10 enterprises honoured at the final round of the “Vietnam ESG Initiative 2024”

The organising board honoured 10 outstanding enterprises which joined the final round of the 2024 Vietnam ESG Initiative, including Ecoka JSC, Secoin JSC, and SHINEC JSC.

In addition, the Promising Achievement Award went to Emic Hospitality Co. Ltd to recognise their efforts on sustainability in the tourism industry.

The winners will receive a technical assistance package worth up to VND2 billion from the Agency of Enterprise Development and USAID to pilot, deploy, or replicate their environmental, social, and governance (ESG) initiatives.

“Adopting ESG practices is no longer optional, it is essential for businesses to thrive in today’s global economy. Because consumers demand that the company they buy from practice ESG standards, more and more leading multinational corporations demand that their suppliers implement ESG practices, that is why USAID and MPI collaborate to encourage and support private enterprises to adopt such practices,” Aler Grubbs, USAID mission director said. “Today we are also introducing new tools for businesses. These include a legal mapping handbook, which consolidates ESG-related regulations into one comprehensive, easy-to-understand resource.”

To assist Vietnamese enterprises in the implementation of the National Programme on Support for Private Enterprises in Sustainable Business from 2022 through 2025, the Agency for Enterprise Development (AED), with support from USAID, has launched the Vietnam ESG Initiative.

The initiative encourages the business community to align sustainable development strategies with business objectives to capture new opportunities in green transformation in the global supply chain. By adopting sustainable business models and ESG practices, businesses can meet market, partner, and investor requirements, access green investment capital, and enhance their image and brand.

This presents an opportunity for businesses to turn compliance responsibilities into sustainable development.

Deputy Minister of Planning and Investment Tran Quoc Phuong

Deputy Minister of Planning and Investment Tran Quoc Phuong said, “The trend of sustainable development highlights the need for Vietnamese enterprises to innovate to catch up and remain competitive. If they do not they will miss chances to deeply engage in global value chains.”

“This initiative has been successfully implemented, attracting the participation of the Vietnamese business community with more than 300 businesses registering in two implementation phases in 2023 and 2024. Many excellent ideas and typical ESG stories have been supported and developed, creating a ripple effect, encouraging many businesses to actively practice ESG, towards a more sustainable economy,” he said. “Whether they advance to the final round or not, all businesses participating in the Vietnam ESG Initiative are pioneers in sustainable business. The proactive spirit of entrepreneurs is very valuable and is a strong source of inspiration for the business community."

Launched in January 2024, the 2024 Vietnam ESG Initiative has garnered significant attention from the business community.

Between June and September 2024, 10 selected enterprises received intensive training and one-on-one coaching from the USAID Improving Private Sector Competitiveness project to develop and finalise ESG implementation and green transformation plans.

By the end of September 2024, the enterprises presented their plans to an evaluation committee, which assessed the proposals based on criteria such as creativity, feasibility, and replicability.

At the award ceremony, the AED and USAID introduced tools to support ESG practices in businesses.

Such practices include, the Sustainable Business Assessment Toolkit, which provides businesses with fundamental information about their current level of ESG implementation; the ESG Legal Mapping Handbook 2024, which offers basic information for businesses operating in Vietnam on the current legal and regulatory landscape related to the environment, society, and governance; and the ESG Baseline Assessment Report in 2024, which evaluates the level of ESG awareness and practices of Vietnamese businesses. The report identifies opportunities in each ESG aspect and recommends replicating good practices while encouraging improvements in areas of weakness to move toward sustainable business practices.