In response to evolving market, consumer, and investor demands, implementing green, sustainable business models and particularly embracing environment, social, governance (ESG) practices, enables businesses to effectively address market requirements, attract investors, gain a competitive advantage, and unlock long-term development potential. This will contribute to sustainable and inclusive growth in Vietnam, spearheaded by the private sector.

This was the view expressed by a representative from USAID Vietnam during an information sharing session entitled “ESG Initiative Vietnam 2024: Embracing Green Transformation”, organized by the Agency for Enterprise Development (AED) at the Ministry of Planning and Investment, in cooperation with the United States Agency for International Development (USAID) through the Private Sector Competitiveness Enhancement Project in Vietnam (IPSC).

Speaking at the event, Ms. Trinh Thi Huong, Deputy Director of the AED, noted that the ESG Initiative Vietnam 2024 encourages businesses to align their sustainable development strategies with their business objectives to seize emerging opportunities amid the green transition. This presents an excellent opportunity for businesses to turn compliance responsibilities into competitive advantages and generate new value for their enterprises.

The ESG Initiative 2023 received over 120 applications, resulting in the selection of ten standout businesses for their exceptional ESG initiatives. Among them, three businesses were chosen and provided with technical support to successfully implement ESG practices, Ms. Huong said.

“We anticipate that the ESG Initiative 2024 will cooperate with and contribute to the business community, aligning sustainable development strategies with business goals to seize new opportunities in the rapidly evolving green transition landscape,” she added. “Together, we aim to boost competitiveness through green transition opportunities and deeper integration into domestic and global supply chains. Implementing sustainable business models and practices will meet market, partner, and investor demands, providing access to green capital and enhancing international brand reputation. This presents an excellent opportunity for businesses to turn compliance responsibilities into competitive advantages and create new value for their enterprises.”

Participants at the session were updated on the latest information regarding participation requirements, benefits, selection criteria, and business support to be provided by the ESG Initiative Vietnam 2024 program. They were also given insights from experts on green transition trends and practical experiences in joining the ESG Initiative Vietnam journey, shared by representatives from HHP GLOBAL, one of the three winning enterprises of the ESG Initiative Vietnam 2023.

Ms. Phan Thao My, representing USAID IPSC, shared details about the ESG Initiative Vietnam 2024 program. She mentioned that, this year, three selected enterprises will receive technical support valued at up to VND2 billion ($81,000). Additionally, they will undergo training and receive advice to enhance their ESG-integrated business models, enabling them to seize opportunities in green transformation. They will also benefit from expanded sustainable business networks and recognition for their commitment to sustainable practices, which will enhance their credibility and attract attention from customers, partners, and stakeholders.

Businesses wishing to participate must meet specific criteria: they must be Vietnamese economic entities, including private enterprises, cooperatives, and individual businesses, with fewer than 500 full-time employees and no ongoing legal disputes. Additionally, they should operate within the priority sectors outlined by the USAID IPSC project, which include agriculture, forestry, fisheries, manufacturing and processing, information technology, logistics, tourism, and support products. Moreover, they should demonstrate an effective business model capable of generating profits, and express intentions and commitments to implement ESG practices within their operations, either through transformation or expansion of sustainable business models.

Businesses will be assessed and selected for support based on various criteria, including their business model and operations, social and environmental impact, innovation and scalability, as well as the level of commitment and feasibility of their ESG implementation plans, green transformation, and sustainable business practices.