Vietnam led ASEAN in terms of investment impact with an Orange Index score of 50, according to the 2024 Vietnam Orange Index Report which was released on October 24.

The Orange Index, developed by the Singapore-based Impact Investment Exchange (IIX) investment consulting firm, focuses on evaluating three pillars of a country’s development: community impact, gender and climate.

It is grounded in data collected by IIX from hundreds of sustainable micro, small and medium enterprises (MSME) and uses a scoring system from 1 to 100, with 100 representing the highest level of achievement.

The Vietnam Orange Index Report was produced as a result of four years that IIX spent tracking the evolution of Vietnam’s impact investment ecosystem.

With the score of 50, Vietnam surpassed the global average of 41.

The report was released at the Vietnam Impact Investment Forum 2024 which was held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Global Affairs Canada (GAC) in Hanoi on October 24.

Impact investment is a concept that has started to gain traction in Vietnam. It involves investing in projects aimed at generating positive social or environmental effects. This innovative approach seeks to enhance the contributions of the private sector to sustainable development.

According to a report from the United Nations Development Program (UNDP) and the Ministry of Planning and Investment, there are approximately 22,000 social impact enterprises in Vietnam. Of these, 89% are classified as micro- or small-sized enterprises, and 72% have annual revenues below VND5 billion ($196,600).