Firms need policies for sustainable development after pandemic

Tuesday, May 05, 2020 10:49

Petrovietnam Camau Fertiliser Joint Stock Company was honoured as a sustainable business last year. — Photo

Viet Nam needs policies to promote the sustainable development of businesses after the COVID-19 pandemic ends, according to the Viet Nam Chamber of Commerce and Industry (VCCI).

The VCCI's Chairman Vu Tien Loc said sustainable development was vital for businesses in the long term, adding that this was also a “lifebuoy” to help businesses cope with and recover from any situation.

Nguyen Quang Vinh, deputy chairman of the Viet Nam Business Council for Sustainable Development (VBCSD) under the VCCI, said that the pandemic had caused considerable declines in consumption and exports and caused a shortage of raw materials, creating difficulties for firms.

It’s time for firms to develop appropriate strategies to address pressing issues in the short term in tandem with their sustainable development in the medium and long terms, Vinh said.

According to a VBCSD survey, 31 per cent of member companies said they would focus more on the domestic market and reduce dependence on foreign markets, while 81 per cent said that they would strengthen sectoral ties to prevent value chain disruptions if a similar crisis hit again.

The firms also said they would promote the development of e-commerce, online business and digital transformation to ease the reliance on traditional business models. However, the first thing to do was cut costs, enhance savings and prioritise investment for pressing needs.

Vinh urged firms to rebuild their development strategies and restructuring plans towards sustainable development.

“Goals for sustainable development should be integrated in the corporate management strategy,” he said.

As the global supply chain changes, firms must improve their capacity, diversity and consolidate their resistance, Vinh said, adding that businesses also needed to develop risk management scenarios.

Regular updates about the Government’s long-term economic development strategies and the global economic development trends were also important to building an appropriate development strategies, he said.

VBCSD also urged the Government to develop a legal framework to aid the sustainable development of firms.

Vinh said Viet Nam should build and implement the project about improving sustainable corporate management capacity in 2021-25 and the national programme about supporting businesses in implementing circular business models in 2021-30.

Nguyen Van Than, chairman of the Viet Nam Association of Small and Medium – Sized Enterprises (SMEs), said SMEs needed policies which could not only tackle pressing issues but also aid long-term development. — VNS

Comments (0)