Sustainability commitment is a key driver for growth and investment, panelists told an ASEAN++ business forum in HCM City on Friday.

Ng Jiak See, Deloitte Asia Pacific Financial Advisory Leader, said due to its strategic geographical location, ease of doing business, tax incentives and free trade agreements, ASEAN is one of the most attractive destinations for investors seeking to expand their global footprint.

But it needs to take immediate action to maintain this attractiveness, she said.

“For ASEAN, in acting now, the region can generate a cycle of positive outcomes. Sustainable financing will support improvements to existing infrastructure, which in turn unlocks new sustainable assets, which in turn furthers transition into a low carbon economy, which in turn increases investor trust in sustainable investments, which in turn enhances attractiveness to investors, which in turn allows sustainable infrastructure to gain access to more funding. And the cycle goes round.”

Viet Nam is one of four ASEAN countries among the faster growing economies in the world and one of three to get large FDI inflows, she said.

Viet Nam is also a top choice when multinational companies consider relocating a growing proportion of their manufacturing from China to ensure supply chain resilience, she added.

Cao Thi Ngoc Dung, president of the HCM City Association for Women Executives and Enterprises, said disruption of value chains, supply chains and trade connections are major issues that need to be promptly addressed.

Connectivity and co-operation activities in ASEAN play a vital role in promoting trade exchanges, strengthening regional supply chains and contributing to the economic recovery of the bloc post-COVID, she said.

Sustainable development is an inevitable trend for businesses and crucial to international trade, and consumers in developed markets, especially younger generations, prefer products from businesses that pursue sustainable development, she said.

Sustainable businesses even get priority from investors.

Sustainable development requires close links within the business community and there needs to be a thorough understanding of sustainable development in the supply chain, she added.

Phan Thi Thang, deputy chairwoman of the HCM City People’s Committee, said circular and green economies had become inevitable for meeting the requirements of sustainable development.

The country’s economic hub, HCM City, is now focusing on efforts to promote a sustainable green economy, she said.

In line with the inevitable trend of sustainable development, the city targets developing a sustainable green economy by adopting science and technology and innovations and increasing labour productivity, she said.

The business forum was aimed at attracting foreign investment to ASEAN countries, creating opportunities for foreign trade and introducing the diverse and vivid cultures of the various member nations.

The event was organised by the Department of Industry and Trade and HCM City Association for Women Executives and Entrepreneurs. — VNS