well as Prime Minister’s Decision No.167/QD-TTg issued in 2022. This long-term vision strives for a greener economy, aiming to minimize environmental impacts while maximizing social benefits.
Advantages of Participation
Trinh Thi Huong, Deputy General Director of the Agency for Enterprise Development, remarked: “Adopting sustainable business models as well as ESG practices will enable businesses to meet the requirements of the market, partners, and investors.” She emphasized that these initiatives not only improve access to green capital but also enhance brand image on both domestic and international fronts.
The 2023 initiative was met with tremendous enthusiasm, receiving nearly 150 applications. The ten finalists beneficially engaged in training sessions and intensive one-on-one coaching, focusing on modern sustainable business trends and developing effective ESG action plans in line with international standards.
Winners and Their Impact
The top three winners of the 2023 Vietnam ESG Initiative—HHP GLOBAL JSC, Vinasamex JSC, and Vietnam Food JSC—each received technical support valued at up to VND 2 billion ($81,276). This support was crucial for them to pilot, implement, or scale up their sustainable business initiatives.
In addition, all participating businesses were given assistance in forming connections with local and international sustainable business ecosystems, expanding partnerships, and enhancing their knowledge and experience relative to ESG practices.
Voices from the Winners
Tran Thi Thu Phuong, Vice Chairperson and CEO of HHP GLOBAL JSC, shared insights on the importance of ESG adoption: “Adopting sustainable business models and ESG practices is a challenging journey but will definitely sharpen competitive advantages in the long run.” She highlighted major investments aimed at becoming a pioneer in paper manufacturing within Vietnam, with initiatives including a solar power system and a wastewater treatment system with high recycling rates.
Nguyen Van An, Chief Strategist Officer at Vietnam Food JSC, discussed the initial costs associated with adopting ESG-based business models. Despite these financial implications, he reassured that the long-term benefits significantly outweigh the initial investments, providing an excellent return in terms of efficiency and sustainability.
Nguyen Thi Huyen, CEO of Vinasamex, praised the technical support received during the initiative as vastly beneficial for enhancing credibility and facilitating collaboration with impact investors. She mentioned ongoing projects that focus on creating positive social impacts and expressed an eagerness to share knowledge and experiences with the wider business community.
How to Get Involved
Private enterprises, cooperatives, and household businesses interested in engaging with the 2024 Vietnam ESG Initiative can register until 5 PM on March 31, 2024. For detailed eligibility requirements and further information, businesses can visit esg.business.gov.vn/esg-vietnam or follow the updates on USAID’s Facebook page.
The initiative offers an exciting pathway for businesses of all sizes to embrace sustainable practices that not only meet market demands but also contribute positively to the social fabric of Vietnam.