More than 20,000 scholarships have been granted through VIR’s Swing for the Kids scholarship fund

These are leading enterprises in Vietnam, whose brands not only have great domestic coverage, but are aspiring to reach out to the region and the world. The companies are the sponsors of many activities for the development of the country, society and the business community.

Swing for the Kids 2023, a charity golf tournament organised by VIR for the 16th time, taking place on October 21, is expected to attract numerous businessmen and businesses to participate. The companies involved are also names that appear in many other community activities. The difficult business environment does not hinder their plans for the community.

Previously, while both businesses and workers agreed to “tighten their belts” to overcome the difficult period due to the pandemic, there were still hundreds of billions of VND contributed by businesses to funds from improvement through central and local organisations.

Good corporate social responsibility (CSR) projects not only have positive social significance, but also have great meaning within the businesses themselves. Deloitte research strongly suggests that workers feel more connected and when working for organisations that promote sustainable development.

Some businesses and agencies have set aside a day for all employees to spend time thinking or contributing a practical action to the community. They also encourage each employee to directly participate in volunteer activities, or contribute one to two days of salary to community funds.

At PetroVietnam Ca Mau Fertilizer JSC, CSR activities are expressed through many initiatives, with $16.8 million contributed to social responsibility activities, community, and for employees. A total of 1,485 solidarity houses, 56 school projects, 13 medical projects, 22 bridges, several rural transportation projects, and many clean water and environmental sanitation initiatives have been supported by the company.

At a recent press conference announcing the Swing for the Kids 2023 golf tournament, Le Trong Minh, editor-in-chief of Vietnam Investment Review said, “Businesses cannot grow if they live in an undeveloped society. Businesses also cannot thrive in a destructive environment. That is the reason why businesses need to promote sustainable development strategies, including implementing community responsibility in many ways, on par with the company’s business strategy. Today’s world operates according to the rule that businesses that help society develop, society will help that business develop.”

However, community activities are only one part of CSR. Green growth and the circular economy are becoming a global trend to reduce greenhouse emissions, aiming for carbon neutrality and sustainable development. The green - sustainable development trend has been forming new “rules of the game” in trade and investment. By accepting and adapting to these new rules, businesses can survive and develop.

At SABECO, over the past many years, business has implemented environmental, social and governance initiatives. Sabeco’s factories are installed with solar power systems. The company is also working on integrating energy storage systems at factories to manage supply disruptions. The beverage company also strives to save water resources and use biomass fuel from plants.

This October, 27 EU member countries will begin piloting the carbon border adjustment mechanism. In the first three years of implementing this mechanism, from October 1, the EU only requires businesses to prepare declarations detailing emissions related to products. This is a way for businesses to gradually become familiar with the regulations.

The implementation ESG standards is considered urgent, for foreign investment attraction. Do Thi Thu Ha, head of Sustainable Development Consulting of KPMG Vietnam, said that many investors in the energy sector come to KPMG to share that they cannot commit to investing in Vietnam without ensuring at least 50 per cent of energy consumed in operations is green energy. In the real estate sector, more and more investors are requesting to locate in buildings with green building certificates.

ESG is becoming an important factor in the development picture of businesses, reflecting that businesses have taken the necessary steps to ensure sustainable development. Capital flows into ESG funds are considered an inevitable trend, with many countries around the world focus on promoting criteria to improve environmental quality and social balance. Vietnam is no exception to these urgent trends.