Mindset transformation, internal change

The year 2025 marks a pivotal moment, signifying a phase of acceleration and breakthrough within the 5-year socio-economic development plan for 2021-2025, with the goal of achieving strategic objectives and laying a strong foundation for Vietnam's entry into a new era. This is the year when the country will reinforce the essential elements to confidently reach for the future, unlocking opportunities for stronger growth, and marking a significant turning point since the 14th Party Congress. Along this journey, the business community plays an indispensable strategic role, contributing to realizing the goals of the new era.

Minister of Planning and Investment Nguyen Chi Dung and VCCI Vice President Nguyen Quang Vinh present awards to the top 10 sustainable enterprises in the trade-services sector at the Announcing Ceremony of Sustainable Companies in Vietnam 2024

Over the past decade, awareness of sustainable development in the Vietnamese business community has made significant strides. Previously, sustainable development was the domain of large corporations, but it has now spread widely to small and medium-sized enterprises, which account for 98% of the total number of domestic businesses. This reflects a positive shift in both the mindset and actions of companies, as they increasingly prioritize sustainability in their operations.

The Program for Benchmarking and Announcing Sustainable Businesses 2024 (CSI program) in Vietnam, organized by Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Central Economic Commission, the Ministry of Labor, Invalids, and Social Affairs, the Ministry of Natural Resources and Environment, and the Vietnam General Confederation of Labor, has seen remarkable growth. This marks the ninth consecutive year of the program, with the participation rate of domestic enterprises increasing by 62%, while the number of first-time participants rose by 35%, the highest growth in the past three years. These figures reflect significant improvement in the level of attention paid to sustainable development by domestic businesses - a positive signal of the shift in both mindset and actions of Vietnamese enterprises toward the adoption and implementation of sustainable business practices.

Through the CSI program, VCCI has consistently encouraged and supported the Vietnamese business community to apply the Corporate Sustainability Index (CSI) as a key tool for implementing sustainable corporate governance – a key element of Governance (G) in the Environmental, Social and Governance (ESG) framework.

Not only foreign-invested enterprises such as Nestlé, Heineken, AEON, BAT and C.P. have used the CSI to localize the sustainability strategies from their parent companies, but large domestic companies such as Vinamilk, PAN Group, Bao Viet, An Cuong Wood, Traphaco, PNJ, BIDV, SASCO and others have also actively applied the CSI over the years to guide the development and implementation of their own corporate sustainability strategies. For example, in 2023, PAN Group used the CSI as the foundation to create the PANSI Index, a tool to assess the sustainability performance of more than 10 member companies in the group.

These companies, committed to and actively engaged in transforming both their mindset and strategies, have achieved significant successes, not only in business growth but also in enhancing their brand reputation. Most notably, they have strengthened their resilience and adaptability to face unforeseen challenges and market fluctuations, both present and future. This serves as evidence of the correct transformation, helping businesses stand firm in the face of continuous changes in the market and business environment.

Steps into a new era

In recent months, the phrase “streamlining the apparatus” has become one of the most-discussed keywords in domestic public discourse. In the Prime Minister’s final directive for 2024 on promoting economic growth for 2025, he called for the urgent completion and submission to the government of a decree on the experimental mechanism for developing a circular economy by the first quarter of 2025. He also instructed the government to issue a national green criteria framework and propose a list of green economy sectors to be integrated into Vietnam's economic structure, aiming to encourage and accelerate the green transition.

The decisive and vigorous movement of the political system is spreading a wave of positive inspiration, instilling confidence in society regarding the true commitment and effort to innovate, from mindset to action. These reforms not only strengthen the political system but also create favorable conditions for socio-economic development, leading the country into a new era of a green future, much like the legendary steps of Saint Giong - a hero of Vietnamese mythology symbolizing strength, speed, and the journey toward a brighter future.

In the energetic pulse of this powerful transformation, the Vietnamese business community must accelerate the process of change. Companies need to proactively shift their business mindset, focusing on sustainable development, while driving a dual transition - the green transition alongside digital transformation. Building competitive advantages and enhancing long-term competitiveness will be achieved through innovation in how companies approach and implement sustainable development strategies. This includes integrating ESG principles into business models, adopting circular economy practices, and transitioning to low-emission models, among other initiatives.

With this, under the guidance and direction of the Party and the State, the Vietnamese business community will undoubtedly grow stronger, creating "green" strides to move faster and further on the journey towards a new era: an era of national prosperity and inclusive growth.