The Agency for Enterprise Development (AED) and the United States Agency for International Development (USAID) conducted the Vietnam ESG Initiative 2024 Award Ceremony and Introduction of Instruments for Environmental, Social and Governance (ESG) Practices in Enterprises on October 3 in Hà Nội.

The 2024 Vietnam ESG Initiative has officially honoured three enterprises including ECOKA Joint Stock Company, SECOIN Joint Stock Company and SHINEC Joint Stock Company as the three winners.

This year, the Evaluation Committee has also given the Promising Achievement Award to EMIC HOSPITALITY Co. Ltd. to recognise their efforts in promoting sustainability in the tourism industry.

At the awards ceremony, AED and USAID also introduced tools to support ESG practices for businesses.

Speaking at the event, Aler Grubbs, Country Director of USAID Vietnam said that the 'Vietnam ESG Initiative 2024' recognised 10 enterprises for their commitment to sustainable practices, with three companies achieving top honours.

As part of their recognition, the winning enterprises will receive a technical support package valued at up to VNĐ2 billion (US$80,000) from AED and USAID. This funding is intended to help these companies pilot, deploy or replicate effective ESG initiatives.

During the ceremony, representatives from AED also introduced several tools aimed at enhancing ESG practices among businesses. One notable resource is the Sustainable Business Assessment Toolkit, which aligns with the ESG framework. This toolkit provides companies with essential insights into their current level of ESG implementation, enabling them to develop more robust strategies that meet the expectations of investors, markets and partners.

This initiative underscores the growing importance of sustainability and responsible governance in Việt Nam's business landscape, paving the way for a greener and more socially responsible future.

In the current era of deep international economic integration, Vietnamese enterprises have the chance to access global markets. However, they also face significant challenges, particularly in meeting the stringent requirements for green and sustainable development set by investors, partners, international markets and consumers. There is a strong global trend towards a green transformation.

A successful enterprise is no longer solely focused on generating profits; it must also consider ESG factors.

The Vietnam ESG Initiative was launched by AED with support from USAID through the USAID Improving Private Sector Competitiveness project. It aims to assist Vietnamese enterprises in enhancing their competitiveness and helping to implement the 'National Program on Support for Private Enterprises in Sustainable Business from 2022 through 2025', also known as Program 167, as outlined in the Prime Minister's Decision 167/QD-TTg dated February 8, 2022.

The initiative encourages the business community to align sustainable development strategies with business objectives to capture new opportunities in green transformation and improve competitiveness in the global supply chain. By adopting sustainable business models and ESG practices, businesses can meet market, partner and investor requirements, access green investment capital and enhance their image and brand in both domestic and international markets.

This presents a great opportunity for businesses to turn compliance responsibilities into a competitive advantage and ensure sustainable development.

Also at the event, Deputy Minister of Planning and Investment Trần Quốc Phương highlighted the crucial role of the private sector in the Vietnamese economic landscape. With over 930,000 active enterprises—98 per cent of which are small and medium-sized—alongside around 29,000 cooperatives and more than five million business households, this sector contributes significantly to the nation’s GDP, placing Việt Nam among the top 35 economies globally.

Deputy Minister Phương emphasised that the private sector accounts for 40-45 per cent of the country’s GDP and employs about 85 per cent of the workforce, playing a vital role in economic growth, job creation, and social security. — VNS