Ha Thu Thanh, chairwoman of the Vietnam Institute of Directors

How do you perceive the tangible benefits of green management for Vietnam’s financial sector?

Green management plays a crucial role in promoting the sustainable development of Vietnam's financial sector. First, it enhances organisational resilience to environmental and social risks, such as climate change, environmental pollution, and social conflicts, thus protecting assets and profits.

Second, green management enables businesses to cut costs, increase productivity, and enhance operational efficiency. For example, implementing energy, water, and raw material-saving solutions can lead to significant cost savings.

Third, green management helps build a sustainable foundation for long-term development, through mitigating negative impacts on the environment and society. It also helps businesses enhance their credibility and brand reputation. Being recognised as environmentally and socially responsible entities can attract more customers and partners, ultimately increasing profits. Ultimately, it creates new investment opportunities for financial organisations.

What are the challenges in promoting green finance and green management in Vietnam?

Green finance requires substantial capital. However, green capital in Vietnam is currently limited, mainly coming from international financial organisations and individual investors. The legal framework for green finance and green management in Vietnam is also not yet comprehensive and unified. This complicates the implementation of green financial and management solutions for businesses and organisations.

In addition, awareness of green finance and management within the community, especially among businesses, is still limited. This leads to businesses not being fully prepared to participate in the green finance market and implement green management solutions.

Another objective challenge is that green finance and green management projects often involve higher risks compared to regular projects. This makes investors and businesses hesitant to enter the green finance market and adopt green management solutions.

Could you share some international experiences that can be applied in Vietnam to promote green finance and green management?

It is essential to establish a suitable legal framework and policies. Successful countries in this field have well-defined and transparent legal frameworks and policies that support the development of green finance and green management markets.

Key elements to be specified include definitions of green finance and green management, applicable standards and regulations, incentives and support for businesses, and strengthening awareness through communication and dissemination.

Community awareness, especially among businesses, is another vital factor. Communication and dissemination efforts should focus on specific and practical content, including the benefits of green finance and green management and investment opportunities and available support in this area.

International collaboration should be enhanced. It is necessary to share experiences, knowledge, and resources in the field of green finance and green management; collaborate on research and development, and green investments. Successful countries tend to actively engage in international cooperation activities.

What factors inspired the creation of this year’s first-ever Board of the Year award?

Against the backdrop of global economic instability and rapid change, businesses need to have an adaptive, flexible strategy for sustainable development. To achieve this, a company needs an effective flagship, specifically a Board of Directors that embodies pioneering values to navigate and guide sustainable development for a prosperous future society.

In Vietnam, where corporate governance is still in its early stages, some companies excel in corporate governance compared to others in the market. We have recognised this and believe it's truly worthwhile to have an award that acknowledges and honours boards that have shown excellence, commitment, leadership, and dedication to sustainable development, with a strategic vision and effective operations, playing a key role in shaping the success and sustainable development of that business.

The goal of this award is not only to honour exemplary boards but also to inspire others, provide practical models of the best governance practices, and ultimately promote the overall corporate governance landscape of the country.