Enterprises should integrate ESG criteria in their development process. (Photo: aitcv.ac.vn)

Promoting green growth is an urgent trend, a driving force of economic growth and a crucial factor in enhancing national competitiveness admist international integration, said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.

She affirmed that major enterprises should integrate environment, society, and governance (ESG) criteria in their development process.

This is mandatory for businesses if they want to make strides.On the journey towards green growth, ESG criteria are the standard for measuring and evaluating an enterprise’s sustainable development. Many of Vietnam's major trade and investment partners have had strict requirements on this issue.

Meanwhile, ESG is drawing widespread attention thanks to the Government's efforts in promoting ESG-related practices and investors' increasing demand for sustainable investment.

Since 2022, 80% of companies surveyed has planned to implement ESG in next two to four years, contributing to disclosing ESG data and reports more common.The application of ESG criteria opens up opportunities for market expansion, and intensification of cooperation of businesses.

However, many firms find it difficult to achieve growth goals while still ensuring environmental protection, social responsibility and good governance because of increasing costs.Vietnamese enterprises are paying more attention to environmental issues but their understanding of environmental regulations is still modest.

A survey by the Vietnam Chamber of Commerce and Industry (VCCI) showed that only 31.8% of domestic private enterprises said they clearly understand environmental regulations while 68% said they have been negatively affected by climate change. Moreover, investment in ESG implementation is still inadequate.

Deputy Minister Ngoc said that the ministry has submitted the system of green economic sectors to the Government and developed a mechanism to support businesses with good ESG practices.Besides, the ministry is focusing on building a set of national green classification criteria which will be an important legal framework to implement green growth goals.

The criteria will be the basis for ministries, agencies and localities to select investment projects, and allocate domestic and international resources, particularly green credit sources.